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

                                   FORM 10-QSB


(Mark One)

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

                             For the quarterly period ended  September 30, 2006
                                                             ------------------


[ ]     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

                           For the transition period from _________ to _________

                                                Commission file number 000-50675
                                                                       ---------

                    EXCELLENCY INVESTMENT REALTY TRUST, INC.
--------------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter

             Maryland                                    73-0731559
--------------------------------------------------------------------------------
(State or other jurisdiction of                (IRS Employer Identification No.)
 incorporation or organization)

        270 Laurel Street, 1st Floor Office, Hartford, Connecticut 06105
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (860) 246-7672
--------------------------------------------------------------------------------
                           (Issuer's telephone number)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 [ ]

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act).                                 Yes [ ]  No [X]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of November 20, 2006, the issuer
had 43,618,537 shares of common stock issued and outstanding.

Transitional Small Business Disclosure Format (Check one):       Yes [ ]  No [X]


<PAGE>


                    EXCELLENCY INVESTMENT REALTY TRUST, INC.
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
                         QUARTERLY REPORT ON FORM 10-QSB
                FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2006
<TABLE>
<CAPTION>
                                      INDEX
                                      -----

                                                                                                    Page No.
                                                                                                    --------
<S>                                                                                                      <C>
PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements ........................................................................   3

         Condensed Consolidated Balance Sheet as of September 30, 2006 (Unaudited) ...................   3

         Condensed Consolidated Statements of Operations and Accumulated Deficit for
              the Three and Nine Months ended September 30, 2006 and 2005 (Unaudited) ................   4

         Condensed Consolidated Statements of Cash Flows for the Nine Months ended
              June 30, 2006 and 2005 (Unaudited) .....................................................   5

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

Item 2.  Management's Discussion and Analysis or Plan of Operation ...................................  23

Item 3.  Controls and Procedures .....................................................................  32


PART II - OTHER INFORMATION

Item 1.  Legal Proceedings ...........................................................................  34

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds .................................  34

Item 3.  Defaults Upon Senior Securities .............................................................  35

Item 4.  Submission of Matters to a Vote of Security Holders .........................................  35

Item 5.  Other Information ...........................................................................  36

Item 6.  Exhibits ....................................................................................  38


SIGNATURES ...........................................................................................  39
</TABLE>

<PAGE>

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
                      CONDENSED CONSOLIDATED BALANCE SHEET
                               SEPTEMBER 30, 2006
                                   (UNAUDITED)
<TABLE>
<S>                                                                                             <C>
                                                       ASSETS
Real Estate:
Land                                                                                            $    811,402
Buildings and Improvements                                                                         5,161,310
                                                                                                ------------
                                                                                                   5,972,712
Less:  accumulated depreciation and amortization                                                   1,100,832
                                                                                                ------------
                                                                                                   4,871,880

Cash and cash equivalents                                                                          1,640,992
Accounts receivable-tenants, net of allowance for doubtful accounts of $56,217                        14,047
Deferred financing costs, net of accumulated amortization of $10,734                                 166,787
Escrow account                                                                                        40,227
Investments in trading securities                                                                    137,045
Other assets                                                                                           6,765
                                                                                                ------------
                                                                                                $  6,877,743
                                                                                                ============
                                        LIABILITIES AND STOCKHOLDERS' DEFICIT
Liabilities:
Mortgage notes payable                                                                          $  8,152,499
Promissory notes payable-related party                                                             2,610,006
Security deposits                                                                                     93,707
Accounts payable and accrued expenses                                                                372,784
Due to officer/director                                                                              132,900
Derivatives at fair value                                                                            864,000
                                                                                                ------------
                                                                                                  12,225,896
                                                                                                ------------
Commitments and contingencies

Stockholders' Deficit:

Series A Convertible Preferred Stock, par value $0.01, 11,000 shares authorized, 11,000
     issued and outstanding.  Aggregate liquidation preference of $10,010 ($0.91 per share)              110
Series B Preferred Stock, par value $0.01, 20,000
     shares authorized, 0 shares issued and outstanding                                                    -
Series C Convertible Preferred Stock, par value $0.01,
     to be issued (43,500 shares)                                                                    540,000
Common stock, par value $0.01, 24,000,000 shares authorized, 118,537 issued and
     outstanding                                                                                       1,185
Additional paid-in capital                                                                         1,174,000
Accumulated deficit                                                                               (7,063,448)
                                                                                                ------------
                                                                                                  (5,348,153)
                                                                                                ------------
                                                                                                $  6,877,743
                                                                                                ============
</TABLE>

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

                                       3
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                          For the                             For the
                                                     Three Months Ended                  Nine Months Ended
                                                     ------------------                  -----------------
                                             September 30,      September 30,      September 30,      September 30,
                                                 2006               2005               2006               2005
                                                 ----               ----               ----               ----
<S>                                           <C>                <C>                <C>                <C>
Rental Revenue                                $   381,132        $   412,795        $ 1,153,596        $ 1,254,416
                                              -----------        -----------        -----------        -----------

Operating expenses:

   Property operating costs                       260,838            123,701            740,620            544,669

   General and administrative expenses            400,460                  -           852,133            321,251

   Depreciation and amortization                   38,811             39,460            114,513            118,374

   Management fee-related party                         -             12,992             31,019             46,657
                                              -----------        -----------        -----------        -----------

Total operating expenses                          700,109            176,153          1,738,285          1,030,951
                                              -----------        -----------        -----------        -----------

Operating (loss) income                          (318,977)           236,642           (584,689)           223,465
                                              -----------        -----------        -----------        -----------

Non operating income (expense):

   Interest expense                              (166,695)           (84,221)          (458,846)          (259,052)

   Other income                                    22,471                  -             61,386                  -

   Realized loss from sales of trading           (305,915)                 -           (315,943)                 -
     securities

   Net unrealized loss on trading
     securities                                  (211,019)                 -            (30,219)                 -

   (Loss) Gain on fair value adjustment
     to derivatives                               (30,000)                 -                  -                  -
                                              -----------        -----------        -----------        -----------

Total non operating expense                      (691,158)           (84,221)          (743,622)          (259,052)
                                              -----------        -----------        -----------        -----------

Net (loss) income                             $(1,010,135)       $   152,421         (1,328,311)       $   (35,587)
                                              ===========        ===========                           ===========

Accumulated deficit - beginning of
 period                                                                              (5,735,137)
                                                                                     ----------

Accumulated deficit - end of period                                                 $(7,063,448)
                                                                                    ===========

(Loss) Earnings per share - basic and
 diluted                                      $     (8.52)       $      1.29        $    (11.21)       $     (0.30)
                                              ===========        ===========        ===========        ===========


Weighted average common shares
 outstanding - basic and diluted                  118,537            118,537            118,537            118,537
                                              ===========        ===========        ===========        ===========
</TABLE>

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

                                       4
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                            For the Nine Months Ended
                                                                                         -------------------------------
                                                                                         September 30,     September 30,
                                                                                             2006              2005
                                                                                             ----              ----
<S>                                                                                       <C>               <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss                                                                                  $ (1,328,311)     $    (35,587)
Adjustments to reconcile net loss to net cash
     provided by operating activities:
         Gain on sale of securities                                                            315,943
         Depreciation and amortization                                                         114,515           118,374
         Provision for doubtful accounts                                                        45,902                 -
         Net unrealized loss on trading securities                                              30,219                 -
         Net purchases of trading securities                                                  (483,206)                -

Changes in operating assets and liabilities:
         Accounts receivable - tenants                                                         (19,064)           33,869
         Other receivables                                                                     152,621
         Escrow                                                                                 59,463            26,074
         Other assets                                                                           15,682                 -
         Security deposits                                                                      11,903             4,850
         Accounts payable and accrued expenses                                                 207,806          (115,074)
                                                                                          ------------      ------------

              Net cash (used in) provided by operating activities                             (876,527)           32,506
                                                                                          ------------      ------------

CASH FLOWS FROM INVESTING ACTIVITIES
         Purchase of fixed assets                                                               (7,200)                -
                                                                                          ------------      ------------


              Net cash used in investing activities                                             (7,200)                -
                                                                                          ------------      ------------

CASH FLOWS FROM FINANCING ACTIVITIES
         Proceeds from officer/director                                                         15,691                 -
         Repayments to officer/director                                                       (325,000)                -
         Repayment of mortgage notes payable                                                   (71,501)          (49,673)
                                                                                          ------------      ------------

              Net cash used in financing activities                                           (380,810)          (49,673)
                                                                                          ------------      ------------

Decrease in cash and cash equivalents                                                       (1,264,537)          (17,167)

Cash and cash equivalents - beginning of period                                              2,905,529            25,681
                                                                                          ------------      ------------

Cash and cash equivalents - end of period                                                 $  1,640,992      $      8,514
                                                                                          ============      ============


Cash paid during the period during the period for interest                                $    311,567      $          -
                                                                                          ============      ============

Non-cash transactions

Contributions of capital for waived liquidated damages related to derivative liability    $  1,174,000      $          -
                                                                                          ============      ============

Series C Convertible Preferred Stock to be issued in consideration for waived
     liquidated damages                                                                   $    540,000      $          -
                                                                                          ============      ============
</TABLE>

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

                                       5
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 1 - NATURE OF OPERATIONS, ORGANIZATION AND FINANCIAL STATEMENT PRESENTATION

Company Background

Excellency Investment Realty Trust, Inc. (formerly known as Gift Liquidators
Inc.) and its predecessor companies were originally incorporated in 1963 as
Dorsett Educational Systems, Inc. ("Dorsett"). From 1963 through the mid-1980's,
Dorsett was in the business of developing and marketing educational material.
During that same period, the stock of Dorsett was publicly traded.

In 1990, Dorsett acquired, in a stock for stock exchange, a privately owned
business that developed, marketed and distributed a diverse line of gift and
novelty products, and changed its name to Laid Back Enterprises, Inc. ("Laid
Back"). From that date, until December 2002, Laid Back continued its
development, marketing and distribution of gift products, seasonal retailing and
closeout liquidation of gift products.

On December 20, 2002, Laid Back's shareholders voted to split-off its gift
inventory liquidation business from its gift design and merchandising business.
Pursuant to a Split-Off Agreement, dated December 20, 2002 (the "Split-Off
Agreement"), Laid Back distributed its gift design and merchandising business to
Max Colclasure and Ronald Hurt in exchange for a substantial portion of the
shares of Laid Back owned by Mr. Colclasure and Mr. Hurt. The shareholders also
voted to approve a change of name from Laid Back to Gift Liquidators, Inc.

Prior to the split-off, Mr. Colclasure and Mr. Hurt owned 64.72% and 6.42% of
the stock of Laid Back, respectively. Minority shareholders owned the remaining
outstanding stock. Subsequently, Mr. Colclasure and Mr. Hurt acquired all of the
remaining outstanding stock of the gift design and merchandising business,
thereafter known as Laid Back, and Mr. Colclasure acquired 25.78% of the gift
inventory liquidation business now known as Gift Liquidators, Inc. (hereinafter,
the "Company"), with the remaining shareholders owning 74.22% of the Company.

Pursuant to the Split-Off Agreement, on December 20, 2002, all of the assets,
liabilities and operations were transferred to Laid Back, except for gift
liquidation inventory valued at $400,019, which was retained by the Company. In
addition, all employees of the Company became employees of Laid Back. Since, the
Company had no employees, it entered into an Administrative Services Agreement
with Laid Back, dated December 20, 2002 (the "Administrative Services
Agreement"), to share administrative functions and personnel. The administrative
services, for which the Company reimbursed Laid Back, included sales, marketing,
accounting and customer service. In addition, the Company entered into a Tax
Sharing Agreement with Laid Back, dated December 20, 2002 (the "Tax Sharing
Agreement"), pursuant to which the Company shared certain tax responsibilities
with Laid Back.

During the third quarter of 2005, the Company's management determined that it
would no longer pursue its interests in the gift liquidation business.

                                       6
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 1 - NATURE OF OPERATIONS, ORGANIZATION AND FINANCIAL STATEMENT PRESENTATION
(Continued)

As of September 28, 2005 (the "Closing Date"), the Company entered into a
Preferred Stock Purchase Agreement with David Mladen, pursuant to which Mr.
Mladen purchased 11,000 shares of the Company's Series A Convertible Preferred
Stock, $0.01 par value per share ("Series A Preferred Stock"), for an aggregate
purchase price of $10,000 (the "Preferred Stock Purchase Transaction"). Prior to
an amendment to the Company's Certificate of Designation of Series A Convertible
Preferred Stock, each share of the Company's Series A Preferred Stock was
convertible at any time, at the holder's option, into 5 shares of the Company's
common stock, $0.01 par value per share ("Common Stock"), subject to adjustment
for stock dividends, stock splits, reclassifications, and similar events.

In addition, as of the Closing Date, two of the Company's former stockholders,
including Mr. Colclasure, a former officer and director of the Company, sold an
aggregate of 33,761 shares of the Company's Common Stock to Mr. Mladen, which
amount represented 28.6% of the Company's issued and outstanding Common Stock
(the "Common Stock Purchase Transaction").

Further, as of the Closing Date, the Company's existing officers and directors
resigned, and Mr. Mladen was appointed as the Company's sole officer and
director.

As a result of the Preferred Stock Purchase Transaction and the Common Stock
Purchase Transaction as of the closing date, Mr. Mladen owned and/or controlled
approximately 51% of the Company's voting power. By virtue of (i) the percentage
of the Company's Common Stock Mr. Mladen acquired, (ii) the number of shares of
Common Stock Mr. Mladen would receive upon conversion of the shares of Preferred
Stock he purchased, (iii) the resignation of all of the Company's officers and
directors, and (iv) the appointment of Mr. Mladen as the Company's sole officer
and director, there was deemed to have been a "change in control" of the Company
as of the Closing Date.

As of the Closing Date, the Company:

        o       terminated its Administrative Services Agreement with Laid Back;

        o       terminated its Tax Sharing Agreement with Laid Back; and

        o       entered into an Asset Sale Agreement with Laid Back (the "Asset
                Sale Agreement").

Pursuant to the Asset Sale Agreement, effective as of the Closing Date, the
Company sold all of its non-cash assets, including certain inventory, to Laid
Back, in exchange for the cancellation of the Company's indebtedness to Laid
Back in the aggregate amount of $50,485. As a result of the above transactions,
the Company became a "shell company", as defined by Securities Act Rule 405 and
Exchange Act Rule 12b-2 as a company other than an asset-backed issuer, with (a)
no or nominal operations, and (b) either (i) no or nominal assets; (ii) assets
consisting solely of cash and cash equivalents; or (iii) assets consisting of
any amount of cash and cash equivalents and other nominal assets.

                                       7
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 1 - NATURE OF OPERATIONS, ORGANIZATION AND FINANCIAL STATEMENT PRESENTATION
(Continued)

Merger

Eternal Enterprise, Inc. ("Eternal") was incorporated in the State of
Connecticut on June 18, 1997. Eternal is in the business of acquiring,
developing, holding for investment, operating and selling residential real
estate properties in the United States. Eternal owns the following residential
apartment buildings (collectively, the "Properties"):

        o       154-160A Collins Street, Hartford, CT;
        o       21 Evergreen Avenue, Hartford, CT;
        o       243 & 255 Laurel Street, Hartford, CT;
        o       252 Laurel Street, Hartford CT;
        o       270 Laurel Street, Hartford, CT;
        o       360 Laurel Street, Hartford, CT;
        o       117-145 S. Marshall Street, Hartford, CT; and
        o       56 Webster Street, Hartford, CT.

Prior to the Reverse Merger, described below, Mr. Mladen, the Company's majority
stockholder and sole officer and director, was also the majority stockholder and
the sole officer and director of Eternal. The other stockholders of Eternal were
(i) Mr. Mladen's daughter, (ii) Mr. Mladen's son-in-law, (iii) Mr. Mladen's son,
and (iv) Mr. Mladen's daughter-in-law (collectively, with Mr. Mladen, the
"Pre-Acquisition Eternal Stockholders").

In October 2005, the Company formed eight limited partnerships as wholly-owned
Delaware subsidiaries of the Company (the "Limited Partnerships"), as follows:

        o       Excellency Investment Realty Trust I, L.P.;
        o       Excellency Investment Realty Trust II, L.P.;
        o       Excellency Investment Realty Trust III, L.P.;
        o       Excellency Investment Realty Trust IV, L.P.;
        o       Excellency Investment Realty Trust V, L.P.;
        o       Excellency Investment Realty Trust VI, L.P.;
        o       Excellency Investment Realty Trust VII, L.P.; and
        o       Excellency Investment Realty Trust VIII, L.P.

On November 4, 2005, the Pre-Acquisition Eternal Stockholders exchanged, in the
aggregate, 100% of the issued and outstanding shares of Common Stock of Eternal
for (i) limited partnership interests representing 20% of the total partnership
interests in each of the Limited Partnerships, and (ii) unsecured promissory
notes payable to the Pre-Acquisition Eternal Stockholders in the aggregate
principal amount of $2,610,006 (the "LP Notes"), pursuant to Contribution
Agreements between the Pre-Acquisition Eternal Stockholders and the Limited
Partnerships (the "Reverse Merger"). As a result, Eternal is now 100% owned, in
the aggregate, by the Limited Partnerships.

                                       8
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 1 - NATURE OF OPERATIONS, ORGANIZATION AND FINANCIAL STATEMENT PRESENTATION
(Continued)

In consideration of the Company's ownership of 80% of the total partnership
interests of each of the Limited Partnerships that now own 100% of Eternal, the
Company agreed to assume the LP Notes.

The partnership interests of the Limited Partnerships were exchanged for shares
of common stock of Eternal based upon the ratio by which the value of each
Property bears to the aggregate value of all of the Properties.

Pursuant to the Partnership Agreements of the Limited Partnerships (the
"Partnership Agreements"), among other things, the Company:

        o       is the general partner of each of the Limited Partnerships; and

        o       has the right to compel the limited partners (i.e., the
                Pre-Acquisition Eternal Stockholders) to exchange 100% of their
                limited partnership interests for shares of Common Stock of the
                Company.

Because (i) the Pre-Acquisition Eternal Stockholders obtained a majority of the
shares of common stock of the combined entity after the combination, (ii) the
Pre-Acquisition Eternal Stockholders obtained the ability to elect and appoint a
voting majority of the governing board of the combined entity, and (iii)
Eternal's officer and director replaced the Company's officers and directors of
the combined entity, the transaction was treated as a reverse merger with
Eternal as the accounting acquirer of the Company. The accompanying consolidated
financial statements of the Company reflect the historical results of operations
of Eternal, and the consolidated results of operations subsequent to the
acquisition date of November 4, 2005. Eternal, as the accounting acquirer of the
"shell company", did not record goodwill or any other intangible asset as a
result of this Reverse Merger.

The Company's condensed financial statement as of and for the nine months ended
September 30, 2006, have been restated to give retroactive effect to the Reverse
Merger.

Reincorporation by Merger in Maryland

On May 10, 2006, the Company formed a new wholly-owned subsidiary, Excellency
Investment Realty Trust, Inc., in the State of Maryland (the "Maryland
Subsidiary"). The Articles of Incorporation of the Maryland Subsidiary
authorized 25,000,000 shares of capital stock, of which 24,000,000 shares were
authorized as common stock, $0.01 par value per share, and 1,000,000 were
authorized as preferred stock, $0.01 par value per share.

On July 17, 2006, the Maryland Subsidiary filed Articles of Amendment and
Restatement to its Articles of Incorporation, to, among other things: (a)
increase its number of authorized shares of capital stock to 201,000,000, of
which 200,000,000 shares are authorized as common stock and 1,000,000 as
preferred stock; and (b) increase the number of shares of common stock into
which each share of Series A convertible preferred stock is convertible to one
hundred forty-three (143).

                                       9
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 1 - NATURE OF OPERATIONS, ORGANIZATION AND FINANCIAL STATEMENT PRESENTATION
(Continued)

On September 20, 2006, the Company reincorporated in the State of Maryland by
virtue of its merger with and into the Maryland Subsidiary (the "Reincorporation
by Merger"). The Reincorporation by Merger was consummated pursuant to an
Agreement and Plan of Merger by and between the Company and the Maryland
Subsidiary, dated July 19, 2006.

As a result of the Reincorporation by Merger, among other things:

        o       The surviving company and successor filer is known as Excellency
                Investment Realty Trust, Inc.;

        o       Each share of the Company's issued and outstanding common stock
                and preferred stock was converted into one share of the Maryland
                Subsidiary's common stock and preferred stock, respectively;

        o       The title to all of the Company's property automatically vested
                in the Maryland Subsidiary;

        o       The Maryland Subsidiary assumed all of the Company's
                liabilities;

        o       Corporate actions of the surviving entity are now governed by
                the Maryland Corporations and Associations Law and by the
                Maryland Subsidiary's Articles of Amendment and Restatement of
                Articles of Incorporation and Bylaws;

        o       David Mladen, the Company's sole officer and director, continued
                to serve as the sole officer and director of the surviving
                entity;

        o       The trading symbol for the surviving entity's common stock,
                which is quoted on the over-the-counter bulletin board of the
                National Association of Securities Dealers, was changed to
                "EIVR"; and

        o       The total number of shares of stock which the surviving entity
                is authorized to issue has increased to 201,000,000 shares, of
                which 200,000,000 shares are common stock, $0.01 par value per
                share and 1,000,000 are preferred stock, par value $0.01.

While the Reincorporation by Merger resulted in changes to the Company's name
and state of incorporation, as well as the other changes listed above, it did
not result in any material changes to its business, management, assets,
liabilities or net worth.

                                       10
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include
the accounts of Excellency Investment Realty Trust, Inc., its controlled
subsidiaries comprised of certain Limited Partnerships (see Note 1), and Eternal
Enterprise, Inc. (wholly owned in the aggregate by the Limited Partnerships)
(hereinafter collectively referred to as the "Company"). As noted above, the
historical financial statements as presented reflect the operations of Eternal
as a result of the Reverse Merger. The Company records minority interest for the
non-owned portions of consolidated subsidiaries, however, these subsidiaries
have not generated any income to warrant the recording of such minority
interests through September 30, 2006. All significant inter-company transactions
and accounts have been eliminated in the consolidated financial statements.

The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States of America and the rules and regulations of the Securities and
Exchange Commission (the "SEC") for interim financial reporting. Certain
information and footnote disclosures normally included in the Company's annual
financial statements have been condensed or omitted. In the Company's opinion,
the unaudited interim financial statements and accompanying notes reflect all
adjustments consisting of normal and recurring adjustments that are necessary
for a fair presentation of its financial position and operating results for the
interim periods ended September 30, 2006 and 2005. The results of operations for
such periods are not necessarily indicative of the results that may be expected
for the full year or any future period.

Because the Company is engaged in the rental and sale of real estate, the
operating cycle may extend beyond one year. Accordingly, following the usual
practice of the real estate industry, the accompanying condensed consolidated
balance sheet is unclassified.

The preparation of the Company's condensed consolidated financial statements in
conformity with accounting principles generally accepted in the United States of
America requires management to make estimates, judgments and assumptions that
affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the condensed consolidated financial
statements and the reported amount of revenues and expenses during the reporting
period. The Company bases its estimates on historical experience and on various
other assumptions that are believed to be reasonable under the circumstances,
the results of which form the basis for making judgments about the carrying
values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different
assumptions or conditions.

These unaudited condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and related notes
included in the Company's Annual Report on Form 10-KSB for the year ended
December 31, 2005. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with accounting
principles generally accepted in the United States have been condensed or
omitted pursuant to such rules and regulations.

Certain amounts in the September 30, 2005 condensed consolidated financial
statements have been reclassified to conform to the September 30, 2006
presentation.

                                       11
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)

Real Estate

Real estate is stated at cost. The Company's real estate has been pledged as
security for various mortgage notes payable.

Depreciation

Buildings are depreciated using the straight line method over an estimated
useful life of 40 years. Building improvements are depreciated using the
straight line method over their estimated service lives, as determined by
management, generally between 5 and 15 years. Depreciation expense for the three
and nine months ended September 30, 2006 and 2005 was $35,233, $33,688,
$103,779, and $101,058, respectively.

Cash and Cash Equivalents

All highly liquid investments with an original maturities of three months or
less are considered to be cash equivalents. The Company maintains its cash
accounts with various financial institutions.

Cash balances are insured by the Federal Deposit Insurance Corporation up to
$100,000. As of September 30, 2006, the uninsured portion of cash balances held
at such financial institutions was $1,550,372.

Investments in Securities

The Company accounts for its investments in securities in accordance with
Statement of Financial Accounting Standards No. 115, "Accounting for Certain
Investments in Debt and Equity Securities." Management determines the
appropriate classification of its investments in marketable securities at the
time of purchase. Securities that are bought and held principally for the
purpose of selling them in the near term are classified as trading securities.
Debt securities for which the Company does not have the intent or ability to
hold to maturity and equity securities not classified as trading securities are
classified as available-for-sale. The cost of investments sold is determined on
the specific identification or the first-in, first-out method. Trading
securities are reported at fair value with unrealized gains and losses
recognized in earnings (see Note 5), and available-for-sale securities are also
reported at fair value but unrealized gains and losses are shown in the caption
"unrealized gains (losses) on shares available-for-sale" included in
stockholders' equity. Management determines fair value of its investments based
on quoted market prices at each balance sheet date. At September 30, 2006, all
investments are classified as trading securities.

Fair Value of Financial Instruments

The carrying value of the Company's financial instruments, including cash and
cash equivalents, accounts receivable, accounts payable and accrued expenses
and due to officer/director at September 30, 2006, approximate their fair value
because of their relatively short maturities.

Derivative Liabilities

The Company accounts for the registration rights agreements as a separate
freestanding instrument and accounts for the liquidated damages provision as a
derivative liability in accordance with SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." Accordingly the liability is recorded at
estimated fair value based on an estimate of the probability and costs of cash
penalties being incurred and is revalued at each balance sheet date with changes
in value recorded as other non operating income or expense (see Note 8).

                                       12
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)

Deferred Financing Costs

Deferred financing costs include fees and costs to obtain the Company's
mortgages and other notes payable. These costs are amortized over the terms of
the respective loans. Amortization expense for the three and nine months ended
September 30, 2006 and 2005 was $3,578, $5,772, $10,734, and $11,544,
respectively.

Revenue Recognition

Leases entered into between tenants and the Company for the rental of apartment
units are generally year to year and are renewable upon consent of both parties
on an annual or monthly basis. The Company also offers shorter term leases.
Rental income is earned on a straight-line basis over the terms of the lease.
Advance receipts of rental income are deferred and classified as liabilities.

Loss Per Share

Loss per share is calculated based on the weighted average number of common
shares outstanding during the period. The common stock equivalents for the
Company's preferred stock were not included in the computation of diluted loss
per share because to do so would have been anti-dilutive.

For the three and nine months ended September 30, 2006 and 2005, respectively,
1,573,000 and 55,000 of common stock equivalents were not included in the
calculation of diluted loss per share as their effect would be anti-dilutive

Income Taxes

The Company accounts for income taxes following the asset and liability method
in accordance with SFAS No. 109, "Accounting for Income Taxes." Under such
method, deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
bases. The Company's income tax returns are prepared on the cash basis of
accounting. Deferred tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years that the asset is
expected to be recovered or the liability settled. The types of deferred tax
assets are book versus tax depreciation and net operating losses.

In assessing the need for a valuation allowance, the Company estimates future
taxable income, considering the feasibility of ongoing tax planning strategies
and the realizability of tax loss carryforwards. Valuation allowances related to
deferred tax assets can be impacted by changes to tax laws, changes to statutory
tax rates and future taxable income levels. In the event the Company was to
determine that it would not be able to realize all or a portion of its deferred
tax assets in the future, it would increase the recorded valuation allowance
through a charge to income in the period in which the determination is made.
Conversely, if the Company were to determine that it would be able to realize
its deferred tax assets in the future in excess of the net carrying amount, it
would decrease the recorded valuation allowance through an increase to income in
the period in which that determination is made.

                                       13
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)

As of September 30, 2006, the Company has concluded that it is more likely than
not that the Company will not realize any deferred tax assets and has provided a
valuation allowance against the entire balance.

Comprehensive Income and Loss

SFAS No. 130, "Accounting for Comprehensive Income," establishes standards for
reporting and disclosure of comprehensive income and its components (including
revenues, expenses, gains and losses) in a full set of general-purpose financial
statements. The items of other comprehensive income that are typically required
to be disclosed are foreign currency items, minimum pension liability
adjustments, and unrealized gains and losses on certain investments in debt and
equity securities that are accounted for as available-for-sale securities.

Recent Accounting Pronouncements and Interpretations

In December 2004, the Financial Accounting Standards Board ("FASB") issued SFAS
No. 123 (revised 2004), "Share-Based Payment". SFAS 123 requires companies to
recognize in the statement of operations the grant-date fair value of stock
options and other equity-based compensation. That cost will be recognized over
the period during which an employee is required to provide service in exchange
for the award, usually the vesting period. Subsequent changes in fair value
during the requisite service period, measured at each reporting date, will be
recognized as compensation cost over that period. SFAS 123 is effective in the
first period beginning after June 15, 2005. The Company adopted SFAS 123 in
2006. The adoption of SFAS 123 did not have an impact on the Company's financial
position and results of operations.

In December 2005, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Financial Instruments - an amendment to FASB Statements No. 133 and 140" and in
May 2005, the FASB issued SFAS No. 154 "Accounting and Error Corrections - a
replacement of APB Opinion No. 20 and FASB Statement No. 3." The Company is not
significantly impacted by these statements and does not expect their
implementation to have a material impact on the Company's consolidated financial
statements.

                                       14
<PAGE>

         EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Continued)

FASB Statement of Financial Accounting Standards (SFAS) No. 157, Fair Value
Measurements, issued in September 2006, establishes a formal framework for
measuring fair value under GAAP. It defines and codifies the many definitions of
fair value included among various other authoritative literature, clarifies and,
in some instances, expands on the guidance for implementing fair value
measurements, and increases the level of disclosure required for fair value
measurements. Although SFAS No. 157 applies to and amends the provisions of
existing FASB and AICPA pronouncements, it does not, of itself, require any new
fair value measurements, nor does it establish valuation standards. SFAS No. 157
applies to all other accounting pronouncements requiring or permitting fair
value measurements, except for; SFAS No. 123 (R), share-based payment and
related pronouncements, the practicability exceptions to fair value
determinations allowed by various other authoritative pronouncements, and AICPA
Statements of Position 97-2 and 98-9 that deal with software revenue
recognition. This statement is effective for financial statements issued for
fiscal years beginning after November 15, 2007, and interim periods within those
fiscal years.

NOTE 3 - FINANCINGS

Promissory Notes Payable - Related Party

As of November 4, 2005 (the "Loan Date"), the Pre-Acquisition Eternal
Stockholders exchanged, in the aggregate, 100% of the issued and outstanding
shares of common stock of Eternal, for (i) limited partnership interests
representing 20% of the total partnership interests in each of the Limited
Partnerships, and (ii) unsecured promissory notes payable to the Pre-Acquisition
Eternal Stockholders in the aggregate principal amount of $2,610,006 (the "LP
Notes"), pursuant to Contribution Agreements between the Pre-Acquisition Eternal
Stockholders and the Limited Partnerships. In consideration for the Company's
ownership of 80% of the total partnership interests of each of the Limited
Partnerships, the Company agreed to assume the LP Notes.

The interest rate on the LP Notes is 7% per annum. The entire balance of
principal and interest of the LP Notes is due and payable on November 4, 2010.
The LP Notes may be prepaid without penalty. All payments shall be applied first
toward the payment of interest and the balance towards the reduction of
principal. As of September 30, 2006, no payments have been made.

                                       15
<PAGE>

         EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 3 - FINANCINGS (Continued)

Equity Line

On August 29, 2006, the Company entered into an Investment Agreement with
Dutchess Private Equities Fund, L.P. (the "Investor"), pursuant to which the
Investor committed to purchase up to $25,000,000 of the Company's common stock
over the course of thirty six (36) months. The amount that the Company shall be
entitled to request from each purchase ("Puts") shall be equal to, at the
Company's election, either (i) $250,000, or (ii) 200% of the average daily
volume (U.S. market only) of the common stock for the 10 trading days prior to
the applicable put notice date, multiplied by the average of the 3 daily closing
bid prices immediately preceding the put date. The put date shall be the date
that the Investor receives a put notice of a draw down by the Company. The
purchase price shall be set at 93% of the lowest closing Best Bid price of the
common stock during the pricing period. The pricing period shall be the 5
consecutive trading days immediately after the put notice date. There are put
restrictions applied on days between the put date and the closing date with
respect to that particular Put. During this time, the Company shall not be
entitled to deliver another put notice. Further, the Company shall reserve the
right to withdraw that portion of the Put that is below 90% of the lowest
closing bid prices for the 10-trading day period immediately preceding each put
notice. As of September 30, 2006, the Company had not raised any funds under
this Investment Agreement.

In connection with the Investment Agreement, the Company paid the Investor a due
diligence fee of $15,000.

NOTE 4 - ESCROW ACCOUNT

As of September 30, 2006, the Company maintained an escrow account with Astoria
Federal Mortgage Corp. in the amount of $40,227 for the payment of real estate
taxes and property insurance.

NOTE 5 - INVESTMENTS IN TRADING SECURITIES

The Company's investments are comprised of equity securities of publicly traded
companies. At September 30, 2006, the investments had an aggregate cost of
$167,264 and an aggregate market value of $137,045, which resulted in a net
unrealized loss of $30,219.

                                       16
<PAGE>

         EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 6 - LOANS PAYABLE

Mortgage

On December 27, 2005, the Company borrowed an aggregate of $8,224,000 from
Astoria Federal Mortgage Corp. ("Astoria"), in connection with the refinancing
of the Properties, evidenced by eight notes payable (the "Mortgage Notes"). The
initial interest rate on the Mortgage Notes, of 5.625%, will remain in effect
for eighty four (84) months. Thereafter, the Mortgage Notes bear interest at a
rate equal to the five (5) year "Fixed Rate Advance" as determined by the
Federal Home Bank of New York, plus two and one half percent (2.5%), rounded to
the nearest one-eighth of one percent (0.125%) and the interest rate will be
adjusted every sixty (60) months. The loans are repayable in monthly
installments of principal and interest (which total $47,343), due on the first
day of each month, commencing February 1, 2006. The principal and interest
payments are based on a 360 month amortization. The Mortgage Notes mature on
January 1, 2018, at which time the entire unpaid principal balance, plus accrued
interest thereon, shall be due.

The Mortgage Notes are collateralized by each respective Property. David Mladen,
the Company's majority stockholder, and sole officer and director, has
guaranteed up to 5% of the outstanding balance of the principal with interest
for the life of the loan. The Company incurred approximately $178,000 of
deferred financing costs related to these loans, which will be amortized over
the life of the mortgage notes payable (twelve years). There was no amortization
expense for the year ended December 31, 2005.

The principal balance at December 31, 2005, as reported by the Company on Form
10-KSB, was $8,224,000 ($8,152,499 as of September 30,2006). Future annual
maturities of the mortgage notes payable as of December 31, 2005 were as
follows:

         Fiscal Year            Amount
         -----------            ------
            2006             $     99,011
            2007                  113,982
            2008                  120,561
            2009                  127,521
            2010                  134,881
         Thereafter             7,628,044
                             ------------
                             $  8,224,000
                             ============

NOTE 7 - RELATED PARTY TRANSACTIONS

Property Management

Until June 30, 2006, properties were managed by White Knight Management, LLC
("White Knight"), a related party owned and controlled by David Mladen, the
Company's sole officer and director. Pursuant to an oral agreement between the
parties, White Knight collected the rent on behalf of the Company and paid the
Company's operating expenses.

                                       17
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 7 - RELATED PARTY TRANSACTIONS (Continued)

Management fees were $-0- and $12,992 and $31,019 and $46,657 for the three and
nine months ended September 30, 2006 and 2005, respectively. The Properties were
managed pursuant to an oral agreement, which provides for management fees of
approximately 4% of revenues. The Company discontinued this arrangement with
White Knight effective July 1, 2006, and the Properties are now managed by the
Company.

Due to Officer/Director

At various times in 2003, 2004, and 2005, David Mladen, the Company's majority
stockholder and sole officer and director, made unsecured loans to Eternal
Enterprise, Inc., in the aggregate amount of approximately $400,000 with an
interest rate of 6% per annum (the "Mladen Loans") due on or before May 10,
2010. In February 2006, the Company paid $325,000 to Mr. Mladen as partial
repayment of the Mladen Loans, including accrued interest. The remaining balance
due to the officer/director, as of September 30, 2006, was $132,900.

NOTE 8 - STOCKHOLDERS' DEFICIT

Liquidated Damages

In connection with David Mladen's purchase of 11,000 shares of the Company's
Series A Preferred Stock (the "Preferred Stock"), the Company entered into a
Registration Rights Agreement with Mr. Mladen (the "Registration Rights
Agreement"), pursuant to which the Company agreed to prepare and, on or prior to
the sixtieth (60th) day following the date of such purchase, file with the
Securities and Exchange Commission ("SEC") a Resale Registration Statement on
Form SB-2 (the "Resale Registration Statement"), to register all of the shares
of the Company's Common Stock underlying the Preferred Stock (the "Conversion
Shares"). Further, pursuant to the Registration Rights Agreement, the Company is
required to use best efforts to (a) have the SEC declare the Resale Registration
Statement effective within ninety (90) days after filing the Resale Registration
Statement with the SEC (or one hundred and twenty (120) days in the event any
comments on the Registration Statement are received from the SEC), and (b)
maintain the effectiveness of the Resale Registration Statement until all such
common shares have been sold or may be sold without volume restrictions pursuant
to Rule 144(k) of the Securities Act of 1933, as amended.


                                       18
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 8 - STOCKHOLDERS' DEFICIT (Continued)

If the Company (i) fails to file the Resale Registration Statement, or (ii)
fails to have the Registration Statement declared effective within the required
period, or (iii) if effectiveness is not maintained, the Registration Rights
Agreement requires the Company to make payments to Mr. Mladen in an aggregate
amount equal to two percent (2%) per month of $9,000,000 (assuming the sale of
$9,000,000 of the aggregate fair market value of the Conversion Shares)
("Outstanding Principal Amount"), multiplied by the number of months (prorated
for partial months) until the failure is cured. As of the date hereof, the
Resale Registration Statements has not been filed. As of June 30, 2006, Mr.
Mladen agreed to waive $1,174,000 of liquidated damages due to him, and such
amount was accounted for as a contribution of capital as of that date. On
October 24, 2006, Mr. Mladen agreed to additionally waive an aggregate of
$720,000 in liquidated damages, for the period between July 1, 2006 and October
31, 2006 (see Note 10). As of September 30, 2006, $540,000 of these liquidated
damages have been recorded as preferred stock to be issued (see Note 10).

The Company accounts for the Registration Rights Agreement as a separate
freestanding instrument and accounts for the liquidated damages provision as a
derivative liability in accordance with to SFAS 133. Accordingly, the liability
is recorded at estimated fair value based on an estimate of the probability and
costs of cash penalties being incurred and is revalued at each balance sheet
date, with changes in value recorded as non-operating income (expense). As of
September 30, 2006, the liability amounted to $864,000, and is included on the
balance sheet as a derivative liability.

Series A Preferred Stock

As of September 28, 2005, the Company filed a Certificate of Designation of
Series A Convertible Preferred Stock (the "Series A Certificate of Designation")
with the Secretary of State of the State of Oklahoma, designating a Series of
11,000 shares of Series A Convertible Preferred Stock, $0.01 par value per share
(the "Series A Preferred Stock"). Pursuant to the Series A Certificate of
Designation, as amended on July 12, 2006, holders of the Company's Series A
Preferred Stock:

        o       shall be entitled to cast one hundred forty three (143) votes
                per share of Series A Preferred Stock upon all matters submitted
                to a vote of the holders of the Company's Common Stock;

        o       shall be entitled to receive dividends when and as declared by
                the Company's Board of Directors; and

        o       shall be entitled to convert each of their shares of Series A
                Preferred Stock into one hundred forty three (143) shares of the
                Company's Common Stock, at any time, and from time to time, for
                no additional consideration.

                                       19
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 8 - STOCKHOLDERS' DEFICIT (Continued)

The shares of Series A Preferred Stock:

        o       shall be not be reissued after they are reacquired by the
                Company by reason of repurchase or otherwise, and all such
                shares shall be returned to the status of undesignated shares of
                the Company's Preferred Stock; and

        o       shall be adjusted in the event of stock splits, stock
                combinations, mergers, reorganizations, or other such events.

As of September 30, 2006, all 11,000 shares of the Company's Series A Preferred
Stock were issued and outstanding.

Series B Preferred Stock

On March 10, 2006, the Company filed a Certificate of Designation of Series B
Preferred Stock (the "Series B Certificate of Designation") with the Secretary
of State of the State of Oklahoma, designating a series of 20,000 shares of
Preferred Stock of the Company, $0.01 par value (the "Series B Preferred
Stock"). Pursuant to the Series B Certificate of Designation, holders of the
Company's Series B Preferred Stock:

        o       shall be entitled to cast one hundred (100) votes per share of
                Series B Preferred Stock upon all matters submitted to a vote of
                the holders of the Company's Common Stock;

        o       shall not be entitled to receive dividends when and as declared,
                out of the Company's net profits;

        o       shall not be entitled to a liquidation preference in the event
                of any liquidation, dissolution or winding up of the Company;
                and

        o       shall not be entitled to convert their shares of Series B
                Preferred Stock into shares of the Company's Common Stock.

In addition, the shares of Series B Preferred Stock:

        o       shall not be redeemable by the Company;

        o       shall rank junior to all other series of the Company's Preferred
                Stock as to the distributions of assets, unless the terms of any
                such series shall provide otherwise;

        o       shall be not be reissued after they are reacquired by the
                Company by reason of repurchase or otherwise, and all such
                reacquired shares shall be returned to the status of
                undesignated shares of the Company's Preferred Stock; and

        o       shall be adjusted in the event of stock splits, stock
                combinations, mergers, reorganizations, or other such events.

                                       20
<PAGE>

         EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 8 - STOCKHOLDERS' DEFICIT (Continued)

So long as any shares of Series B Preferred Stock remain issued and outstanding,
the Company shall not, without the consent of the holders of a majority of the
shares of Series B Preferred Stock then outstanding:

        o       amend, alter or repeal any provision of the Company's
                Certificate of Incorporation (including the Certificate of
                Designation), or Bylaws;

        o       authorize, or increase the authorized amount of any additional
                class or series of stock; or

        o       effect any reclassification of the Series B Preferred Stock.

The Series B Certificate of Designation may be amended by vote of both the
Company's Board of Directors and the holders of a majority of the outstanding
shares of Series B Preferred Stock.

As of September 30, 2006, no shares of the Company's Series B Preferred Stock
were issued or outstanding.

NOTE 9 - CONTINGENCIES

Going Concern

The Company has suffered recurring losses from operations and has a net
stockholders' deficit of $5,348,153 all of which raise substantial doubt about
the Company's ability to continue as a going concern. Management plans to raise
capital through a combination of debt and equity financings and to manage cash
flows carefully. However, the Company has no assurance that sufficient cash flow
will be generated in the future to meet its operating requirements.

Periodic Filings

Under a 2005 rule change, OTC Bulletin Board ("OTCBB") issuers that are cited
for filing delinquency three times in a 24-month period and those removed for
failure to file two times in a 24-month period will be ineligible for quotation
by an NASD member. Following removal under this new rule, an issuer's securities
would again become eligible for quotation on the OTCBB when the issuer has filed
periodic reports for one year in a timely manner.

The Company has been late in two of its periodic filings with the Securities and
Exchange Commission ("SEC") during 2006. Accordingly, the Company may be
ineligible for quotation by an NASD member if it is delinquent one more time in
its periodic filings with the SEC during the applicable 24-month period.

                                       21
<PAGE>

            EXCELLENCY INVESTMENT REALTY TRUST, INC. AND SUBSIDIARIES
                   (FORMERLY KNOWN AS GIFT LIQUIDATORS, INC.)
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   (Unaudited)

NOTE 10 - SUBSEQUENT EVENTS

Series C Convertible Preferred Stock

On October 6, 2006, the Company's Board of Directors approved the
reclassification and designation of 43,500 shares of the Company's authorized
preferred stock, $0.01 par value per share, designated as series C convertible
preferred stock ("Series C Preferred Stock"). On October 11, 2006, the Company
filed Articles Supplementary to the Articles (the "Articles Supplementary") with
the State Department of Assessments and Taxation of Maryland, reclassifying and
designating the Series C Preferred Stock and fixing the rights and preferences
of such series. Pursuant to the Articles Supplementary, the holders of the
Company's Series C Preferred Stock:

        o       shall be entitled to cast one thousand (1,000) votes per share
                of Series C Preferred Stock upon all matters submitted to a vote
                of the holders of the Company's Common Stock;

        o       shall be entitled to receive dividends when and as declared by
                the Company's Board of Directors; and

        o       shall be entitled to convert each of their shares of Series C
                Preferred Stock into one thousand (1,000) shares of the
                Company's Common Stock, at any time, and from time to time, for
                no additional consideration.

The shares of Series C Preferred Stock:

        o       shall be not be reissued after they are reacquired by the
                Company by reason of repurchase or otherwise, and all such
                shares shall be returned to the status of undesignated shares of
                our Preferred Stock; and

        o       shall be adjusted in the event of stock splits, stock
                combinations, mergers, reorganizations, or other such events.

On October 18, 2006, the Company issued the 43,500 shares of Series C Preferred
Stock (the "Preferred Shares") to David Mladen, the Company's President, Chief
Executive Officer and director. The Preferred Shares were issued to Mr. Mladen
in consideration for his agreement to waive $720,000 of liquidated damages due
to him, for the period of July 1, 2006 through October 31, 2006, by virtue of
the Company's failure to satisfy certain of its registration requirements.

On October 24, 2006, Mr. Mladen converted the Preferred Shares into 43,500,000
shares of the Company's Common Stock.

                                       22
<PAGE>

Item 2.  Management's Discussion and Analysis or Plan of Operation.

The financial and business analysis below provides information which we believe
is relevant to an assessment and understanding of our financial condition and
results of operations. You should read the following discussion of our financial
condition and results of operations in conjunction with the Notes to the
Financial Statements in Item 1 of this Quarterly Report on Form 10-QSB, and our
Annual Report on Form 10-KSB for the year ended December 31, 2005 (the "Annual
Report"). In addition to historical information, this discussion contains
statements that may be deemed to be "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The words "believes",
"estimates", "expects" and "anticipates" and other similar expressions that are
predictions of or indicate future events and trends and which do not relate
solely to historical matters identify forward-looking statements. Such
forward-looking statements are subject to risks and uncertainties, which could
cause actual results, performance, or achievements of ours to differ materially
from anticipated future results, performance or achievements expressed or
implied by such forward-looking statements. Factors that might cause such
differences include, but are not limited to, the following:

        o       Anticipated capital expenditures for replacements and building
                improvements all reflect our best estimates and are subject to
                uncertainties arising from changing economic conditions (such as
                the cost of labor and construction materials), competition and
                local government regulation;

        o       Sources of capital or labor and materials required for
                maintenance, repair, capital expenditure or development are more
                expensive than anticipated;

        o       Occupancy levels and market rents may be adversely affected by
                national and local economic and market conditions including,
                without limitation, new construction of multifamily housing,
                slow employment growth, availability of low interest mortgages
                for single-family home buyers and the potential for geopolitical
                instability, all of which are beyond our control;

        o       Our inability to derive sufficient revenues from our operations,
                or obtain financing when needed, would have a material adverse
                effect on our company, requiring us to curtail or cease
                operations; and

        o       Additional factors as discussed in Item 1 of our Annual Report,
                under the heading of "Risk Factors."

Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. We undertake no obligation
to publicly release any revisions to these forward-looking statements, which may
be made to reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.

Overview

On September 4, 1963, we were incorporated in the State of Oklahoma as Dorsett
Educational Systems, Inc. On December 20, 2002, we changed our name to Gift
Liquidators, Inc. Since that time, and prior to the sale of all of our gift and
novelty inventory in September 2005, our core business involved the wholesale
distribution of a diverse line of gift and novelty products acquired in
closeouts from gift developers and distributors.

                                       23
<PAGE>

As of September 28, 2005 (the "Closing Date"), we entered into a Preferred Stock
Purchase Agreement with David Mladen (the "Preferred Stock Purchase Agreement"),
pursuant to which Mr. Mladen purchased 11,000 shares of our Series A Convertible
Preferred Stock, $0.01 par value per share ("Series A Preferred Stock"), for an
aggregate purchase price of $10,000 (the "Preferred Stock Purchase
Transaction"). As of the Closing Date, each share of our Series A Preferred
Stock was convertible at any time, at the holder's option, into 5 shares of our
common stock, $0.01 par value per share ("Common Stock"), subject to adjustment
for stock dividends, stock splits, reclassifications, and similar events.

Further, as of the Closing Date, two of our former stockholders, one of whom was
an officer and director of ours, sold an aggregate of 33,761 shares of our
Common Stock to Mr. Mladen, which amount represented 28.6% of our issued and
outstanding Common Stock (the "Common Stock Purchase Transaction").

In addition, as of the Closing Date, our existing officers and directors
resigned, and Mr. David Mladen was appointed as our sole officer and director.

As a result of the Preferred Stock Purchase Transaction and the Common Stock
Purchase Transaction, Mr. Mladen owned and/or controlled 51% of our voting
power. By virtue of (i) the percentage of our Common Stock Mr. Mladen acquired,
(ii) the number of shares of Common Stock Mr. Mladen would receive upon
conversion of the shares of our Preferred Stock he purchased, (c) the
resignation of all of our officers and directors, and (d) the appointment of Mr.
Mladen as our sole officer and director, there was deemed to have been a "change
in control" of our company as of the Closing Date.

At the time of the Preferred Stock Purchase Transaction and the Common Stock
Purchase Transaction, Mr. Mladen was also the majority stockholder and the sole
officer and director of Eternal Enterprise, Inc., a Connecticut Corporation
("Eternal"), which owns the following residential real estate properties
(collectively, the "Properties") in Hartford, Connecticut:

        o       154-160A Collins Street, Hartford, CT;
        o       21 Evergreen Avenue, Hartford, CT;
        o       243 & 255 Laurel Street, Hartford, CT;
        o       252 Laurel Street, Hartford CT;
        o       270 Laurel Street, Hartford, CT;
        o       360 Laurel Street, Hartford, CT;
        o       117-145 S. Marshall Street, Hartford, CT; and
        o       56 Webster Street, Hartford, CT.

Mr. Mladen entered into the Preferred Stock Purchase Transaction and the Common
Stock Purchase Transaction with the specific intention of taking control of our
company, and, subsequently, combining it with Eternal.

In connection with the aforementioned transactions, and the corresponding
decision by Mr. Mladen to have our company exit the gift liquidation business,
effective as of the Closing Date, we:

        o       entered into an Asset Sale Agreement with Laid Back Enterprises,
                Inc. ("Laid Back"), a company owned and controlled by two of our
                former officer and directors, pursuant to which Laid Back
                purchased all of our non-cash assets, including all of our
                inventory in exchange for the cancellation of our indebtedness
                to Laid Back in the aggregate amount of $50,485;

                                       24
<PAGE>

        o       terminated our Administrative Services Agreement with Laid Back,
                dated December 20, 2002, pursuant to which we had been receiving
                certain personnel, sales, marketing, accounting and other
                administrative services from Laid Back; and

        o       terminated our Tax Sharing Agreement with Laid Back, dated
                December 20, 2002 pursuant to which we had been sharing certain
                tax responsibilities with Laid Back.

Between October 26, 2005 and October 31, 2005, we formed eight limited
partnerships as wholly-owned Delaware subsidiaries of the Company (the "Limited
Partnerships"). At the time of formation, the Company owned 100% of the
partnership interests of each of the Limited Partnerships.

As of November 4, 2005, the pre-acquisition stockholders of Eternal (the
"Pre-Acquisition Eternal Stockholders") exchanged, in the aggregate, 100% of the
issued and outstanding shares of common stock of Eternal, for (i) limited
partnership interests representing 20% of the total partnership interests of
each of the Limited Partnerships, and (b) promissory notes in the aggregate
principal amount of $2,610,006 (the "LP Notes"), pursuant to Contribution
Agreements between the Pre-Acquisition Eternal Stockholders and the Limited
Partnerships (the "Eternal Acquisition"). As a result, the shares of common
stock of Eternal are now 100% owned, in the aggregate, by the Limited
Partnerships.

In consideration of our ownership of 80% of the total partnership interests of
each of the Limited Partnerships that now own 100% of Eternal, we agreed to
assume the LP Notes. The interest rate on the LP Notes is 7% per annum. The
entire balance of principal and interest of the LP Notes is due and payable on
November 4, 2010. The LP Notes may be prepaid without penalty. All payments
shall be applied first toward the payment of interest and the balance towards
the reduction of principal.

The partnership interests of the Limited Partnerships were exchanged for shares
of common stock of Eternal based upon the ratio which the value of each Property
bears to the aggregate value of all of the Properties.

Pursuant to the Partnership Agreements of the Limited Partnerships (the
"Partnership Agreements"), among other things, the Company:

        o       is the general partner of each of the Limited Partnerships; and

        o       has the right to compel the limited partners (i.e., the
                Pre-Acquisition Eternal Stockholders) to exchange 100% of their
                limited partnership interests for shares of common stock of the
                Company.

Since, at the effective time of the Eternal Acquisition (and the Preferred Stock
Purchase Transaction and the Common Stock Purchase Transaction, consummated in
anticipation thereof): (i) the Pre-Acquisition Eternal Stockholders obtained a
majority of the shares of common stock of the combined entity after the
combination, (ii) Pre-Acquisition Eternal Stockholders obtained the ability to
elect and appoint a voting majority of the governing board of the combined
entity, and (iii) Eternal's officers and directors replaced ours as officers and
directors of the combined entity, the Eternal Acquisition was treated as a
reverse merger with Eternal as the accounting acquirer for financial reporting
purposes.

                                       25
<PAGE>

Recent Developments

Investment Agreement with Dutchess Private Equities
---------------------------------------------------

On August 29, 2006, we entered into an Investment Agreement with Dutchess
Private Equities Fund, L.P. ("Dutchess"), pursuant to which Dutchess committed
to purchase up to $25,000,000 of our Common Stock over the course of thirty six
(36) months. The amount that we will be entitled to request from each purchase
("Puts") shall be equal to, at our election, either (i) $250,000, or (ii) 200%
of the average daily volume (U.S. market only) of the Common Stock for the 10
trading days prior to the applicable put notice date, multiplied by the average
of the 3 daily closing bid prices immediately preceding the put date. The put
date shall be the date that Dutchess receives a put notice of a draw down by us.
The purchase price shall be set at 93% of the lowest closing Best Bid price of
the Common Stock during the pricing period. The pricing period shall be the 5
consecutive trading days immediately after the put notice date. There are put
restrictions applied on days between the put date and the closing date with
respect to that particular Put. During this time, we shall not be entitled to
deliver another put notice. Further, we shall reserve the right to withdraw that
portion of the Put that is below 90% of the lowest closing bid prices for the
10-trading day period immediately preceding each put notice.

Reincorporation by Merger in Maryland
-------------------------------------

On September 20, 2006, we reincorporated in the State of Maryland by virtue of
our merger with and into Excellency Investment Realty Trust, Inc., our Maryland
subsidiary (the "Maryland Subsidiary"), which had been organized for that
purpose (the "Reincorporation by Merger"). The Reincorporation by Merger was
consummated pursuant to an Agreement and Plan of Merger by and between us and
the Maryland Subsidiary, dated July 19, 2006.

As a result of the Reincorporation by Merger, among other things:

        o       The surviving company and successor filer is known as Excellency
                Investment Realty Trust, Inc.;

        o       Each share of our issued and outstanding common stock and
                preferred stock was converted into one share of the Maryland
                Subsidiary's common stock and preferred stock, respectively;

        o       The title to all of our property automatically vested in the
                Maryland Subsidiary;

        o       The Maryland Subsidiary assumed all of our liabilities;

        o       Corporate actions of the surviving entity are now governed by
                the Maryland Corporations and Associations Law and by the
                Maryland Subsidiary's Articles of Amendment and Restatement of
                Articles of Incorporation and Bylaws;

        o       David Mladen, our sole officer and director, continued to serve
                as the sole officer and director of the surviving entity;

        o       The trading symbol for the surviving entity's common stock,
                which is quoted on the over-the-counter bulletin board of the
                National Association of Securities Dealers, was changed to
                "EIVR"; and

                                       26
<PAGE>

        o       The total number of shares of stock which the surviving entity
                is authorized to issue has increased to 201,000,000 shares, of
                which 200,000,000 shares are common stock, $0.01 par value per
                share and 1,000,000 are preferred stock, par value $0.01.

While the Reincorporation by Merger resulted in changes to our name and state of
incorporation, as well as the other changes listed above, it did not result in
any material changes to our business, management, assets, liabilities or net
worth.

Designation and Issuance of Series C Convertible Preferred Stock
----------------------------------------------------------------

On October 11, 2006, we filed Articles Supplementary to our Articles of
Amendment and Restatement to our Articles of Incorporation (the "Articles
Supplementary") with the State Department of Assessments and Taxation of
Maryland, reclassifying and designating a series of 43,500 shares of Series C
Convertible Preferred Stock (the "Series C Preferred Stock") and fixing the
rights and preferences of such series.

On October 18, 2006, we issued the 43,500 shares of Series C Preferred Stock to
David Mladen, in consideration for his agreement to waive $720,000 of liquidated
damages due to him, for the period of July 1, 2006 through October 31, 2006, by
virtue of our failure to satisfy certain of our registration requirements.

On October 24, 2006, Mr. Mladen converted the Series C Preferred Stock into
43,500,000 shares of our Common Stock.

Related Party Transactions

The Properties are managed by White Knight Management, LLC, a party owned and
controlled by David Mladen, our majority stockholder and sole officer and
director. The Properties are managed pursuant to oral agreements which provide
for management fees of approximately 4% of revenues. Management fees were $-0-
and $12,992 and $31,019 and $46,657 for three and the nine months ended
September 30, 2006 and 2005, respectively. We discontinued this arrangement with
White Knight effective July 1, 2006, and now manage the Properties ourselves.

Trends and Uncertainties

We are not aware of any material trends or uncertainties, favorable or
unfavorable, other than national economic conditions affecting real estate
generally, that may be reasonably anticipated to have a material impact on
either capital resources or the revenues or income to be derived from the
acquisition and operation of the Properties, other than those identified below.

Increasing Demand For Rental Apartments
---------------------------------------

Based on certain demographic trends, in particular, the growth of the "Echo
Boomer" generation, we believe we are well-positioned to continue achieving our
objectives. While there is no guarantee that individuals making up this group
will choose renting versus ownership, we believe the increase in this age group
will have a positive demand for the number of rental households. Echo Boomers
are now entering into the age group having the greatest propensity to rent. The
number of individuals between the ages of 18-39 is expected to grow
significantly over the next 20 years.

Strong Demand Due To Interest Rate Environment
----------------------------------------------

                                       27
<PAGE>

The 40-year historic lows reached on mortgage interest rates in recent years
provided some individuals with the opportunity to purchase homes at similar
costs to renting, particularly when utilizing short-term variable mortgages.
However, with the more recent increases in interest rates, this attractive
alternative may have faded for some and the apartment sector is in a position to
reap the benefits. If a higher interest rate environment continues, then the
number of individuals purchasing homes will typically decline. As rental
apartments directly compete with the single-family home and condominium sectors
of the economy, the demand on new and existing rental apartment communities may
rise when demand for purchasing homes falls. We believe this will be beneficial
for apartment owners as it should translate into greater demand, higher
occupancy rates, fewer concessions needed to attract renters, and therefore
increased profitability of our Properties.

Increased Income And Dividends Due To Healthy U.S. Economy
----------------------------------------------------------

Generally, healthy employment in a particular market area enables apartment
owners to increase rents charged to tenants. As employment across the locations
in which we own apartment buildings continues to improve and stabilize,
apartment owners in these locations should be able to increase rents ahead of
expenses, which should increase the revenue we receive from our apartment
buildings. As a result, the amount of cash available for distribution to our
stockholders should increase. However, our actual results of operations and,
accordingly, cash available for dividends, will be affected by a number of
factors, including the revenue we receive from our Properties, our operating
expenses, our debt obligations, interest expense, the ability of our residents
to meet their obligations, and unanticipated expenditures.

Liquidity and Capital Resources

We have suffered recurring losses from operations and have a net stockholders'
deficit of $5,348,153 all of which raise substantial doubt about our ability to
continue as a going concern. Management plans to raise capital through a
combination of debt and equity financings and to manage cash flows carefully.
However, we have no assurance that sufficient cash flow will be generated in the
future to meet our operating requirements.

We expect that the rental income we receive from tenants of our Properties will
be our primary source of funds going forward. In order to acquire additional
apartment properties, and, if necessary, to fund our operations, we may
determine to take out additional loans from financial institutions or raise
funds from one or a combination of debt offerings and equity offerings.

Our cash and cash equivalents balance was $1,640,992 at September 30, 2006. All
cash and cash equivalents are held in money market or checking accounts.

Mortgage Notes Payable to Astoria Federal Mortgage Corp.

As a result of the Eternal Acquisition, we are the owner of eight Properties,
all in the metropolitan Hartford, Connecticut area.

As of December 27, 2005, we borrowed an aggregate of $8,224,000 from Astoria
Federal Mortgage Corp., in connection with the refinancing of the Properties,
evidenced by eight notes payable (the "Mortgage Notes"). The initial interest
rate on the Mortgage Notes, of 5.625%, will remain in effect for 84 months.
Thereafter, the Mortgage Notes bear interest at a rate equal to the five (5)
year "Fixed Rate Advance" as determined by the Federal Home Bank of New York,
plus 2.500%, rounded to the nearest one-eighth of one percent (0.125%) and
adjusted every sixty (60) months. The loans are repayable in monthly
installments of principal and interest, due on the first day of each month,
commencing February 1, 2006. The principal and interest payments are based on a
360 month amortization. The Mortgage Notes mature on January 1, 2018, at which
time the entire unpaid principal balance, plus accrued interest thereon, shall
be payable.

                                       28
<PAGE>

The Mortgage Notes are secured against each respective Property. David Mladen,
our majority stockholder, and sole officer and director, has guaranteed up to 5%
of the outstanding balance of the principal with interest for the life of the
loan.

Liquidated Damages

In connection with David Mladen's purchase of 11,000 shares of our Series A
Preferred Stock (the "Preferred Stock"), we entered into a Registration Rights
Agreement with Mr. Mladen (the "Registration Rights Agreement"), pursuant to
which we agreed to prepare, and, on or prior to the sixtieth (60th) day
following the date of such purchase, file with the Securities and Exchange
Commission a Resale Registration Statement on Form SB-2 (the "Resale
Registration Statement"), to register all of the shares of our Common Stock
underlying the Preferred Stock (the "Conversion Shares"). Further, pursuant to
the Registration Rights Agreement, we are required to use best efforts to (a)
have the SEC declare the Resale Registration Statement effective within ninety
(90) days after filing the Resale Registration Statement with the SEC (or one
hundred and twenty (120) days if we receive any comments on the Registration
Statement from the SEC), and (b) maintain the effectiveness of the Resale
Registration Statement until all such common shares have been sold or may be
sold without volume restrictions pursuant to Rule 144(k) of the Securities Act
of 1933, as amended.

If we (i) fail to file the Resale Registration Statement, or (ii) fail to have
the Registration Statement declared effective within the required period, or
(iii) if effectiveness is not maintained, the Registration Rights Agreement
requires us to make payments to Mr. Mladen in an aggregate amount equal to two
percent (2%) per month of $9,000,000 (assuming the sale of $9,000,000 of the
aggregate fair market value of the Conversion Shares) ("Outstanding Principal
Amount"), multiplied by the number of months (prorated for partial months) until
the failure is cured. As of June 30, 2006, the Resale Registration Statement had
not been filed. As of the date hereof, the Resale Registration Statements has
still not been filed. As of June 30, 2006, Mr. Mladen has agreed to waive
approximately $1,174,000 of Liquidated Damages due to him, and such amount has
been reflected as a capital contribution as of that date. As of October 24,
2006, we issued Mr. Mladen 43,500 shares of our Series C Preferred Stock, in
consideration for his agreement to waive an aggregate of $720,000 of liquidated
damages due to him, for the period of July 1, 2006 through October 31, 2006. As
of September 30, 2006, an additional $540,000 of liquidated damages were
recorded as preferred stock to be issued.

We account for the Registration Rights Agreement as a separate freestanding
instrument and account for the liquidated damages provision as a derivative
liability subject to SFAS 133. Accordingly, the liability is recorded at
estimated fair value based on an estimate of the probability and costs of cash
penalties being incurred and is revalued at each balance sheet date, with
changes in value recorded as non-operating income or expense. As of September
30, 2006, the liability amounted to approximately $864,000, and is included on
the balance sheet as a derivative liability.

Results of Operations

As of September 30, 2006, we owned interests in eight (8) residential real
estate properties consisting of 273 units. The table below lists the location of
our Properties, the number and type of units in each Property, the range of
rents, and the vacancies of these Properties as of September 30, 2006.

                                       29
<PAGE>

Details on the properties are as follows [David needs to update.]:

--------------------------------------------------------------------------------
                            Number and                 Rent Range     Vacancies
Location                    Type of Units
--------------------------------------------------------------------------------
154-160A Collins Street     41 units:                                     15
Hartford, CT                3 three-bedroom            $750
                            1 one-and a-half-bedroom   $650
                            37 one-bedroom             $600
--------------------------------------------------------------------------------
21 Evergreen Avenue         24 units:                                     3
Hartford, CT                18 one-bedroom             $625 - $650
                            6 studios                  $500 - $550
--------------------------------------------------------------------------------
243 & 255 Laurel Street     34 units:                                     4
Hartford, CT                4 two-bedroom              $725 - $775
                            30 one-bedroom             $600 - $625
--------------------------------------------------------------------------------
252 Laurel Street           21 units:                                     0
Hartford, CT                2 two-bedroom              $750
                            16 one-bedroom             $625
                            3 studios                  $450 - $475
--------------------------------------------------------------------------------
270 Laurel Street           77 units:                                     5
Hartford, CT                1 two-bedroom              $825
                            3 one-bedroom              $650
                            73 studios                 $500 - $550
--------------------------------------------------------------------------------
360 Laurel Street           18 units:                                     3
Hartford, CT                3 two-bedroom              $650 - $700
                            15 one-bedroom             $600 - $625
--------------------------------------------------------------------------------
117-145 S. Marshall Street  42 units:                                     14
Hartford, CT                36 two bedroom             $700 - $725
                            6 one-bedroom              $600 - $625
--------------------------------------------------------------------------------
56 Webster Street           16 units:                                     0
Hartford, CT                10 one-bedroom             $500
                            6 studios                  $400
--------------------------------------------------------------------------------

Comparison of Operations for the Three-Month Period Ended September 30, 2006 to
the Three-Month Period Ended September 30, 2005

The following summarizes changes in our operations for the three-month periods
ended September 30, 2006 and 2005. Our net loss for the three-month period ended
September 30, 2006, was $1,010,135 the three-month period ended September 30,
2005, we had a net income $152,421. The primary reason for this decrease in our
net loss was unrealized gains on investments during 2006, which are partially
offset by the increase in professional fees incurred in connection with our
Reincorporation by Merger in Maryland and related regulatory filings.

Rental Revenue

Revenues decreased approximately $31,663, from $412,795 in the three-month
period ended September 30, 2005 to $381,132 in the three-month period ended
September 30, 2006, or approximately 7.7%, as a result of decreased occupancy
rates.

                                       30
<PAGE>

Property Operating Costs

Property operating costs increased approximately $137,137, from $123,701 in the
three-month period ended September 30, 2005 to $260,838 in the three-month
period ended September 30, 2006, or approximately 111.0%. The increase was
primarily related to increased costs for utilities.

General and Administrative

General and administrative expense increased approximately $400,460, from $-0-
in the three-month period ended September 30, 2005 to $400,460 in the
three-month period ended September 30, 2006. The increase was due to increased
professional fees incurred in connection with our Reincorporation by Merger in
Maryland and related regulatory filings.

Interest Expense

Interest expense increased approximately $82,474, from $84,221 in the
three-month period ended September 30, 2005 to $166,695 in the three-month
period ended September 30, 2006, or 97.9%. The increase was primarily related to
interest on the promissory notes and the increased borrowings under the mortgage
notes payable.

Comparison of Operations for the Nine-Month Period Ended September 30, 2006 to
the Nine-Month Period Ended September 30, 2005

The following summarizes changes in our operations for the nine-month periods
ended September 30, 2006 and 2005. Our net loss for the nine-month period ended
September 30, 2006, was $1,328,311 For the nine-month period ended September 30,
2005, we had a net loss of $35,587. The primary reason for this increase in our
net loss, was the increase in professional fees incurred in connection with the
Eternal Acquisition and the Reincorporation by Merger in Maryland, and related
regulatory filings.

Rental Revenue

Revenues decreased approximately $100,820, from $1,254,416 in the nine-month
period ended September 30, 2005 to $1,153,596 in the nine-month period ended
September 30, 2006, or approximately 8%, as a result of decreased occupancy
rates.

Property Operating Costs

Property operating costs increased approximately $195,951, from $544,669 in the
nine-month period ended September 30, 2005 to $740,620 in the nine-month period
ended September 30, 2006, or approximately 35.9%. The increase was primarily
related to increased costs for heat and other utilities.

General and Administrative

General and administrative expense increased approximately $530,882, from
$321,251 in the nine-month period ended September 30, 2005 to $852,133 in the
nine-month period ended September 30, 2006, or approximately 165.3%. The
decrease was due to increased professional fees incurred in connection with the
Eternal Acquisition and Reincorporation by Merger, and related regulatory
filings, offset by the reduction in the reserve of the related party receivable
with White Knight Management, LLC.

                                       31
<PAGE>

Interest Expense

Interest expense increased approximately $199,794 from $259,052 in the
nine-month period ended September 30, 2005 to $458,846 in the nine-month period
ended September 30, 2006, or 77.0%. The increase was primarily related to
interest on the promissory notes and the increased borrowings under the mortgage
notes payable.

Off Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are reasonably likely to
have a current or future effect on our financial condition, changes in financial
condition, revenues or expenses, results of operations, liquidity, capital
expenditures or capital resources that are material to investors.

Critical Accounting Policies

The discussion included in our Annual Report on Form 10-KSB for the year ended
December 31, 2005, under the subheading "Critical Accounting Policies and
Estimates", is still considered current and applicable. In addition:

In December 2005, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 155, "Accounting for
Certain Hybrid Financial Instruments - an amendment to FASB Statements No. 133
and 140" and in May 2005, the FASB issued SFAS No. 154 "Accounting and Error
Corrections - a replacement of APB Opinion No. 20 and FASB Statement No. 3." We
are not significantly impacted by these statements and do not expect their
implementation to have a material impact on our consolidated financial
statements.

SFAS No. 157, Fair Value Measurements, issued in September 2006, establishes a
formal framework for measuring fair value under GAAP. It defines and codifies
the many definitions of fair value included among various other authoritative
literature, clarifies and, in some instances, expands on the guidance for
implementing fair value measurements, and increases the level of disclosure
required for fair value measurements. Although SFAS No. 157 applies to and
amends the provisions of existing FASB and AICPA pronouncements, it does not, of
itself, require any new fair value measurements, nor does it establish valuation
standards. SFAS No. 157 applies to all other accounting pronouncements requiring
or permitting fair value measurements, except for; SFAS No. 123 (R), share-based
payment and related pronouncements, the practicability exceptions to fair value
determinations allowed by various other authoritative pronouncements, and AICPA
Statements of Position 97-2 and 98-9 that deal with software revenue
recognition. This statement is effective for financial statements issued for
fiscal years beginning after November 15, 2007, and interim periods within those
fiscal years.

Item 3.  Controls and Procedures.

The term "disclosure controls and procedures" is defined in Rules 13a-15(e) and
15d-15(e) of the Securities Exchange Act of 1934, or the Exchange Act. This term
refers to the controls and procedures of a company that are designed to ensure
that information required to be disclosed by a company in the reports that it
files or submits under the Exchange Act is recorded, processed, summarized and
reported within the time periods specified by the Securities and Exchange
Commission. The Sarbanes-Oxley Act also requires documentation of internal
control procedures, remediation as needed, and periodic testing of the controls.
These requirements are expected to apply to smaller public companies such as
ours, beginning in 2007.

In connection with the audit of our consolidated financial statements for the
year ended December 31, 2005, our management, including our principal executive
officer and principal financial officer, has evaluated the effectiveness of
disclosure controls and procedures as of the end of the period covered by this
report. Based upon that evaluation, our principal executive officer and
principal financial officer discovered a lack of effectiveness in our disclosure
controls and procedures during the years ended December 31, 2005 and 2004, and
for the subsequent period through the date hereof.

Our management intends to engage in remediation efforts to address the material
weaknesses identified in our disclosure controls and procedures. These
remediation efforts will be designed to address the material weaknesses
identified by management and to improve and strengthen our overall control
environment. The Company plans to:

        o       Establish procedures to improve its review of related party
                transactions and processing of non-accounting documentation;

        o       Keep its books and records and bank accounts separate from
                related parties;

        o       Hire certain staff members including a Chief Financial Officer,
                or person performing similar functions, to help develop and
                implement controls to ensure timely and accurate completion of
                accounting and reporting tasks;

                                       32
<PAGE>

        o       Document and improve controls over routine and systematic
                transactions;

        o       Aggressively seek candidates for independent directorships; and

        o       Develop controls related to the initiation and processing of
                non-routine and non-systematic transactions including those
                resulting from the adoption and implementation of new accounting
                pronouncements.

Our management, including our principal executive officer and principal
financial officer, does not expect that disclosure controls or internal controls
over financial reporting will prevent all errors, even as the aforementioned
remediation measures are implemented and further improved to address all
deficiencies. The design of any system of controls is based in part upon certain
assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving its stated goals under all potential
future conditions.

There were no changes to our internal control over financial reporting during
our last fiscal quarter that have materially affected, or are reasonably likely
to materially affect, our internal control over financial reporting.

                                       33
<PAGE>

                           PART II - OTHER INFORMATION


Item 1.  Legal Proceedings.

During the three-month period ended September 30, 2006, and subsequent period
through the date hereof, we were not a party to any pending legal proceedings.
To the knowledge of management, no federal, state or local governmental agency
is presently contemplating any proceeding against us. No director, executive
officer or affiliate of ours, or owner of record of more than 5% of our common
stock is a party adverse to us, or has a material interest adverse to us in any
legal proceeding.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.

In the three-month period ended September 30, 2006, and subsequent period
through the date hereof, we issued the following unregistered securities.

Equity Line

On August 29, 2006, we entered into an Investment Agreement with Dutchess
Private Equities Fund, L.P. (the "Investor"). Pursuant to this Agreement, the
Investor committed to purchase up to $25,000,000 of our common stock over the
course of thirty six (36) months. The amount that we shall be entitled to
request from each purchase ("Puts") shall be equal to, at our election, either
(i) $250,000 or (ii) 200% of the average daily volume (U.S. market only) of the
Common Stock for the 10 trading days prior to the applicable put notice date,
multiplied by the average of the 3 daily closing bid prices immediately
preceding the put date. The put date shall be the date that the Investor
receives a put notice of a draw down by us. The purchase price shall be set at
93% of the lowest closing Best Bid price of the Common stock during the pricing
period. The pricing period shall be the 5 consecutive trading days immediately
after the put notice date. There are put restrictions applied on days between
the put date and the closing date with respect to that particular Put. During
this time, the Company shall not be entitled to deliver another put notice.
Further, we shall reserve the right to withdraw that portion of the Put that is
below 90% of the lowest closing bid prices for the 10-trading day period
immediately preceding each put notice.

We are obligated to file a registration statement with the SEC covering the
shares of common stock underlying the Investment Agreement within 30 days after
the closing date. In addition, we are obligated to use all commercially
reasonable efforts to have the registration statement declared effective by the
SEC within 120 days after the filing of the registration statement.

We claim an exemption from the registration requirements of the Securities Act
of 1933, as amended (the "Act") for the private placement of these securities
pursuant to Section 4(2) of the Act and/or Rule 506 of Regulation D promulgated
thereunder since, among other things, the transaction does not involve a public
offering, the Investor is an "accredited investor" and/or qualified
institutional buyer, the Investor has access to information about our company
and its investment, the Investor will take the securities for investment and not
resale, and we are taking appropriate measures to restrict the transfer of the
securities.

Designation and Issuance of Series C Preferred Stock

On October 18, 2006, we issued 43,500 shares of our series C convertible
preferred stock, $0.01 par value per share (the "Preferred Shares"), to David
Mladen, our President and Chief Executive Officer, and a director of ours. The
Preferred Shares were issued to Mr. Mladen in consideration for his agreement to
waive $720,000 of liquidated damages due to him, for the period of July 1, 2006
through October 31, 2006, by virtue of our failure to satisfy certain of our
registration requirements. Each Preferred Share is convertible into one thousand

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<PAGE>

(1,000) shares of our Common Stock, at any time, and from time to time, for no
additional consideration. On October 24, 2006, Mr. Mladen converted the
Preferred Shares into 43,500,000 shares of our Common Stock.

We believe that this transaction is exempt from registration under the
Securities Act of 1933, as amended, pursuant to Section 4(2), or Regulation D
promulgated thereunder, as a transaction by an issuer not involving a public
offering.

Item 3.  Defaults Upon Senior Securities.

In the three-month period ended September 30, 2006, and subsequent period
through the date hereof, we did not default upon any senior securities.

Item 4.  Submission of Matters to a Vote of Security Holders.

No matters were submitted to a vote of our security holders during the
three-month period ended September 30, 2006, or subsequent period through the
date hereof, except that:

As of July 19, 2006, upon the recommendation of our board of directors, David
Mladen, our sole officer and director, and a holder of our Common Stock and
Series A Preferred Stock representing more than a majority of our voting power,
signed a written consent approving our reincorporation in the State of Maryland
(the "Reincorporation by Merger") by means of our merger with and into
Excellency Investment Realty Trust, Inc., our wholly-owned Maryland subsidiary
(the "Maryland Subsidiary"), which had been organized for that purpose.

On September 20, 2006, the Reincorporation by Merger became effective. As a
result of the Reincorporation by Merger, among other things:

        o       The surviving company and successor filer is known as Excellency
                Investment Realty Trust, Inc.;

        o       Each share of our issued and outstanding common stock and
                preferred stock was converted into one share of the Maryland
                Subsidiary's common stock and preferred stock, respectively;

        o       The title to all of our property automatically vested in the
                Maryland Subsidiary;

        o       The Maryland Subsidiary assumed all of our liabilities;

        o       Corporate actions of the surviving entity are now governed by
                the Maryland Corporations and Associations Law and by the
                Maryland Subsidiary's Articles of Amendment and Restatement of
                Articles of Incorporation and Bylaws;

        o       David Mladen, our sole officer and director, continued to serve
                as the sole officer and director of the surviving entity;

        o       The trading symbol for the surviving entity's common stock,
                which is quoted on the over-the-counter bulletin board of the
                National Association of Securities Dealers, was changed to
                "EIVR"; and

                                       35
<PAGE>

        o       The total number of shares of stock which the surviving entity
                is authorized to issue has increased to 201,000,000 shares, of
                which 200,000,000 shares are common stock, $0.01 par value per
                share and 1,000,000 are preferred stock, par value $0.01.

While the Reincorporation by Merger resulted in changes to our name and state of
incorporation, as well as the other changes listed above, it did not result in
any material changes to our business, management, assets, liabilities or net
worth.

Item 5.  Other Information.

Amendment to Series A Certificate of Designation

On July 12, 2006, we filed an Amended and Restated Certificate of Designation of
Series A Convertible Preferred Stock (the "Amended Certificate") with the
Secretary of State of the State of Oklahoma. Pursuant to the Amended
Certificate, the number of shares of our Common Stock into which each share of
our Series A Preferred Stock can convert was increased to one hundred
forty-three (143). In addition, since our Series A Preferred Stock and Common
Stock vote together as one class, with the holder of each share of Series A
Preferred Stock entitled to the number of votes equal to the number of shares of
Common Stock into which such shares of Series A Preferred Stock are convertible,
the holders of our Series A Preferred Stock are entitled to an aggregate of
1,573,000 votes.

Designation and Issuance of Series C Convertible Preferred Stock

On October 6, 2006, our Board of Directors approved the reclassification and
designation of 43,500 shares of our authorized preferred stock, $0.01 par value
per share, designated as series C convertible preferred stock ("Series C
Preferred Stock"). On October 11, 2006, we filed Articles Supplementary to the
our Articles of Amendment and Restatement of our Articles of Incorporation (the
"Articles Supplementary") with the State Department of Assessments and Taxation
of Maryland, reclassifying and designating the Series C Preferred Stock and
fixing the rights and preferences of such series. Pursuant to the Articles
Supplementary, the holders of our Series C Preferred Stock:

        o       shall be entitled to cast one thousand (1,000) votes per share
                of Series C Preferred Stock upon all matters submitted to a vote
                of the holders of our Common Stock;

        o       shall be entitled to receive dividends when and as declared by
                our Board of Directors; and

        o       shall be entitled to convert each of their shares of Series C
                Preferred Stock into one thousand (1,000) shares of our Common
                Stock, at any time, and from time to time, for no additional
                consideration.

The shares of Series C Preferred Stock:

        o       shall be not be reissued after they are reacquired by us by
                reason of repurchase or otherwise, and all such shares shall be
                returned to the status of undesignated shares of our Preferred
                Stock; and

        o       shall be adjusted in the event of stock splits, stock
                combinations, mergers, reorganizations, or other such events.

                                       36
<PAGE>

On October 18, 2006, we issued the 43,500 shares of Series C Preferred Stock
(the "Preferred Shares") to David Mladen, our President, Chief Executive Officer
and director. The Preferred Shares were issued to Mr. Mladen in consideration
for his agreement to waive $720,000 of liquidated damages due to him, for the
period of July 1, 2006 through October 31, 2006, by virtue of our failure to
satisfy certain of its registration requirements.

On October 24, 2006, Mr. Mladen converted the Preferred Shares into 43,500,000
shares of our Common Stock.


                                       37
<PAGE>

Item 6.  Exhibits.

Exhibit No.                 Description of Exhibit
-----------                 ----------------------

   2.1        Agreement and Plan of Merger between Gift Liquidators, Inc. and
              Excellency Investment Realty Trust, Inc., dated July 19, 2006
              (3)

   3.1        Articles of Amendment and Restatement of Articles of
              Incorporation of Excellency Investment Realty Trust, Inc. (3)

   3.2        Bylaws of Excellency Investment Realty Trust, Inc. (3)

   3.3        Certificate of Merger of Gift Liquidators, Inc. with and into
              Excellency Investment Realty Trust, Inc., filed with the
              Secretary of State of the State of Oklahoma on September 18,
              2006 (6)

   3.4        Articles of Merger of Gift Liquidators, Inc. with and into
              Excellency Investment Realty Trust, Inc., filed with the
              Maryland State Department of Assessments and Taxation on
              September 20, 2006 (6)

   4.1        Amended and Restated Certificate of Designation of Series A
              Preferred Stock (4)

   4.2        Articles Supplementary to the Articles of Amendment and
              Restatement of Articles of Incorporation, filed with the
              Maryland State Department of Assessments and Taxation October
              11, 2006 (7)

   10.1       Preferred Stock Purchase Agreement, between the Company and
              David Mladen, dated September 29, 2005 (1)

   10.2       Registration Rights Agreement, between the Company and David
              Mladen, dated September 29, 2005 (1)

   10.3       Asset Sale Agreement, between the Company and Laid Back
              Enterprises Inc., dated September 29, 2005 (1)

   10.4       Form of Contribution Agreement (2)

   10.5       Form of Limited Partnership Agreement (2)

   10.6       Investment Agreement, between the Company and Dutchess Private
              Equity Fund, L.P., dated August 29, 2006 (5)

   10.7       Registration Rights Agreement, between the Company and Dutchess
              Private Equity Fund, L.P., dated August 29, 2006 (5)

   31.1       Certification pursuant to Section 13a-14(a) (8)

   32.1       Certification pursuant to Section 1350 (8)

_____________________________
(1)  Incorporated by reference from our Current Report on Form 8-K, dated
     September 29, 2005
(2)  Incorporated by reference from our amended Current Report on Form 8-K/A,
     dated November 4, 2005
(3)  Incorporated by reference from our Quarterly Report on Form 10-QSB, for the
     period ended June 30, 2006.
(4)  Incorporated by reference from our Current Report on Form 8-K, dated July
     18, 2006
(5)  Incorporated by reference from our Current Report on Form 8-K, dated August
     29, 2006
(6)  Incorporated by reference from our Current Report on Form 8-K, dated
     September 20, 2006
(7)  Incorporated by reference from our Current Report on From 8-K, dated
     October 18, 2006
(8)  Filed herewith.

                                       38
<PAGE>

                                   SIGNATURES


         In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                     EXCELLENCY INVESTMENT REALTY TRUST, INC.



Date:  November 20, 2006             By:/s/ David Mladen
       -----------------                ----------------
                                            David Mladen
                                            Chief Executive Officer and Director
                                            (Principal Executive, Financial and
                                            Accounting Officer and Authorized
                                            Signatory)

                                       39
<PAGE>

                                  EXHIBIT INDEX
                                  -------------

Exhibit No.                 Description of Exhibit
-----------                 ----------------------

   2.1        Agreement and Plan of Merger between Gift Liquidators, Inc. and
              Excellency Investment Realty Trust, Inc., dated July 19, 2006
              (3)

   3.1        Articles of Amendment and Restatement of Articles of
              Incorporation of Excellency Investment Realty Trust, Inc. (3)

   3.2        Bylaws of Excellency Investment Realty Trust, Inc. (3)

   3.3        Certificate of Merger of Gift Liquidators, Inc. with and into
              Excellency Investment Realty Trust, Inc., filed with the
              Secretary of State of the State of Oklahoma on September 18,
              2006 (6)

   3.4        Articles of Merger of Gift Liquidators, Inc. with and into
              Excellency Investment Realty Trust, Inc., filed with the
              Maryland State Department of Assessments and Taxation on
              September 20, 2006 (6)

   4.1        Amended and Restated Certificate of Designation of Series A
              Preferred Stock (4)

   4.2        Articles Supplementary to the Articles of Amendment and
              Restatement of Articles of Incorporation, filed with the
              Maryland State Department of Assessments and Taxation October
              11, 2006 (7)

   10.1       Preferred Stock Purchase Agreement, between the Company and
              David Mladen, dated September 29, 2005 (1)

   10.2       Registration Rights Agreement, between the Company and David
              Mladen, dated September 29, 2005 (1)

   10.3       Asset Sale Agreement, between the Company and Laid Back
              Enterprises Inc., dated September 29, 2005 (1)

   10.4       Form of Contribution Agreement (2)

   10.5       Form of Limited Partnership Agreement (2)

   10.6       Investment Agreement, between the Company and Dutchess Private
              Equity Fund, L.P., dated August 29, 2006 (5)

   10.7       Registration Rights Agreement, between the Company and Dutchess
              Private Equity Fund, L.P., dated August 29, 2006 (5)

   31.1       Certification pursuant to Section 13a-14(a) (8)

   32.1       Certification pursuant to Section 1350 (8)

_____________________________
(1)  Incorporated by reference from our Current Report on Form 8-K, dated
     September 29, 2005
(2)  Incorporated by reference from our amended Current Report on Form 8-K/A,
     dated November 4, 2005
(3)  Incorporated by reference from our Quarterly Report on Form 10-QSB, for the
     period ended June 30, 2006.
(4)  Incorporated by reference from our Current Report on Form 8-K, dated July
     18, 2006
(5)  Incorporated by reference from our Current Report on Form 8-K, dated August
     29, 2006
(6)  Incorporated by reference from our Current Report on Form 8-K, dated
     September 20, 2006
(7)  Incorporated by reference from our Current Report on From 8-K, dated
     October 18, 2006
(8)  Filed herewith.

                                       40