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 June 30, 2001
                                       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 August 7, 2001
---------------                                    ---------------------------
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
         June 30, 2001 (unaudited) and December 31, 2000                   3

         Consolidated Statements of Operations
         Three Months and Six Months ended June 30, 2001 and 2000
         (unaudited)                                                       4

         Consolidated Statements of Cash Flows
         Six Months ended June 30, 2001 and 2000 (unaudited)               5

         Notes to Consolidated Financial Statements                    6 - 7

Item 2.  Management's Discussion and Analysis of the Consolidated
         Financial Condition and Results of Operations                8 - 10

PART II. OTHER INFORMATION:

Item 6.  Exhibits and Reports on Form 8-K.                                11

         Signatures                                                       12
<PAGE>
PART I.  FINANCIAL INFORMATION
ITEM 1.  Financial Statements
                          PROPERTY CAPITAL TRUST, INC.
                           Consolidated Balance Sheets
                 June 30, 2001 (Unaudited)and December 31, 2000

                                       June 30, 2001          December 31, 2000
                                      ---------------          ----------------
                                     Assets
Rental Property, at cost
  Land                                   $          -               $   202,500
  Building & Fixtures                               -                 1,243,600
  Tenant improvements                               -                   402,114
                                         ------------               -----------
                                                    -                 1,848,214
  Less Accumulated depreciation                     -                   889,646
                                         ------------               -----------
                                                    -                   958,568

  Cash and Cash Equivalents                   613,403                    98,682
  Prepaid Expense                               2,500                     4,319
  Deferred Charges, Net of
   Accumulated Amortization of
   $38,130 in 2000                                  -                    46,109
  Deferred Rent                                     -                   220,638
                                         ------------               -----------
                                         $    615,903               $ 1,328,316
                                         ============               ===========
                 Liabilities and Shareholders' Equity (Deficit)
                                  Liabilities:
  Current portion of mortgage
     payable                             $          -               $    14,487
  Notes payable- other                              -                   315,910
  Accounts payable
   and accrued expenses                       198,857                    87,837
  Tenant security deposit                           -                    11,453
                                         ------------               -----------
                                              198,857                   429,687
Mortgage Payable, Net of current
   Portion                                          -                   963,765

Commitments and Contingencies:
Limited Partners' Interest
  in Operating Partnership                    417,046                   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                       (1,000,000)               (1,477,934)
                                          -----------               -----------
                                                    -                  (477,934)
                                          -----------               -----------
                                          $   615,903               $ 1,328,316
                                          ===========               ===========

     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                   Six Months
                                    Ended June 30               Ended June 30
                              2001           2000          2001          2000
                              ----           ----          ----          ----

Revenues:
 Rental Income           $       -     $   77,638    $   74,758   $   155,275
 Interest Income            22,875            989        24,422         2,224
                         ---------     ----------     ---------   -----------
                            22,875         78,627        99,180       157,499
                         ---------     ----------     ---------   -----------
Expenses:
 Administrative and
   Financial expenses            -         46,194       177,436        57,587
 Professional services
   expenses                      -         19,195        93,500        32,969
 Interest expense                -         27,568        25,477        54,756
 Depreciation &
   amortization                  -          9,188        53,832        18,379
                         ---------     ----------     ---------     ---------
                                 -        102,145       350,245       163,691
                         ---------     ----------     ---------     ---------
(Loss) income before
 gain on sale of rental
 property and limited
 partners' interest in
 operating partnership
 income                     22,875        (23,518)     (251,065)       (6,192)

Gain on sale of rental
 property                        -              -     3,402,646             -

Limited partners'
 interest in operating
 partnership income        (22,875)       (36,637)   (2,673,647)      (73,273)
                         ---------     ----------     ---------     ---------

Net Income (Loss)                -        (60,155)      477,934       (79,465)
                         =========     ==========     =========    ==========

Basic and diluted income
 (loss) per common share $       -     $     (.13)    $    1.00    $     (.17)
                         =========     ==========     =========    ==========

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)
                     Six Months ended June 30, 2001 and 2000

                                               2001                      2000
                                         -----------               -----------
Cash Flows from Operating Activities:
 Net income (loss)                       $   477,934               $   (79,465)
 Gain on sale of rental property          (3,402,646)                        -
 Limited partners' interest in
   operating partnership income            2,673,647                    73,273
 Adjustments to reconcile net income
   (loss) to net cash
   provided by operating activities:
   Depreciation and amortization              53,832                    18,379
   Decrease in prepaid expenses                1,819                         -
   Decrease in deferred rent                  11,613                    23,225
   Increase (decrease) in
    accrued expenses                         111,020                    (4,420)
   Decrease in tenant security deposit       (11,453)                        -
                                         -----------               -----------
     Total Adjustments                       166,831                   110,457
                                         -----------               -----------
     Net cash (used in) provided by
     operating activities                    (84,234)                   30,992
                                         -----------               -----------

Cash Flows From Investing Activities:
  Proceeds from sale of rental property    4,562,515                         -
                                         -----------               -----------
   Net cash provided by
    investing activities                   4,562,515                         -
                                         -----------               -----------

Cash Flows From Financing Activities:
  Principal paid on mortgage payable        (978,252)                   (6,657)
  Principal paid on notes payable           (315,910)                        -
  Distributions to partners               (2,669,398)                  (73,273)
                                         -----------               -----------
   Net cash (used in) provided by
   financing activities                   (3,963,560)                  (79,930)
                                         -----------               -----------

Net increase (decrease) in cash              514,721                   (48,938)

Cash, beginning of period                     98,682                   180,931
                                         -----------               -----------

Cash, end of period                      $   613,403               $   131,993
                                         ===========               ===========


     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 June 30, 2001,  and the results of
its  operations and cash flows for the three and six months ended June 30, 2001.
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 27, 2001.

(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.  Prior to the sale to Genzyme  Corporation,  PCT LP owned and operated
commercial real estate located at 51 New York Avenue, Framingham, Massachusetts.

On March 28, 2001, PCT LP consummated the sale of the property located at 51 New
York  Avenue,  Framingham,  Massachusetts  ("51 New  York  Avenue")  to  Genzyme
Corporation  for an aggregate  purchase price of $4,750,000.  51 New York Avenue
was comprised of 1.1 acres of land improved by a one-story  combined  office and
research and development  building.  Prior to the sale, Genzyme  Corporation was
the sole tenant of the property.  The sale was consummated pursuant to the terms
of the  Purchase  and Sale  Agreement  dated  March 5, 2001  between  PCT LP and
Genzyme Corporation.  PCT LP paid a brokerage fee in connection with the sale of
51 New York Avenue of $142,500  (representing 3% of the aggregate sale price) to
The Beal Companies, LLP. PCT LP also paid debts totaling $1,365,333,  consisting
of $1,000,955 as payment in full on a loan from Boston Private Bank & Trust that
was  secured  by a  mortgage  on 51  New  York  Avenue,  and  $364,378  in  full
satisfaction  of a loan  incurred by PCT LP to The Beal  Companies LLP in May of
1999.  Under  the  terms  of PCT  LP's  Class A and  Class B  preferred  limited
partnership interests,  the Class A and Class B partners have a right to receive
substantially  all of the net proceeds  available for  distribution.  On May 30,
2001 PCT LP,  using funds from the sale,  redeemed  all of the Class A preferred
limited partnership  interests for an aggregate amount of $2,596,125.  Currently
there are no Class A preferred limited partnership units outstanding.

(3)  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, 2000. PCT has
made no  significant  change in these  policies  during the three and six months
ended June 30, 2001.
                                       6
<PAGE>
                          PROPERTY CAPITAL TRUST, INC.

             Notes to Consolidated Financial Statements (Continued)

(4)  SEGMENT INFORMATION

Management of PCT had 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.

(5)  BASIC AND DILUTED INCOME (LOSS) PER COMMON SHARE

Basic and diluted  income per common  share for the six month  period ended June
30, 2001 was $1.00,  compared  with a basic and diluted loss per common share of
($.17) for the six month period ended June 30, 2000. The $1.00 income per common
share is attributable solely to the gain from the sale of 51 New York Avenue.





















                                       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  places;  (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 on cash flows
and  values;  (v) PCT's  ability to pay  outstanding  debts and other  operating
expenses; and (vi) PCT's inability to make liquidation payments to shareholders,
based on the liquidation  preferences of the preferred  partnership interests of
PCT LP. 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

Property  Capital  Trust,  Inc.'s  ("PCT")  sole asset is its  approximately  1%
general  partnership  interest and approximate 32.3% common limited  partnership
interest in Property Capital Trust Limited Partnership ("PCT LP").

PCT LP, up until March 28, 2001, owned 17,250 square feet of real estate located
at 51 New York Avenue,  Framingham, MA ("51 New York Avenue"). On March 28, 2001
PCT LP sold the  property  to the  Genzyme  Corporation,  the sole tenant in the
building,  for an aggregate  purchase price of $4,750,000.  Part of the proceeds
from the sale were used to repay  $1,000,955  to Boston  Private  Bank and Trust
Company,  in full  payment  of the  outstanding  balance  (including  principal,
accrued  interest and  prepayment  penalties) on the mortgage  secured by 51 New
York Avenue,  and to repay $364,378 to The Beal Companies,  LLP, in full payment
of the outstanding  balance  (including  principal and accrued  interest) of the
loan  incurred  by PCT LP in 1999.  PCT also paid a  brokerage  fee of  $142,500
(representing 3% of the aggregate sale price) to The Beal Companies, LLP.

Subject to obtaining the requisite shareholder  approval,  management intends to
dissolve  and  liquidate  both PCT LP and PCT, as soon as it becomes  reasonably
practicable  to do so.  Notice of the 2001 annual  meeting (to be held on August
13, 2001) was sent to shareholders  of record as of July 20, 2001.  Shareholders
of record will consider the dissolution and liquidation of PCT LP and PCT at the
annual meeting. Management currently believes, assuming that the dissolution and
liquidation of PCT LP and PCT is approved,  that all of the remaining  assets of
PCT LP will be used to pay for the  expenses  incurred  in  connection  with the
liquidation and the  distribution  of the liquidation  preference to the Class B
preferred  partners  of PCT LP.  PCT's right to payment in  liquidation  remains
junior  to  Class  B  preferred  limited  partnership  interests.  As a  result,
management  anticipates  that  the  shareholders  of PCT will  not  receive  any
liquidation payments upon the liquidation of PCT LP and PCT.
                                       8
<PAGE>
RESULTS OF OPERATIONS

FOR THE THREE  MONTHS ENDED JUNE 30, 2001  COMPARED  WITH THE THREE MONTHS ENDED
JUNE 30, 2000

Revenues

Rental income for the three months ended June 30, 2001 totaled $0 as compared to
$77,638 for the three months  ended June 30 2000.  On March 28, 2001 51 New York
Avenue was sold to Genzyme  Corporation  and  rental  operations  ceased on that
date. Interest for the three months ended June 30, 2001 and 2000 totaled $22,875
and  $989,  respectively.  The  $21,886  increase  is a result  of the net sales
proceeds of 51 New York  Avenue  being  invested  until such time as the cash is
needed to redeem the Class B preferred limited partnership units and, subject to
obtaining the requisite shareholder  approval,  pay for the expenses incurred in
connection with the dissolution and liquidation of PCT LP and PCT.

There were no administrative and financial, professional services, interest, and
depreciation & amortization expenses for the three months ended June 30, 2001 as
a result  of the sale of 51 New  York  Avenue  to  Genzyme  Corporation  and the
payment in full of the mortgage and note payable.  These same  expenses  totaled
$46,194,  $19,195,  $27,568 and $9,188 for the three months ended June 30, 2000,
respectively.  The $102,145 aggregate decrease in these expenses is attributable
to the sale of 51 New York Avenue

FOR THE SIX MONTHS ENDED JUNE 30, 2001  COMPARED  WITH THE SIX MONTHS ENDED JUNE
30, 2000

Rental income for the six months ended June 30, 2001 totaled $74,758 as compared
to $155,275 for the six months ended June 30, 2000.  The $80,517  difference  is
due to the sale of 51 New York  Avenue on March 28,  2001,  at which time rental
operations  ceased.  Interest and other income for the six months ended June 30,
2001 and 2000 totaled $24,422 and $2,224, respectively.  The $22,198 increase is
a result of the net sales  proceeds of 51 New York Avenue being  invested  until
such  time as the  cash is  needed  to  redeem  the  Class B  preferred  limited
partnership units and, subject to obtaining the requisite  shareholder approval,
pay for the expenses incurred in connection with the dissolution and liquidation
of PCT LP and PCT.

Administrative and Financial expenses for the six months ended June 30, 2001 and
2000 totaled $177,436 and $57,587, respectively. The $119,849 increase is
related to the costs accrued during the first quarter of 2001 in connection with
the anticipated dissolution and liquidation of PCT LP and PCT.

Professional  Services  expense for the six months  ended June 30, 2001 and 2000
totaled $93,500 and $32,969,  respectively.  The $60,531  increase is related to
the costs accrued during the first quarter of 2001 in connection with the annual
meeting and the anticipated dissolution and liquidation of PCT LP and PCT.

Interest  expense  for the six  months  ended  June 30,  2001  totaled  $25,477.
Interest for the same period last year totaled $54,756. On March 28, 2001 51 New
York Avenue was sold and the  outstanding  mortgage  balance and notes  payable,
plus accrued interest were paid in full.

Loss before gain on sale of rental property  increased  $236,084 from $6,192 for
the six months ended June 30, 2000 to $242,276 for the six months ended June 30,
2001. The expenses for the  anticipated  dissolution  and liquidation of PCT and
PCT LP were accrued during the six months ended June 30, 2001, and this accounts
for the increased loss.

Gain on sale of rental  property for the six months ended June 30, 2001 reflects
the sale of 51 New York Avenue to Genzyme  Corporation in March 2001.  There was
no such gain for the six months ended June 30, 2000.
                                       9
<PAGE>
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

Cash and cash  equivalents were $613,403 at June 30, 2001 as compared to $98,682
at December 31, 2000,  an increase of $514,721.  This increase is due to the net
cash on hand as a result of the sale of 51 New York Avenue.

Subject to obtaining the requisite shareholder  approval,  management intends to
liquidate both PCT LP and PCT, as soon as it becomes  reasonably  practicable to
do so.  Notice of the 2001 annual  meeting  (to be held on August 13,  2001) was
sent to shareholders of record as of July 20, 2001.  Shareholders of record will
consider  the  dissolution  and  liquidation  of PCT LP  and  PCT at the  annual
meeting.  Management  currently  believes,  assuming  that the  dissolution  and
liquidation of PCT LP and PCT is approved,  that all of the remaining  assets of
PCT LP will be used to pay for the  expenses  incurred  in  connection  with the
liquidation and the  distribution  of the liquidation  preference to the Class B
preferred  partners  of PCT LP.  PCT's right to payment in  liquidation  remains
junior  to  Class  B  preferred  limited  partnership  interests.  As a  result,
management  anticipates  that  the  shareholders  of PCT will  not  receive  any
liquidation payments upon the liquidation of PCT LP and PCT.

For the six months ended June 30, 2001, cash  distributed to the partners of PCT
LP totaled  $2,669,398,  of which  $2,596,125 is  attributable  to the aggregate
redemption price paid to the to holders of Class A preferred limited partnership
interests in connection  with the  redemption  of all Class A preferred  limited
partnership interests.





                                       10
<PAGE>
PART II.  OTHER INFORMATION

ITEM 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

(3)  Article of Incorporation and By-Laws

3.1  The Article 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  by  reference  to Exhibit  4.1 to the
     Company's  Quarterly  Report on Form 10-Q for the  quarterly  period  ended
     March 31, 2000,  filed with the Securities  Exchange  Commission on May 12,
     2000 (file no. 000-26215).

(10) Material Contracts

10.1 Purchase and Sale Agreement,  dated March 5, 2001,  among Property  Capital
     Trust Limited Partnership and Genzyme Corporation is incorporated herein by
     reference to Exhibit  10.1 to PCT's  annual  report on Form 10-K filed with
     the Securities and Exchange Commission on March 27, 2001.

(b)  Reports on Form 8-K.

     One  Current  Report on Form 8-K was filed by the  Company on April 9, 2001
     announcing  the  sale  of  the  property  located  at 51 New  York  Avenue,
     Framingham, Massachusetts to Genzyme Corporation that occurred on March 28,
     2001.


                                       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 7th day of August 2001.

                                  PROPERTY CAPITAL TRUST, INC.



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




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



















                                       12
<PAGE>