<PAGE>

================================================================================

                                 UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

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

                                  FORM 10-Q/A

               QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
                    OF THE SECURITIES EXCHANGE ACT OF 1934

                   FOR THE THREE MONTHS ENDED March 31, 2002
                          COMMISSION FILE NO. 0-30889

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

                          HARBOR GLOBAL COMPANY LTD.
            (exact name of registrant as specified in its charter)

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

                      BERMUDA                  52-2256071
                  (STATE OR OTHER
                  JURISDICTION OF
                 INCORPORATION OR           (I.R.S. EMPLOYER
                   ORGANIZATION)           IDENTIFICATION NO.)
                 ONE FANEUIL HALL              02109-1820
                     MARKETPLACE
                     4TH FLOOR                 (ZIP CODE)
               BOSTON, MASSACHUSETTS
               (ADDRESS OF PRINCIPAL
                 EXECUTIVE OFFICES)

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

                                (617) 878-1600
             (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

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

                                  NO CHANGES
  (Former name, former address and former fiscal year, if changes since last
                                    report)

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

   Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve 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 [_]

   As of June 3, 2002, the Registrant had 5,649,311 common shares, par value
$.0025 per share, issued and outstanding.

================================================================================

<PAGE>

                               EXPLANATORY NOTE

   This Amendment No. 1 to the Quarterly Report on Form 10-Q (the "Form 10-Q")
of Harbor Global Company Ltd. (the "Company") for the three months ended March
31, 2002 is being filed to amend Item 1 (Financial Statements) of the Form 10-Q
to correct typographical errors in the consolidated financial statements and
accompanying notes. In accordance with Rule 12b-15 under the Securities
Exchange Act of 1934, the complete text of Item 1 as amended is set forth
herein. The revised financial statements reflect the following corrections:

    1) The figure "(21)" is replaced with the figure "21" in the line item
       "Provision for Income Taxes" located on the "Consolidated Statements of
       Operations".

    2) The figure "3,667" is replaced with the figure "(3,667)" in the line
       item "Unrealized and Realized (Gains) Losses on Venture Capital,
       Marketable Securities, and Long-term Investments, Net" located on the
       "Consolidated Statements of Cash Flows".

    3) The figure "(1,247)" is replaced with the figure "1,247" in the line
       item "Minority Interest" located on the "Consolidated Statements of Cash
       Flows".

    4) The figure "- -" is replaced with the figure "(1,261)" in the line item
       "Provision for Income Taxes" located within the "Notes To Consolidated
       Financial Statements--Segment Disclosures, March 31, 2002".

The revised financial statements contain no change in previously reported
information other than as described above.

                                      2

<PAGE>

                        PART I -- FINANCIAL INFORMATION

Item 1.  Financial Statements

                          HARBOR GLOBAL COMPANY LTD.

                          CONSOLIDATED BALANCE SHEETS
                (dollars in thousands except per share amounts)

<TABLE>
<CAPTION>
                                                                                      March 31,  December 31,
                                                                                        2002         2001
                                                                                     ----------- ------------
                                                                                     (Unaudited)
<S>                                                                                  <C>         <C>
                                       ASSETS
Cash and Cash Equivalents...........................................................  $  5,757     $  4,660
Restricted Cash.....................................................................     4,364        4,440
Marketable Securities...............................................................    22,319       19,653
Accounts Receivable.................................................................       810          469
Other Current Assets................................................................     1,010          940
Net Current Assets of Discontinued Operations.......................................     6,824        6,479
                                                                                      --------     --------
       Total Current Assets.........................................................    41,084       36,641
Long-Term Restricted Cash and Investments...........................................     5,000        5,000
Polish Venture Capital Investment...................................................     1,207        1,235
Marketable Securities...............................................................    24,899       18,800
Long-term Investments...............................................................     6,150        5,322
Building............................................................................    23,203       23,370
Other Long-term Assets..............................................................     1,045        1,022
Note Receivable.....................................................................     7,011        9,229
Goodwill............................................................................       953          953
                                                                                      --------     --------
       Total Assets.................................................................  $110,552     $101,572
                                                                                      ========     ========
                        LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts Payable....................................................................  $  2,696     $  1,299
Dividend Payable....................................................................     2,464        2,549
Accrued Expenses....................................................................     2,273        2,403
Accrued Fees Payable to Calypso Management..........................................     1,635        2,160
Amount Due to Officer on Compensation Liability.....................................     1,800        1,800
Foreign Taxes Payable...............................................................     3,247        2,162
                                                                                      --------     --------
       Total Current Liabilities....................................................    14,115       12,373
Deferred Taxes......................................................................     3,130        2,086
Note Payable........................................................................     5,000        5,000
                                                                                      --------     --------
Total Liabilities...................................................................    22,245       19,459
Minority Interest...................................................................    28,641       25,480
STOCKHOLDERS' EQUITY
Common shares, par value $.0025 per share; authorized 48,000,000 shares; 5,649,311
  shares issued and outstanding as of March 31, 2002 and December 31, 2001..........        14           14
Preferred shares, par value $.01 per share; authorized 1,000,000 shares; none issued        --           --
Paid-in Capital.....................................................................    62,768       62,768
Accumulated Deficit.................................................................    (8,448)      (9,453)
Other Comprehensive Income..........................................................
   Net Unrealized Gains on Available for Sale Marketable Securities (Net Of
     Deferred Taxes of $3,130,000 and 2,086,000 as of March 31, 2002 and
     December 31, 2001, respectively)...............................................     5,332        3,304
                                                                                      --------     --------
       Total Stockholders' Equity...................................................    59,666       56,633
       Total Liabilities and Stockholders' Equity...................................  $110,552     $101,572
                                                                                      ========     ========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                      3

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

                     CONSOLIDATED STATEMENTS OF OPERATIONS
                (Dollars In Thousands Except Per Share Amounts)
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                                         Three Months Ended
                                                                                             March 31,
                                                                                         ----------------
                                                                                           2002      2001
                                                                                         -------   -------
<S>                                                                                      <C>       <C>
Revenues:
   Real Estate Rental Revenue........................................................... $ 1,879   $ 1,562
   Interest Income......................................................................     730     1,133
   Other Income.........................................................................     341       432
                                                                                         -------   -------
       Total Revenues...................................................................   2,950     3,127
                                                                                         -------   -------
Operating Expenses:
   Salary and Benefit Expenses..........................................................    (680)     (763)
   Facility Expenses....................................................................    (304)     (325)
   Building and Property Management Expenses............................................    (505)     (584)
   Management Fee Expense...............................................................    (730)     (674)
   Other Expenses.......................................................................  (1,518)   (1,690)
                                                                                         -------   -------
       Total Operating Expenses.........................................................  (3,737)   (4,036)
                                                                                         -------   -------
       Operating Loss...................................................................    (787)     (909)
Other Income (Expense):
   Net Unrealized and Realized Gain (Loss) on Securities................................   3,878       735
   Write-down of Venture Capital Investments............................................      --    (2,853)
                                                                                         -------   -------
       Total Other Income (Expense).....................................................   3,878    (2,118)
                                                                                         -------   -------
       Income (Loss) from Continuing Operations before Provision for Income Taxes,
         Minority Interest and Equity Loss on Investment................................   3,091    (3,027)
Provision for Income Taxes..............................................................  (1,261)       21
                                                                                         -------   -------
       Income (Loss) from Continuing Operations before Minority Interest and Equity
         Loss on Investment.............................................................   1,830    (3,006)
Minority Interest (Expense) Income......................................................  (1,247)    2,630
Equity Loss on Venture Capital Investments..............................................     (28)       --
       Net Income (Loss) from Continuing Operations before Discontinued Operations......     555      (376)
Discontinued Operations:
Net Loss from Operations................................................................      --      (333)
                                                                                         -------   -------
Change in Estimated Loss on Disposal....................................................     450        --
       Net Income (Loss)................................................................ $ 1,005   $  (709)
                                                                                         =======   =======
Earnings (Loss) Per Share:
Continuing Operations:
   Basic and Diluted Earnings (Loss) Per Share.......................................... $  0.10   $ (0.07)
Discontinued Operations--Basic and Diluted Earnings (Loss) Per Share....................    0.08     (0.06)
                                                                                         -------   -------
Basic and Diluted Earnings (Loss) Per Share............................................. $  0.18     (0.13)
Weighted Average Basic and Diluted Shares Outstanding...................................   5,649     5,643
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                      4

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                (Dollars In Thousands Except Per Share Amounts)
                                  (Unaudited)

<TABLE>
<CAPTION>
                                                                                      Three Months Ended
                                                                                          March 31,
                                                                                      -----------------
                                                                                        2002     2001
                                                                                      -------  --------
<S>                                                                                   <C>      <C>
Cash Flows from Operating Activities:
   Net Income (Loss)................................................................. $ 1,005  $   (709)
   Net Income (Loss) from Discontinued Operations....................................     450      (333)
                                                                                      -------  --------
Net Income (Loss) from Continuing Operations.........................................     555      (376)
Adjustments to Reconcile Net Loss to Net Cash Used in................................
   Operating Activities--Depreciation and Amortization...............................     196       269
   Unrealized and Realized (Gains) Losses on Venture Capital, Marketable Securities,
     and Long-term Investments, Net..................................................  (3,667)    2,449
   Minority Interest.................................................................   1,247    (2,629)
   Non-cash Interest Income on Note Receivable.......................................    (282)     (324)
   Interest Earned on Restricted Cash................................................      (8)      (25)
Changes in Operating Assets and Liabilities --
   Other Current Assets..............................................................  (3,077)  (18,073)
   Other Long-term Assets............................................................     (34)    5,173
   Accrued Expenses and Accounts Payable.............................................   1,827    (2,317)
                                                                                      -------  --------
Total Adjustments and Changes in Operating Assets and Liabilities....................  (3,799)  (15,477)
Net Cash Used in Continuing Operating Activities.....................................  (3,244)  (15,853)
Net Cash Provided By (Used In) Discontinued Operations...............................     105      (748)
                                                                                      -------  --------
Cash Flows from Investing Activities:
   Purchase of Long-term Investments and Marketable Securities.......................  (5,514)   (3,768)
   Proceeds from Sale of Long-term Investments and Marketable Securities.............   7,249     1,117
Net Cash Flow from Other Investing Activities........................................      --       517
Proceeds from Payment on Note Receivable.............................................   2,500     2,500
                                                                                      -------  --------
Net Cash Provided by Investing Activities............................................   4,235       366
                                                                                      -------  --------
Cash Flows from Financing Activities:
   Dividends Paid....................................................................     (85)       --
   Reclassification of Restricted Cash...............................................      85       370
Net Cash Provided by Financing Activities............................................      --       370
                                                                                      -------  --------
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents........      --        (6)
Net Increase (Decrease) in Cash and Cash Equivalents.................................   1,097   (15,871)
                                                                                      -------  --------
Cash and Cash Equivalents, Beginning of Period.......................................   4,660    23,786
                                                                                      -------  --------
Cash and Cash Equivalents, End of Period............................................. $ 5,757  $  7,915
                                                                                      =======  ========
</TABLE>

  The accompanying notes are an integral part of these consolidated financial
                                  statements.

                                      5

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Unaudited)
                                March 31, 2002

(1)  BACKGROUND AND BASIS OF PRESENTATION

  Background

   Harbor Global Company Ltd., a Bermuda limited duration company ("Harbor
Global" or the "Company"), was formed in May 2000 as a wholly owned subsidiary
of The Pioneer Group, Inc., a Delaware corporation ("Pioneer") to facilitate
the merger between Pioneer and UniCredito Italiano, S.p.A., an Italian
financial institution ("UniCredito"). As a condition to closing the merger and
pursuant to a Distribution Agreement dated as of October 24, 2000 by and among
the Company, Pioneer and Harbor Global II Ltd. (the "Distribution Agreement"),
Pioneer agreed to transfer certain of its assets to Harbor Global and to
distribute all of the outstanding Harbor Global common shares to its
stockholders. Pioneer transferred to Harbor Global all of the assets required
to be transferred pursuant to the Merger Agreement and the Distribution
Agreement and, on October 24, 2000, Pioneer distributed all of the outstanding
common shares of Harbor Global to its stockholders (the "Spin-off"). Pioneer
stockholders received one Harbor Global common share for every five shares of
Pioneer common stock held on that date.

   The Company's assets primarily consist of the following: Russian real estate
management and investment management operations; real estate management
operations; and its other assets and operations ("Other"). Other includes
approximately $20.6 million in cash and marketable securities held directly by
Harbor Global of which $5 million is restricted to satisfy liabilities
associated with Pioneer's former gold mining operations and $1.8 million is
restricted to satisfy a compensation liability payable to Harbor Global's Chief
Executive Officer. Other also includes a non-interest-bearing promissory note
with an original face value of $13.8 million and a balance outstanding of $8.8
million, payable to Pioglobal Goldfields II Limited, a wholly-owned subsidiary
of the Company.

   Harbor Global seeks to liquidate its assets in a timely fashion on
economically advantageous terms and continues to operate its assets as going
concern businesses until they are liquidated. Harbor Global's memorandum of
association provides that the liquidation of its assets must be completed upon
the earlier of October 24, 2005, the fifth anniversary of the date of the
Spin-off, or the distribution by Harbor Global of all its assets to its
shareholders. If Harbor Global has not liquidated all of its assets before
October 24, 2005, the Harbor Global board of directors, in its discretion, may
authorize Harbor Global to continue to operate its assets for up to three
additional one year periods.

  Basis of Presentation

   In the opinion of management, the accompanying financial statements contain
all adjustments necessary to present fairly the financial position as of March
31, 2002 and the results of operations and cash flows for the three months
ended March 31, 2002 and 2001. Results for interim periods may not be
necessarily indicative of the results to be expected for the year. These
interim financial statements should be read in conjunction with the Company's
2001 Annual Report on Form 10-K for the year ended December 31, 2001 filed with
the Securities and Exchange Commission.

   The consolidated financial statements included herein have been prepared
using the historical cost basis of the assets and liabilities and historical
results of operations related to the Company's businesses.

   Since Harbor Global is a Bermuda limited duration company, the Company
expects that for United States federal income tax purposes it will be taxed as
a partnership and, as a result, all United States federal income tax

                                      6

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                March 31, 2002

expenses have been and will be borne by its shareholders. The income tax
provisions and deferred taxes included in the accompanying consolidated
financial statements relate to the Company's corporate subsidiaries that are
located primarily in Russia.

(2)  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, PRINCIPLES OF CONSOLIDATION

  Consolidation

   The preparation of the consolidated financial statements in conformity with
generally accepted accounting principles 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 consolidated financial statements and the
reported amounts of revenues and expenses. Actual results could differ from
those estimates. The most significant estimates with regard to these
consolidated financial statements relate to the valuation of investments of
Open Joint-Stock Company "PIOGLOBAL Investment Fund" ("PIOGLOBAL Investment
Fund", formerly Open Joint-Stock Company "Pioneer First Investment Fund") and
venture capital investments.

  Polish Venture Capital Investment

   The Company reports its approximately 8% limited partnership interest in the
Pioneer Poland Fund on the equity basis of accounting. No market quotes are
available for the venture capital investments. Most of these investments are
valued at fair value, as determined by Pioneer Poland Fund's management. For
the three months ended March 31, 2002, the Company recorded no write-downs on
its investment. For the three months ended March 31, 2001, the carrying value
of investments in the venture capital portfolio was written down by
approximately $2,853,000 when previously the Company fully consolidated the
Pioneer Poland Fund. Approximately 92% of the write-downs were attributable to
minority shareholders.

  Russian Investments

   Russian investments consist of equity securities held in the portfolio of
the PIOGLOBAL Investment Fund. Such securities are classified as
available-for-sale and recorded at fair value pursuant to Statement of
Financial Accounting Standards ("SFAS") No. 115, "Accounting for Certain
Investments in Debt and Equity Securities."

   Accordingly, management has determined that for certain of these equity
securities there was sufficient liquidity in the Russian market to account for
them as long-term marketable securities based on quoted prices on the Russian
Trading System. Unrealized gains and losses are recorded directly in
stockholder's equity as other comprehensive income. The cost of securities sold
is based on the specific identification method. Realized gains or losses and
any other-than-temporary declines in value are reported in other income and
expense. For Russian investments that do not meet its liquidity requirements,
the Company continues to classify these securities as long-term investments and
carry such investments at cost with adjustments made for other-than-temporary
impairment. Of the Company's Russian investment portfolio, approximately $24.9
million and $18.8 million is carried at quoted market prices at March 31, 2002
and December 31, 2001, respectively.

  Concentration of Risk

   The Company's operations are generally concentrated in Russia. The Company
performs ongoing evaluations of its subsidiaries and investments and endeavors
to mitigate its exposure in foreign countries. The Company does not maintain
political risk insurance for any of its businesses.

                                      7

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                March 31, 2002


  Recent Accounting Pronouncements

   The Company adopted SFAS No. 142, "Goodwill and Other Intangible Assets"
effective January 1, 2002. SFAS No. 142 requires that goodwill not be amortized
but rather be tested for impairment at least annually at the reporting unit
level. For the three months ended March 31, 2001, the Company recorded
approximately $72,000 of amortization. The Company no longer amortizes
goodwill. There was no transitional adjustment resulting from the intangible
asset impairment test.

   The Company adopted SFAS No. 144, "Accounting for the Impairment or Disposal
of Long-Lived Assets," effective January 1, 2002. The impact of the adoption
was not material to the financial statements of the Company.

(3)  EARNINGS (LOSS) PER SHARE

   Basic and diluted earnings (loss) per share ("EPS") are computed by dividing
reported earnings by weighted average shares outstanding not including
contingently issuable shares. There are currently no potentially dilutive
securities.

(4)  NOTE RECEIVABLE

   As part of the Spin-off, Harbor Global succeeded to Pioneer's rights and
obligations relative to Pioneer's earlier sale of its gold mining operations in
Ghana to Ashanti Goldfields Teberebie Limited ("Ashanti"). In connection with
the sale to Ashanti, each of Pioglobal Goldfields II and Pioneer agreed to
indemnify Ashanti for the breach of any representation or warranty of Pioglobal
Goldfields II contained in the purchase agreement for an amount not to exceed
the total purchase price actually paid by Ashanti to Pioglobal Goldfields II
under the purchase agreement. The representations and warranties contained in
the purchase agreement, other than those relating to tax and environmental
issues, survive until June 19, 2002. The tax and environmental representations
and warranties survive until June 19, 2005. Under the Distribution Agreement,
Harbor Global has agreed to reimburse Pioneer for any liability it incurs in
connection with any claim brought by Ashanti for indemnification under the
purchase agreement.

   In this connection, Pioneer contributed to the Company all proceeds from the
sale of its gold mining operation, including $5.0 million in cash, a $13.8
million non-interest bearing promissory note and the right to receive payments
of up to $5.0 million, contingent upon prevailing gold prices and productivity.
However, Harbor Global agreed that promptly after the fifth anniversary of the
closing of the purchase agreement with Ashanti, it would return to Pioneer the
lesser of $5.0 million or the proceeds received by Pioglobal Goldfields II from
Ashanti under the purchase agreement less any indemnification claims paid under
the purchase agreement. The foregoing liability is currently recorded as a $5.0
million note payable insomuch as management believes that this is the most
likely settlement amount as of the balance sheet date. Additionally, $5.0
million has been set aside to satisfy this liability and is classified as long
term restricted cash and investments. The terms of the promissory note obligate
Ashanti to pay the face value over five years, with principal amounts of
between $2.5 million and $3.75 million due annually.

   As of March 31, 2002, the Company had received $5.0 million from Ashanti.
For the three months ended March 31, 2002 and 2001, the Company recognized
interest income of approximately $282,000 and $324,000, respectively.

                                      8

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                March 31, 2002


(5)  COMPREHENSIVE INCOME (LOSS)

   For the three months ended March 31, 2002 and 2001, the Company reported
changes in stockholders' equity and other comprehensive income as follows:

<TABLE>
<CAPTION>
                                                                                   2002    2001
                                                                                  ------  -----
                                                                                  (In Thousands)
<S>                                                                               <C>     <C>
Net Income (Loss)................................................................ $1,005  ($709)
Net Unrealized Gains on Long term Marketable Securities (Net of deferred taxes of
  $1,044,000 and minority interest of $1,914,000 for the three months ended
  March 31, 2002)................................................................  2,028     --
                                                                                  ------  -----
Total Comprehensive Income (Loss)................................................ $3,033  ($709)
                                                                                  ======  =====
</TABLE>

(6)  RELATED PARTY TRANSACTIONS

   The Company entered into an administration and liquidation agreement with
Calypso Management, under which Calypso Management LLC ("The Manager") manages
the liquidation of the Company and operates the Company's assets as going
concern businesses until they are liquidated. The principal executive officers
of the Company also serve as the principal executive officers of the Manager.
The Manager is owned and operated by the Company's President and Chief
Executive Officer as well as the Company's Chief Operating Officer and Chief
Financial Officer.

   Under the administration and liquidation agreement, the Company pays
expenses of the Manager incurred in connection with its provision of services
and a percentage of the net proceeds realized from the liquidation of its
assets that are ultimately distributed to the Company's shareholders, generally
according to the following schedule:

    .  with respect to the first $36 million in net proceeds available for
       distribution, Calypso Management shall receive a payment equal to 10% of
       such net proceeds;

    .  with respect to the next $72 million in net proceeds available for
       distribution, Calypso Management shall receive a payment equal to 7.5%
       of such net proceeds; and

    .  with respect to any additional net proceeds, Calypso Management shall
       receive a payment equal to 10% of such net proceeds.

   Net proceeds do not include any unexpended portion of the $19.1 million
contributed by Pioneer to Harbor Global at the time of the Spin-Off. However,
pursuant to Amendment 2 dated as of February 1, 2001 to the administration and
liquidation agreement, the Manager is now entitled to share in distributions of
$5.4 million of the unexpended cash contributed by Pioneer. In addition, the
proceeds received by Pioneer Goldfields II in connection with the sale of its
Ghanaian gold mine to Ashanti are not subject to the preceding schedule.
Instead, Calypso Management will receive only 5% of the Ashanti proceeds that
are distributed, if any. Any portion of the net proceeds from the liquidation
of Harbor Global assets prior to the second anniversary of distribution date to
which Calypso Management is entitled will be aggregated and paid to Calypso
Management on the second anniversary of the distribution date. Harbor Global
accrues such management fees at the earlier of (1) the formal declaration by
the Board of Directors of a distribution and (2) the time when a distributable
amount is estimable following the sale or liquidation of an asset.

                                      9

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                March 31, 2002


   For the three months ended March 31, 2002 and 2001, the Company incurred
management fee expenses of approximately $730,000 and $673,000, respectively
related to the reimbursement of expenses. Of this management fee, approximately
$185,000 and $100,000 was outstanding at March 31, 2002 and 2001, respectively.

   In addition, as of March 31, 2002, the Company has outstanding $1,450,000 as
an accrued expense to reflect the amount owed to Calypso Management and payable
on October 24, 2002 in connection with the distribution paid to shareholders on
November 15, 2001.

(7)  COMMITMENTS

   On October 16, 1996, Pioglobal Omega L.L.C. ("Pioglobal Omega"), a
wholly-owned subsidiary of the Company, and the International Finance
Corporation ("IFC"), an unrelated party, entered into a put and call agreement
with respect to the IFC's shares of the stock of Pioneer First Russia, Inc.
("Pioneer First Russia"), a majority-owned subsidiary of the Company. Under
this agreement, from October 2000 to October 2004, upon written notice to
Pioglobal Omega, the IFC will have the right to cause Pioglobal Omega to
purchase all of the IFC's shares of Pioneer First Russia common stock. From
October 2004 to October 2006, upon written notice to the IFC, Pioglobal Omega
will have the right to buy all of the IFC's shares of Pioneer First Russia
common stock.

   Under the administration and liquidation agreement, Harbor Global is
obligated to pay a $1,800,000 signing and retention bonus to Stephen G. Kasnet,
President and Chief Executive Officer of Harbor Global, subject to certain
conditions, on October 24, 2002.

(8)  DISCONTINUED OPERATIONS

   On February 5, 2002, the Company's Board of Directors approved the
disposition of the Russian timber operations based on a review of proposed sale
offers. On April 23, 2002, Harbor Global announced that its wholly owned
subsidiary, Pioneer Forest, Inc. entered into a definitive agreement for the
sale of its Russian timber business. Pioneer Forest agreed to sell its entire
interest in Pioglobal Forest, L.L.C., the sole shareholder of Forest-Starma, to
a British Virgin Islands company for an aggregate purchase price of $7,550,000
million. The Company expects the transaction to close during the second quarter
of 2002.

   Based on a final estimate of the cost of disposition, the Company recorded a
credit of $450,000 in the first quarter of 2002. The Company previously
estimated the loss on disposal of the Russian timber segment to be
approximately $8,300,000.

   Accordingly, the operating results of the discontinued Russian timber
operations segment have been segregated from the results of continuing
operations and are reported separately on the consolidated statement of
operations for all periods presented. The assets and liabilities from the
Russian timber operations segment are aggregated and reported separately on the
consolidated balance sheet for all periods presented as net assets from
discontinued operations. The remaining assets as of March 31, 2002 consist
principally of cash, trade receivables, timber inventory, timber equipment,
buildings and a self-constructed port facility.

                                      10

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                March 31, 2002


   The following is a summary of the results of the discontinued operations of
the Russian timber segment for the three months ended March 31, 2002 and 2001,
respectively:

<TABLE>
<CAPTION>
                                                           Three MonthsEnded March 31,
                                                           --------------------------
                                                            2002          2001
                                                              -----         -----
                                                           (Dollars In Thousands)
        <S>                                                <C>           <C>
        Revenues from Timber Sales........................ $ 415         $ 365
                                                              -----         -----
        Net Loss from Operations..........................  (506)         (333)
        Previously Accrued Estimate of Operating Losses...   506            --
        Change in Estimated Loss on Disposal of Russian
        Timber Operations.................................   450            --
                                                              -----         -----
        Net Income (Loss) from Discontinued Russian Timber
        Operations........................................ $ 450         $(333)
                                                              =====         =====
</TABLE>

(9)  FINANCIAL INFORMATION BY BUSINESS SEGMENT

   In accordance with SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information", the Company presents its segment
information for continuing operations using the management approach. The
management approach is based on the way that management organizes the segments
within a company for making operating decisions and assessing performance. The
Company's operating segments are organized around services and products
provided, as well as geographic regions.

   The Company derives its revenues from the following products and services by
segment:

    .  Russian Real Estate Management and Investment Management Operations:
       investment and management services

    .  Real Estate Management Operations: real estate management services
       including property management and advisory services

    .  Other: management services

                                      11

<PAGE>

                          HARBOR GLOBAL COMPANY LTD.

            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(Continued)

                                March 31, 2002


                              Segment Disclosures

<TABLE>
<CAPTION>
                                                                Russian
                                                              Real Estate
                                                              Management
                                                                  And
                                                              Investment  Real Estate
                                                              Management  Management
                                                              Operations  Operations   Other     Total
-                                                             ----------- ----------- -------  --------
<S>                                                           <C>         <C>         <C>      <C>
As of and for the three months ended March 31, 2002
Net Revenues and Sales.......................................   $ 2,326      $ 195    $   429  $  2,950
Income (Loss) from Continuing Operations before Provision for
  Income Taxes and Minority Interest.........................     2,890       (275)       476     3,091
Provision for Income Taxes...................................    (1,261)        --         --    (1,261)
Minority Interest (Expense) Income...........................    (1,247)        --         --    (1,247)
Equity Loss on Venture Capital Investment....................        --         --        (28)      (28)
                                                                -------      -----    -------  --------
Net Income (Loss) from Continuing Operations.................   $   382      $(275)   $   447  $    555
                                                                =======      =====    =======  ========
Depreciation.................................................   $   189      $   7    $    --  $    196
                                                                =======      =====    =======  ========
Total Assets.................................................   $76,531      $ 490    $33,531  $110,552
                                                                =======      =====    =======  ========
</TABLE>

<TABLE>
<CAPTION>
                                                              Russian Real
                                                                 Estate
                                                               Management
                                                                  And
                                                               Investment  Real Estate
                                                               Management  Management
                                                               Operations  Operations   Other     Total
-                                                             ------------ ----------- -------  --------
<S>                                                           <C>          <C>         <C>      <C>
As of and for the three months ended March 31, 2001
Net Revenues and Sales.......................................   $ 2,022       $ 390    $   715  $  3,127
Income (Loss) from Continuing Operations before Provision for
  Income Taxes and Minority Interest.........................       275        (390)    (2,911)   (3,026)
Provision for Income Taxes...................................        25          --         (4)       21
Minority Interest (Expense) Income...........................      (274)         --      2,903     2,629
                                                                -------       -----    -------  --------
Net (Loss) Income from Continuing Operations.................   $    26       $(390)   $   (12) $   (376)
                                                                =======       =====    =======  ========
Depreciation and Amortization................................   $   247       $  19    $     3  $    269
                                                                =======       =====    =======  ========
Total Assets.................................................   $55,335       $ 836    $81,683  $137,854
                                                                =======       =====    =======  ========
</TABLE>

                                      12

<PAGE>

                                  SIGNATURES

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

Dated: June 3, 2002

                                          HARBOR GLOBAL COMPANY LTD.

                                                  /S/  DONALD H. HUNTER
                                           ------------------------------------
                                                    Donald H. Hunter
                                                 Chief Operating Officer
                                                 Chief Financial Officer
                                              (Duly authorized officer and
                                                    principal financial
                                                 and accounting officer)

                                      13