SECURITIES AND EXCHANGE COMMISSION
                          Washington, DC 20549

========================================================================
                                FORM 10-Q
========================================================================

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

For the quarterly period ended                      March 31, 1997
                                    ------------------------------

                                   OR

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

For the transition period from               to


Commission file number                                 1-11550
                                    -------------------------------       

                    Wellsford Residential Property Trust
-------------------------------------------------------------------------------
            (Exact name of registrant as specified in its charter)

                                    Maryland
-------------------------------------------------------------------------------
         (State or other jurisdiction of incorporation or organization)

                                   13-3675988
               ------------------------------------------------
                       (IRS Employer Identification No.)

                    610  Fifth  Avenue, New York, NY  10020
-------------------------------------------------------------------------------
                    (Address of principal executive offices)
                                    (Zip Code)

                                  (212) 333-2300
-------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

Yes       X                    No
       --------                     --------
Number of common shares of beneficial  interest, $.01  par  value, outstanding
as of May 9, 1997:  17,246,897.



<PAGE>


                   WELLSFORD RESIDENTIAL PROPERTY TRUST
                               FORM 10-Q

------------------------------------------------------------------------
                                 INDEX
------------------------------------------------------------------------


                                                                  Page
                                                                 Number

PART I.    FINANCIAL INFORMATION

Item 1.    Financial Statements

           Consolidated Balance Sheets as of March 31, 1997
           (unaudited)and December 31, 1996                         3

           Consolidated Statements of Operations(unaudited)for the
           three months ended March 31, 1997 and 1996               4

           Consolidated Statements of Cash Flows(unaudited)for the
           three months ended March 31, 1997 and 1996               5

           Notes to Consolidated Financial Statements (unaudited)   6

Item 2.    Management's Discussion and Analysis of Financial
           Condition and Results of Operations                      7

PART II.   OTHER INFORMATION                                        9

           SIGNATURES                                              10



<PAGE>
<TABLE>
<CAPTION>
             Wellsford Residential Property Trust and Subsidiaries
                          Consolidated Balance Sheets
                                                                                                  March 31,            December 31,
                                                                                                    1997                  1996
                                                                                              --------------         ---------------
                                                                                                (Unaudited)   
ASSETS
<S>                                                                                            <C>                    <C>
Real estate assets, at cost:
   Land ..............................................................................         $ 114,275,557          $ 114,214,888
   Buildings and improvements ........................................................           660,081,262            659,153,965
                                                                                               -------------          -------------
                                                                                                 774,356,819            773,368,853
      Less, accumulated depreciation .................................................           (90,733,339)           (83,965,956)
                                                                                               -------------          -------------
                                                                                                 683,623,480            689,402,897
   Construction in progress ..........................................................            48,781,059             22,210,933
                                                                                               -------------          -------------
                                                                                                 732,404,539            711,613,830
Cash and cash equivalents ............................................................            29,371,713             10,811,505
Restricted cash ......................................................................             5,774,702              7,666,598
Mortgage note receivable .............................................................            17,800,000             17,800,000
Deferred financing costs .............................................................             5,168,974              5,400,787
Prepaid and other assets .............................................................             6,941,017              2,995,854
                                                                                               -------------          -------------

Total Assets .........................................................................         $ 797,460,945          $ 756,288,574
                                                                                               =============          =============

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
   Senior unsecured notes ............................................................         $ 248,545,888          $ 248,495,847
   Mortgage notes payable ............................................................            82,673,731             82,730,831
   Unsecured credit facilities .......................................................            63,575,000             18,075,000
   Accrued expenses and other liabilities ............................................            13,085,625             15,617,516
   Dividends payable .................................................................            11,495,180             11,433,547
   Security deposits .................................................................             3,234,835              3,249,607
                                                                                               -------------          -------------

Total Liabilities ....................................................................           422,610,259            379,602,348
                                                                                               -------------          -------------

Commitments and contingencies ........................................................                  --                     --

Shareholders' Equity:
   Shares of beneficial interest, 100,000,000 shares authorized -
      3,999,800 Series A Convertible Preferred Shares, $.01 par value
      per share, liquidation preference $25 per share, issued and
      outstanding; ...................................................................                39,998                 39,998
      2,300,000 Series B Preferred Shares,
      $.01 par value per share, liquidation preference $25 per share,
      issued and outstanding; ........................................................                23,000                 23,000
      17,233,152 and 17,101,812 Common Shares,
      $.01 par value  per share, issued and outstanding at
      March 31, 1997 and December 31, 1996, respectively .............................               172,332                171,018
   Paid in capital in excess of par value ............................................           464,955,263            461,290,031
   Distributions in excess of net income .............................................           (83,786,781)           (78,284,695)
   Deferred compensation and shareholder loans receivable ............................            (6,553,126)            (6,553,126)
                                                                                               -------------          -------------

Total Shareholders' Equity ...........................................................           374,850,686            376,686,226
                                                                                               -------------          -------------

Total Liabilities and Shareholders' Equity ...........................................         $ 797,460,945          $ 756,288,574
                                                                                               =============          =============



</TABLE>

<PAGE>
<TABLE>
<CAPTION>
             Wellsford Residential Property Trust and Subsidiaries
                     Consolidated Statements of Operations
                                  (Unaudited)

                                       Three Months Ended March 31,
                                       ----------------------------
                                            1997          1996
                                       -------------  -------------
REVENUE
<S>                                     <C>            <C>         
   Rental income ....................   $ 32,608,636   $ 30,408,668
   Other income .....................      1,498,821      1,370,674
   Interest income ..................        544,299        260,144
                                        ------------    -----------
      Total Revenue .................     34,651,756     32,039,486
                                        ------------    -----------

EXPENSES
   Property operating and maintenance     10,543,184      9,722,165
   Real estate taxes ................      2,512,444      2,420,048
   Depreciation and amortization ....      7,026,142      6,436,099
   Property management ..............      1,129,391      1,237,540
   Interest .........................      6,589,512      5,517,230
   General and administrative .......        857,988      1,011,621
                                        ------------    -----------
      Total Expenses ................     28,658,661     26,344,703
                                        ------------    -----------

(Loss) on JV communities ............           --          (20,770)
                                        ------------    -----------

Net income ..........................      5,993,095      5,674,013

Preferred dividends .................      3,137,100      3,137,100
                                        ------------    -----------

Income (loss) available for
   common shareholders ..............   $  2,855,995 $    2,536,913
                                         ===========    ===========


Net income (loss) per common share ..   $       0.17           0.15
                                        ============    ===========

Weighted average number of common
   shares outstanding ...............     17,150,966     17,031,108
                                        ============    ===========

Cash dividends declared per common
   share ............................   $      0.485    $     0.485
                                        ============    ===========






See accompanying notes.
</TABLE>

<PAGE>
<TABLE>


<CAPTION>
             Wellsford Residential Property Trust and Subsidiaries
                     Consolidated Statements of Cash Flows
                                  (Unaudited)

                                                                                                   Three Months Ended March 31,
                                                                                                ------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:                                                               1997                    1996
                                                                                                ----------             ------------
<S>                                                                                             <C>                      <C>       
   Net income ....................................................................              $5,993,095               $5,674,013
   Adjustments to reconcile net income
      to net cash provided by operating activities:
      Depreciation and amortization ..............................................               7,234,536                6,594,497
      Amortization of deferred compensation and
      shareholder loans receivable ...............................................                    --                    140,050
      Decrease (increase) in assets
         Escrow cash .............................................................                 (68,439)                  43,123
         Debt service reserve ....................................................               1,960,335                  391,106
         Rent receivables ........................................................                (313,183)                  11,401
         Prepaid and other assets ................................................              (3,683,104)                  68,721
      (Decrease) increase in liabilities
         Accounts payable ........................................................                (175,843)                (453,567)
         Accrued expenses and other liabilities ..................................              (2,356,048)              (3,753,763)
         Security deposits .......................................................                 (14,772)                 (41,260)
                                                                                              ------------             ------------
      Net cash provided by operating activities ..................................               8,576,577                8,674,321
                                                                                              ------------             ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Investment in real estate assets ..............................................             (27,558,092)              (4,585,341)
                                                                                              ------------             ------------
      Net cash provided by (used in) investing activities ........................             (27,558,092)              (4,585,341)
                                                                                              ------------             ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from mortgage notes payable ..........................................                    --                       --
   Proceeds (payment) from credit facilities .....................................              45,500,000                     --
   Payment of deferred financing costs ...........................................                (129,333)                 (59,046)
   Principal payments on mortgage notes ..........................................                 (61,942)              (4,968,568)
   Distributions to shareholders .................................................             (11,433,547)             (11,310,053)
   Proceeds from dividend reinvestment plan ......................................                 573,151                  121,598
   Proceeds from exercise of options .............................................               3,093,394                     --
                                                                                              ------------             ------------
      Net cash provided by (used in) financing activities ........................              37,541,723              (16,216,069)
                                                                                              ------------             ------------

   Net (decrease) in cash and cash equivalents ...................................              18,560,208              (12,127,089)
   Cash and cash equivalents, beginning of period ................................              10,811,505               29,444,008
                                                                                              ------------             ------------
   Cash and cash equivalents, end of period ......................................            $ 29,371,713             $ 17,316,919
                                                                                              ============             ============

SUPPLEMENTAL INFORMATION:
   Cash paid during the period for interest ......................................            $ 10,914,113             $  9,900,073
   First quarter dividends declared ..............................................            $ 11,495,180             $ 11,397,667








    See accompanying notes.
</TABLE>
<PAGE>


         WELLSFORD RESIDENTIAL PROPERTY TRUST AND SUBSIDIARIES
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1.    General

      Wellsford Residential Property Trust and Subsidiaries (the "Company") is a
      fully integrated and self administered equity real estate investment trust
      ("REIT") principally engaged in the acquisition, development and operation
      of multifamily  communities located in the Southwest and Pacific Northwest
      regions of the United  States.  At March 31,  1997,  the Company  owned 72
      multifamily communities containing 19,004 units and four commercial office
      buildings comprising 750,400 square feet. In addition, the Company has two
      multifamily communities under development, comprising 760 units.

      The  accompanying  financial  statements  and related notes of the Company
      have been  prepared  in  accordance  with  generally  accepted  accounting
      principles for interim  financial  reporting and the  instructions to Form
      10-Q and Rule 10-01 of Regulation S-X.  Accordingly,  certain  information
      and  footnote   disclosures  normally  included  in  financial  statements
      prepared  under  generally  accepted   accounting   principles  have  been
      condensed or omitted  pursuant to such rule. In the opinion of management,
      all  adjustments  considered  necessary  for a  fair  presentation  of the
      Company's  financial  position,  results of operations and cash flows have
      been included and are of a normal and recurring  nature.  These  financial
      statements  should be read in conjunction with the Company's Annual Report
      on Form 10-K for the year ended December 31, 1996.

2.    Merger and Recent Development

      The  Company  has  entered  into an  Agreement  and Plan of Merger,  dated
      as  of  January 16,  1997  (the  "Agreement"),  with  Equity  Residential
      Properties Trust("EQR"). The Agreement provides for the exchange of all of
      the  outstanding  common shares of  the Company for  common shares of the
      surviving trust, at  an  exchange ratio of 0.625  common  shares  of  the
      surviving  trust  for  each  common  share of the Company (the "Merger").
      Immediately prior to the Merger, and subject to the satisfaction or waiver
      of all conditions thereto, the Company  will  contribute  certain of its
      assets,  including  the  Commercial Properties  (as defined below),   and
      certain of its liabilities to its subsidiary, WRP Newco (as defined below)
      and distribute to its common shareholders, on a pro rata basis, all of the
      shares it owns in WRP Newco (the "Spin Off").

      In contemplation of the Merger and Spin Off, the Company has acquired five
      commercial  office  properties  (the  "Commercial  Properties")  for $47.6
      million  in  aggregate,   has closed on four of the properties during the
      first quarter of 1997 and one in April 1997 and has acquired a $20 million
      portion of an $80 millon subordinated mezzanine real estate loan  bearing
      interest at approximately 12% per annum.    The aggregate  purchase price
      for the  Commercial  Properties  includes  approximately  $2.25 million in
      value of common shares of Wellsford Real Properties, Inc. ("WRP Newco") to
      be issued to an entity in consideration for the assignment of the purchase
      contracts  entered into by such entity.  Upon  liquidation of such entity,
      each of the Chairman of the Board and  President  of the Company,  Messrs.
      Lynford and Lowenthal,  will receive  approximately  16.4% of such shares,
      and the wife of Mark  Germain,  a trustee  of the  Company,  will  receive
      approximately  13.8% of such shares.  Each are owners of such entity.  The
      four commercial properties acquired during the first quarter are currently
      vacant and undergoing  renovations  and are included in the  construction
      in progress balance at March 31, 1997.

      The Merger is subject to the approval of the common  shareholders  of both
      EQR and the Company.


3.    Earnings Per Share

      Net income per share was calculated  using the weighted  average number of
      shares outstanding of 17,150,966 and 17,031,108 for the three months ended
      March 31,  1997 and 1996,  respectively.  The  Company  declared  a common
      dividend  of $0.485 per common  share,  a Series A  preferred  dividend of
      $0.4375 per share,  and a Series B preferred  dividend  of  $0.603125  per
      share on March 12,  1997  payable to  shareholders  of record on March 25,
      1997.


<PAGE>


                MANAGEMENT'S DISCUSSION AND ANALYSIS OF
             FINANCIAL CONDITION AND RESULTS OF OPERATIONS


1.    General

      The Company's  operations  consist of acquiring,  developing and operating
      residential  multifamily  communities located in the Southwest and Pacific
      Northwest  regions of the United  States.  At March 31, 1997,  the Company
      owned  72  multifamily   communities  containing  19,004  units  and  four
      commercial office buildings  comprising  750,400 square feet. In addition,
      the Company has two multifamily communities under development,  comprising
      760 units,  and purchased one  commercial  office  building in April 1997,
      comprising 190,000 square feet.

      Increases in revenues and expenses in the periods  compared below were due
      primarily to the acquisition  (development) of four communities containing
      a total of 828 units during 1996 (the "Acquisition  Communities"),  offset
      by the disposition of two  communities  containing a total of 120 units in
      1996.  Certain  comparisons  between  periods  have been made on an actual
      basis as well as on a weighted  average per unit basis, a technique  which
      adjusts for certain  increases in existing  communities  and  increases or
      decreases related to the acquisition or disposition of communities.

      The  Company  currently  has the  following  two  multifamily  development
      projects on which it has spent $ 24.0 million through March 31, 1997:

                    Number                  Estimated         Estimated
      Name          of Units   Location     Total Cost      Completion Date

      Red Canyon      304       Denver     $33.6 million    Fourth Qtr. 1998
      Blue Ridge      456       Denver      42.5 million    Fourth Qtr. 1997
                      ---                   ------------
      
                      760                  $76.1 million
                      ===                   ============

      These projects are being developed pursuant to fixed-price contracts.  The
      Company is committed to purchase 100% of these  projects  upon  completion
      and the achievement of certain occupancy  levels,  which is anticipated to
      occur at the dates disclosed above.

      In  addition,  all of the  commercial  office  buildings  purchased by the
      Company are undergoing renovations and are included in the construction in
      progress balance at March 31, 1997.

      Risks Associated with Forward-Looking Statements.

      This Form 10-Q,  together with other  statements and information  publicly
      disseminated by the Company,  contains certain forward-looking  statements
      within the  meaning  of  Section  27A of the  Securities  Act of 1933,  as
      amended,  and  Section  21E of the  Securities  Exchange  Act of 1934,  as
      amended. Such statements are based on current expectations which involve a
      number of risk factors and uncertainties,  including,  but not limited to,
      risks  associated with the  acquisition,  construction  and development of
      multifamily communities, including the risk of an over-supply of apartment
      units or a reduction in the demand for such units,  risks  associated with
      construction  and  lease-up  delays,  budget  over-runs,  risks  that  the
      Company's acquisition and development  communities will fail to perform as
      expected,  financing  risks,  such as the  availability  of debt or equity
      financing  in the  future  and  the  risk  of  increasing  costs  of  such
      financing,  as well as other risks  listed from  time  to  time  in  the
      Company's  reports  filed  with  the  SEC.    Therefore,   actual  results
      could  differ  materially  from  those projected in such statements.

2.    Results of Operations

      Comparison  of the three  months  ended March 31, 1997 to the three months
      ended March 31, 1996.

      Rental  income  increased  by $2.2  million  or 7%.  $1.8  million of this
      increase represents rental income from the Acquisition  Communities.  On a
      per unit basis,  rental income  increased  from $1,669 to $1,716 or 3% due
      primarily to increases in rental  rates.  Revenues for the 68  communities
      which were owned during the first three months of 1996 and 1997  increased
      by 2%. Occupancy for the 68  communities  owned during the first three
      months of both 1996 and 1997 decreased from 95.0% to 94.9%.

      Other  income  increased by $0.1  million or 9%. This  increase  primarily
      represents  other income from the Acquisition  Communities.  On a per unit
      basis, other income increased from $75 to $79 or 5%.

      Interest  income  increased by $0.3 million due primarily to the Company's
      $17.8 mortgage note receivable originated in July 1996.

      As a result of the above  changes,  total  revenues  increased  from $32.0
      million  to $34.7  million  or 8%.  On a per  unit  basis,  total  revenue
      increased  from $1,758 to $1,823 (or from $586 to $608 per unit per month)
      or 4%.

      Property  operating and maintenance  expenses increased by $0.8 million or
      8%.  $0.3  million of this  increase  represents  property  operating  and
      maintenance  expenses  from  the  Acquisition  Communities.  On a per unit
      basis, these expenses increased from $534 to $555 or 4%.

      Real  estate  taxes  increased  by $0.1  million or 4%.  This  increase is
      primarily  attributable  to the  Acquisition  Communities.  On a per  unit
      basis,  real estate taxes  decreased from $133 to $132 or 1% due primarily
      to decreases in assessed values in certain cities.

      Property  management expense decreased by $0.1 million or 1%. $0.1 million
      of  increase   represents  property  management  expense  related  to  the
      Acquisition  Communities,  which is offset by the  lower  costs  described
      below. On a per unit basis, property management expense decreased from $68
      to  $59  or  13%  due  primarily  to  lower  costs   associated  with  the
      internalization of the Company's property management services,  which were
      previously contracted out to third parties.

      Interest  expense  increased  by $1.1  million or 19%.  This  increase  is
      primarily the result of the purchase of the Acquisition Communities.

      General and administrative  expenses  decreased by $0.2 million.  On a per
      unit basis, this expense decreased from $56 to $45 or 19%.

      Depreciation  and  amortization  increased  by  $0.6  million  or  9%  due
      primarily to the acquisition of communities.

3.    Liquidity and Capital Resources

      The  Company  expects  to  meet  its  short-term  liquidity   requirements
      generally   through  its  working   capital  and  cash  flow  provided  by
      operations.  The Company  considers  its  ability to  generate  cash to be
      adequate  and expects it to  continue  to be  adequate  to meet  operating
      requirements  and  shareholder   distributions  in  accordance  with  REIT
      requirements both in the short and long terms.

      The Company expects to meet its long-term  liquidity  requirements such as
      refinancing  mortgages,   financing  acquisitions  and  development,   and
      financing  capital   improvements  by  long-term  borrowings  through  the
      issuance  of  debt  and  the  offering  of  additional   debt  and  equity
      securities.

      The Company has a $150 million  unsecured  revolving  credit facility from
      The First National Bank of Boston (the "Bank of Boston Credit  Facility").
      At March 31, 1997,  $63.6  million was  outstanding  on the Bank of Boston
      Credit  Facility  leaving  $86.4  million  undrawn.  During April 1997, an
      additional  $20.0 million was drawn to fund the Company's investment in a
      real estate loan, leaving $66.4 million  undrawn.  The Bank of Boston
      Credit  Facility may be used for  financing  acquisitions, development,
      capital expenditures,  repayment of indebtedness and working capital
      purposes.


<PAGE>


      PART II.

      OTHER INFORMATION

         Item 1:     Legal Proceedings - Not Applicable.

         Item 2:     Changes in Securities - Not Applicable.

         Item 3:     Defaults upon Senior Securities - Not Applicable.

         Item 4:     Submission   of  Matters  to  a  Vote  of  Security
                     Holders - Not Applicable.

         Item 5:     Other Information - Not Applicable.

         Item 6:     Exhibits and Reports on Form 8-K

                     (a)  Exhibits filed with this Form 10-Q:
                          27.1 Financial  Data Schedule  (EDGAR Filing Only)
                     (b)  Reports  on Form 8-K  filed by the registrant during 
                          its fiscal quarter ended March 31, 1997:

                          - Form 8-K filed January 16, 1997 relating to the
                          Merger.
                          - Form  8-K filed February 3, 1997 relating to the
                          purchase of certain of the Commercial Properties.





<PAGE>


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.

WELLSFORD RESIDENTIAL PROPERTY TRUST



By:   /s/ Jeffrey H. Lynford
      --------------------------------------------------
      Jeffrey H. Lynford, Chairman of the Board


      /s/ Gregory F. Hughes
      --------------------------------------------------
      Gregory F. Hughes, Vice President and Chief Financial Officer


Dated: May 9, 1997