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

Gentlemen,

We are transmitting herewith Form 10-QSB for the quarter ended March 31, 2002
for Diversified Realty, Inc.


                               Diversified Realty, Inc.



                               s/D. Mellinger
                                 D. Mellinger
                                 Accountant





                	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         March 31, 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 March 31, 2003
$.10 Par Value Common Stock                     5,367,654 Shares


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


<PAGE>


                        	DIVERSIFIED REALTY, INC.


                                 	INDEX

                             	MARCH 31, 2003

                                                             	Page Number
PART I

Condensed Financial Statements:

  Balance Sheet
    March 31, 2003                                                  2

  Statements of Income -
    Three Months Ended March 31, 2003 and 2002                      3

  Statements of Cash Flows -
    Three Months Ended March 31, 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

  Certifications                                                 9-11

                                     1

<PAGE>


                        	DIVERSIFIED REALTY, INC.

                             	BALANCE SHEET

                          	AS OF MARCH 31, 2003


     ASSETS

Current Assets

  Cash                                                        $  2,254,481

  Deferred Tax Asset                                                 2,892

  Prepaid Income Taxes                                              25,928

  Due From Parent Company                                          113,532

   Total Current Assets                                          2,396,833

Property, Plant and Equipment, Net                                 184,693

            TOTAL ASSETS                                      $  2,581,526



    LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

  Accounts Payable and Accrued Expenses                       $     15,272

             Total Current Liabilities                              15,272

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                                                100,479
  Other Comprehensive Income					     1,714
  Cost of Common Stock in Treasury                                 (2,847)

             Total Stockholders' Equity                          2,566,254

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                    $  2,581,526


                      	See Notes to Financial Statements

                                      2
<PAGE>


                        	DIVERSIFIED REALTY, INC.

                         	STATEMENTS OF INCOME

                              For The Three Months
                                     Ended
                                   March 31,
                                2003        2002

Operating Revenues           $ 21,729    $ 25,486

Operating Expenses             13,297      13,378

                                8,432      12,108

Income Tax Expense            (1,875)     (9,750)

    Net Income               $  6,557    $ 21,858

Other Comprehensive Income(Loss) Net of Income Taxes

    Unrealized Holding Gains       36         --

Comprehensive Income	      $ 6,593    $ 21,858




                     	See Notes to Financial Statements


                                     3
<PAGE>


                      	DIVERSIFIED REALTY, INC.

                      	STATEMENTS OF CASH FLOWS

                                                    For The Three Months Ended
                                                             March 31,
                                                         2003           2002

     CASH FLOWS FROM OPERATING ACTIVITIES

Net Cash Provided By Operating
 Activities                                          $   16,701   $   12,246



     CASH FLOWS FROM FINANCING ACTIVITIES

Cash Purchases of Treasury Stock                           (22)         (11)

Net Cash Advances
   From (To) Parent Company                                 600        (600)


     Net Cash Provided (Used) By
       Financing Activities                                578         (611)

NET INCREASE (DECREASE) IN CASH                          17,279       11,635

CASH - BEGINNING OF PERIOD                            2,237,202    2,225,553

CASH - END OF PERIOD                                 $2,254,481   $2,237,188


                      	See Notes to Financial Statements

                                     4
<PAGE>


                          DIVERSIFIED REALTY, INC.

                      	NOTES TO FINANCIAL STATEMENTS

                              	MARCH 31, 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 March 31, 2003 and
the results of the Company's operations for the three months ended
and cash flows for the three months ended March 31, 2003 and 2002.

The results of operations for the three months ended
March 31, 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

                            MARCH 31, 2003

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


                                        COMPARISON OF

                           THREE MONTHS
                               ENDED
                             MARCH 31,
                          2003 AND 2002
<TABLE>
<S>                    <C>         <C>

Revenues	   $ (3,756)     (14.7%)

Expenses	        (81)      (.61%)

Net Income	    (15,300)     (69.9%)

</TABLE>


   Revenues decreased $3,756 (14.7%) in the first three months of 2003 as
compared with the first three months of 2002 due primarily to decreases in
interest and dividend revenues ($3,107, 41.8%), and a slight decrease in
other income ($649, 3.59%).  Interest revenues decreased primarily due to
a decrease in interest rates on investments. Operating expenses decreased
$81(.61%) in the first three months of 2003 as compared with the first
three months of 2002.  The provision for income tax expense increased
$11,625, (119.2%) in the first quarter of 2003 as compared with the first
quarter of 2002 due primarily to an adjustment in reporting non-taxable
interest.




                                   6


<PAGE>

                       	DIVERSIFIED REALTY, INC.

                              	PART II

                         	OTHER INFORMATION


                           	MARCH 31, 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: May 14, 2003                     s/Angela D. Semenza
                                               Angela D. Semenza,
					        Assistant
						Secretary-Treasurer

Date: May 14, 2003                     s/D. Mellinger
                                               D. Mellinger,
                                               Accountant


                                   8
<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, In. on Form
10-QSB for the period ending March 31, 2003 as filed with the Securites
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: May 14, 2003                s/Paul J. McCann
                                          Paul J. McCann,
                                          Representative


                              	  9


                               	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 circomstances
    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
    inforamtion included in quarterly annual 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 Eschange 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;
<PAGE>

5.  Diversified Realty, Inc.'s other certifying officers and I have disclosed,
    based on our most recent evaluation, to Diverdified 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: May 14, 2003	            s/Paul J. McCann
                                           Paul J. McCann



                                  11

<PAGE>