UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    Form 10-Q

                   QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


                       For Quarter Ended December 31, 1995

                          Commission File Number 1-8893


                  ROYAL PALM BEACH COLONY, LIMITED PARTNERSHIP
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)


          DELAWARE                                      59-2501059
---------------------------------        ---------------------------------------
(State of other jurisdiction             (I.R.S. Employer Identification Number)
of incorporation or organization)



     2501 S. Ocean Drive
     Hollywood, Florida                                           33019
----------------------------------------                        ----------
(Address of principal executive offices)                        (Zip Code)


Registrant's telephone number, including area code (954) 927-3080

                                      NONE
--------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report


Indicate by checkmark  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  [   ]

Indicate the number of shares outstanding of each of the registrant's classes of
                common stock, as of the latest practicable date.

      CLASS                          Outstanding at December 31, 1995
-------------------------            --------------------------------
Limited Partnership Units                    4,485,504 units
<PAGE>
                                      INDEX

PART I.  Financial Information

         Balance sheets -
           December 31, 1995 and
           September 30, 1995                   

         Statements of operations -
           Three months ended
           December 31, 1995 and 1994           

         Statements of cash flows -
           Three months ended
           December 31, 1995 and 1994           

         Notes to financial statements          

         Management's discussion and analysis
           of financial condition and results
           of operations                        


Part II.  Other information and signatures      
<PAGE>
                  ROYAL PALM BEACH COLONY, LIMITED PARTNERSHIP
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                           December 31,  September 30,
                                                               1995         1995
                                                            ----------   ----------
                                                                  (unaudited)
                                     ASSETS
<S>                                                         <C>          <C>       
Cash ....................................................   $   54,155   $   83,902
Mortgage notes and other receivables:
  Mortgage notes receivables ............................         --        236,153
  Other .................................................      433,050      435,883
Property held for sale ..................................    4,757,527    4,607,661
Other assets ............................................       40,495       61,891
                                                            ----------   ----------
                                                            $5,285,227   $5,425,490
                                                            ==========   ==========

                             LIABILITIES AND EQUITY

Liabilities:
  Mortgage note payable, bank ...........................   $1,058,643   $1,010,513
  Mortgage note payable, general partner ................      500,000      500,000
  Accounts payable and accrued
    liabilities .........................................      855,927      840,402
  Estimated cost of development
    of land and property sold ...........................       41,923       14,441

Equity:
  Partners' equity, 4,485,504 units
           outstanding ..................................    2,828,734    3,060,134
                                                            ----------   ----------
                                                            $5,285,227   $5,425,490
                                                            ==========   ==========
</TABLE>
                        See notes to financial statements
<PAGE>
                  ROYAL PALM BEACH COLONY, LIMITED PARTNERSHIP
                            STATEMENTS OF OPERATIONS
                               THREE MONTHS ENDED
                           DECEMBER 31, 1995 AND 1994
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                       1995             1994
                                                   -----------      -----------
<S>                                                <C>              <C>        
Revenues .....................................     $   144,044      $    19,758
                                                   -----------      -----------

Cost and expenses:

     Cost of land sold .......................         106,210             --
         Selling, general and
       administrative expenses ...............         161,618          192,690
         Terminated merger costs .............          65,720             --
     Depreciation and property taxes .........          41,896           22,950
                                                   -----------      -----------

       Total costs and expenses ..............         375,444          215,640
                                                   -----------      -----------

Net loss .....................................     $  (231,400)     $  (195,882)
                                                   ===========      ===========

Net loss per unit ............................     $     (0.05)     $     (0.04)
                                                   ===========      ===========

Weighted average number of
  units outstanding ..........................       4,485,504        4,485,504
                                                   ===========      ===========
</TABLE>


                        See notes to financial statements
<PAGE>
                  ROYAL PALM BEACH COLONY, LIMITED PARTNERSHIP
                            STATEMENTS OF CASH FLOWS
                  THREE MONTHS ENDED DECEMBER 31, 1995 AND 1994
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                         1995            1994
                                                      ---------       ---------
<S>                                                   <C>             <C>      
Cash flows from operating activities:

     Cash was received from:
       Collections on sales
        and receivables ........................      $ 372,292       $  66,027
       Interest Income .........................          5,888          55,492
       Other ...................................            300            --
                                                      ---------       ---------

                                                        378,480         121,519

     Cash was expended for:
       Selling, administrative and
        property taxes .........................        215,376         169,925
       Improvements to property ................        240,982         764,088
                                                      ---------       ---------
                                                        456,358         934,013

Net cash used in operating activities ..........        (77,878)       (812,494)
                                                      ---------       ---------

Cash flow from investing activities:
  Purchase of property and equipment ...........           --              (758)
                                                      ---------       ---------

Cash flow from financing activities:
  Net borrowings from mortgage note
    payable, bank ..............................         48,131         611,894
                                                      ---------       ---------

Net decrease in cash ...........................        (29,747)       (201,358)
Cash, beginning of period ......................         83,902         543,243
                                                      ---------       ---------
Cash, end of period ............................      $  54,155       $ 341,885
                                                      =========       =========
</TABLE>
                        See notes to financial statements
<PAGE>
                  ROYAL PALM BEACH COLONY, LIMITED PARTNERSHIP
                            STATEMENTS OF CASH FLOWS
                     RECONCILIATION OF NET LOSS TO NET CASH
                     PROVIDED (USED) BY OPERATING ACTIVITIES
                  THREE MONTHS ENDED DECEMBER 31, 1995 AND 1994
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                        1995             1994
                                                     ---------        ---------
<S>                                                  <C>              <C>       
Net loss .....................................       $(231,400)       $(195,882)
                                                     ---------        ---------

Adjustments to reconcile net
  loss to net cash used in
  operating activities:

    Depreciation and amortization ............           1,025             --

  Change in assets and
    liabilities:

      Increase in:
       Property held for sale ................        (149,866)        (294,150)

       Decrease in:
        Mortgage notes and other
          receivables ........................         238,986           61,829
        Other assets .........................          20,370           34,289
        Accounts payable and
          accrued liabilities ................          15,525         (253,488)
        Estimated costs of
          development of land
          and property sold ..................          27,482         (165,092)
                                                     ---------        ---------

Total adjustments ............................         153,522         (616,612)
                                                     ---------        ---------

Net cash flow used in
  operating activities .......................       $ (77,878)       $(812,494)
                                                     =========        =========
</TABLE>
                        See notes to financial statements
<PAGE>
                  ROYAL PALM BEACH COLONY, LIMITED PARTNERSHIP
                          NOTES TO FINANCIAL STATEMENTS
                               THREE MONTHS ENDED
                           DECEMBER 31, 1995 AND 1994
                                   (UNAUDITED)


1. Organization:

         The  primary  business  purpose of the  Partnership  is the  operation,
management  and orderly  disposition of its assets and the  distribution  of the
proceeds  therefrom to unitholders.  The general partners of the Partnership are
Hasam Realty Limited Partnership and Stein Management Company, Inc.


2. Interim financial statements:

         The accompanying  unaudited financial  statements have been prepared in
accordance  with the  instructions  to Form 10-Q and do not  include  all of the
information and footnotes required by generally accepted  accounting  principles
for complete financial statements. In the opinion of management, all adjustments
(consisting  of  normal  recurring  accruals)  considered  necessary  for a fair
presentation  have been included.  Operating  results for the three months ended
December  31, 1995 are not  necessarily  indicative  of the results  that may be
expected for the fiscal year ending September 30, 1996. These statements  should
be read in conjunction with the financial  statements and notes thereto included
in the Company's  Annual Report on Form 10-K for the fiscal year ended September
30, 1995.


3. Income tax:

         The  Partnership has made no provision for income taxes since it is not
subject to income taxes.  Instead, the partners are required to include in their
income tax returns their share of the Partnership's taxable income or loss.
<PAGE>
                  ROYAL PALM BEACH COLONY, LIMITED PARTNERSHIP
                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS
                               THREE MONTHS ENDED
                           DECEMBER 31, 1995 AND 1994
                                   (UNAUDITED)

Liquidity and Capital Resources

         During the past fiscal year and last quarter,  the Partnership incurred
substantial  expenses in the  planning  and  development  of its  properties  in
addition to normal ongoing  administrative  costs.  During the past fiscal year,
the Partnership withheld its properties from sale in anticipationg of a business
combination  which was being  negotiated  throughout most of the year, but which
negotiations  were terminated in December,  1995. The deferral of sales resulted
in a substantial  net cash outflow during the year.  Such matters were discussed
in Item 1 -- "Business" -- (a) "General  Development  of Business"  contained in
the  Annual  Report of the  Partnership  on Form 10K for the  fiscal  year ended
September 30, 1995  (hereinafter the  "Incorporated  10-K"). An extract from the
Incorporated  10-K.containing  said  Items 1 and 2 thereof  is  annexed  to this
report as an Exhibit  and is  incorporated  herein by  reference.  In  addition,
receipts from mortgage payments declined as purchase money mortgagees  completed
interest  and  amortization  schedules.  As a  result,  the  Partnership's  cash
balances  declined  from $.54  million  at  September  30,  1994 to  $84,000  at
September 30, 1995 to $54,000 at at December 31, 1995.

During the  current  fiscal  year,  and based upon  management's  judgment  that
ordinary operating expenses will not increase, the Partnership  anticipates that
cash flow and liquidity requirements will be satisfied by current cash, the bank
financing  described in Item 2 --  Properties  -- "Village of Royal Palm Beach",
land sales and contingent  utility receipts described under Item 2 -- Properties
-- "Utility  Contingent  Receipts," in the Incorporated  10-K. In the event of a
deferral of land sales beyond currently anticipated dates,  additional financing
arrangements which management believes will be available from, or guaranteed by,
Hasam Realty Limited  Partnership,  a general partner of the Partnership,  or an
institutional lender.

Affect of Land Sales on Future Cash Flow

Assuming that the  Partnership  determines  to continue to liquidate,  total net
cash flow which might become  available for distribution  remains  unpredictable
due to uncertain conditions in the South Florida real estate market in which the
Partnership's  remaining  real estate is located,  and the  competitive  factors
described in Item 1 -- Business -- "Competition" of the Partnership's  report on
Form 10K for the fiscal year ended  September  30, 1995  incorporated  herein by
reference.  These conditions will continue to affect the realizable value of the
Partnership's remaining land. See Item 2 of the Incorporated 10K.


As indicated in Item 2 in the Incorporated  10-K, the Partnership has determined
to develop  portions  of its  remaining  properties  in order to  enhance  their
ultimate  selling  price.  Such  development  will  continue  whether or not the
Partnership  continues  to  liquidate,   contingent  upon  the  availability  of
financing,  as  discussed  in Item 2 --  Properties  --  "Village  of Royal Palm
Beach." As indicated under Item 1 -- "Factors  Affecting  Future  Operations and
Distributions" in the Incorporated 10-K, it is unlikely, in view of management's
decision to continue  development  activities  as an aid to the  enhancement  of
ultimate  liquidation  proceeds,  that  distributions  to partners  will be made
during fiscal 1996.

Assuming that the Partnership continues to liquidate,  total net cash flow which
might become available for distribution  remains  unpredictable due to uncertain
conditions in the South  Florida real estate  market in which the  Partnership's
remaining real estate is located,  and the competitive factors described in Item
1 -- Business -- "Competition"  of the Incorporated  10-K. These conditions will
continue to affect the realizable  value of the  Partnership's  remaining  land,
including  decisions by parties  holding  options on the  Partnership's  land to
exercise such options in whole or in part.

Environmental Matters

There are no  environmental  contingencies  in respect of the Partnership or its
properties.  Use of all of the Partnership's properties is subject to compliance
with state and county land use regulations  relating to  environmental  matters,
which the  Partnership  takes  into  account  in  considering  the values of its
properties.

Results of Operations

The only significant difference in the results of operations between the quarter
ended  December 31, 1994 and December 31, 1995 is the  inclusion in revenues for
the three  months  ended  December  31,  1993 of the net  proceeds  of  $140,000
received  upon the sale of four  residential  lots and the inclusion of the cost
thereof in Cost of Land Sold.  Selling,  general and administrative  matters was
reduced as a result of the generally declining level of business activity of the
Partnership,  and  Depreciation  and property  taxes  increased as the result of
increased property valuations by taxing authorities.
<PAGE>
                           PART II - OTHER INFORMATION


ITEM 6.   Exhibits and Reports on Form 8-K

          (a)  Exhibits -

                99 - Copy of Items 1 and 2 from  Annual  Report of the Report of
                the Partnership on Form 10-K for the fiscal year ended September
                30, 1995

                Registrant on Form 10-K for the fiscal year ended

          (b)  Reports on Form 8-K - None



                                   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.


                                          ROYAL PALM BEACH COLONY,
                                             LIMITED PARTNERSHIP

                                           By: Stein Management Company, Inc.
                                               Managing General Partner




DATE:  March 4, 1996                       By: /s/David B. Simpson
                                               ---------------------------------
                                               David B. Simpson, Vice President