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 March 31, 2000
                                        .......................................
 .
                                       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 incorporation       (I.R.S. Employer
               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 May 8, 2000 was 3,561,553.



948482.2


<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.

<TABLE>
<CAPTION>

Part I-- FINANCIAL INFORMATION                                                                       PAGE NO.
                                                                                                     --------
<S>                                                                                                        <C>
Item 1.  Financial Statements.

         Consolidated Statements of Net Assets in Liquidation--
         March 31, 2000 and December 31, 1999...............................................................1

         Consolidated Statements of Changes in Net Assets in Liquidation--
         Period January 1, 2000 through March 31, 2000 and January 1,1999 through March 31, 1999............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
</TABLE>



948482.2

<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)


<TABLE>
<CAPTION>

                                                                       March 31, 2000            December 31, 1999
                                                                       --------------            -----------------
<S>                                                                      <C>                        <C>
ASSETS

Investment in Real Estate.........................................       $ 37,700,000              $ 37,775,000

Cash and Short Term Investments...................................         24,345,660                23,039,132

Other Assets......................................................          1,100,000                 1,012,000
                                                                          -----------               -----------
        Total Assets..............................................         63,145,660                61,826,132
                                                                           ----------                ----------
LIABILITIES
Estimated Costs of Liquidation....................................          4,316,523                 4,394,443
                                                                         ------------               -----------
          Total Liabilities.......................................          4,316,523                 4,394,443
                                                                         ------------               -----------
          Net Assets in Liquidation...............................       $ 58,829,137              $ 57,431,689
                                                                         ============              ============
</TABLE>












                 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



948482.2
                                        1

<PAGE>




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



<TABLE>
<CAPTION>

                                                                    For the Period
                                                                  January 1, 2000 to
                                                                    March 31, 2000
                                                                   ----------------
<S>                                                                    <C>
Net Assets in Liquidation
   Beginning of Period.......................................          $57,431,689

Adjustments to Reflect
   Liquidation Basis of Accounting...........................            1,397,448
                                                                       -----------
Net Assets in Liquidation End of Period......................          $58,829,137
                                                                       ===========
</TABLE>



<TABLE>
<CAPTION>

                                                                    For the Period
                                                                  January 1, 1999 to
                                                                    March 31, 1999
                                                                   ----------------
<S>                                                                    <C>
Net Assets in Liquidation
   Beginning of Period.......................................          $56,211,889

Adjustments to Reflect
   Liquidation Basis of Accounting...........................              101,530
                                                                       -----------
Net Assets in Liquidation End of Period......................          $56,313,419
                                                                       ===========
</TABLE>













                 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



948482.2
                                        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,  its 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.  The
Trust  intends  to  conduct  its  operations  with the  intent  of  meeting  the
requirements  applicable  to a  real  estate  investment  trust  ("REIT")  under
Sections 856 through 860 of the Internal  Revenue Code of 1986,  as amended (the
"Code").  As a result,  the Trust will have no current  or  deferred  income tax
liabilities.

         In the opinion of management,  the accompanying  consolidated financial
statements,  which have not been audited,  include all adjustments  necessary to
present fairly the results for the interim periods.  Such  adjustments  consists
only of normal recurring accruals.

         The  consolidated  financial  statements  should be read in conjunction
with the annual  financial  statements and notes thereto included in the Trust's
annual report on form 10-K filed with the Securities and Exchange Commission for
the year ended  December  31,  1999.  The results of interim  periods may not be
indicative of the results for the entire year.

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 Consolidated 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 the
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.  Changes in these costs during the periods  presented are reflected in
the adjustments to reflect liquidation basis of accounting.  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.



948482.2
                                        3

<PAGE>


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

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.       Investment in Real Estate:
<TABLE>
<CAPTION>

                                                       Estimated Net                  Estimated Net
Property                    Location            Realizable Value 3/31/00(a)    Realizable Value 12/31/99 (a)
--------                    --------            ---------------------------    -----------------------------
<S>                       <C>                           <C>                            <C>
Hylan Shopping Center     Staten Island, NY             $37,700,000                    $37,775,000
</TABLE>

----------

(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.       Shares Outstanding:

         The  weighted   average   number  of  shares  of  beneficial   interest
outstanding  for the periods  ending  March 31, 2000 and  December  31, 1999 was
3,561,553.

4.       Cash and Short-Term Investments:

         Cash and short-term  investments at March 31, 2000 consist primarily of
a  Certificate  of  Deposit  at a major  New York  bank of  $23,250,000  bearing
interest at a fixed rate of 4.95%.

5.       Income Taxes:

         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  (the  "IRS") may view as non-  qualifying
assets for the purposes of satisfying an asset  qualification test applicable to
REITs,  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 the resignation
of Herbert  Leichtung as a trustee of both RPS and the Trust.  Subsequent to Mr.
Leichtung'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.  Leichtung's
resignation.



948482.2
                                        4

<PAGE>


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

         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 March 31,  2000,  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 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  non-qualifying  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 the 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 $28 million through March 31,
2000. 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.   The
administrative appeal is pending with the IRS.

6.       Other Assets:

         Other assets include the projected  income from the Trust's  short-term
investments.






948482.2
                                        5

<PAGE>



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

Capital Resources and Liquidity

         At March 31,  2000,  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 real  estate  property  that it owns and  operates  (the Hylan
Center) and proceeds  from the eventual sale of such property will be sufficient
to support the Trust and meet its  obligations.  As of March 31, 2000, the Trust
had approximately $24,345,000 in cash and short-term investments.

Inflation

         Inflation has been consistently low during the periods presented in the
consolidated  financial  statements and, as a result,  has not had a significant
effect on the operations of the Trust or its investment.

Year 2000 Issue

         As of March  31,  2000,  the Trust  did not  discover  any Year 2000 or
similar computer  problems in its internal systems or with regard to any vendor,
tenant or other third party computer systems.  The Trust will continue to assess
all of its internal systems for operational  effectiveness and efficiency beyond
Year 2000 concerns.  In the event that the Trust  discovers Year 2000 or similar
computer  problems in its internal  systems,  the Trust will endeavor to resolve
these problems by making  modifications to its systems or purchasing new systems
on a timely basis.

Results of Operations

         As a result of the Trust adopting the  liquidation  basis of accounting
in accordance with generally accepted  accounting  principles as of May 10, 1996
and thus not reporting results of operations thereafter,  there is no management
discussion comparing the corresponding periods.

Item 3.  Quantitative and Qualitative Disclosure About Market Risk.

         Not applicable.



948482.2
                                        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 March 31, 2000.



948482.2
                                        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: May 9, 2000                         /s/ Joel M. Pashcow
                                            -------------------
                                            Name:  Joel M. Pashcow
                                            Title: Chairman and President
                                                   (Principal Executive Officer)


Date: May 9, 2000                         /s/ Edwin R. Frankel
                                            --------------------
                                            Name:  Edwin R. Frankel
                                            Title: Executive Vice President,
                                                   Chief Financial Officer and
                                                   Secretary
                                                   (Principal Financial and
                                                   Accounting Officer)



948482.2