SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549
                          ----------------------

                               FORM 10-QSB


    [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934

    For the quarterly period ended March 31, 2003

                         OR

    [ ]  Transition Report Pursuant to Section 13 or 15(d) of the Exchange
Act

    For the transition period from _______ to ________


    Commission File Number 0-4057

                              PORTSMOUTH SQUARE, INC.
                              -----------------------
        (Exact Name of Small Business Issuer as Specified in its Charter)

           California                               94-1674111
           ----------                               ----------
   (State or Other Jurisdiction of                 (IRS Employer
    Incorporation or Organization)                Identification No.)


           820 Moraga Drive
           Los Angeles, CA                               90049
---------------------------------------               ----------
(Address of Principal Executive Offices)              (Zip Code)

                                  (310) 889-2500
                                  --------------
                (Registrant's Telephone Number, Including Area Code)

   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, and (2)
has been subject to such filing requirements for the past 90 days. Yes (x)
No ( )

   State the number of shares outstanding of each of the issuer's classes of
Common equity, as of the latest practicable date: 734,183 shares of issuer's
No Par Value Common Stock were outstanding as of May 13, 2003.

   Transitional Small Business Disclosure Format (check one): Yes ( ) No (X)

<PAGE>



                                     INDEX

                             PORTSMOUTH SQUARE, INC.


PART I. FINANCIAL INFORMATION                                         PAGE
                                                                      ----
Item 1. Financial Statements

  Balance Sheet - March 31, 2003 (Unaudited)                           3

  Statements of Operations (Unaudited)- Three Months ended
    March 31, 2003 and March 31, 2002                                  4

  Statements of Operations (Unaudited)- Nine Months ended
    March 31, 2003 and March 31, 2002                                  5

  Statements of Cash Flows (Unaudited)- Nine Months ended
    March 31, 2003 and March 31, 2002                                  6

  Notes to Financial Statements                                        7

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations                           14

Item 3. Controls and Procedures                                       20


PART II. OTHER INFORMATION

Item 4.  Submission of Matters to a Vote of Shareholders.             20

Item 6. Exhibits and Reports on Form 8-K                              21

SIGNATURES                                                            21




                                    -2-

<PAGE>




                         PART 1 - FINANCIAL INFORMATION

Item 1 - Financial Statements

                             PORTSMOUTH SQUARE, INC.
                                 BALANCE SHEET
                                  (Unaudited)
As of March 31,                                               2003
                                                          ----------

Assets

  Cash and cash equivalents                              $   431,237
  Investment in marketable securities                      4,595,362
  Investment in Justice Investors                          1,220,510
  Other investments                                          100,000
  Deferred income tax asset                                1,114,261
  Other assets                                               325,689
                                                          ----------
Total assets                                             $ 7,787,059
                                                          ==========

Liabilities and Shareholders' Equity

Liabilities
  Obligations for securities sold                          1,755,490
  Accounts payable and other liabilities                     115,290
                                                          ----------
Total liabilities                                          1,870,780
                                                          ----------
Commitments and contingencies

Shareholders' equity:
  Common stock, no par value:
    Authorized shares - 750,000
    Issued and outstanding shares - 734,183                2,092,300
  Additional paid-in capital                                 915,676
  Retained earnings                                        2,908,303
                                                          ----------

Total shareholders' equity                                 5,916,279
                                                          ----------

Total liabilities and shareholders' equity               $ 7,787,059
                                                          ==========


See accompanying notes to financial statements.



                                    -3-
<PAGE>


                            PORTSMOUTH SQUARE, INC.

                           STATEMENTS OF OPERATIONS
                                  (Unaudited)


For the three months ended March 31,                  2003           2002
                                                  ----------     ----------
  Equity in net income of Justice
   Investors                                      $  361,142     $  371,462

  General and administrative expense                (124,808)      (122,660)
                                                  ----------     ----------
Non-operating income (expenses):
  Net losses on marketable securities               (600,531)      (573,134)
  Dividend and interest income                        34,728          7,350
  Margin interest and trading expenses               (32,852)       (31,638)
  Other income                                         8,855         35,293
                                                  ----------     ----------
                                                    (589,800)      (562,129)
                                                  ----------     ----------

Loss before income taxes                            (353,466)      (313,327)

Provision for income tax benefit                     142,552        153,764
                                                  ----------     ----------
Net loss                                         $  (210,914)   $  (159,563)
                                                  ==========     ==========

Basic loss per share                             $     (0.29)   $     (0.22)
                                                  ==========     ==========

Weighted average number of
  shares outstanding                                 734,183        734,183
                                                  ==========     ==========


See accompanying notes to financial statements.


                                    -4-

<PAGE>





                            PORTSMOUTH SQUARE, INC.

                           STATEMENTS OF OPERATIONS
                                  (Unaudited)


For the nine months ended March 31,                   2003           2002
                                                  ----------     ----------
  Equity in net income of Justice
   Investors                                     $ 1,231,873    $ 1,756,878

  General and administrative expense                (365,648)      (360,304)
                                                  ----------     ----------
Non-operating income (expenses):
  Net losses on marketable securities             (1,052,052)    (2,369,914)
  Dividend and interest income                        77,759         31,982
  Margin interest and trading expenses               (72,347)      (107,575)
  Other income                                        31,534         58,160
                                                  ----------     ----------
                                                  (1,015,106)    (2,387,347)
                                                  ----------     ----------

Loss before income taxes                            (148,881)      (990,773)

Provision for income tax benefit                      59,552        395,764
                                                   ----------     ----------
Net loss                                         $   (89,329)   $  (595,009)
                                                  ==========     ==========

Basic loss per share                             $     (0.12)   $     (0.81)
                                                  ==========     ==========

Weighted average number of
  shares outstanding                                 734,183        734,183
                                                  ==========     ==========



See accompanying notes to financial statements.


                                    -5-

<PAGE>




                            PORTSMOUTH SQUARE, INC.
                           STATEMENTS OF CASH FLOWS
                                 (Unaudited)


For the nine months ended March 31,                   2003           2002
                                                  ----------     ----------
Cash flows from operating activities:
  Net loss                                       $   (89,329)  $   (595,009)
  Adjustments to reconcile net loss
   to net cash used in operating activities:
    Equity in net income of Justice Investors     (1,231,873)    (1,756,878)
    Net unrealized (gains) losses on
     marketable securities                          (839,092)       521,490
    Changes in assets and liabilities:
      Investment in marketable securities         (1,317,554)    (1,855,176)
      Deferred income taxes and other assets        (373,307)      (244,948)
      Accounts payable and other liabilities          38,496     (1,170,258)
      Due to securities broker                             -      4,203,266
      Obligations for securities sold              1,633,130     (1,351,098)
                                                  ----------     ----------
  Net cash used by operating activities           (2,179,529)    (2,248,611)
                                                  ----------     ----------

Cash flows from investing activities:
  Cash distributions from Justice Investors        1,497,586      2,719,080
                                                  ----------     ----------
  Net cash provided by investing activities        1,497,586      2,719,080
                                                  ----------     ----------

Cash flows from financing activities:
  Dividends paid                                    (367,091)      (367,091)
                                                  ----------     ----------
  Net cash used in financing activities             (367,091)      (367,091)
                                                  ----------     ----------
Net (decrease)increase in cash and
  cash equivalents                                (1,049,034)       103,378

Cash and cash equivalents at the beginning
  of the period                                    1,480,271        108,870
                                                  ----------     ----------
Cash and cash equivalents at the end of the
 period                                          $   431,237    $   212,248
                                                  ==========     ==========


See accompanying notes to financial statements.


                                    -6-

<PAGE>


                      PORTSMOUTH SQUARE, INC.

                   NOTES TO FINANCIAL STATEMENTS

1.  Basis of Presentation and Significant Accounting Policies
    ---------------------------------------------------------

The financial statements included herein have been prepared by Portsmouth
Square, Inc. ("Portsmouth" or the "Company"), without audit, according to the
rules and regulations of the Securities and Exchange Commission.  Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes the disclosures that are made are
adequate to make the information presented not misleading.  Further, the
financial statements reflect, in the opinion of management, all adjustments
(which included only normal recurring adjustments) necessary to state fairly
the financial position and results of operations as of and for the periods
indicated.

In November 2002, The Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 45 ("FIN 45"), Guarantor s Accounting and Disclosure
requirements for Guarantees, Including Indirect Guarantees of Indebtedness of
Others (FIN 45), which requires elaborating on the disclosures that must be
made by a guarantor in its financial statements about its obligations under
certain guarantees. It also requires that a guarantor recognize, at the
inception of certain types of guarantees, a liability for the fair value of
the obligation undertaken in issuing the guarantee. The disclosure
requirements of FIN 45 were required at December 31, 2002 and the recognition
requirements of FIN 45 are applicable for guarantees issued or modified after
December 31, 2002.  Management does not believe FIN 45 will have a material
impact on the Company's financial statements.

In January 2003, The Financial Accounting Standards Board (FASB) issued FASB
Interpretation No. 46 ("FIN 46"), "Consolidation of Variable Interest
Entities, an Interpretation of ARB No. 51." FIN 46 requires certain variable
interest entities to be consolidated by the primary beneficiary of the entity
if the equity investors in the entity do not have the characteristics of a
controlling financial interest or do not have sufficient equity at risk for
the entity to finance its activities without additional subordinated
financial support from other parties. FIN 46 is effective for all new
variable interest entities created or acquired after January 31, 2003. For
variable interest entities created or acquired prior to February 1, 2003, the
provisions of FIN 46 must be applied for the first interim or annual period
beginning after June 15, 2003.  Management does not believe FIN 46 will have
a material impact on the Company's financial statements.

FIN 46 defines variable interest entities as a corporation, partnership,
trusts, or any other legal structure used for business purposes that either
(a) does not have equity investors with voting rights or (b) has equity
investors that do not provide sufficient financial resources for the entity
to support its activities. A variable interest entity often holds financial
assets, including loans or receivables, real estate or other property. A
variable interest entity may be essentially passive or it may engage in
research and development or other activities on behalf of another company.

                                    -7-
<PAGE>

In December 2002, The Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (FAS) No. 148, Accounting for
Stock-Based Compensation -- Transition and Disclosure, which amends FAS 123,
Accounting for Stock-Based Compensation. In response to a growing number of
companies announcing plans to record expenses for the fair value of stock
options, FAS 148 provides alternative methods of transition for a voluntary
change to the fair value based method of accounting for stock-based employee
compensation. In addition, FAS 148 amends the disclosure requirements of FAS
123 to require more prominent and more frequent disclosures in financial
statements about the effects of stock-based compensation. FAS 148 is not
applicable to the Company.

In April 2003, The Financial Accounting Standards Board (FASB) issued FASB
Statement No. 149, Amendment of Statement 133 on Derivative Instruments and
Hedging Activities (FAS 149).  FAS 149 amends and clarifies accounting for
derivative instruments, including certain derivative instruments embedded in
other contracts, and for hedging activities under FAS 133. The new guidance
amends FAS 133 for decisions made: (a) as part of the Derivatives
Implementation Group process that effectively required amendments to FAS 133,
(b) in connection with other Board projects dealing with financial
instruments, and (c) regarding implementation issues raised in relation to
the application of the definition of a derivative, particularly regarding the
meaning of an "underlying" and the characteristics of a derivative that
contains financing components. The amendments set forth in FAS 149 improve
financial reporting by requiring that contracts with comparable
characteristics be accounted for similarly. FAS 149 is generally effective
for contracts entered into or modified after June 30, 2003 (with a few
exceptions) and for hedging relationships designated after June 30, 2003. The
guidance is to be applied prospectively.  Management does not believe FAS 149
will have a material impact on the Company's financial statements.

It is suggested that these financial statements be read in conjunction with
the audited financial statements and the notes therein included in the
Company's Form 10-KSB for the year ended June 30, 2002.

The results of operations for the three and nine months ended March 31, 2003
are not necessarily indicative of results to be expected for the full fiscal
year ending June 30, 2003.


2.  Investment in Justice Investors
    -------------------------------

The Company's principal source of revenue is derived from its 49.8% interest
in Justice Investors, a California limited partnership ("Justice Investors"),
in which the Company serves as one of the two general partners.  The other
general partner, Evon Garage Corporation ("Evon"), serves as the managing
general partner.  As a general and limited partner, Portsmouth has
significant control over the management and operation of the assets of
Justice Investors.  All significant partnership decisions require the active
participation and approval of both general partners.  The Company and Evon
jointly consult and determine the amount of partnership reserves and the
amount of cash to be distributed to the limited partners.

                                    -8-
<PAGE>

The partnership derives most of its income from a lease of its San Francisco,
California hotel property to Felcor Lodging Trust, Inc. ("Felcor") and from a
lease of the garage portion of the property to Evon.  As a general partner,
the Company is active in monitoring and overseeing the operations of the
hotel and parking garage.  The Company also derives revenue from management
fees for actively managing the hotel.  Investment in Justice Investors is
recorded on the equity basis.

Pursuant to the terms of the partnership agreement, voting rights of the
partners are determined according to the partners' entitlement to share in
the net profit and loss of the partnership.  The Company is not entitled to
any additional voting rights by virtue of its position as a general partner.
The partnership agreement also provides that no portion of the partnership
real property can be sold without the written consent of the general and
limited partners entitled to more than 72% of the net profit.

The compensation agreement for the general partners of Justice Investors
provides that the general partners are entitled to receive compensation equal
to 3% of the annual gross rents of the partnership.  From the first $150,000
of compensation payable to the general partners, $120,000 is payable to Evon
Garage Corporation and $30,000 is payable to Portsmouth as the other general
partner.  Any compensation in excess of the $150,000 is to be split 50/50
between the general partners.  The partnership makes monthly advances of
$10,000 to Evon and $2,500 to Portsmouth with any balance adjusted at the end
of the year based on annual gross revenues.  For the three and nine months
ended March 31, 2003, the Company received $7,500 and $22,500, respectively,
in management fees from Justice Investors.

The Company reviews its long-lived assets and other investments for
impairment when circumstances indicate that a potential loss in carrying
value may have occurred.  For the Company's investment in Justice, to the
extent that projected future undiscounted cash flows from the operation of
the Company's hotel property are less than the carrying value of the asset,
the carrying value of the asset is reduced to its fair value.  For other
investments, the Company reviews the investment's operating results,
financial position and other relevant factors to determine whether the
estimated fair value of the asset is less than the carrying value of the
asset.

Condensed financial statements for Justice Investors are as follows:

                            JUSTICE INVESTORS
                         CONDENSED BALANCE SHEET

As of March 31,                                                2003
                                                            ----------
Assets
Total current assets                                       $   128,542
Property, plant and equipment, net of
  accumulated depreciation of $12,512,052                    5,660,150
Loan fees and deferred lease costs,
  net of accumulated amortization of $249,081                   61,331
                                                            ----------
    Total assets                                           $ 5,850,023
                                                            ==========

                                    -9-
<PAGE>

Liabilities and partners' capital
Total current liabilities                                  $   174,135
Long term debt                                               2,182,202
Partners' capital                                            3,493,686
                                                            ----------
    Total liabilities and partners' capital                $ 5,850,023
                                                            ==========


                                JUSTICE INVESTORS
                        CONDENSED STATEMENTS OF OPERATIONS

For the three months ended March 31,           2003            2002
                                            ----------      ----------
Revenues                                   $   938,564     $   949,992
Costs and expenses                            (213,379)       (204,084)
                                            ----------      ----------
Net income                                 $   725,185     $   745,908
                                            ==========      ==========


For the nine months ended March 31,            2003            2002
                                            ----------      ----------
Revenues                                   $ 3,031,632     $ 4,173,176
Costs and expenses                            (557,989)       (645,308)
                                            ----------      ----------
Net income                                 $ 2,473,643     $ 3,527,868
                                            ==========      ==========


3.  Investment in Marketable Securities
-----------------------------------

The Company's investment in marketable securities consists primarily of
corporate equities. The Company has also invested in corporate bonds and
income producing securities, which may include interests in real estate based
companies, where financial benefit could inure to its shareholders through
income and/or capital gain.

The Company also invests, with the approval of the Securities Investment
Committee, in unlisted companies, through private placements.  These
investments in non-marketable securities are carried at cost on the Company's
balance sheet as part of other investments and are reviewed for impairment on
a periodic basis. As of March 31, 2003, the Company had investments in
unlisted companies (other investments) of $200,000 with a reserve on loss on
other investments totaling $100,000.  The investment is shown net against the
reserve and is disclosed on the balance sheet as other investments.

Other investments are reviewed on a periodic basis based on a review of the
most recent financial statements of the unlisted company.  Factors such as
revenue, cash flows and financial position and other information pertaining
to the company are reviewed and evaluated to determine the viability of the
business and its future potential.  If the unlisted company's future is
considered uncertain based on the review and evaluation, a reserve is taken
against the investment.

                                    -10-
<PAGE>

The Company's marketable securities portfolio as of March 31, 2003 is
composed of following types of securities:

                                                        % of Total
                                    Market Value         Portfolio
                                    ------------         ---------
  Corporate bonds                   $    50,000              1.1%
  Common stocks                       4,545,362             98.9%
                                     ----------           -------

Total marketable securities         $ 4,595,362            100.0%
                                     ==========           =======


The following table shows the composition of the Company's marketable
securities portfolio by selected industry groups as of March 31, 2003.

                                                             % of Total
                                                              Investment
   Industry Group                      Market Value           Securities
   --------------                      ------------           ----------
   Electric, pipelines, oil and gas    $ 1,556,588               33.9%
   Telecommunications                    1,268,853               27.6%
   Semiconductor, software, internet,
    and computer                           564,301               12.3%
   Media and entertainment                 309,750                6.7%
   Chemicals, materials, metals,
    and mining                             249,834                5.4%
   Airlines and defense                    209,984                4.6%
   Other                                   436,052                9.5%
                                        ----------              ------
                                       $ 4,595,362              100.0%
                                        ==========              ======

As part of the investment strategies, the Company may assume short positions
in marketable securities.  Short sales are used by the Company to potentially
offset normal market risks undertaken in the course of its investing
activities or to provide additional return opportunities.  The Company has no
naked short positions.  As of March 31, 2003, the Company had obligations for
securities sold (equities short) of $1,755,490.

Marketable securities are stated at market value as determined by the most
recently traded price of each security at the balance sheet date.  Marketable
securities are classified as trading with net unrealized gains or losses
included in earnings.

Included in the net losses on marketable securities of $600,531 for the three
months ended March 31, 2003 are net unrealized gains of $62,004 and net
realized losses of $662,535. Included in the net losses on marketable
securities of $573,134 for the three months ended March 31, 2002 are net
unrealized gains of $240,977 and net realized losses of $814,111.

                                    -11-
<PAGE>

Included in the net losses on marketable securities of $1,052,052 for the
nine months ended March 31, 2003 are net unrealized gains of $839,092 and net
realized losses of $1,891,144. Included in the net losses on marketable
securities of $2,369,914 for the nine months ended March 31, 2002 are net
unrealized losses of $521,490 and net realized losses of $1,848,424.
4.  Income taxes
    ------------
As of March 31, 2003, the Company has a deferred tax asset $1,114,261 which
is comprised of net capital loss carryforwards that expire in varying amounts
through 2008.  Historically, the Company has generated income over the years
from its equity in net income from Justice Investors and from other income
and has had to pay significant taxes relating to that income.  The Company's
investment portfolio is also continuing to improve and is expected to
generate capital gains.  As a result, the Company determined that its
deferred tax asset will likely be offset against future income and that a
valuation allowance is not necessary.


5.  Segment Information
    --------------------
The Company operates in two reportable segments, the operation of Justice
Investors and the investment of its cash and securities assets. These two
operating segments, as presented in the financial statements, reflect how
management internally reviews each segment's performance.  Management also
makes operational and strategic decisions based on this same information.


Information below represents reporting segments for the three and nine months
ended March 31, 2003 and the three and nine months ended March 31, 2002.
Operating income from Justice Investors consists of the operations of the
hotel and garage included in the equity in net income of Justice Investors.
Operating income (losses) for investment transactions consist of net
investment gains (losses) and dividend and interest income.

<TABLE>

Three months ended             Justice    Investment
March 31, 2003                Investors  Transactions      Other          Total
                            -----------  ------------   -----------   ------------
<S>                         <C>           <C>           <C>          <C>
Operating income(loss)      $   361,142   $  (565,803)            -  $    (204,661)
Operating expenses                    -       (32,852)            -        (32,852)
                            -----------   -----------   -----------   ------------
Net operating income(loss)      361,142      (598,655)            -       (237,513)

General and administrative
  expenses                            -             -      (124,808)      (124,808)
Other income                          -             -         8,855          8,855
Income tax benefit                    -             -       142,552        142,552
                            -----------   -----------   -----------   ------------
Net income(loss)            $   361,142   $  (598,655)  $    26,599   $   (210,914)
                            ===========   ===========   ===========   ============
Total Assets                $ 1,220,510   $ 4,695,362   $ 1,871,187   $  7,787,059
                            ===========   ===========   ===========   ============
</TABLE>
                                    -12-
<PAGE>

<TABLE>
Three months ended            Justice      Investment
March 31, 2002               Investors    Transactions     Other          Total
                            -----------   -----------   -----------   ------------
<S>                         <C>           <C>           <C>           <C>
Operating income (loss)     $   371,462   $  (565,784)  $         -   $   (194,322)
Operating expenses                    -       (31,638)            -        (31,638)
                            -----------   -----------   -----------   ------------
Net operating income(loss)      371,462      (597,422)            -       (225,960)
                            -----------   -----------   -----------   ------------
General and administrative
  expenses                            -             -      (122,660)      (122,660)
Other income                          -             -        35,293         35,293
Income tax benefit                    -             -       153,764        153,764
                            -----------   -----------   -----------   ------------
Net income(loss)            $   371,462   $  (597,422)  $    66,397   $   (159,563)
                            ===========   ===========   ===========   ============
Total Assets                $ 1,627,029   $10,332,714   $   581,082   $ 12,540,825
                            ===========   ===========   ===========   ============
</TABLE>
<TABLE>

Nine months ended             Justice     Investment
March 31, 2003               Investors   Transactions      Other          Total
                            -----------  ------------   -----------   ------------
<S>                         <C>           <C>           <C>           <C>
Operating income(loss)      $ 1,231,873   $  (974,293)  $         -   $    257,580
Operating expenses                    -       (72,347)            -        (72,347)
                            -----------   -----------   -----------   ------------
Net operating
 income(loss)                 1,231,873    (1,046,640)            -        185,233

General and administrative
  expenses                            -             -      (365,648)      (365,648)
Other income                          -             -        31,534         31,534
Income tax benefit                    -             -        59,552         59,552
                            -----------   -----------   -----------   ------------
Net income(loss)            $ 1,231,873   $(1,046,640)  $  (274,562)  $    (89,329)
                            ===========   ===========   ===========   ============
Total Assets                $ 1,220,510   $ 4,695,362   $ 1,871,187   $  7,787,059
                            ===========   ===========   ===========   ============
</TABLE>
<TABLE>
Nine months ended             Justice      Investment
March 31, 2002               Investors    Transactions     Other          Total
                            -----------   -----------   -----------   ------------
<S>                         <C>           <C>           <C>           <C>
Operating income(loss)      $ 1,756,878   $(2,337,932)  $         -   $   (581,054)
Operating expenses                    -      (107,575)            -       (107,575)
                            -----------   -----------   -----------   ------------
Net operating income(loss)    1,756,878    (2,445,507)            -       (688,629)
                            -----------   -----------   -----------   ------------
General and administrative
  expenses                            -             -      (360,304)      (360,304)
Other income                          -             -        58,160         58,160
Income tax benefit                    -             -       395,764        395,764
                            -----------   -----------   -----------   ------------
Net income (loss)           $ 1,756,878   $(2,445,507)  $    93,620   $   (595,009)
                            ===========   ===========   ===========   ============
Total Assets                $ 1,627,029   $10,332,714   $   581,082   $ 12,540,825
                            ===========   ===========   ===========   ============
</Table>
                                    -13-
<PAGE>

6.  Related Party Transactions
    --------------------------

Certain shared costs and expenses, primarily administrative salaries, rent
and insurance are allocated among the Company, the Company's parent, Santa Fe
Financial Corporation ("Santa Fe"), and The InterGroup Corporation
("InterGroup"), parent of Santa Fe, based on management's estimate of the pro
rata utilization of resources.  For the three and nine months ended March 31,
2003, these expenses were approximately $25,054 and $68,378.  Four of the
Company's Directors serve as directors of InterGroup and three of the
Company's Directors serve on the Board of Santa Fe.

John V. Winfield serves as Chief Executive Officer and Chairman of the
Company, Santa Fe, and InterGroup.  Depending on certain market conditions
and various risk factors, the Chief Executive Officer, his family, Santa Fe
and InterGroup may, at times, invest in the same companies in which the
Company invests.  The Company encourages such investments because it places
personal resources of the Chief Executive Officer and his family members, and
the resources of Santa Fe and InterGroup, at risk in connection with
investment decisions made on behalf of the Company.



Item 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
         AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS AND PROJECTIONS

The Company may from time to time make forward-looking statements and
projections concerning future expectations.  When used in this discussion,
the words "estimate," "project," "anticipate" and similar expressions, are
intended to identify forward-looking statements.  Such statements are subject
to certain risks and uncertainties, such as the impact of terrorism and war
on the national and international economies, including tourism and securities
markets, general economic conditions and increased competition in the hotel
industry in the San Francisco area, partnership distributions, securities
markets, litigation and other factors, including natural disasters, and those
discussed below and in the Company's Form 10-KSB for the year ended June 30,
2002, that could cause actual results to differ materially from those
projected.  Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as to the date hereof.  The
Company undertakes no obligation to publicly release the results of any
revisions to those forward-looking statements, which may be made to reflect
events or circumstances after the date hereof or to reflect the occurrence of
unanticipated events.


                                    -14-
<PAGE>


RESULTS OF OPERATIONS

The Company's principal sources of revenue continue to be derived from its
49.8% interest in the Justice Investors limited partnership and income
received from the investment of its cash and securities assets.  The
partnership derives most of its income from a lease of its hotel property to
Felcor and from a lease of the garage portion of the property to Evon.  The
Company also derives revenue from management fees for actively managing the
hotel.


Three Months Ended March 31, 2003 Compared to Three Months
Ended March 31, 2002

The Company's net loss increased to $210,914 for the three months ended March
31, 2003 from a net loss of $159,563 for the three months ended March 31,
2002.  This was primarily due to the increase in net losses on marketable
securities, a decrease in other income, a decrease in equity in net income of
Justice Investors, offset by an increase in dividend and interest income.

The equity in net income of Justice Investors did not change significantly.
The recovery of the tourism and the hospitality industry has been especially
slow in San Francisco due to the continued weak economy in the Bay Area.  In
addition, the hotel has faced increased competition from new properties and
from higher end properties that have cut room rates in an effort to keep
their share of a declining market. For the three months ended March 31, 2003,
average daily room rates decreased 15% to $93 from $109 in the prior year's
quarter, while average occupancy increased 19% to 57% from 48% in the prior
year's quarter.

Net losses on marketable securities increased to $600,531 for the three
months ended March 31, 2003 from $573,134 for the three months ended March
31, 2002. For the three months ended March 31, 2003, the Company had net
unrealized gains of $62,004 and net realized losses of $662,535.  Gains and
losses on marketable securities may fluctuate significantly from period to
period in the future and could have a significant impact on the Company's net
income.  However, the amount of gain or loss on marketable securities for any
given period may have no predictive value and variations in amount from
period to period may have no analytical value. For a more detailed
description of the composition of the Company's marketable securities please
see the Marketable Securities section below.

Dividend and interest income increased to $34,728 from $7,350 as a result of
the increased investment dividend yielding securities.

Other income decreased to $8,855 from $35,293 primarily due to additional
general partner management fees in the amount of $23,381 received by the
Company during the quarter ended March 31, 2002 from Justice Investors. The
higher fees received in the quarter ended March 31, 2002 were attributable to
higher hotel revenues in the partnership's 2002 calendar year.

                                    -15-
<PAGE>



Nine Months Ended March 31, 2003 Compared to Nine Months
Ended March 31, 2002

The Company's net loss decreased to $89,329 for the nine months ended March
31, 2003 from a net loss of $595,009 for the nine months ended March 31,
2002.  The decrease was primarily due to the decrease in net losses on
marketable securities, an increase in dividend and interest income offset by
the decrease in equity income from Justice Investors and a decrease in other
income.

The decrease in equity in net income of Justice Investors to $1,231,873 for
the nine months ended March 31, 2003 from $1,756,878 for the nine months
ended March 31, 2002 is primarily attributable to the inclusion of
approximately $300,000 in equity in net income of Justice Investors from an
arbitration settlement payment from the hotel leasee during the period ended
March 31, 2002 and to a decline in hotel revenues.  The terrorist attacks of
September 11, 2001, had a devastating effect on tourism and the hospitality
industry, especially in San Francisco where recovery has been especially slow
due to the weak economy in the Bay Area.  In addition, the hotel has faced
increased competition from new properties and from higher end properties that
have cut room rates in an effort to keep their share of a declining market.
For the nine months ended March 31, 2003, average daily room rates decreased
21% to $92 from $116 for the nine months ended March 31, 2002, while average
occupancy increased 8% to 66% from 61%.

Net losses on marketable securities decreased to $1,052,052 for the nine
months ended March 31, 2003 from $2,369,914 for the nine months ended March
31, 2002. For the nine months ended March 31, 2003, the Company had net
unrealized gains of $839,092 and net realized losses of $1,891,144.  Gains
and losses on marketable securities may fluctuate significantly from period
to period in the future and could have a significant impact on the Company's
net income.  However, the amount of gain or loss on marketable securities for
any given period may have no predictive value and variations in amount from
period to period may have no analytical value. For a more detailed
description of the composition of the Company's marketable securities please
see the Marketable Securities section below.

Dividend and interest income increased to $77,759 from $31,982 as a result of
the increased investment dividend yielding securities.

Margin interest and trading expenses decreased to $72,347 from $107,575
primarily due to the termination of the third party investment manager in
November 2001 and as the result of maintaining lower margin balances.

Other income decreased to $31,534 from $58,160 primarily due to additional
general partner management fees in the amount of $23,381 received by the
Company during the quarter ended March 31, 2002 from Justice Investors.  The
higher fees received in the quarter ended March 31, 2002 were attributable to
higher hotel revenues in the partnership's 2002 calendar year.

Income tax benefit decreased to $59,552 from $395,794 due to a lower loss
incurred in the current period.


                                    -16-
<PAGE>


MARKETABLE SECURITIES

The Company invests in corporate debt and equity securities.  The following
table sets forth the composition of the Company's investment in marketable
securities as of March 31, 2003.

The Company's marketable securities portfolio as of March 31, 2003 is
composed of following types of securities:

                                                        % of Total
                                    Market Value         Portfolio
                                    ------------         ---------
  Corporate bonds                   $    50,000              1.1%
  Common stocks                       4,545,362             98.9%

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

Total marketable securities         $ 4,595,362            100.0%
                                     ==========           =======


The following table shows the composition of the Company's marketable
securities portfolio by selected industry groups as of March 31, 2003.

                                                             % of Total
                                                              Investment
   Industry Group                      Market Value           Securities
   --------------                      ------------           ----------
   Electric, pipelines, oil and gas    $ 1,556,588               33.9%
   Telecommunications                    1,268,853               27.6%
   Semiconductor, software, internet,
    and computer                           564,301               12.3%
   Media and entertainment                 309,750                6.7%
   Chemicals, materials, metals,
    and mining                             249,834                5.4%
   Airlines and defense                    209,984                4.6%
   Other                                   436,052                9.5%
                                        ----------              ------
                                       $ 4,595,362              100.0%
                                        ==========              ======


The Company's investment portfolio is diversified with 73 different equity
positions.  Only three individual equity securities comprise more than 5% of
the equity value of the portfolio, with the largest being 13.9%. The amount
of the Company's investment in any particular issuer may increase or
decrease, and additions or deletions to its securities portfolio may occur,
at any time.  While it is the internal policy of the Company to limit its
initial investment in any single equity to less than 5% of its total
portfolio value, that investment could eventually exceed 5% as a result of
equity appreciation or reduction of other positions.  Marketable securities
are stated at market value as determined by the most recently traded price of
each security at the balance sheet date.


                                    -17-
<PAGE>
LIQUIDITY AND SOURCES OF CAPITAL

The Company's cash flows are primarily generated through its general and
limited partnership interest in the Justice Investors limited partnership,
which derives its income from its lease with Felcor and a lease with Evon. In
addition to its monthly limited partnership distributions from Justice
Investors, the Company also receives monthly management fees as a general
partner.  The Company also derives revenue from the investment of its cash
and securities assets.

As a result of the significant decline in partnership revenues due to the
slowdown in the San Francisco area economy, increased competition and the
continuing impact that the terrorist attacks of September 11, 2001 and the
uncertain geopolitical situation have had on tourism and the hospitality
industry, Justice Investors cut the monthly distribution to its limited
partners by 20%, effective with the May 2002 distribution.  As a result,
Portsmouth's monthly distribution was reduced by $41,832 to $167,328.
Justice Investors also eliminated its special year-end partnership
distribution in December 2002.  Effective March 2003, a further reduction of
5% in partnership distributions was made, which decreased Portsmouth's
monthly distribution to $158,962.  The limited partners have been further
advised that, if hotel revenues do not meet budget projections, further cuts
in the monthly distributions may have to be made in the future.  The general
partners will continue to review and analyze the operations of the hotel to
determine an appropriate monthly distribution.  For the nine months ended
March 31, 2003 the Company received cash distributions of $1,497,586 from the
Justice Investors.

Portsmouth does not consider Felcor and Evon, the two significant lessees, to
be a credit risk.  Evon has been the garage lessee since the property became
operational and has never missed a rent payment in over thirty years of
operations. The garage is subleased by Evon to Ampco Parking, a major parking
garage operating company.  Felcor Lodging Trust, Inc. ("Felcor") is a public
company listed on the New York Stock Exchange and is one of the largest real
estate investment trusts in the United States. Portsmouth monitors Felcor's
public filings on a regular basis.  The hotel lease provides for significant
minimum annual rent of $2,500,000.  There is no indication that Felcor will
not be able to meet its rental obligations in the future.  The Company's
accounting policy for assessing and measuring impairment of the Company's
investment in Justice is to review all recent sales of hotels in the San
Francisco area and compare them to the Hotel owned by Justice.  Management
also reviews the monthly and quarterly performance of the hotel (occupancy
levels, average room rate, parking revenues, etc.,) to determine impairment.
As of March 31, 2003, no impairment write down is considered necessary.

The Company has invested in short-term, income-producing instruments and in
equity and debt securities when deemed appropriate.  The Company's marketable
securities are classified as trading with unrealized gains and losses
recorded through the statement of operations.

In July 2002, Justice Investors entered into a lease with Tru Spa, LLC, which
was amended effective January 1, 2003.  The lease premises consist of
approximately 5,400 square feet of space on the lobby level of the hotel for
the construction and operation of a health and beauty spa.  The term of the

                                    -18-
<PAGE>


lease is for ten years commencing on May 1, 2003 or as soon as all of the
improvements are completed, with a five year option to extend the term.  The
amended lease provides for minimum monthly rent of $11,925, additional rent
of $2,072 (up to a total of $250,000 to help defray certain relocation
construction costs) and other tenant fees.  Justice will be responsible for
up to $1,497,586 in leasehold improvements, which will be paid using the
partnership's line of credit.  It is expected that the spa lease will be
essentially revenue neutral to the partnership, but should help the hotel to
be more competitive in a difficult marketplace by providing greater amenities
to its guests.

The hotel industry in San Francisco was particularly hard hit by the impact
that the terrorist attacks had on tourism and the hospitality industry in
general.  The impact of those attacks, coupled with the uncertain
geopolitical situation, the slow down in the Bay Area economy and increased
competition have made for a very challenging environment.  Because of this,
the economic recovery in the Bay Area has lagged behind that of many other
cities.  Although the Company has suffered a significant decline in revenues
as a result of those events, management believes that the net cash flow
generated from future operating activities and its capital resources will be
adequate to meet its current and future obligations.

The Company has no off balance sheet arrangements.  The Company also does not
have any material contractual obligations or commercial commitments.

IMPACT OF INFLATION

Hotel room rates are typically impacted by supply and demand factors, not
inflation, since rental of a hotel room is usually for a limited number of
nights.  Room rates can be, and usually are, adjusted to account for
inflationary cost increases.  To the extent that the hotel lessee is able to
adjust room rates, there should be minimal impact on partnership revenues due
to inflation.  Partnership revenues are also subject to interest rate risks,
which may be influenced by inflation.  For the two most recent fiscal years,
the impact of inflation on the Company's income is not viewed by management
as material.


CRITICAL ACCOUNTING POLICIES

The Company reviews its long-lived assets and other investments for
impairment when circumstances indicate that a potential loss in carrying
value may have occurred.  For the Company's investment in Justice, to the
extent that projected future undiscounted cash flows from the operation of
the Company's hotel property are less than the carrying value of the asset,
the carrying value of the asset is reduced to its fair value.  For other
investments, the Company reviews the investment's operating results,
financial position and other relevant factors to determine whether the
estimated fair value of the asset is less than the carrying value of the
asset.

Marketable securities are stated at market value as determined by the most
recently traded price of each security at the balance sheet date.  Marketable
securities are classified as trading with net unrealized gains or losses
included in earnings.

                                    -19-
<PAGE>

Item 3. Controls and Procedures

(a) Evaluation of disclosure controls and procedures.

The management of the Company, including the Chief Executive Officer and the
Treasurer (serving as Chief Financial Officer), have conducted an evaluation
of the effectiveness of the Company's disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) as of a date within 90 days
prior to the filing of this Quarterly Report on Form 10-QSB (the "Evaluation
Date").  Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that, as of the Valuation Date, the Company's
disclosure controls and procedures are effective in timely alerting them to
material information relating to the Company required to be included in the
Company's periodic SEC filings.

(b) Changes in internal controls.

Subsequent to the date of the evaluation, there have been no significant
changes in the Company's internal controls or in other factors that could
significantly affect internal controls, nor were there any corrective actions
required with regard to significant deficiencies and material weaknesses.


                      PART II.    OTHER INFORMATION


Item 4.  Submission of Matters to a Vote of Shareholders.

The Annual Meeting of the Shareholders of the Company was held on February
27, 2003 at the Luxe Summit Hotel Bel-Air, 11461 Sunset Blvd., Los Angeles,
California 90049.  At that meeting, all of management's nominees: John V.
Winfield, Jerold R. Babin, Josef A. Grunwald, John C. Love and William J.
Nance, were elected as Directors of the Company to serve until the next
Annual Meeting, with each nominee receiving in excess of 96% of the shares
voted.  At that Meeting, the shareholders also voted in favor of the
ratification of the Audit Committee's selection of PricewaterhouseCoopers LLP
as the independent accountants of the Company for the fiscal year ending June
30, 2003.  A tabulation of the vote follows:

Proposal (1) - Directors:                Votes For       Withheld
                                         ---------       --------
   John V. Winfield                        656,377        33,683
   Jerold R. Babin                         645,443        44,797
   Josef A. Grunwald                       657,943        32,297
   John C. Love                            657,943        32,297
   William J. Nance                        657,943        32,297

Proposal (2) - Accountants:               Votes For      Against    Abstained
                                          ---------      -------    ---------
   PricewaterhouseCoopers LLP              662,459         500       27,281

                                    -20-
<PAGE>


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

         (a) Exhibit 99.1 - Certification of Chief Executive Officer Pursuant
             to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of
             the Sarbanes-Oxley Act of 2002.

             Exhibit 99.2 - Certification of Chief Financial Officer Pursuant
             to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of
             the Sarbanes-Oxley Act of 2002.


         (b) Registrant did not file any reports on Form 8-K
             during the period covered by this report.



                                SIGNATURES

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


                                               PORTSMOUTH SQUARE, INC.
                                                     (Registrant)


Date: May 14, 2003                    by      /s/ John V. Winfield
                                              ---------------------------
                                              John V. Winfield, President,
                                              Chairman of the Board and
                                              Chief Executive Officer


Date: May 14, 2003                    by      /s/ Michael G. Zybala
                                              ---------------------------
                                              Michael G. Zybala,
                                              Vice President and Secretary


Date: May 14, 2003                    by      /s/ David Nguyen
                                              --------------------------
                                              David Nguyen, Treasurer
                                             (Principal Accounting Officer)


                                    -21-
<PAGE>



                                  CERTIFICATIONS

I, John V. Winfield, certify that:

1.  I have reviewed this quarterly report on Form 10-QSB of Portsmouth
Square, Inc.;

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

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

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

    a) designated such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;

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

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

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

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

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

6.  The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.


Date:  May 14, 2003                                /s/ John V. Winfield
                                                   ----------------------
                                                   John V. Winfield
                                                   President and Chief
                                                   Executive Officer

                                    -22-
<PAGE>


I, David T. Nguyen, certify that:

1.  I have reviewed this quarterly report on Form 10-QSB of Portsmouth
Square, Inc.;

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

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

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

    a) designated such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;

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

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

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

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

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

6.  The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal
controls subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.


Date:  May 14, 2003                            /s/ David T. Nguyen
                                               ---------------------------
                                               David T. Nguyen, Treasurer and
                                               Controller (serving as Chief
                                               Financial Officer)

                                    -23-