----

**UNITED        STATES **

**SECURITIES        AND EXCHANGE COMMISSION **

**Washington,        D. C. 20549 **

----

**FORM        10-Q **

| **x** | **QUARTERLY                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934** |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ** ̈** | **TRANSITION                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                  ACT OF                  1934** |
|------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

----

**LIGHTSTONE        VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. **

**(Exact        Name of Registrant as Specified in Its Charter) **

| **Maryland**                                                                                            |    | **20-1237795**                                               |
|---------------------------------------------------------------------------------------------------------|--------------|--------------------------------------------------------------|
| **(State                  or Other Jurisdiction****of                  Incorporation or Organization)** |         | **(I.R.S.                  Employer****Identification No.)** |
|                                                                                                    |         |                                                         |

| **326                  Third Street**                         |         |                            |
|---------------------------------------------------------------|--------------|---------------------------------|
| **Lakewood,                  New Jersey**                     |    | **08701**                       |
| **(Address                  of Principal Executive Offices)** |    | **(Zip                  Code)** |

**(732)        367-0129**

**(Registrant’s        Telephone Number, Including Area Code) **

----

----

**LIGHTSTONE        VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. **

**INDEX        **

|                     |    |                                                                                                                                                                                                                                                                                                                   |    | **Page** |
|--------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|----------|
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| **PART I**          |    | **FINANCIAL                  INFORMATION**                                                                                                                                                                                                                                                                             |    | 3        |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| Item 1.             |    | Financial                  Statements                                                                                                                                                                                                                                                                                  |    | 3        |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
|                     |    | Lightstone                  Value Plus Real Estate Investment Trust, Inc. and Subsidiary Consolidated                  Balance Sheets as of September 30, 2005 (unaudited) and December                  31,                  2004                                                                                     |    | 3        |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
|                     |    | Lightstone                  Value Plus Real Estate Investment Trust, Inc. and Subsidiary Consolidated                  Statements of Cash Flows (unaudited) for the nine months ended                  September                  30, 2005 and for the period from June 8, 2004 to September 30,                  2004 |    | 4        |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
|                     |    | Notes                  to Consolidated Financial Statements                                                                                                                                                                                                                                                            |    | 5        |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| Item 2.             |    | Management’s                  Discussion and Analysis of Financial Condition and Results of                  Operations                                                                                                                                                                                          |    | 12       |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| Item 3.             |    | Quantitative                  and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                            |    | 20       |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| Item 4.             |    | Controls                  and Procedures                                                                                                                                                                                                                                                                               |    | 20       |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| **PART II**         |    | **OTHER                  INFORMATION**                                                                                                                                                                                                                                                                                 |    | 20       |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| Item                  1. |    | Legal                  Proceedings                                                                                                                                                                                                                                                                                     |    | 20       |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| Item                  2. |    | Unregistered                  Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                           |    | 21       |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| Item                  3. |    | Defaults                  Upon Senior Securities                                                                                                                                                                                                                                                                       |    | 21       |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| Item                  4. |    | Submission                  of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                   |    | 21       |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| Item                  5. |    | Other                  Information                                                                                                                                                                                                                                                                                     |    | 21       |
|                     |         |                                                                                                                                                                                                                                                                                                                   |         |     |
| Item                  6. |    | Exhibits                                                                                                                                                                                                                                                                                                               |    | 22       |

----

**PART        I. FINANCIAL INFORMATION: **

**ITEM        1. FINANCIAL STATEMENTS. **

**  **

** **

**LIGHTSTONE        VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. AND SUBSIDIARY**

**CONSOLIDATED        BALANCE SHEETS**

|                                                                                                                                                |   | **September                  30, 2005** |    | **December 31, 2004** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|---------|---------------------------------|--------|
|                                                                                                                                                |   | **(unaudited)**                              |    |                            |   |
| ***Assets***                                                                                                                                        |   |                                         |    |                            |   |
| Cash                  and cash equivalents                                                                                                          |   | $                                            | 202,000 |                            | $      | 205,489 |   |
|                                                                                                                                                |   |                                         |    |                            |   |   |   |
|                                                                                                                                                |   |                                         |    |                            |   |   |   |
| ***Liabilities                  and Stockholder’s Equity***                                                                                   |   |                                         |         |                            |   |  |   |
| Due                  to affiliate                                                                                                                   |   | $                                            | — |                            | $      | 3,489 |   |
| Minority                  interest                                                                                                                  |   |                                         | 2,000   |                            |   | 2,000 |   |
| Stockholder’s                  equity:                                                                                                        |   |                                         |         |                            |   |  |   |
| Preferred                  shares, 10,000,000 shares authorized, none outstanding                                                                   |   |                                         |    |                            |   |   |   |
| Common                  stock, $.01 par value; 60,000,000 shares authorized, 20,000 shares                  issued                  and outstanding |   |                                         | 200     |                            |   | 200 |   |
| Additional                  paid-in-capital                                                                                                         |   |                                         | 199,800 |                            |   | 199,800 |   |
| Retained                  earnings                                                                                                                  |   |                                         | — |                            |   | — |   |
|                                                                                                                                                |   |                                         |    |                            |   |   |   |
| Total                  stockholder’s equity                                                                                                   |   |                                         | 200,000 |                            |   | 200,000 |   |
|                                                                                                                                                |   |                                         |         |                            |   |   |   |
| **Total                  Liabilities and Stockholder’s Equity**                                                                               |   | $                                            | 202,000 |                            | $      | 205,489 |   |
|                                                                                                                                                |   |                                         |    |                            |   |   |   |

----

**PART        I. FINANCIAL INFORMATION, CONTINUED: **

**ITEM        1. FINANCIAL STATEMENTS, CONTINUED:**

**LIGHTSTONE        VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC. AND SUBSIDIARY**

**CONSOLIDATED        STATEMENT OF CASH FLOWS**

**(UNAUDITED)        **

|                                                                                                         |   | **Nine Months Ended****September                    30, 2005** |    |  **For                    the Period From Inception (June 8, 2004) Through September 30,                    2004** |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------|---------|-------------------------------------------------------------------------------------------------------------------------|--------|
| **Cash                    Flows From Operating Activities**                                                  |   |                                                                     |    |                                                                                                                    |   |
|                                                                                                         |   |                                                                     |    |                                                                                                                    |   |
| Decrease                    in amounts due to affiliate                                                      |   | $                                                                        | (3,489  | )                                                                                                                       | $      | — |   |
| Net                    cash provided by (used in) operating activities                                       |   |                                                                     | (3,489  | )                                                                                                                       |   | — |   |
| **Cash                    Flows From Financing Activities**                                                  |   |                                                                     |         |                                                                                                                    |   |  |   |
| Proceeds                    from issuance of common stock                                                    |   |                                                                     | — |                                                                                                                    |   | 200,000 |   |
| Capital                    contribution from minority partner in consolidated                    partnership |   |                                                                     | — |                                                                                                                    |   | 2,000 |   |
| Net                    cash provided by financing activities                                                 |   |                                                                     | — |                                                                                                                    |   | 202,000 |   |
| Net                    increase (decrease) in cash and cash equivalents                                      |   |                                                                     | (3,489  | )                                                                                                                       |   | 202,000 |   |
|                                                                                                         |   |                                                                     |    |                                                                                                                    |   |   |   |
| Cash                    and cash equivalents-beginning of period                                             |   |                                                                     | 205,489 |                                                                                                                    |   | — |   |
| Cash                    and cash equivalents—end of period                                             |   | $                                                                        | 202,000 |                                                                                                                    | $      | 202,000 |   |

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        1. FINANCIAL STATEMENTS, CONTINUED:**

**1.        **
***Organization***
** **

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        1. FINANCIAL STATEMENTS, CONTINUED:**

** **

**2.        **
***Summary        of Significant Accounting Policies***
** **

***Basis        of Presentation***

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        1. FINANCIAL STATEMENTS, CONTINUED:**

***   ***

*** ***

***Cash        Equivalents***

***Principles        of Consolidation***

***Use        of Estimates***

**Income        Taxes **

***Organization        and Offering Costs***
* *

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        1. FINANCIAL STATEMENTS, CONTINUED:**

**3.        **
***Related        Party Transactions***
** **

| **Fees                  /****Compensation**** ** |    | **Amount**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-------------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                  |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Selling                  Commission                   |    | The                  Dealer Manager will be paid up to 7% of the gross offering proceeds                  before                  reallowance of commissions earned by participating broker-dealers.                  The                  estimated selling commissions are expected to be approximately                  $140,000,                  if the minimum offering is sold, and approximately $21,000,000                  if the                  maximum offering is sold.                                                                                                                                                  |
|                                                  |         |
| Dealer                  Management Fee                |    | The                  Dealer Manager will be paid up to 1% of gross offering proceeds                  before                  reallowance to participating broker-dealers. The estimated dealer                  management fee is expected to be approximately $20,000, if the                  minimum                  offering of shares is sold, and approximately $3,000,000 if the                  maximum                  offering is sold.                                                                                                                                                                                    |
|                                                  |         |
| Soliciting                  Dealer Warrants           |    | The                  Dealer Manager may buy up to 600,000 warrants at a purchase price                  of                  $.0008 per warrant. Each warrant will be exercisable for one share                  of the                  company’s common stock at an exercise price of $12.00 per                  share.                                                                                                                                                                                                                                                                                                          |
|                                                  |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Reimbursement                  of Offering Expenses   |         | The                  Company estimates offering costs of approximately $300,000, if                  the minimum                  offering is sold, and approximately $30,000,000 if the maximum                  offering is                  sold. After having sold at least the minimum offering amount, the                  Company                  will reimburse offering costs paid by the Advisor or its affiliates                  on the                  Company’s behalf. If the minimum offering is not sold, the Company will                  not be responsible for the costs of its organization or offering. |
|                                                  |         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Reimbursement                  of Other Expenses      |         | The                  Advisor or its affiliates will be reimbursed for expenses that                  may include                  costs of goods and services, administrative services and non-supervisory                  services performed directly for the Company by independent                  parties.                                                                                                                                                                                                                                                                                                                         |

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        1. FINANCIAL STATEMENTS, CONTINUED:**

**3.        **
***Related        Party Transactions (continued):***

***  ***

| **Fees                  /****Compensation**                                   | **  ** | **Amount**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-------------------------------------------------------------------------------|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                          |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Acquisition                  Fee                                              |        | The                  Advisor will be paid 2.75% of the gross contract purchase price                  of any                  property purchased by an affiliate. The acquisition fee and expenses                  for                  any particular property will not exceed, in the aggregate, 5% of                  the gross                  contract purchase price of the property.  The                  following amounts may be paid as an acquisition fee, and for the                  reimbursement of acquisition expenses including but not limited                  to legal                  fees and expenses, travel and communication, cost of appraisals,                  nonrefundable option payments on property not acquired, accounting                  fees,                  title insurance and miscellaneous expenses related to selection                  and                  acquisition of properties: a maximum of $55,000 ($220,000, assuming                  long-term permanent leverage of approximately 75%) if the minimum                  number                  of shares are sold; $8,250,000 ($33,000,000, assuming long-term                  permanent                  leverage of approximately 75%) if the maximum number of shares                  are sold.                  However, the actual amounts cannot be determined at the present                  time. |
|                                                                          |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Property                  Management -*Residential                  / Retail* |             | The                  Property Manager will be paid a monthly management fee of 5% of                  the gross                  revenues from residential and retail properties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                          |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Property                  Management -*Office                  / Industrial*  |             | The                  Property Manager will be paid monthly property management and leasing                  fees                  of up to 4.5% of gross revenues from office and industrial properties.                  In                  addition, the Company may pay the Property Manager a separate fee                  for the                  one-time initial rent-up or leasing-up of newly constructed properties                  in                  an amount not to exceed the fee customarily charged in arm’s length                  transactions by others rendering similar services in the same geographic                  area for similar properties as determined by a survey of brokers                  and                  agents in such area.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        1. FINANCIAL STATEMENTS, CONTINUED:**

**3.        **
***Related        Party Transactions (continued):***

| **Fees                  /****Compensation**** ** | **  ** | **Amount**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------------------------------------------------|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                  |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Asset                  Management Fee                 |             | The                  Advisor or its affiliates will be paid an asset management fee                  of 0.55% of                  the Company’s average invested assets, as defined, payable quarterly in an                  amount equal to 0.1375 of 1% of average invested assets as of the                  last day                  of the immediately proceeding quarter.  For                  any year in which the Company qualifies as a REIT, the Advisor                  must                  reimburse the Company for the amounts, if any, by which the total                  operating expenses, the sum of the advisor asset management fee                  plus other                  operating expenses paid during the previous fiscal year exceed                  the greater                  of 2% of average invested assets, as defined, for that fiscal year,                  or,                  25% of net income for that fiscal year. Items such as interest                  payments,                  taxes, non-cash expenditures, the special liquidation distribution,                  the                  special termination distribution, organization and offering expenses,                  and                  acquisition fees and expenses are excluded from the definition                  of total                  operating expenses, which otherwise includes the aggregate expense                  of any                  kind paid or incurred by the                  Company. |

** **
** **
** **
** **

|                                                  |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-------------------------------------------------------|--------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Operating                  Stage****Distributions** |                     | **Amount                  of Distribution**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                  |                     |
| 7%                  Stockholder Return Threshold      |      | Once                  a 7% return on their net investment is realized by stockholders,                  Lightstone SLP, LLC will receive available distributions from the                  Operating Partnership until it has received an amount equal to                  a                  cumulative non-compounded return of 7% per year on the purchase                  price of                  the special general partner interests. “Net investment” refers to $10 per                  share, less a pro rata share of any proceeds received from the                  sale or                  refinancing of the Company’s assets. |
|                                                  |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        1. FINANCIAL STATEMENTS, CONTINUED:**

**3.        **
***Related        Party Transactions (continued):***

|                  **Operating                  Stage****Distributions** |                     | **Amount                  of Distribution**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----------------------------------------------------------------------------|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                        |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 12%                  Stockholder Return Threshold                           |      | Once                  a cumulative non-compounded return of 12% per year is realized                  by                  stockholders on their net investment (including amounts equaling                  a 7%                  return on their net investment as described above), 70% of the                  aggregate                  amount of any additional distributions from the Operating Partnership                  will                  be payable to the stockholders, and 30% of such amount will be                  payable to                  Lightstone SLP, LLC. |
|                                                                        |                     |
| Returns                  in Excess of 12%                                   |                     | After                  the 12% return threshold is realized by stockholders and Lightstone                  SLP,                  LLC, 60% of any remaining distributions from the Operating Partnership                  will be distributable to stockholders, and 40% of such amount will                  be                  payable to Lightstone SLP, LLC.                                                                                                                                                                                                                          |

** **
** **
** **

| **Liquidating                  Stage****Distributions** |                     | **Amount                  of Distribution**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------------------------------------------------------|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                    |                     |
| 7%                  Stockholder Return Threshold        |      | Once                  stockholders have received liquidation distributions, and a cumulative                  non-compounded 7% return on their initial net investment, Lightstone                  SLP,                  LLC will receive available distributions until it has received                  an amount                  equal to its initial purchase price of the special general partner                  interests plus a cumulative non-compounded return of 7% per                  year.                                                                                                     |
|                                                    |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 12%                  Stockholder Return Threshold       |      | Once                  stockholders have received liquidation distributions, and a cumulative                  non-compounded return of 12% per year on their initial net investment                  (including amounts equaling a 7% return on their net investment                  as                  described above), 70% of the aggregate amount of any additional                  distributions from the Operating Partnership will be payable to                  the                  stockholders, and 30% of such amount will be payable to Lightstone                  SLP,                  LLC. |

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        1. FINANCIAL STATEMENTS, CONTINUED:**

**3.        **
***Related        Party Transactions (continued):***

| **Liquidating                  Stage****Distributions** |   | **Amount                  of Distribution**                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Returns                  in Excess of 12%               |   | After                  stockholders and Lightstone LP, LLC have received liquidation                  distributions, and a cumulative non-compounded return of 12% per                  year on                  their initial net investment, 60% of any remaining distributions                  from the                  Operating Partnership will be distributable to stockholders, and                  40% of                  such amount will be payable to Lightstone SLP,                  LLC. |

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS. **

**Forward-Looking        Statements **

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS, CONTINUED:**

**Overview        **

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS, CONTINUED:**

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS, CONTINUED:**

**LIQUIDITY        AND CAPITAL RESOURCES **

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS, CONTINUED: **

**RESULTS        OF OPERATIONS **

**CRITICAL        ACCOUNTING POLICIES **

***Revenue        Recognition and Collectibility of Related Receivables***

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS, CONTINUED:**

***Investments        in Real Estate***

***Real        Estate Purchase Price Allocation***

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS, CONTINUED: **

*e.g.*

***Joint        Venture Investments***

*Consolidation        of Variable Interest Entities*
*The        Equity Method of Accounting for Investments in Common Stock*

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF        OPERATIONS, CONTINUED: **

*Accounting        for Investments in Real Estate Ventures*
*Investors        Accounting for an Investee When the Investor has the Majority of the Voting        Interest but the Minority Partners have Certain Approval or Veto        Rights*

***Accounting        for Derivative Financial Investments and Hedging Activities***

*** ***

----

**PART        I. FINANCIAL INFORMATION, CONTINUED:**

**ITEM        3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.**

**ITEM        4. CONTROLS AND PROCEDURES. **

**PART        II. OTHER INFORMATION: **

**ITEM        1. LEGAL PROCEEDINGS**

----

**PART        II. OTHER INFORMATION, CONTINUED:**

**ITEM        2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

**ITEM        3. DEFAULTS UPON SENIOR SECURITIES**

**ITEM        4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS **

**ITEM        5. OTHER INFORMATION. **

----

**PART        II. OTHER INFORMATION, CONTINUED:**

**ITEM        6. EXHIBITS**

|                  |         |                                                                                                                                                                      |                                                                                                                                                                                                                                                            |
|-----------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Exhibit****Number** |         |  **Description**                                                                                                                                                     |
|                  |         |
| 3.1                   |  *      |                                                                                                                                                                 | Amended                  and Restated Charter of Lightstone Value Plus Real Estate Investment                  Trust, Inc.                                                                                                                                 |
|                  |         |
| 3.2                   |  *      |                                                                                                                                                                 | Bylaws                  of Lightstone Value Plus Real Estate Investment Trust,                  Inc.                                                                                                                                                            |
|                  |         |
| 4.1                   | *            |                                                                                                                                                                 | Amended                  and Restated Agreement of Limited Partnership of Lightstone Value                  Plus                  REIT LP.                                                                                                                 |
|                  |         |
| 10.1                  |  *      |                                                                                                                                                                 | Escrow                  Agreement by and among Lightstone Value Plus Real Estate Investment                  Trust,                  Inc., Trust Company of America and Lightstone                  Securities.                                                 |
|                  |         |
| 10.2                  |  *      |                                                                                                                                                                 | Advisory                  Agreement by and among Lightstone Value Plus Real Estate Investment                  Trust,                  Inc., Lightstone Value Plus REIT LLC.                                                                                    |
|                  |         |
| 10.3                  |  *      |                                                                                                                                                                 | Management                  Agreement, by and among Lightstone Value Plus Real Estate Investment                  Trust, Inc., Lightstone Value Plus REIT LP and Lightstone Value                  Plus REIT                  Management LLC.                   |
|                  |         |
| 10.4                  | *            |                                                                                                                                                                 | Form                  of the Company’s Stock Option Plan.                                                                                                                                                                                                 |
|                  |         |
| 10.5                  | *            |                                                                                                                                                                 | Form                  of Indemnification Agreement by and between The Lightstone Group                  and the                  directors and executive officers of Lightstone Value Plus Real                  Estate                  Investment Trust, Inc. |
|                  |         |
| 10.6             |  *      |                                                                                                                                                                      | Agreement                  by and among Lightstone Value Plus REIT LP, Lightstone SLP, LLC,                  and David                  Lichtenstein.                                                                                                           |
|                  |         |                                                                                                                                                                      |                                                                                                                                                                                                                                                            |
| 31.1                  |         |                                                                                                                                                                 | Certification                  Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302                  of the                  Sarbanes-Oxley Act of 2002                                                                                               |
|                  |         |
| 31.2                  |         |                                                                                                                                                                 | Certification                  Pursuant to Rule 13a-14(a), as Adopted Pursuant to Section 302                  of the                  Sarbanes-Oxley Act of 2002                                                                                               |
|                  |         |
| 32.1                  |    | Certification                  Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002 |
|                  |         |
| 32.2                  |    | Certification                  Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section                  906 of                  the Sarbanes-Oxley Act of 2002 |

| * | Incorporated                  by reference from Lightstone Value Plus Real Estate Investment                  Trust,                  Inc.’s Registration Statement on Form S-11 (File No. 333-117367). |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES        **

|                                              |   |                                                                          |   |                                                                                                                                                                                                |
|---------------------------------------------------|--------|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              |   |
|                                         |   | **LIGHTSTONE                  VALUE PLUS REAL ESTATE INVESTMENT TRUST, INC.** |
|                                              |   |                                                                          |
| Date: November                  4, 2005 |   | By:                                                                           |   | /s/    David                  Lichtenstein                                                                                                                                      |
|                                              |   |                                                                          |   | David                  LichtensteinPresident,                  Chief Executive Officer and Director(Principal                  Executive Officer)                                                   |
|                                              |   |
|                                         |   |                                                                          |
|                                              |   |                                                                          |
| Date: November                  4, 2005 |   | By:                                                                           |   | /s/    Michael                  M. Schurer                                                                                                                                      |
|                                              |   |                                                                          |   | Michael                  M. SchurerChief                  Financial Officer and Treasurer(Duly                  Authorized Officer and Principal Financial and Accounting                  Officer) |

----