SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

(Mark One)


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

For the quarterly period ended June 30, 1997

                                       OR


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

                         Commission File Number 0-23972

                        AMERICAN MORTGAGE INVESTORS TRUST
             (Exact name of registrant as specified in its charter)

        Massachusetts                                           13-6972380
(State or other jurisdiction of                              (I.R.S. Employer
incorporation or organization)                              Identification No.)

625 Madison Avenue, New York, New York                            10022
(Address of principal executive offices)                        (Zip Code)

Registrant's telephone number, including area code (212)421-5333

     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 [_]



<PAGE>

                                     PART I

Item 1.  Financial Statements

                        AMERICAN MORTGAGE INVESTORS TRUST
                                 Balance Sheets
                                   (Unaudited)

                                                 ============      ============
                                                   June 30,         December 31,
                                                     1997              1996
                                                 ------------      ------------

ASSETS
Investments in loans (Note 2)                    $ 46,609,541      $ 45,049,596
Investment in REMIC and GNMA
   Certificates and FHA
   Insured Project Loan (Note 3)                   12,508,436        12,683,331
Cash and cash equivalents                           2,642,073         4,828,561
Organization costs (net of
   accumulated amortization
   of $40,000 and $35,000,
   respectively)                                       10,000            15,000
Deferred costs                                          9,549            12,581
Accrued interest receivable                           530,926           558,146
                                                 ------------      ------------

    Total assets                                 $ 62,310,525      $ 63,147,215
                                                 ============      ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
   Accounts payable and
    accrued expenses                             $     93,198      $     99,768
   Due to affiliates (Note 4)                       1,148,136           886,783
                                                 ------------      ------------
Total liabilities                                   1,241,334           986,551
                                                 ------------      ------------

Commitments (Note 5)

Shareholders' equity:
   Shares of beneficial interest;
    $.10 par value; 12,500,000
    shares authorized; 4,047,098
    and 4,010,000 shares issued
    and outstanding, respectively                     404,711           401,001
   Treasury stock; $.10 par value;
    206,214 and 169,115 shares,
    respectively                                      (20,622)          (16,912)
   Additional paid-in capital                      68,849,569        68,849,567
   Accumulated deficit                             (8,066,393)       (6,991,606)
   Net unrealized loss on marketable
    securities (Note 3)                               (98,074)          (81,386)
                                                 ------------      ------------

Total shareholders' equity                         61,069,191        62,160,664
                                                 ------------      ------------

Total liabilities and shareholders'
   equity                                        $ 62,310,525      $ 63,147,215
                                                 ============      ============


                 See Accompanying Notes to Financial Statements


                                       2
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                            Statements of Operations
                                   (Unaudited)

                         =========================    =========================
                             Three Months Ended           Six Months Ended
                                  June 30,                     June 30,
                             1997          1996           1997          1996
                         -------------------------    -------------------------
Revenues:
 Interest income:

 Mortgage loans
  (Note 2)               $   784,218   $   787,882    $ 1,560,730   $ 1,395,634
 REMIC and
  GNMA
  Certificates
  and FHA
  Insured
  Project Loan
  (Note 3)                   225,791       353,174        486,032       715,338
 Temporary
  investments                 52,350        57,167         96,266       125,253
                         -----------   -----------    -----------   -----------

 Total revenues            1,062,359     1,198,223      2,143,028     2,236,225
                         -----------   -----------    -----------   -----------

Expenses:
 General and
  administrative              71,409        73,058        106,115       106,568
 General and
  administrative -
  related parties
  (Note 4)                   145,369       152,461        261,168       290,723
 Realized (gain)
  loss on sale
  of REMICs
  and GNMAs
  and FHA
  Insured
  Project Loan
  (Note 3)                    51,776          (740)        61,772        (1,822)
 Amortization                  2,500         2,500          5,000         5,000
                         -----------   -----------    -----------   -----------

  Total expenses             271,054       227,279        434,055       400,469
                         -----------   -----------    -----------   -----------

  Net income             $   791,305   $   970,944    $ 1,708,973   $ 1,835,756
                         ===========   ===========    ===========   ===========

  Net income
   per weighted
   average share         $       .19   $       .24    $       .42   $       .46
                         ===========   ===========    ===========   ===========


                 See Accompanying Notes to Financial Statements


                                       3
<PAGE>


<TABLE>
<CAPTION>
                                                  AMERICAN MORTGAGE INVESTORS TRUST
                                            STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
                                                             (Unaudited)

                                                                                                           Net Unrealized Loss
                           Shares of Beneficial Interest   Treasury Stock     Additional    Accumulated       on Securities
                                   Shares     Amount    Shares      Amount  Paid-in Capital     Deficit  Available for Sale  Total 
                                   ------     ------    ------      ------  ---------------     -------  ------------------  ----- 

<S>                             <C>        <C>        <C>        <C>         <C>            <C>            <C>         <C>         
Balance at
   January 1, 1997              4,010,000  $ 401,001  (169,115)  $ (16,912)  $ 68,849,567   $ (6,991,606)  $ (81,386)  $ 62,160,664
Net Income                              0          0         0           0              0      1,708,973           0      1,708,973
Distributions                           0          0         0           0              0     (2,783,760)          0     (2,783,760)
Purchase of Treasury Stock              0          0   (37,099)     (3,710)      (701,164)             0           0       (704,874)
Issuance of shares of
   beneficial interest             37,098      3,710         0           0        701,166              0           0        704,876
Change in net unrealized
   loss on
   securities available
   for sale (Note 3)                    0          0         0           0              0              0     (16,688)       (16,688)
                                ---------  ---------  --------   ---------   ------------   ------------   ---------   ------------
 Balance at
   June 30, 1997                4,047,098  $ 404,711  (206,214)  $ (20,622)  $ 68,849,569   $ (8,066,393)  $ (98,074)  $ 61,069,191
                                =========  =========  ========   =========   ============   ============   =========   ============
</TABLE>


                See accompanying notes to financial statements.

                                       4
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                            Statements of Cash Flows
                                   (Unaudited)

                                                     ==========================
                                                         Six Months Ended
                                                              June 30,
                                                     --------------------------
                                                         1997           1996
                                                     --------------------------
Cash flows from operating activities:
   Net income                                        $ 1,708,973    $ 1,835,756
                                                     -----------    -----------
Adjustments to reconcile net income
   to net cash provided by
   operating activities
    Amortization expense -
      organization costs                                   5,000          5,000
    Amortization expense - loan
      premium and origination costs                      238,375        238,729
    Amortization of REMIC premium                            585         11,725
    Amortization of REMIC
      and GNMA and FHA
      Insured Project Loan discount                      (18,215)       (23,493)
    (Gain) loss on sale of REMIC
      certificates                                        17,764           (466)
    (Gain) loss on sale of GNMAs                             927           (784)
    (Gain) loss on sale of FHA
      Insured Project Loan                                43,080           (572)
Changes in operating assets and
   liabilities:
   Decrease (increase) in accrued
    interest receivable                                   27,220       (192,397)
   Increase in due to affiliates                         261,353        182,924
   Decrease (increase) in accounts
    payable and accrued expenses                          (6,570)        18,953
                                                     -----------    -----------
    Total adjustments                                    569,519        239,619
                                                     -----------    -----------
   Net cash provided by
    operating activities                               2,278,492      2,075,375
                                                     -----------    -----------

Cash flows from investing activities:
   Investments in loans                               (1,888,948)    (1,948,746)
   Principal repayments of loans                          93,660         86,886
   Purchase of REMIC Certificates                     (1,889,817)             0
   Purchase of GNMA Certificate                       (1,981,566)             0
   Principal repayment of GNMAs                           51,045         46,709
   Principal repayments of REMICs                        526,166        578,442
   Principal repayments of FHA
    Insured Project Loan                               3,408,238         21,791
   Increase in deferred costs                                  0            (11)
                                                     -----------    -----------
   Net cash used in investing activities              (1,681,222)    (1,214,929)
                                                     -----------    -----------


                See accompanying notes to financial statements.


                                       5
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                            Statements of Cash Flows
                                   (continued)
                                   (Unaudited)


                                                     ==========================
                                                         Six Months Ended
                                                              June 30,
                                                     --------------------------
                                                         1997           1996
                                                     --------------------------
Cash flows from financing activities:
   Increase in due to affiliates                               0         50,000
   Distributions to shareholders                      (2,783,760)    (2,777,012)
   Proceeds from issuance of shares
    of beneficial interest                               704,876        724,599
   Purchase of Treasury Stock                           (704,874)      (724,584)
   Increase in offering costs                                  0        (50,000)
                                                     -----------    -----------
   Net cash used in financing
    activities                                        (2,783,758)    (2,776,997)
                                                     -----------    -----------

Net decrease in cash and
   cash equivalents                                   (2,186,488)    (1,916,551)

Cash and cash equivalents at
   beginning of period                                 4,828,561      6,242,945
                                                     -----------    -----------

Cash and cash equivalents at
   end of period                                     $ 2,642,073    $ 4,326,394
                                                     ===========    ===========



Supplemental schedule of non cash
   investing activities:

   Decrease in deferred costs                        $     3,032    $    22,659
   Increase in investments
    in loans                                              (3,032)       (22,659)
                                                     -----------    -----------

                                                     $         0    $         0
                                                     ===========    ===========

                 See Accompanying Notes to Financial Statements


                                       6
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)


Note 1 - General

American Mortgage Investors Trust (the "Company") was formed on June 11, 1991 as
a  Massachusetts  business  trust  for  the  primary  purpose  of  investing  in
government-insured  mortgages and guaranteed mortgage-backed  certificates.  The
Company is  electing to be treated as a real estate  investment  trust  ("REIT")
under the Internal Revenue Code of 1986, as amended.

The Company  issued  10,000  shares of  beneficial  interest at $20 per share in
exchange  for  $200,000  cash from  Related AMI  Associates,  Inc.,  the current
advisor to the Company (the "Advisor").

On March 29, 1993,  the Company  commenced a public  offering  (the  "Offering")
through Related Equities Corporation, (the "Dealer Manager") an affiliate of the
Advisor,  and  other  broker-dealers  on a  "best  efforts"  basis,  for  up  to
10,000,000 of its shares of beneficial  interest at an initial offering price of
$20 per share.  The Offering  terminated as of November 30, 1994. As of November
30,  1994,  a total of  3,809,601  shares  had been sold to the  public,  either
through  the  Offering  or  the  Company's   dividend   reinvestment  plan  (the
"Reinvestment  Plan"),  representing  Gross  Proceeds (the "Gross  Proceeds") of
$76,192,021  (before  volume  discounts of $40,575).  Pursuant to the Redemption
Plan which became effective November 30, 1994, the Company is required to redeem
eligible  shares  presented  for  redemption  for  cash  to  the  extent  it has
sufficient  net proceeds  from the sale of shares under the  Reinvestment  Plan.
After November 30, 1994, 189,016 shares were sold through the Reinvestment Plan,
the proceeds of which are restricted  for use in connection  with the Redemption
Plan and are not included in gross proceeds.  Pursuant to the Redemption Plan as
of June 30,  1997,  206,042  shares  were  redeemed  for an  aggregate  price of
$3,911,227. Of such redemptions,  16,931 shares were redeemed from proceeds from
the Reinvestment Plan before the termination of the Offering and therefore,  the
proceeds  available for future  investment have been reduced by $319,987.  As of
June 30, 1997 the  backlog of shares to be  redeemed  is  155,187.  The Board of
Trustees has  implemented the provisions of the Redemption Plan which permit the
original  $19 per share to be reduced  each  quarter  to  reflect  any return of
principal  received by  shareholders.  The current amount of principal which has
been distributed to shareholders is $1.53 per share and, therefore,  the current
redemption  price will be $17.47 per share ($19 per share less $1.53 per share).
The  Board  has  also  adopted  a  policy  to  reassess  the  redemption   price
periodically. Subject to future reconsideration of such policy by the Board, the
redemption  price will not be reduced  below the  Company's  net asset value per
share. In addition,  during the Offering, the Advisor received 38,481 restricted
shares  (including  717 from the  Reinvestment  Plan) in  addition to the 10,000
shares purchased,  which the Advisor has valued at $14.75 per share, pursuant to
the terms of the Offering.  As a result of the shares being redeemed the Advisor
was required to return 172 shares as of June 30, 1997.

The  Company  has  invested  principally  in two types of  mortgage  investments
("Mortgage  Investments"):  (i) new mortgage loans originated by or on behalf of
the Company or by other lenders 



                                       7
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)


Note 1 - General(continued)

and sold to the Company  prior to the loans  being fully  funded and (ii) Ginnie
Mae  mortgage-backed   securities  and  pass-through  certificates  ("Originated
Mortgages") and existing mortgage loans that it acquires ("Acquired  Mortgages")
on multifamily residential rental properties  ("Developments").  No more than 7%
of the Net Proceeds may be invested in non-interest bearing uninsured loans made
directly to developers or sponsors of Developments  (or the general  partners or
other  principals  of the owner of the  Developments)  with respect to which the
Company holds a mortgage ("Additional Loans"). As of June 30, 1997, of the total
Net Proceeds  available  for  investment,  84.9% had been invested in Originated
Mortgages  (including 6.32% in Additional  Loans) and 15.1% had been invested in
Acquired Mortgages.

The Company  also invests in REMICs and in CMOs or  participations  therein that
are backed by single family and/or multifamily  mortgage loans insured by FHA or
mortgage  certificates  guaranteed by Ginnie Mae, Fannie Mae or Freddie Mac. Due
to the complexity of the REMIC  structure and the uncertainty of future economic
and other factors that affect interest rates and mortgage prepayments, it is not
possible  to predict  the effect of future  events upon the yield to maturity or
the  market  value  of the  REMIC  and  GNMA  Certificates  upon  sale or  other
disposition  or whether the  Company,  if it chose to, would be able to reinvest
proceeds from prepayments at favorable rates relative to the coupon rate.

Management  of the  Company  has  made a number  of  estimates  and  assumptions
relating to the  reporting  of assets and  liabilities  and the  disclosures  of
contingent  assets and  liabilities  to prepare  these  financial  statements in
conformity with generally accepted accounting  principals.  Actual results could
differ from those estimates.

The unaudited  financial  statements have been prepared on the same basis as the
audited  financial  statements  included in the Company's Form 10-K for the year
ended  December  31,  1996.  In the  opinion of the  Advisor,  the  accompanying
unaudited  financial  statements  contain all  adjustments  (consisting  only of
normal recurring adjustments) necessary to present fairly the financial position
of the Company as of June 30, 1997,  the results of operations for the three and
six months  ended  June 30,  1997 and 1996 and its cash flows for the six months
ended June 30, 1997 and 1996. However,  the operating results for the six months
ended June 30, 1997 may not be indicative of the results for the year.


                                       8
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)


Note 1 - General(continued)

Certain  information  and  note  disclosures   normally  included  in  financial
statements prepared in accordance with generally accepted accounting  principles
have been omitted.  It is suggested that these  financial  statements be read in
conjunction  with the financial  statements  and notes  thereto  included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1996.

Certain prior year amounts have been  reclassified  to conform with current year
presentation.





                                       9
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)


Note 2 - Investments in Loans

The Company  originally funded five Originated  Mortgages  (excluding  GNMAs-see
Note  3),  five  noninterest   bearing   Additional  Loans  and  two  additional
loan-bridge loans in the aggregate amount of $46,260,148.

Information relating to investments in Originated Mortgages (excluding GNMAs-see
Note 3) and  Additional  Loans as of June 30, 1997 and  December 31, 1996 are as
follows:

Investments in loans - January 1, 1996                $39,497,133

   Additions:

     Columbiana Originated Mortgage        8,683,000
     Columbiana Originated Mortgage -
       unadvanced                           (666,872)
                                            --------
     Columbiana total advanced             8,016,128
     Columbiana advanced prior
        to 1996                           (7,552,100)
                                          ----------
     Columbiana-advanced in 1996                          464,028
     Columbiana - loan origination
       costs                                                5,395

     Stonybrook Originated Mortgage        8,500,000
     Stonybrook Originated Mortgage -
       unadvanced                         (2,205,337)
                                          ---------- 
     Stonybrook total advanced             6,294,663
     Stonybrook advanced prior to  1996     (610,209)
                                          ---------- 

     Stonybrook-advanced in 1996                        5,684,454
     Stonybrook - loan origination
       costs                                               53,023
                                                       ----------
                                                       45,704,033
                                                       ----------
   Deductions:

     Amortization of Additional Loans                    (372,916)
     Amortization of loan origination costs              (104,426)
     Collection of principal - Cove                       (46,706)
       - Oxford                                           (64,222)
       - Town and Country                                 (66,167)
                                                      -----------
                                                         (654,437)
                                                      -----------



                                                                     (continued)


                                       10
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)


Note 2 - Investments in Loans(continued)



   Investments in loans - December 31, 1996           $45,049,596

   Additions:

     Columbiana Originated Mortgage        8,683,000
     Columbiana Originated Mortgage -
       unadvanced                           (406,105)
                                          ----------
     Columbiana total advanced             8,276,895
     Columbiana advanced prior
       to 1997                            (8,016,128)
                                          ----------
     Columbiana-advanced in 1997                          260,767
     Columbiana - loan origination
       costs                                                3,032

     Stonybrook Originated Mortgage        8,500,000
     Stonybrook Originated Mortgage -
       unadvanced                           (577,156)
                                          ----------
     Stonybrook total advanced             7,922,844
     Stonybrook advanced prior
       to 1997                            (6,294,663)
                                          ----------
     Stonybrook-advanced in 1997                        1,628,181
                                                      -----------
                                                       46,941,576
                                                      -----------
   Deductions:

     Amortization of Additional Loans                    (186,458)
     Amortization of loan origination costs               (51,917)
     Collection of principal  - Cove                      (24,719)
                              - Oxford                    (33,988)
                              - Town and Country          (34,953)
                                                      -----------
                                                         (332,035)
                                                      -----------

   Investments in loans - June 30, 1997               $46,609,541
                                                      ===========

 
                                       11
<PAGE>



                        AMERICAN MORTGAGE INVESTORS TRUST
                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 1997
                                   (Unaudited)
NOTE 2 - Investments in Loans (continued)

Information  relating to investments in Originated  Mortgages (excluding GNMAs -
see Note 3) and Additional Loans as of June 30, 1997 and December 31, 1996 is as
follows:

<TABLE>
<CAPTION>
                                Date of                                                                           
                                 Invest-                   Amounts Advanced                                       Total
                                 ment/       -------------------------------------------------                   Amounts
                                 Final                                                 Total                     Advanced    
                                Maturity      Equity        Bridge      Mortgage      Amounts       Amounts         and      
Property          Description    Date         Loans         Loans         Loans       Advanced     Unadvanced    Unadvanced  
--------          -----------    ----         -----         -----         -----       --------     ----------    ----------  

<S>               <C>           <C>       <C>           <C>           <C>           <C>           <C>           <C>          
The Cove Apts     308           Dec. 93   $   840,500   $    84,210   $ 6,800,000   $ 7,724,710   $         0   $ 7,724,710  
Houston,          Apartment     Jan. 29                         (D)
TX (A)            Units         (E)
                               
Oxford on         405           Dec. 93     1,156,000       115,790     9,350,000    10,621,790             0    10,621,790  
Greenridge        Apartment     Jan. 29                         (D)
Apts              Units         (E)
Houston,                       
TX (A)                         
                               
Town &            330           Apr. 94     1,039,000          None     9,348,000    10,387,000             0    10,387,000  
Country IV        Apartment     May 29
Apts              Units         (F)
Urbana,                        
IL (B)                         
                               
Columbiana        204           Apr. 94       563,000          None     8,276,895     8,839,895       406,105     9,246,000  
Lakes Apts        Apartment     Nov. 35
Columbia,         Units         (G)
SC (C)                         
                               
Stony Brook       125           Dec. 95       763,909          None     7,922,844     8,686,753       577,156     9,263,909  
Village II Apts.  Apartment     June 37
East Haven,       Units         (G)
CT (H)                         
                               
                                          --------------------------------------------------------------------------------- 
Total                                     $ 4,362,409   $   200,000   $41,697,739   $46,260,148   $   983,261   $47,243,409  
                                          ================================================================================= 
<CAPTION>        
                                                                                                 Interest                           
                                                                                                 Earned                             
                                         Loan                  Final Balance   Final Balance     by the                       Net   
                       Outstanding    Origination  Accumulated    At June      At December       Company     Less 1997      Interest
Property               Loan Balance      Costs    Amortization    30, 1997      31, 1996(I)      for 1997   Amortization     Earned 
--------               ------------      -----    ------------    --------      -----------      --------   ------------     ------ 
                                                                                                                                    
<S>                    <C>           <C>           <C>           <C>           <C>           <C>           <C>           <C>        
The Cove Apts          $ 7,488,895   $   444,215   $   358,536   $ 7,574,574   $ 7,649,877   $   300,334   $    50,584   $   249,750
Houston,                                                                                                                            
TX (A)                                                                                                                              
                                                                                                                                    
Oxford on               10,297,543       610,814       493,090    10,415,267    10,518,823       424,556        69,568       354,988
Greenridge                                                                                                                          
Apts                                                                                                                                
Houston,                                                                                                                            
TX (A)                                                                                                                              
                                                                                                                                    
Town &                  10,190,576       603,895       372,157    10,422,314    10,515,510       409,133        58,243       350,890
Country IV                                                                                                                          
Apts                                                                                                                                
Urbana,                                                                                                                             
IL (B)                                                                                                                              
                                                                                                                                    
Columbiana               8,839,895       532,835       177,189     9,195,541     8,959,892       352,728        28,150       324,578
Lakes Apts                                                                                                                          
Columbia,                                                                                                                           
SC (C)                                                                                                                              
                                                                                                                                    
Stony Brook              8,686,753       413,491        98,399     9,001,845     7,405,494       312,354        31,830       280,524
Village II Apts.                                                                                                                    
East Haven,                                                                                                                         
CT (H)                                                                                                                              
                       -------------------------------------------------------------------------------------------------------------
Total                  $45,503,662   $ 2,605,250   $ 1,499,371   $46,609,541   $45,049,596   $ 1,799,105   $   238,375   $ 1,560,730
                       =============================================================================================================
</TABLE>

(A)  The  interest  rates for The Cove and Oxford are  7.625%-9.129%  during the
     permanent  loan  period.  In  addition  to the  interest  rate  during  the
     permanent  loan period the Company will be entitled to 30% of the cash flow
     remaining  after payment of 9.129% interest and accrued  interest,  if any.
     Payments at the rate of 9.129% are  guaranteed  by the  developer for three
     years after closing of the loans.

(B)  The  interest  rates for Town and  Country  are  7.375%-9.167%  during  the
     permanent  loan  period.  In  addition  to the  interest  rate  during  the
     permanent loan period, the Company will be entitled to 30% of the cash flow
     remaining after payment of 9.167% interest.

(C)  The interest rates for Columbiana are 7.9%-8.678% during the permanent loan
     period and 7.4% during the construction period. In addition to the interest
     rate during the permanent loan period,  the Company will be entitled to 25%
     of the cash flow remaining after payment of 8.678% interest.

(D)  Bridge loans were repaid in full on April 7, 1994.

(E)  The  Originated  Mortgages  have terms of 35 years,  subject  to  mandatory
     prepayment at any time after 10 years and upon one year's notice.

(F)  The  Originated  Mortgage  has a term of 35  years,  subject  to  mandatory
     prepayment at any time after 12 years and upon one year's notice.

(G)  The  Originated  Mortgage  has a term of 40  years,  subject  to  mandatory
     prepayment at any time after 10 years and upon one year's notice.

(H)  The interest  rates for Stony Brook are  7.75%-9.128%  during the permanent
     loan period and 8.625% during the construction  period.  In addition to the
     interest  rate  during the  permanent  loan  period,  the  Company  will be
     entitled  to 40%  of the  cash  flow  remaining  after  payment  of  9.128%
     interest.

(I)  Aggregate cost for federal income tax purposes is $45,707,370.

                                       12
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)

Note 3 - Investment in REMIC and GNMA Certificates and FHA Insured Project Loan

Originated Mortgages

GNMA Certificates

The Company used a portion of the Net Proceeds of its Offering to purchase  four
Ginnie  Mae  Guaranteed  FHA  Insured  Project  Loan  Backed  Certificates  from
unaffiliated third parties. The full amount of the purchase price of each of the
GNMA Certificates was allocated as a permanent  Originated  Mortgage.  The table
set  forth  below   outlines   pertinent   information   relating  to  the  GNMA
Certificates.

Acquired Mortgages

REMIC Certificates

The Company  used a portion of the Net  Proceeds of its Offering to purchase ten
REMIC Certificates from unaffiliated  third parties.  Except as set forth in the
notes to the table, each of the REMIC  Certificates was purchased as a permanent
Acquired  Mortgage.  The table set forth below  outlines  pertinent  information
relating to the REMIC Certificates.

FHA Insured Project Loan

The Company used a portion of the Net Proceeds of its Offering to purchase a FHA
Insured  Project Loan from an unaffiliated  third party.  The full amount of the
purchase  price was allocated as a permanent  Acquired  Mortgage.  The table set
forth below outlines pertinent  information  relating to the FHA Insured Project
Loan.

                                       13
<PAGE>

                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997

                                   (Unaudited)


Note 3 - Investment in REMIC and GNMA  Certificates and FHA Insured Project Loan
(continued)

Information  relating  to  investments  in REMIC and GNMA  Certificates  and FHA
Insured Project Loan as of June 30, 1997 and December 31, 1996:

Investments in REMIC and GNMA
   Certificates and FHA Insured
   Project Loan - January 1, 1996                                  $ 19,327,518

   Additions:

     Amortization of Discounts                                           43,376
                                                                   ------------
                                                                     19,370,894
                                                                   ------------

   Deductions:

     Principal Repayments (Sales) of GNMA
       Certificates                                                     (95,396)
     Principal Repayments (Sales) of REMIC
       Certificates                                                  (1,149,123)
     Principal Repayments (Sales) of
       FHA Insured Project Loan                                         (44,598)
     Proceeds from sale of REMIC Certificates                        (4,940,625)
     Loss on Sale of REMIC Certificates                                (408,692)
     Loss on Sale of GNMA Certificates                                   (5,689)
     Loss on Sale of FHA Insured Project Loan                            (1,594)
     Amortization of Premiums                                           (19,523)
                                                                   ------------
                                                                     (6,665,240)
                                                                   ------------

   Amortized Cost at December 31, 1996
   (including unrealized loss of $59,063
   at December 31, 1995)                                             12,705,654

   Change in net unrealized loss on securities
     available for sale                                                 (22,323)
                                                                   ------------
   Carrying value at December 31, 1996                             $ 12,683,331

                                                                     (continued)

                                       14
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997

                                   (Unaudited)


Note 3 - Investment in REMIC and GNMA  Certificates and FHA Insured Project Loan
(continued)

Additions:

  Purchase of GNMA Certificate                                        1,981,566
  Purchase of REMIC Certificates                                      1,889,817
  Amortization of Discounts                                              18,215
                                                                   ------------
                                                                     16,572,929
                                                                   ------------

Deductions:

  Principal Repayments (Sales) of GNMA
    Certificates                                                        (51,045)
  Principal Repayments (Sales) of REMIC
    Certificates                                                       (526,166)
  Principal Repayments (Sales) of
    FHA Insured Project Loan                                         (3,408,238)
  Loss on Sale of REMIC Certificates                                    (17,764)
  Loss on Sale of GNMA Certificates                                        (927)
  Loss on Sale of FHA Insured Project Loan                              (43,080)
  Amortization of Premiums                                                 (585)
                                                                   ------------
                                                                     (4,047,805)
                                                                   ------------


Amortized Cost at June 30, 1997
(including unrealized loss of $81,386
at December 31, 1996)                                                12,525,124

Change in net unrealized loss on securities
  available for sale                                                    (16,688)
                                                                   ------------
Carrying value at June 30, 1997                                    $ 12,508,436
                                                                   ============


                                       15
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          NOTES TO FINANCIAL STATEMENTS
                                  June 30, 1997
                                   (Unaudited)

NOTE 3 - Investment in REMIC and GNMA  Certificates and FHA Insured Project Loan
(continued)

Information  relating  to  investments  in REMIC and GNMA  Certificates  and FHA
Insured Project Loan as of June 30, 1997 and December 31, 1996 is as follows:

<TABLE>
<CAPTION>
                                       Date                    Original                                                Loan    
                                     Purchased                 Purchase                  Premium      Accumulated  Origination 
                                      /Final       Stated       Price     Principal     (Discount)   Amortization     Costs    
                      Certificate     Payment     Interest    Including    at June       at June        at June      at June   
Seller                Number           Date         Rate     Prem/(Disc)   30, 1997      30, 1997      30, 1997      30, 1997  
------                ------         ---------    --------   -----------  ---------      --------      --------      --------  

<S>                   <C>             <C>           <C>     <C>          <C>           <C>             <C>         <C>         
GNMA Certificates
Bear Stearns          0355540         7/27/94       7.125%  $ 2,407,102  $ 2,598,656   $ (240,376)     $ 59,247    $  80,396   
                                      3/15/29       
Malone Mortgage       0382486         7/28/94       8.500%    2,197,130    2,174,724       (8,155)        2,099       73,861   
                                      8/15/29       
Goldman Sachs         0328502         7/29/94       8.250%    3,928,615    3,749,109       (3,513)          984      127,691   
                                      7/15/17                                                                                  
SunCoast Capital      G22412(7)       6/23/97       7.000%    1,981,566    1,994,353      (13,083)            0            0   
  Group, Ltd.                         4/20/27                                                                                  
                                                                                                                               
REMIC Certificates                                                                                                             
Bear Stearns          FNMA            8/27/93       6.500%   10,160,938            0            0             0            0   
                      1992-17G(1)     Sold(1)                                                                                  
Bear Stearns          FHLMC           10/26/93      4.850%    4,838,600            0            0             0            0   
                      G-024C(2)       Sold(3)                                                                                  
Meridan Capital       FHLMC           10/25/94      5.750%    1,721,291            0            0             0            0   
  Markets             1292ZA(3)       6/15/97(4)                                                                               
Meridan Capital       FNMA            10/25/94      5.250%      258,357       19,918         (423)          423          665   
  Markets             1992-153A(3)    9/25/97                                                                                  
Meridan Capital       FHLMC           10/27/94      6.500%      742,538       97,404         (670)          670        3,298   
  Markets             1580A(3)        9/15/98                                                                                  
Meridan Capital       FHLMC           11/9/94       7.350%      269,658            0            0             0            0   
  Markets             1258C(3)        5/15/04(5)                                                                               
SunCoast Capital      FHLMC           5/30/97       7.000%      507,288      505,000        2,288          (457)           0   
  Group, Ltd.         17218(7)        2/1/98                                                                                   
SunCoast Capital      FHLMC           5/30/97       6.500%      251,967      251,456          511          (128)           0   
  Group, Ltd.         17161(7)        2/1/98                                                                                   
SunCoast Capital      FHLMC           6/23/97       7.000%      147,437      146,932          505             0            0   
  Group, Ltd.         17125(7)        1/1/98                                                                                   
SunCoast Capital      FNMA            6/30/97       7.500%      983,125    1,000,000      (16,875)            0            0   
  Group, Ltd.         1997-42V(7)     4/18/26                                                                                 
                                                                                                                               
FHA Insured Project Loan 
Donaldson, Lufkin     092-11005       1/3/95        8.600%    3,374,679            0            0             0            0   
  & Jenrette                          4/1/19(6)             -----------  -----------   ----------      --------    ---------   
                                                                                                                               
Total                                                       $33,770,291  $12,537,552   $ (279,791)     $ 62,838    $ 285,911   
                                                            ===========  ===========   ==========      ========    =========   
<CAPTION>          
                                                                 Interest                               
                         Unrealized    Final        Final         Earned                                
                         Gain(Loss)   Balance      Balance        by the                     Net        
                          at June     at June      at Dec.       Company       1997       Interest      
Seller                    30, 1997    30, 1997    31, 1996       for 1997   Amortization   Earned       
------                    --------    --------    --------       --------   ------------   ------       
                                                                                                        
<S>                    <C>          <C>          <C>           <C>          <C>          <C>            
GNMA Certificates                                                                                       
Bear Stearns           $   32,314   $ 2,530,237  $ 2,526,991   $   92,747   $   10,177   $  102,924     
                                                                                                        
                                                                                                        
Malone Mortgage           (14,796)    2,227,733    2,227,043       92,533          360       92,893     
                                                                                                        
                                                                                                        
Goldman Sachs             (54,867)    3,819,404    3,802,730      155,252          169      155,421     
                                                                                                        
SunCoast Capital          (54,557)    1,926,713            0        4,449            0        4,449     
  Group, Ltd.                                                                                           
                                                                                                        
REMIC Certificates                                                                                      
Bear Stearns                    0             0            0            0            0            0     
                                                                                                        
Bear Stearns                    0             0            0            0            0            0     
                                                                                                        
Meridan Capital                 0             0      338,033        3,848            0        3,848     
  Markets                                                                                               
Meridan Capital              (754)       19,829       61,081          973            0          973     
  Markets                                                                                               
Meridan Capital            (3,351)       97,351      214,816        4,774            0        4,774     
  Markets                                                                                               
Meridan Capital                 0             0       28,779          266            0          266     
  Markets                                                                                               
SunCoast Capital             (410)      506,421            0            6         (457)        (451)    
  Group, Ltd.                                                                                           
SunCoast Capital           (1,562)      250,277            0           44         (128)         (84)    
  Group, Ltd.                                                                                           
SunCoast Capital              (91)      147,346            0          228            0          228     
  Group, Ltd.                                                                                           
SunCoast Capital                0       983,125            0          208            0          208     
  Group, Ltd.                                                                                           
                                                                                                        
FHA Insured Project Loan 
Donaldson, Lufkin               0             0    3,483,858      113,074        7,509      120,583     
  & Jenrette           ----------   -----------  -----------   ----------   ----------   ----------     
                                                                                                        
Total                  $  (98,074)  $12,508,436  $12,683,331   $  468,402   $   17,630   $  486,032     
                       ==========   ===========  ===========   ==========   ==========   ==========     
</TABLE>

                                       16

<PAGE>

                                                          
                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)

Note 3 - Investment in REMIC and GNMA  Certificates and FHA Insured Project Loan
(continued)

(1) On October 15, 1993 the Company  allocated  $5,000,000 of the principal face
value as an Acquired  Mortgage based on the  expectation  that a majority of the
investment  would be held  for at least  two  years.  Based on such  allocation,
compensation  was paid to the Advisor.  The Advisor has  undertaken to reimburse
the Company for any compensation paid to it which is attributable to the portion
of any REMIC  Certificate  which is sold to support the  Company's  distribution
policy  (the  "Advisor's  Reimbursement  Undertaking").  On November 4, 1993 and
February 1, 1994,  the Company sold $200,000 and $200,000  respectively,  of the
REMIC  Certificate  and the  Advisor  has  reimbursed  the  Company for the fees
previously  paid and the trading loss  incurred  with respect to the portions of
the REMIC  Certificate  which were sold.  On March 30,  1995,  the Company  sold
$4,500,000  of the  temporary  portion at the  discounted  price of  90.9375% or
$4,092,188.  The  realized  loss on this sale was  $447,472.  Also on August 15,
1996,  the Company sold the  remaining  balance of the  temporary  and permanent
portions of the REMIC Certificate which totaled $5,100,000. The realized loss on
this sale was $328,895.

The REMIC Certificate  represented  beneficial  ownership interest in Fannie Mae
REMIC Trust 1992-17. The assets of the trust consisted primarily of interests in
a separate trust which held Fannie Mae Guaranteed Pass-Through Certificates (the
"MBS  Certificates"),  each of which represented a beneficial interest in a pool
of first lien, fixed-rate residential mortgage loans (the "Mortgage Loans").

The  Company  was  entitled  to monthly  interest  payments  on the  outstanding
principal amount of the REMIC Certificate.

(2) Represented an FHLMC Mortgage Participation Certificate.  On May 4, 1994 the
Company allocated $2,419,300 of the principal face value as an Acquired Mortgage
based on the expectation  that a majority of the investment would be held for at
least two  years.  Based  upon  such  allocation,  compensation  was paid to the
Advisor.  On May 5, 1994 the Company sold $1,000,000 of the permanent portion of
the Mortgage Participation  Certificate and on October 11, 1994 the Company sold
the remaining  balance of the  temporary and permanent  portions of the Mortgage
Participation  Certificate which totaled  $3,838,600.  Pursuant to the Advisor's
Reimbursement  Undertaking,  the Advisor has reimbursed the Company for the fees
previously  paid and the trading loss  incurred  with  respect to the  permanent
investment  portion of the 

                                       17
<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)

Note 3 - Investment in REMIC and GNMA  Certificates and FHA Insured Project Loan
(continued)

certificate  which was sold.  A loss of $297,836  was recorded on these sales in
1994.

(3) Purchased as a permanent investment using a portion of the proceeds from the
sale of FHLMC REMIC Certificate #G-024C. See (2) above.

(4) The stated final  payment date was June 15, 1997.  The actual final  payment
amounting to $40,553 was received on June 16, 1997.

(5) The stated final  payment date was May 15,  2004.  The actual final  payment
amounting to $7,099 was received on April 15, 1997.

(6) The stated final  payment date was April 1, 2019.  The actual final  payment
amounting to $3,392,445 was received on May 23, 1997.

(7)  Purchased  as a  permanent  investment  using the  proceeds  from the final
payment received from the FHA Insured Project Loan (See (6) above) and a portion
of the proceeds from the sale of Fannie Mae REMIC Certificate #1992-17G (see (1)
above).



                                       18
<PAGE>

                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)

Note 3 - Investment in REMIC and GNMA  Certificates and FHA Insured Project Loan
(continued)

The amortized cost,  unrealized gain (loss) and fair value for the investment in
REMIC and GNMA  Certificates  and FHA Insured  Project Loan at June 30, 1997 and
December 31, 1996 are as follows:

<TABLE>
<CAPTION>
                                   Unrealized                                    Unrealized
                   Amortized         Gain            Fair        Amortized         Gain              Fair
                    Cost at        (Loss) at       Value at       Cost at        (Loss) at         Value at
                     June           June             June         December        December         December
Security           30, 1997        30, 1997        30, 1997       31, 1996        31, 1996         31, 1996 
----------       ------------    ------------    ------------   ------------    ------------    ------------
<S>              <C>             <C>             <C>            <C>             <C>             <C>         
FHA Insured
  Project Loan   $          0    $          0    $          0   $  3,443,808    $     40,050    $  3,483,858
Fannie Mae
  REMICs            1,003,708            (754)      1,002,954         63,467          (2,386)         61,081
Federal
  Home Loan
  REMICs            1,006,809          (5,414)      1,001,395        601,749         (20,121)        581,628
Ginnie Mae
  Certificates     10,595,993         (91,906)     10,504,087      8,655,693         (98,929)      8,556,764
                 ------------    ------------    ------------   ------------    ------------    ------------

                 $ 12,606,510    $    (98,074)   $ 12,508,436   $ 12,764,717    $    (81,386)   $ 12,683,331
                 ============    ============    ============   ============    ============    ============
</TABLE>

                                       19

<PAGE>

                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)

Note 3 - Investment in REMIC and GNMA  Certificates and FHA Insured Project Loan
(continued)

The change in the unrealized loss for the six months ended June 30, 1997 and the
year ended December 31, 1996 were as follows:

Unrealized loss at December 31, 1995                      $ (59,063)
Sale of securities during the year
   ended December 31, 1996 included in
   unrealized loss at December 31, 1995                     248,254
Unrealized loss on securities held
   at December 31, 1996 and 1995                           (270,577)
                                                          --------- 

Unrealized loss at December 31, 1996                        (81,386)
Sale of securities during the six months
   ended June 30, 1997 included in
   unrealized loss at December 31, 1996                      20,565
Unrealized loss on securities held at
   June 30, 1997 and December 31, 1996                      (37,253)
                                                          --------- 

Unrealized loss at June 30, 1997                          $ (98,074)
                                                          ========= 

For the six months ended June 30, 1997, there were losses of $61,772  (including
acquisition fees and expenses) on principal  repayments of REMICs, GNMAs and the
FHA Insured Project Loan.

Note 4 - Related Party Transactions

The Company has entered into an agreement with the Advisor pursuant to which the
Advisor  receives  compensation  consisting  primarily  of (i)  compensation  in
connection with the  organization  and start-up of the Company and the Company's
investment in the Mortgage Investments; (ii) asset management fees calculated as
a percentage of total assets  invested by the Company which totaled  $89,776 and
$91,928 for the three  months  ended June 30, 1997 and 1996,  and  $179,245  and
$180,190  for the six months  ended June 30, 1997 and 1996,  respectively,  such
amounts are included in due to affiliates;  (iii) a  subordinated  incentive fee
based on the economic gain on the sale of Mortgage Investments;  (iv) an amount,
payable in shares of the Company  which,  after  issuance,  will equal 1% of all
shares of the  Company  issued  during the  offering  period or  pursuant to the
Company's  Reinvestment Plan as compensation for services  rendered.  During the
Offering the Advisor  received  38,481 shares,  in addition to the 10,000 shares
purchased,  however as a result of the shares  being  redeemed  the  Advisor was
required to return 172 shares. (As of June 30, 1997 and December 31, 1996


                                       20

<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)


Note 4 - Related Party Transactions(contined)

shares  received  by the  Advisor  totaled  38,309 at a total  value of $565,058
($14.75 per share));  (v) acquisition  expense  allowance and  acquisition  fees
calculated as a percentage of the Gross Proceeds  applicable to the  origination
of Originated  Mortgages and related  Additional  Loans and the  acquisition  of
Acquired  Mortgages  and  Additional  Loan;  (acquisition  fees and  acquisition
expense allowance incurred approximated $2,545,000 and $761,000 at June 30, 1997
and  December 31, 1996,  of which  $2,545,000  and $725,000 at June 30, 1997 and
$2,545,000 and $722,000 at December 31, 1996 have been  capitalized and included
in Investment in loans and  Investment  in REMIC and GNMA  Certificates  and FHA
Insured  Project  Loan) and (vi) certain  other fees.  In addition to the costs,
fees and expenses discussed above, the Company will reimburse  affiliates of the
Advisor  for  certain  administrative  and other cost  incurred on behalf of the
Company.  The costs and  expenses  incurred  for the three months ended June 30,
1997 and 1996 were $55,593 and $60,533,  and the costs and expenses incurred for
the six  months  ended  June 30,  1997  and  1996  were  $81,923  and  $110,533,
respectively.

In order to minimize the possible  adverse  effects of the Company's  investment
and  distribution  policy of  attempting  to maintain  stable  distributions  to
shareholders  during the offering and acquisition  stages,  the Company has made
the following undertakings: (a) the Advisor has agreed not to retain acquisition
fees or loan  disposition  fees with  respect  to any  portion of REMICs or CMOs
which are sold pursuant to the distribution policy; such fees totaled $96,112 as
of June 30, 1997 and December 31, 1996; (b) the Advisor has agreed to contribute
to the Company funds equal to the amount by which all trading  losses exceed the
gains  resulting from the sale of REMICs and CMOs  investments to supplement the
distribution policy; such funds totaled $97,221 as of June 30, 1997 and December
31, 1996;  and (c) the Company has agreed to limit the total amount which can be
returned  to  investors  from the  early  sale of  investments  to  support  the
distributions policy to less than 3% of the Gross Proceeds. As of June 30, 1997,
the  aggregate  amount of  disposition  proceeds  used to support  distributions
equaled 2.44% of the Gross Proceeds  resulting in  approximately  $428,000 being
available to support future distributions if necessary.


                                       21

<PAGE>


                        AMERICAN MORTGAGE INVESTORS TRUST
                          Notes to Financial Statements
                                  June 30, 1997
                                   (Unaudited)

Note 5 - Subsequent Event

On August 14, 1997, a  distribution  of  $1,388,505  and $17,464 was paid to the
Investors and the Advisor,  respectively,  representing  the 1997 second quarter
distribution.  The  distribution  will be funded from cash  collections  of debt
service  payments and interest  income through  approximately  the  distribution
date, August 14, 1997.



                                       22
<PAGE>




Item 2. Management's  Discussion and Analysis of Financial Condition and Results
of Operations.

Liquidity and Capital Resources

The Company  issued  10,000  shares of  beneficial  interest at $20 per share in
exchange for $200,000 cash from Related AMI Associates, Inc., the Advisor to the
Company.  As of November 30, 1994, the Company had received  $76,192,021 (before
volume discounts of $40,575) in Gross Proceeds from the sale of 3,738,613 shares
pursuant  to the  Offering  and 70,988  shares  through  the  Reinvestment  Plan
resulting in Net Proceeds available for investment of approximately  $69,334,743
after volume  discounts,  payments of sales  commissions  and  organization  and
offering  expenses.  Pursuant to the  Redemption  Plan,  which became  effective
November 30, 1994, the Company is required to redeem eligible  shares  presented
for  redemption  for cash to the extent it has  sufficient net proceeds from the
sale of shares under the  Reinvestment  Plan.  After November 30, 1994,  189,016
shares  were sold  through  the  Reinvestment  Plan,  the  proceeds of which are
restricted for use in connection  with the Redemption  Plan and are not included
in gross  proceeds.  Pursuant to the  Redemption  Plan as of June 30, 1997,  the
Company  redeemed  206,042 shares for an aggregate price of $3,911,227.  Of such
redemptions,  16,931 shares were  redeemed  from proceeds from the  Reinvestment
Plan  before  the  termination  of the  Offering  and  therefore,  the  proceeds
available for future  investment  have been reduced by $319,987.  As of June 30,
1997 the backlog of shares to be redeemed is 155,187.  The Board of Trustees has
implemented  the provisions of the Redemption Plan which permit the original $19
per share to be reduced each quarter to reflect any return of principal received
by  shareholders.  The current amount of principal which has been distributed to
shareholders is $1.53 per share and,  therefore,  the current  redemption  price
will be $17.47 per share ($19 per share  less  $1.53 per  share).  The Board has
also adopted a policy to reassess the redemption price periodically.  Subject to
future  reconsideration  of such policy by the Board,  the redemption price will
not be  reduced  below the  Company's  net asset  value per  share.  During  the
Offering,  the Advisor had received  38,481 shares  pursuant to the terms of the
Offering and Reinvestment Plan in addition to the 10,000 shares purchased.  As a
result of the shares  being  redeemed  the  Advisor  was  required to return 172
shares as of June 30, 1997.

During the six months ended June 30, 1997, cash and cash  equivalents  decreased
approximately  $2,186,000 due to investments in loans ($1,889,000),  purchase of
REMIC  Certificates  and GNMA  Certificate  ($3,871,000)  and  distributions  to
shareholders  ($2,784,000) which exceeded cash provided by operating  activities
($2,278,000) and principal  repayments of loans,  GNMAs,  REMICs and FHA Insured
Project Loan  ($4,079,000).  Included in the  adjustments  to reconcile  the net
income to cash  provided by  operating  activities  is net  amortization  in the
amount of $226,000.

The Company has utilized  the Net proceeds of the Offering  primarily to make or
invest in  Originated  Mortgages  and Acquired  Mortgages.  The Company has also
invested  in  uninsured  Additional  Loans made  directly to the  developers  or
sponsors of  De-



                                       23
<PAGE>



velopments  provided  that not more than an  aggregate of 7% of the Net Proceeds
raised in the Offering were invested in Additional  Loans.  As of June 30, 1997,
of the total Net Proceeds  available for investment,  84.9% had been invested in
Originated Mortgages (including 6.32% in Additional Loans) and 15.1% in Acquired
Mortgages.

As of June 30, 1997, the Company had funded five Originated Mortgages (excluding
GNMAs-see  below) in an aggregate  amount of $41,697,739  and five  non-interest
bearing  Additional  Loans in the  aggregate  amount of $4,362,409 in connection
with the permanent financing provided on five Developments.

In 1993, the Company made investments in two REMIC Certificates in the aggregate
amount of  $14,999,538,  which were sold during 1993,  1994,  1995 and 1996.  In
1994, the Company  acquired (i) three Ginnie Mae Guaranteed FHA Insured  Project
Loan Backed  Certificates  in the aggregate  amount of $8,532,847 and (ii) three
FHLMC REMIC  Certificates  two of which  matured  during 1997 and one Fannie Mae
Mortgage Guaranteed REMIC Certificate in the aggregate amount of $2,991,844.  In
1995, the company acquired a FHA Insured Project Loan in the aggregate amount of
$3,374,679  which matured in 1997. In 1997, the Company acquired (i) three FHLMC
REMIC  certificates and one Fannie Mae Mortgage  Guaranteed REMIC Certificate in
the aggregate  amount of $1,889,817  (ii) a portion of one Ginnie Mae Guaranteed
Single  Family Pool  Certificate  in the amount of  $1,981,566.  Net  unrealized
losses on REMIC and GNMA investments  included in shareholders'  equity pursuant
to Statement of Financial  Accounting  Standards No. 115  aggregated  $98,074 at
June 30, 1997.  This  represents an increase in the  unrealized  loss of $16,688
from  December  31, 1996 of which a decrease of $20,565 is  attributable  to the
sale of  securities  (which  resulted  in a  realized  loss of  $61,772)  and an
increase  of $37,253 is  attributable  to a  decrease  in market  prices for the
investments  held at June 30, 1997 and December 31, 1996.  As of August 5, 1997,
the unrealized loss was approximately $20,000.

The yield on the REMIC and GNMA Certificates will depend, in part, upon the rate
and timing of principal  prepayments  on the  underlying  mortgages in the asset
pool.  Generally,  as market interest rates decrease,  mortgage prepayment rates
increase and the market value of interest rate  sensitive  obligations  like the
REMIC and GNMA  Certificates  increases.  As  market  interest  rates  increase,
mortgage prepayment rates tend to decrease and the market value of interest rate
sensitive obligations like the REMICs and GNMAs tends to decrease. The effect of
prepayments  on yield is  greater  the  earlier a  prepayment  of  principal  is
received.



                                       24
<PAGE>


Due to the  complexity  of the REMIC  structure  and the  uncertainty  of future
economic and other factors that affect interest rates and mortgage  prepayments,
it is not  possible  to predict  the effect of future  events  upon the yield to
maturity or the market value of the REMIC and GNMA Certificates upon any sale or
other  disposition  or whether  the  Company,  if it chose to,  would be able to
reinvest  proceeds from  prepayments  at favorable  rates relative to the coupon
rate.

The  Company  intends to  continue  to invest the Net  Proceeds  (including  the
portion of reinvested  dividends not used for the Redemption  Plan),  if any, in
Mortgage   Investments.   Unadvanced  amounts  will  be  invested  in  temporary
investments.  The  Company  expects  that  cash  generated  from  the  Company's
investments  will be  sufficient  to pay all of the  Company's  expenses  in the
foreseeable future.

The Company's  liquidity is based primarily on interest  received from permanent
Mortgage   Investments  and  interest  on  unadvanced  amounts  from  Originated
Mortgages.  In order to qualify as a REIT under the Internal  Revenue  Code,  as
amended, the Company must distribute at least 95% of its taxable income.

For a description of the Company's investment in Originated Mortgages, REMIC and
GNMA  Certificates  and FHA Insured  Project  Loan see Notes 2 and 3 of Notes to
Financial Statements.

Results of Operations

Results of operations  for the three and six months ended June 30, 1997 and 1996
consisted  primarily of interest income of  approximately  $784,000 and $788,000
and $1,561,000 and $1,396,000 earned on Originated  Mortgages (excluding GNMAs),
respectively,  approximately  $226,000  and  $353,000  and $486,000 and $715,000
earned from  investments in REMIC and GNMA  Certificates and FHA Insured Project
Loan,  respectively,  and  approximately  $52,000  and  $57,000  and $96,000 and
$125,000 earned from temporary  investments,  respectively,  less administrative
expenses.  The total of the annual  operating  expenses  of the  Company may not
exceed the  greater of (i) 2% of the Average  Invested  Assets of the Company or
(ii) 25% of the  Company's  Net  Income,  unless  such excess is approved by the
Independent  Trustees.  On an  annualized  basis there was no excess for the six
months ended June 30, 1997 and 1996.

Interest  income  from  Originated   Mortgages   (excluding   GNMAs)   increased
approximately  $165,000  for the six months  ended June 30,  1997 as compared to
1996 primarily due to the  additional



                                       25
<PAGE>

advances on the Stonybrook and Columbiana  Originated  Mortgages  since June 30,
1996.  The  increase for the six months was  partially  offest by the receipt of
construction  yield  maintenance  interest  relating to Stonybrook in the second
quarter of 1996.

Interest  income from REMIC and GNMA  Certificates  and FHA Insured Project Loan
decreased approximately $127,000 and $229,000 for the three and six months ended
June 30, 1997,  respectively,  as compared to 1996  primarily due to the sale of
one REMIC in August 1996 and the  repayment  of the FHA Insured  Project Loan in
May 1997.

Interest income from temporary investments  decreased  approximately $29,000 for
the six months  ended  June 30,  1997 as  compared  to 1996  primarily  due to a
decrease in uninvested proceeds earning interest in the first quarter 1997.

General and  administrative-related  parties decreased approximately $30,000 for
the six months  ended  June 30,  1997 as  compared  to 1996  primarily  due to a
decrease  in   reimbursements   to   affiliates   of  the  Advisor  for  certain
administrative and other costs incurred on behalf of the Company.

The  increase  in  realized  loss on sale of REMICs  and  GNMAs and FHA  Insured
Project Loan of  approximately  $53,000 and $64,000 for the three and six months
ended June 30, 1997,  respectively,  as compared to 1996 is primarily due to the
repayment of the FHA Insured Project Loan in May 1997.

Distribution Policy

The Company has adopted a policy of attempting to maintain stable  distributions
to shareholders  during the offering and acquisition  stages of the Company.  In
order to  accomplish  this  result,  it has  disposed of, and may be required to
continue to dispose of a portion of the CMOs and REMICs during this period.  The
effect of this policy has been the following: (a) a portion of the distributions
have  constituted,  and will continue to  constitute,  a return of capital;  (b)
earlier  investors'  returns from an  investment  in the Company will be greater
than  later  investors'  returns;  and (c)  there  will be a  decrease  in funds
remaining to be invested in Mortgage Investments.

In  order to  minimize  the  possible  adverse  effects  of the  investment  and
distribution  policy  described  above,  the  Company  has  made  the  following
undertakings:  (a) the Advisor has agreed not 



                                       26
<PAGE>


to retain  acquisition fees or loan disposition fees with respect to any portion
of REMICs or CMOs which are sold pursuant to the distribution  policy; such fees
totaled  $96,112 as of June 30, 1997 and December 31, 1996;  (b) the Advisor has
agreed to  contribute  to the  Company  funds  equal to the  amount by which all
trading  losses  exceed  the  gains  resulting  from the  sale of REMIC  and CMO
investments to supplement the distribution policy; such funds totaled $97,221 as
of June 30, 1997 and December 31, 1996;  and (c) the Company has agreed to limit
the total  amount  which can be  returned  to  investors  from the early sale of
investments  to support  the  distributions  policy to less than 3% of the Gross
Proceeds. During the six months ended June 30, 1997, no investments were sold in
order to support the distribution policy.

Of the total  distributions of $2,783,760 and $2,777,012 made for the six months
ended June 30, 1997 and 1996,  $1,074,787  ($.27 per share or 39%) and  $941,256
($.24 per share or 34%) represents a return of capital  determined in accordance
with  generally  accepted  accounting  principles.  As of  June  30,  1997,  the
aggregate  amount  of the  distributions  made  since  the  commencement  of the
Offering representing a return of capital, in accordance with generally accepted
accounting principles,  totaled $8,057,802 ($1.99 per share or 42%). The portion
of the  distributions  which  constitute a return of capital may be  significant
during  the  acquisition  stage in  order to  maintain  level  distributions  to
shareholders.   However,  as  described  above,  the  aggregate  amount  of  the
disposition proceeds used for distributions cannot in the aggregate exceed 3% of
the Gross  Proceeds.  As of June 30, 1997,  the aggregate  amount of disposition
proceeds  used to  support  distributions  equaled  2.44% of the Gross  Proceeds
resulting  in   approximately   $428,000  being   available  to  support  future
distributions if necessary.

Management  expects that cash flow from operations  combined with the balance of
the  disposition  proceeds  above  will  be  sufficient  to fund  the  Company's
operating expenses and to make distributions.


                                       27
<PAGE>

                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings - None

Item 2. Changes in Securities - None

Item 3. Defaults Upon Senior Securities - None

Item 4. Submission of Matters to a Vote of Security Holders - None

Item 5. Other Information - None

Item 6. Exhibits and Reports on Form 8-K

     (a)  Exhibits

          3, 4 Amended and Restated  Declaration of Trust, dated as of March 29,
     1993,  as amended as of July 1, 1993 as  previously  filed as an Exhibit to
     Post-Effective Amendment No. 1 dated November 9, 1993.

          Amendment No. 2 to Amended and Restated Declaration of Trust, dated as
     of April 5, 1994 as previously filed as an Exhibit to Annual Report on Form
     10-K for the year ended December 31, 1993.

          10(a) Escrow  Agreement,  dated as of April 16, 1993 and amended as of
     August  25,  1993 as  previously  filed  as an  Exhibit  to  Post-Effective
     Amendment No. 1 dated November 9, 1993.

          10(b)  Advisory  Services  Agreement,  dated as of March 29, 1993,  as
     amended  as of  October  26,  1993 as  previously  filed as an  Exhibit  to
     Post-Effective Amendment No. 1 dated November 9, 1993.

          Amendment  to Advisory  Services  Agreement,  dated as of December 31,
     1993 as  previously  filed as an Exhibit to Annual  Report on Form 10-K for
     the year ended  December 31,  1993.  Third  Amendment to Advisory  Services
     Agreement,  dated as of March 29, 1994 as previously filed as an Exhibit to
     Annual Report on Form 10-K for the year ended December 31, 1993.

          10(c) TRI Capital Corporation Mortgage Note in the principal amount of
     $9,350,000  dated  December 16, 1993 as  previously  filed as an Exhibit to
     Current Report on Form 8-K dated December 16, 1993.

                                       28
<PAGE>


Item 6. Exhibits and Reports on Form 8-K(continued)

     (a)  Exhibits (continued)


          10(d) Equity Loan Note in the  principal  amount of  $1,156,000  dated
     December 16, 1993 as  previously  filed as an Exhibit to Current  Report on
     Form 8-K dated December 16, 1993.

          10(e)  Bridge Loan Note in the  principal  amount of  $115,790,  dated
     December 16, 1993 as  previously  filed as an Exhibit to Current  Report on
     Form 8-K dated December 16, 1993.

          10(f) Subordinated  Promissory Note by Oxford Apartments,  L.C., dated
     December 16, 1993 as  previously  filed as an Exhibit to Current  Report on
     Form 8-K dated December 16, 1993.

          10(g) Limited  Operating  Guaranty between Al L. Bradley,  Jr., Tim L.
     Myers, Allied Realty Services,  Ltd. and American Mortgage Investors Trust,
     dated December 16, 1993 as previously filed as an Exhibit to Current Report
     on Form 8-K dated December 16, 1993.

          10(h) TRI Capital Corporation Mortgage Note in the principal amount of
     $6,800,000,  dated  December 16, 1993 as previously  filed as an Exhibit to
     Current Report on Form 8-K dated December 16, 1993.

          10(i)  Equity Loan Note in the  principal  amount of  $840,500,  dated
     December 16, 1993 as  previously  filed as an Exhibit to Current  Report on
     Form 8-K dated December 16, 1993.

          10(j)  Bridge  Loan Note in the  principal  amount of  $84,210,  dated
     December 16, 1993 as  previously  filed as an Exhibit to Current  Report of
     Form 8-K dated December 1, 1993.

          10(k)  Subordinated  Promissory Note by Cove  Apartments,  L.C., dated
     December 16, 1993 as  previously  filed as an Exhibit to Current  Report on
     Form 8-K dated December 16, 1993.

          10(l) Limited  Operating  Guaranty between Al L. Bradley,  Jr., Tim L.
     Myers, Allied Realty Services,  Ltd. and American Mortgage Investors Trust,
     dated December 16, 1993 as previously filed as an Exhibit to Current Report
     on Form 8-K dated December 16, 1993.

          10(m)  Cambridge  Realty  Capital LTD Mortgage  Note in the  principal
     amount of $9,348,000, dated April 5, 1994 as previously filed as an Exhibit
     to Current Report on Form 8-K dated April 21, 1994.


                                       29
<PAGE>

Item 6. Exhibits and Reports on Form 8-K(continued)

     (a)  Exhibits (continued)

          10(n) Equity Loan Note in the principal  amount of  $1,039,000,  dated
     April 5, 1994 as previously  filed as an Exhibit to Current  Report on Form
     8-K dated April 21, 1994.

          10(o) Subordinated  Promissory Note by Town and Country IV Apartments,
     L.C.,  dated  April 5, 1994 as  previously  filed as an  Exhibit to Current
     Report on Form 8-K dated April 21, 1994.

          10(p) Limited Operating Guaranty between Leonard E. Wineburgh,  Arnold
     H. Dwinn and the  Company,  dated April 5, 1994 as  previously  filed as an
     Exhibit to Current Report on Form 8-K dated April 21, 1994.

          10(q) American Capital  Resource,  Inc. Mortgage Note in the principal
     amount of $8,683,000  dated April 5, 1994 as previously filed as an Exhibit
     to Current Report on Form 8-K dated April 28, 1994.

          10(r) Equity Loan Note in the principal amount of $563,000 dated April
     5, 1994 as  previously  filed as an Exhibit  to Current  Report on Form 8-K
     dated April 28, 1994.

          10(s)  Subordinated  Promissory Note by Columbiana  Lakes  Apartments,
     L.C.,  dated  April 5, 1994 as  previously  filed as an  Exhibit to Current
     Report on Form 8-K dated April 28, 1994.

          10(t) Limited  Operating  Guaranty between Anderson G. Wise, Ronald P.
     Curry  and the  Company,  dated  April 5,  1994 as  previously  filed as an
     Exhibit to Current Report on Form 8-K dated April 28, 1994.

          10(u)  Rockport  Mortgage  Corporation  Mortgage Note is the principal
     amount of $8,500,000  dated  December 15, 1995,  as previously  filed as an
     Exhibit to Current Report on Form 8-K dated December 15, 1995.

          10(v) Equity Loan Note in the  principal  amount of  $1,039,000  dated
     December 15, 1995, as previously  filed as an Exhibit to Current  report on
     Form 8-K dated December 15, 1995.

          10(w) Subordinated Promissory Note by SCI-ROEV East Haven Land Limited
     Partnership,  dated December 15, 1995, as previously filed as an Exhibit to
     Current Report on Form 8-K dated December 15, 1995.



                                       30
<PAGE>


Item 6. Exhibits and Reports on Form 8-K(continued)

     (a)  Exhibits (continued)

          10(x) Limited Operating Guaranty between SCI Real Estate  Development,
     Ltd., and Euro General East haven, Inc., and the Company dated December 15,
     1995, as previously filed as an Exhibit to Current Report in Form 8-K dated
     December 15, 1995.

          27 Financial Data Schedule (filed herewith).

     (b)  Reports on Form 8-K.

          No reports on Form 8-K were filed during the quarter.


                                       31
<PAGE>


                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) 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.


                        AMERICAN MORTGAGE INVESTORS TRUST
                                  (Registrant)


Date:  August 18, 1997

                      By: /s/ Alan P. Hirmes
                          ----------------------
                          Alan P. Hirmes
                          Senior Vice President and
                          Chief Financial Officer

Date:  August 18, 1997

                      By: /s/ Richard A. Palermo
                          ----------------------
                          Richard A. Palermo
                          Treasurer and
                          Chief Accounting Officer

                                       32