UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                              Washington, DC 20549

                                    FORM 10-Q
[ X ] Quarterly  Report  Pursuant  to Section 13 or 15(d) of the  Securities
      Exchange Act of 1934 for the quarter ended September 30, 2000
                                       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 0-26215

                          PROPERTY CAPITAL TRUST, INC.
             (Exact name of Registrant as specified in its charter)

Maryland                                                             04-2452367
------------                                                         ----------
(State or other jurisdiction of                                (I.R.S. Employer
incorporation or organization)                              Identification No.)

177 Milk St., Boston, Massachusetts                                       02109
-----------------------------------                                  ----------
(Address of principal executive offices)                             (Zip Code)

REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE:  (617) 451-2100

Former name, former address, and former fiscal year, if changes since last year.

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 [ ]

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

Class                                          Outstanding at November 6, 2000
---------------------                          ---------------------------------
Common Stock, $.01 par value                               479,226

<PAGE>
                          PROPERTY CAPITAL TRUST, INC.
                                      INDEX

                                                                PAGE NUMBER
PART I  FINANCIAL INFORMATION

Item 1  Financial Statements

        Consolidated Balance Sheets
        September 30, 2000 (unaudited) and Decemb                        3

        Consolidated Statements of Operations
        Three Months and Nine Months ended September 30, 2000
        and 1999 (unaudited)                                             4

        Consolidated Statements of Cash Flows
        Nine Months ended September 30, 2000 and                         5

        N6 - 7 to Consolidated Financial Statements

Item 2  Management's Discussion and Analysis of the Consolidated
        F8 - 10al Condition and Results of Operations

PART II OTHER INFORMATION:

Item 6  Exhibits and Reports on Form 8-K                                11
        Signatures                                                      12

                                        2
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1  Financial Statements
                          PROPERTY CAPITAL TRUST, INC.
                           Consolidated Balance Sheets
              September 30, 2000 (Unaudited) and December 31, 1999


                                     September 30, 2000       December 31, 1999
                                     ------------------       -----------------
                                     Assets
Rental Property, at cost
  Land .................................   $  202,500                $  202,500
  Building & Fixtures ..................    1,243,600                 1,243,600
  Tenant improvements ..................      402,114                   402,114
                                           ----------                ----------
                                            1,848,214                 1,848,214
  Less Accumulated depreciation ........      881,923                   858,757
                                           ----------                ----------
                                              966,291                   989,457

  Cash and Cash Equivalents ............      107,867                   180,931
  Prepaid Expense ......................        5,000                     5,000
  Deferred Charges, Net of
   Accumulated Amortization of
   $39,598 in 2000 and $35,195
   in 1999 .............................       48,974                    53,377
  Deferred Rent ........................      232,250                   267,088
                                           ----------                ----------
                                           $1,360,382                $1,495,853
                                           ==========                ==========
                 Liabilities and Shareholders' Equity (Deficit)
Liabilities:
  Current portion of mortgage
     payable ...........................   $   13,125                $   13,125
  Notes payable- other .................      315,910                   315,910
  Accounts payable
   and accrued expenses ................       55,789                    74,101
  Tenant security deposits .............       11,453                    11,453
                                           ----------                ----------
                                              396,277                   414,589
Mortgage Payable, Net of current
   Portion .............................      968,387                   978,252

Commitments and Contingencies

Limited Partners' Interest
  in Operating Partnership .............      412,798                   412,798

Shareholders' Equity (Deficit)
 Common stock, $.01 par value
 Authorized - 30,000,000 shares
 Issued and outstanding - 479,226 ......        4,792                     4,792
 Additional paid in capital ............      995,208                   995,208
 Accumulated deficit ...................   (1,417,080)               (1,309,786)
                                           ----------                ----------
                                             (417,080)                 (309,786)
                                           ----------                ----------
                                           $1,360,382                $1,495,853
                                           ==========                ==========
The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                        3
<PAGE>
                          PROPERTY CAPITAL TRUST, INC.
                Consolidated Statements of Operations (Unaudited)
                                     Three Months               Nine Months
                                  Ended September 30       Ended September 30,
                                  2000          1999         2000         1999
                                  ----          ----         ----         ----

Revenues:
 Rental Income ............... $   77,637   $   77,637  $  232,912   $  232,912
 Interest Income .............        699          717       2,923       10,451
                               ----------   ----------  ----------   ----------
                                   78,336       78,354     235,835      243,363
                               ----------   ----------  ----------   ----------
Expenses:
Transaction Costs ............          0        2,131           0    1,254,841
Administrative and
  Financial expenses .........     21,091        8,325      78,678       17,428
Professional services
  expenses ...................     11,250       11,250      44,219       23,750
Interest expense .............     27,998       27,472      82,754       44,732
Depreciation &
  amortization ...............      9,190        9,202      27,569       25,226
                               ----------   ----------  ----------   ----------
                                   69,529       58,380     233,220    1,365,977
                               ----------   ----------  ----------   ----------
Income (Loss) before
 limited partners' interest
 in operating partnership
 income ......................      8,807       19,974       2,615   (1,122,614)

Limited partners'
 interest in operating
 partnership income ..........    (36,636)     (36,636)   (109,909)    (127,362)
                               ----------   ----------  ----------   ----------

Net Loss ..................... $  (27,829)  $  (16,662)   (107,294)  (1,249,976)
                               ==========   ==========  ==========   ==========

Basic and diluted loss per
 common share ................       (.05)        (.04)       (.22)       (2.61)
                               ==========   ==========  ==========   ==========

Dividends per common share ...          $            $           $            $
                               ==========   ==========  ==========   ==========

Weighted average common
 shares outstanding ..........    479,226      479,226     479,226      479,226
                               ==========   ==========  ==========   ==========

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.
                                        4
<PAGE>
                          PROPERTY CAPITAL TRUST, INC.
                Consolidated Statements of Cash Flows (Unaudited)
                  Nine Months ended September 30, 2000 and 1999

                                                 2000                      1999
                                           ----------                ----------
Cash Flows from Operating Activities:
 Net Loss ..............................   $ (107,294)              $(1,249,976)
 Limited partners' interest in
   operating partnership income ........      109,909                   127,362
 Adjustments to reconcile net
   loss to net cash
   provided by (used in)
   operating activities:
   Depreciation and amortization .......       27,569                    25,226
   Decrease in deferred rent ...........       34,838                    34,832
   (Decrease) increase in
    accrued expenses ...................      (18,313)                   40,050
                                           ----------                ----------
     Total Adjustments .................      154,003                   227,476
                                           ----------                ----------
     Net cash provided by (used in)
     operating activities ..............       46,709                (1,022,500)
                                           ----------                ----------

Cash Flows From Investing Activities:
   Purchase of furniture and fixtures ..         --                      (8,000)
   Expenditures for deferred charges ...         --                     (28,602)
                                           ----------                ----------
   Net cash used in investing activities         --                     (36,602)
                                           ----------                ----------

Cash Flows From Financing Activities:
 Proceeds from notes payable ...........         --                     561,352
 Principal paid on notes payable .......         --                    (245,442)
 Proceeds from issuance of common stock          --                   1,000,000
 Proceeds from mortgage payable ........         --                   1,000,000
 Principal paid on mortgage payable ....       (9,864)                   (5,616)
 Distributions to partners .............     (109,909)               (1,181,636)
                                           ----------                ----------
   Net cash (used in) provided by
   financing activities ................     (119,773)                1,128,658
                                           ----------                ----------

Net (decrease) increase in cash ........      (73,064)                   69,556

Cash, beginning of period ..............      180,931                   153,094
                                           ----------                ----------

Cash, end of period ....................   $  107,867                $  222,650
                                           ==========                ==========

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.
                                        5
<PAGE>
                          PROPERTY CAPITAL TRUST, INC.

                   Notes to Consolidated Financial Statements

(1)    BASIS OF PRESENTATION

The interim  consolidated  financial  statements presented have been prepared by
Property  Capital  Trust,  Inc.  ("PCT")  without  audit and,  in the opinion of
management, reflect all adjustments of a normal recurring nature necessary for a
fair statement of its financial  position at September 30, 2000, and the results
of its  operations  for the three and nine months ended  September  30, 2000 and
1999,  and cash flows for the nine  months  ended  September  30, 2000 and 1999.
Interim results are not  necessarily  indicative of results for a full year. The
consolidated  financial  statements  represent  the activity of PCT and Property
Capital  Trust  Limited   Partnership   ("PCT  LP"),  a  Massachusetts   limited
partnership of which PCT is the sole general partner.

The  consolidated  financial  statements and notes are presented as permitted by
Form  10-Q  and  do not  contain  certain  information  included  in the  annual
financial statements and notes of PCT. The consolidated financial statements and
notes  included  herein  should  be read in  conjunction  with the  consolidated
financial  statements  and notes included in PCT's Current Annual Report on form
10-K, filed with the Securities and Exchange Commission on March 29, 2000.

(2)      BUSINESS AND ORGANIZATION

PCT LP was formed pursuant to the provisions of the Uniform Limited  Partnership
Act of  Massachusetts  to  acquire,  hold,  develop,  operate,  and  lease  real
property. PCT LP owns and operates commercial real estate located at 51 New York
Avenue, Framingham, Massachusetts.

In May 1999,  Maryland  Property  Capital Trust,  Inc., a Maryland  corporation,
merged  with  Property   Capital  Trust  (the   "Trust"),   a  publicly   traded
Massachusetts  business trust. PCT changed its name to "Property  Capital Trust,
Inc." and  intends to  continue  to qualify as a Real  Estate  Investment  Trust
("REIT").  Immediately  following the merger, PCT LP purchased 319,489 shares of
common  stock of PCT for an  aggregate  price of  $1,000,000,  which  stock  was
distributed  to the partners of PCT LP. PCT LP borrowed  $1,000,000,  secured by
the property  located at 51 New York  Avenue,  Framingham,  Massachusetts,  as a
source of funding this  purchase.  In connection  with these  transactions,  the
partnership  agreement of PCT LP was amended and  restated  and PCT  contributed
$1,000,000  to the  capital  of PCT LP and  became  the  general  partner of the
partnership.

As a result of transactions  outlined above,  PCT LP's limited  partners control
approximately  67% of the voting stock of PCT. Because PCT LP's partners own the
larger  portion  of the  voting  rights of PCT,  PCT LP has been  treated as the
"accounting  acquirer" and  historical  information  of PCT solely  reflects the
financial  information of PCT LP for the periods prior to May 28, 1999, the date
on which the merger was consummated.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The  significant   accounting   policies   followed  by  PCT  in  preparing  its
consolidated  financial  statements  are set forth in Note (1) to such financial
statements  included in Form 10-K for the year ended  December 31, 1999. PCT has
made no significant  change in these  policies  during the three and nine months
ended September 30, 2000.

                                        6
<PAGE>
                          PROPERTY CAPITAL TRUST, INC.

                   Notes to Consolidated Financial Statements

(4)    SEGMENT INFORMATION

Management of PCT has decided to operate the business  with only one  reportable
segment.  The  results of  operations  for the rental  real  estate  segment are
reflected in the accompanying consolidated financial statements.

                                        7
<PAGE>
                          PROPERTY CAPITAL TRUST, INC.

ITEM 2.  MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF THE  CONSOLIDATED  FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

Forward-looking Statements

This  Management's   Discussion  and  Analysis  of  the  Consolidated  Financial
Condition  and  Results of  Operations,  and other  sections  of this  Quarterly
Report, contain forward-looking  statements within the meaning of Section 27A of
the  Securities  Act of 1933 and Section 21E of the  Securities  Exchange Act of
1934, including statements that are based on current expectations, estimates and
projections about the industries in which PCT operates, management's beliefs and
assumptions  made  by  management.  Words  such  as  "expects",   "anticipates",
"intends", "plans", "believes",  "seeks", "estimates",  variations of such words
and  similar   expressions   are  intended  to  identify  such   forward-looking
statements.  These  statements  are not  guarantees  of future  performance  and
involve  certain risks,  uncertainties  and  assumptions  which are difficult to
predict.  These risks, among others,  that could affect PCT's future performance
include:  (i) changes in business strategy and development  opportunities;  (ii)
the business  abilities  and judgment of PCT's  officers  and  directors;  (iii)
failure of PCT to qualify as a REIT; (iv) real estate investment considerations,
such as the effect of economic and other conditions in PCT's market area in cash
flows and values; and (v) PCT's ability to generate revenues  sufficient to meet
debt service  payments and other operating  expenses that are not otherwise paid
by the  existing  tenant.  Therefore,  actual  outcomes  and  results may differ
materially  from those in such  forward-looking  statements.  PCT  undertakes no
obligation  to update  publicly  any  forward-looking  statements,  whether as a
result of new information, future events or otherwise.

OVERVIEW

Maryland Property Capital Trust, Inc. ("PCT"), a Maryland corporation was formed
on June 15,  1998.  In May 1999,  PCT merged with  Property  Capital  Trust (the
"Trust"), a publicly traded  Massachusetts  business trust. PCT changed its name
to "Property  Capital Trust,  Inc." and intends to continue to qualify as a Real
Estate  Investment  Trust ("REIT")  under the Internal  Revenue Code of 1986, as
amended.

PCT does not own directly any real estate.  PCT's sole asset is its  approximate
1% general partnership interest and approximate 32.3% common limited partnership
interest in PCT LP.

PCT LP owns 17,250  square feet of real  estate  located at 51 New York  Avenue,
Framingham,  MA. This  property is comprised of 1.1 acres of land  improved by a
one-story  combined office and research  development  building.  Framingham York
Associates  Limited  Partnership,  the  predecessor  of PCT  LP,  acquired  this
property  in 1985.  Currently,  Genzyme  Corporation  is the sole  tenant of the
property.  The lease, as amended,  is for a term of twenty years that expires in
September 2005. As of September 30, 2000, PCT LP had an outstanding  mortgage of
$981,512  that is secured by the real estate and  assignment  of rents under the
operating lease.
                                       8
<PAGE>
PCT relies on the  experience  and  knowledge of its  officers and  directors to
manage its  growth,  if any.  PCT  believes  that its  executive  officers  have
long-standing  relationships with  institutional  owners,  lenders,  bankers and
other real estate operators and developers which PCT anticipates may provide PCT
with access to transaction activity and investment opportunities. As part of its
strategy,  PCT  anticipates  that it may  position  itself to produce  portfolio
growth if and when the  capital  markets  for REIT's  improve and as funding for
real estate activities of publicly held entities becomes more readily available.
Until PCT is satisfied that the financial markets are sufficiently stabilized to
allow growth of PCT, PCT LP will be operated with the existing  single  property
and with all operating expenses maintained at the lowest levels, consistent with
regulatory  requirements and other needs.  Given appropriate  market conditions,
PCT  believes  that its REIT  structure  will  allow  PCT to make tax  efficient
acquisitions  through the issuance of units of  partnership  interest of PCT LP.
PCT also may issue equity  securities of PCT that may be senior to the shares of
common stock of PCT.

RESULTS OF OPERATIONS

FOR THE THREE MONTHS ENDED  SEPTEMBER 30, 2000 COMPARED WITH THE THREE
MONTHS ENDED SEPTEMBER 30, 1999

Revenues

Rental  income for the three  months ended  September  30, 2000 and 1999 totaled
$77,637.  Interest  income  decreased  $18 from $717 for the three  months ended
September  30,  1999 to $699 for the three  months  ended  September  30,  2000.
Interest  income for the three months ended  September 30, 2000 is the result of
working capital reserves being invested in money market accounts.

Expenses

Transaction  costs for the three months ended September 30, 1999 totaled $2,131.
The  remaining   costs  were  related  to  the  issuance  of  the  common  stock
certificates  to PCT LP and the  shareholders  of the  Trust.  These  costs were
expensed as of September 30, 1999.

Administrative  and Financial  expenses totaled $21,091 and $8,325 for the three
months  ended  September  30,  2000 and 1999,  respectively.  The  approximately
$12,800  increase in expenses are a result of the costs  incurred for the annual
meeting, including printing, mailing and other investor service charges related
to  mailing of the Proxy  Statement  and Annual  Report to the  shareholders  of
record.

Interest  expense  increased  $526  from  $27,472  for the  three  months  ended
September 30, 1999 to $27,998 for the three months ended September 30, 2000. The
increase  is due to the  increase  in the prime  rate that is used to  calculate
interest on the outstanding note payable.

                                       9
<PAGE>
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED WITH THE NINE MONTHS ENDED
SEPTEMBER 30, 1999.

Revenues

Rental  Income was  $232,912 for the nine months  ended  September  30, 2000 and
1999.  Interest Income  decreased  $7,528 from $10,451 for the nine months ended
September  30, 1999 to $2,923 for the nine months ended  September  30, 2000. In
April 1999,  $1,000,000 of mortgage proceeds,  net of closing costs was invested
in a money market account until the transaction costs were paid. Interest Income
for the nine months ended September 30, 2000 and 1999 is a result of the working
capital reserves being invested in money market accounts.

Transaction  Costs  for  the  nine  months  ended  September  30,  1999  totaled
$1,254,841.  These costs included  legal,  accounting,  printing,  insurance and
other costs related to the issuance of the common stock  certificates  to PCT LP
and the shareholders of the Trust. These costs were expensed as of September 30,
1999. No additional costs have been incurred for the nine months ended September
30, 2000.

Administrative  and  Financial  Expenses  increased  approximately  $61,200 from
$17,428 for the nine  months  ended  September  30, 1999 to $78,678 for the nine
months ended  September 30, 2000.  The increase is a result of PCT having a full
nine months of expenses for the period ended September 30, 2000. These operating
expenses include  insurance  coverage,  investor  services related to the proxy,
annual shareholders meeting and stock transfers, storage and printing.

Professional Services expense increased $20,469 from $23,750 for the nine months
ended  September  30, 1999 to $44,219 for the nine months  ended  September  30,
2000. The increase is primarily due to the  additional  reporting and compliance
work done in preparation for the annual report, proxy statement and shareholders
meeting held in May.

Interest  Expense  increased  $38,022  from  $44,732 for the nine  months  ended
September 30, 1999 to $82,754 for the nine months ended  September 30, 2000. The
increase is due to a full nine months of interest  due on both the  mortgage and
note payable.

Financial Condition, Liquidity and Capital Resources

Cash and cash  equivalents  were  $107,867 at September  30, 2000 as compared to
$180,931 at December 31, 1999.  Management has considered the liquidity needs of
PCT and the adequacy of expected  liquidity sources to meet these needs. As long
as the tenant  continues to pay the rent obligation to PCT LP and  substantially
all of the operating  costs, as provided for under the existing lease agreement,
management   believes  the  level  of  working  capital  provided  by  operating
activities  will  be  sufficient  to pay the  monthly  debt  service,  operating
expenses not paid directly by the tenant, the minimum distributions  required to
maintain  PCT's  REIT  qualification  under the  Internal  Revenue  Code and the
quarterly  distributions  as required under the partnership  agreement of PCT LP
for a least the next 12 months.

For the three months ended  September  30, 2000 and 1999,  cash from  operations
distributed to the partners of PCT LP totaled  $36,636.  In October of 2000, PCT
LP distributed an additional $36,636 to its limited partners.

                                       10
<PAGE>
PART II.  OTHER INFORMATION

ITEM  6.  Exhibits  and  Reports  on Form  8-K

(a)  Exhibits.

  (3)  Articles  of Incorporation  and By-Laws

     3.1  The Articles of Amendment and  Restatement of Property  Capital Trust,
          Inc., incorporated herein by reference to Exhibit 3.1 to the Company's
          Annual  Report on Form 10-K for the  fiscal  year ended  December  31,
          1999,  filed with the Securities and Exchange  Commission on March 29,
          2000 (file no. 000-26215).

     3.2  By-Laws  of  Property  Capital  Trust,  Inc.,  incorporated  herein by
          reference to Exhibit 3.2 to the  Company's  Annual Report on Form 10-K
          for the fiscal year ended December 31, 1999, filed with the Securities
          and Exchange Commission on March 29, 2000 (file no. 000-26215).

  (4)  Instruments  Defining Rights of  Shareholders

     4.1  Second  Amended  and  Restated  Agreement  of Limited  Partnership  of
          Property Capital Trust Limited  Partnership,  dated as of May 28, 1999
          by and among Property Capital Trust,  Inc. and the persons whose names
          are set forth on Exhibit A-1 therein, incorporated herein by reference
          to Exhibit 4.1 to the Company's  Quarterly Report on Form 10-Q for the
          quarter ended March 31, 2000,  filed with the  Securities and Exchange
          Commission on May 12, 2000 (file no. 000-26215).

   (27)  Financial Data Schedule is filed herewith as Exhibit 27.

(b)  Reports on Form 8-K.

     No Current Reports on Form 8-K were filed by the Company during the quarter
     ending September 30, 2000. 8

                                       11
<PAGE>
                          PROPERTY CAPITAL TRUST, INC.

                                   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 as of the 6th day of November 2000.

                                             PROPERTY CAPITAL TRUST, INC.




                                             /s/ Bruce A. Beal
                                             ---------------------------------
                                             Bruce A. Beal, President




                                             /s/ Michael A. Manzo
                                             ---------------------------------
                                             Michael A. Manzo, Treasurer
                                             (Principal Financial Officer)