<PAGE>

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

                                    FORM 10-Q

                QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                                       OF
                       THE SECURITIES EXCHANGE ACT OF 1934
                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2005

                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: 000-23463

                       PHILIPS INTERNATIONAL REALTY CORP.
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


               MARYLAND                                 13-3963667
     (STATE OR OTHER JURISDICTION OF                   (IRS EMPLOYER
      INCORPORATION OR ORGANIZATION)                 IDENTIFICATION NO.)

                295 MADISON AVENUE, 2ND FLOOR, NEW YORK, NY 10017
               (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES - ZIP CODE)

                          (212) 545-1100 (REGISTRANT'S
                     TELEPHONE 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 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 |_|

Indicateby check mark whether the registrant is an accelerated filer (as defined
in Rule 12b-2 of the Exchange Act) YES |_| NO |X|

Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date: 7,340,474 shares outstanding as
of April 30, 2005.


<PAGE>

                       PHILIPS INTERNATIONAL REALTY CORP.
                                    FORM 10-Q
                                      INDEX

<TABLE>
<CAPTION>

PART I     FINANCIAL INFORMATION                                                            Page
------     ---------------------                                                            ----
<S>        <C>                                                                              <C>

           Item 1.    Financial Statements:

                      Consolidated Statements of Net Assets in Liquidation as of
                      March 31,2005 and December 31, 2004                                        3

                      Consolidated Statements of Changes in Net Assets in Liquidation for
                      the Three Months ended March 31, 2005 and 2004.                            4

                      Notes to Consolidated Financial Statements                              5-10

           Item 2.    Management's Discussion and Analysis of Financial Condition and
                      Results of Operations                                                     11


           Item 3.    Quantitative and Qualitative Disclosures About Market Risk                11

           Item 4.    Controls and Procedures                                                   11

PART II    OTHER INFORMATION
-------    -----------------

           Item 1.    Legal Proceedings                                                         12

           Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds               12

           Item 3.    Defaults Upon Senior Securities                                           12

           Item 4.    Submission of Matters to a Vote of Security Holders                       12

           Item 5.    Other Information                                                         12

           Item 6.    Exhibits                                                                  12

SIGNATURES                                                                                      13
</TABLE>


                                       2
<PAGE>

                                     PART I
                              FINANCIAL INFORMATION


ITEM 1.  FINANCIAL STATEMENTS


                       Philips International Realty Corp.
                           (In Process of Liquidation)
              Consolidated Statements of Net Assets in Liquidation

                                   (Unaudited)


<TABLE>
<CAPTION>
                                                          MARCH 31,          DECEMBER 31,
                                                            2005                2004
                                                         -----------         ------------
<S>                                                      <C>                  <C>

ASSETS (Liquidation Basis)
            Cash and cash equivalents                    $  284,820           $  274,637
            Prepaid expenses                                 22,786               23,608
            Other assets                                    175,000              175,000
                                                         ----------           ----------
                                                            482,606              473,245
                                                         ----------           ----------

LIABILITIES (Liquidation Basis)
            Accounts payable and accrued expenses          (123,594)             (83,411)
            Accrual for liquidation expenses               (120,000)            (150,000)
                                                         ----------           ----------
                                                           (243,594)            (233,411)
                                                         ----------           ----------

MINORITY INTERESTS
            (Liquidation Basis)                                 (32)                 (35)
                                                         ----------           ----------

COMMITMENTS AND CONTINGENCIES

NET ASSETS IN LIQUIDATION                                $  238,980           $  239,799
                                                         ===========          ==========
</TABLE>


                             SEE ACCOMPANYING NOTES.


                                       3
<PAGE>

                       Philips International Realty Corp.
                           (In Process of Liquidation)
                      Consolidated Statements of Changes in
                            Net Assets in Liquidation

                                   (Unaudited)

<TABLE>
<CAPTION>
                                                            Three Months Ended March 31,
                                                           ------------------------------
                                                              2005              2004
                                                            --------         ----------
<S>                                                         <C>              <C>

Net Assets in Liquidation, December 31, 2004 and 2003       $239,799         $2,816,782

Increases (decreases) during the period:
            Interest income                                        -              2,347
            Amortization of prepaid insurance                   (822)           (13,947)
            Minority interests                                     3                 39
                                                            --------         ----------


Net Assets in Liquidation, March 31, 2005 and 2004          $238,980         $2,805,221
                                                            ========         ==========
</TABLE>


                             SEE ACCOMPANYING NOTES.


                                       4
<PAGE>

                       Philips International Realty Corp.
                           (In process of Liquidation)
                 Notes to the Consolidated Financial Statements


1. BUSINESS
   --------

Philips International Realty Corp. (the "Company") is a real estate investment
trust ("REIT") originally formed to continue and expand the shopping center
business of certain affiliated companies owned or controlled by Philip Pilevsky
(the "Philips Group"). The Philips Group had been engaged for many years in the
ownership, development and acquisition for redevelopment of neighborhood and
community shopping centers predominantly concentrated in the greater New York
and Miami metropolitan areas.

On October 13, 1999, the Board of Directors of the Company announced that it had
retained a financial advisor to assist the Company in examining strategic
alternatives to maximize shareholder value. The Board of Directors believed that
the Company's then current stock price did not reflect the underlying value of
its assets. Given the changing dynamics of the REIT market place and consistent
with its commitment to realize shareholder value for all investors, the Board
believed that it was prudent to explore the strategic alternatives for the
Company.

At a Special Meeting of Stockholders held on October 10, 2000, approximately 80%
of the Company's 7,340,474 common shares outstanding were voted, with 99.7% of
these votes cast, in favor of a plan of liquidation.

The plan of liquidation approved by stockholders generally provided for (i) the
disposition of the Company's real estate properties for cash, the assumption of
indebtedness and/or the redemption of certain equity interests in the Company,
(ii) payment or provision for the Company's liabilities, (iii) distribution of
the net cash proceeds, then estimated at $18.25 per share of common stock, to
stockholders in two or more liquidating distributions, and (iv) the wind-up of
operations and dissolution of the Company.

The Company completed the disposition of the last of its real estate properties
on December 12, 2003, and has distributed to date $18.10 per share in cash to
its stockholders. This has been achieved through a series of ten property sales
and/or redemption transactions, and ten liquidating distributions as more fully
described in Note 2 below.

The Company filed a Current Report on Form 8-K, dated January 7, 2004, to report
that notwithstanding (i) the weak economic environment since adoption of the
Plan of Liquidation in October 2000 had depressed retail rents and real property
values, and (ii) the Company had to contend with the Kmart Chapter 11 bankruptcy
proceedings in seeking to divest many of its shopping center properties in which
this troubled retailer was the anchor tenant, the Company expected total
distributions to shareholders would be within 1% of the originally projected
total $18.25 per share.

On December 17, 2004, the Company announced that the amount and timing of any
future distributions to shareholders, which in the aggregate are unlikely to
exceed $0.05 per share, remain subject to (i) the Company's realization of
certain claims for refund of real estate and transfer taxes paid, and (ii) the
costs incurred to complete all wind-down activities and dissolve the
corporation. Assuming the prompt receipt of these refunds, the Board of
Directors anticipates that it may commence the winding-down and dissolution of
the corporation and a final liquidating distribution within the next several
months.


                                       5
<PAGE>

2. PLAN OF LIQUIDATION
   -------------------

The following is a chronology of the events, which have transpired to date
pursuant to the plan of liquidation approved by stockholders on October 10,
2000.


In November 2000, the Company completed the distribution of its interest in four
shopping center properties in Hialeah, Florida and the sale of its interest in
one redevelopment site (1517-25 Third Avenue, New York City) for total
consideration of approximately $123 million to former unit holders in the
Operating Partnership, including Philip Pilevsky, the Company's Chairman and
Chief Executive Officer, (collectively, the "Related Limited Partners") ("The
Hialeah Agreements"). The total consideration was comprised of $3.3 million in
cash, $85.3 million in mortgage debt assumption and $34.1 million in redemption
of the Related Limited Partners' entire equity interest in the Operating
Partnership (1,870,873 Units valued at $18.25 per Unit). These transactions
resulted in a gain of approximately $24.4 million, net of $9.3 million of
minority interest.

On December 4, 2000, certain affiliates of the Company disposed of interests in
eight properties aggregating approximately 1,178,000 square feet to Kimco Income
Operating Partnership, L.P. ("Kimco") for a total consideration of $137 million
pursuant to an Asset Contribution, Purchase and Sale Agreement dated as of April
28, 2000. The purchase price was comprised of approximately $71.1 million in
cash, $55.4 million in mortgage debt assumption and $10.5 million of equity
redemption (576,326 Operating Partnership Units valued at $18.25 per Unit). The
properties included four New York shopping centers (Forest Avenue Shoppers Town,
Meadowbrook Commons, Merrick Commons and Mill Basin Plaza), two Connecticut
shopping centers (Branhaven Plaza and Elm Plaza), one shopping center property
in New Jersey (Millside Plaza) and one shopping center property in Massachusetts
(Foxboro Plaza). The disposition of these properties resulted in a gain of
approximately $17.4 million net of $6.6 million in minority interest.

On June 14, 2001, the Company completed the sale of its redevelopment site
located in Lake Worth, Florida (the "Lake Worth Property") to the Related
Limited Partners, for approximately $7.6 million in cash, pursuant to an Amended
and Restated Purchase and Sale Agreement dated as of June 20, 2000 (the "Lake
Worth Agreement"). The sale of this property resulted in a gain of approximately
$.3 million.

The purchase price paid by the Related Limited Partners under the Lake Worth
Agreement will be adjusted, up or down, so that the aggregate value per Unit
received by them in connection with the distribution to the Related Limited
Partners of the Company's four shopping center properties located in Hialeah,
Florida and the sale to the Related Limited Partners in December 2000 of the
Company's redevelopment property located on Third Avenue in New York, New York
($18.25 per share), and the total per share value received by the Company's
stockholders in the liquidation, will be the same. The Related Limited Partners
have paid $243,000 to the Company to date in respect of this purchase price
adjustment obligation.

On August 31, 2001, the Company completed the sale of its North Star Shopping
Center in Alexandria, Minnesota for approximately $4.5 million pursuant to the
Sale and Purchase Agreement dated July 16, 2001 by Philips Shopping Center Fund
L.P., a Delaware limited partnership, as Seller, and Repco LLP, as successor to
Kordel, Inc., a Minnesota corporation, as Buyer. The sale resulted in a gain of
approximately $4,000.

On October 31, 2001, the Company completed the sale of its Highway 101 Shopping
Center in Port Angeles, Washington for approximately $4.5 million in cash,
pursuant to the Sale and Purchase Agreement dated June 14, 2001 by Philips
Shopping Center Fund L.P., a Delaware limited partnership, as Seller, and BDG
LLC, as successor to 3 Puyallup Associates, LLC, a Washington limited liability
company, as Buyer. This sale resulted in a gain of approximately $39,000.


                                       6
<PAGE>

On January 29, 2002, the Company announced that Kmart Corporation's ("Kmart")
Chapter 11 bankruptcy filing was likely to delay the sales of the Company's then
five remaining properties pursuant to the Company's plan of liquidation, and
might result in a reduction of the remaining projected liquidating distributions
of $3.00 per common share. Further, the Company reported that Kmart leased a
significant portion of the space in each of the Company's then five remaining
shopping center properties, of which four stores were currently operating and
one Kmart store in Reedley, California was closed. While operating in
bankruptcy, Kmart announced that it would seek immediate cancellation of leases
at closed locations. As a result of the uncertainty pertaining to the ultimate
status of the Kmart leases, the Company expected a delay in the completion of
its plan of liquidation. Also, the potential impact on the proceeds from sales
of the then remaining five properties could not then be evaluated.

On February 19, 2002, the Company announced that the New York Stock Exchange
(the "NYSE") had advised the Company that it may be subject to NYSE trading
suspension and delisting if the Company's average market capitalization fell
below $15 million ($2.05 per common share) over a 30-day trading period.

On March 13, 2002, the Company announced that its four properties with operating
Kmart stores (Sacramento, CA, Atwater, CA, McHenry, IL and Hopkinsville, KY)
were not affected by Kmart's recent announcement of store closings. Kmart had
been operating under the protection of Chapter 11 of the Bankruptcy Code, and
the Court approved the cancellation of the Kmart lease at the Company's then
fifth remaining property, located in Reedley, California, in January. Although
none of the Company's remaining Kmart stores was targeted for closure at such
time, there could be no assurance that Kmart would not seek to cancel additional
leases while it was in bankruptcy. Further, the Company objected to Kmart's
request for an extension of the 60-day period in which the debtor must assume or
reject the Company's leases under the Bankruptcy Code. Kmart was seeking an
extension on all remaining leases through July 2003, and the Courts generally
grant such significant extensions. As to the Company's Kmart leases, the Court
approved an agreement with Kmart whereby all leases which had not been assumed
or rejected on or before September 30, 2002 would be subject to certain
protections from October 1, 2002 through January 15, 2003, which, among other
things, precluded store closings during this period. In addition, the Court set
March 31, 2003 as the deadline for Kmart to assume or reject the Company's
leases without prejudice to Kmart's right to seek further extension.

On April 16, 2002, the Company completed the sale of its McHenry Commons
shopping center property in McHenry, Illinois for approximately $3.9 million in
cash, pursuant to a Sale and Purchase Agreement dated November 29, 2001 by and
between Philips Shopping Center Fund, L.P., a Delaware limited partnership, as
Seller, and GK Development, Inc., an Illinois corporation, and Star Realty
Investors, LLC, an Illinois limited liability company, jointly and severally as
Purchaser. This sale resulted in a gain of approximately $102,000.

On October 3, 2002, the Company completed the sale of its Kmart Shopping Center
in Sacramento, California for approximately $5.9 million in cash, pursuant to a
Purchase and Sale Agreement dated September 24, 2002 by and between Philips
Shopping Center Fund, L.P., a Delaware limited partnership, as Seller, and M&A
Gabaee L.P., a California limited partnership, Mirasa L.L.C., a California
limited liability company, and Corsair L.L.C., a Nevada limited liability
company, jointly and severally as Buyer. This transaction resulted in a gain of
approximately $118,000.

On October 8, 2002, the Company announced that it expected the New York Stock
Exchange would commence action to suspend trading and apply to delist the
Company's shares of common stock on the NYSE concurrent with payment of the
fifth liquidating distribution scheduled to be paid on October 22, 2002. If the
Company's shares ceased to be traded on the NYSE, the Company indicated it
believed that an alternative trading venue may be available; however, there
could be no assurance that such an alternative market would develop. If the
Company was delisted from the NYSE, the Company further noted that it had no
current intention to seek listing of its common shares on any other securities
exchange or on NASDAQ.


                                       7
<PAGE>

On October 28, 2002, the Company reported that the NYSE had delivered notice to
the Company and issued a press release to advise that it had determined the
common stock of the Company, trading symbol PHR, should be removed from the list
of companies traded on the NYSE. This decision was reached in view of the fact
that the Company had fallen below the NYSE's continued listing standards, as its
average global market capitalization over a consecutive 30-day period was less
than $15,000,000. Furthermore, the NYSE noted that the Company has been
operating pursuant to a plan of liquidation approved by its shareholders on
October 10, 2000 and has made four liquidating distributions totaling $15.25 as
of such date, with a fifth liquidating distribution of $0.50 to be paid on
October 22, 2002. The NYSE indicated it intended to (and did, in fact) suspend
trading in the Company's common stock prior to the opening on October 23, 2002
in connection with this distribution. Action by the NYSE with the Securities and
Exchange Commission delisting the Company's shares followed the completion of
applicable procedures. The Company did not request a review of this NYSE
determination. Upon completion of all prescribed delisting procedures, the
Company automatically became a Section 12(g) reporting company, pursuant to the
Securities and Exchange Act, and was no longer a Section 12(b) reporting
company.

On January 24, 2003, Kmart filed a plan of reorganization and related disclosure
statement with the bankruptcy court. Confirmation hearings were scheduled for
April 14 and 15, 2003. Assuming the court approved the disclosure statement and
the plan was confirmed, Kmart's filings indicated it would emerge from Chapter
11 on or about April 30, 2003. In connection therewith, Kmart filed a motion
dated February 5, 2003 with the court seeking to extend the deadline by which it
must assume or reject certain "go-forward" leases of real property from March
31, 2003 to the effective date of a plan reorganization, but no later than May
31, 2003. The Company did not object to this motion as it pertained to its
leases with Kmart at its Atwater, California and Hopkinsville, Kentucky shopping
centers.

On February 28, 2003, the Company completed the sale of its shopping center
property in Reedley, California for approximately $2.6 million in cash, pursuant
to a Purchase and Sale Agreement dated January 29, 2003 by and between Philips
Shopping Center Fund, L.P., a Delaware limited partnership, as Seller, and D&L
Lowe L.P., a California limited partnership, as Buyer. This transaction resulted
in a gain of approximately $133,000.

On April 22, 2003, Kmart announced that the bankruptcy court had approved its
plan of reorganization. Kmart subsequently emerged from Chapter 11 on May 6,
2003. The Company's leases with Kmart at its Atwater, California and
Hopkinsville, Kentucky shopping centers were assumed in connection with this
restructuring.

On August 26, 2003, the Company completed the sale of its shopping center on
Bellevue Road in Atwater, California for the price of $6.0 million in cash,
pursuant to a Purchase and Sale Agreement dated June 23, 2003 by and between
Philips Shopping Center Fund, L.P., a Delaware limited partnership, as Seller,
and Nationwide Properties, LLC, a California limited liability company, as
Buyer. This transaction resulted in a gain of approximately $549,000.

On December 12, 2003, the Company completed the sale of its shopping center on
Fort Campbell Boulevard in Hopkinsville, Kentucky for the price of $2.875
million in cash, pursuant to a Purchase and Sale Agreement dated December 4,
2003 by and between Philips Shopping Center Fund, L.P., a Delaware limited
partnership, as Seller, and Kmart Express LLC, a Michigan limited liability
company, as Buyer. This transaction resulted in a loss of approximately $44,000.
With the completion of such sale, the Company ceased all active business
operations and now exists solely to complete its liquidation.


                                       8
<PAGE>

The Board of Directors of the Company authorized liquidating distributions
generally following each of the foregoing asset dispositions as follows:

                                                          PER SHARE
            DATE PAID                                       AMOUNT

            December 22, 2000                               $13.00
            July 9, 2001                                      1.00
            September 24, 2001                                0.75
            November 19, 2001                                 0.50
            October 22, 2002                                  0.50
            March 18, 2003                                    0.50
            September 16, 2003                                1.00
            January 6, 2004                                    .50
            August 27, 2004                                    .25
            December 30, 2004                                  .10
                                                            ------
                                                            $18.10
                                                            ======

The Board of Directors of the Company is currently seeking to recover certain
real estate and transfer tax refunds totaling (as of December 31, 2004) $175,000
due from two governmental agencies. Upon collection of these tax refunds, the
Board of Directors currently intends to declare a final liquidating distribution
and then will act to dissolve the corporation. The Company collected $150,000 in
transfer tax refunds in May 2005.

3. SIGNIFICANT ACCOUNTING POLICIES
   -------------------------------

BASIS OF PRESENTATION:

         The Company adopted the liquidation basis of accounting as of December
         31, 2003. The liquidation basis of accounting is appropriate when
         liquidation appears imminent, a company can no longer be classified as
         a going concern, and the net realizable values of a company's assets
         are reasonably determinable. Under this method of accounting, assets
         and liabilities are stated at their estimated realizable value (on an
         undiscounted basis) and estimated costs of liquidating the Company are
         provided to the extent reasonably determinable.

         In adopting the liquidation basis of accounting, the Company has
         accrued what it believes are reasonable estimates of costs to liquidate
         its assets. The actual costs to liquidate the Company may differ
         significantly depending on a number of factors, including the length of
         time it takes to realize its remaining assets. Estimated costs to
         liquidate the Company are reflected in the Consolidated Statements of
         Net Assets in Liquidation as "Accrual for liquidation expenses."

         It is not presently determinable whether, upon completion of the
         liquidation, the net assets available for distribution to shareholders
         will differ materially from the amount shown in the accompanying
         financial statements as "Net Assets in Liquidation."

INTERIM FINANCIAL STATEMENTS:

         The accompanying consolidated financial statements include the accounts
         of the Company and its subsidiaries, all of which are wholly owned. All
         significant intercompany accounts and balances have been eliminated in
         consolidation. The information furnished is unaudited and reflects all
         adjustments, which are, in the opinion of management, necessary to
         reflect a fair presentation of the results for the interim periods
         presented, and all such adjustments are of a normal recurring nature.
         These consolidated financial statements should be read in conjunction
         with the financial statements included in the Company's Annual Report
         on Form 10-K for the year ended December 31, 2004.


                                       9
<PAGE>

USE OF ESTIMATES:

         The preparation of financial statements in conformity with accounting
         principles generally accepted in the United States requires management
         to make estimates and assumptions that affect the amounts reported in
         the financial statements and accompanying notes. Actual results could
         differ from these estimates.

MINORITY INTERESTS:

         The Company historically conducted substantially all of its business
         and held its real estate interests through Philips International
         Realty, L.P., a Delaware limited partnership (the "Operating
         Partnership"). This Operating Partnership was owned 74.8% by the
         Company, as General Partner, and 25.2% by unit holders, as limited
         partners. The minority interests of these limited partners were
         substantially eliminated in conjunction with the disposition of
         properties pursuant to the plan of liquidation. (See Note 2.)

4. OTHER ASSETS
   ------------

           Other assets in the Consolidated Statement of Net Assets in
           Liquidation as of March 31, 2005 and December 31, 2004 were comprised
           of certain real estate and transfer tax refunds due from two
           governmental agencies. The Company collected $150,000 in transfer tax
           refunds in May 2005.

5. COMMITMENTS AND CONTINGENCIES
   -----------------------------

LEGAL PROCEEDINGS:

         The Company has historically been subject to various legal proceedings
         and claims that arose in the ordinary course of business. These matters
         are generally covered by insurance. Management believes that the final
         outcome of such matters will not have a material adverse effect on the
         financial position or liquidity of the Company.

6. CONTRACT RIGHTS AGREEMENTS
   --------------------------

The Company had maintained a stock option plan pursuant to which a maximum
852,550 shares of the Company's Common Stock could be issued for qualified and
non-qualified options. Options granted under the Plan generally vested ratably
over a three-year term, expired ten years from the date of grant and were
exercisable at the market price on the date of grant, unless otherwise
determined by the Board of Directors in its sole discretion.

In conjunction with the Company's adoption of the plan of liquidation and the
disposal of substantially all of its shopping center properties, all options
outstanding at December 31, 2000 (705,500 shares at a weighted average exercise
price per share of $17.43) became fully vested and replaced one-for-one by a
contractual right (a "Contract Right") to receive a cash distribution on the
same basis and at the same time as liquidating distributions are made to
shareholders. The total amount to be paid on each Contract Right will equal the
total per share proceeds distributed to shareholders less the original stock
option exercise price. Contract Rights are retained after termination of
employment. The Company believes it has adequately accrued for amounts, which
may become due and payable pursuant to such Contract Rights.


                                       10
<PAGE>

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

The following discussion should be read in conjunction with the accompanying
consolidated financial statements and notes thereto, and the Company's Annual
Report on Form 10-K for the fiscal year ended December 31, 2004. These financial
statements include all adjustments, which are, in the opinion of management,
necessary to reflect a fair presentation of the results for the interim periods
presented.

When used in this Quarterly Report on Form 10-Q, the words "may", "will",
"expect", "anticipate", "continue", "estimate", "project", "intend" and similar
expressions are intended to identify forward-looking statements regarding
events, conditions and financial trends that may affect the Company's future
plans of operations, business strategy, results of operations and financial
position. Such forward-looking statements are not guarantees of future
performance and are subject to risks and uncertainties. Actual results may
differ materially from those included within the forward-looking statements as a
result of various factors.

RESULTS OF OPERATIONS:

The Company adopted the liquidation basis of accounting as of December 31, 2003.
The accompanying interim Consolidated Statements of Changes in Net Assets in
liquidation for the three month periods ended March 31, 2005 and 2004 do not
reflect any significant adjustments in net asets during the respective periods.

LIQUIDITY AND CAPITAL RESOURCES:

         The Company expects to invest temporarily available cash in short-term,
         investment-grade interest bearing securities, such as securities of the
         United States government or its agencies, high-grade commercial paper
         and bank deposits.

         The Company believes that its net cash reserves will be sufficient to
         (i) make distributions necessary to enable the Company to continue to
         qualify as a REIT, and (ii) to fund the wind-down of operations and
         dissolution of the Company. There can be no assurances, however,
         whether the total distributions to stockholders will differ materially
         from the amount shown in the accompanying Consolidated Statements of
         Net Assets in Liquidation.

OFF-BALANCE SHEET ARRANGEMENTS:

         The Company has no off-balance sheet arrangements.

CONTRACTUAL OBLIGATIONS:

         None.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
         None.


ITEM 4.  CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES.

         The Company's management, with the participation of the Company's chief
         executive officer/principal financial officer, has evaluated the
         effectiveness of the Company's disclosure controls and procedures (as
         such term is defined in Rules 13a-15(e) and 15d-15(e) under the
         Securities Exchange Act of 1934 Act, as amended (the "Exchange Act"))
         as of the end of the period covered by this report. Based on such
         evaluation, the Company's chief executive officer/principal financial


                                       11
<PAGE>

         officer has concluded that, as of the end of such period, the Company's
         disclosure controls and procedures are effective in recording,
         processing, summarizing and reporting, on a timely basis, information
         required to be disclosed by the Company in the reports that it files or
         submits under the Exchange Act.


INTERNAL CONTROL OVER FINANCIAL REPORTING.

         There have not been any changes in the Company's internal control over
         financial reporting (as such term is defined in Rules 13a-15(f) and
         15d-15(f) under the Exchange Act) during the fiscal quarter to which
         this report relates that have materially affected, or are reasonably
         likely to materially affect, the Company's internal control over
         financial reporting.


                                     PART II
                                OTHER INFORMATION




ITEM 1.  LEGAL PROCEEDINGS
         -----------------


The Company has historically been subject to various legal proceedings and
claims that arose in the ordinary course of business. These matters are
generally covered by insurance. Management believes that the final outcome of
such matters will not have a material adverse effect on the financial position
or liquidity of the Company.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
         None.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
         None.

ITEM 5.  OTHER INFORMATION
         None.

ITEM 6.  EXHIBITS

         The exhibits required by this item are set forth on the Exhibit Index
         attached hereto.


                                       12
<PAGE>

                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                       Philips International Realty Corp.




Date: May 16, 2005                     By: /s/ Philip Pilevsky
                                       ----------------------------------------
                                       Philip Pilevsky
                                       Chairman of the Board and
                                       Chief Executive Officer


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<PAGE>

                                  EXHIBIT INDEX


EXHIBIT
NUMBER                            EXHIBIT TITLE

2.1         Plan of Liquidation and Dissolution of the Company (filed as Exhibit
            2.1 to the Company's Current Report on Form 8-K dated April 28,
            2000, and incorporated herein by reference).

3.1         Amended and Restated Articles of Incorporation of the Company (filed
            as Exhibit 3.1 to the Company's Current Report on Form 8-K dated
            December 31,1997, and incorporated herein by reference).

3.2         Articles Supplementary of Series A Preferred Stock (filed as Exhibit
            3.2 to the Company's Form 8-K dated December 31, 1997 and
            incorporated herein by reference).

3.3         Articles Supplementary dated July 27, 1999, (filed as Exhibit 3.1 to
            the Company's Current Report on Form 8-K dated July 15, 1999, and
            incorporated herein by reference).

3.4         Third Amended and Restated By-Laws of the Company dated July 27,
            1999, (filed as Exhibit 3.2 to the Company's Current Report on Form
            8-K dated July 15, 1999, and incorporated herein by reference).

3.5         Form of Certificate of Common Stock (filed as Exhibit 3.4 to the
            Company's Registration Statement on Form S-11, Registration No.
            333-47975, and incorporated herein by reference).

4.1         Shareholder Rights Agreement, dated as of March 31, 1999, between
            the Company and Bank Boston, N.A. (filed as Exhibit 4.1 to the
            Company's Quarterly Report on Form 10-Q for the year ended December
            31, 1998, and incorporated herein by reference).

4.2         Amendment No. 1 dated July 27, 1999, to Shareholder Rights Agreement
            dated as of March 31, 1999 between the Company and Bank Boston N.A.,
            as Rights Agent (filed as Exhibit 4.1 to the Company's Current
            Report on Form 8-K dated July 15, 1999, and incorporated herein by
            reference).

4.3         Articles Supplementary for Series A Junior Participating Preferred
            Stock (filed as Exhibit 4.2 to the Company's Quarterly Report on
            Form 10-Q for the year ended December 31, 1998, and incorporated
            herein by reference).

10.1        Amended and Restated Agreement of Limited Partnership of the
            Operating Partnership (filed as Exhibit 10.1 to the Company's
            Registration Statement on Form S-11, Registration No. 333- 47975,
            and incorporated herein by reference).

10.2        First Amendment to the Amended and Restated Agreement of Limited
            Partnership of the Operating Partnership (filed as Exhibit 10.2 to
            the Company's Quarterly Report on Form 10-Q for the year ended
            December 31, 1998, and incorporated herein by reference).

10.3        Form of 1997 Stock Option and Long-Term Incentive Plan of the
            Company (filed as Exhibit 10.2 to the Company's Registration
            Statement on Form S-4, Registration No. 333-41431, and incorporated
            herein by reference).


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<PAGE>

10.4        Contribution and Exchange Agreement, dated August 11, 1997, among
            National Properties Investment Trust, the Board of Trustees, the
            Company, the Operating Partnership and certain contributing
            partnerships or limited liability companies associated with a
            private real estate firm controlled by Philip Pilevsky and certain
            partners and members thereof (filed as Exhibit 10.6 to the Company's
            Registration Statement on Form S-4, Registration No. 333-41431, and
            incorporated herein by reference).

10.5        Amended and Restated Management Agreement, dated as of March 30,
            1998, among the Company, the Operating Partnership and Philips
            International Management Corp. (Filed as Exhibit 10-8 to the
            Company's Form 10-Q for the year ended December 31, 1997, and
            incorporated herein by reference).

10.6        Amended and Restated Non-Competition Agreement, dated as of March
            30, 1998, among the Company, the Operating Partnership, Philip
            Pilevsky and Sheila Levine (filed as Exhibit 10.9 to the Company's
            Form 10-Q for the year ended December 31, 1997, and incorporated
            herein by reference).

10.7        Amendment No. 1 to Contribution and Exchange Agreement, dated as of
            December 29, 1997 (filed as Exhibit 10.13 to the Company's Form 8-K
            dated December 31, 1997, and incorporated herein by reference).

10.8        Employment Agreement between the Company and Louis J. Petra (filed
            as Exhibit 10.1 to the Company's Current Report on Form 8-K dated
            December 31, 1997 and incorporated herein by reference).

10.9        Employment Agreement between the Company and Sheila Levine (filed as
            Exhibit 10.2 to the Company's Current Report on Form 8-K dated
            December 31, 1997 and incorporated herein by reference).

10.10       Employment Agreement between the Company and Carl Kraus (filed as
            Exhibit 10.1 to the Company's Current Report on Form 8-K dated July
            15, 1999 and Incorporated herein by reference).

10.11       Credit Agreement among the Operating Partnership and Prudential
            Securities Credit Corporation (filed as Exhibit 10.18 to the
            Company's Report on Form 10-Q for the period ended March 31, 1998
            and incorporated herein by reference).

10.12       Purchase and Sale Agreement dated as of April 28, 2000, by and among
            Munsey Park Associates, LLC, a New York limited liability company,
            North Shore Triangle, LLC, a New York limited liability company,
            Philips Yonkers, LLC, a New York limited liability company, Philips
            Henry, LLC, a New York limited liability company, Philips Shopping
            Center Fund, L.P., a Delaware limited partnership, and Philips Lake
            Mary Associates, L.P., a Delaware limited partnership, and Kimco
            Income Operating Partnership, L.P., a Delaware limited partnership
            (filed as Exhibit 10.1 to the Company's Current Report on Form 8-K
            dated April 28, 2000, and incorporated herein by reference).

10.13       Redemption Agreement dated as of April 27, 2000, by and among the
            Operating Partnership and Philip Pilevsky (filed as Exhibit 10.2 to
            the Company's Current Report on Form 8-K dated April 28, 2000, and
            incorporated herein by reference).

10.14       Asset Contribution, Purchase and Sale Agreement dated as of April
            28, 2000, by and among the Company, the Operating Partnership,
            Certain Affiliated Parties signatory thereto, KIR Acquisition, LLC,
            a Delaware limited liability company and Kimco Income Operating
            Partnership, L.P., a Delaware limited partnership (filed as Exhibit
            10.3 to the Company's Current Report on Form 8-K dated April 28,
            2000, and incorporated herein by reference).


                                       15
<PAGE>

10.15       Amended and Restated Redemption Agreement dated as of April 27,
            2000, by and among Philips International Realty, L.P., a Delaware
            limited partnership, and Philip Pilevsky (filed as Exhibit 10.1 to
            the Company's Current Report on Form 8-K dated April 28, 2000, and
            incorporated herein by reference).

10.16       Redemption Agreement dated as of April 28, 2000, by and among
            Philips International Realty, L.P., a Delaware limited partnership,
            and Allen Pilevsky (filed as Exhibit 10.2 to the Company's Current
            Report on Form 8-K dated April 28, 2000, and incorporated herein by
            reference).


10.17       Redemption Agreement dated as of April 28, 2000, by and among
            Philips International Realty, L.P., a Delaware limited partnership,
            and Fred Pilevsky (filed as Exhibit 10.3 to the Company's Current
            Report on Form 8-K dated April 28, 2000, and incorporated herein by
            reference).

10.18       Redemption Agreement dated as of April 28, 2000, by and among
            Philips International Realty, L.P., a Delaware limited partnership,
            and SL Florida LLC, a Delaware limited liability company (filed as
            Exhibit 10.4 to the Company's Current Report on Form 8-K dated April
            28, 2000, and incorporated herein by reference).

10.19       First Amendment to Asset Contribution, Purchase and Sale Agreement
            dated as of May 31, 2000, by and among Philips International Realty,
            L.P., a Delaware limited partnership, the Company, certain
            Affiliated Parties signatory thereto, KIR Acquisition, LLC, a
            Delaware limited liability company, and Kimco Income Operating
            Partnership, L.P., a Delaware limited partnership (filed as Exhibit
            10.5 to the Company's Current Report on Form 8-K dated April 28,
            2000, and incorporated herein by reference).

10.20       Second Amendment to Asset Contribution, Purchase and Sale Agreement
            dated as of June 15, 2000, by and among Philips International
            Realty, L.P., a Delaware limited partnership, the Company, certain
            Affiliated Parties signatory thereto, KIR Acquisition, LLC, a
            Delaware limited liability company, and Kimco Income Operating
            Partnership, L.P., a Delaware limited partnership (filed as Exhibit
            10.6 to the Company's Current Report on Form 8-K dated April 28,
            2000, and incorporated herein by reference).

10.21       Third Amendment to Asset Contribution, Purchase and Sale Agreement
            dated as of June 20, 2000, by and among Philips International
            Realty, L.P., a Delaware limited partnership, the Company, certain
            Affiliated Parties signatory thereto, KIR Acquisition, LLC, a
            Delaware limited liability company, and Kimco Income Operating
            Partnership, L.P., a Delaware limited partnership (filed as Exhibit
            10.7 to the Company's Current Report on Form 8-K dated April 28,
            2000, and incorporated herein by reference).

10.22       Amended and Restated Purchase and Sale Agreement dated as of June
            20, 2000, by 1517-25 Third, L.P., a New York limited partnership,
            Philip Pilevsky, SL Florida LLC, a Delaware limited liability
            company, Allen Pilevsky and Fred Pilevsky (filed as Exhibit 10.8 to
            the Company's Current Report on Form 8-K dated April 28, 2000, and
            incorporated herein by reference).

10.23       Amended and Restated Purchase and Sale Agreement dated as of June
            20, 2000, by Philips International Realty, L.P., a Delaware limited
            partnership, Philips Lake Worth Corp., a New York corporation, and
            Philip Pilevsky (filed as Exhibit 10.9 to the Company's Current
            Report on Form 8-K dated April 28, 2000, and incorporated herein by
            reference).


                                       16
<PAGE>

10.24       Amendment to Amended and Restated Purchase and Sale Agreement dated
            as of April 4, 2001, by and between the Company, Philips Lake Worth
            Corp., a New York corporation, and Philip Pilevsky filed as Exhibit
            10.24 to the Company's Annual Report on Form 10-K for the year ended
            December 31, 2000, and incorporated herein by reference).

10.25       Stipulation and Order Providing For Voluntary Dismissal dated July
            22, 2004 in the matter of the Zemel Family Trust on behalf of
            itself, and a class of persons similarly situated against the
            Company and its directors (filed as Exhibit 10.25 to the Company's
            Quarterly Report on Form 10-Q for the quarter ended June 30, 2004,
            and incorporated herein by reference).

16.1        Letter from Ernst & Young LLP to the Company dated July 20, 2004
            (filed as Exhibit 16.1 to the Company's Quarterly Report on Form
            10-Q for the quarter ended June 30, 2004 and incorporated herein by
            reference).

31.1*       Certification of the Company's Chief Executive Officer and principal
            financial officer, Philip Pilevsky, pursuant to Section 302 of the
            Sarbanes-Oxley Act of 2002.

32.1*       Certification of the Company's Chief Executive Officer and principal
            financial officer, Philip Pilevsky, pursuant to Section 906 of the
            Sarbanes-Oxley Act of 2002.

     *FILED HEREWITH


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