**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549 F O R M 10-Q****QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

| **For Quarter Ended July 31, 2003**** ** | ** Commission File No. 0-8862** 
**First Hartford Corporation**

(Exact name of registrant as specified in its charter) 
  **Maine**   **01-0185800**(State of Incorporation)   (I.R.S. Employer Identification No.)   **149 Colonial Road, Manchester, Connecticut**** **** 06040**(Address of principal executive offices)    (Zip Code)  
**(860) 646-6555**
(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, and (2)has been subject to such filing requirements for the past 90 days. 
YES      NO          X
 

     As of November 8, 1997, 3,089,985 shares of common stock of the Registrant were outstanding.
 **FIRST HARTFORD CORPORATION**     **INDEX**             
**          PART I. FINANCIAL INFORMATION****PAGE**   Item 1.Financial Statements     Independent Auditor   's Review Letter1    Consolidated Balance Sheets -     July 31, 2003 and April 30, 20032 & 3    Consolidated Statements of Operations     Three Months Ended July 31, 2003 and     Three Months Ended July 31, 20024    Consolidated Statements of Cash Flows     Three Months Ended July 31, 2003 and     Three Months Ended July, 31, 20025 & 6    Notes to Consolidated Financial Statements7   Item 2. Management's Discussion and   Analysis      of Financial Condition and Results     of Operations8 & 9   **          PART II.   OTHER INFORMATION**     Signatures14
 
**KOSTIN, RUFFKESS & Company, LLC**Main Line:  (860) 678-6000Business Advisors and Certified Public      AccountantsToll Free:  (800) 286-KRCOPond View Corporate CenterFax: (860) 678-611076 Batterson Park RoadWeb:  www.kostin.comFarmington, CT 06032
To the Board of DirectorsFirst Hartford Corporation and Subsidiaries

**INDEPENDENTACCOUNTANTS' REPORT**

We have reviewed the accompanying consolidated balance sheetof First Hartford Corporation and Subsidiaries as of July 31, 2003, and therelated consolidated statements of operations, and cash flows for the threemonths then ended.  These consolidated financial statements are theresponsibility of the Company's management.

We conducted our review in accordance with Statements onStandards for Accounting and Review Services issued by the American Institute ofCertified Public Accountants.  A review of interim financial informationconsists principally of applying analytical procedures to financial data andmaking inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance withauditing standards generally accepted in the United States of America, theobjective of which is the expression of an opinion regarding the consolidatedfinancial statements taken as a whole.  Accordingly, we do not express suchan opinion.

Based on our review, we are not aware of any materialmodifications that should be made to the accompanying consolidated financialstatements in order for them to be in conformity with accounting principlesgenerally accepted in the United States of America.

/s/ Kostin, Ruffkess & Company, LLC

Kostin, Ruffkess & Company, LLCFarmington, ConnecticutSeptember 11, 2003

1

**PARTI - FINANCIAL INFORMATION**Item 1.  Financial Statements:

** **

**FIRSTHARTFORD CORPORATION AND SUBSIDIARIESCONSOLIDATEDBALANCE SHEETS**(Unaudited)

**Assets**

**July 31,**
   
**April 30,**

 

**2003**
   
**2003**
   
Real Estate and equipment:
      
     Developed  properties

   $21,017,365
   
 $21,017,365
   
     Equipment  and leasehold improvements

   111,540
   
   113,719

    

21,128,905
     21,131,084   
     Less  accumulated depreciation and  amortization

 2,745,183
   
 2,632,870

    

18,383,722
     18,498,214
     Properties  under construction and          investment  in undeveloped properties and investments.

   157,004
   
   107,907

 
  18,540,726     18,606,121
 
      
Cash          
  18,873              29,051   
Accounts receivable, less allowance      for  doubtful accounts of $30,129 and $130 respectively
  1,578,620     1,187,296
 
   
 
      
Deposits, escrows, and prepaid and deferred  expenses     
  1,501,167     1,340,464
    
      
Investment in affiliates

    378,007
   
 1,132,908
   
Due from related parties and affiliates

    264,301
   
   192,505
   
Deferred Tax Assets

 1,700,000
   
 1,700,000

     
    $23,981,694       $24,188,345
** **

 

2

**PART I - FINANCIALINFORMATIONFIRSTHARTFORD CORPORATION AND SUBSIDIARIESCONSOLIDATEDBALANCE SHEETS**(Unaudited)

 
                                       **July 31,**   **April 30,****Liabilities:**    **2003**   **  2003**              
Mortgages, notes payable and capital lease obligations:
  $           658,165   474,627 
 

              

     Mortgages payable

                $23,019,365 
  23,076,855 
     Notes Payable:

          Other
  2,277,347   2,641,889 
            
  25,954,877   26,193,371 
Accounts payable
  2,555,558   2,097,292        Accrued Liabilities  393,985      494,512 
Other Liabilities
  827,224   772,984 
Deferred Income
  282,749   265,467 
Due to Related Parties and affiliated partnerships  
   124,939     248,359 
 
  30,139,332   30,071,985 
           

**Shareholders'  equity (deficiency):**

** **

** **

** **

** **

** **

** **

** **

Common stock, $1 par; authorized       6,000,000 shares; issued 3,322,213 shares
  3,322,213   3,322,213 
 

  

Capital in excess of par
  4,857,645 
4,857,645 

Deficit          
  (12,269,372)  (11,995,374)
        
  ( 4,089,514)  (   3,815,516)
Less 232,228 shares of common stock      held in treasury, at cost
  2,068,124   2,068,124 
 
  ( 6,157,638)
 
  ( 5,883,640)
 
    $23,981,694     $24,188,345 
 

3

**FIRST HARTFORD CORPORATION AND SUBSIDIARIES**
**CONSOLIDATED STATEMENTS OF INCOME (LOSS)**(Unaudited)         **Three Months Ended**   **July 31, 2003** **July 31, 2002**      **Revenues, Including Related**     
   **Party Respectively:**                    Construction  87,292  193,682          Rental  931,268  885,907          Other  97,635  275,516          Equity in Earnings              of Subsidiaries  80,000  -0-    1,196,195  1,355,105 **Costs and Expenses:**                       Construction  6,044  133,860       Operating, selling, general              and administrative  680,818  545,556       Interest  498,449  504,000       Depreciation and amortization  128,927  126,888       Real estate taxes  151,254  140,322          1,465,492  1,450,626       **Net Income Gain (Loss)**  ( 269,297) ($      95,521)Income Tax Provisions  4,701  -0-                 ($ 273,998) ($    95,521)                  Income Per Share  ($ 0.09) ($       0.03)      Weighted Average Number of Common           Shares Outstanding  3,089,985  3,089,985 
4

**FIRST HARTFORD CORPORATION AND SUBSIDIARIES**
**CONSOLIDATED STATEMENT OF CASH FLOWS**
**JULY 31, 2003**        
**INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS**        Cash flows from operating  
3 months ended    3 months endedactivities:  
July 31, 2003   July 31, 2002            Net Profit (Loss)  $(    273,998)   $(     95,521 )Adjustments to reconcile net loss       to net cash used in operating activities:                 Depreciation  116,955    116,264    Amortization  11,972    10,624            Changes in assets and liabilities:          Increase in:                  Accounts and Notes Receivable  (      391,324)   117,422    Deposits, escrows, prepaid and          deferred expenses  (      172,675)   192,592    Accrued liabilities  (        83,244)         
(     171,951)   Other liabilities  54,240    - 0 -         Decrease in:               Accounts payable  458,266  
     (    263,456)        Net cash used in operating activities     (      279,808)       (      94,026)        Cash flows from investing activities:                  Investment in Affiliates  754,901    - 0 -    Purchase of Equipment  (          2,463)   (        3,276)        Payments for:                  Additions to Properties under          construction  (          49,097)  
 (    195,104)        Net Cash used in investing activities  $      703,341    $(      198,380)
5
**FIRST HARTFORD CORPORATION AND SUBSIDIARIES****CONSOLIDATED STATEMENT OF CASH FLOWS, CONTINUED****JULY 31, 2003**      Cash flows from financing 3 months ended  3 months ended      activities: July 31, 2003     July 31, 2002            Proceeds from:                 Construction Loan Payable 183,538   - 0 -             Mortgage Payable - 0 -   281,517             Notes Payable - 0 -   400,000          Principal payments on:                    Mortgages payable (    330,591)  (    128,859)         Notes payable (      91,442)  (      50,000)               Repayment to related parties and           affiliated partnerships  
(195,216)     (      81,743)         Net Cash provided by financing           activities (      433,711)  420,915       Net increase (decrease) in cash        and cash equivalents (      10,178)  128,509 Cash and cash equivalents, beginning       of year 29,051   67,748             Cash and cash equivalents,        end of year $      18,873   $     196,257 
6

**Summary of Significant Account Policies:**

Description of business: 

First Hartford Corporation (the Company) wasincorporated in Maine in 1909, and is engaged in the purchase, development,ownership, management and sale of real estate. The Company extends credit tocompanies/tenants throughout the United States. 

Principles of consolidation: 

The accompanying financial statements include the accounts of the Company and its wholly-owned subsidiaries, including partnerships in which the Company is a majority owner or has substantialcontrol. All significant intercompany transactions and accounts have been eliminated in the consolidated financial statements, including construction revenues and costs of development for the Company's own use (rental/future sale). The Companyrecords its investment in partnerships in which it is not a majority owner on the equity method. Construction revenue and cost for minority interests are also eliminated.

Financial Statement Presentation: 

Because the Company is engaged in the developmentand sale of real estate in various stages of construction, the operating cyclemay extend beyond one year. Accordingly, following the usual practice of thereal estate industry, the accompanying consolidated balance sheets areunclassified.

Revenue recognition: 

Since the Company is primarily involved indevelopment for its own use (rental/future sale), construction revenue isrecorded only upon sale of the property built for sale to third parties.Revenues from projects built for third parties are recognized on thepercentage-of-completion method of accounting based on costs incurred to date inrelation to total actual costs and estimated costs to complete. Revisions incosts and profit estimates are reflected in operations during the accountingperiod in which the facts become known. The Company provides for estimatedlosses on contracts in the year such losses become known. There are noproperties built for sale to third parties during the reporting period. 

Rental revenues are recognized as income under theoperating method as the rentals become due. Other income includes management andservice fees and interest income which is recognized over the period in whichthe service is provided or the interest is earned. 

7 

Interim Financial Information (Unaudited) 

The interim financial statements of the Company for the three months ended July 31, 2003 and 2002 included herein, have been prepared by the Company, without audit, pursuant to the rules and regulations of the SEC. Certaininformation and footnote disclosures normally included in financial statements prepared in accordance with accounting principals generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulationsrelating to interim financial statements. 

Subsequent Events 

     On September 8, 2003, FHC received a copy of a pleading entitledMotion To Cite In Party Defendants dated August 20, 2003, requesting permission to name FHC as an additional defendant (in additionto the current 63 defendants) in a matter styled James Deshone vs. ABB, Inc. et. al filed in the Superior Court J.D. of Fairfield,CT @ Bridgeport, CT under docket #BA-02-03987835 regarding a single individual purportedly seeking redress for anillness alleged to relate to asbestos exposure over a period from 1956-1991 while working at various jobsites. FHC has retained the firm of Day, Berry and Howard to represent it in this matter. Since the above pleading contained no specificallegations against FHC, FHC is unable to make any determination as to the merits of this matter. FHC has been unable to uncover any evidence (based on a preliminary review) of Mr. Deshone as ever being employed at FHC.

Item 2.     FIRST HARTFORD CORPORATION AND SUBSIDIARIES               MANAGEMENT 'S DISCUSSION AND ANALYSIS OF FINANCIAL               CONDITION AND RESULTS OF OPERATIONS 

Result of Operations 

The quarter ended July 31, 2003 resulted in a lossof $273,998 or ($.09) per share compared to a loss of $95,521 or ($.03) pershare. The prior years quarter had a bonus management fee from an affiliate of$200,000 or $.06 per share. If this was eliminated both quarters would have hadan $.09 loss per share.

This quarter has a $80,000 gain from earnings of unconsolidated subsidiaries. This gain was only picked up in prior years at year end. 

8 

Capital Resource and Liquidity 

Liquidity has improved this quarter due to therelease of the Kmart holdback established at funding of the permanent mortgageon the Cranston, RI shopping center. As a result, the Company 's portion of the escrow $337,500 (1,350,000 x 25%) as well as cash flow from the property was released. In addition, funds advanced in excess of 25% (per the originalpartnership agreement) were returned with interest. In total, the company received approximately $817,000 in June and July. On our interest in Dover, NJ, we received distributions of approximately $108,000 during the quarter. Most of the increase inliquidity however was at July 31, 2003 in our accounts receivable, a good part of which was collected in early August.

 

 

 

9

CERTIFICATIONS 

Certification requirements set forth in Section 302 (a) of the Sarbanes-Oxley Act. 

I, Neil H. Ellis, certify that: 
1. |
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