<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q


(Mark one)

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

For Quarter Ended June 30, 2003

                                       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:               0-18444


                  YAGER/KUESTER PUBLIC FUND LIMITED PARTNERSHIP
------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


        North Carolina                              56-1560476
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(State or other jurisdiction of        (I.R.S. Employer Identification Number)
incorporation or organization)


1300 Altura Road       Fort Mill, South Carolina                   29708
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(Address of principal executive office)                         (Zip code)

                                 (803) 547-9100
-------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

         (Former name, former address and former fiscal year, if changed
                               since last report)

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 [ ]

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

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

                              Yes [ ]     No [ ]

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

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




<PAGE>
                  YAGER/KUESTER PUBLIC FUND LIMITED PARTNERSHIP
                     NOTES TO CONDENSED FINANCIAL STATEMENTS
                                   (UNAUDITED)



1.    Nature of Business:

      The Partnership was formed in July 1986 to acquire, operate, hold for
      investment and sell real estate. The Partnership currently owns the
      EastPark Executive Center in Charlotte, North Carolina. On April 24, 1998,
      the Partnership sold its only other real property holding, the BB&T
      building facilities (formerly the UCB building) located in Greenville,
      South Carolina.

2.    Opinion of Management:

      In the opinion of management, the accompanying unaudited condensed
      financial statements contain all adjustments (all of which were normal
      recurring accruals) necessary for a fair presentation. The results of
      operations for the interim periods are not necessarily indicative of the
      results which may be expected for an entire year.

3.    Statement of Cash Flows:

      For purposes of reporting the statements of cash flows, the Partnership
      includes all cash accounts, which are not subject to withdrawal
      restrictions or penalties, and all highly liquid debt instruments
      purchased with a maturity of three months or less as cash and cash
      equivalents on the accompanying condensed balance sheets.

4.    Priority Return:

      At December 31, 2002, the cumulative unpaid priority return to the unit
      holders was $3,380,753 compared to $3,137,969 one year prior. This
      increase resulted from no distributions being made to partners during the
      year. Based on the current and projected commercial real estate market
      conditions, the General Partners believe that it is reasonably unlikely
      that a sale of the remaining Partnership property would produce net sale
      proceeds sufficient to pay any of such priority return. Furthermore, the
      General Partners believe that it is reasonably unlikely that the
      Partnership's operating income or any refinancing of Partnership debt
      would generate sufficient funds to pay any portion of the priority return.


<PAGE>
PART I -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS




                  YAGER/KUESTER PUBLIC FUND LIMITED PARTNERSHIP
                            CONDENSED BALANCE SHEETS


<TABLE>
<CAPTION>
                                                                                 June 30,            December 31,
                                                                                   2003                  2002
                                                                                -----------           -----------
   ASSETS                                                                       (Unaudited)              (Note)

<S>                                                                             <C>                   <C>
CURRENT ASSETS
 Cash and cash equivalents                                                      $   154,973           $   124,060
 Accounts receivable, tenant                                                         42,247                42,247
 Prepaid expenses                                                                     2,226                    --
 Securities available for sale                                                       82,981                73,426
                                                                                -----------           -----------

        Total current assets                                                        282,427               239,733
                                                                                -----------           -----------

INVESTMENTS AND NONCURRENT RECEIVABLES
 Properties on operating leases and properties held
   for lease, net of accumulated depreciation
   2003 $705,480;  2002 $705,480                                                  2,287,569             2,287,569

OTHER ASSETS
 Deferred charges, net of accumulated amortization
   2003 $12,190; 2002 $12,190                                                         2,810                 2,810
 Deferred leasing commissions, net of accumulated
   amortization 2003 $19,265; 2002 $19,265                                           33,122                33,122
                                                                                -----------           -----------

                                                                                $ 2,605,928           $ 2,563,234
                                                                                ===========           ===========

   LIABILITIES AND PARTNERS' EQUITY

CURRENT LIABILITIES
 Current maturities of long-term debt                                           $    84,000           $    84,000
 Accounts payable                                                                     8,565                10,155
 Accrued expenses                                                                    24,254                14,648
 Deferred revenue                                                                        --                    --
                                                                                -----------           -----------

        Total current liabilities                                                   116,819               108,803
                                                                                -----------           -----------

LONG-TERM DEBT, less current maturities                                           1,261,000             1,310,000
                                                                                -----------           -----------

COMMITMENT AND CONTINGENCY (Note 4)

PARTNERS' EQUITY
 General partners                                                                   (10,940)              (11,721)
 Limited partners                                                                 1,240,306             1,167,367
 Net unrealized gain (loss) on investment securities                                 (1,257)              (11,215)
                                                                                -----------           -----------

                                                                                  1,228,109             1,144,431
                                                                                -----------           -----------

                                                                                $ 2,605,928           $ 2,563,234
                                                                                ===========           ===========
</TABLE>


Note:    The Condensed Balance Sheet at December 31, 2001 has been taken from
         the audited financial statements at that date. See Notes to Condensed
         Financial Statements.



<PAGE>
<TABLE>
<CAPTION>

                                                          Three Months Ended               Six Months Ended
                                                                 June 30,                       June 30,
                                                        -------------------------       -------------------------
                                                           2003           2002             2003           2002
                                                               (Unaudited)                     (Unaudited)
<S>                                                     <C>             <C>             <C>             <C>
Rental income                                           $ 148,682       $ 148,330       $ 301,177       $ 295,955

Operating expenses:
 Wages and contract labor                                   1,500           1,500           3,000           3,000
 Depreciation and amortization                                 --              --              --              --
 Repairs and maintenance                                   40,288          38,839          74,227          81,148
 Management fees                                            4,461           4,515           8,856           8,944
 Utilities                                                 20,831          24,849          43,847          48,070
 Professional fees                                         21,798          24,484          40,909          41,398
 Property taxes                                            10,665          10,665          21,330          21,330
 Miscellaneous                                                791           2,466           3,738           3,528
                                                        ---------       ---------       ---------       ---------

                                                          100,334         107,318         195,907         207,418
                                                        ---------       ---------       ---------       ---------

        Operating income                                   48,348          41,012         105,270          88,537
                                                        ---------       ---------       ---------       ---------

Nonoperating income (expense):
 Interest and dividend income                               1,123           1,159           2,106           2,372
 Interest expense                                         (14,600)        (17,512)        (29,268)        (34,647)
 Other                                                         --              --              --              --
                                                        ---------       ---------       ---------       ---------
                                                          (13,477)        (16,353)        (27,162)        (32,275)
                                                        ---------       ---------       ---------       ---------

        Net income                                      $  34,871       $  24,659       $  78,108       $  56,262
                                                        =========       =========       =========       =========

        Net income per limited
          partnership unit                              $    5.46       $    3.86       $   12.22       $    8.80
                                                        =========       =========       =========       =========
</TABLE>


See Notes to Condensed Financial Statements.
<PAGE>
                  YAGER/KUESTER PUBLIC FUND LIMITED PARTNERSHIP
                       CONDENSED STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>

                                                                                          Six Months Ended
                                                                                               June 30,
                                                                                     -----------------------------
                                                                                       2003                2002
                                                                                     ---------           ---------
                                                                                               (Unaudited)
<S>                                                                                  <C>                 <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)                                                                    $  78,108           $  56,262
 Adjustments to reconcile net income (loss) to net cash
   provided by (used in) operating activities:
   Depreciation and amortization                                                            --                  --
   Loss on sale of securities available for sale                                            --                  --
 Change in assets and liabilities:
   (Increase) Decrease in prepaids, deferrals and                                       (2,226)             (1,085)
      other receivables
    Increase (Decrease) in accounts payable and accrued expenses                         8,016              23,475
                                                                                     ---------           ---------

        Net cash provided by (used in) operating activities                             83,898              78,652
                                                                                     ---------           ---------

CASH FLOWS FROM INVESTING ACTIVITIES
 Sale of securities available for sale                                                     403                  --
 Purchase of securities available for sale                                                  --              (1,764)
                                                                                     ---------           ---------

        Net cash provided by (used in) investing activities                                403              (1,764)

CASH FLOWS FROM FINANCING ACTIVITIES
 Principal payments on long-term borrowings                                            (49,000)            (30,000)
 Cash distributions                                                                     (4,388)                 --
                                                                                     ---------           ---------

        Net cash (used in) financing activities                                        (53,388)            (30,000)

        Net increase (decrease) in cash and cash equivalents                            30,913              46,888

Cash and cash equivalents:
 Beginning                                                                             124,060              65,583
                                                                                     ---------           ---------

 Ending                                                                              $ 154,973           $ 112,471
                                                                                     =========           =========
</TABLE>


See Notes to Condensed Financial Statements.
<PAGE>
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS


Changes in Financial Condition

There have not been any significant changes in financial condition from December
31, 2002 to June 30, 2003. Accrued expenses have increased slightly from
year-end due to the monthly accrual of the 2003 real property taxes.


Liquidity and Capital Resources

During the quarter ended June 30, 2003, the Partnership operations continued to
meet working capital requirements and working capital was increased by
approximately $35,000 since year-end. The working capital as of June 30, 2003
was $165,608. Cash distributions in the amount of $4,388 were paid out during
the first quarter. These distributions represented the 2002 Federal and North
Carolina tax paid on behalf of foreign and non-resident partners.

Results of Operations

Operating results for the three months ended June 30, 2003 are slightly more
favorable as comparable to the same period of the prior year. Rental income is
up approximately 2% due to escalation increases for the current tenants and for
common area maintenance reimbursements received. Overall, operating expenses are
down approximately 5.5% as compared to the same period of the prior year
primarily due to the decrease in repairs and maintenance and utilities. However,
the General Partners expect to incur approximately $40,000 in parking lot
repairs during the third quarter of 2003. Interest expense continues to be down
from the prior year due to the decrease in interest rates on the floating rate
loan.

Status of EastPark Executive Center

The General Partners remain committed to selling the EastPark facility and
continue to have it listed with a commercial real estate broker. At this time,
the facility is not under contract with any potential buyers. The General
Partners are also working towards extending the leases with the current tenants.
Although the facility is 91% leased, all current tenants have the option to
terminate their leases currently or within the next year. The GSA has the option
to cancel its lease upon ninety (90) days written notice and accounts for 85% of
the total rental income; accordingly, the General Partners will focus their
lease extension efforts on a GSA extension. However, no assurances can be given
that a replacement tenant could be found if GSA decides to terminate its lease.
The General Partners will continue to search for the best offer for the property
and manage it at acceptable standards until such time as it can sell the
property to a qualified buyer.

Forward-Looking Statements

This report contains certain forward-looking statements with respect to the
financial condition, results of operations, plans, objectives, future
performance and business of the Partnership. These forward-looking statements
involve certain risks and uncertainties. Actual results may differ materially
from those contemplated by such forward-looking statements.


ITEM 4.   CONTROLS AND PROCEDURES

In connection with the preparation of this report, the person performing the
function of principal executive officer and the person performing the function
of the principal financial officer of the Partnership have evaluated the
effectiveness of the Partnership's disclosure controls and procedures as of a
date within 90 days of the filing of this report and have concluded that the
Partnership's disclosure controls and procedures are suitable and effective for
the Partnership, taking into consideration the size and nature of the
Partnership's business and operations.

<PAGE>
PART II.   OTHER INFORMATION

              Item  1.     Legal Proceedings

                           The Partnership is not engaged in any legal
                           proceedings of a material nature at the present time.

               Item 6.     Exhibit Index

                           (a) Exhibits:

                           Designation
                           Number Under
               Exhibit     Item 601 of
               Number      Regulation S-K   Exhibit Description

                  1*       4        Instrument defining rights of security
                                    holders - set forth in the
                                    Limited Partnership Agreement

                  2*       10       Limited Partnership Agreement

                  3**      10.1     Exclusive Leasing and Management Agreement
                                    dated October 1, 1994 (EastPark Executive
                                    Center)

                  4***     10.2     Listing Agreement of Property For Lease
                                    and/or Sale dated December 22, 1998
                                    (EastPark Executive Center)

                  5        31.1     Certification required by Section 31 of
                                    Item 601 of Regulation S-K

                  6        31.2     Certification required by Section 31 of
                                    Item 601 of Regulation S-K

                  7        32.1     Certification  pursuant to Section  1350
                                    of Chapter 63 of Title 18 of the United
                                    States Code  (Sarbanes-Oxley Act of 2002.)

                  8        32.2     Certification pursuant to Section  1350 of
                                    Chapter 63 of Title 18 of the United States
                                    Code  (Sarbanes-Oxley Act of 2002.)

                     (b)   Reports on Form 8-K:

                           No reports on Form 8-K have been filed during the
                           three months ended June 30, 2003.





                  *        Incorporated by reference to Exhibit A of the
                           Partnership's Prospectus dated December 1, 1987,
                           Registration Number 33-07056-A.

                  **       Incorporated by reference to Exhibit 3 of the
                           Partnership's Form 10-K for the year ended December
                           31, 1995.

                  ***      Incorporated by reference to Exhibit 4 of the
                           Partnership's Form 10-K for the year ended December
                           31, 1998.

<PAGE>


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.

                                YAGER/KUESTER PUBLIC FUND
                                LIMITED PARTNERSHIP
                                (Registrant)

                                By:   DRY Limited Partnership,
                                      General Partner of Registrant


Date     8/14/03                By: /s/  Dexter  R. Yager, Sr.
                                    --------------------------------------
                                               Dexter  R. Yager, Sr.
                                               General Partner

Date     8/14/03                By:  /s/ Thomas K. Emery
                                    ---------------------------------------
                                               Thomas K. Emery
                                     (Serving in the function of Principal
                                     Financial Officer)