FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

(Mark One)
[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                     SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 1999
                               -------------------------------------------------

                                   OR

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

For the transition period from                        to
                              ------------------------  ------------------------
Commission file number:  0-27562
                         -------------------------------------------------------


                              ATLANTIC REALTY TRUST
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


                  Maryland                             13-3849655
   --------------------------------------  -------------------------------------
      (State or other jurisdiction of               (I.R.S. Employer
       incorporation or organization)              Identification No.)

                   747 Third Avenue, New York, New York 10017
             ------------------------------------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (212) 702-8561
             ------------------------------------------------------
              (Registrant's telephone number, including area code)

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

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

         The number of shares of beneficial interest,  par value $.01 per share,
outstanding on November 2, 1999 was 3,561,553.


<PAGE>



                                    I N D E X

This  Quarterly  Report  on  Form  10-Q  contains  historical   information  and
forward-looking  statements.  Statements looking forward in time are included in
this  Form  10-Q  pursuant  to the  "safe  harbor"  provisions  of  the  Private
Securities  Litigation  Reform Act of 1995. They involve known and unknown risks
and uncertainties that may cause the Trust's actual results in future periods to
be materially  different from any future  performance  suggested  herein. In the
context of forward-looking  information  provided in this Form 10-Q and in other
reports,  please refer to the discussion of risk factors detailed in, as well as
the  other  information  contained  in,  the  Trust's  Form 10  filed  with  the
Securities  and  Exchange  Commission  on March 28,  1996 as well as the Trust's
filings with the Securities and Exchange Commission during the past 12 months.

Part I -- FINANCIAL INFORMATION                                         PAGE NO.
                                                                        --------
Item 1.  Financial Statements.

         Consolidated Statements of Net Assets in Liquidation --
         September 30, 1999 and December 31, 1998..... ........................1

         Consolidated Statements of Changes in Net Assets in Liquidation --
         Periods July 1, 1999 through September 30, 1999 and January
         1,1999 through September 30, 1999 and Periods July 1, 1998
         through September 30, 1998 and January 1, 1998 through
         September 30, 1998....................................................2

         Notes to Consolidated Financial Statements............................3

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Liquidation Activities............................................6

Item 3.  Quantitative and Qualitative Disclosure About Market Risk.............6

Part II -- OTHER INFORMATION

Item 1.  Legal Proceedings.....................................................7

Item 2.  Changes in Securities and Use of Proceeds.............................7

Item 3.  Defaults Upon Senior Securities.......................................7

Item 4.  Submission of Matters to a Vote of Security Holders...................7

Item 5.  Other Information.....................................................7

Item 6.  Exhibits and Reports on Form 8-K......................................7

Signatures.....................................................................8


<PAGE>



                         PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.


                      ATLANTIC REALTY TRUST AND SUBSIDIARY
              CONSOLIDATED STATEMENTS OF NET ASSETS IN LIQUIDATION
                        (Liquidation Basis of Accounting)




                                           September 30, 1999  December 31, 1998
                                           ------------------  -----------------
ASSETS

Investments in Real Estate................     $  37,775,000       $ 38,625,000

Cash and Short Term Investments...........        24,236,816         21,751,057
                                               -------------       ------------
     Total Assets.........................     $  62,011,816       $ 60,376,057
                                               =============       ============
LIABILITIES

Estimated Costs of Liquidation............     $   4,802,918       $  4,164,168
                                               -------------       ------------
Total Liabilities.........................     $   4,802,918       $  4,164,168
                                               -------------       ------------
     Net Assets in Liquidation............     $  57,208,898       $ 56,211,889
                                               =============       ============












                 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                        1
<PAGE>



                      ATLANTIC REALTY TRUST AND SUBSIDIARY
         CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS IN LIQUIDATION
                        (Liquidation Basis of Accounting)




                                            For the Period      For the Period
                                           July 1, 1999 to    January 1, 1999 to
                                          September 30, 1999  September 30, 1999
                                          ------------------  ------------------

Net Assets in Liquidation
   Beginning of Period....................     $56,572,842        $56,211,889

Adjustments to Reflect
   Liquidation Basis of Accounting........         636,056            997,009
                                               -----------        -----------
Net Assets in Liquidation End of Period...     $57,208,898        $57,208,898
                                               ===========        ===========





                                            For the Period      For the Period
                                           July 1, 1998 to    January 1, 1998 to
                                          September 30, 1998  September 30, 1998
                                          ------------------  ------------------

Net Assets in Liquidation
   Beginning of Period....................    $54,532,731         $54,048,704

Adjustments to Reflect
   Liquidation Basis of Accounting........        915,631           1,399,658
                                              -----------         -----------
Net Assets in Liquidation End of Period...    $55,448,362         $55,448,362
                                              ===========         ===========













                 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                      2
<PAGE>



                      ATLANTIC REALTY TRUST AND SUBSIDIARY
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.        Organization and Significant Accounting Policies:

         Atlantic  Realty Trust,  a Maryland real estate  investment  trust (the
"Trust"),  was  formed  on July 27,  1995 for the  purpose  of  liquidating  its
interests in real properties, a mortgage loan portfolio and certain other assets
and  liabilities  which  were  transferred  to the Trust  from  Ramco-Gershenson
Properties  Trust (formerly named RPS Realty Trust) ("RPS") on May 10, 1996 (the
"Spin-Off Transaction").  The Trust had no operations from the date of formation
to the date of the Spin-Off Transaction. The Trust adopted the liquidation basis
of accounting as of the date of the Spin-Off  Transaction based on its intention
to liquidate its assets or merge or combine  operations with another real estate
entity within eighteen months from the date of the Spin-Off Transaction.

Liquidation Basis of Accounting

         As a result of the  Spin-Off  Transaction,  the Trust has  adopted  the
liquidation  basis  of  accounting.  The  liquidation  basis  of  accounting  is
appropriate when liquidation  appears imminent and the Trust is no longer viewed
as a going concern. Under this method of accounting,  assets are stated at their
estimated net realizable  values and  liabilities  are stated at the anticipated
settlement amounts.

         The valuations  presented in the accompanying  Statements of Net Assets
in  Liquidation  represent  the  estimates at the dates shown,  based on current
facts and  circumstances,  of the estimated net  realizable  value of assets and
estimated  costs of liquidating  the Trust.  In  determining  the net realizable
values of the assets,  the Trust  considered  each  asset's  ability to generate
future cash flows,  offers to purchase received from third parties,  if any, and
other general market information. Such information was considered in conjunction
with operating the Trust's plan for  disposition of assets.  The estimated costs
of liquidation  represent the estimated costs of operating the Trust through its
anticipated termination.  These costs primarily include payroll,  consulting and
related costs, rent, shareholder relations, legal and auditing.  Computations of
net realizable value  necessitate the use of certain  assumptions and estimates.
Future events,  including economic conditions that relate to real estate markets
in  general,  may  differ  from  those  assumed  or  estimated  at the time such
computations  are made.  Because of inherent  uncertainty  of valuation  when an
entity is in liquidation,  the amounts ultimately  realized from assets disposed
and costs  incurred to settle  liabilities  may  materially  differ from amounts
presented.

         Pursuant to the terms of the Trust's  Amended and Restated  Declaration
of Trust,  the Trust was to continue  for a period of 18 months from the date of
the Spin-Off Transaction,  subject to, among certain other things,  satisfactory
resolution  of the RPS Tax Issues (as such term is defined in footnote 5 below).
Because the RPS Tax Issues have not yet been satisfactorily  resolved, the Trust
has continued its business past that date. The Trust cannot  currently  estimate
the  timing  of the  future  satisfactory  resolution  of the  RPS  Tax  Issues.
Accordingly,  the Trust will continue  until there is a final  determination  of
these issues.

Consolidation

         The consolidated financial statements include the accounts of the Trust
and its subsidiary.  All significant intercompany accounts and transactions have
been eliminated in consolidation.

2.       Investments in Real Estate:
                                                      Estimated Net
Property                       Location         Realizable Value 9/30/99(a)
--------                       --------         ---------------------------
Hylan Shopping Center      Staten Island, NY           $37,775,000

----------

(a)   Includes  estimated  cash flows  using a  disposition  period of 9 months.
      Realized  values may differ  depending on actual  disposition  results and
      time period.

                                        3
<PAGE>



                      ATLANTIC REALTY TRUST AND SUBSIDIARY
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

3.       Shares Outstanding:

         The  weighted   average   number  of  shares  of  beneficial   interest
outstanding for the period ending September 30, 1999 was 3,561,553.

4.       Short-Term Investments:

         Short-term investments at September 30, 1999 consist primarily of a
Certificate of Deposit at a major New York bank of $23,000,000  bearing interest
at a fixed rate of 4.15%.

5.       Tax Contingency:

         During the third  quarter of 1994,  RPS held more than 25% of the value
of its gross assets in overnight Treasury Bill reverse  repurchase  transactions
which the Internal Revenue Service ("IRS") may view as non-qualifying assets for
the purposes of satisfying an asset qualification test applicable to real estate
investment trusts (each, a "REIT"),  based on a Revenue Ruling published in 1977
(the "Asset Issue").  RPS requested that the IRS enter into a closing  agreement
with RPS that the Asset Issue  would not impact  RPS' status as a REIT.  The IRS
declined such request. In February 1995, the IRS initiated an examination of the
1991-1995  income tax  returns of RPS (the "RPS Audit"  and,  together  with the
Asset  Issue,  the "RPS Tax  Issues").  Based on  developments  in the law which
occurred since 1977,  RPS' tax counsel,  Battle Fowler LLP,  rendered an opinion
that RPS' investment in Treasury Bill repurchase obligations would not adversely
affect its REIT status. However, such opinion is not binding upon the IRS.

         In connection with the Spin-Off Transaction,  the Trust assumed all tax
liability  arising out of the RPS Tax Issues (other than  liability that relates
to events  occurring or actions  taken by RPS following the date of the Spin-Off
Transaction) pursuant to a tax agreement, dated May 10, 1996, by and between RPS
and the Trust.  Such  agreement  provides  that RPS (now named  Ramco-Gershenson
Properties  Trust) under the direction of four trustees,  three of whom are also
trustees  of the Trust (the  "Continuing  Trustees"),  and not the  Trust,  will
control,  conduct  and  effect the  settlement  of any tax  claims  against  RPS
relating to the RPS Tax Issues. Accordingly, the Trust does not have any control
as to the timing of the  resolution  or  disposition  of any such  claims and no
assurance  can be given that the  resolution or  disposition  of any such claims
will be on  terms or  conditions  as  favorable  to the  Trust  as if they  were
resolved  or  disposed of by the Trust.  During the third  quarter of 1999,  the
number  of  Continuing  Trustees  decreased  from  four to  three  upon  Herbert
Liechtung's  resignation  as a trustee of both RPS and the Trust.  Subsequent to
Mr. Liechtung's resignation, Robert A. Meister was named as a Continuing Trustee
to fill the vacancy on the board of  trustees  of RPS caused by Mr.  Liechtung's
resignation.

         RPS and the Trust  have also  received  an opinion  from  Wolf,  Block,
Schorr and Solis-Cohen LLP (the "Special Tax Counsel") that, to the extent there
is a deficiency in RPS  distributions  arising out of the IRS  examination,  and
provided  RPS timely  makes a  deficiency  dividend  (i.e.  declares  and pays a
distribution  which is  permitted  to  relate  back to the year for  which  each
deficiency  was  determined to satisfy the  requirement  that a REIT  distribute
ninety five percent (95%) of its taxable income), the classification of RPS as a
REIT for the taxable years under examination would not be affected.

         As of September  30, 1999,  the Trust has not been  required to perform
its  indemnity  obligation  with  respect to the RPS Tax Issues  other than with
respect to legal fees and  expenses  paid in  connection  with the IRS'  ongoing
examination.  On March 1, 1999, the IRS revenue agent conducting the examination
issued his examination report (the "Revenue Agent's Report") with respect to the
tax issues in the RPS Tax  Audit,  including  the RPS Tax  Issues.  The  Revenue
Agent's  Report sets forth a number of positions  which the IRS examining  agent
has taken with  respect to the RPS Tax Issues for the years that are  subject to
the RPS Audit, which Special Tax Counsel to the Continuing

                                        4
<PAGE>



                      ATLANTIC REALTY TRUST AND SUBSIDIARY
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)

Trustees  believes are not consistent with applicable law and regulations of the
IRS. One of the positions, the acquisition of assets by RPS that could be viewed
as  nonqualifying  assets for REIT  purposes,  has been addressed in the opinion
letter of counsel  referred to above.  In  addition,  the IRS revenue  agent has
proposed  to  disallow  the  deductions  for bad debts and  certain  other items
claimed by RPS in the years under  examination.  In reaching his conclusion with
respect to the  deduction for bad debts,  the IRS revenue agent has  disregarded
the fact that the values actually obtained for assets corresponded to the values
used by RPS in  determining  its bad debt  deductions.  If all of the  positions
taken in the  Revenue  Agent's  Report  were to be  sustained,  RPS,  with funds
supplied  by the  Trust,  would have to  distribute  up to  approximately  $16.5
million to its  shareholders,  in accordance  with the procedures for deficiency
dividends,  in order to preserve its status as a REIT and could, in addition, be
subject to taxes, interest and penalties up to approximately $26 million through
September 15, 1999. The issuance of the Revenue Agent's Report  constitutes only
the first step in the IRS administrative  process for determining  whether there
is any  deficiency  in RPS' tax liability for the years at issue and any adverse
determination by the IRS revenue agent is subject to administrative  appeal with
the IRS and, thereafter, to judicial review. As noted above, the Revenue Agent's
Report sets forth a number of positions which Special Tax Counsel to RPS and the
Trust believe are not consistent with applicable law and regulations of the IRS.
The  Trust  has been  informed  that  RPS has  filed  an  administrative  appeal
challenging the findings contained in the Revenue Agent's Report.

                                        5
<PAGE>



Item 2.  Management's Discussion and Analysis of Financial Condition and
Liquidation Activities.

Capital Resources and Liquidity

         At September 30, 1999, the Trust owned one retail property (Hylan Plaza
Shopping Center, located in Staten Island, New York) as well as cash and certain
other assets,  which include furniture,  fixtures and equipment.  The Trust does
not intend to make new loans or actively  engage in either the mortgage  lending
or the property acquisition business.

         The Trust's  primary  objective  has been to liquidate its assets in an
eighteen-month  period from the date of the Spin-Off Transaction while realizing
the maximum values for such assets;  however because the RPS Tax Issues have not
been satisfactorily  resolved,  the Trust has continued its business beyond such
period.  Although the Trust  considers its  assumptions  and estimates as to the
values and timing of such  liquidations to be reasonable,  the period of time to
liquidate  the assets and  distribute  the proceeds of such assets is subject to
significant business,  economic and competitive uncertainties and contingencies,
many of which are beyond the Trust's control. There can be no assurance that the
net values ultimately  realized and costs actually incurred for such assets will
not materially differ from the Trust's estimates.

         The Trust  believes that cash and cash  equivalents  on hand,  proceeds
generated by the  remaining  property and the proceeds from the eventual sale of
such property will be sufficient to support the Trust and meet its  obligations.
As of September 30, 1999,  the Trust had  approximately  $23,591,000 in cash and
short-term investments.

Item 3.  Quantitative and Qualitative Disclosure About Market Risk.

         Not applicable.

                                      6
<PAGE>



                          PART II - OTHER INFORMATION

Item 1.  Legal Proceedings.

         Not applicable.

Item 2.  Changes in Securities and Use of Proceeds.

         Not applicable.

Item 3.  Defaults Upon Senior Securities.

         Not applicable.

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

         Not applicable.

Item 5.  Other Information.

         Pursuant to the terms of the Trust's  Amended and Restated  Declaration
of Trust,  the Trust was to continue  for a period of 18 months from the date of
the Spin-Off  Transaction  (which  18-month  period ended on November 10, 1997),
subject to, among certain other things,  satisfactory  resolution of the RPS Tax
Issues.  Because the RPS Tax Issues have not yet been  satisfactorily  resolved,
the Trust has continued its business past that date. The Trust cannot  currently
estimate the timing of the future satisfactory resolution of the RPS Tax Issues.
Accordingly,  the Trust will continue  until there is a final  determination  of
these issues.

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

1.       Exhibits:  The registrant has filed the following  exhibit as a part of
         this Quarterly Report on Form 10-Q:

         Exhibit Number     Description
         --------------     -----------

         27.1               Financial Data Schedule

2.       The  registrant  has not  filed any  reports  on Form 8-K for the three
         month period ended September 30, 1999.

                                        7
<PAGE>



                                   SIGNATURES

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



                                   ATLANTIC REALTY TRUST
                                         (Registrant)


Date: November 4, 1999             /s/ Joel M. Pashcow
                                   ------------------------------
                                   Name:   Joel M. Pashcow
                                   Title:  Chairman and President
                                           (Principal Executive Officer)


Date: November 4, 1999             /s/ Edwin R. Frankel
                                   ------------------------------
                                   Name:   Edwin R. Frankel
                                   Title:  Executive Vice President, Chief
                                           Financial Officer and Secretary
                                           (Principal Financial and Accounting
                                            Officer)