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, 2002
                               -------------------------------------------------

                                       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
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

Yes    X           No
    -------           --------

         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 6, 2002 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.


<TABLE>
<CAPTION>
<S>                                                                                                                         <C>

                                                                                                                            PAGE NO.
PART I. - FINANCIAL INFORMATION

   Item 1. Financial Statements................................................................................................3

      Consolidated Statements Of Net Assets In Liquidation
      March 31, 2002 and December 31, 2001.....................................................................................3

      Consolidated Statements Of Changes In Net Assets In Liquidation - Periods
      January 1, 2002 through March 31, 2002 and January 1, 2001 through March 31, 2001........................................4

      NOTES TO CONSOLIDATED FINANCIAL STATEMENTS...............................................................................5

   Item 2. Management's Discussion and Analysis of Financial Condition and Liquidation Activities..............................8

   Item 3. Quantitative and Qualitative Disclosure About Market Risk...........................................................9

PART II. - OTHER INFORMATION

   Item 1. Legal Proceedings..................................................................................................10

   Item 2. Changes in Securities and Use of Proceeds..........................................................................10

   Item 3. Defaults Upon Senior Securities....................................................................................10

   Item 4. Submission of Matters to a Vote of Security Holders................................................................10

   Item 5. Other Information..................................................................................................10

   Item 6. Exhibits and Reports on Form 8-K...................................................................................10

   Signatures.................................................................................................................11
</TABLE>


                                       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, 2002         December 31, 2001
                                                                         --------------         -----------------

                             ASSETS

<S>                                                                       <C>                     <C>
Investment in Real Estate........................................         $  39,520,375           $  39,520,375

Cash and Short-Term Investments..................................            24,428,040              23,424,552

Other Assets.....................................................               331,100                 341,250
                                                                           ------------           -------------
Total Assets.....................................................            64,279,515              63,286,177
                                                                           ------------           -------------

                         LIABILITIES

Estimated Costs of Liquidation...................................             5,317,548               5,430,048
                                                                           ------------           -------------
Net Assets in Liquidation........................................          $ 58,961,967           $  57,856,129
                                                                           ============           =============
</TABLE>





                 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                                       3

<PAGE>



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


<TABLE>
<CAPTION>

                                                                              For the Period             For the Period
                                                                             January 1, 2002             January 1, 2001
                                                                            to March 31, 2002           to March 31, 2001
                                                                            -----------------           -----------------
<S>                                                                     <C>                             <C>
Net Assets in Liquidation
  Beginning of Period .............................................     $     57,856,129                $     58,146,371

Adjustments to Reflect
 Liquidation Basis of Accounting...................................            1,105,838                       1,115,939
                                                                        ----------------                ----------------
Net Assets in Liquidation End of Period............................     $     58,961,967                $     59,262,310
                                                                        ================                ================
</TABLE>








                 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                                       4

<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 adopted the liquidation basis of accounting
as of the  date of the  Spin-Off  Transaction  based  on its  originally  stated
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,  2001.  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 the 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 the 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.


                                       5
<PAGE>


         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.       INVESTMENT IN REAL ESTATE:

<TABLE>
<CAPTION>
                                                                      ESTIMATED NET                   ESTIMATED NET
PROPERTY                         LOCATION                      REALIZABLE VALUE 3/31/02(a)     REALIZABLE VALUE 12/31/01 (a)
--------                         --------                      ---------------------------     -----------------------------
<S>                              <C>                                     <C>                                    <C>
Hylan Shopping Center            Staten Island, NY                    $39,520,375                            $39,520,375
</TABLE>


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

(b)      The operations of the Trust and the Hylan Shopping Center for the
         quarter ended March 31, 2002 and the year ended December 31, 2001 are
         as follows:

<TABLE>
<CAPTION>
                                                                                 Quarter Ended                  Year ended
                                                                                March 31, 2002               December 31, 2001
                                                                                --------------               -----------------
<S>                                                                              <C>                          <C>
Rental Income............................................................        $      1,208,072             $      3,998,999

Expense Reimbursements...................................................                 483,493                    1,883,932

Interest from Short-Term Investments ....................................                  65,538                      675,317

Other....................................................................                   1,215                       39,095
                                                                                 ----------------             ----------------
                                                                                        1,758,318                    6,597,343
                                                                                 ----------------             ----------------
Operating Property Expenses..............................................                 603,375                    2,145,100

Depreciation.............................................................                  64,750                      259,000

General and Administrative...............................................                 429,113                    1,491,658
                                                                                 ----------------             ----------------
                                                                                        1,097,238                    3,895,758
                                                                                 ----------------             ----------------
Net Income...............................................................        $        661,080             $      2,701,585
                                                                                 ================             ================
</TABLE>


3.       SHARES OUTSTANDING:

         The  weighted   average   number  of  shares  of  beneficial   interest
outstanding  for the periods  ending  March 31, 2002 and  December  31, 2001 was
3,561,553.


                                       6
<PAGE>


4.       CASH AND SHORT-TERM INVESTMENTS:

         Cash and short-term  investments at March 31, 2002 consist primarily of
a certificate of deposit at a major New York bank of $23,650,000, purchased with
an original  maturity of three months or less,  bearing interest at a fixed rate
of 1.40%.

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 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 at that time,  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.

         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,  2002,  the Trust has not been  required to perform its
indemnity  obligation with respect to the RPS Tax Issues other than with respect
to the payment of legal fees and expenses  incurred in connection  with the IRS'
ongoing  examination.  On March 1, 1999,  the IRS revenue agent  conducting  the
examination  issued  his  examination  report  (the  "Original  Revenue  Agent's
Report") with respect to the tax issues in the RPS Tax Audit,  including the RPS
Tax Issues.  The Original Revenue Agent's Report set forth a number of positions
which the IRS  examining  agent took with  respect to the RPS Tax Issues for the
years that are  subject to the RPS Tax 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  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
disregarded  the  fact  that  the  values  actually   obtained  for  the  assets


                                       7

<PAGE>

corresponded to the values used by RPS in determining  its bad debt  deductions.
The issuance of the Original  Revenue Agent's Report  constituted 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  Original
Revenue Agent's Report set 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.  RPS filed an  administrative  appeal  (the  "Protest")
challenging the findings  contained in the Original Revenue Agent's Report.  The
appellate conferee to whom the  administrative  appeal was assigned reviewed the
Original Revenue Agent's Report and the Protest and, rather than considering the
appeal  further,  returned  the case to the revenue  agent for  further  factual
development.  During a meeting  with the Special  Tax Counsel to the  Continuing
Trustees, the appellate conferee indicated that, even assuming the assertions in
the Original Revenue Agent's Report justified the disallowances, he was required
to return the case to the revenue agent  because the facts  necessary to sustain
the assertions in the Report had not been established to the degree necessary to
permit the consideration of the case on appeal.  In response,  the revenue agent
requested  information  in  accordance  with  the  directions  of the  appellate
conferee  and,  although  much of the  information  was  examined  by the  agent
previously, RPS responded to the new request.

         On October 29, 2001,  the IRS issued a new Revenue  Agent's Report (the
"New Revenue  Agent's  Report") with respect to the issues  presented by the Tax
Audit.  The amount of the proposed  adjustments to the taxable income of RPS and
the amount of the additional taxes asserted as being due from RPS, for the years
under examination in the New Revenue Agent's Report,  include all of the amounts
included in the  Original  Revenue  Agent's  Report.  In  addition,  the IRS has
proposed to disallow the loss claimed by RPS on the disposition of the fee title
interest in a property (acquired by RPS in 1992 at foreclosure) that was made to
an unrelated third-party.  This results in the disallowance of a loss claimed by
RPS in 1994 in the  approximate  amount of $1,810,000.  The New Revenue  Agent's
Report asserts  additional grounds in support of the disallowance of the RPS bad
debt deductions in the years under examination. If all of the positions taken in
the New Revenue Agent's Report were to be sustained, RPS, with funds which could
be 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  $39.4  million
through  March  31,  2002.  The  Trust has been  advised  that  Ramco-Gershenson
Properties  Trust timely filed a new  administrative  appeal (the "New Protest")
challenging  the  determinations  made. No action has been taken by the IRS with
respect to the New Protest.

6.       OTHER ASSETS:

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

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         LIQUIDATION ACTIVITIES.

CAPITAL RESOURCES AND LIQUIDITY

         At March 31,  2002,  the Trust owned one retail  property  (Hylan Plaza
Shopping Center, located in Staten Island, New York) as well as cash and certain
other assets.  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


                                       8

<PAGE>

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 and proceeds
from the eventual  sale of such property will be sufficient to support the Trust
and meet its  obligations.  As of March 31,  2002,  the Trust had  approximately
$24,428,000 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 on the Trust or its investment.

RESULTS OF OPERATIONS

         As a result of the Trust adopting the  liquidation  basis of accounting
in accordance with accounting principles generally accepted in the United States
of  America 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.


                                       9

<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.

(a)       Exhibits.
          None.

(b)       Reports on Form 8-K.
          The  registrant  has  not  filed  any  reports  on  Form  8-K  for the
          three-month period ended March 31, 2002.


                                       10

<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 13, 2002                    /s/ Joel M. Pashcow
                                        -------------------
                                        Name:  Joel M. Pashcow
                                        Title:  Chairman and President
                                                (Principal Executive Officer)


Date:  May 13, 2002                    /s/ Edwin R. Frankel
                                        --------------------
                                        Name:  Edwin R. Frankel
                                        Title: Executive Vice President,
                                               Chief Financial Officer
                                               and Secretary
                                               (Principal Financial and
                                               Accounting Officer)


                                       11