**UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. ****20549**

** FORM 10-Q**

(Mark One)

[x]  **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934**

For the quarterly periodended July 31, 2005.

[  ]  **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OFTHE SECURITIES EXCHANGE ACT OF 1934**

For the transition periodfrom _______________________________________ to__________________________________________

Commission File Number:______________________________________________________________________________________

 

| **First Hartford Corporation**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         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|  (Exact name of registrant as specified in its            charter)
Maine
01-0185800
(State or other jurisdiction of incorporation or			organization)
(I.R.S. Employer Identification No.)
P.O. Box 1270    149 Colonial Road               Manchester, CT 
06045-1270
(Address of principal executive offices)
(Zip Code)
860-646-6555

(Registrant's telephone number, including area			code)
 (Former name, former address and former fiscal year, if changed since lastreport)

            Indicate by check mark whether the registrant(1) has filed all reports required to be filed by Section 13 or 15(d) of theSecurities Exchange Act of 1934 during the preceding 12 months (or for suchshorter period that the registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90days.       XYes   ⁪ No    

            Indicate by check mark whether the registrantis an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).⁪Yes   XNo    

APPLICABLE ONLY TOISSUERS INVOLVED IN BANKRUPTCYPROCEEDINGS DURINGTHE PRECEDING FIVE YEARS:

            Indicate by check mark whether the registranthas filed all documents and reports required to be filed by Sections 12, 13 or15(d) of the Securities Exchange Act of 1934 subsequent to the distribution ofsecurities under a plan confirmed by a court.⁪Yes   ⁪No

Indicate by check mark whether the registrant is a shellcompany (as defined in Rule 12b-2 of the Exchange Act).⁪Yes   ⁪No

APPLICABLE ONLY TO CORPORATE ISSUERS:

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

3,083,171 as of September 9, 2005

** **

1

**FIRST HARTFORD CORPORATION ANDSUBSIDIARIES**

**INDEX**

**           **
**PART I.****                      FINANCIALINFORMATION                                ****PAGE**   Item 1. FinancialStatements     CondensedConsolidated Balance Sheets -            July31, 2005 (unaudited) and April 30, 2005 (audited)                 			3 - 4    CondensedConsolidated Statements of Operations and Comprehensive Loss            Forthe Three Months           EndedJuly 31, 2005 and 2004 (unaudited) 5    CondensedConsolidated Statements of Cash Flows            Forthe Three Months            EndedJuly 31, 2005 and 2004 (unaudited)                                  			6 - 7    Notesto Condensed Consolidated Financial Statements                           			8- 12   Item 2.Management's Discussion and Analysis  of			Financial Condition               			13 - 14 AndResults of Operations    Item 3.Quantitative and Qualitative Disclosures About			Market Risk                  			15   Item 4.Controls and Procedures      			15   **PART II****          OTHERINFORMATION**    Item 1. Legal Proceedings          			16   Item 2.Unregistered Sales of Equity Securities and Use of			Proceeds                  			16   Item 3.Defaults Upon Senior Securities16      Item 4.Submission of Matters to a Vote Of Security Holders			17   Item 5.Other Information			17   Item 6.Exhibits 			17    Signatures 18
2

 

**PART I.          FINANCIAL INFORMATION**

**FIRST HARTFORD CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS**

**ASSETS**

**July 31, 2005**

**April 30, 2005**

(unaudited)     

(audited)     

Real estate and    equipment:

 Developed properties

$33,574,457 

   $33,574,457 

 Equipment and leasehold    improvements

        295,441 

         268,088 

33,869,898 

33,842,545 

 Less: accumulated    depreciation and amoritization

    2,788,543 

      2,575,420 

31,081,355 

31,267,125 

 Property under    construction held for sale

  11,750,242 

     8,203,715 

42,831,597 

39,470,840 

Cash

833,214 

2,367,434 

Accounts and notes    receivable, less allowance for doubtful accounts

 of $1,600.

523,664 

509,022 

Deposits, escrows,    prepaid and deferred expenses

3,473,037 

3,659,911 

Investment in affiliates

9,665 

9,665 

Due from related parties and affiliates

329,109 

259,675 

Deferred tax assets, net    of valuation allowance of $800,000 

       2,330,000 

      1,700,000 

$ 50,330,286 

$ 47,976,547 

 

The accompanyingnotes are an integral part of these condensed consolidated financial statements

 

3

 

**FIRST HARTFORD CORPORATION AND SUBSIDIARIES****CONDENSED CONSOLIDATED BALANCE SHEETS(continued)**

**LIABILITIES AND SHAREHOLDERS'  DEFICIENCY**
   
**July 31, 2005**
   
**April 30, 2005**

Liabilities:

(unaudited)     
   
(audited)     

Mortgages and notes  payable:
   
     Construction loan  payable

$5,863,975 
   
$4,424,409 

     Mortgage payable

39,477,256 
   
39,549,494 

     Notes payable - other

     499,040 
   
  2,082,130 

45,840,271 
   
46,056,033 
   
Accounts payable

2,444,655 
   
1,170,949 

Accrued liabilities

406,075 
   
687,394 

Accrued cost of derivatives

365,718 
   
0 

Deferred income

121,778 
   
123,402 

Other liabilities

4,403,699 
   
1,449,020 

Due to related parties and  affiliates

       86,383 
   
83,954 

53,718,579 
   
49,570,752 
   
Minority interest

(333,869)
   
(283,869)
   
Shareholders' Deficiency:
   
Preferred stock, $1 par  value; $.50 cumulative and convertible;
   
 authorized 4,000 shares;  issued and outstanding - None.

-
   
-

Common stock, $1 par value;  authorized 6,000,000 shares;
   
 issued 3,298,609 shares 

3,298,609 
   
3,298,609 

Capital in excess of par

5,056,111 
   
5,056,111 

Deficit

(9,352,058)
   
(7,617,590)

Unearned stock compensation

       (88,021)
   
   (128,646)

(1,085,359)
   
608,484 

Less: Treasury stock, at cost, 215,438 and 215,368 shares at July 31, 2005
   
     and at April 30, 2005  respectively  
   
      1,919,065
   
      1,918,820

   (3,004,424)
   
    (1,310,336)

$50,330,286 
   
$47,976,547 

 

The accompanying notesare an integral part of these condensed consolidated financial statements

 

4

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE LOSS**(Unaudited)

**Three Months Ended**

**July 31, 2005**   
**July 31, 2004****Revenues:**          Sale of real estate
$0 
   
$128,500 
       Construction
0 
   
97,889 
       Rental income
1,464,390 
   
1,080,894 

     Management fee  income

17,587 
   
12,367 
       Gain on derivatives
0
   
29,059 
       Other
201,754 
   
28,514 
       Equity in earnings of  affiliates
              106,184 
   
           111,107 

           1,789,915
   
        1,488,330 
**Cost and Expenses:**          Cost of sales, real  estate
0 
   
15,304 
       Construction
28,490 
   
6,745 
       Operating
618,554 
   
351,935 
       Interest
477,799 
   
330,772 
  Loss on  derivatives          Loss on derivatives
365,718
   
0
       Depreciation and  amortization
267,313 
   
202,207 
       General and  administrative
522,701 
   
424,674 
       Property taxes
229,001 
   
157,056 
       Loss on early  retirement of debt
             1,639,081 
   
                       0 

             4,148,657 
   
         1,488,693 
     Loss before Income Taxes
(2,358,742)
   
(363)
**Provision for (Benefit From) Income Taxes:**          Current
5,725 
   
4,995 
       Deferred  
             (630,000)
   
0 
   
             (624,275)
   
               4,995 
   
Loss before minority  interest 

(1,734,467)
   
(5,358)
     Minority interest in income  of consolidated joint ventures
                         0 
   
           (86,690)
     Net loss
(1,734,467)
   
(92,048)
     Other Comprehensive Income  (Loss), net of Tax
                          0 
   
            (21,805)
     Comprehensive Loss
($1,734,467)
   
($113,853)
     Net Loss per Share
($0.56)
   
($0.03)
   
Weighted Average  Number of Shares Outstanding

3,083,171 
   
3,089,985 

 

The accompanying notes are an integral part of thesecondensed consolidated financial statements
   
 

5

 

**           **

**FIRST HARTFORD CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

**Three Months Ended**

**July 31, 2005**
   
**July 31, 2004**

Cash flows from operating  activities:

 Net loss

($1,734,467)

($92,048)

Adjustments to reconcile  net loss

 to net cash provided by  operating activities:

 Equity in earnings of  affiliates

(106,184) 

(111,107)

 Minority interest in  income of consolidated joint ventures

0

86,690

 Loss from early retirement  of debt

1,639,081 

0 

 Depreciation

213,123 

166,585 

 Amortization

54,190 

35,622 

 Deferred income taxes

(630,000)

0 

 Loss (Gain) on  derivatives

365,718 

(29,059) 

 Amortization of unearned  stock compensation

40,625 

40,625 

(Increase) decrease in:

 Accounts and notes  receivables, net

(14,642)

438,488 

 Deposits, escrows,  prepaid and deferred expenses

31,184 

556,691 

Increase (decrease) in:

 Accrued liabilities

(281,319)

144,981 

 Other liabilities

1,523,281 

88,434

 Deferred income

(1,624)

119,291 

 Accounts payable

1,273,706 

(826,722)

 Distributions from  (investment in) affiliates, net

                0 
   
     (66,858)
   
Net cash provided by  operating activities

2,372,672

551,613 

Cash flows from investing  activities:

 Proceeds from sale of  marketable securities

0 

191,201 

 

The accompanying notesare an integral part of these condensed consolidated financial statements

 

6

 

**FIRST HARTFORD CORPORATION AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

**(continued)**

 Purchase of equipment and  leasehold improvements

(27,353)

(32,952)

 Additions to developed  properties and properties under

      construction

    (3,546,527)

   (1,882,355)

Net cash used in investing  activities

(3,573,880)

(1,724,106)

Cash flows from financing  activities:

   Minority distributions  from consolidated joint ventures

(50,000)

(70,250) 

   Purchase of treasury  stock

(245)

0 

Proceeds from:

 Construction loan payable

1,439,566 

1,308,438 

 Advances from related  parties and affiliated partnerships, net

0

87,847 

Principal payments on:

 Mortgage payable

(72,238)

(213,475)

 Notes payable

(1,583,090)

(64,269)

 Advances to related  parties and affiliated partnerships, net

          (67,005) 
   
                     0 

Net cash (used in) provided by  financing activities

        (333,012)
   
       1,048,291 

Net decrease in cash

(1,534,220)

(124,202)

Cash, beginning of period

        2,367,434 
   
       1,500,030 

Cash, end of period

$833,214 

 

$1,375,828 

**                                                               **

** **The accompanying notes are an integral part of thesecondensed consolidated financial statements

 

7
****
**FIRST HARTFORD CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1.         Summary of SignificantAccounting Policies:**

Descriptionof Business

First Hartford Corporation was incorporated in Mainein 1909, and is engaged in the purchase, development, ownership, management andsale of real estate.

Principlesof Consolidation

The accompanying condensed consolidated financial statementsinclude the accounts of First Hartford Corporation, its wholly ownedsubsidiaries and other controlled subsidiaries (collectively referred to as the"Company").  The Company records minority interest for the non-owned portions ofconsolidated subsidiaries.  All significant intercompany transactions andaccounts have been eliminated in the consolidated financial statements,including construction revenues and costs of development for the Company's ownuse (rental/future sale).  

FinancialStatement Presentation

The accompanying unauditedcondensed consolidated financialstatements have been prepared in accordance with generally accepted accountingprinciples for interim financial information and with the instructions to Form10Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all ofthe information and footnotes required by generally accepted accountingprinciples for complete financial statements. In the opinion of management, alladjustments (consisting of normal recurring accruals and adjustments topreviously established loss provisions) considered necessary for a fairpresentation have been included. Operating results for the three months endedJuly 31, 2005 are not necessarily indicative of the results that may be expectedfor the year ending April 30, 2006. For further information, refer to thefinancial statements and footnotes thereto included in the Company's annualreport on Form 10-K for the fiscal year ended April 30, 2005.

Because the Company is engaged inthe development and sale of real estate at various stages of construction, theoperating cycle may extend beyond one year.  Accordingly, following theusual practice of the real estate industry, the accompanying condensedconsolidated balance sheets are unclassified.

Statementsof Cash Flows

For purposes of the statements of cash flows, theCompany considers all highly liquid securities purchased with an originalmaturity of three months or less to be cash equivalents.

DevelopedProperties, Equipment and Leasehold Improvements

Developed properties, equipment and leaseholdimprovements are recorded at the lower of cost or net realizable value. 

Depreciation and amoritization is provided using the straight-linemethod for financial reporting purposes based on the following estimated usefullives:

Description

Years
      
Developed properties

15 - 40

Equipment and leasehold  improvements

3  - 10

 

8

 

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1.         Summary of SignificantAccounting Policies (continued):**

DevelopedProperties, Equipment and Leasehold Improvements

Expenditures for major renewals and betterments, whichextend the useful lives of developed properties, and equipment and leaseholdimprovements, are capitalized.  Expenditures for maintenance and repairs arecharged to operations as incurred. 

PropertiesUnder Construction

Expenditures directly related to real estate underconsideration for development, are capitalized and are carried at cost in theconsolidated balance sheets.  These costs would include option payments,attorney's fees, architect and engineering fees, consultants, etc., but only tothe extent they are from outside sources.  If the project is later abandoned,all of the accumulated costs are charged to expense.  Costs for in-houseengineering and drafting, estimating and purchasing and development areexpensed as incurred.  

Leasing costs are capitalized when leases are signed(cost incurred) and include direct commissions, salaries and expenses.  Thesecosts are amortized over the life of the lease.  

DeferredExpenses

Leasingcommissions and financing costs (included in deposits, escrows, prepaid anddeferred expenses in the accompanying consolidated balance sheets) areamortized using the straight-line method over the terms of the related leasesand mortgages, respectively.

RevenueRecognition

Construction Revenue - The Company is primarilyinvolved in development for its own use.  However, revenues from projects builtfor third parties are recognized on the percentage-of-completion method ofaccounting based on costs incurred to date in relation to total actual costsand estimated costs to complete.  Revisions in costs and profit estimates arereflected in operations during the accounting period in which the facts becomeknown.  The Company provides for estimated losses on contracts in the year suchlosses become known. A subsidiary, Lead Tech, Inc., does lead and asbestosinspections and remediation and recognizes revenue as services are provided.

Rental Revenue - Rental revenue is comprised of baserent on a straight line basis, and reimbursements for certain costs as providedin the lease agreements such as real estate taxes, utilities, insurance, commonarea maintenance and other recoverable costs.  There are no contingent rents. In accordance with Statement of Financial Accounting Standards No. 13"Accounting for Leases", rental revenue is recognized on a straight-line basisover the terms of the respective leases.

InvestmentIn Affiliated Partnerships

Investments in entities in which the Company has lessthan a 20% interest are carried at cost.  Distributions received from thoseentities are included in income.  Distributions received in excess of theCompany's proportionate share of capital are applied as a reduction of the costof the investments.  Investments in entities in which the Company has a 20-50%interest are carried at cost and are subsequently adjusted for the Company'sproportionate share of their undistributed earnings or losses, and anydistributions (Equity Method).

9

 

**FIRST HARTFORD CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1.         Summary ofSignificant Accounting Policies (continued):**

**           **Investment In Affiliated Partnerships (continued)

OPERATING RESULTS OF NONCONSOLIDATED 50% OWNED SUBSIDIARIES

Cranston Shopping Center Total
   
Dover Shopping 	Center Total

Three month ended July 31,  2005
   
     Revenues

$1,176,007
   
$ 601,886

     Operating expenses

 1,020,872
   
   512,864

     Loss on early  retirement of debt
	            -0-   	3,075,163
Net Profit (Loss)
	    $  155,135   	$(2,986,141)         
Three months ended July 31,  2004
   
     Revenues

$1,041,948
   
 $     611,123

     Operating expenses
	   907,772   	  508,709
Net Profit
	   $   134,176   	  $     102,414
The Company currently has two unconsolidated operatingpartnerships:  The shopping center in Cranston, RI in which the Company owned a25% interest up to April 28, 2005 and 50% thereafter and the shopping center inDover Township, NJ in which the Company owns a 50% interest.  Although theCompany exercises some influence, the Company does not control the operatingand financial policies of these partnerships and, therefore, these partnershipsare not consolidated.

As reported on Form 10-K for the year ended April 30,2005, both of these partnerships have losses resulting from recentrefinancings.  The partnership owning the Dover Township, NJ shopping centerreports on an April 30 year-end.  As a result, the Company is expensing$1,537,581 as a loss on early retirement of debt, which represents its share ofthe loss from the June 7, 2005 refinancing.  The partnership owning theshopping center in Cranston, RI reports on a calendar year and is not adjustedto the Company's April 30 year end, therefore, the April 30, 2005 transactionwill not affect earnings until our second quarter ending October 31, 2005.  TheCompany will expense 50% of the loss from the early retirement of debt, theCompany's share of which comes to approximately $1,047,000.

These investments are recorded at cost and have beensubsequently adjusted for gains, losses and distributions.  If the carryingvalue is less than zero, the amount is carried in other liabilities.**   **

FairValue of Derivative Instruments

In the normal course of business,the Company is exposed to the effects of interest rate changes.  TheCompany limits its exposure with the use of derivatives.  To mitigate theexposure to unexpected changes in interest rates, derivatives are used primarilyto hedge against rate movements on some of the Company's related debt.  Inaccordance with SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities",interest rate swaps which have not been designated as a hedge must berecognized as an asset or liability and adjusted to fair value through incomein the current period.

On June 10, 2005 the Company refinanced the mortgageon the Katharine Gibbs College building by signing a new mortgage for$11,377,866 with the same lender.  The previous mortgage called for interest at30 day Libor plus 2% with an 8% rate cap, amortizing over 20 years, but dueApril 1, 2008.  The new rate is fixed at 6.11% and has a 25-year amortizationstarting in June 2007. The mortgage will have a balloon payment on June 10,2015.  To obtain this refinancing the Company became liable for a swap contract entered into by thebank. 

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**FIRST HARTFORD CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1.         Summary ofSignificant Accounting Policies (continued):**

**           **Fair Value of Derivative Instruments (continued):

The fair market value at July 31, 2005 isapproximately $365,000 and is recorded as a liability and an expense in thecurrent period.

AccountingFor The Impairment Or Disposal of Long-Lived Assets

The Company has adopted Statement of FinancialAccounting Standards (SFAS) No. 144, "Accounting for the Impairment or Disposalof Long-Lived Assets", which established a single accounting model for theimpairment or disposal of long-lived assets including discontinued operations. SFAS No. 144 requires that the operations related to properties that have beensold or properties that are intended to be sold be presented as discontinuedoperations in the Consolidated Statements of Operations and Comprehensive Lossfor all periods presented, and properties intended to be sold to be designatedas "held for sale" on the consolidated balance sheets.

Estimates

The preparation of financial statements in conformitywith accounting principles generally accepted in the United States of Americarequires management to make estimates and assumptions that affect the reportedamount of assets and liabilities, and the disclosure of contingent assets andliabilities as of the date of the financial statements, and the reportedamounts of revenues and expenses during the reporting period.  Actual resultscould differ from those estimates.

MarketableSecurities

In accordance with SFAS No. 115 "Accounting forCertain Investments in Debt and Equity Securities" the Company determines theappropriate classification of its investments in debt and equity securities atthe time of purchase and re-evaluates such determination at each balance sheetdate.  Debt securities for which the Company does not have the intent to hold tomaturity are classified as available-for-sale, along with the Company'sinvestment in equity securities.

Securities available-for-sale are carried at fairvalue, with the unrealized gains and losses reported in other comprehensiveincome (loss).

StockCompensation

The Company applies Accounting Principles BoardOpinion 25, "Accounting for Stock Issued to Employees" ("APB 25") and relatedinterpretations in accounting for its stock awards, and complies with thedisclosure provisions of SFAS No. 123, "Accounting for Stock Based Compensation". Under APB 25, compensation expense is recognized over the vesting period to theextent that the fair market value of the underlying common stock on themeasurement date exceeds the exercise price of the employee stock award.  

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**FIRST HARTFORD CORPORATION AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**1.         Summary ofSignificant Accounting Policies (continued):**

IncomeTaxes

In assessing the need for a valuation allowance, theCompany estimates future taxable income, considering the feasibility of ongoingtax planning strategies and the realizability of tax loss carryforwards.Valuation allowances related to deferred tax assets can be impacted by thechanges to tax laws, changes to statutory tax rates and future taxable incomelevels. In the event the Company were to determine that it would not be able torealize all or a portion of its deferred tax assets in the future, it wouldreduce such amounts through a charge to income in the period in which thatdetermination is made. Conversely, if the Company were to determine that itwould be able to realize its deferred tax assets in the future in excess of thenet carrying amounts, it would decrease the recorded valuation allowancethrough an increase to income in the period in which that determination ismade.

As of July 31, 2005, the Company has concluded that itis more likely than not that the Company will realize $2,330,000 in deferredtax assets. Accordingly, the Company has recognized a deferred tax benefit of$630,000 for the three months ended July 31, 2005.

LossPer Common Share

Loss per common share is based on theweighted average numberof common shares outstanding during the three month periods ended July 31, 2005and 2004.Due to the Company's net loss, the effect of common stock equivalents are anti-dilutiveand therefore have not been considered in the calculation of loss per commonshare.

NewAccounting Standards

In December 2004, the FASB issued SFAS No. 123(revised 2004), "Share-Based Payment".  SFAS 123 (revised 2004) requirescompanies to recognize in the statement of operations the grant-date fair valueof stock options and other equity based compensation.  The cost will berecognized over the period during which an employee is required to provideservice in exchange for the award, usually the vesting period.  Subsequentchanges in fair value during the requisite service period, measured at eachreporting date, will be recognized as compensation cost over that period.

In April 2005, the SEC extended the effective date forSFAS No. 123 (revised 2004) for public companies, to the beginning of aregistrant's next fiscal year that begins after June 15, 2005,.  The Companywill be required to adopt SFAS No. 123 (revised 2004) in its first quarter offiscal 2007.  The Company is evaluating the impact of the adoption of SFAS No.123 (revised 2004) on the Company's financial position and results ofoperations.

In March 2005, the Financial Accounting StandardsBoard issued Interpretation No. 47, "Accounting for Conditional AssetRetirement Obligations (an interpretation of FASB No. 143)". ThisInterpretation provides clarification with respect to the timing of liabilityrecognition for legal obligations associated with the retirement of tangiblelong-lived assets when the timing and/or method of settlement of the obligationare conditional on a future event. Interpretation No. 47 is not expected tohave a material impact on the Company's financial position and results ofoperations.

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**Item 2.           FIRST HARTFORD CORPORATION ANDSUBSIDIARIES                        MANAGEMENT'SDISCUSSION AND ANALYSIS OF FINANCIAL                        CONDITIONAND RESULTS OF OPERATIONS**

The financial and businessanalysis below provides information which the Company believes is relevant toan assessment and understanding of the Company's financial position and resultsof operations.  This financial and business analysis should be read inconjunction with the consolidated financial statements and related notes.

The following discussion and certain other sections ofthis Report on Form 10-Q contain statements reflecting the Company's viewsabout its future performance and constitute "forward-looking statements" underthe Private Securities Litigation Reform Act of 1995.  These views may involverisks and uncertainties that are difficult to predict and may cause theCompany's actual results to differ materially from the results discussed insuch forward-looking statements.  Readers should consider how various factorsincluding changes in general economic conditions, cost of materials, interestrates and availability of funds, and the nature of competition andrelationships with key customers may affect the Company's performance.  TheCompany undertakes no obligation to update publicly any forward-lookingstatements, whether as a result of new information, future events or other.

Critical Accounting Policies

The discussion and analysisof financial condition and results of operations is based upon the consolidatedfinancial statements contained in Item 1 in this Quarterly Report.  Theconsolidated financial statements include the accounts of the Company and itscontrolled affiliates.  The preparation of financial statements in conformitywith accounting principles generally accepted in the United States of Americarequires management to make estimates and assumptions that affect the reportedamounts of assets and liabilities and the disclosure of contingent assets andliabilities as of the date of the financial statements and the reported amountsof revenues and expenses for the reporting period.  Actual results could differfrom those estimates.

The significant accounting policy used in the preparation of the consolidatedfinancial statements are described in Note 1 to the consolidated financialstatements for the periods ended July 31, 2005 and 2004.  Certainsignificant accounting policies are considered critical accounting policies dueto the increased level of assumptions used or estimates made in determiningtheir impact on the consolidated financial statements.  

Results of Operations

The three months ended July 31, 2005 resulted in a lossof $1,734,467 compared to a loss of $92,048 for the three months ended July31, 2004.  Most of the current loss was a result of debt refinancings, notoperations.  The loss from refinancings is summarized as follows:                          
Loss  from early retirement of debt (non            consolidated affiliate)$1,537,581Loss on derivatives (consolidated affiliate) 365,718Loss from early retirement of debt (consolidated            affiliate)    				 101,500 $2,004,799Less deferred income tax on above				   630,000 				$1,374,799
Other than from the above financing, the loss fromoperations is $359,668.

Rental income has increased approximately$383,000 from July 31, 2004,mainly from additional stores being finished from the West Springfield shoppingcenter.  The addition of occupied stores in the North Adams shopping centeralso increased the totals.  Additional cost for real estate taxes, insuranceand common area charges billed to tenants result in increased revenue.

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**Item 2.           FIRST HARTFORD CORPORATION ANDSUBSIDIARIES                        MANAGEMENT'SDISCUSSION AND ANALYSIS OF FINANCIAL                        CONDITIONAND RESULTS OF OPERATIONS (continued)**

Other income includes the first fee for service from CVSPharmacy ($175,000).  The Company anticipates the completion of four additionaldeals in the second quarter.

Cost and Expenses include approximately $83,000 in feesand bonuses to generate the fee  income.  Our joint venture into multi-familyhousing has not generated any income, but we expensed approximately $90,000 inthe current quarter.  Property expenses as noted above plus the addition of newemployees as well as salary increases and related costs, account for thebalance of the incurred cost.

Capital Resources and Liquidity

With the exception ofapproximately 25,000 square feet of unleased space, the Company expects tocomplete construction of its shopping center in Bangor, Maine in the current calendaryear.  At that time, the property will be sold.  We expect to recoup ourinvestment of approximately $3,500,000 plus a yet to be determined profit.  

The Company does nothave any liquidity problems at this time,  we have an undrawn upon credit lineand have recently paid off the Pension Benefit Guaranty Corporation ($670,000 21/2 years before it was due). The Company does not anticipate any cash flow problemsfor the foreseeable future.  Capital resources are easily available but ourconstruction lender still requires the personal guarantee of the President ofthe Company.  We hope to eliminate this in the future.

Thefollowing schedule outlines our long-term obligations as of July 31, 2005.

**Contractual  Obligations**

**Total**
**Less Than1 Year**
**1 - 3 Years**

**3-5 Years**
**More Than5 Years**
Long Term Debt

$39,967,256

$    453,693

$1,389,843

$1,571,666

$36,552,054

Operating Lease (1)

         60,000

       60,000

Short-Term Debt 

    5,873,015

 5,873,015

Purchase Obligation (2)

    7,395,879

  7,395,879

__________

__________

__________

Total

$53,296,150

$13,782,587

$1,389,843

$1,571,666

$36,552,054
-  Shopping center in Bangor, Maine to be built onproperty leased until January 31, 2104.  Only payments prior to December31, 2005 are on this schedule.  Thereafter, the annual rent is $400,000with a .075% increase every 5 years. 
-  The entire amount of purchase obligations is forthe Bangor project. 

Although wary of rising interest rates, the possibilitiesof problems with major tenants, and major construction cost overruns, we feelour liquidity and capital resources are adequate to meet our needs.

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**Item 3.                        QUANTITATIVEAND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

Allphases of the real estate business are inherently speculative and intenselycompetitive with many enterprises, both large and small, engaged in businessessimilar to the Company's throughout the United States.  The success of theCompany, to a large extent, depends upon factors which may be beyond thecontrol of management.  Some of these factors are variable construction costs,the mortgage market, real estate taxes, income tax laws, governmentregulations, the commercial rental market and the economy.  The ability of theCompany to meet its debt service obligations and to operate profitably is alsodependent on its ability to attract tenants and to compete successfully withthe numerous other commercial properties available to prospective tenants.  Theability to attract tenants is dependent upon the changing character of theareas in which the Company's properties are located, the rate of newconstruction in those areas and the extent of present and future competition inthose areas.  The Company's holdings are becoming less diversified bothgeographically and in use and types of occupancy.

TheCompany's assets are concentrated mostly in the Northeast which creates ageographic diversification risk.  The Company presently has properties fromSouthern New Jersey to Maine.

Thereal estate business does not experience "backlogs" as that term is generallyunderstood, nor is it seasonal.

Tothe Company's knowledge, its real estate business is not dependent upon asingle customer but there is a dependency on supermarkets for strip malls.  TheCompany has Stop & Shop, Price Rite and Big Y as such tenants.

OnJune 10, 2005 the Company refinanced the mortgage on the Katharine GibbsCollege building by signing a new mortgage for $11,377,866 with the samelender.  The previous mortgage called for interest at 30 day Libor plus 2% withan 8% rate cap, amortizing over 20 years, but due April 1, 2008.  The new rateis fixed at 6.11% and has a 25-year amortization starting in June 2007. Themortgage will have a balloon payment on June 10, 2015.  To obtain thisrefinancing the Company became liable for a swap contract entered into by thebank. In accordance with SFAS No. 133, "Accounting for Derivative Instrumentsand Hedging Activities", interest rate swaps which have not been designated asa hedge must be recognized as an asset or liability and adjusted to fair valuethrough income in the current period.

Thefair market value at July 31, 2005 is approximately $365,000 and is recorded asa liability and an expense in the current period.

**Item 4.                        CONTROLSAND PROCEDURES**

Our management, including our chiefexecutive officer and chief financial officer carried out an evaluation of theeffectiveness of our disclosure controls and procedures as of July 31, 2005,pursuant to Exchange Act Rules 13(a)-15(e) and 15(d)-15(e).  Based upon thatevaluation our chief executive officer and chief financial officer haveconcluded that as of such date, our disclosure controls and procedures in placeare adequate to ensure material information and other information requiringdisclosure is identified and communicated on a timely basis.  There were nosignificant changes in the registrant's internal controls or in other factorsthat could significantly affect these controls subsequent to the date of theirevaluation.

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**FIRST HARTFORD CORPORATION AND SUBSIDIARIES**

**PART II          OTHER INFORMATION**

**Item 1.             LEGALPROCEEDINGS**

OnJanuary 29, 2004, a shareholder filed a Form 13D with the Securities andExchange Commission indicating that he controls over 19% of the Company'sshares.  That shareholder was Richard E. Kaplan, purportedly a resident of theCommonwealth of Massachusetts.  By Complaint dated February 27, 2004, Mr.Kaplan filed suit against First Hartford Corporation (the "Company") as CivilAction No. 04 10402 NMG in the United States District Court for the District ofMassachusetts.  The Company was served with the complaint on March 2, 2004. The complaint alleges that the proxy solicitation materials issued by theCompany as a prelude to its annual meeting on January 22, 2004, were falseand/or misleading in certain respects and also omitted certain materialinformation.  As a result thereof, the plaintiff seeks to void the shareholdervotes taken at the January 22, 2004 shareholder meeting of the Company and havea new vote ordered based upon revised proxy material which would be required tobe issued by the Company.  The shareholder votes taken at the annual meetingwere to re-elect the Board of Directors, which had been serving the Company,and to approve the Employee Stock Option Plan.

Additionally, on February 27, 2005, Mr. Kaplanfiled another suit against the Company in the same court styled as Civil Action No.  05 10320 NMG (United States DistrictCourt for the District of Massachusetts) making essentially the same claims asthe first suit with regard to the Company's 2005 annual meeting.  Theshareholder vote for the February 24, 2005 meeting was to re-elect the Board ofDirectors, which had been serving the Company and a proposal brought forth byMr. Kaplan to require the Company to have 80% independent directors.    Theproposal was defeated 1,860,706 to 662,672.  

OnJuly 12, 2005 the District Court Judge approved a request by the Company toconsolidate the cases.

TheCompany believes strongly that information in its proxy materials was neitherfalse nor misleading and that the lawsuit is without merit.

The Company is not aware of anyother material legal proceedings which would need to be cited herein.

**Item 2.            UNREGISTERED SALES OF EQUITYSECURITIES AND USE OF PROCEEDS**

(a)               Not Applicable.

(b)               Not Applicable.

(c)               Not Applicable.

** **

**Item 3.            DEFAULTSUPON SENIOR SECURITIES**

(a)               Not Applicable.

(b)               Not Applicable.  The Company hasnot declared any dividends.

16

 

**FIRST HARTFORD CORPORATION AND SUBSIDIARIES**

**PART II          OTHER INFORMATION (continued)**

**Item 4.                        SUBMISSIONOF MATTERS TO VOTE A OF SECURITY HOLDERS**

(a)               Not Applicable.

(b)               Not Applicable.

(c)               Not Applicable

(d)               Not Applicable

**Item 5.                        OTHERINFORMATION**

**Item 6.                        EXHIBITS**

                        a)         Exhibits:

Exhibit 31.1    Certification ofChief Executive Officer, pursuant to Rule 13a-14(c) under the SecuritiesExchange Act of 1934.

Exhibit 31.2     Certification ofChief Financial Officer, pursuant to Rule 13a-14(c) under the SecuritiesExchange Act of 1934.

Exhibit 32.1       Certification ofChief Executive Officer, pursuant to 18 U.S.C. Section 1350.

Exhibit 32.2       Certification ofChief Financial Officers, pursuant to 18 U.S.C. Section 1350.

            

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**SIGNATURES**

Pursuant to the requirements of the Securities ExchangeAct of 1934, the Registrant has duly caused this report to be signed on itsbehalf by the undersigned thereunto duly authorized.

                                                                                    
 FirstHartford Corporation(Registrant)                           September 14, 2005            ______________________________                      			Date /s/ Neil H. Ellis            ______________________________			Neil H. Ellis - President and 			Chief Executive Officer                       September 14, 2005             ______________________________                      			Date/s/ Stuart I. Greenwald            ______________________________ 			Stuart I. Greenwald - Treasurer 			and Chief Financial Officer
 

 

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