SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
(Mark One)

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

                For the quarterly period ended September 30, 1997

                                       OR

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

               For the transition period from _________to_________


                           Commission File No. 1-12412
                                               -------


                              ARBOR PROPERTY TRUST
             ------------------------------------------------------
             (Exact name of Registrant as specified in its Charter)


              Delaware                                      23-2740383
   -------------------------------                      -------------------
   (State or other jurisdiction of                       (I.R.S. Employer
    incorporation or organization)                      Identification No.)


             Suite 800, One Tower Bridge, W. Conshohocken, PA    19428
             ------------------------------------------------------------
               (Address of principal executive offices)        (Zip code)


                                 (610) 941-9511
              ----------------------------------------------------
              (Registrant's telephone number, including area code)


            --------------------------------------------------------
            (Former name of registrant if changed since last report)


Indicate by checkmark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
                                  Yes X     No
                                     ---      ---


APPLICABLE TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING
FIVE YEARS:

Indicate by checkmark whether the Registrant has filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act
of 1934 subsequent to the distribution of securities under a plan confirmed by a
court. 

                            Yes _______ No _______


                      APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the last practicable date: 12,297,705 shares as of November
12, 1997.


<PAGE>


                              ARBOR PROPERTY TRUST


                          QUARTERLY REPORT ON FORM 10-Q
                      FOR QUARTER ENDED SEPTEMBER 30, 1997


                                      INDEX


                                                                            Page
                                                                            ----

PART I - FINANCIAL INFORMATION

Item 1.  Condensed Consolidated Balance Sheets as of September 30, 1997
         and December 31, 1996                                                 3

         Condensed Consolidated Statements of Operations for the three and
         nine month periods ended September 30, 1997 and September 30, 1996    4

         Condensed Consolidated Statements of Cash Flows for the nine
         month periods ended September 30, 1997 and September 30, 1996         5

         Notes to Condensed Consolidated Financial Statements                  6

Item 2.  Management's Discussion and Analysis of Financial Condition
         and Results of Operations                                             9


PART II - OTHER INFORMATION

Items 1 through 6.                                                            12

SIGNATURES                                                                    13

EXHIBITS


                                       2

<PAGE>


                              ARBOR PROPERTY TRUST
                         CONDENSED CONSOLIDATED BALANCE SHEETS
                           (in thousands, except share data)

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------

                                                                    September 30, 1997        December 31, 1996
                                                                        (Unaudited)
---------------------------------------------------------------------------------------------------------------
<S>                                                                       <C>                       <C>
                         ASSETS
Investments in Green Acres Mall, at cost:
Land                                                                    $ 30,295                   $ 30,295
Buildings and improvements                                               140,468                    140,448
Capitalized lease                                                          7,125                      7,125
Personal property                                                          1,237                      1,177
---------------------------------------------------------------------------------------------------------------
                                                                         179,125                    179,045
Less accumulated depreciation                                             38,302                     35,159
---------------------------------------------------------------------------------------------------------------
                                                                         140,823                    143,886
Cash and cash equivalents                                                  1,292
Tenant security deposits & escrowed cash                                     764                        599
Accounts receivable (net of allowances for
  doubtful accounts of $912 and $527 respectively)                         6,026                      8,970
Other assets (net of accumulated amortization of
  $5,746 and $4,778 respectively)                                          2,544                      3,902
---------------------------------------------------------------------------------------------------------------

TOTAL ASSETS                                                            $151,449                   $157,357
===============================================================================================================

                             LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
  Collateralized floating rate notes
    (net of unamortized discount of $21 and $39 respectively)           $117,979                   $117,961
  Distributions payable                                                    2,152                      2,149
  Obligation under capital lease                                           7,014                      7,017
  Note payable to bank                                                     6,900                      5,950
  Accounts payable and other liabilities                                   3,103                      6,156
  Due to affiliates                                                            0                         33
---------------------------------------------------------------------------------------------------------------
                                                                         137,148                    139,266
---------------------------------------------------------------------------------------------------------------
  Commitments and Contingencies:
  Shareholders' Equity:
  Shares of beneficiai interest, without par value:
    Authorized: 5,000,000 preferred shares,
    45,000,000 common shares, and 50,000,000
    excess shares; Issued and outstanding: 12,297,705
    and 12,280,739 common shares respectively                            118,244                    118,121
  Distributions in excess of accumulated earnings                       (103,943)                  (100,030)
---------------------------------------------------------------------------------------------------------------
                                                                          14,301                     18,091
---------------------------------------------------------------------------------------------------------------

 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                             $151,449                   $157,357
===============================================================================================================
</TABLE>

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


                                        3

<PAGE>


                              ARBOR PROPERTY TRUST
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
                 (in thousands,except shares and per share data)

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------
                                            Three months ended September 30  Nine months ended September 30

                                                  1997          1996             1997             1996
------------------------------------------------------------------------------------------------------------
<S>                                             <C>           <C>              <C>              <C>
REVENUES:

  Revenues from rental operations                $4,715        $4,892          $14,878          $14,880
  Operating expense reimbursements                4,448         3,944           12,067           11,044
  Other income, including interest income
  of  $14 and $1 for the three and $76
  and $23 for the nine month periods
  ended September 30, 1997 and 1996                 459           469            1,505            1,097
                                               -------------------------------------------------------------
Total Revenues                                    9,622         9,305           28,450           27,021
                                               -------------------------------------------------------------

OPERATING EXPENSES:

  Real Estate Taxes                              $2,308        $2,247          $ 6,801          $ 8,518

  Utilities                                         546           532            1,282            1,227

  Maintenance and operating expenses              
    (including fees to affiliates of $98
    for the three month, and $285 for the
    nine month periods ending
    September 30, 1996)                           1,563         1,544            4,179            4,883

  Provision for doubtful accounts
    (including provisions for accrued
    straight-line rents of $111 and $271
    for the three month and nine month 
    periods ending September 30, 1997)              948            88            1,267              285

  Depreciation and amortization                   1,080         1,077            3,226            3,304
                                               -------------------------------------------------------------

  Total Operating Expenses                        6,445         5,488           16,755           16,197
============================================================================================================
Income from rental operations                     3,177         3,817           11,695           10,824
============================================================================================================

  Interest expense
    (includes amortization of 
    refinancing costs)                            2,560         2,648            7,704            8,034

Other expenses                                      479           460            1,451            1,400
------------------------------------------------------------------------------------------------------------
Net income                                       $  138        $  709          $ 2,540          $ 1,390
============================================================================================================
Net income per weighted average share:            $0.01         $0.06            $0.21            $0.11
------------------------------------------------------------------------------------------------------------

Weighted average number of shares
 outstanding                                 12,295,227    12,176,460       12,289,644       12,170,520
============================================================================================================
</TABLE>


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


                                       4

<PAGE>


                              ARBOR PROPERTY TRUST
                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)
                                 (in thousands)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------
                                                                                 Nine months ended September 30
                                                                                      1997              1996
----------------------------------------------------------------------------------------------------------------
<S>                                                                                 <C>                <C> 
Cash flows from operating activities:
  Net income                                                                         $2,540             $1,390
  Adjustments to reconcile net income to net
    cash provided by operating activities:

      Provision for doubtful accounts                                                 1,267                265
      Depreciation and amortization                                                   3,226              3,304
      Amortization of deferred financing costs                                          884                902
      Amortization of collateralized floating rate note discount                         18                 18
      Changes in assets and liabilities:
         Increase in accrued rent receivable                                            (61)              (301)
         Decrease in accounts receivable, tenant
           security deposits and escrowed cash and other assets                       1,928              1,474
         Decrease in accounts payable and
           other liabilities and due to affiliates                                   (3,053)              (171)
----------------------------------------------------------------------------------------------------------------
  Net cash provided by operating activities                                           6,749              6,881
----------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
  Additions to buildings and improvements
  and personal property                                                                 (80)              (166)
----------------------------------------------------------------------------------------------------------------
  Net cash used in investing activities                                                 (80)              (166)
----------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
  Distributions paid                                                                 (6,450)            (6,388)
  Proceeds from dividend reinvestment                                                   123                 73
  Borrowings under bank line of credit                                                1,850                160
  Repayment of bank line of credit                                                     (900)              (560)
----------------------------------------------------------------------------------------------------------------
  Net cash used in financing activities                                              (5,377)            (6,715)
----------------------------------------------------------------------------------------------------------------
Increase in cash and cash equivalents                                                 1,292                  0
Cash and cash equivalents, beginning of year                                              0                  0
----------------------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of year                                               $1,292            $     0
================================================================================================================

Supplemental disclosure of cash flow information:

  Interest Paid                                                                      $6,678            $ 6,588
                                                                                ===========         ==========
</TABLE>

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


                                        5


<PAGE>


                              ARBOR PROPERTY TRUST

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)


Note 1: Description of Business and Basis of Presentation

         Arbor Property Trust (the "Trust") formed on September 8, 1993 as a
Delaware business trust, has an indefinite life and has elected real estate
investment trust ("REIT") status under the Internal Revenue Code of 1986, as
amended, with the filing of its Federal Income Tax Return for the year ended
December 31, 1994. On February 28, 1994, EQK Green Acres L.P. ("the
Partnership") merged into Green Acres Mall Corp., a wholly owned subsidiary of
the Trust (the "Merger"). Prior to February 28, 1994, the Trust did not have
significant operations. On April 17, 1996, the Trust formed APT, Inc., a
Delaware Corporation and a wholly-owned subsidiary of the Trust ("APTI"). In
addition, on April 17, 1996, APTI and the Trust formed Arbor Property, L.P.
("APLP"), a Delaware limited partnership of which APTI is the general partner
and the Trust is the limited partner, and APTI and APLP in turn formed Green
Acres Mall L.L.C. ("GAMLLC"), a Delaware limited liability company of which APTI
and APLP are the only members. On April 30, 1996 the Trust caused the merger of
Green Acres Mall Corp. with and into GAMLLC, which is the surviving entity of
such merger. The Trust and the Partnership are interchangeably referred to
herein as the "Company".

         The condensed consolidated financial statements have been prepared by
the Company, without audit, pursuant to the rules and regulations of the United
States Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that the
disclosures are adequate to make the information presented not misleading. The
condensed consolidated financial statements should be read in conjunction with
the audited consolidated financial statements and related notes thereto included
in the Company's Annual Report on Form 10-K and Form 10-K/A for the year ended
December 31, 1996.

         The condensed consolidated financial statements include the accounts of
the Trust and GAMLLC, which is indirectly wholly owned by the Company, and all
other subsidiary entities of the Company. All significant intercompany
transactions and balances have been eliminated.

         In the opinion of the Company all adjustments, which include only
normal recurring adjustments necessary to present fairly its consolidated
financial position as of September 30, 1997, its condensed consolidated results
of operations for the three and nine month periods ended September 30, 1997 and
1996 and its condensed consolidated cash flows for the nine month periods ended
September 30, 1997 and 1996 have been included in the accompanying unaudited
condensed consolidated financial statements.


                                       6

<PAGE>


Note 2: Management Agreements

         The Company had entered into a property management agreement with
Compass Retail, Inc. ("Compass"), a subsidiary of Equitable Real Estate,
effective January 1, 1991. Pursuant to this agreement, property management fees
were based on 4% of net rental and service income collected from tenants.
Compensation to Compass was reduced on March 1, 1994 from 4% to 2% of net rental
and service income collected from tenants. Effective December 31, 1996, the
agreement with Compass was terminated. For the nine month period ended September
30, 1996, management fees earned by Compass were $285,000. The amount of such
fees for the three months ended September 30, 1996 were $98,000.

Note 3: Distributions

         On August 15, 1997, the Trust made a distribution of $.175 per Common
Share (an aggregate of $2,150,000) to its Shareholders. In the third quarter,
distributions totaling approximately $41,000 were reinvested pursuant to the
Company's Dividend Reinvestment Plan and 6,450 Common Shares were issued under
this Plan. In addition, a distribution in the amount of $.175 per Common Share
has been declared for payment on November 15, 1997 to shareholders of record on
September 30, 1997.

Note 4: Debt Financing

         The Company's floating rate notes are due August 19, 1998 and are
collateralized by a first mortgage on substantially all of the real property
comprising Green Acres Mall and a first leasehold mortgage on the Plaza. The
floating rate notes bear interest at a rate equal to 78 basis points in excess
of the three-month LIBOR (London Interbank Offered Rate), payable on a quarterly
basis from November 12, 1993 to maturity. The interest rate is subject to reset
two days in advance of such interest payment dates. In connection with the
refinancing of the mortgages in August 1993, the Company acquired an interest
rate cap whereby a counter party agreed to be responsible for any interest
payable in excess of 9% per annum, thereby limiting the Company's maximum
effective annual rate to 9% per annum through maturity. In May 1995, to further
reduce the risk of rate increases, the Company entered into a swap transaction
with Goldman Sachs Capital Markets, L.P. which fixed the interest rate on the
floating rate notes for the period of August 12, 1995 through August 12, 1996 at
6.87%. The Company would nevertheless be exposed to higher rates in the unlikely
event of non-performance by the counter parties to the interest rate cap and
swap. The interest rates at September 30, 1997 and 1996 were 6.50% and 6.32%
respectively. The weighted average interest rate for the nine month periods
ended September 30, 1997 and 1996 was 6.44% and 6.77% respectively.

         The mortgage and indenture agreement relating to the floating rate
notes limit additional indebtedness that may be incurred by GAMLLC. Those
agreements also contain certain other covenants which, among other matters,
effectively subordinate distributions from GAMLLC to debt service requirements
of the floating rate notes. Management believes it is in compliance with all
covenants under the indenture and line of credit agreements, discussed below, at
September 30,1997.


                                       7

<PAGE>


         On August 19, 1993, the Company also obtained an unsecured revolving
credit facility in the amount of $3,400,000 with interest at 1% over the
lender's prime rate. The amount available under this facility was increased to
$5,900,000 in August 1994, and to $6,900,000 in April 1995. The loan has an
optional LIBOR plus 2.5% option and a maturity date of August 18, 1998, subject
to the lender's right to call the loan on 60 days notice commencing December 18,
1997. An additional $600,000 of funding availability was provided for capital
expenditures. The facility also contains certain covenants which, among other
matters, limit the amount of the Company's annual dividend to an amount that
does not exceed operating cash flow (as defined), and requires the Company to
maintain a quarterly debt service coverage ratio (as defined).

Note 5: Impact of Pronouncements Not Yet Adopted by the Company

         During the first quarter of 1997, the FASB issued Statement of
Financial Accounting Standard (SFAS) No. 128 "Earnings per Share." This Standard
establishes new accounting and disclosure for earnings per share (EPS). The
Standard will be effective for the year ending December 31, 1997 with earlier
application not permitted. The EPS as currently reported is the same as Basic
EPS required by the Standard. The Company's diluted EPS pursuant to the new
Standard is not expected to be materially different from Basic EPS.

Note 6: Merger Transaction with Vornado Realty Trust

         On August 22, 1997, the Company entered into an Agreement and Plan of
Merger (the "Merger Agreement") with Vornado Realty Trust ("Vornado") and Trees
Acquisition Subsidiary, Inc., a wholly-owned subsidiary of Vornado ("Merger
Sub"), pursuant to which the Company is to be merged with and into Merger Sub.
Pursuant to the Merger Agreement, holders of common shares of beneficial
interest of the Company are to receive for each common share either 0.243810
common shares of beneficial interest of Vornado (reflecting a recent share split
of Vornado's common shares) or, at their election, 0.153846 shares of Series A
Convertible Preferred Shares of Vornado. The merger, which is subject to the
approval of the holders of common shares of the Company, and certain other
conditions, is expected to be completed in December 1997, although there is no
assurance that the merger will be completed.


                                       8

<PAGE>


                              ARBOR PROPERTY TRUST

          MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
                              RESULTS OF OPERATIONS

                               FINANCIAL CONDITION

Cash flows from Operating, Investing and Financing Activities

         Cash flows from operating activities for the nine month periods ended
September 30, 1997 and 1996 were $6,749,000 and $6,881,000, respectively. Net
income increased $1,150,000, from $1,390,000 to $2,540,000. Cash flows provided
by operating activities were in-line with the prior period. The increased
operating cash flow as a result of the increase in net income in the nine months
ended September 30, 1997 was utilized to reduce the level of payables and other
liabilities during the period.

         Investing Activities (i.e. capital expenditures) for the periods were
modest, $80,000 in 1997 compared to $166,000 for the comparable prior year
period.

         Cash flows devoted to financing activities were $5,377,000 for the 1997
period and $6,715,000 for the 1996 period. Dividend distributions paid by the
Company increased by $62,000, as a result of increased outstanding shares due to
reinvested distributions by Shareholders ($123,000 this year versus $73,000 in
1996). During the first nine months of 1997, the Company increased its net
borrowings by $950,000, compared to a $400,000 net reduction of such borrowings
for the same period in 1996.

                              RESULTS OF OPERATIONS

Comparison of the Nine Month and Three Month periods ended September 30, 1997
and 1996

         For the nine month period ended September 30, 1997, the Company
reported net income of $2,540,000 or $.21 per weighted average Common Share,
compared with a net income of $1,390,000 or $.11 per weighted average Common
Share for the comparable period in 1996. For the three month period ended
September 30, 1997, the Company reported net income of $138,000 or $.01 per
weighted average share, compared to net income of $709,000 or $.06 per weighted
average share, for the third quarter of 1996.

         Income from rental operations for the three and nine month periods
ended September 30, 1997 were $3,177,000 and $11,695,000, a decrease of $640,000
for the three month period, notwithstanding an increase of $871,000 for the nine
month period.


                                       9

<PAGE>


         The $1,150,000 increase in net income for the nine month period ended
September 30, 1997 is the result of a $1,429,000 increase in revenues net of a
$558,000 increase in operating expenses and a $330,000 decrease in interest
expense during the period. The increase in revenues is primarily the result of a
$580,000 adjustment in 1996 to reduce utility reimbursement revenue and the
reduction of certain reserves established in prior years. The increase in
operating expenses resulted from a $1,000,000 increase in the provision for
doubtful accounts to account for certain tenant exposures and a $283,000
increase in real estate tax expense, net of a reduction in maintenance and
operating expenses primarily the result of a reduction in management fees to
affiliates due to the termination of the management agreement. Interest expense
decreased as a result of the decrease in the interest rate on the floating rate
notes during the period.

         Net income for the three month period ended September 30, 1997
decreased by $571,000 from the prior period primarily as a result of $860,000
increase in the provision for doubtful accounts offset by an increase in revenue
of approximately $300,000. The increase in revenue resulted from increased
operating expense reimbursements net of a $177,000 decrease in rent revenue
which declined as a result of a change in estimate of percentage rent for 1997.

Funds from Operations

         The National Association of Real Investment Trusts defines "Funds from
Operations" as net income before depreciation, amortization, gains or losses on
sales of assets and significant non-recurring charges, and that definition is
used by the Company. The Company considers Funds from Operations a supplemental
measure of operating performance and along with net cash flow from operating
activities, financing activities and investing activities, it provides investors
with an indication of the ability of the Company to incur and service debt, to
make capital expenditures and to fund other cash needs. Funds from Operations,
however, does not equate with net income or cash flows from operating activities
as defined by generally accepted accounting principles and is not necessarily
indicative of cash available to fund all cash flow needs. Furthermore, Funds
from Operations should not be considered as an alternative to net operating
income as an indicator of the Company's operating performance or to cash flows
from operating activities as a measure of liquidity. Funds from Operations, as
presented herein, may not be comparable to similarly titled measures utilized by
other REITs.

         The following table sets forth the Company's Funds from Operations and
net cash provided by operating activities, net cash used in investing activities
and net cash used in financing activities for the nine month periods indicated:

                                                     Nine Month period
                                                     ended September 30,
                                             ----------------------------------
                                                 1997                   1996
                                             -----------            -----------
Net Income                                   $ 2,540,000            $ 1,390,000
Depreciation and Amortization                  3,226,000              3,304,000
                                             -----------            -----------
Funds from Operations                        $ 5,766,000            $ 4,694,000
                                             ===========            ===========
Net Cash Provided by Operating Activities    $ 6,749,000            $ 6,881,000
                                             ===========            ===========
Net Cash Used in Investing Activities        $   (80,000)           $  (166,000)
                                             ===========            ===========
Net Cash Used in Financing Activities        $(5,377,000)           $(6,715,000)
                                             ===========            ===========


                                       10

<PAGE>


         Because the change in Funds from Operations is primarily attributable
to the change in Net Income, see the above discussion of the comparison of
Results of Operations for the nine month and three month periods ended September
30, 1997 and 1996 for the reasons for the change.

         The Company's cash position fluctuates considerably during the course
of the year, particularly as a consequence of the periodic expenditures for
quarterly real estate taxes, quarterly interest payments and quarterly
dividends, all of which occur during the months of February, May, August, and
November. To accommodate peak cash requirements, the Company has a $6,900,000
revolving credit facility which is fully borrowed to meet peak needs.


                                       11

<PAGE>


                              ARBOR PROPERTY TRUST

                           PART II - OTHER INFORMATION

Item 1. Legal Proceedings.
                  None

Item 2. Changes in Securities.
                  None.

Item 3. Defaults upon Senior Securities.
                  None.

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

Item 5. Other Information.
                  None.

Item 6. Exhibits and Reports on Form 8-K

                  (a)      Exhibits:

                           Exhibit 27 - Financial Data Schedule

                  (b)      Reports on Form 8-K:

                                    A Report on Form 8-K dated August 22, 1997
                                    was filed regarding the execution of the
                                    Agreement and Plan of Merger among the
                                    Company, Vornado Realty Trust ("Vornado")
                                    and Trees Acquisition Subsidiary, Inc., a
                                    wholly-owned subsidiary of Vornado
                                    ("Trees"), pursuant to which the Company
                                    will merge with and into Trees upon the
                                    receipt of shareholder approval and the
                                    satisfaction of other conditions.


                                       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.



Date: November 13, 1997


                                ARBOR PROPERTY TRUST



                                By: /s/ Myles H. Tanenbaum
                                    -------------------------------------------
                                    Myles H. Tanenbaum
                                    President and Treasurer
                                    (Principal Executive and Financial Officer)


                                       13

<PAGE>