<PAGE>



--------------------------------------------------------------------------------

                                  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

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003

                         Commission file number 0-16345

                          SHELBOURNE PROPERTIES I, INC.
             (Exact name of registrant as specified in its charter)

                  Delaware                                04-3502384
                  --------                                ----------
  (State or other jurisdiction of                       (I.R.S. Employer
  incorporation or organization)                         Identification No.)

     P.O. Box 9507, 7 Bulfinch Place, Suite 500, Boston, Massachusetts 02114
     -----------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (617) 570-4600
              (Registrant's telephone number, including area code)



Indicate by check 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 [ ]

Indicated by check whether registrant is an accelerated filer (as identified in
Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

As of May 12, 2003, there were 839,286 shares of common stock outstanding.

--------------------------------------------------------------------------------

                                       1

<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


                                      INDEX

<TABLE>
<CAPTION>
                                                                                                   Page
                                                                                                   ----
<S>                                                                                                <C>
   Part I.    Financial Information

   Item 1.    Consolidated Financial Statements:

              Consolidated Statements of Net Assets (Liquidation Basis) for
              March 31, 2003 and December 31, 2002...............................................    3

              Consolidated Statement of Operations and Changes in Net Assets
              (Liquidation Basis) for the Three Months Ended March 31, 2003 and
              Consolidated Statement Operations (Going Concern) for the
              Three Months Ended March 31, 2002 (Restated).......................................    4

              Consolidated Statements of Cash Flows for the
              Three Months Ended March 31, 2003 (Liquidation Basis) and
              the Three Months Ended March 31, 2002 (Going Concern) (Restated)....................   5

              Notes to Consolidated Financial Statements.........................................    6

   Item 2.    Management's Discussion and Analysis of Financial
              Condition and Results of Operations................................................   16

   Item 3.    Quantitative and Qualitative Disclosure about Market Risk..........................   21

   Item 4.    Controls and Procedures............................................................   21



   Part II.   Other Information:

   Item 6.    Exhibits and Reports on Form 8-K...................................................   22

   Signatures ...................................................................................   23
</TABLE>


                                       2
<PAGE>



                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


            CONSOLIDATED STATEMENTS OF NET ASSETS (LIQUIDATION BASIS)
                   AS OF MARCH 31, 2003 AND DECEMBER 31, 2002

<TABLE>
<CAPTION>
                                                                                 March 31, 2003        December 31, 2002
                                                                              --------------------- ----------------------
                                                                                  (Unaudited)

   ASSETS
<S>                                                                                 <C>                        <C>
   Real estate held for sale                                                        $    7,460,555             30,341,402
   Investments in joint ventures                                                        25,703,192             57,791,273
   Cash and cash equivalents, of which $1,364,367 is
        restricted cash at March 31, 2003                                                3,416,785                550,061
   Other assets                                                                            196,519                359,699
   Receivables, net                                                                         10,197                166,723
                                                                              --------------------- ----------------------

   Total Assets                                                                         36,787,248             89,209,158
                                                                              --------------------- ----------------------

   LIABILITIES

   Accounts payable and accrued expenses                                                   955,888                386,903
   Note payable                                                                         17,495,084             23,832,274
   Reserve for estimated costs during the period of liquidation                            903,567              1,300,000
   Deferral of gains on real estate assets and joint ventures                           17,092,441             52,537,883

   COMMITMENTS AND CONTIGENCIES (Notes 8, 10)

   CLASS B Partnership Interests                                                                 -                      -

   CLASS A 5% Preferred Partnership Interests, at liquidation value                              -                812,674
                                                                              --------------------- ----------------------

   Total Liabilities                                                                    36,446,980             78,869,734
                                                                              --------------------- ----------------------

   NET ASSETS IN LIQUIDATION                                                         $     340,268         $   10,339,424
                                                                              ===================== ======================
</TABLE>







                See notes to consolidated financial statements.


                                       3
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

         CONSOLIDATED STATEMENT OF OPERATIONS AND CHANGES IN NET ASSETS
        FOR THE THREE MONTHS ENDED MARCH 31, 2003 (LIQUIDATION BASIS) AND
                      CONSOLIDATED STATEMENT OF OPERATIONS
         FOR THE THREE MONTHS ENDED MARCH 31, 2002 (GOING CONCERN BASIS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                    For the Three Months Ended
                                                                                             March 31,
                                                                           -----------------------------------------------
                                                                                2003                       2002
                                                                           ---------------     ---------------------------
                                                                                                 (Restated- see note 2)
<S>                                                                               <C>                             <C>
Rental Revenues                                                              $  1,073,900                    $  1,607,548
                                                                           ---------------     ---------------------------
Costs and Expenses

           Operating expenses                                                     391,496                         429,864
           Depreciation and amortization                                                -                         190,008
           Asset management fee                                                    50,000                         135,805
           Transition management fees                                                   -                          41,650
           Purchase of advisory agreements                                              -                      18,452,133
           Administrative expenses                                                258,568                         698,667
           Property management fee                                                 35,325                          45,913
                                                                           ---------------     ---------------------------
                                                                                  735,389                      19,994,040
                                                                           ---------------     ---------------------------
Income (loss) before equity income from joint ventures, gain on sale
of real estate, interest and other income                                         338,511                    (18,386,492)

           Equity income from joint ventures                                   27,074,303                         919,873
           Gain on sale of real estate                                          9,285,661                               -
           Interest expense                                                     (131,821)                       (102,275)
           Interest income                                                         16,065                          14,867
           Other income                                                             8,656                           1,992
                                                                           ---------------     ---------------------------

Net income (loss)                                                              36,591,375                    (17,552,035)
Preferred dividends                                                              (10,158)                         (5,079)
                                                                           ---------------     ---------------------------

Net income (loss) available for common shareholders                            36,581,217                  $ (17,557,114)
                                                                                               ===========================

Net assets at January 1, 2003                                                  10,339,424
Liquidating dividends - common                                               (46,580,373)
                                                                           ---------------
Net assets in liquidation at March 31, 2003                                   $   340,268
                                                                           ===============

Earnings (loss) per share - basic and diluted                                 $     43.59                   $     (16.70)
                                                                           ===============     ===========================


Weighted average common shares                                                    839,286                       1,051,238
                                                                           ===============     ===========================
</TABLE>

                See notes to consolidated financial statements.



                                       4
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


                      CONSOLIDATED STATEMENTS OF CASH FLOWS
        FOR THE THREE MONTHS ENDED MARCH 31, 2003 (LIQUIDATION BASIS) AND
                      MARCH 31, 2002 (GOING CONCERN BASIS)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                                  For the Three Months Ended
                                                                                          March 31,
                                                                       -------------------------------------------------
                                                                               2003                      2002
                                                                       ---------------------    ------------------------
                                                                                                 (Restated- see note 2)
<S>                                                                            <C>                        <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
      Net income (loss)                                                        $ 36,591,375               $(17,552,035)
      Adjustments to reconcile net income
          to net cash provided by operating activities:                                   -                           -
             Depreciation and amortization                                                -                     190,008
             Straight-line adjustment for stepped lease rentals                           -                       9,873
             Change in bad debt reserve                                              33,151                      19,540
             Purchase of advisory agreement                                               -                  18,452,133
             Distributions in excess of earnings from joint ventures              6,521,556                   6,327,678
             Gain on sale of real estate                                        (9,285,661)                           -
      Change in assets and liabilities:
             Receivables                                                            123,375                    (69,707)
             Other assets                                                           163,180                    (58,827)
             Accounts payable and accrued expenses                                (719,629)                      48,710
             Accrued interest                                                        79,507                     102,275
                                                                       ---------------------    ------------------------
      Net cash provided by operating activities                                  33,506,854                   7,469,648
                                                                       ---------------------    ------------------------

CASH FLOW FROM INVESTING ACTIVITIES:
             Improvements to real estate                                           (23,458)
             Investment in Accotel                                                (867,806)                           -
             Proceeds from sale of real estate                                   23,178,855                           -
                                                                       ---------------------    ------------------------
      Net cash provided by investing activities                                  22,287,591                           -
                                                                       ---------------------    ------------------------

CASH FLOWS FROM FINANCING ACTIVITIES:
             Purchase of treasury stock                                                   -                (14,303,060)
             Proceeds from Fleet Loan                                            17,495,084                           -
             Paydown of Credit Facility from sales proceeds                    (22,981,815)                           -
             Payoff of Credit Facility                                            (850,459)                           -
             Dividends paid-preferred and common                               (46,590,531)                           -
                                                                       ---------------------    ------------------------
      Net cash used in financing activities                                    (52,927,721)                (14,303,060)
                                                                       ---------------------    ------------------------

      Increase (decrease) in cash and cash equivalents                            2,866,724                 (6,833,412)
      Cash and cash equivalents, beginning of period                                550,061                   6,882,749
                                                                       ---------------------    ------------------------
      Cash and cash equivalents, end of period                                  $ 3,416,785                 $    49,337
                                                                       =====================    ========================
      Supplemental disclosure of cash flow information-
         Cash paid for interest                                                 $    52,314                 $         -
                                                                       =====================    ========================
</TABLE>

                See notes to consolidated financial statements.


                                       5
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

1.   ORGANIZATION

     Shelbourne Properties I, Inc., a Delaware corporation (the "Corporation"),
     was formed on April 18, 2001. The Corporation's wholly-owned operating
     partnership, Shelbourne Properties I L.P., a Delaware limited partnership
     (the "Operating Partnership", and together with the Corporation, the
     "Company"), holds directly and indirectly all of the Company's properties.
     Pursuant to a merger that was consummated on April 18, 2001, the Operating
     Partnership became the successor by merger to Integrated High Equity
     Partners, Series 85, a California Limited Partnership, (the "Predecessor
     Partnership").

     In August 2002, the Board of Directors adopted a Plan of Liquidation (the
     "Plan of Liquidation") and directed that the Plan of Liquidation be
     submitted to the Corporation's stockholders for approval. The stockholders
     of the Corporation approved the Plan of Liquidation at a Special Meeting of
     Stockholders held on October 29, 2002. The Plan of Liquidation contemplates
     the orderly sale of all of the Corporation's assets for cash or such other
     form of consideration as may be conveniently distributed to the
     Corporation's stockholders and the payment of (or provision for) the
     Corporation's liabilities and expenses, as well as the establishment of a
     reserve to fund the Corporation's contingent liabilities. The Plan of
     Liquidation gives the Corporation's Board of Directors the power to sell
     any and all of the assets of the Corporation without further approval by
     the stockholders.

     The Corporation currently expects that the liquidation will be
     substantially completed not later than October 29, 2004, although there can
     be no assurance in this regard. As a result, it is currently anticipated
     that not later than October 29, 2004 any then remaining assets and
     liabilities will be transferred to a liquidating trust. With the transfer
     to a liquidating trust, the liquidation will be completed for federal and
     state income tax purposes, although one or more distributions of the
     remaining cash and net proceeds from future asset sales may occur
     subsequent to the establishment of a liquidating trust.

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     BASIS OF PRESENTATION

     As a result of the adoption of the Plan of Liquidation and its approval by
     the Corporation's stockholders, the Corporation adopted the liquidation
     basis of accounting for the period subsequent to October 29, 2002. Under
     the liquidation basis of accounting, assets are stated at their estimated
     net realizable value. Liabilities including the reserves for estimated
     costs during the period of liquidation are stated at their anticipated
     settlement amounts. The valuation of investments in joint ventures and real
     estate held for sale is based upon current contracts, estimates as
     determined by independent appraisals or other indications of sales values.
     The valuations for other assets and liabilities under the liquidation basis
     of accounting are based on management's estimates as of March 31, 2003. The
     actual values realized for assets and settlement of liabilities may differ
     materially from the amounts estimated.

     The accompanying consolidated financial statements include the accounts of
     the Corporation and its wholly owned subsidiaries, the Operating
     Partnership and Shelbourne Properties I GP LLC, the general partner of the
     Operating Partnership and a wholly-owned subsidiary of the Corporation.
     Intercompany accounts and transactions have been eliminated in
     consolidation.

     The consolidated statements of operations and cash flows for the three
     months ended March 31, 2002 have been restated from the pro-rata method of
     accounting to reflect the equity method of accounting.




                                       6
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     The following table summarizes the statement of operations line items
     impacted by the restatement:

<TABLE>
<CAPTION>
                                                              For the Three Months Ended
                                                                      March 31,

                                                          Previously
                                                           Reported               Restated
                                                             2002                   2002
                                                       ------------------    -------------------
<S>                                                    <C>                    <C>
Rental revenues                                        $       3,370,105      $       1,607,548
Costs and expenses                                          (20,853,820)           (19,994,040)
Equity income from joint ventures                                      -                919,873
Interest expense                                               (102,275)              (102,275)
Interest income                                                   31,963                 14,867
Other income                                                       1,992                  1,992
                                                       --- --------------    --- ---------------

Net Loss                                               $    (17,552,035)      $    (17,552,035)
                                                       === ==============    === ===============
</TABLE>


     ADJUSTMENTS TO LIQUIDATION BASIS OF ACCOUNTING

     On October 30, 2002 in accordance with the liquidation basis of accounting,
     assets were adjusted to estimated net realizable value and liabilities were
     adjusted to estimated settlement amounts, including estimated costs
     associated with carrying out the liquidation. Since the sale of Southport
     Shopping Center (note 4) and 568 Broadway (note 5), the valuation of
     investments in joint ventures and real estate held for sale have been
     updated to reflect the remaining estimated costs of carrying out the
     liquidation as of March 31, 2003 without any additional adjustment
     required. The valuation is based on current contracts, estimates as
     determined by independent appraisals or other indications of sales value,
     net of estimated selling costs and capital expenditures anticipated during
     the liquidation period. The valuations of other assets and liabilities are
     based on management's estimates as of March 31, 2003. The actual values
     realized for assets and settlement of liabilities may differ materially
     from amounts estimated. Significant increases (decreases) in the carrying
     value of net assets are summarized as follows:

<TABLE>
<CAPTION>
<S>                                                                                         <C>
Decrease to reflect estimated net realizable values of certain real estate properties       $   (9,011,111)
Recognition of deferred gain and incentive fees on real estate properties                        9,011,111
Decrease to reflect net realizable value of investments in joint ventures                      (26,434,331)
Recognition of deferred gain and incentive fees on investments in joint ventures                26,434,331
                                                                                            --------------

Adjustment to reflect changes since December 31, 2002 to net carrying value                 $            -
                                                                                            ==============
</TABLE>

Adjusting assets to estimated net realizable value resulted in the write-up in
the value of certain real estate properties. The anticipated gains net of any
incentive fees associated with the adjustment in value of these real estate
properties have been deferred until such time as a sale occurs. During the
quarter ended March 31, 2003, the Corporation recognized actual gains of
$9,285,661 on the sale of real estate and $26,478,493 included in equity income
from joint ventures attributable to real estate sales.



                                       7
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     RESERVE FOR ESTIMATED COSTS DURING THE PERIOD OF LIQUIDATION

     Under liquidation accounting, the Corporation is required to estimate and
     accrue the costs associated with executing the Plan of Liquidation. These
     amounts can vary significantly due to, among other things, the timing and
     realized proceeds from property sales, the costs of retaining agents and
     trustees to oversee the liquidation, the costs of insurance, the timing and
     amounts associated with discharging known and contingent liabilities and
     the costs associated with cessation of the Company's operations. These
     costs are estimates and are expected to be paid out over the liquidation
     period. Such costs do not include costs incurred in connection with
     ordinary operations.

     The reserve for additional costs associated with liquidation was reduced
     from $1,300,000 at December 31, 2002 to $903,567 at March 31, 2003 due to
     professional costs associated with obtaining the Fleet Loan of $379,765 and
     tax planning costs of $16,668 paid to an affiliate of Presidio Capital
     Investment Company, LLC in connection with the Accor transaction (see note
     10).

     USE OF ESTIMATES

     The preparation of financial statements in conformity with accounting
     principles generally accepted in the United States of America requires
     management to make estimates and assumptions that affect the reported
     amounts of assets and liabilities and disclosure of contingent assets and
     liabilities at the date of the financial statements and the reported
     amounts of revenues and expenses during the reporting period. Actual
     results could differ materially from those estimates.

     CASH EQUIVALENTS

     The Corporation considers all short-term investments that have original
     maturities of three months or less from the date of acquisition to be cash
     equivalents.

     ACCOUNTS RECEIVABLE

     Accounts receivable are stated net of an allowance for doubtful accounts of
     $59,592 and $26,441 as of March 31, 2003 and December 31, 2002,
     respectively.

     REVENUE RECOGNITION

     Prior to the adoption of the liquidation basis of accounting, base rents
     were recognized on a straight-line basis over the terms of the related
     leases. Subsequent to the adoption of the liquidation basis of accounting,
     the amount of the previously deferred straight-line rent was grouped with
     real estate for purposes of comparing such balances to their net realizable
     value and, if such amounts when aggregated with real estate exceeded the
     net realizable value, the amount of the excess was included in the
     write-off of other assets as part of the adjustment to the liquidation
     basis of accounting. At October 29, 2002, the date prior to the adoption of
     liquidation accounting, approximately $254,181 of deferred straight-line
     rent was included in other assets that was subsequently grouped with real
     estate with no write-off required.

     Percentage rents charged to retail tenants based on sales volume are
     recognized when earned. Pursuant to Staff Accounting Bulletin No 101,
     "Revenue Recognition in Financial Statements," and the Emerging Issues Task
     Force's Consensus on Issue 98-9, "Accounting for Contingent Rent in Interim
     Financial Periods," the Corporation defers recognition of contingent rental
     income (i.e., percentage/excess rent) in interim periods until the
     specified target (i.e., breakpoint) that triggers the contingent rental
     income is achieved. Recoveries from tenants for taxes, insurance and other
     operating expenses are recognized as revenue in the period the applicable
     costs are incurred.

                                       8
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     INVESTMENTS IN JOINT VENTURES

     Certain properties are owned in joint ventures with Shelbourne Properties
     II L.P. and/or Shelbourne Properties III L.P. Accordingly, the
     Corporation's consolidated balance sheet at December 31, 2002 and the
     Corporation's consolidated statements of operations commencing January 1,
     2002, as restated, reflect the equity method of accounting.

     REAL ESTATE

     Subsequent to the adoption of the liquidation basis of accounting, real
     estate assets were adjusted to their net realizable value and classified as
     real estate held for sale. Additionally, the Corporation suspended
     recording any further depreciation expense.

     DEPRECIATION AND AMORTIZATION

     Upon the adoption of the liquidation basis of accounting, deferred loan
     fees of $700,832 were written off to reflect the balances at their net
     realizable value. Direct lease costs associated with the real estate were
     grouped with real estate for purposes of comparing carrying amounts to
     their net realizable value, and if such amounts, when aggregated with real
     estate, exceeded the net realizable value, these costs were written off.

     Prior to the Corporation adopting the liquidation basis of accounting,
     depreciation was computed using the straight-line method over the useful
     life of the property, which was estimated to be 40 years. The cost of
     properties represented the initial cost of the properties to the Company
     plus acquisition and closing costs less impairment adjustments. Tenant
     improvements, leasing costs and deferred loan fees were amortized over the
     applicable lease term.

     FINANCIAL INSTRUMENTS

     The carrying values reflected in the consolidated statements of net assets
     at March 31, 2003 and December 31, 2002 reasonably approximate the fair
     values for cash and cash equivalents, other assets, receivables, accounts
     payable, accrued expenses and note payable. Additionally, as the
     Corporation currently expects that the liquidation will be substantially
     completed not later than October 2004, the net realizable value of notes
     payable approximates the fair value. In making such assessment, the
     Corporation has utilized discounted cash flow analyses, estimates, and
     quoted market prices as deemed appropriate.

     INCOME TAXES

     The Corporation is operating with the intention of qualifying as a real
     estate investment trust ("REIT") under Sections 856-860 of the Internal
     Revenue Code of 1986 as amended. Under those sections, a REIT which pays at
     least 90% of its ordinary taxable income as a dividend to its stockholders
     each year and which meets certain other conditions will not be taxed on
     that portion of its taxable income which is distributed to its
     stockholders.

     For federal income tax purposes, the cash dividends distributed to
     stockholders after October 29, 2002 have been and will be characterized as
     liquidating distributions.

     AMOUNTS PER SHARE

     Basic earnings (loss) per share is computed based on weighted average
     common shares outstanding during the period.

                                       9
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

     DIVIDENDS PER SHARE

     On January 13, 2003, the Board of Directors declared a dividend of $3.50
     per share. The dividend was paid on January 31, 2003 to stockholders of
     record at the close of business on January 23, 2003.

     On February 28, 2003, the Board of Directors declared a dividend of $52.00
     per share. The dividend was paid on March 18, 2003 to stockholders of
     record at the close of business on March 10, 2003. The dividend was funded
     from proceeds of the Fleet Loan (see note 7) and from proceeds generated by
     the sale of the New York, New York property, as well as cash reserves.

     RECENTLY ISSUED ACCOUNTING STANDARDS

     In April 2002, the FASB issued SFAS No. 145, "Rescission of FASB Statements
     No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical
     Corrections," which updates, clarifies and simplifies existing accounting
     pronouncements which are effective for fiscal years beginning after May 15,
     2002. This statement had no effect on the Corporation's consolidated
     financial statements.

     In November 2002, the FASB issued Interpretation No. 45, Guarantors'
     Accounting and Disclosure Requirements for Guarantees, Including Indirect
     Guarantees of Indebtedness of Others. The Interpretation elaborates on the
     disclosures to be made by a guarantor in its financial statements about its
     obligations under certain guarantees that it has issued. It also clarifies
     that a guarantor is required to recognize, at the inception of a guarantee,
     a liability for the fair value of the obligation undertaken in issuing the
     guarantee. This Interpretation does not prescribe a specific approach for
     subsequently measuring the guarantor's recognized liability over the term
     of the related guarantee. The disclosure provisions of this Interpretation
     are effective for the Corporation's December 31, 2002 financial statements.
     The initial recognition and initial measurement provisions of this
     Interpretation are applicable on a prospective basis to guarantees issued
     or modified after December 31, 2002. This Interpretation had no effect on
     the Corporation's consolidated financial statements.

     In January 2003, the FASB issued Interpretation No. 46, Consolidation of
     Variable Interest Entities. This Interpretation clarifies the application
     of existing accounting pronouncements to certain entities in which equity
     investors do not have the characteristics of a controlling financial
     interest or do not have sufficient equity at risk for the entity to finance
     its activities without additional subordinated financial support from other
     parties. The provisions of the Interpretation will be immediately effective
     for all variable interest in variable interest entities created after
     January 31, 2003, and the Corporation will need to apply its provisions to
     any existing variable interest in variable interest entities by no later
     than December 21, 2004. The Corporation does not expect that this will have
     an impact on the Corporation's consolidated financial statements.

3.   CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES

     During the three months ended March 31, 2003 and 2002, property management
     services (the "Property Management Services") and asset management
     services, investor relation services and accounting services (the "Asset
     Management Services") have been provided to the Company by affiliates of
     the Company.

     ASSET MANAGEMENT SERVICES

For the period from January 1, 2002 through February 14, 2002, Shelbourne
Management LLC ("Shelbourne Management"), a wholly-owned subsidiary of Presidio
Capital Investment Company, LLC ("PCIC"), provided Asset Management Services to
the Company pursuant to the terms of an Advisory Agreement (the "Advisory
Agreement") between the Corporation, the Operating Partnership and Shelbourne
Management. Pursuant to the terms of the Advisory Agreement, the Corporation was
obligated to pay for Asset Management Services an annual

                                       10
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

3.   CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)

     asset management fee, payable quarterly, equal to 1.25% of the gross asset
     value of the Corporation as of the last day of each year. In addition, the
     Corporation was obligated to (i) pay $200,000 for non-accountable expenses
     and (ii) reimburse Shelbourne Management for expenses incurred in
     connection with the performance of its services. Effective February 14,
     2002, in connection with the Transaction (as described below), PCIC began
     providing such services for a reduced fee of $333,333 per annum. Both
     Shelbourne Management and PCIC were affiliates of the then management of
     the Corporation.

     Effective October 1, 2002, as contemplated by in the Plan of Liquidation,
     the agreement with PCIC was terminated and Kestrel Management, L.P.
     ("Kestrel") began providing the Asset Management Services for a fee of
     $200,000 per annum. Kestrel is an affiliate of the Corporation's current
     Chief Executive Officer.

     Asset Management Services were provided to the Corporation during the three
     months ended March 31, 2003 and 2002 as follows:

     o    Effective January 1, 2002 through February 13, 2002, pursuant to the
          terms of the Advisory Agreement, by Shelbourne Management.

     o    Effective February 14, 2002 through the end of the fiscal quarter and
          thereafter through September 30, 2002, by PCIC.

     o    Effective October 1, 2002 and thereafter including for the fiscal
          quarter ended March 31, 2003, as contemplated by the Plan of
          Liquidation, by Kestrel.

     PROPERTY MANAGEMENT SERVICES

     The Operating Partnership has contracted with affiliates to provide
     Property Management Services pursuant to agreements that provide for a fee
     of up to 6% of property revenue. Kestrel provided Property Management
     Services during the fiscal quarters ended March 31, 2003 and 2002.

     The following table summarizes the amounts paid to affiliates for Expense
     Reimbursements, Asset Management Fee, Transition Management Fee and
     Property Management Fees for the three month periods ended March 31, 2003
     and 2002.

         THREE MONTHS ENDED MARCH 31, 2003

                                       Shelbourne
                                       Management            Kestrel
                                       ----------            -------

         Asset Management Fee          $        -         $  50,000
         Property Management Fee       $        -         $  95,972









                                       11
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

3.   CONFLICTS OF INTEREST AND TRANSACTIONS WITH RELATED PARTIES (CONTINUED)

     THREE MONTHS ENDED MARCH 31, 2002

                                            Shelbourne
                                            Management       Kestrel
                                            ----------       -------

     Expense Reimbursement (1)              $  18,750       $        -
     Asset Management Fee                     135,805                -
     Transition Management Fee                 41,650                -
     Property Management Fee                $       -        $  97,063

     (1) The asset management fees were modified in connection with the
         Transaction to eliminate expense reimbursement.

     ALLOCATION OF DIVIDENDS BY THE CORPORATION

     Dividends payable to HX Investors, L.P. ("HX Investors"), an affiliate of
     the current Chief Executive Officer of the Corporation, for the three
     months ended March 31, 2003 and 2002 on account of shares of common stock
     owned by HX Investors were $19,562,918 and $0, respectively.

     In addition, in connection with the settlement of the lawsuit brought by HX
     Investors, Shelbourne Management agreed to pay to HX Investors 42% of the
     amounts paid to Shelbourne Management with respect to the Class A Units.

     THE TRANSACTION

     On February 14, 2002, the Corporation, Shelbourne Properties II, Inc. and
     Shelbourne Properties III, Inc. (the "Companies") consummated a transaction
     (the "Transaction") whereby the Corporation purchased the 423,903 shares of
     the Corporation's common stock held by subsidiaries of PCIC and the
     Advisory Agreement was contributed to the Operating Partnership. Pursuant
     to the Transaction, the Corporation paid. PCIC $14,303,060 in cash and the
     Operating Partnership issued preferred partnership interests with an
     aggregate liquidation preference of $812,674 and a note in the amount of
     $17,639,459. This note was satisfied in April 2002 from the proceeds of the
     Credit Facility. (See note 6).

4.   REAL ESTATE

     The following table is a summary of the Company's real estate as of:


                                      MARCH 31,                DECEMBER 31,
                                         2003                      2002
                                  LIQUIDATION BASIS          LIQUIDATION BASIS
                                     (UNAUDITED)
                                 ---------------------    ----------------------

     Real Estate Held for Sale      $   7,460,555              $   30,341,402
                                 =====================    ======================

     On January 21, 2003, the Corporation sold Southport Shopping Center located
     in Ft. Lauderdale, Florida for a gross sales price of $23,430,000. The
     Corporation received proceeds of $23,178,855 after closing costs. Under the
     terms of the Credit Facility, all of the net proceeds from the sale were
     paid to reduce the amount due under the Credit Facility. The Corporation
     realized an accounting gain of $9,285,661.

                                       12
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

5.   INVESTMENT IN JOINT VENTURES

     On October 30, 2002, the Corporation adopted the liquidation basis of
     accounting. Subsequent to the adoption of the liquidation basis of
     accounting, the investments in joint ventures were adjusted to their net
     realizable value based on current contracts, estimates as determined by
     independent appraisals or other indications of sales value.

     At January 1, 2003 the Corporation was invested in three joint ventures,
     (568 Broadway, Century Park, and Seattle Landmark). As of March 31, 2003
     the Corporation was invested in two operating joint ventures (Century Park
     and Seattle). The joint ventures are accounted for utilizing the equity
     method of accounting.

     On February 28, 2003, 568 Broadway Joint Venture, a joint venture in which
     the Corporation indirectly held a 38.925% interest, sold it's property
     located at 568 Broadway, New York, New York for a gross sale price of
     $87,500,000. After assumption of the debt encumbering the property
     ($10,000,000), closing adjustments and other closing costs, net proceeds
     were approximately $73,000,000, approximately $28,415,250 of which was
     allocated to the Operating Partnership. The joint venture recognized an
     accounting gain of $67,746,480 of which $26,478,493 was attributable to the
     Corporation and is reported as equity income from joint ventures.

     On February 25, 2003 Century Park I Joint Venture, a joint venture in which
     the Corporation indirectly holds a 50% interest, entered into a contract to
     sell its property located at Century Park Court, San Diego, California for
     a gross sales price of $29,750,000. The sale closed on April 29, 2003.

6.   CREDIT FACILITY

     On May 1, 2002, the Operating Partnership and certain of its subsidiaries,
     as well as the operating partnership of Shelbourne Properties II, Inc. and
     the operating partnership of Shelbourne Properties III, Inc., and certain
     of their subsidiaries entered into a $75,000,000 revolving credit facility
     with Bayerische Hypo-Und Vereinsbank AG, New York Branch, as agent for
     itself and other lenders (the "Credit Facility"). The Credit Facility was
     subsequently satisfied on February 20, 2003. (See note 7 below).

7.   FLEET LOAN

     On February 20, 2003, in a transaction designed to provide flexibility to
     the Corporation, Shelbourne Properties II, Inc. and Shelbourne Properties
     III, Inc., (collectively, the "Companies") and their respective operating
     partnerships (the "Shelbourne OPs") in implementing their respective plans
     of liquidation and enable them to distribute 100% of the net proceeds from
     the sale of the New York, New York property, direct and indirect
     subsidiaries (the "Borrowers") of each of the Companies entered into a Loan
     Agreement with Fleet National Bank, as agent for itself and other lenders
     ("Fleet") pursuant to which the Borrowers obtained a $55,000,000 loan (the
     "Loan"). The Companies believed that by entering into a single loan
     transaction instead of three separate loan transactions they were able to
     obtain a larger loan at a more favorable interest rate. The Loan bears
     interest at the election of the Borrowers at a rate of either LIBOR plus
     2.75% (4.09% at March 31, 2003) or Fleet's prime rate (but not less than
     5%) plus 100 basis points. At present the Borrowers have elected that the
     Loan bear interest at LIBOR plus 2.75%. The Loan matures on February 19,
     2006, subject to two one year extensions. The Loan is prepayable in whole
     or in part at anytime without penalty or premium.

     As of March 31, 2003, the Loan was secured by mortgages on the Company's
     Towson, Maryland property, the property held by Century Park I Joint
     Venture and the property held by Seattle Landmark Joint Venture, as well as
     certain other real properties owned indirectly by Shelbourne Properties II,
     Inc. and Shelbourne Properties III, Inc. The Borrowers are jointly and
     severally liable for the repayment of the amounts due under the Loan and
     the Operating Partnership and the Corporation (as well as the other
     operating partnerships and Companies) have guaranteed the repayment of the
     Loan. A portion of the Loan proceeds, as well as the balance of a note in
     the amount of $10,000,000 secured by the 568 Broadway property, were used
     to satisfy the Credit Facility that had a balance due of $37,417,249 as of
     February 20, 2003.



                                       13
<PAGE>


                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

7.   FLEET LOAN (CONTINUED)

     At March 31, 2003, the outstanding balance due on the Loan was $55,000,000,
     of which $17,495,084 was allocable to the Company and the interest rate at
     March 31, 2003 on the Loan was 4.09%. The outstanding principal balance was
     subsequently reduced by $20,000,000 on April 29, 2003 in connection with
     the sale of property jointly owned by the Corporation and Shelbourne
     Properties II, Inc.

     Since the Borrowers are jointly and severally liable for the repayment of
     the entire principal, interest and other amounts due under the Loan, the
     Borrowers, the Companies and the operating partnerships have entered into
     Indemnity, Contribution and Subrogation Agreements, the purpose and intent
     of which was to place the operating partnerships in the same position (as
     among each other) as each would have been had the lender made three
     separate loans, one to each of the operating partnerships; each of which
     loans would have been in a smaller amount than the Loan, would have been
     the obligation/liability only of the operating partnership to which it was
     made and would have been secured only by certain of such operating
     partnership's assets.

8.   CLASS B PARTNERSHIP INTERESTS

     Under the Plan of Liquidation which has been approved by the Corporation's
     Board of Directors and stockholders, the Class B Unitholders are entitled
     to receive an incentive payment of 15% of (i) the cash and other proceeds
     generated from operating the assets and properties of the Company, plus the
     aggregate fair value of all consideration received from the disposal of the
     assets and properties of the Company less (ii) the sum of all direct costs
     incurred in connection with such disposal (the "Incentive Fee"), after the
     payment of a priority return of approximately $59.00 per share to
     stockholders of the Corporation plus interest thereon compounded quarterly
     at 6% (from August 19, 2002) per annum (the "Priority Return"). On August
     19, 2002, the Board of Directors of the Corporation authorized the issuance
     by the Operating Partnership of, and the Operating Partnership issued,
     Class B Units to HX Investors L.P. ("HX Investors") which Class B Units
     provide distribution rights to HX Investors consistent with the intent and
     financial terms of the Incentive Fee. The Class B Units entitle the holder
     thereof to receive distributions equal to 15% of gross proceeds after the
     Priority Return. After giving effect to dividends paid from August 19, 2002
     to May 12, 2003, the remaining unpaid per share Priority Return at May 12,
     2003 is $0.93.

9.   CLASS A 5% PREFERRED PARTNERSHIP INTERESTS

     In connection with the Transaction, the Operating Partnership issued to
     Shelbourne Management 812.674 Class A 5% Preferred Partnership Units (the
     "Class A Units"). The Class A Units entitled the holder to a quarterly
     distribution equal to 1.25% of the aggregate liquidation preference of the
     Class A Units ($812,674). In addition, upon the liquidation of the
     Operating Partnership, each Class A Unit was entitled to a liquidation
     preference of $1,000 per unit. The Class A Units are not convertible into
     common units of the Operating Partnership or shares in the Corporation and
     the holders of the Class A Units do not have voting rights except in
     limited circumstances. Although the holders of the Class A Units do not
     have redemption rights, pursuant to the terms of the Purchase and
     Contribution Agreement entered into in connection with the Transaction,
     Shelbourne Management had the right to cause the Operating Partnership to
     reacquire the Class A Units upon the occurrence of certain events
     including, without limitation, if the aggregate assets of the Companies is
     below approximately $75 million or the outstanding debt under which the
     Companies are obligated is less than $55 million, for a purchase price
     equal to the liquidation preference plus an amount (the "Put Premium")
     which was equal to approximately $5,699,000 and declined each February 13,
     May 13, August 13 and November 13 until it reached zero on May 13, 2007.

     The terms of the Class A Units were subsequently modified to eliminate the
     liquidation preference and limit the circumstances under which the holders
     of the Class A Units can cause the Operating Partnership to purchase the
     Class A Units at a premium. These circumstances include the occurrence of
     the following while any of the Class A Units are outstanding; (i) the
     filing of bankruptcy by a Shelbourne OP; (ii) the failure of a Shelbourne
     OP to be taxed as a partnership; (iii) the termination of the Advisory
     Agreement; (iv) the issuing of a guaranty by any of the

                                       14
<PAGE>
                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

9.   CLASS A 5% PREFERRED PARTNERSHIP INTERESTS (CONTINUED)

     Companies on the debt securing the Accor S.A. properties; or (v) the taking
     of any action with respect to the Accor S.A. properties (see below) without
     the consent of the Class A Unitholder.

     In connection with the settlement of the lawsuit brought by HX Investors,
     Shelbourne Management agreed to pay to HX Investors 42% of the amounts paid
     to Shelbourne Management with respect to the Class A Units.

10.  ACCOR S.A. PROPERTIES TRANSACTION

     On January 15, 2003, a joint venture owned by the Operating Partnership and
     the operating partnerships of Shelbourne Properties II, Inc. and Shelbourne
     Properties III, Inc. acquired from Realty Holdings of America, LLC, an
     unaffiliated third party, a 100% interest in an entity that owns 20 motel
     properties triple net leased to an affiliate of Accor S.A. The cash
     purchase price, which was provided from working capital, was $2,668,272 of
     which $867,806, $1,079,675 and $720,791 was paid by the Corporation,
     Shelbourne Properties II, Inc., and Shelbourne Properties III, Inc.,
     respectively. The properties are also subject to existing mortgage
     indebtedness in the current principal amount of approximately $74,220,000.

     The Companies formed the joint venture and acquired the interest in the new
     properties in order to facilitate the disposition of the other properties
     of the Companies and the distribution to stockholders of the sales proceeds
     in accordance with the Plan of Liquidation. Prior to the acquisition of the
     Accor S.A. properties, the holder of the Class A Units had the right to
     cause the Operating Partnerships to purchase the Class A Units at a
     substantial premium to their liquidation value (at the time of the
     acquisition, a premium of approximately $5,286,000 in the case of the
     Operating Partnership and approximately $16,265,000 for all three operating
     partnerships) unless the operating partnerships maintained at least
     approximately $54,200,000 of aggregate indebtedness ($17,600,000 in the
     case of the Operating Partnership) guaranteed by the holder of the Class A
     Units and secured by assets having an aggregate market value of at least
     approximately $74,800,000 ($24,300,000 in the case of the Operating
     Partnership). These requirements significantly impaired the ability of the
     Corporation to sell its properties and make distributions in accordance
     with the Plan of Liquidation. In lieu of these requirements, the operating
     partnerships acquired the Accor S.A. properties for the benefit of the
     holder of the Class A Units. The holder of the Class A Units does, however,
     continue to have the right, under certain limited circumstances which the
     Companies do not anticipate will occur, to cause the operating partnerships
     to purchase the Class A Units at the premium as described above. The terms
     of the Class A Units were also modified to eliminate the $2,500,000
     aggregate liquidation preferences to which the holder of the Class A Units
     was previously entitled ($812,674 in the case of the Operating
     Partnership).

     The holder of the Class A Units has the right to require the operating
     partnerships to acquire other properties for its benefit at an aggregate
     cash cost to the operating partnerships of $2,500,000 (approximately
     $812,000 of which would be paid by the Operating Partnership). In that
     event the Accor S.A. properties would not be held for the benefit of the
     holder of the Class A Units and would be disposed of as part of the
     liquidation of the Companies.

11.  SUBSEQUENT EVENTS

     On April 29, 2003, Century Park I Joint Venture, a joint venture in which
     the Company held a 50% interest, sold its only property located in San
     Diego, California for a gross sales price of $29,750,000. The loan
     encumbering this property required that a payment of $20,000,000 be made to
     pay down the loan. After the required paydown, closing adjustments and
     other closing costs, net proceeds were approximately $9,400,000 of which
     the Operating Partnership was allocated $4,700,000. The joint venture
     anticipates an accounting gain of approximately $20,000,000 of which 50%
     will be allocated to the Corporation.



                                       15
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)

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

        CAUTIONARY STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
        OF 1995.

        Statements contained herein may constitute "forward-looking statements"
        within the meaning of Section 27A of the Securities Act of 1933, as
        amended, and Section 21E of the Securities Exchange Act of 1934, as
        amended. Any statements contained herein which are not statements of
        historical facts and that address activities, events or developments
        that Shelbourne Properties I, Inc. expects, believes or anticipates will
        or may occur in the future shall be deemed to be forward-looking
        statements. Forward-looking statements are inherently subject to risks
        and uncertainties, many of which cannot be predicted with accuracy and
        some of which might not even be anticipated. Future events, actual
        results and performance financial and otherwise, could differ materially
        from those set forth in or contemplated by the forward-looking
        statements herein. Factors that could cause actual results to differ
        materially from those in forward-looking statements include the terms of
        future property sales, investments and financings, general economic and
        business conditions and various other risk factors listed in the
        registration statement of Shelbourne Properties I, Inc. filed with the
        Securities and Exchange Commission.

        This item should be read in conjunction with the financial statements
        and other items contained elsewhere in the report.

        ORGANIZATION

        Shelbourne Properties I, Inc., a Delaware corporation (the
        "Corporation"), was formed on April 18, 2001. The Corporation's
        wholly-owned operating partnership, Shelbourne Properties I L.P., a
        Delaware limited partnership (the "Operating Partnership", and together
        with the Corporation, the "Company"), holds directly and indirectly all
        of the Company's properties. Pursuant to a merger that was consummated
        on April 18, 2001, the Operating Partnership became the successor by
        merger to Integrated High Equity Partners, Series 85, a California
        Limited Partnership, (the "Predecessor Partnership").

        In August 2002, the Board of Directors adopted a Plan of Liquidation
        (the "Plan of Liquidation") and directed that the Plan of Liquidation be
        submitted to the Corporation's stockholders for approval. The
        stockholders of the Corporation approved the Plan of Liquidation at a
        Special Meeting of Stockholders held on October 29, 2002. The Plan of
        Liquidation contemplates the orderly sale of all of the Corporation's
        assets for cash or such other form of consideration as may be
        conveniently distributed to the Corporation's stockholders and the
        payment of (or provision for) the Corporation's liabilities and
        expenses, as well as the establishment of a reserve to fund the
        Corporation's contingent liabilities. The Plan of Liquidation gives the
        Corporation's Board of Directors the power to sell any and all of the
        assets of the Corporation without further approval by the stockholders.

        Since the adoption of the Plan of Liquidation, the Company has sold
        Southport Shopping Center located in Ft. Lauderdale, Florida and its
        joint venture properties located in New York, New York and San Diego,
        California. As a result, the remaining assets of the Company are a
        shopping center located in Towson, Maryland and a 50% interest in an
        office building in Seattle, Washington. In addition, the Company holds a
        32.52% interest in a joint venture that holds 20 motel properties for
        the benefit of the Class A Unitholder. See "The Accotel Transaction"
        below.

        The Corporation currently expects that the liquidation will be
        substantially completed not later than October 29, 2004, although there
        can be no assurance in this regard. As a result, it is currently
        anticipated that not later than October 29, 2004 any then remaining
        assets and liabilities will be transferred to a liquidating trust. With
        the transfer to a liquidating trust, the liquidation will be completed
        for federal and state income tax purposes, although one or more
        distributions of the remaining cash and net proceeds from future asset
        sales may occur subsequent to the establishment of a liquidating trust.

        THE TRANSACTION

        On February 14, 2002, the Corporation, Shelbourne Properties II, Inc.
        and Shelbourne Properties III, Inc. (the "Companies") consummated a
        transaction (the "Transaction") whereby the Corporation purchased the
        423,903 shares of the Corporation's common stock held by subsidiaries of
        Presidio Capital Investment Company ("PCIC")



                                       16
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

        and the Advisory Agreement was contributed to the Operating Partnership.
        Pursuant to the Transaction, the Corporation paid PCIC $14,303,060 in
        cash and the Operating Partnership issued preferred partnership
        interests with an aggregate liquidation preference of $812,674 and a
        note in the amount of $17,639,459.

        THE ACCOTEL TRANSACTION

        In connection with the Transaction, the Operating Partnership issued the
        Class A Units to Shelbourne Management. Pursuant to the terms of the
        Purchase and Contribution Agreement in which the Class A Units were
        issued, the holder of the Class A Units had the right to cause the
        Operating Partnership to purchase the Class A Units at a substantial
        premium to their liquidation value ($5,286,000 at the January 15, 2003)
        unless the Operating Partnership, together with the operating
        partnerships of Shelbourne Properties II, Inc. and Shelbourne Properties
        III, Inc. (collectively, the "Shelbourne OPs") maintained at least
        approximately $54,200,000 of aggregate indebtedness ($17,600,000 in the
        case of the Operating Partnership) guaranteed by the holder of the Class
        A Units and secured by assets having an aggregate market value of at
        least approximately $74,800,000 ($24,300,000 in the case of the
        Operating Partnership) (the "Debt and Asset Covenant"). These
        requirements significantly impaired the ability of the Corporation to
        sell its properties and pay dividends in accordance with the Plan of
        Liquidation.

        Accordingly, in a transaction (the "Accotel Transaction") designed to
        facilitate the liquidation of the Corporation and provide dividends to
        stockholders, on January 15, 2003, a joint venture owned by the
        Shelbourne OPs acquired from Realty Holdings of America, LLC, an
        unaffiliated third party, a 100% interest in an entity that owns 20
        motel properties triple net leased to an affiliate of Accor S.A. The
        cash purchase price, which was provided from working capital, was
        $2,668,272, of which $867,806, $1,079,675 and $720,791 was paid by the
        Operating Partnership, Shelbourne Properties II L.P. and Shelbourne
        Properties III L.P., respectively. The properties were also subject to
        existing mortgage indebtedness in the principal amount of approximately
        $74,220,000.

        The Accor S.A. properties were acquired for the benefit of the holder of
        the Class A Units as they provide sufficient debt to be guaranteed by
        the holder of the Class A Units. Except as indicated below, the Class A
        Unitholder will ultimately be the sole owner of the joint venture. In
        connection with the Accotel Transaction, the terms of the Class A Units
        were amended to (i) eliminate the liquidation preferences (as the cost
        of the interest in the Accor S.A. properties which was borne by the
        Shelbourne OPs satisfied the liquidation preference) and (ii) eliminate
        the Debt and Asset Covenant. The holder of the Class A Units does,
        however, continue to have the right, under certain limited circumstances
        which the Companies do not anticipate will occur, to cause the
        Shelbourne OPs to purchase their respective Class A Units at the premium
        described above. These circumstances include the occurrence of the
        following while any of the Class A Units are outstanding: (i) the filing
        of bankruptcy by a Shelbourne OP; (ii) the failure of a Shelbourne OP to
        be taxed as a partnership; (iii) the termination of the Advisory
        Agreement; (iv) the issuing of a guaranty by any of the Companies on the
        debt securing the Accor S.A. properties; or (v) the taking of any action
        with respect to the Accor S.A. properties without the consent of the
        Class A Unitholder.

        The holder of the Class A Units has the right, which right must be
        exercised by no later than July 28, 2004, to require that the Shelbourne
        OPs acquire other properties for the Class A Unitholder's benefit at an
        aggregate cash cost to the Shelbourne OPs of not more than $2,500,000
        (approximately $812,000 of which would be paid by the Operating
        Partnership). In that event, the Accor S.A. properties would not be held
        for the benefit of the holder of the Class A Units and the Companies
        would seek to dispose of these properties as part of the liquidation of
        the Companies. Accordingly, if the Class A Unitholder were to exercise
        this option, there is a risk that the Companies interest in the Accor
        S.A. properties could not be sold for their original purchase price.

        The foregoing description of the transaction does not purport to be
        complete, and is qualified in its entirety by reference to the Purchase
        Agreement (and all exhibits thereto) dated as of January 15, 2003, the
        Modification Agreement, dated as of January 15, 2003 and the Amended and
        Restated Partnership Unit Designation, copies of which are attached as
        exhibits to the Corporation's Current Report on Form 8-K filed on
        January 16, 2003, which are incorporated herein by reference.




                                       17
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003

        THE PLAN OF LIQUIDATION- PROPERTY SALES

        On October 29, 2002, the Corporation's stockholders approved the Plan of
        Liquidation. Accordingly the Corporation began selling its properties.
        Since the adoption of the Plan of Liquidation, the Company has sold the
        following properties.

        Southport Shopping Center. On January 31, 2003, the Corporation
        completed the sale of Southport Shopping Center for a gross sales price
        of $23,430,000. Pursuant to the terms of the Credit Facility, which was
        in place at the time of the sale, all of the net proceeds after closing
        adjustments from the sale of $22,981,815 were required to be delivered
        to the Lender to reduce the outstanding balance on the Credit Facility.
        The Corporation recognized an accounting gain of $9,285,661.

        568 Broadway. On February 28, 2003, 568 Broadway Joint Venture, a joint
        venture in which the Corporation indirectly held a 38.925% interest,
        sold its property located at 568 Broadway, New York, New York for a
        gross sales price of $87,500,000. After assumptions of the debt
        encumbering the property, closing adjustments and other closing costs,
        net proceeds were approximately $73,000,000 of which approximately
        $28,415,250 was allocated to the Operating Partnership. The joint
        venture recognized an accounting gain of $67,746,480 of which
        $26,478,493 was attributable to the Corporation and is reported in
        equity income from joint venture.

        RECENT DEVELOPMENTS

        On April 29, 2003, Century Park I Joint Venture, a joint venture in
        which the company held a 50% interest, sold its only property located in
        San Diego, California for a gross sales price of $29,750,000. The loan
        encumbering this property required that a payment of $20,000,000 be made
        to pay down the loan. After the required paydown, closing adjustments
        and other closing costs, net proceeds were approximately $9,400,000 of
        which the Operating Partnership was allocated $4,700,000. The joint
        venture anticipates an accounting gain of approximately $20,000,000 of
        which 50% will be allocated to the Corporation.

        LIQUIDITY AND CAPITAL RESOURCES

        The Company uses its working capital reserves and any cash from
        operations as its primary source of liquidity. In addition, on February
        20, 2003, in a transaction designed to provide flexibility to the
        Corporation, Shelbourne Properties II, Inc. and Shelbourne Properties
        III, Inc. (collectively, the "Companies") in implementing their
        respective plans of liquidation and enable them to distribute 100% of
        the net proceeds from the sale of the New York, New York property,
        direct and indirect subsidiaries (the "Borrowers") of each of the
        Companies entered into a Loan Agreement with Fleet National Bank, as
        agent for itself and other lenders ("Fleet") pursuant to which the
        Borrowers obtained a $55,000,000 loan (the "Loan"). The Companies
        believed that by entering into a single loan transaction instead of
        three separate loan transactions they were able to obtain a larger loan
        at a more favorable interest rate. The Loan bears interest at the
        election of the Borrowers at a rate of either LIBOR plus 2.75% or
        Fleet's prime rate (but not less than 5%) plus 1%. At present the
        Borrowers have elected that the Loan bear interest at LIBOR plus 2.75%.
        The Loan matures on February 19, 2006, subject to two one year
        extensions. The Loan is prepayable in whole or in part at anytime
        without penalty or premium.

        At March 31, 2003, the outstanding balance due on the Loan was
        $55,000,000, of which $17,495,084 was allocable to the Company and the
        interest rate on the Loan was 4.09%. The outstanding principal balance
        was subsequently reduced by $20 million on April 29, 2003 in connection
        with the sale of property jointly owned by the Corporation and
        Shelbourne Properties II, Inc.

        The Loan is secured by mortgages on the Company's Towson, Maryland
        property, the property held by Century Park I Joint Venture and the
        property held by Seattle Landmark I Joint Venture, as well as certain
        other real properties owned indirectly by Shelbourne Properties II, Inc.
        and Shelbourne Properties III, Inc. The Borrowers are jointly and
        severally liable for the repayment of the amounts due under the Loan and
        the Operating Partnership and the Corporation (as well as the other
        operating partnerships and Companies) have guaranteed the repayment of
        the Loan. A portion of the Loan proceeds, as well as the balance of a
        note in the amount of $10,000,000 secured by the 568 Broadway property,
        were used to satisfy the Credit Facility that had a balance due of
        $37,417,249 of which the Corporation was responsible for $850,459.

                                       18
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


        Since the Borrowers are jointly and severally liable for the repayment
        of the entire principal, interest and other amounts due under the Loan,
        the Borrowers, the Companies and the operating partnerships have entered
        into Indemnity, Contribution and Subrogation Agreements, the purpose and
        intent of which was to place the operating partnerships in the same
        position (as among each other) as each would have been had the lender
        made three separate loans, one to each of the operating partnerships;
        each of which loans would have been in a smaller amount than the Loan,
        would have been the obligation/liability only of the operating
        partnership to which it was made and would have been secured only by
        certain of such operating partnership's assets.

        The Company had $3,416,785 in cash and cash equivalents at March 31,
        2003 of which $1,364,367 was classified as restricted cash. Cash and
        cash equivalents are temporarily invested in short-term instruments. The
        Company's level of liquidity based upon cash and cash equivalents
        increased by $2,866,724 for the three months ended March 31, 2003 as
        compared to December 31, 2002. As discussed further below, the increase
        resulted from $33,506,854 of net cash provided by operating activities
        and $22,287,591 of net cash provided by investing activities which was
        offset by $52,927,721 of net cash used in financing activities.

        In addition to the cash and cash equivalents reported at March 31, 2003,
        the Corporation's joint ventures held cash at March 31, 2003 of which
        the Corporation's allocable share was $561,692.

        Currently, the Corporation's primary sources of funds are rents
        collected from tenants, distributions from its joint venture investments
        and proceeds from property sales. Rents collected from tenants for the
        three months ended March 31, 2003 amounted to $1,175,839 as compared to
        $1,536,189 for the three months ended March 31, 2002. The decrease is
        due to the sale of Southport Shopping Center on January 21, 2003.

        Cash provided from investing activities were a result of the proceeds
        from the sale of Southport Shopping Center of $23,178,855 that were
        offset by the investment in Accotel of $867,806 and improvements to real
        estate at Loch Raven Plaza of $15,555 and Southport prior to the sale of
        $7,903.

        Cash used in financing activities consisted of the dividends paid to
        stockholders of $46,580,373, preferred dividends in the amount of
        $10,158 and the payoff of the Credit Facility which was funded by the
        proceeds generated by the sale of Southport Shopping Center and Fleet
        Loan proceeds of $17,495,084.

        RESULTS OF OPERATIONS

        Three months ended March 31, 2003 vs. March 31, 2002

        Net income

        The Corporation's net income increased by $54,138,331 to a net income of
        $36,581,217 for the three month's ended March 31, 2003 from a net loss
        of $17,557,114 for the three months ended March 31, 2002. The increase
        was due to a decrease in expenses and increases in gain on sale and
        equity income from joint ventures partially offset by a decrease in
        rental revenue and an increase in interest expense. The Corporation's
        income before interest and other income and net gain on sale of real
        estate was $338,511 for the three months ended March 31, 2003 as
        compared to a net loss of ($18,386,492) for the three months ended March
        31, 2002.

        Gain on Sale

        The gain on sale of $9,285,661 for the three months ended March 31, 2003
        was due to the sale of Southport Shopping Center during the three months
        ended March 31, 2003.

        Rental Revenue

        Rental revenues decreased $533,648, or approximately 33%, to $1,073,900
        for the three-months ended March 31, 2003 from $1,607,548 for the three
        months ended March 31, 2002 due to the January 2003 sale of Southport
        Shopping Center. The sale resulted in all rental revenues less
        percentage rent to drop by $517,841 for the three months ended March 31,
        2003 to $156,600 from $674,441 for the three months ended March 31,
        2002. Percentage



                                       19
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


        rent decreased by $21,545 during the same period as compared to the same
        period in 2002 as a result of reduced payments by Eckerd Drugs and
        Publix Supermarkets at Southport Shopping Center. These decreases were
        offset by Loch Raven's rental revenue increasing for the three months
        ended March 31, 2003 by $5,789 to $317,797 from $312,008 for the three
        months ended March 31, 2002.

        Costs and Expenses

        Costs and expenses for the three months ended March 31, 2003 amounted to
        $735,389, representing a decrease of $19,258,651 from the same period in
        2002. The decrease is due principally to expenses incurred in 2002 of
        $18,452,133 associated with the purchase of the Advisory Agreement that
        was consummated on February 14, 2002. The remaining expenses from 2002
        amounted to $1,541,907. Therefore, without giving effect to the costs
        incurred in 2002 for the purchase of the Advising Agreements, expenses
        decreased by $806,518 for three months ended March 31, 2003 compared
        with the same period in 2002. The decrease is primarily due to reduced
        administrative expenses, the cessation of depreciation and amortization
        and the reduction of the asset management fees to $200,000 per year. The
        sale of Southport Shopping Center in January 2003 also contributed to
        the decrease in costs and expenses.

        Operating expenses decreased by $38,368 for the three months ended March
        31, 2003 as compared to March 31, 2002, primarily due to the sale of
        Southport Shopping Center on January 21, 2003. This decrease was
        partially offset by capital expenses incurred at Seattle Tower which are
        not capitalized under the valuation methodology utilized in liquidation
        accounting.

        Pursuant to the Plan of Liquidation which was adopted on October 29,
        2002, depreciation and amortization expenses ceased as of that date.
        Therefore, the Corporation incurred no depreciation and amortization for
        the three months ended March 31, 2003 as compared to $190,008 for the
        same period in 2002. Partnership asset management fees decreased to
        $50,000 for the three months ended March 31, 2003 from $177,455 for the
        same period in 2002. In 2002, prior to the Transaction, the fees were
        based on 1.25% of gross asset value of the Corporation, which amounted
        to $135,805 during 2002, and after the Transaction, there was a flat fee
        of $27,778 per month which amounted to $41,650 for the balance of the
        first quarter of 2002. As a result the total asset management fee and
        transition management fees paid for the three months ended March 31,
        2002 were $177,455. Effective October 1, 2002, the asset management fee
        payable by the Corporation was reduced to $50,000 per quarter.

        Administrative costs decreased to $258,568 for the three months ended
        March 31, 2003 from $698,667 for the same period in 2002. This reduction
        is due to the costs not incurred in 2003 that were incurred in 2002 in
        connection with the Transaction. Property Management fees decreased to
        $35,325 from $45,913 for the periods ending March 31, 2003 and 2002
        respectively. The decrease is due to the sale of Southport Shopping
        Center in January 2003.

        Non-Operating Income and Expenses

        Income from investments in joint ventures increased by $26,154,430 to
        $27,074,303 for the three months ended March 31, 2003 as compared to
        $919,873 for the three months ended March 31, 2002. This is primarily
        due to 568 Broadway Joint Venture, in which the Corporation indirectly
        held a 38.925% interest, selling its property on February 28, 2003. The
        joint venture recognized a gain on sale of $67,746,480 of which
        $26,478,493 was allocated to the Corporation. Excluding the gain on
        sales, the Corporation experienced a decrease in equity income from 568
        Broadway Joint Venture for the three months ended March 31, 2003 as
        compared to the three months ended March 31, 2002 of $481,489 due to the
        sale of the property on February 28, 2003.

        The Corporation's other two investments in joint ventures, Century Park
        I Joint Venture and Seattle Landmark Joint Venture, experienced a
        combined increase in equity income of $157,427 for the three months
        ended March 31, 2003 as compared to the same period in 2002. This
        increase is primarily due to the cessation of depreciation and
        amortization expenses in accordance with liquidation accounting.

        During the first quarter of 2003, interest expense amounted to $131,821,
        which consisted of $52,314 paid in connection with the Credit Facility
        and $79,507 incurred in connection with the Loan, as compared to
        $102,275 for the first quarter 2002. The interest in 2002 was incurred
        on the notes issued to Shelbourne Management in connection with the
        purchase of the Advisory Agreements on February 14, 2002.

                                       20
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


        Interest income increased slightly to $16,065 during the three months
        ended March 31, 2003 from $14,867 during the three months ended March
        31, 2002 due to slightly higher cash balances invested.

        Other income increased to $8,656 for the three months ended March 31,
        2003 from $1,992 for the three months ended March 31, 2002 due to the
        refund of utility charges due to the sale of Southport Shopping Center.
        These refunds are due to final readings being less than the estimated
        bills that were previously billed.

        Inflation

        Inflation is not expected to have a material impact on the operations or
        financial position of Company.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

        The primary market risk we face is interest rate sensitivity. Our
        long-term debt bears interest at a floating rate, and therefore we are
        exposed to the risk of interest rate changes. At May 10, 2003,
        borrowings under our secured loan totaled $17,495,084 and initially bore
        an interest rate of LIBOR plus 2.75%. Based on the balance outstanding
        on our credit facility at May 10, 2003 and the interest rate at that
        date, a 10% increase in LIBOR would increase our interest expense in
        2003 by approximately $23,443. Conversely, a 10% decrease in LIBOR would
        decrease our interest expense in 2003 by the same amount. The gain or
        loss we ultimately realize with respect to interest rate fluctuations
        will depend on the actual interest rates during that period. We do not
        believe that we have any risk related to derivative financial
        instruments.

ITEM 4. CONTROLS AND PROCEDURES

        Our principal executive officer and principal financial officer have,
        within 90 days of the filing date of this quarterly report, evaluated
        the effectiveness of the Corporation's disclosure controls and
        procedures (as defined in Exchange Act Rules 13a - 14(c)) and have
        determined that such disclosure controls and procedures are adequate.
        There have been no significant changes in the Corporation's internal
        controls or in other factors that could significantly affect such
        internal controls since the date of evaluation. Accordingly, no
        corrective actions have been taken with regard to significant
        deficiencies or material weaknesses.





















                                       21
<PAGE>


                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003



                           PART II. OTHER INFORMATION

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

        (a) EXHIBITS

        Exhibits required by Item 601 of Regulation S-K are filed herewith or
        incorporated herein by reference and are listed in the attached Exhibit
        Index.


        (b) REPORTS ON FORM 8-K

        The following reports on Form 8-K were filed on behalf of the Registrant
        during the quarter ended March 31, 2003:

        (i) Acquisition of Accotel Properties.

        Item reported: 2

        Dated filed: January 16, 2003

        (ii) Sale of Southport Property.

        Item reported: 2

        Dated filed: January 30, 2003

        (iii) Fleet Loan.

        Item reported: 5

        Dated filed: February 24, 2003

        (iv) Sale of New York, New York Property. Issuance of Dividend.

        Item reported: 5

        Dated filed: March 3, 2003















                                       22
<PAGE>


                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


                                   SIGNATURES

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


Shelbourne Properties I, Inc.
(Registrant)


Dated: May 14, 2003                       By: /S/ Michael L. Ashner
                                              ---------------------------
                                              Michael L. Ashner
                                              Chief Executive Officer




































                                       23
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


CERTIFICATIONS

I, Michael L. Ashner, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Shelbourne Properties
I, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant is made known to us, particularly during
the period in which this quarterly report is being prepared:

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures on our evaluation as of the Evaluation
Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


         Date: May 14, 2003              /s/ Michael L. Ashner
                                         ---------------------------
                                         Michael L. Ashner
                                         Chief Executive Officer



                                       24
<PAGE>


                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


CERTIFICATIONS

I, Carolyn B. Tiffany, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Shelbourne Properties,
I Inc;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant is made known to us, particularly during
the period in which this quarterly report is being prepared:

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures on our evaluation as of the Evaluation
Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
registrant's board of directors (or persons performing the equivalent
functions):

a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and

b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6. The registrant's other certifying officers and I have indicated in this
quarterly report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the date of our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.


         Date: May 14, 2003                           /s/ Carolyn B. Tiffany
                                                     ----------------------
                                                     Carolyn B. Tiffany
                                                     Chief Financial Officer




                                       25
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


EXHIBIT INDEX

<TABLE>
<CAPTION>
Exhibit
Number                              Description                                                           Page
------                              -----------                                                           ----
<S>      <C>                                                                                              <C>
2.1      Stock Purchase Agreement among HX Investors,
         Exeter Capital Corporation and the Company                                                       (4)
2.2      Amendment No. 1 to Stock Purchase Agreement                                                      (6)
2.3      Plan of Liquidation                                                                              (7)
3.1      Amended and Restated Certificate of Incorporation of the Company                                 (1)
3.2      Amended and Restated Bylaws of the Corporation                                                   (1)
4.1      Limited Partnership of the operating partnership                                                 (1)
4.2      Stockholder Rights Agreement                                                                     (1)
4.3      Amendment to Stockholder Rights Agreement                                                        (2)
4.4      Restated Partnership Unit Designation for 5% Class A Preferred                                   (9)
         Partnership Units (incorporated by reference to Exhibit E-1 of Exhibit 10.4)
4.5      Stockholder Agreement, among the Companies and                                                   (3)
4.6      HX Investors, LP and Exeter Capital Corporation, dated as of April 30, 2002
4.6      Amendment No. 2 to Stockholder Rights Agreement                                                  (5)
4.7      Partnership Unit Designation of the Class B Partnership Units of the Operating Partnership       (8)
10.1     Settlement Agreement and Mutual Release between
         HX Investors, the Companies and Shelbourne Management                                            (4)
10.2     Amendment No. 1 to Settlement Agreement                                                          (6)
10.3     Purchase Agreement, dated as of January 15, 2003,                                                (9)
         between the Shelbourne JV LLC and Realty Holdings of America, LLC
10.4     Agreement, dated as of January 15, 2003, among                                                   (9)
         Presidio Capital Investment Company, LLC (and certain of its subsidiaries),
         Shelbourne Management, NorthStar Capital Investment Corp., each of the
         Shelbourne REITs and its operating partnership and HX Investors, L.P
10.5     Loan Agreement, dated as of February 19, 2003, among Shelbourne Properties I L.P.,               (10)
         Shelbourne Properties II L.P., Shelbourne Properties III L.P., Shelbourne Richmond
         Company LLC, Shelbourne Matthews Company LLC, Shelbourne
         Las Vegas Company LLC, Century Park I Joint Venture, Seattle Landmark
         Joint Venture, Tri-Columbus Associates and Fleet National Bank and the other
         lending institutions which may become party thereto and Fleet National Bank, as agent
10.6     Form of Guaranty, dated as of February 19, 2003, from Shelbourne Properties III, Inc. and        (10)
         Shelbourne Properties III L.P.
10.7     Form of Indemnity, Contribution and Subrogation Agreement, dated as of February                  (10)
         19, 2003, among the REITs and the operating partnerships
10.8     Form of Deed of Trust, Assignment of Leases and Rents, Security Agreement                        (10)
         and Fixture Filing with respect to the Collateral Properties dated as of February 19, 2003
         in favor of Fleet National Bank
10.9     Cash Management Agreement, dated February 19, 2003, among Shelbourne Properties                  (10)
         I L.P., Shelbourne Properties II L.P., Shelbourne Properties III L.P., Fleet National Bank,
         as agent for itself and the Lenders, and various subsidiaries of the Shelbourne OP's listed
         on Exhibit A thereto
99.1      Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                        28
</TABLE>

------------------
(1)  incorporated by reference to the Registration Statement of the Company on
     Form S-4 filed on February 11, 2000, as amended
(2)  incorporated by reference to the Current Report of the Company on Form 8-K
     filed on February 14, 2002
(3)  incorporated by reference to the Current Report of the Company on Form 8-K
     filed on May 14, 2002.


                                       26
<PAGE>

                          SHELBOURNE PROPERTIES I, INC.
                            FORM 10Q- MARCH 31, 2003


(4)  incorporated by reference to the Current Report of the Company on Form 8-K
     filed on July 2, 2002.
(5)  incorporated by reference to the Current Report of the Company on Form 8-K
     filed on July 8, 2002
(6)  incorporated by reference to the Current Report of the Company on Form 8-K
     filed on August 5, 2002
(7)  incorporated by reference to Appendix A to the Company's Definitive Proxy
     Statement on Schedule 14A filed on September 27, 2002
(8)  incorporated by reference to the Quarterly Report on Form 10-Q of the
     Company filed on November 14, 2002.
(9)  incorporated by reference to the Current Report of the Company on Form 8-K
     filed on January 15, 2003.
(10) incorporated by reference to the Current Report of the Company on Form 8-K
     filed on February 24, 2003.


















                                       27