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SECURITIES AND EXCHANGE COMMISSIONWashington, D.C.  20549  ___________

**Form 10Q** ___________

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THESECURITIES EXCHANGE ACT OF 1934

For the fiscal quarter ended

**June 30, 2002**

Commission file number:  000-29778

**Merry Land Properties,  Inc.**
State      of Incorporation: Georgia
I.R.S.        Employer Identification Number: 58-2412761

___________

P.O. Box  1417  Augusta, Georgia  (Address of Principal Executive Offices)
706      722-675630903(Registrant’s      Telephone(Zip        Code)Number,      Including Area Code)
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 twelve months, and  (2) has been subject to such filing requirements for the past ninety days: Yes  X . No____. 

The number of shares of  common stock outstanding as of June 30, 2002 was 2,739,685.

Form 10-Q  - Merry Land Properties, Inc.  Index
PART I.     FINANCIAL INFORMATION                                                                         PageItem 1.          Financial Statements                 Consolidated Balance Sheets - June 30, 2002 and December 31, 2001 .........................3                 Consolidated Statements of Income -                    Three and Six Months ended June 30, 2002 and 2001.......................................4                 Consolidated Statements of Cash Flows -                    Six Months ended June 30, 2002 and 2001.................................................5                 Notes to Consolidated Financial Statements.................................................6Item 2.          Management's Discussion and Analysis of Financial Condition                    and Results of Operations..............................................................10Item 3.          Quantitative and Qualitative Disclosures about Market Risk................................16PART II.    OTHER INFORMATIONItem 1.           Legal Proceedings........................................................................17Item 2.           Changes in Securities and Use of Proceeds................................................17Item 3.           Defaults upon Senior Securities..........................................................17Item 4.           Submission of Matters to a Vote of Security Holders......................................17Item 5.           Other Information........................................................................17Item 6.           Exhibits and Reports on Form 8-K.........................................................18SIGNATURES.................................................................................................19
Form 10-Q - Part I. Financial InformationItem 1-. Financial Statements

Merry Land Properties, Inc. and Subsidiaries                                            CONSOLIDATED BALANCE SHEETS                                                                                    Unaudited                                                                                  June 30, 2002          December 31, 2001                                                                              ----------------------  -----------------------ASSETS     Real estate assets, at cost:     Land held for mining, development and sale                                  $   4,178,045             $   4,658,330     Apartments                                                                     86,793,879                78,844,915     Apartment held for sale                                                         7,117,826                 7,078,875     Commercial rental property                                                      3,305,192                 2,564,034     Furniture and equipment                                                         1,993,155                 1,971,482     Development in progress                                                        20,160,868                21,828,302                                                                              ----------------------  -----------------------          Total cost                                                               123,548,965               116,945,938     Accumulated depreciation and depletion                                        (17,834,251)              (16,492,470)                                                                              ----------------------  -----------------------                                                                                   105,714,714               100,453,468INVESTMENT IN JOINT VENTURE                                                            367,083                   421,932CASH AND CASH EQUIVALENTS                                                            4,866,286                 3,601,636ESCROWED CASH                                                                        1,979,104                 1,963,745OTHER ASSETS     Assets of discontinued operations                                                       -                10,867,588     Notes receivable                                                                  356,828                   377,867     Deferred loan costs                                                             1,197,627                 1,393,741     Other receivable                                                                  289,915                   375,036     Deferred tax asset                                                              2,239,647                 4,140,846     Other                                                                             464,144                   105,310                                                                              ----------------------  -----------------------                                                                                     4,548,161                17,260,388                                                                              ----------------------  -----------------------TOTAL ASSETS                                                                     $ 117,475,348             $ 123,701,169                                                                              ======================  =======================NOTES PAYABLE     Liabilities of discontinued operations                                      $           -             $  13,681,491     Construction loans                                                             23,084,321                19,438,919     Mortgage loans                                                                 71,077,669                70,340,145                                                                              ----------------------  -----------------------                                                                                    94,161,990               103,460,555ACCOUNTS PAYABLE AND ACCRUED LIABILITIES     Accrued interest                                                                  584,114                   694,166     Accrued property taxes                                                            385,403                   563,816     Deferred revenue                                                                        -                    28,747     Construction retainage                                                          1,559,433                 1,431,717     Payables and accrued liabilities                                                1,899,371                 1,774,708                                                                              ----------------------  -----------------------                                                                                     4,428,321                 4,493,154STOCKHOLDERS' EQUITY     Common stock, at $1 stated value, 2,739,685 and 2,714,086 shares issued          and outstanding at June 30, 2002 and December 31, 2001, respectively       2,739,685                 2,714,086     Capital surplus                                                                 9,891,262                 9,686,018     Unamortized compensation                                                       (1,730,782)               (1,725,590)     Cumulative undistributed net earnings                                           8,341,510                 5,245,288     Receivable from ESOP                                                             (356,638)                 (172,342)                                                                              ----------------------  -----------------------                                                                                    18,885,037                15,747,460                                                                              ----------------------  -----------------------TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                       $ 117,475,348             $ 123,701,169                                                                              ======================  =======================
The accompanying notes are an integral part of theseconsolidated balance sheets.

Form 10-Q - Part I. Financial InformationItem 1-  Financial Statements

Merry Land Properties, Inc. and Subsidiaries                                          CONSOLIDATED STATEMENTS OF INCOME                                                     (Unaudited)
                                                                    Three months ended June 30,        Six months ended June 30,                                                                 --------------------------------- ---------------------------------INCOME                                                                 2002             2001             2002             2001                                                                 ---------------- ---------------- ---------------- ----------------Rental income                                                       $ 4,105,140      $ 4,148,431      $ 8,089,769     $ 8,220,461Royalty income                                                          150,609          159,136          274,029         277,904Interest income                                                          16,342           38,533           30,394          97,922Management fees                                                          94,276          126,907          203,184         218,884Development fees                                                         12,000                -          112,000          20,000Sale of condominium                                                     561,836          200,000          561,836         502,000Sale of land                                                                  -                -           98,742               -Sale of mitigation credits                                              126,961                -          126,961Other income                                                             (8,712)          31,828          (20,228)         31,828                                                                 ---------------- ---------------- ---------------- ----------------                                                                      5,058,452        4,704,835        9,476,687       9,368,999EXPENSESRental expense                                                        1,625,255        1,585,258        2,979,650       3,036,457Cost of condominium sold                                                500,325          174,890          500,325         438,127Interest expense                                                      1,400,959        1,536,465        2,785,612       3,026,640Depreciation                                                            671,345          606,452        1,342,692       1,211,456Amortization                                                             30,396           21,033           49,557          42,065General and administrative expense                                    1,027,730          870,721        2,106,914       1,738,405                                                                 ---------------- ---------------- ---------------- ----------------                                                                      5,256,010        4,794,819        9,764,750       9,493,150                                                                 ---------------- ---------------- ---------------- ----------------LOSS FROM CONTINUING OPERATIONS BEFORE TAXES                           (197,558)         (89,984)        (288,063)       (124,151)Income tax benefit                                                      (71,334)         (37,964)        (105,699)        (50,940)                                                                 ---------------- ---------------- ---------------- ----------------LOSS FROM CONTINUING OPERATIONS                                        (126,224)         (52,020)        (182,364)        (73,211)Income from apartments sold, net of an income tax expense of     $35,375 for the second quarter 2001 and $22,947 and $61,551     for the first six months in 2002 and 2001, respectively                  -           57,790           37,488         100,553Gain from sale of apartments, net of $1,983,951 in income taxes               -                -        3,241,099               -                                                                 ---------------- ---------------- ---------------- ----------------INCOME FROM DISCONTINUED OPERATIONS                                           -           57,790        3,278,587         100,553NET (LOSS) INCOME                                                   $  (126,224)     $     5,770      $ 3,096,223     $    27,342                                                                 ================ ================ ================ ================WEIGHTED AVERAGE COMMON SHARES                                        2,351,806        2,282,053        2,350,606       2,280,853LOSS FROM CONTINUING OPERATIONS PER COMMON SHARE                                                                    $     (0.05)     $     (0.03)     $     (0.07)    $     (0.03)EARNINGS FROM DISCONTINUED OPERATIONS PER COMMON SHARE                                                                    $      0.00      $      0.03      $      1.39     $      0.04(LOSS) EARNINGS PER COMMON SHARE                                    $     (0.05)     $      0.00      $      1.32     $      0.01
The accompanying notes are an integral part of theseconsolidated income statements.

Form 10-Q - Part I Financial InformationItem 1-  Financial Statements

Merry Land Properties, Inc. and Subsidiaries                                       CONSOLIDATED STATEMENTS OF CASH FLOWS                                                    (Unaudited)
                                                                              Six months ended June 30,                                                                         ------------------------------------       CASH FLOWS FROM OPERATING ACTIVITIES:                                   2002                2001                                                                         -----------------  -----------------       Net income                                                          $  3,096,223        $    27,342       Adjustments to reconcile net income to net cash from operations:       Income from discontinued operations, net of taxes                     (3,278,587)          (100,553)       Deferred income tax benefit                                             (105,699)           (50,940)       Cost of condominium sold                                                 500,325            438,127       Gain on sale real property and land                                      (98,742)                 -       Depreciation and amortization expense                                  1,392,249          1,253,521       Amortization of compensation element of restricted stock grants          179,152            161,771       Increase in other assets                                                (347,518)          (183,015)       (Decrease) increase in net payables and liabilities                      (56,788)           198,784                                                                         -----------------  -----------------            Net cash provided by operating activities                         1,280,615          1,739,267       CASH FLOWS FROM INVESTING ACTIVITIES:       Expenditures for development                                          (5,851,362)        (7,197,470)       Sale (purchase) of real property and land                                102,600         (1,336,849)       Capitalized costs, improvements and replacements                      (1,201,493)          (888,735)       (Increase) decrease in receivable from ESOP                             (184,296)           248,040       Distributions from joint ventures                                         54,849                  -       Payments received on notes receivable                                     21,039             34,525                                                                         -----------------  -----------------            Net cash used in investing activities                            (7,058,663)        (9,140,489)       CASH FLOWS FROM FINANCING ACTIVITIES:       Proceeds from term loan                                                        -          2,525,862       Proceeds from construction loans                                       3,645,402          4,613,775       Repayment of line of credit                                                    -         (1,500,000)       Proceeds from mortgage loan                                            1,070,000                  -       Repayments of mortgage loans                                            (332,476)          (319,531)       Increase in deferred loan costs                                          (11,039)           (75,000)       (Increase) decrease in escrows                                          (159,508)            11,101                                                                         -----------------  -----------------             Net cash provided by financing activities                        4,212,379          5,256,207       CASH FLOWS FROM DISCONTINUED OPERATIONS                                2,830,319            275,492       NET INCREASE (DECREASE) IN CASH                                        1,264,650         (1,869,523)       CASH AT BEGINNING OF PERIOD                                            3,601,636          4,452,189                                                                         -----------------  ----------------       CASH AT END OF PERIOD                                               $  4,866,286        $ 2,582,666                                                                         =================  =================       Interest paid:                                                      $  3,819,073        $ 3,982,034       Income taxes paid:                                                  $          -        $         -
**Merry Land Properties, Inc. and Subsidiaries                                    Notes To Consolidated Financial Statements**

*1.  Organization*

          Merry Land Properties, Inc. was formed on September 3, 1998, as a corporate subsidiary of Merry Land &Investment Company, Inc. On October 15, 1998, the common stock of Merry Land Properties was spun off to thecommon shareholders of Merry Land & Investment Company on the basis of one share of Merry Land Properties stockfor every twenty shares of Merry Land & Investment Company.

*2.  Basis of Presentation*

          The consolidated financial statements were prepared by the Company without audit, but in the opinion ofmanagement reflect all adjustments necessary (which adjustments are of a normal and recurring nature) for thefair presentation of the Company's financial position as of June 30, 2002 and results of operations for the threeand six month periods ended June 30, 2002. Results of operations for the interim 2002 period are not necessarilyindicative of results expected for the full year. Certain information and disclosures have been condensed oromitted pursuant to the rules and regulations of the Securities and Exchange Commission; the Company believesthat the disclosures herein are adequate to make the information presented not misleading.

          These financial statements should be read in conjunction with the audited financial statements and notesincluded in Merry Land's latest annual report on Form 10K for the fiscal year ended December 31, 2001.
*3. Discontinued Operations*

          On March 12, 2002, Merry Land sold both Magnolia Villas and West Wind apartments, located in Savannah,for a total of $16.4 million, recognizing a pretax gain of $5.2 million. As a result of the sales, the company'sfinancial statements have been prepared with these two community's net assets, results of operations, cash flows,and their gain from sale isolated and shown as "discontinued operations". All historical statements have beenrestated to conform to this presentation in accordance with statement of Financial Accounting Standard No. 144.

          Summarized financialinformation for the discontinued operations is as follows: 
                                               Three months ending June 30,        Six months ending June 30,                                               ----------------------------   ---------------------------------------                                                           2001                      2002                2001                                               ----------------------------   ------------------  -------------------Rental income                                         $   729,618               $  566,441          $  1,428,991Operating expenses                                       (260,109)               (261,325)             (519,514)Depreciation                                              (96,147)                (33,405)             (192,295)                                               ----------------------------   ------------------  -------------------Operating income                                          373,362                 271,711               717,182Interest expense                                         (274,642)               (207,573)             (543,969)Amortization expense                                       (5,555)                 (3,703)              (11,109)                                               ----------------------------   ------------------  -------------------Income before taxes                                        93,165                  60,435               162,104Income tax expense                                        (35,375)                (22,947)              (61,551)                                               ----------------------------   ------------------  -------------------Net income                                            $    57,790              $   37,488          $    100,553                                               ============================   ==================  ===================                                                    December 31, 2001                                               ----------------------------Apartments                                            $13,078,721Accumulated depreciation                               (2,211,133)Mortgage debt                                         (13,681,491)                                               ----------------------------                                                             ---------------------Net liabilities of discontinued operations            $(2,813,903)                                               ============================
          InAugust 2001, Merry Land sold the 248 unit *Woodcrest* apartment community. Thisformer community is not included as part of discontinued operations. Thecommunity’s net operating income after depreciation for the first sixmonths of 2001 was $448 thousand on gross rents of $784 thousand and operatingexpense excluding depreciation of $272 thousand. 

*4.  Assets Held for Sale
          MerryLand presently has under contract *Summit Place*, an apartment community thecompany considers to have less opportunity for growth than our remainingcommunities. However, there can be no assurance that this transaction will beconsummated. The community’s net operating income after depreciation forthe first six months in 2002 was $363 thousand on gross rents of $754 thousandand operating expense excluding depreciation of $301 thousand. Its $6.7million net book value is less than the projected sales price less closingcosts. 

*5.  Earnings Per Share and Share Information*

          Basic earnings per common share is computed on the basis of the weighted average number of sharesoutstanding during each period excluding unvested shares issued to employees under our Management Incentive Plan.As Merry Land had losses from continuing operations for all periods presented, all stock equivalents wereconsidered to be antidilutive and excluded from weighted shares outstanding.
          The potential dilutive stock equivalent excluded when calculating weighted average shares outstanding isas follows:                                               Three months ended June 30,         Six months ended June 30,                                             -------------------------------  -----------------------------------                                                  2002            2001              2002               2001                                             --------------  ---------------  ----------------  -----------------        Dilutive potential common shares        2,570,753       2,446,093         2,534,259          2,434,348                                             --------------  ---------------  ----------------  -----------------
*6.  Segment Information*

          Merry Land has three reportable segments: Apartment Communities, Commercial Properties and Land, andThird Party Services. The accounting policies of the segments are the same as those described in the summary ofsignificant accounting policies in the Form 10K of the year ended December 31, 2001 as modified to conform withSFAS No. 144.                                                              Commercial    Third PartyThree months ending June 30, 2002           Apartments         and Land      Services       Corporate      Consolidated                                          ---------------  -------------  -------------  -------------  ---------------Real estate rental revenue                 $  3,981,015    $   124,089     $        -     $         -    $   4,105,104Real estate expense                          (1,547,749)       (76,207)             -               -       (1,623,956)Depreciation and amortization                  (580,616)       (52,127)             -         (68,998)        (701,741)                                          ---------------  -------------  -------------  -------------  ---------------Income from real estate                       1,852,650         (4,245)             -         (68,998)       1,779,407Other income                                          -        351,081         94,276           3,513          448,870                                          ---------------  -------------  -------------  -------------  ---------------Segment income                                1,852,650        346,836         94,276         (65,485)       2,228,277Interest expense                                      -              -              -      (1,460,417)      (1,460,417)General and administrative                     (256,424)      (113,780)      (141,336)       (516,190)      (1,027,730)                                          ---------------  -------------  -------------  -------------  ---------------Income before taxes                           1,596,226        233,056        (47,060)     (2,042,092)        (259,870)Income tax benefit                                    -              -              -          94,994           94,994                                          ---------------  -------------  -------------  -------------  ---------------Income from continuing operations             1,596,226        233,056        (47,060)     (1,947,098)       (164,876)Income from discontinued operations             (24,975)             -              -          63,627          38,652                                          ---------------  -------------  -------------  -------------  ---------------Net income                                 $  1,571,251    $   233,056     $  (47,060)    $(1,883,471)   $   (126,224)                                          ===============  =============  =============  =============  ===============Capital investments                        $    238,157    $ 3,363,180     $        -     $    21,471    $  3,622,808                                          ===============  =============  =============  =============  ===============Total real estate assets                   $ 78,782,797    $26,745,929     $        -     $   185,988    $105,714,714                                          ===============  =============  =============  =============  ===============                                                             Commercial    Third PartyThree months ending June 30, 2001           Apartments        and Land       Services       Corporate      Consolidated                                          ---------------  -------------  -------------  -------------  ---------------Real estate rental revenue                 $  4,077,541    $    70,890     $        -     $         -    $  4,148,431Real estate expense                          (1,482,731)      (102,527)             -               -      (1,585,258)Depreciation and amortization                  (514,275)       (52,127)             -         (61,083)       (627,485)                                          ---------------  -------------  -------------  -------------  ---------------Income from real estate                       2,080,535        (83,764)             -         (61,083)      1,935,688Other income                                     35,000        184,246        126,907          35,360         381,513                                          ---------------  -------------  -------------  -------------  ---------------Segment income                                2,115,535        100,482        126,907         (25,723)      2,317,201Interest expense                                      -              -              -      (1,536,465)     (1,536,465)General and administrative                     (140,395)       (91,343)      (140,791)       (498,192)       (870,721)                                          ---------------  -------------  -------------  -------------  ---------------Income before taxes                           1,975,140          9,139        (13,884)     (2,060,380)        (89,985)Income tax benefit                                    -              -              -          37,964          37,964                                          ---------------  -------------  -------------  -------------  ---------------Income from continuing operations             1,975,140          9,139        (13,884)     (2,022,416)        (52,021)Income from discontinued operations             373,361              -              -        (315,570)         57,791                                          ---------------  -------------  -------------  -------------  ---------------Net income                                 $  2,348,501    $     9,139     $  (13,884)    $(2,337,986)   $      5,770                                          ===============  =============  =============  =============  ===============Capital investments                        $    359,369    $ 3,662,232     $        -     $     6,593    $  4,028,194                                          ===============  =============  =============  =============  ===============Total real estate assets                   $  1,520,687    $ 1,986,964     $        -     $   (33,458)   $  3,474,193                                          ===============  =============  =============  =============  ===============                                                             Commercial    Third PartySix months ending June 30, 2002             Apartments        and Land       Services       Corporate      Consolidated                                          ---------------  -------------  -------------  -------------  ---------------Real estate rental revenue                 $  7,897,731    $   192,038     $        -     $         -    $  8,089,769Real estate expense                          (2,833,311)      (146,339)             -               -      (2,979,650)Depreciation and amortization                (1,161,233)      (104,254)             -        (126,762)     (1,392,249)                                          ---------------  -------------  -------------  -------------  ---------------Income from real estate                       3,903,187        (58,555)             -        (126,762)      3,717,870Other income                                          -        673,243        203,184          10,166         886,593                                          ---------------  -------------  -------------  -------------  ---------------Segment income                                3,903,187        614,688        203,184        (116,596)      4,604,463Interest expense                                      -              -              -      (2,785,612)     (2,785,612)General and administrative                     (542,500)      (208,632)      (326,916)     (1,028,866)     (2,106,914)                                          ---------------  -------------  -------------  -------------  ---------------Income before taxes                           3,360,687        406,056       (123,732)     (3,931,074)       (288,063)Income tax benefit                                    -              -              -         105,699         105,699                                          ---------------  -------------  -------------  -------------  ---------------Income from continuing operations             3,360,687        406,056       (123,732)     (3,825,375)       (182,364)Income from discontinued operations           5,496,761              -              -      (2,218,174)      3,278,587                                          ---------------  -------------  -------------  -------------  ---------------Net income                                 $  8,857,448    $   406,056     $ (123,732)    $(6,043,549)   $  3,096,223                                          ===============  =============  =============  =============  ===============Capital investments                        $    376,097    $ 6,655,085     $        -     $    21,673    $  7,052,855                                          ===============  =============  =============  =============  ===============Total real estate assets                   $ 78,782,797    $26,745,929     $        -     $   185,988    $105,714,714                                          ===============  =============  =============  =============  ===============                                                             Commercial    Third PartySix months ending June 30, 2001             Apartments        and Land       Services       Corporate     Consolidated                                          ---------------  -------------  -------------  -------------  ---------------Real estate rental revenue                 $  8,074,569    $   145,892     $        -     $         -    $  8,220,461Real estate expense                          (2,844,276)      (192,181)             -               -      (3,036,457)Depreciation and amortization                (1,028,549)      (104,254)             -        (120,718)     (1,253,521)                                          ---------------  -------------  -------------  -------------  ---------------Income from real estate                       4,201,745       (150,543)             -        (120,718)      3,930,483Other income                                     35,000        361,777        218,884          94,749         710,410                                          ---------------  -------------  -------------  -------------  ---------------Segment income                                4,236,745        211,234        218,884         (25,969)      4,640,893Interest expense                                      -              -              -      (3,026,640)     (3,026,640)General and administrative                     (386,854)      (184,884)      (247,900)       (918,767)     (1,738,405)                                          ---------------  -------------  -------------  -------------  ---------------Income before taxes                           3,849,891         26,350        (29,016)     (3,971,376)       (124,152)Income tax benefit                                    -              -              -          50,940          50,940                                          ---------------  -------------  -------------  -------------  ---------------Income from continuing operations             3,849,891         26,350        (29,016)     (3,920,436)        (73,212)Income from discontinued operations             717,181              -              -        (616,627)        100,554                                          ---------------  -------------  -------------  -------------  ---------------Net income                                 $  4,567,072    $    26,350     $  (29,016)    $(4,537,063)   $     27,342                                          ===============  =============  =============  =============  ===============Capital investments                        $    707,374    $ 8,766,116     $        -     $    27,277    $  9,500,767                                          ===============  =============  =============  =============  ===============Total real estate assets                   $ 85,382,351    $22,772,857     $        -     $   281,315    $108,436,523                                          ===============  =============  =============  =============  ===============
Form 10-Q - Part I. Financial InformationItem 2.

**Merry Land Properties, Inc.                            MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION                                             AND RESULTS OF OPERATIONS**

**Recent Events**

          As part of Merry Land's continuing program of disposing of properties that do not meet its investmentcriteria, we have agreed to sell *Summit Place*, a 226 unit apartment community in Charleston. This sale, ifconsummated, would result in a recognition of gain and a corresponding increase in our net book value, but wouldreduce net rental income generated from apartments until the proceeds could be reinvested in other incomeproducing properties.
**Apartments**

          At June 30, 2002 Merry Land owned or had an interest in 2,043 apartment units in nine communities and164 completed units from two communities under construction. These communities are described in the followingtable.                                                                  Six months ended June 30,                                                    --------------------------------------------------------                                                       Average Occupancy (1)        Average Rental Rate (2)                                                    --------------------------    --------------------------                    Community               Units       2002           2001            2002          2001         ------------------------------  ---------  ------------   -----------    ------------   -----------         Wholly Owned Communities         Quarterdeck                          230        94%            97%          $  778        $  774         Summit Place                         226        95%            97%             545           562         Waters Edge                          200        98%            96%             639           665         Merritt at James Island (3)          139        87%           100%           1,034           969         Windsor Place                        224        96%            97%             646           658                                         ---------  ------------   -----------    ------------   -----------           Total-Charleston                 1,019        95%            97%             705           685         Greentree                            194        96%            97%             669           652         Hammocks at Long Point               308        96%            97%             899           870         Huntington                           147        98%            96%             677           665         Merritt at Whitemarsh (4)             25         0%             -              907             -         Marsh Cove                           188        96%            96%             785           738                                         ---------  ------------   -----------    ------------   -----------           Total-Savannah                     862        97%            96%             785           754           Total-wholly owned               1,881        95%            97%          $  741        $  711         Joint Venture Communities         Cypress Cove (5)                     326        79%            98%          $  791        $  767                                         ---------  ------------   -----------    ------------   -----------           Total-joint venture                326        79%            98%          $  791        $  767           Total-all                        2,207        93%            97%          $  748        $  719
(1)      The average physical occupancy at each month end for the period held.(2)     The weighted average monthly rent charged for occupied owned units and rentsasked for unoccupied owned units at June 30.(3)     Community under construction with 139 of the 230 total units placed in service.(4)     Community under construction with 25 of the 241 total units placed in service.(5)     Merry Land holds a 10% interest in this apartment community.

**Results of Operations for the Six Months Ended June 30, 2002 and 2001**

          *Rental Operations-All Apartments.* The following table describes the operating performance of MerryLand's wholly owned apartment communities including both *West Wind* apartments and *Magnolia Villa* apartments whichwere sold in March 2002 and also *Woodcrest* apartments which was sold in August 2001. (Dollars in thousands,except average monthly rent)                                                                                   Six months ended June 30,                                                      %          Change from      ----------------------------                                                   Change        2000 to 2001          2002           2001                                                -------------- -----------------  -------------  -------------         Rental income                               (11)%         $(1,040)          $ 8,464       $ 9,504         Operating expenses                           (8)%            (269)            3,095         3,364         Depreciation                                 (2)%             (26)            1,195         1,221                                                -------------- -----------------  -------------  -------------         Total expenses                               (6)%            (295)            4,290         4,585         Operating income after depreciation         (15)%         $  (745)          $ 4,174       $ 4,919         Average occupancy (1)                           -            (0.8)%            95.7%         96.5%         Average monthly rent (2)                     4.3%         $    30           $   741       $   711         Expense ratio (3)                               -             0.4 %            35.0%         34.6%
(1)      Represents the average physical occupancy at each month end for the period held.         (2)      Represents weighted average monthly rent charged for occupied units and rents asked for                  unoccupied units at June 30.         (3)      Represents total operating expenses divided by rental revenues.

          Operating income after depreciation for the second quarter 2002 totaled $1.9 million, down $600 thousandfrom $2.5 million in 2001. In the second quarter of 2002, rental income decreased 17% to $4.0 million from $4.8million in 2001 and operating expense decreased 11% to $1.5 million from $1.7 million. These decreases wereprimarily due to the sale of the three apartment communities but were offset by additional net income from theunits placed in service at the *Merritt at James Island* development.
          Operating income after depreciation from both *West Wind* and *Magnolia Villas* totaled $271 thousand forthe first six months in 2002 and $718 thousand, in 2001. Rental income for these two communities was $566thousand in 2002 and $1.4 million in 2001. Operating income after depreciation from *Woodcrest* was $448 thousandfor the first six months in 2001 on rental income of $784 thousand and operating expenses of $272 thousand.
          Construction continues slowly at *Merritt at James Island* in Charleston where we have received 175 of the230 units at the end of July 2002. Construction on this $17.9 million community is expected to complete by falland the demand for these units continues to be strong. Operating income after depreciation for the first sixmonths in 2002 was $215 thousand on gross rents of $633 thousand and operating expenses of $266 thousand.
          Construction at *Merritt at Whitemarsh Island* in Savannah is moving along somewhat more rapidly, and wehave recently received our clubhouse and 50 apartment units. The total construction cost will be approximately$19.8 million and should be completed by January 2003.
          *Rental Operations-Same Store Apartments.*The following table compares the performance of the 1,717 unitsof our eight wholly owned residential communities which we owned for the first six months of both 2002 and 2001.("same store" results) (Dollars in thousands, except average monthly rent; see footnotes above)                                                                                Six months ended June 30,                                                    %         Change from    -------------------------------                                                  Change      2001 to 2002        2002             2001                                                ----------  ---------------  --------------  ---------------         Rental income                             (0)%         $  (36)        $ 7,236          $ 7,272         Personnel                                 (9)%            (70)            746              816         Utilities                                (16)%            (35)            185              221         Operating                                  9 %             21             262              241         Maintenance and grounds                    4 %             21             530              509         Taxes and insurance                       12 %             84             812              728         Depreciation                               5 %             45           1,010              965                                                ----------  ---------------  --------------  ---------------         Total expenses                             2 %             65           3,545            3,480         Operating income after depreciation       (3)%         $ (101)        $ 3,691          $ 3,792         Average occupancy (1)                      -             (0.3)%          96.3%            96.6%         Average monthly rent (2)                   1 %         $    7         $   715          $   709         Expense ratio (3)                          -              0.6 %          35.0%            34.6%
          Same store operating income before depreciation for the first six months in 2002 was down 1.2% onrevenue decline of 0.5% and an increase in operating expenses by 0.8%. Occupancy at June 30, 2002 was 96.0%, downfrom 96.9% a year ago. We continue to feel the effects of a weakening national economy and reduced demand forapartments. Income growth is expected to remain modest for the rest of this year, with the higher insurance andoperating costs offsetting gains from increased revenues later this year.
          Operating income for Charleston was down 2.8% on a revenue decrease of 1.7% and an increase in operatingexpenses by 0.2%. The decrease in revenue was due to a 1.8% decrease in average monthly rent and 0.5% drop inaverage occupancy.
          Operating income for Savannah remained flat on a revenue increase of 0.7% and operating expense increaseof 1.4%. The average monthly rent increased by 3.6% while its average occupancy dropped 0.2%.
          *Rental Operations-Commercial.* The company owns three commercial properties in the Augusta area whoseoverall occupancy was approximately 80% at June 30, 2002. In March, we relocated our corporate offices from theEllis Street office building to the newly renovated space in our *Leonard Building,* also in downtown Augusta.
          Operating income before depreciation was $73 thousand in 2002 compared to breakeven in 2001. Theincrease is primarily due to the new lease on our Ellis Street building.
          *Land.* We own 4,131 acres of unimproved land, of which 2,948 acres are subject to clay and sand miningleases. At the end of last year, we established a 392 acre wetlands mitigation bank within our 2,848 acre*Brickyard Tract* in Augusta, which permanently sets aside this area as a wildlife and ecological preserve. In thesecond quarter of 2002 we sold 95 of the 129 currently available mitigation credits for a total of $189 thousand;recognizing a gain of $126 thousand. Additional credits will become available for sale upon the completion ofspecified improvements to the property.
          Other land income, for the most part mineral royalties, was $283 thousand for the first six months in2002 down slightly from $291 thousand in 2001.
          *Property Management Fees.* Management fee income decreased slightly in the first six months of 2002 to$203 thousand from $219 thousand the same period in 2001. The total units managed were 1,316 at the end of thesecond quarter 2002, down 745 units from 2,061 units in 2001.
          *Development Fees.* Development fee income was $112 thousand for the first half 2002, up from $20 thousandin 2001.
          *Sale of Land.* In January 2002, we sold a 5.7-acre tract of land from the *Brickyard Tract* in Augusta for$103 thousand, recognizing a pretax gain of $99 thousand.
          *Sale of Condominium.* We have sold six out of the seven condominium units at *214 Calhoun Street* inCharleston; four units in 2001 and two units in the second quarter of 2002. Total sales proceeds have been $1.7million, and we have recognized cumulative pretax gains of $283 thousand.
          *Interest Expense.* Total interest expense decreased $577 thousand to $3.0 million for the first sixmonths in 2002, from $3.6 million in 2001. The increase in construction loan interest was more than offset by theincrease in interest capitalized related to our developments and by the decrease in mortgage interest expenseresulting from the sale of the Woodcrest apartments in August 2001 and both the *West Wind Landing* and *MagnoliaVillas* apartments in March 2002. The term loan was paid off in December 2001. (Dollars in thousands for thefollowing table)                                                                                 Six months ended June 30,                                                          Change from        ----------------------------------                                                          2001 to 2002            2002                2001                                                         ----------------    --------------      --------------         Term loan                                          $  (67)            $     -             $    67         Construction loans                                    385                 707                 322         Mortgage loans                                       (277)              2,794               3,071                                                         ----------------    --------------      --------------         Total interest cost                                    41               3,501               3,460         Capitalized for development                          (282)               (716)               (434)                                                         ----------------    --------------      --------------         Interest expense-continuing operations               (241)              2,785               3,026         Mortgage loans-discontinued operations               (336)                208                 544                                                         ----------------    --------------      --------------         Total interest expense                             $ (577)            $ 2,993             $ 3,570
          *General and Administrative Expenses.* General and administrative expenses increased 21% to $2.1 millionfor the first six months of 2002 from $1.7 million in 2001 primarily due to a greater number of corporateemployees and an increase in third party management costs.
          *Loss From Continuing Operations Before Taxes.* The loss from continuing operations before taxes increasedto $288 thousand for the first six months in 2002 from a $124 thousand loss for 2001. While net rental incomeremained flat ( rental income less rental, depreciation and interest expense), the $226 thousand increase ingains from the sale of land and mitigation credits and the $76 thousand increase in development and managementfee income were more than offset by the $368 thousand increase in corporate administrative expense and the $98thousand decrease in interest and other income.
          *Income From Discontinued Operations.* On March 12, 2002, Merry Land sold both *Magnolia Villas* and *WestWind* apartments, located in Savannah, for a total of $16.4 million, recognizing a pretax gain of $5.2 million.Their total cost was $13.1 million and they had a net book value of $10.9 million. Their total net income afterinterest and income taxes was $37 thousand and $101 thousand for the first six months in 2002 and 2001,respectively.
          *Funds From Operations.* For the first six months of 2002 funds from operations totaled $1.2 million downfrom $1.5 million in 2001. The reduction in FFO was due primarily to the sale of *Woodcrest* in August 2001 andboth *West Wind Landing* and *Magnolia Villas* in March 2002. (Dollars in thousands)                                                                             Six months ended June 30,                                                                         ---------------------------------                                                                             2002               2001                                                                         -------------     ---------------          Loss from continuing operations                                 $  (182)             $  (73)          Add: depreciation of real estate owned                            1,303               1,177          Add: tax benefit resulting from permanent difference in               book and tax basis                                             104                  93          Less: gain on sale of land, net of tax effect                       (61)                  -                                                                         -------------     ---------------               Funds from continuing operations                             1,164               1,197         Income from discontinued operations                                3,278                 101         Add: depreciation of real estate owned                                33                 192         Less: gain on sale of apartments, net of tax effect               (3,241)                  -                                                                         -------------     ---------------         Funds from discontinued operations                                    70                 293         Total funds from operations                                      $ 1,234              $1,490                                                                         =============     ===============         Weighted average common shares outstanding-               Basic                                                        2,351               2,281               Diluted                                                      2,534               2,434
          The company believes that funds from operations are an important measure of its operating performance.Funds from operations do not represent cash flows from operations as defined by accounting principles generallyaccepted in the United States, GAAP, and should not be considered as an alternative to net income, or as anindicator of the company's operating performance, or as a measure of the company's liquidity. The company definesfunds from operations as net income computed in accordance with GAAP, excluding non-recurring items and netrealized gains (losses), plus depreciation of operating real estate.
          *Financial Structure.* We use debt to finance most of our acquisitions and development activities and, asa result, are a highly leveraged company. At June 30, 2002 total debt equaled 83% of total capitalization at costand 78% of total capitalization with equity valued at market. (2,739,685 shares outstanding at the June 30, 2002closing price of $9.96 per share). (Dollars in thousands)                                        Equity at                     Equity at                                           Book          % of           Market         % of                                          Value          Total          Value          Total                                      --------------  -----------  ---------------  ------------          Construction loan              $ 23,084         20%          $ 23,084         19%          Mortgage loans                   71,078         63%            71,078         59%                                      --------------  -----------  ---------------  ------------          Total debt                       94,162         83%            94,162         78%          Common stock                     18,885         17%            27,287         22%                                      --------------  -----------  ---------------  ------------          Total capitalization           $113,047        100%          $121,449        100%                                      ==============  ===========  ===============  ============
          *Liquidity.* We expect to meet our short-term liquidity requirements with working capital, cash providedby operating activities, lines of credit, construction loans, and the possible sale of land, apartments, or otherassets. Our primary short-term liquidity needs include operating expenses, capital improvements, and thecompletion of the *Merritt at Whitemarsh* and the *Merritt at James Island* development communities. A weak nationaleconomy might continue to affect cash generated by our stabilized communities.
          We expect to meet our long-term liquidity requirements from a variety of sources including operatingcash flow, additional mortgage loans and other borrowings, the possible sale of apartment communities and otherassets and the issuance and sale of debt and equity securities in public and private markets. Our long termliquidity needs include the maturity of the mortgage and term loan debt and the financing of acquisitions anddevelopment.
          *Cash Flows.* Cash and cash equivalents totaled $4.9 million at June 30, 2002, up $1.3 million from $3.6million at December 31, 2001. Net cash provided by continuing operations was $1.3 million but we used anadditional $1.2 million for capital improvements on existing properties and for renovating our new corporateoffice. Merry Land also received $2.9 million as a result of the sale of *West Wind and *Magnolia Villas.* We spent$1.5 million net of construction loans on the existing developments and acquired the *Central Park* developmentland for $825 thousand. We also received $102 thousand from the sale of clay land and a net $500 thousand fromnet mortgage loan proceeds and escrow repayments.
          *Critical Accounting Policies.* A critical accounting policy is one which is both important to theportrayal of a company's financial condition and results and requires significant judgment or complex estimationprocesses.  As Merry Land is in the business of developing, owning and managing apartment properties, ourcritical accounting policies relate to cost capitalization, depreciation and amortization, and impairment oflong-lived assets.
          We expense pre-development costs incurred on a potential project until it becomes probable that theproject will go forward.  After a project becomes probable, all subsequently incurred predevelopment costs arecapitalized.  If the decision is made to not commence development of a project that had been deemed probable, allpreviously capitalized predevelopment costs are expensed.  Once development of the project commences, Merry Landcapitalizes interest, real estate taxes, and certain internal personnel and associated costs directly related tothe project under development and construction based on the portion of theproject which remains under construction.
          When a project is completed and placed in service, it is depreciated on a straight-line basis over itsestimated useful life. Projects are depreciated over 5 to 50 years. As required by generally accepted accountingprinciples, Merry Land periodically evaluates its real estate assets to determine if there has been anyimpairment in their carrying values and records impairment losses if the undiscounted cash flows estimated to begenerated by those assets are less than the assets' carrying amounts or there are other indicators ofimpairment.  At June 30, 2002, Merry Land did not own any real estate assets that were impaired.
          *Inflation.* Substantially all of our leases are for terms of one year or less, which should enable us toreplace existing leases with new leases at higher rental rates in times of rising prices. We believe that thiswould offset the effect of cost increases stemming from inflation.
          *Forward Looking Statements.* This filing includes statements that are "forward looking statements" withinthe meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934regarding expectations with respect to market conditions, development projects, acquisitions, occupancy rates,capital requirements, sources of funds, expense levels, operating performance, and other matters. Theseassumptions and statements are subject to various factors, unknown risks and uncertainties, including generaleconomic conditions, local market factors, delays and cost overruns in construction, completion and rent up ofdevelopment communities, performance of consultants or other third parties, environmental concerns, and interestrates, any of which may cause actual results to differ from the company's current expectations.
Form 10-Q - Part I. Financial InformationItem 3.
Merry Land Properties, Inc.                            QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
 

There have been no significantchanges to the company's reported market risk since December 31, 2001.
Form 10-Q - Merry Land Properties, Inc.PART II. OTHER INFORMATION
Item 1.   Legal Proceedings
            None
Item 2.   Changes in Securities and Use of Proceeds
            None
Item 3.   Defaults Upon Senior Securities
            None
Item 4.   Submission of Matters to a Vote of Security Holders
                        At the company'sAnnual Meeting of Shareholders held April 18, 2002, the following vote totals were recorded:
                        1.     Election of Director: Shares voted - 2,425,850 ForAgainstAbstainW. Tennent Houston2,425,8502,23,8400
                        In addition to Mr. Houston, the following Directors continued in                        office following the meeting: Michael N. Thompson, Jefferson B.A. Knox, David                        W. Cobb, and Stewart R. Speed.
Item 5.   Other Information
            None
Item 6.  Exhibits and Reports on Form 8-K         a.       Exhibits:                  (3.i)   Articles                  of Incorporation, as amended by Articles of Amendment to Articles of                  Incorporation re Series A Redeemable Cumulative Preferred Stock (incorporated                  herein by reference to Exhibit 3(i) to the company’s Annual Report on Form                  10-K filed March 31, 2000, file number 000-29778).                  (3.ii)   By-laws,                  as amended on January 28, 1999, (incorporated herein by reference to Exhibit                  3(ii) of Item 14 to the company’s Annual Report on Form 10-K for the year                  ended December 31, 2000).                  (99.1)   Certification of Periodic Financial Report         b.       The registrant filed no form 8K reports during the second quarter of 2002.
Form 10-Q - Merry Land Properties, Inc.
SIGNATURES

Pursuant to therequirements of the Securities Exchange Act of 1934, the registrant has dulycaused this report to be signed on its behalf by the undersigned, thereunto dulyauthorized. 

MERRY LAND PROPERTIES, INC.
/s/ Dorrie E. Green    Dorrie E. Green    Vice President and    Chief Financial Officer
August 13, 2002**