----

| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES  EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------------------|

|   o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------|-------------------------------------------------------------------------------------------|

|   | FLORIDA                                        |   | 59-0867335                           |
|--------|------------------------------------------------|--------|--------------------------------------|
|   | (State or other jurisdiction of incorporation) |   | (I.R.S. Employer Identification No.) |

----

|          |          |                                                                                                                                            | Form 10 - QPage No. |
|---------------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------|---------------------|
| PART I        |          | FINANCIAL INFORMATION                                                                                                                           |                |
|          |          |                                                                                                                                            |                |
|          | Item 1.       | Financial StatementsCondensed Consolidated Statements of Financial PositionMarch 31, 2011 (Unaudited) and December 31, 2010                     |   3       |
|          |          |                                                                                                                                            |                |
|          |          | Condensed Consolidated Statements of Operations (Unaudited)Three Months Ended March 31, 2011 and 2010                                           |  4             |
|          |          |                                                                                                                                            |                |
|          |          | Condensed Consolidated Statements of Cash Flows (Unaudited)       Three Months Ended March 31, 2011 and 2010 |  5             |
|          |          |                                                                                                                                            |                |
|          |          | Notes to Condensed Consolidated Financial Statements (Unaudited)                                                                                | 6                   |
|          |          |                                                                                                                                            |                |
|          | Item 2.  | Management's Discussion and Analysis ofFinancial Condition and Results of Operations                                                            |  11            |
|          |          |                                                                                                                                            |                |
|          | Item 3.       | Quantitative and Qualitative Disclosures About Market Risk                                                                                      | 14                  |
|          |          |                                                                                                                                            |                |
|          | Item 4.       | Controls and Procedures                                                                                                                         | 14                  |
|          |          |                                                                                                                                            |                |
| PART II       |          | OTHER INFORMATION                                                                                                                               |                |
|          |          |                                                                                                                                            |                |
|          | Item 1.       | Legal Proceedings                                                                                                                               | 15                  |
|          |          |                                                                                                                                            |                |
|          | Item1A.       | Risk Factors                                                                                                                                    | 15                  |
|          |          |                                                                                                                                            |                |
|          | Item 2.       | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                     | 15                  |
|          |          |                                                                                                                                            |                |
|          | Item 3.       | Defaults Upon Senior Securities                                                                                                                 | 15                  |
|          |          |                                                                                                                                            |                |
|          | Item 4.       | [Removed and Reserved]                                                                                                                          | 15                  |
|          |          |                                                                                                                                            |                |
|          | Item 5.       | Other Information                                                                                                                               | 15                  |
|          |          |                                                                                                                                            |                |
|          | Item 6.       | Exhibits                                                                                                                                        | 15                  |
|          |          |                                                                                                                                            |
| SIGNATURE     |          | 16                                                                                                                                              |
|          |          |                                                                                                                                            |                |
| EXHIBIT INDEX |          | 17                                                                                                                                              |

----

PART I                     FINANCIAL INFORMATION

Item 1.       Financial Statements

|                                                                                                                         |   | March 31,   |        |   | December 31, |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|--------------|--------|
|                                                                                                                         |   | 2011        |        |   | 2010         |   |
|                                                                                                                         |   | (Unaudited) |        |   |         |   |
| ASSETS                                                                                                                       |   |        |        |   |         |   |
| Cash                                                                                                                         |   | $           | 1           |   |         | $      | 1 |   |
| Restricted cash                                                                                                              |   |        | 5           |   |         |   | 5 |   |
| Receivables                                                                                                                  |   |        | 694         |   |         |   | 705 |   |
| Land and improvement inventories                                                                                             |   |        | 639         |   |         |   | 639 |   |
| Other assets                                                                                                                 |   |        | 186         |   |         |   | 189 |   |
|                                                                                                                         |   | $           | 1,525       |   |         | $      | 1,539 |   |
|                                                                                                                         |   |        |        |   |         |   |   |   |
| LIABILITIES                                                                                                                  |   |        |        |   |         |   |   |   |
| Accounts payable and accrued expenses                                                                                        |   | $           | 120         |   |         | $      | 121 |   |
| Accrued real estate taxes                                                                                                    |   |        | 2           |   |         |   | 9 |   |
| Accrued interest:                                                                                                            |   |        |        |   |         |   |   |   |
| Primary lender                                                                                                               |   |        | 250         |   |         |   | 240 |   |
| Debentures                                                                                                                   |   |        | 45,393      |   |         |   | 44,121 |   |
| Other                                                                                                                        |   |        | 2,788       |   |         |   | 2,773 |   |
| Credit agreements:                                                                                                           |   |        |        |   |         |   |   |   |
| Primary lender                                                                                                               |   |        | 500         |   |         |   | 500 |   |
| Notes payable                                                                                                                |   |        | 1,198       |   |         |   | 1,198 |   |
| Subordinated convertible debentures payable                                                                                  |   |        | 9,059       |   |         |   | 9,059 |   |
| Convertible debentures payable                                                                                               |   |        |  1,500 |   |         |   | 1,500 |   |
|                                                                                                                         |   |        | 60,810      |   |         |   | 59,521 |   |
|                                                                                                                         |   |        |        |   |         |   |   |   |
| STOCKHOLDERS’ DEFICIENCY                                                                                               |   |        |        |   |         |   |   |   |
| Preferred stock, par value $1.00 per share; authorized 5,000,000 shares; 2,000,000                                           |   |        |        |   |         |   |   |   |
| Class A cumulative convertible shares issued and outstanding; (liquidation preferenceof $8,000,000 and cumulative dividends) |   |        | 2,000       |   |         |   | 2,000 |   |
| Common stock, par value $.10 per share; authorized  25,000,000 shares; 5,317,758 sharesissued and outstanding      |   |        | 532         |   |         |   | 532 |   |
| Paid-in capital                                                                                                              |   |        | 13,498      |   |         |   | 13,498 |   |
| Accumulated deficit                                                                                                          |   |        | (75,315     | )      |         |   | (74,012 | ) |
|                                                                                                                         |   |        | (59,285     | )      |         |   | (57,982 | ) |
|                                                                                                                         |   | $           | 1,525       |   |         | $      | 1,539 |   |

----

PGI INCORPORATED AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

|                                       |   | Three Months Ended |        |
|--------------------------------------------|--------|--------------------|-------------|
|                                       |   | March 31,          |        |   | March 31, |   |
|                                       |   | 2011               |        |   | 2010 |   |
| REVENUES                                   |   |               |        |   |   |   |
| Real estate sales                          |   | $                  | 16          |   |   | $ | - |   |
| Interest income                            |   |               | 10          |   |   |   | 12 |   |
|                                       |   |               | 26          |   |   |   | 12 |   |
|                                       |   |               |        |   |   |   |   |   |
| COSTS AND EXPENSES                         |   |               |        |   |   |   |   |   |
| Cost of real estate sales                  |   | $                  | 1           |   |   | $ | - |   |
| Interest                                   |   |               | 1,298       |   |   |   | 1,164 |   |
| Taxes and assessments                      |   |               | 2           |   |   |   | 3 |   |
| Consulting and accounting                  |   |               | 10          |   |   |   | 10 |   |
| Legal and professional                     |   |               | 2           |   |   |   | 4 |   |
| General and administrative                 |   |               | 16          |   |   |   | 15 |   |
|                                       |   |               |  1,329 |   |   |   |  1,196 |   |
| NET LOSS                                   |   | $                  | (1,303      | ) |   | $ | (1,184 | ) |
|                                       |   |               |        |   |   |   |   |   |
| NET LOSS PER SHARE (*) AVAILABLE TO COMMON |   |               |        |   |   |   |   |   |
| STOCKHOLDERS-Basic and diluted             |   | $                  | (.28        | ) |   | $ | (.25 | ) |

|   | * Considers the effect of cumulative preferred dividends in arrears for the three months ended March 31, 2011 and 2010. |
|--------|-------------------------------------------------------------------------------------------------------------------------|

----

PGI INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

|                                      |   | Three Months Ended |    |
|-------------------------------------------|--------|--------------------|---------|
|                                      |   | March 31,          |    |   | March 31, |   |
|                                      |   | 2011               |    |   | 2010 |   |
|                                      |   |               |    |   |   |   |
| Net cash used in operating activities     |   | $                  | (11     | ) |   | $ | (5 | ) |
|                                      |   |               |    |   |   |   |   |   |
| Cash flows from investing activities:     |   |               |    |   |   |   |   |   |
| Proceeds from notes receivable            |   |               | 11      |   |   |   | 5 |   |
| Net cash provided by investing activities |   |               | 11      |   |   |   | 5 |   |
|                                      |   |               |    |   |   |   |   |   |
| Net change in cash                        |   |               | -       |   |   |   | - |   |
|                                      |   |               |    |   |   |   |   |   |
| Cash at beginning of period               |   |               |  1 |   |   |   | 1 |   |
|                                      |   |               |    |   |   |   |   |   |
| Cash at end of period                     |   | $                  | 1       |   |   | $ | 1 |   |

----

PGI INCORPORATED AND SUBSIDIARIES

| (1) | Basis of Presentation |
|-----|-----------------------|

|  (2) | Per Share Data |
|-----------|----------------|

----

|                                                           |   | Three Months Ended |       |
|----------------------------------------------------------------|--------|--------------------|------------|
|                                                           |   | March 31, 2011     |       |   | March 31,2010 |   |
| Net Loss                                                       |   | $                  | (1,303,000 | ) |   | $ | (1,184,000 | ) |
| Preferred Dividends                                            |   |               | (160,000   | ) |   |   | (160,000 | ) |
| Loss Available to Common Shareholders                     |   | $                  | (1,463,000 | ) |   | $ | (1,344,000 | ) |
| Weighted Average Number Of Common Shares Outstanding |   |               | 5,317,758  |   |   |   | 5,317,758 |   |
| Basic and Diluted Loss Per Share                          |   | $                  | (.28       | ) |   | $ | (.25 | ) |

----

| Net receivables consisted of:             |   |             |   |   |         |   |
|-------------------------------------------|--------|------------------|--------|--------|--------------|--------|
|                                      |   | March 31,        |   |   | December 31, |   |
|                                      |   | 2011             |   |   | 2010         |   |
|                                      |   | ($ in thousands) |   |
| Notes receivable – related party    |   | $                | 693    |   |         | $      | 704 |   |
| Interest receivable – related party |   |             | 1      |   |         |   | 1 |   |
|                                      |   | $                | 694    |   |         | $      | 705 |   |
|                                      |   |             |   |   |         |   |   |   |

|   | Land and improvement inventories consisted of: |   |   |
|--------|------------------------------------------------|--------|--------|

|                |   | March 31,        |   |   | December 31, |   |
|---------------------|--------|------------------|--------|--------|--------------|--------|
|                |   | 2011             |   |   | 2010         |   |
|                |   | ($ in thousands) |   |
| Unimproved land     |   | $                | 625    |   |         | $      | 625 |   |
| Fully improved land |   |             | 14     |   |         |   | 14 |   |
|                |   | $                | 639    |   |         | $      | 639 |   |
|                |   |             |   |   |         |   |   |   |

|   | Other assets consisted of: |   |   |
|--------|----------------------------|--------|--------|

|                                      |   | March 31,        |   |   | December 31, |   |
|-------------------------------------------|--------|------------------|--------|--------|--------------|--------|
|                                      |   | 2011             |   |   | 2010         |   |
|                                      |   | ($ in thousands) |   |
| Deposit with Trustee of 6-1/2% debentures |   | $                | 184    |   |         | $      | 184 |   |
| Other                                     |   |             | 2      |   |         |   | 5 |   |
|                                      |   | $                | 186    |   |         | $      | 189 |   |

----

| (8) | Accounts Payable and Accrued Expenses |
|-----|---------------------------------------|

|  Accounts payable and accrued expenses consisted of: |   |   |   |   |   |   |
|-----------------------------------------------------------|--------|--------|--------|--------|--------|--------|

|                                    |   | March 31,        |   |   | December 31, |   |
|-----------------------------------------|--------|------------------|--------|--------|--------------|--------|
|                                    |   | 2011             |   |   | 2010         |   |
|                                    |   | ($ in thousands) |   |
| Accounts payable                        |   | $                | 10     |   |         | $      | 12 |   |
| Accrued audit & professional        |   |             | 36     |   |         |   | 36 |   |
| Accrued consulting fees                 |   |             | 3      |   |         |   | 2 |   |
| Accrued miscellaneous                   |   |             | 71     |   |         |   | 71 |   |
|                                    |   | $                | 120    |   |         | $      | 121 |   |
|                                    |   |             |   |   |         |   |   |   |
| Accrued real estate taxes consisted of: |   |             |   |   |         |   |   |   |
| Current real estate taxes               |   | $                | 2      |   |         | $      | 9 |   |

|  (9) | Primary Lender Credit Agreements, Notes Payable, Subordinated and Convertible Debentures Payable |
|-----------|--------------------------------------------------------------------------------------------------|

|                                                                                                           |   | March 31,        |   |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------------|--------|------------------|--------|--------|--------------|--------|
|                                                                                                           |   | 2011             |   |   | 2010         |   |
|                                                                                                           |   | ($ in thousands) |   |
| Credit agreements – primary lender:                                                                      |   |             |   |   |         |   |
| balance is past due, bearing interest at prime plus 5%                                                         |   | $                | 500    |   |         | $      | 500 |   |
| Notes payable - $1,176,000 bearing interest at prime plus 2%, the remainder non-interest bearing, all past due |   |             | 1,198  |   |         |   | 1,198 |   |
|                                                                                                           |   |             | 1,698  |   |         |   | 1,698 |   |
|                                                                                                           |   |             |   |   |         |   |   |   |
| Subordinated debentures payable:                                                                               |   |             |   |   |         |   |   |   |
|                                                                                                           |   |             |   |   |         |   |   |   |
| At 6-1/2% interest; due June 1, 1991                                                                           |   |             | 1,034  |   |         |   | 1,034 |   |
| At 6% interest; due May 1, 1992                                                                                |   |             | 8,025  |   |         |   | 8,025 |   |
|                                                                                                           |   |             | 9,059  |   |         |   | 9,059 |   |
|                                                                                                           |   |             |   |   |         |   |   |   |
| Collateralized convertible debentures payable:                                                                 |   |             |   |   |         |   |   |   |
|                                                                                                           |   |             |   |   |         |   |   |   |
| At 14% interest; due July 8, 1997, convertible into shares of common stock at $1.72 per share                  |   |             | 1,500  |   |         |   |  1,500 |   |
|                                                                                                           |   | $                | 12,257 |   |         | $      | 12,257 |   |

----

| (10) | Income Taxes |
|------|--------------|

|                                                 |   |   | March 31,        |    |   | December 31, |   |
|------------------------------------------------------|--------|--------|------------------|---------|--------|--------------|--------|
|                                                 |   |   | 2011             |    |   | 2010         |   |
|                                                 |   |   | ($ in thousands) |    |
| Deferred tax asset:                                  |   |   |             |    |   |         |   |
| Net operating loss carry forward                     |   |   | $                | 16,382  |   |         | $      | 15,887 |   |
| Adjustments to reduce land to net realizable value   |   |   |             | 12      |   |         |   | 12 |   |
| Expenses capitalized under IRC 263(a)                |   |   |             | 56      |   |         |   | 56 |   |
| Environmental liability                              |   |   |             | 27      |   |         |   | 27 |   |
| Valuation allowance                                  |   |   |             | (16,305 | )      |         |   | (15,810 | ) |
|                                                 |   |   |             |    | 172    |         |   |   | 172 |   |
|                                                 |   |   |             |    |   |         |   |   |   |   |
| Deferred tax liability:                              |   |   |             |    |   |         |   |   |   |
| Basis difference of land and improvement inventories |   |   |             | 172     |   |         |   | 172 |   |
| Net deferred tax asset                               |   |   | $                | -       |   |         | $      | - |   |

----

Item 2. 

----

|                             |   |   | March 31,2011    |   |   |   | December 31,2010 |   |   |   | Increase(Decrease) |   |
|----------------------------------|--------|--------|------------------|--------|--------|--------|------------------|--------|--------|--------|--------------------|--------|
|                             |   |   | ($ in thousands) |   |
| Cash and cash equivalents        |   | $      | 1                |   |   | $      | 1                |   |   | $      | -                  |   |
| Restricted cash                  |   |   | 5                |   |   |   | 5                |   |   |   | -                  |   |
| Receivables                      |   |   | 694              |   |   |   | 705              |   |   |   | (11                | )      |
| Land and improvement inventories |   |   | 639              |   |   |   | 639              |   |   |   | -                  |   |
| Other assets                     |   |   | 186              |   |   |   | 189              |   |   |   | (3                 | )      |
|                             |   | $      | 1,525            |   |   | $      | 1,539            |   |   | $      | (14                | )      |

----

|                                     |   | March 31,2011    |   |   | December 31,2010 |   |   | Increase(Decrease) |   |
|------------------------------------------|--------|------------------|--------|--------|------------------|--------|--------|--------------------|--------|
|                                     |   | ($ in thousands) |   |
| Accounts payable & accrued expenses  |   | $                | 120    |   |             | $      | 121    |               |   | $ | (1 | ) |
| Accrued real estate taxes                |   |             | 2      |   |             |   | 9      |               |   |   | (7 | ) |
| Accrued interest                         |   |             | 48,431 |   |             |   | 47,134 |               |   |   | 1,297 |   |
| Credit agreements – primary lender |   |             | 500    |   |             |   | 500    |               |   |   | - |   |
| Notes payable                            |   |             | 1,198  |   |             |   | 1,198  |               |   |   | - |   |
| Subordinated convertible                 |   |             |   |   |             |   |   |               |   |   |   |   |
|    debentures payable     |   |             | 9,059  |   |             |   | 9,059  |               |   |   | - |   |
| Convertible debentures payable           |   |             | 1,500  |   |             |   | 1,500  |               |   |   | - |   |
|                                     |   | $                | 60,810 |   |             | $      | 59,521 |               |   | $ | 1,289 |   |

|                                   |   | March 31, 2011   |   |
|----------------------------------------|--------|------------------|--------|
|                                   |   | Principal        |   |   | Accrued |   |
|                                   |   | Amount Due       |   |   | Interest |   |
|                                   |   | ($ in thousands) |   |
| Subordinated convertible debentures:   |   |             |   |   |   |   |
| At 6 1⁄2%, due June 1, 1991         |   | $                | 1,034  |   |   | $ | 1,488 |   |
| At 6%, due May 1, 1992                 |   |             | 8,025  |   |   |   | 16,246 |   |
|                                   |   | $                | 9,059  |   |   | $ | 17,734 |   |
|                                   |   |             |   |   |   |   |   |   |
| Collateralized convertible debentures: |   |             |   |   |   |   |   |   |
| At 14%, due July 8, 1997               |   | $                | 1,500  |   |   | $ | 27,659 |   |
|                                   |   |             |   |   |   |   |   |   |
| Notes Payable:                         |   |             |   |   |   |   |   |   |
| At prime plus 2%                       |   | $                | 1,176  |   |   | $ | 2,788 |   |
| Non-interest bearing                   |   |             | 22     |   |   |   | - |   |
|                                   |   | $                | 1,198  |   |   | $ | 2,788 |   |

----

Item 3.   

Item 4.   

----

PART II  

Item 1.    Legal Proceedings

Item 1A.  Risk Factors

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

Item 3.     Defaults Upon Senior Securities

Item 4.     [Removed and Reserved]

Item 5.     Other Information

Item 6.     Exhibits

|   | Reference is made to the Exhibit Index hereof for a list of exhibits filed under this Item. |
|--------|---------------------------------------------------------------------------------------------|

----

PGI INCORPORATED AND SUBSIDIARIES

|              |                                                                                 |
|-------------------|--------------------------------------------------------------------------------------|
| Date:May 16, 2011 |  /s/ Laurence A. Schiffer                                                       |
|              | Laurence A. Schiffer                                                                 |
|              | President                                                                            |
|              | (Duly Authorized Officer, PrincipalExecutive Officer and PrincipalFinancial Officer) |

----

EXHIBIT INDEX

| 2.      | Inapplicable.                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                             |
| 3.(i)   | Inapplicable.                                                                                                                                                    |
|    |                                                                                                                                                             |
| 3.(ii)  | Inapplicable.                                                                                                                                                    |
|    |                                                                                                                                                             |
| 4.      | Inapplicable.                                                                                                                                                    |
|    |                                                                                                                                                             |
| 10.     | Inapplicable.                                                                                                                                                    |
|    |                                                                                                                                                             |
| 11.     | Statement re:  Computation of Per Share Earnings (Set forth in Note 2 of the Notes to Condensed Consolidated Financial Statements (Unaudited) herein). |
|    |                                                                                                                                                             |
| 15      | Inapplicable.                                                                                                                                                    |
|    |                                                                                                                                                             |
| 18.     | Inapplicable.                                                                                                                                                    |
|    |                                                                                                                                                             |
| 19.     | Inapplicable.                                                                                                                                                    |
|    |                                                                                                                                                             |
| 22.     | Inapplicable.                                                                                                                                                    |
|    |                                                                                                                                                             |
| 23.     | Inapplicable.                                                                                                                                                    |
|    |                                                                                                                                                             |
| 24.     | Inapplicable.                                                                                                                                                    |
|    |                                                                                                                                                             |
| 31(i).1 | Principal Executive Officer certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.                         |
|    |                                                                                                                                                             |
| 31(i).2 | Principal Financial Officer certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.                         |
|    |                                                                                                                                                             |
| 32.1    | Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350.                                                                                        |
|    |                                                                                                                                                             |
| 32.2    | Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350.                                                                                        |
|    |                                                                                                                                                             |
| 99.     | Inapplicable                                                                                                                                                     |
|    |                                                                                                                                                             |
| 100.    | Inapplicable                                                                                                                                                     |