----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D.C. 20549**

**FORM      10-QSB**

|   | **MAXUS                REALTY TRUST, INC.**                                      |   |
|--------|----------------------------------------------------------------------------------|--------|
|   | (Exact                name of small business issuer as specified in its charter) |   |

|   | Missouri                                       |   | 43-1339136                            |   |
|--------|------------------------------------------------|--------|---------------------------------------|--------|
|   | (State                or other jurisdiction of |   | (I.R.S.                Employer       |   |
|   | incorporation                or organization)  |   | Identification                Number) |   |

|   | 104                Armour, North Kansas City, Missouri 64116 |   |
|--------|--------------------------------------------------------------|--------|
|   | (Address                of principal executive offices)      |   |

|   | (816)                303-4500                                   |   |
|--------|-----------------------------------------------------------------|--------|
|   | (Issuer's                telephone number, including area code) |   |

----

| INDEX                        |                                                                           |   |
|------------------------------|--------------------------------------------------------------------------------|--------|
|                         |                                                                           |   |
|                         |                                                                           | Page   |
| PART                I -      | FINANCIAL                INFORMATION                                           |   |
|                         |                                                                           |   |
| ITEM                1.       | FINANCIAL                STATEMENTS:                                           |   |
|                         | Consolidated                Balance Sheets                                     | 3      |
|                         | Consolidated                Statements of Operations                           | 4      |
|                         | Consolidated                Statements of Cash Flows                           | 5      |
|                         |                                                                           |   |
| ITEM                2.       | MANAGEMENT’S                DISCUSSION AND ANALYSIS OR PLAN OF OPERATION | 12     |
|                         |                                                                           |   |
| ITEM                3.       | CONTROLS                AND PROCEDURES                                         | 20     |
|                         |                                                                           |   |
| PART                II -     | OTHER                INFORMATION                                               |   |
|                         |                                                                           |   |
| ITEM                1.       | LEGAL                PROCEEDINGS                                               | 20     |
| ITEM                2.       | UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF PROCEEDS     | 21     |
| ITEM                3.       | DEFAULTS                UPON SENIOR SECURITIES                                 | 21     |
| ITEM                4.       | SUBMISSION                OF MATTERS TO A VOTE OF SECURITY HOLDERS             | 21     |
| ITEM                5.       | OTHER                INFORMATION                                               | 22     |
| ITEM                6.       | EXHIBITS                                                                       | 22     |
|                         |                                                                           |   |
| SIGNATURES                   | 23                                                                             |
| EXHIBIT                INDEX | 24                                                                             |

----

|                                                                           |   | September                30, |       | December                31, |   |
|--------------------------------------------------------------------------------|--------|------------------------------|------------|-----------------------------|--------|
|                                                                           |   | 2006                         |       | 2005                        |   |
| Assets                                                                         |   | (Unaudited)                  |       |                        |   |
| Investment                property:                                            |   |                         |       |                        |   |
| Land                                                                           |   | $                            | 2,125,000  |                        |   | 1,420,000 |   |
| Buildings                and improvements                                      |   |                         | 42,614,000 |                        |   | 38,200,000 |   |
| Personal                property                                               |   |                         | 3,182,000  |                        |   | 2,961,000 |   |
|                                                                           |   |                         | 47,921,000 |                        |   | 42,581,000 |   |
|                                                                           |   |                         |       |                        |   |   |   |
| Less                accumulated depreciation                                   |   |                         | (6,954,000 | )                           |   | (5,527,000 | ) |
|                                                                           |   |                         |       |                        |   |   |   |
| Total                investment property, net                                  |   |                         | 40,967,000 |                        |   | 37,054,000 |   |
|                                                                           |   |                         |       |                        |   |   |   |
| Cash                                                                           |   |                         | 8,152,000  |                        |   | 2,009,000 |   |
| Escrows                and reserves                                            |   |                         | 1,250,000  |                        |   | 936,000 |   |
| Note                receivable                                                 |   |                         | 4,058,000  |                        |   | 4,091,000 |   |
| Accounts                receivable                                             |   |                         | 59,000     |                        |   | 6,000 |   |
| Prepaid                expenses and other assets                               |   |                         | 357,000    |                        |   | 227,000 |   |
| Intangible                assets, net                                          |   |                         | 252,000    |                        |   | 98,000 |   |
| Deferred                expenses, less accumulated amortization                |   |                         | 476,000    |                        |   | 306,000 |   |
| Total                assets of continuing operations                           |   | $                            | 55,571,000 |                        |   | 44,727,000 |   |
| Assets                of discontinued operations - property held for sale      |   |                         | 1,256,000  |                        |   | 9,931,000 |   |
| Total                assets                                                    |   | $                            | 56,827,000 |                        |   | 54,658,000 |   |
|                                                                           |   |                         |       |                        |   |   |   |
| Liabilities                and Shareholders’ Equity                      |   |                         |       |                        |   |   |   |
| Liabilities:                                                                   |   |                         |       |                        |   |   |   |
| Mortgage                notes payable                                          |   | $                            | 37,546,000 |                        |   | 29,373,000 |   |
| Note                payable                                                    |   |                         | 4,058,000  |                        |   | 4,091,000 |   |
| Accounts                payable, prepaid rent and accrued expenses             |   |                         | 973,000    |                        |   | 894,000 |   |
| Real                estate taxes payable                                       |   |                         | 535,000    |                        |   | 256,000 |   |
| Refundable                tenant deposits                                      |   |                         | 218,000    |                        |   | 200,000 |   |
| Other                accrued liabilities                                       |   |                         | 628,000    |                        |   | 741,000 |   |
| Total                liabilities of continuing operations                      |   | $                            | 43,958,000 |                        |   | 35,555,000 |   |
| Liabilities                of discontinued operations - property held for sale |   |                         | 981,000    |                        |   | 8,163,000 |   |
| Total                liabilities                                               |   | $                            | 44,939,000 |                        |   | 43,718,000 |   |
|                                                                           |   |                         |       |                        |   |   |   |
| Minority                interest                                               |   |                         | 660,000    |                        |   | 629,000 |   |
| Shareholders’                equity:                                     |   |                         |       |                        |   |   |   |
| Common                stock, $1 par value; Authorized 5,000,000 shares,        |   |                         |       |                        |   |   |   |
| issued                and outstanding 1,401,000 and 1,401,000 shares           |   |                         |       |                        |   |   |   |
| in                2006 and 2005, respectively                                  |   |                         | 1,401,000  |                        |   | 1,401,000 |   |
| Preferred                Stock, $0.01 par value; Authorized 5,000,000 shares,  |   |                         |       |                        |   |   |   |
| no                shares issued and outstanding                                |   |                         | ---        |                        |   | --- |   |
| Additional                paid-in capital                                      |   |                         | 19,130,000 |                        |   | 19,130,000 |   |
| Distributions                in excess of accumulated earnings                 |   |                         | (9,303,000 | )                           |   | (10,220,000 | ) |
| Total                shareholders’ equity                                |   |                         | 11,228,000 |                        |   | 10,311,000 |   |
|                                                                           |   | $                            | 56,827,000 |                        |   | 54,658,000 |   |

----

|                                                                   |   |  Three                Months Ended |      | Nine                Months Ended  |   |
|------------------------------------------------------------------------|--------|-----------------------------------------|-----------|----------------------------------------|--------|
|                                                                   |   | Sept.                30,                |      | Sept.                30,               |   | Sept.                30, |   | Sept.                30, |   |
| Income                                                                 |   |                                    | 2006      |                                   |   | 2005 |   |   | 2006 |   |   | 2005 |   |
| Revenues:                                                              |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Rental                                                                 |   |                                    | 1,748,000 |                                   |   | 1,709,000 |   |   | 5,317,000 |   |   | 4,146,000 |   |
| Other                                                                  |   |                                    | 249,000   |                                   |   | 200,000 |   |   | 663,000 |   |   | 534,000 |   |
| Total                revenues                                          |   |                                    | 1,997,000 |                                   |   | 1,909,000 |   |   | 5,980,000 |   |   | 4,680,000 |   |
| Expenses:                                                              |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Depreciation                and amortization                           |   |                                    | 460,000   |                                   |   | 551,000 |   |   | 1,526,000 |   |   | 1,246,000 |   |
| Repairs                and maintenance                                 |   |                                    | 244,000   |                                   |   | 240,000 |   |   | 727,000 |   |   | 617,000 |   |
| Turn                costs and leasing                                  |   |                                    | 125,000   |                                   |   | 136,000 |   |   | 333,000 |   |   | 304,000 |   |
| Utilities                                                              |   |                                    | 139,000   |                                   |   | 135,000 |   |   | 400,000 |   |   | 326,000 |   |
| Real                estate taxes                                       |   |                                    | 146,000   |                                   |   | 135,000 |   |   | 424,000 |   |   | 330,000 |   |
| Insurance                                                              |   |                                    | 83,000    |                                   |   | 76,000 |   |   | 236,000 |   |   | 195,000 |   |
| Property                management fees - related parties              |   |                                    | 93,000    |                                   |   | 93,000 |   |   | 289,000 |   |   | 230,000 |   |
| Other                operating expenses                                |   |                                    | 385,000   |                                   |   | 281,000 |   |   | 916,000 |   |   | 656,000 |   |
| General                and administrative                              |   |                                    | 156,000   |                                   |   | 127,000 |   |   | 336,000 |   |   | 358,000 |   |
| Total                operating expenses                                |   |                                    | 1,831,000 |                                   |   | 1,774,000 |   |   | 5,187,000 |   |   | 4,262,000 |   |
|                                                                   |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Net                operating income                                    |   |                                    | 166,000   |                                   |   | 135,000 |   |   | 793,000 |   |   | 418,000 |   |
| Interest                income                                         |   |                                    | (183,000  | )                                      |   | (153,000 | ) |   | (480,000 | ) |   | (461,000 | ) |
| Interest                expense                                        |   |                                    | 780,000   |                                   |   | 686,000 |   |   | 1,939,000 |   |   | 1,595,000 |   |
|      Gain              on debt extinguishment |   |                                    | (219,000  | )                                      |   | --- |   |   | (219,000 | ) |   | --- |   |
| Loss                before minority interest and                       |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| discontinued                operations                                 |   |                                    | (212,000  | )                                      |   | (398,000 | ) |   | (447,000 | ) |   | (716,000 | ) |
| Less                minority interest in continuing operations         |   |                                    | 7,000     |                                   |   | 10,000 |   |   | 15,000 |   |   | 13,000 |   |
| Loss                from continuing operations                         |   |                                    | (205,000  | )                                      |   | (388,000 | ) |   | (432,000 | ) |   | (703,000 | ) |
| Income                (loss) from discontinued operations              |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| before                minority interest                                |   |                                    | 1,219,000 |                                   |   | 19,000 |   |   | 1,395,000 |   |   | 23,000 |   |
| Less                minority interest in discontinued operations       |   |                                    | (40,000   | )                                      |   | --- |   |   | (46,000 | ) |   | --- |   |
| Income                (loss) from discontinued operations              |   |                                    | 1,179,000 |                                   |   | 19,000 |   |   | 1,349,000 |   |   | 23,000 |   |
|                                                                   |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Net                income (loss)                                       |   |                                    | 974,000   |                                   |   | (369,000 | ) |   | 917,000 |   |   | (680,000 | ) |
|                                                                   |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Per                share data (basic and diluted):                     |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Loss                from continuing operations                         |   | $                                       | (0.15     | )                                      |   | (0.30 | ) |   | (0.31 | ) |   | (0.54 | ) |
| Income                (loss) from discontinued operations              |   |                                    | 0.84      |                                   |   | 0.01 |   |   | .96 |   |   | .02 |   |
| Net                income (loss) per share                             |   | $                                       | 0.69      |                                   |   | (0.29 | ) |   | 0.65 |   |   | (0.52 | ) |
|                                                                   |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Distributions                paid in current year                      |   | $                                       | ---       |                                   |   | 0.25 |   |   | --- |   |   | 0.75 |   |
|                                                                   |   |                                    |      |                                   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding                     |   |                                    | 1,401,000 |                                   |   | 1,299,000 |   |   | 1,401,000 |   |   | 1,297,000 |   |

----

|                                                                                                                                   |   | Nine                Months Ended |        |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|-------------|
| Cash              flows from operating activities:                                                                                     |   | Sept.30,                2006     |        | Sept.30,                2005 |   |
| Net                income (loss)                                                                                                       |   | $                                | 917,000     |   |   | (680,000 | ) |
| Adjustments                to reconcile net income (loss)                to                net cash provided by operating              |   |                             |        |   |   |   |   |
| activities                of continuing operations:                                                                                    |   |                             |        |   |   |   |   |
| Income                from discontinued operations                                                                                     |   |                             | (1,395,000  | ) |   | (23,000 | ) |
| Minority                interest                                                                                                       |   |                             | 31,000      |   |   | (12,000 | ) |
| Depreciation                and in-place lease amortization                                                                            |   |                             | 1,526,000   |   |   | 1,246,000 |   |
| Amortization                of loan acquisition costs                                                                                  |   |                             | 58,000      |   |   | 67,000 |   |
| Gain              on debt extinguishment                                                                                               |   |                             | (219,000    | ) |   | --- |   |
| Loan                premium amortization                                                                                               |   |                             | (64,000     | ) |   | --- |   |
| Expenses                paid from proceeds of refinancings                                                                             |   |                             | 201,000     |   |   | --- |   |
| Changes                in accounts affecting operations:                                                                               |   |                             |        |   |   |   |   |
| Accounts                receivable                                                                                                     |   |                             | (53,000     | ) |   | (13,000 | ) |
| Prepaid                expenses and other assets                                                                                       |   |                             | (128,000    | ) |   | (108,000 | ) |
| Escrows                and reserves, net                                                                                               |   |                             | (135,000    | ) |   | (97,000 | ) |
| Accounts                payable and other liabilities                                                                                  |   |                             | 370,000     |   |   | 372,000 |   |
| Net                cash provided by operating activities of continuing                operations                                       |   |                             | 1,109,000   |   |   | 752,000 |   |
| Net                cash provided by (used in) discontinued operations                                                                  |   |                             | (269,000    | ) |   | 143,000 |   |
| Net                cash provided by operating activities                                                                               |   |                             | 540,000     |   |   | 895,000 |   |
|                                                                                                                                   |   |                             |        |   |   |   |   |
| Cash                flows from investing activities:                                                                                   |   |                             |        |   |   |   |   |
| Purchase                of available for sale securities                                                                               |   |                             | ---         |   |   | (21,000 | ) |
| Acquisition                of Northtown                                                                                                |   |                             | (125,000    | ) |   | --- |   |
| Acquisition                of Bicycle Club                                                                                             |   |                             | ---         |   |   | (2,765,000 | ) |
| Escrow                - acquisitions                                                                                                   |   |                             | ---         |   |   | (10,000 | ) |
| Capital                expenditures                                                                                                    |   |                             | (321,000    | ) |   | (418,000 | ) |
| Net                cash used in investing activities of continuing operations                                                          |   |                             | (446,000    | ) |   | (3,214,000 | ) |
| Net                cash provided by (used in) investing activities of discontinued                operations                           |   |                             | 1,070,000   |   |   | (25,000 | ) |
| Net                cash provided by (used in)  investing activities                                                               |   |                             | 624,000     |   |   | (3,239,000 | ) |
|                                                                                                                                   |   |                             |        |   |   |   |   |
| Cash                flows from financing activities:                                                                                   |   |                             |        |   |   |   |   |
| Principal                payments on mortgage notes payable                                                                            |   |                             | (284,000    | ) |   | (96,,000 | ) |
| Proceeds                from mortgage notes                                                                                            |   |                             | 4,977,000   |   |   | 399,000 |   |
| Loan                fees                                                                                                               |   |                             | (11,000     | ) |   | (49,000 | ) |
| Issuance                of common stock                                                                                                |   |                             | ---         |   |   | 88,000 |   |
| Distributions                paid to shareholders                                                                                      |   |                             | ---         |   |   | (989,000 | ) |
| Net                cash provided by (used in) financing activities of continuing                operations                             |   |                             | 4,682,000   |   |   | (647,000 | ) |
| Net                cash used in activities of discontinued operations                                                                  |   |                             | (3,000      | ) |   | (78,000 | ) |
| Net                cash provided by (used in) financing activities                                                                     |   |                             | 4,679,000   |   |   | (725,000 | ) |
| Net                increase (decrease) in cash                                                                                         |   |                             | 6,143,000   |   |   | (3,069,000 | ) |
| Cash,                beginning of period                                                                                               |   |                             | 2,009,000   |   |   | 3,860,000 |   |
| Cash,                end of period                                                                                                     |   | $                                | 8,152,000   |   |   | 791,000 |   |
|                                                                                                                                   |   |                             |        |   |   |   |   |
| Supplemental                disclosure of cash flow information:                                                                       |   |                             |        |   |   |   |   |
| Cash                paid during the nine month period for interest                                                                     |   | $                                | 1,987,000   |   |   | 1,783,000 |   |
|                                                                                                                                   |   |                             |        |   |   |   |   |
| Supplemental                disclosure of non-cash investing and financing activities:                                                 |   |                             |        |   |   |   |   |
| Arbor                Gate renovations financed with accounts payable                                                                   |   | $                                | 1,302,000   |   |   | --- |   |
| Arbor                Gate renovations paid from insurance escrow account                                                               |   | $                                | 1,391,000   |   |   | --- |   |
| Arbor                Gate insurance proceeds received                                                                                  |   | $                                | 900,000     |   |   | --- |   |
| Arbor                Gate sales proceeds deposited into escrow                                                                         |   | $                                | 2,721,000   |   |   | --- |   |
| Bicycle                Club acquisition of net assets                                                                                  |   | $                                | ---         |   |   | 11,928,000 |   |
| Bicycle                Club mortgage notes payable & other liabilities                                                             |   | $                                | ---         |   |   | 9,165,000 |   |
| Northtown                acquisition of net assets                                                                                     |   | $                                | 5,194,000   |   |   | --- |   |
| Waverly                mortgage paid from escrow account                                                                               |   | $                                | 4,187,000   |   |   | --- |   |
| Mortgage                debt extinguished from refinancings                                                                            |   | $                                | 11,911,,000 |   |   | --- |   |
| Mortgage                notes resulting from refinancings                                                                              |   | $                                | 17,500,000  |   |   | 2,400,000 |   |
| Involuntary                conversion of investment property to insurance claims receivable                - Arbor                Gate |   | $                                | ---         |   |   | 928,000 |   |
| Involuntary                conversion of investment property to insurance claims receivable                -                Waverly    |   | $                                | ---         |   |   | 5,050,000 |   |

** **

** **

*Disclosure      About Segments of an Enterprise and Related Information*

----

**Three      Months Ended September 30, 2006:**

|                               |   |        |      | **Net                Income** |   |             |   |             |      |         |   | **Net                Income** |   |
|------------------------------------|--------|-------------|-----------|-------------------------------|--------|------------------|--------|------------------|-----------|--------------|--------|-------------------------------|--------|
|                               |   |        |      | **(Loss)**                    |   |             |   | **Depreciation** |      |         |   | **(Loss)**                    |   |
|                               |   | **Total**   |      | **Continuing**                |   | **Capital**      |   | **and**          |      | **Interest** |   | **Discontinued**              |   |
|                               |   | **Revenue** |      | **Operations**                |   | **Expenditures** |   | **Amortization** |      | **Expense**  |   | **Operations**                |   |
| Apartments                         |   | $           | 1,925,000 |                          |   | (137,000         | )      |             | 161,000   |         |   | 443,000                       |   |   | 542,000 |   |   | 1,284,000 |   |
| Commercial                Bldg     |   |        | 72,000    |                          |   | 34,000           |   |             | 5,250,000 |         |   | 17,000                        |   |   | 19,000 |   |   | 0 |   |
| Parent                & Other* |   |        | 0         |                          |   | (109,000         | )      |             | 0         |         |   | 0                             |   |   | 0 |   |   | (65,000 | ) |
| Subtotal                           |   |        | 1,997,000 |                          |   | (212,000         | )      |             | 5,411,000 |         |   | 460,000                       |   |   | 561,000 |   |   | 1,219,000 |   |
| Minority                Interest   |   |        | 0    |                          |   | 7,000            |   |             | 0    |         |   | 0                        |   |   | 0  |   |   | (40,000 | ) |
| Total                              |   | $           | 1,997,000 |                          |   | (205,000         | )      |             | 5,411,000 |         |   | 460,000                       |   |   | 561,000 |   |   | 1,179,000 |   |
|                               |   |        |      |                          |   |             |   |             |      |         |   |                          |   |   |   |   |   |   |   |

**Nine      Months Ended September 30, 2006:**

|                               |   |        |      | **Net                Income** |   |             |   |             |      |         |   |             |   |              |      |
|------------------------------------|--------|-------------|-----------|-------------------------------|--------|------------------|--------|------------------|-----------|--------------|--------|------------------|--------|-------------------|-----------|
|                               |   |        |      | **(Loss)**                    |   |             |   | **Depreciation** |      |         |   |             |   |              |      |
|                               |   | **Total**   |      | **Continuing**                |   | **Capital**      |   | ** and**    |      | **Interest** |   | **Discontinued** |   |              |      |
|                               |   | **Revenue** |      | **Operations**                |   | **Expenditures** |   | **Amortization** |      | **Expense**  |   | **Operations**   |   | **Assets****(1)** |      |
| Apartments                         |   | $           | 5,908,000 |                          |   | (215,000         | )      |             | 321,000   |         |   | 1,509,000        |   |              | 1,701,000 |   |   | 1,246,000 |   |   | 46,263,000 |   |
| Commercial                Bldg     |   |        | 72,000    |                          |   | 34,000           |   |             | 5,250,000 |         |   | 17,000           |   |              | 19,000    |   |   | 0 |   |   | 5,250,000 |   |
| Parent                & Other* |   |        | 0         |                          |   | (266,000         | )      |             | 0         |         |   | 0                |   |              | 0         |   |   | 149,000 |   |   | 4,058,000 |   |
| Subtotal                           |   |        | 5,980,000 |                          |   | (447,000         | )      |             | 5,571,000 |         |   | 1,526,000        |   |              | 1,720,000 |   |   | 1,395,000 |   |   | 55,571,000 |   |
| Minority                interest   |   |        | 0         |                          |   | 15,000           |   |             | 0         |         |   | 0                |   |              | 0         |   |   | (46,000 | ) |   | 0 |   |
| Total                              |   | $           | 5,980,000 |                          |   | (432,000         | )      |             | 5,571,000 |         |   | 1,526,000        |   |              | 1,720,000 |   |   | 1,349,000 |   |   | 55,571,000 |   |

----

| Current                  assets              |   | $      | ---       |   |
|----------------------------------------------|--------|--------|-----------|--------|
| In-Place                  lease              |   |   | 255,000   |   |
| Investment                  property         |   |   | 4,290,000 |   |
| Land                                         |   |   | 705,000   |   |
| Net                  current assets acquired |   |   | 69,000    |   |
| Net                  assets acquired         |   | $      | 5,319,000 |   |

|                                                                                                                                             |   | Sept.                30, 2006 |    | Dec.                31, 2005 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|---------|------------------------------|--------|
| In-place                leases, net of accumulated amortization of $3,000 and $224,000                     respectively |   | $                             | 252,000 |                         |   | 98,000 |   |
|                                                                                                                                             |   |                          |    |                         |   |   |   |
| Total                intangible assets, net                                                                                                      |   | $                             | 252,000 |                         |   | 98,000 |   |

** **
** **

** **
**l**

----

**l**

----

| Arbor                Gates' sale price                    |   | $      | 6,100,000  |   |
|-----------------------------------------------------------|--------|--------|------------|--------|
| Less                commissions & other closing costs |   |   | (173,000   | )      |
| Net                sale price                             |   | $      | 5,927,000  |   |
| Less                net book value of investment assets   |   |   | (4,525,000 | )      |
| Gain                on disposition                        |   | $      | 1,402,000  |   |

|                                                                           |   | September                30, |      | December                31, |   |
|--------------------------------------------------------------------------------|--------|------------------------------|-----------|-----------------------------|--------|
|                                                                           |   | 2006                         |      | 2005                        |   |
|                                                                           |   | (Unaudited)                  |      |                        |   |
| Assets                                                                         |   |                         |      |                        |   |
| Investment                property                                             |   |                         |      |                        |   |
| Land                                                                           |   | $                            | 128,000   |                        |   | 248,000 |   |
| Buildings                and improvements                                      |   |                         | ---       |                        |   | 2,573,000 |   |
| Personal                property                                               |   |                         | ---       |                        |   | 164,000 |   |
| Construction                in progress                                        |   |                         | ---       |                        |   | 611,000 |   |
|                                                                           |   |                         | 128,000   |                        |   | 3,596,000 |   |
|                                                                           |   |                         |      |                        |   |   |   |
| Less                accumulated depreciation                                   |   |                         | ---       |                        |   | (214,000 | ) |
| Total                investment property, net                                  |   |                         | 128,000   |                        |   | 3,382,000 |   |
|                                                                           |   |                         |      |                        |   |   |   |
|                                                                           |   |                         |      |                        |   |   |   |
| Escrows                and reserves                                            |   |                         | 779,000   |                        |   | 5,844,000 |   |
| Insurance                claims receivable                                     |   |                         | 265,000   |                        |   | 560,000 |   |
| Prepaid                expenses and other assets                               |   |                         | 84,000    |                        |   | 75,000 |   |
| Deferred                expenses, less accumulated amortization                |   |                         | ---       |                        |   | 70,000 |   |
|                                                                           |   |                         |      |                        |   |   |   |
| Assets                of discontinued operations - property held for sale      |   | $                            | 1,256,000 |                        |   | 9,931,000 |   |
|                                                                           |   |                         |      |                        |   |   |   |
|                                                                           |   |                         |      |                        |   |   |   |
| Liabilities:                                                                   |   |                         |      |                        |   |   |   |
| Mortgage                notes payable                                          |   | $                            | ---       |                        |   | 7,220,000 |   |
| Account                payable, prepaid rent and accrued expenses              |   |                         | 148,000   |                        |   | 762,000 |   |
| Deferred                Gain                                                   |   |                         | 791,000   |                        |   | --- |   |
| Real                estate taxes payable                                       |   |                         | 42,000    |                        |   | 172,000 |   |
| Refundable                tenant deposits                                      |   |                         | ---       |                        |   | 9,000 |   |
|                                                                           |   |                         |      |                        |   |   |   |
| Liabilities                of discontinued operations - property held for sale |   | $                            | 981,000   |                        |   | 8,163,000 |   |

----

|                                                           |   |                    Three Months Ended           |      |                    Nine Months Ended            |   |
|----------------------------------------------------------------|--------|----------------------------------------------------------------|-----------|----------------------------------------------------------------|--------|
|                                                           |   | Sept.                30,                                       |      | Sept.                30,                                       |   | Sept.                30, |   | Sept.                30, |   |
| Revenue:                                                       |   |                        2006 |      |                        2005 |   |                        2006 |   |                        2005 |   |
| Rental                                                         |   |                                                           | 46,000    |                                                           |   | 277,000 |   |   | 389,000 |   |   | 990,000 |   |
| Other                                                          |   |                                                           | 1,000     |                                                           |   | 25,000 |   |   | 16,000 |   |   | 122,000 |   |
| Total                revenues                                  |   |                                                           | 47,000    |                                                           |   | 302,000 |   |   | 405,000 |   |   | 1,112,000 |   |
|                                                           |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |
| Expenses:                                                      |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |
| Depreciation                and amortization                   |   |                                                           | ---       |                                                           |   | 112,000 |   |   | 41,000 |   |   | 395,000 |   |
| Repairs                and maintenance                         |   |                                                           | 17,000    |                                                           |   | 33,000 |   |   | 48,000 |   |   | 128,000 |   |
| Turn                costs and leasing                          |   |                                                           | 1,000     |                                                           |   | 16,000 |   |   | 6,000 |   |   | 62,000 |   |
| Utilities                                                      |   |                                                           | 5,000     |                                                           |   | 23,000 |   |   | 25,000 |   |   | 91,000 |   |
| Real                estate taxes                               |   |                                                           | 18,000    |                                                           |   | 35,000 |   |   | 54,000 |   |   | 97,000 |   |
| Insurance                                                      |   |                                                           | 11,000    |                                                           |   | 22,000 |   |   | 57,000 |   |   | 76,000 |   |
| Property                management fees - related parties      |   |                                                           | 4,000     |                                                           |   | 15,000 |   |   | 21,000 |   |   | 56,000 |   |
| Other                operating expenses                        |   |                                                           | 62,000    |                                                           |   | 45,000 |   |   | 111,000 |   |   | 140,000 |   |
| Total                operating expenses                        |   |                                                           | 118,000   |                                                           |   | 301,000 |   |   | 363,000 |   |   | 1,045,000 |   |
| Gain                on sale                                    |   |                                                           | 1,402,000 |                                                           |   |   |   |   | 1,402,000 |   |   |   |   |
| Net                operating income                            |   |                                                           | 1,331,000 |                                                           |   | 1,000 |   |   | 1,444,000 |   |   | 67,000 |   |
| Interest                income                                 |   |                                                           | (6,000    | )                                                              |   | --- |   |   | (32,000 | ) |   | --- |   |
| Interest                expense                                |   |                                                           | 53,000    |                                                           |   | 100,000 |   |   | 230,000 |   |   | 274,000 |   |
|                                                           |   |                                                           |      |                                                           |   |   |   |   |   |   |   |   |   |
| Income                (loss) from discontinued operations -ACI |   |                                                           | (65,000   | )                                                              |   | 118,000 |   |   | 149,000 |   |   | 230,000 |   |
| Income                from discontinued operations             |   | $                                                              | 1,219,000 |                                                           |   | 19,000 |   |   | 1,395,000 |   |   | 23,000 |   |

----

** **

**“**
** **
**”**

----

** **
** **

----

| PROPERTY                                                                                                          | #                UNITS | TYPE       | LOCATION                             | PURCHASE                DATE   |
|-------------------------------------------------------------------------------------------------------------------|------------------------|------------|--------------------------------------|--------------------------------|
|                                                                                                              |                   |       |                                 |                           |
| Barrington                HillsApartments(“Barrington                Hills”)                          | 232                    | Apartments | Little                Rock, AR       | November,                2001  |
|                                                                                                              |                   |       |                                 |                           |
| Bicycle                ClubApartments(“Bicycle                Club”)                                  | 312                    | Apartments | North                Kansas City, MO | July,                2005      |
|                                                                                                              |                   |       |                                 |                           |
| Chalet                Apartments - I                and II (“Chalet”)                                 | 234                    | Apartments | Topeka,                KS            | September,                2001 |
|                                                                                                              |                   |       |                                 |                           |
| Forest                Park Apartments(“Forest                Park”)(f.k.a.                North Winn) | 110                    | Apartments | Kansas                City, MO       | August,                2000    |
|                                                                                                              |                   |       |                                 |                           |
| King’s                CourtApartments                (1)(“King’s                Court”)   | 82                     | Apartments | Olathe,                KS            | August,                2001    |

----

|                                                                             |                                                                          |                                                                                          |                                 |                           |
|----------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|--------------------------------------|--------------------------------|
| Northtown                BusinessCenter                                          | 240,000                sq.                ft. &12.44                acres | Industrial                and relatedoffice                and mezzanine                space | North                Kansas City, MO | August                30, 2006 |
|                                                                             |                                                                          |                                                                                          |                                 |                           |
| Terrace                Apartments (1)(“Terrace”)                     | 84                                                                            | Apartments                                                                                    | Olathe,                KS            | April,                2004     |
|                                                                             |                                                                          |                                                                                          |                                 |                           |
| The                LandingsApartments(the                “Landings”) | 154                                                                           | Apartments                                                                                    | Little                Rock, AR       | September,                2001 |
|                                                                             |                                                                          |                                                                                          |                                 |                           |
| Waverly                Apartments(“Waverly”)                         | 128                                                                           | Apartments                                                                                    | Bay                Saint Louis, MS   | September,                2004 |

*UPREIT      Structure*

** **

----

----

|                                 | Balance                at     | Interest | Fixed                        | Due                              |
|--------------------------------------|-------------------------------|----------|------------------------------|----------------------------------|
|                                 | Sept.                30, 2006 | Rate     | or                (variable) | Date                             |
|                                 |                          |     |                         |                             |
| ACI                                  | 4,058,000                     | 12.63%   |                         | August                1, 2010    |
|                                 |                          |     |                         |                             |
| Barrington                Hills      | 5,453,000                     | 6.04%    |                         | July                1, 2029      |
|                                 |                          |     |                         |                             |
| Bicycle                Club          | 11,239,000                    | 6.19%    |                         | September                1, 2016 |
|                                 |                          |     |                         |                             |
| Chalet                I              | 3,813,000                     | 6.59%    |                         | October                1, 2008   |
|                                 |                          |     |                         |                             |
| Chalet                II             | 1,437,000                     | 6.54%    |                         | October                1, 2008   |
|                                 |                          |     |                         |                             |
| Forest                Park           | 2,368,000                     | 5.29%    |                         | September                1, 2015 |
|                                 |                          |     |                         |                             |
| Kings                Court/Terrace   | 2,270,000                     | 5.91%    | (variable)                   | May                1, 2009       |
|                                 |                          |     |                         |                             |
| Northtown                Bus. Center | 3,147,000                     | 6.87%    |                         | September                1, 2016 |
|                                 |                          |     |                         |                             |
| Terrace                              | 1,575,000                     | 6.87%    |                         | February                1, 2009  |
|                                 |                          |     |                         |                             |
| The                Landings          | 6,244,000                     | 6.19%    |                         | September                1, 2016 |
|                                 |                          |     |                         |                             |
| Total                                | $41,604,000                   |     |                         |                             |

----

|                                                              |   | Three                Months Ended |      | Nine                Months Ended |   |
|-------------------------------------------------------------------|--------|-----------------------------------|-----------|----------------------------------|--------|
|                                                              |   | Sept.                30,          |      | Sept.                30,         |   | Sept.                30, |   | Sept.                30, |   |
|                                                              |   | 2006                              |      | 2005                             |   | 2006 |   | 2005 |   |
| Net                income (loss) (1)                              |   |                              | 974,000   |                             |   | (369,000 | ) |   | 917,000 |   |   | (680,000 | ) |
|                                                              |   |                              |      |                             |   |   |   |   |   |   |   |   |   |
| Property                related depreciation and amortization (2) |   |                              | 460,000   |                             |   | 663,000 |   |   | 1,567,000 |   |   | 1,641,000 |   |
| Funds                from operations                              |   | $                                 | 1,434,000 |                             |   | 294,000 |   |   | 2,484,000 |   |   | 961,000 |   |

|                                                                                                                                      | OCCUPANCY                LEVELS AT                SEPTEMBER 30, |
|-------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|
|                                                                                                                                      | 2006                                                            |   | 2005 |
|                                                                                                                                      |                                                            |   |   |
|                 Barrington                Hills           | 88%                                                             |   | 89% |
|                 Bicycle                Club               | 90%                                                             |   | 91% |
|                 Chalet                                    | 96%                                                             |   | 97% |
|                 Forest                Park                | 95%                                                             |   | 92% |
|                 King’s                Court/Terrace | 92%                                                             |   | 85% |
|                 The                Landings               | 90%                                                             |   | 94% |
|                 Waverly                                   | 0%                                                              |   | 0% |
|                 Northtown                Business Center  | 95%                                                             |   | n/a |

----

----

|   | (a) | Evaluation                of disclosure controls and                procedures. |
|--------|-----|---------------------------------------------------------------------------------|

|   | (b) | Changes                in internal controls |
|--------|-----|---------------------------------------------|

| PART                II | OTHER                INFORMATION |
|------------------------|----------------------------------|

| ITEM                1. | LEGAL                PROCEEDINGS |
|------------------------|----------------------------------|

----

| ITEM                2. | UNREGISTERED                SALES OF EQUITY SECURTIES AND USE OF                PROCEEDS |
|------------------------|------------------------------------------------------------------------------------------|

| ITEM                3. | DEFAULTS                UPON SENIOR SECURITIES |
|------------------------|------------------------------------------------|

----

| ITEM                6. | EXHIBITS |
|------------------------|----------|

----

|   |                             |   | MAXUS                REALTY TRUST, INC.                              |
|--------|----------------------------------|--------|----------------------------------------------------------------------|
|   |                             |   |                                                                 |
| Date:  | November                14, 2006 | By:    | /s/                David L. Johnson                                  |
|   |                             |   | David                L. Johnson                                      |
|   |                             |   | Chairman                of the Board,                                |
|   |                             |   | President                and Chief Executive Officer                 |
|   |                             |   | Trustee                                                              |
|   |                             |   |                                                                 |
| Date:  | November                14, 2006 | By:    | /s/                John W. Alvey                                     |
|   |                             |   | John                W. Alvey                                         |
|   |                             |   | Vice                President                                        |
|   |                             |   | Chief                Financial and Accounting                Officer |

----

| Exhibit |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number  |   | Description                                                                                                                                                                                                                                                                                                                                                                                                              |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.1     |   | Articles                of Incorporation of the Registrant, as amended, are incorporated                by                reference to Exhibit 3.1 to the Registrant's Quarterly Report on                Form                10-QSB for the quarter ended March 31, 2005, as filed pursuant to                Rule                13a-13 under the Securities Exchange Act of 1934 (File No.                000-13754). |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3.2     |   | Bylaws                of the Registrant, as amended May 22, 2006.                                                                                                                                                                                                                                                                                                                                                        |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.1     |   | Promissory                Note Secured by Deed of Trust dated August 22, 2006 executed by Northtown                Business Center, L.L.C., in favor of Imperial Capital                Bank.                                                                                                                                                                                                                            |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4.2     |   | Deed                of Trust, Fixture Filing, Assignment of Rents, and Security Agreement                dated August 22, 2006, executed by Northtown Business Center, L.L.C.,                in                favor of Husch Trustee, Inc., as trustee, for the benefit of Imperial                Capital Bank.                                                                                                       |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.1    |   | Purchase                and Sale Agreement dated June 28, 2006, by and between Cherokee North                Kansas City, LLC, and Northtown Business Center, L.L.C.                                                                                                                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 10.2    |   | Second                Amended Optional Stock Dividend Plan, as amended September 5,                2006.                                                                                                                                                                                                                                                                                                                 |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 31.1    |   | Certification                of the Chief Executive Officer Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 31.2    |   | Certification                of the Chief Financial Officer Pursuant to Section 302 of the                Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                     |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 32.1    |   | Certification                of the Chief Executive Officer Pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                    |
|    |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 32.2    |   | Certification                of the Chief Financial Officer Pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                    |