U.S. SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

(Mark One)

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

         For the quarterly period ended:    June 30, 2001
                                          -------------------

                                       OR

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

                           Commission File No.: 1-7986
                                                ------

                          Kent Financial Services, Inc.
    -------------------------------------------------------------------------
        (Exact name of small business issuer as specified in its charter)


            Delaware                                      75-1695953
-------------------------------                   ------------------------
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or organization)                       Identification No.)


           376 Main Street, P.O. Box 74, Bedminster, New Jersey 07921
           -----------------------------------------------------------
                    (Address of principal executive offices)


                                 (908) 234-0078
                       -----------------------------------
                           (Issuer's telephone number)

                                      N/A
                 ---------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act during the past 12 months (or for such
shorter period that the issuer was required to file such  reports),  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 stock: As of July 31, 2001, the issuer had 1,715,450 shares of its common
stock, par value $.10 per share, outstanding.

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


<PAGE>


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

                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                                   (UNAUDITED)
                                 ($000 Omitted)


                                                                    June 30,
                                                                      2001
                                                                    --------
Assets
------

Cash and cash equivalents                                          $  4,007
Securities owned                                                      8,000
Receivable from clearing broker                                         364
Property and equipment:
     Land and building                                                1,447
     Office furniture and equipment                                     277
                                                                   --------
                                                                      1,724
     Accumulated depreciation                                     (     642)
                                                                   --------
     Net property and equipment                                       1,082
                                                                   --------
Other assets                                                             94
                                                                   --------
          Total assets                                             $ 13,547
                                                                   ========

Liabilities and stockholders' equity
------------------------------------

Liabilities:
     Securities sold, not yet purchased                            $    219
     Accounts payable and accrued expenses                              768
     Mortgage payable                                                   685
     Accrual for previously discontinued operations                     273
                                                                   --------
          Total liabilities                                           1,945
                                                                   --------

Contingent liabilities

Stockholders' equity:
     Preferred stock without par value, 500,000
       shares authorized; none outstanding                                -
     Common stock, $.10 par value, 4,000,000
       shares authorized; 1,715,450 outstanding                         172
     Additional paid-in capital                                      13,830
     Accumulated deficit                                          (   2,400)
                                                                   --------
          Total stockholders' equity                                 11,602
                                                                   --------
          Total liabilities and stockholders' equity               $ 13,547
                                                                   ========

          See accompanying notes to consolidated financial statements.


                                        2




<PAGE>



                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                      ($000 Omitted, except per share data)



                                                       Three Months Ended
                                                            June 30,
                                                       -------------------
                                                        2001         2000
                                                       ------       ------

Revenues:
     Brokerage commissions                             $  384      $  479
     Principal transactions:
       Trading                                             84         256
       Investing gains (losses)                           122     (   271)
     Management fee income                                 46          45
     Interest, dividends and other                        167         269
                                                       ------      ------
                                                          803         778
                                                       ------      ------
Expenses:
     Brokerage                                            354         531
     General, administrative and other                    560         415
     Interest                                              96         115
                                                       ------      ------
                                                        1,010       1,061
                                                       ------      ------

Loss before income taxes                              (   207)    (   283)
Provision for income taxes                                  2           6
                                                       ------      ------
Net loss                                              ($  209)    ($  289)
                                                       ======      ======

Basic and diluted net loss
  per common share                                    ($  .12)    ($  .16)
                                                       ======      ======

Weighted average number of common
  shares outstanding (in 000's)                         1,737       1,850
                                                       ======      ======







          See accompanying notes to consolidated financial statements.


                                        3


<PAGE>


                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                      ($000 Omitted, except per share data)



                                                           Six Months Ended
                                                                June 30,
                                                           ----------------
                                                           2001        2000
                                                           ----        ----

Revenues:
     Brokerage commissions                               $   713     $ 1,071
     Principal transactions:
       Trading                                               241       1,765
       Investing gains                                       676         569
     Management fee income                                    92          90
     Interest, dividends and other                           402         517
                                                         -------     -------
                                                           2,124       4,012
                                                         -------     -------
Expenses:
     Brokerage                                               697       1,831
     General, administrative and other                       989         888
     Interest                                                214         214
                                                         -------     -------
                                                           1,900       2,933
                                                         -------     -------

Earnings before income taxes                                 224       1,079
Provision for income taxes                                     3           9
                                                         -------     -------
Net earnings                                             $   221     $ 1,070
                                                         =======     =======

Basic and diluted net earnings
  per common share                                       $   .13     $   .57
                                                         =======     =======

Weighted average number of common
  shares outstanding (in 000's)                            1,751       1,869
                                                         =======     =======





          See accompanying notes to consolidated financial statements.


                                        4




<PAGE>



                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 ($000 Omitted)
                                                          Six Months Ended
                                                              June 30,
                                                     --------------------------
                                                      2001                2000
                                                     ------              ------

Cash flows from operating activities:
   Net earnings                                     $   221             $ 1,070
   Adjustments to reconcile net
   earnings to net cash provided by
   (used in) operating activities:
      Depreciation and amortization                      27                  37
      Change in unrealized gains and
            losses on securities owned             (    683)           (    341)
      Provision for non-marketable
            investments                                 123                   -
      Change in operating assets and
        liabilities:
          Change in securities owned                  1,135            (  1,488)
          Change in receivable from
            clearing broker                        (    117)                263
          Change in accounts payable and
            accrued expenses                       (    162)           (    242)
          Other, net                               (     68)                  4
                                                    -------             -------
          Net cash provided by (used in)
            operating activities                        476            (    697)
                                                    -------             -------

Cash flows from investing activities-
   Purchase of property and equipment              (      4)           (      5)
                                                    -------             -------

Cash flows from financing activities:
   Purchase of common stock                        (    272)           (    332)
   Issuance of common stock                               -                  47
   Payments on debt                                (      5)           (      5)
                                                    -------             -------
          Net cash used in financing
            activities                             (    277)           (    290)
                                                    -------             -------

Net increase (decrease) in cash and
   cash equivalents                                     195            (    992)
Cash and cash equivalents at
   beginning of period                                3,812               4,043
                                                    -------             -------
Cash and cash equivalents at end of
   period                                           $ 4,007             $ 3,051
                                                    =======             =======

Supplemental disclosure of cash flow
   information:
        Cash paid for:
           Interest                                 $   214             $   214
                                                    =======             =======
           Taxes                                    $    18             $     1
                                                    =======             =======


          See accompanying notes to consolidated financial statements.

                                        5


<PAGE>

                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             JUNE 30, 2001 AND 2000
                                   (Unaudited)


1.   Basis of Presentation
     ---------------------

     The  accompanying  unaudited  consolidated  financial  statements  of  Kent
Financial  Services,  Inc. and subsidiaries  (the "Company") as of June 30, 2001
and for the three and six month  periods  ended June 30, 2001 and 2000,  reflect
all material adjustments consisting of only normal recurring adjustments, which,
in the opinion of management,  are necessary for a fair  presentation of results
for the interim periods.  Certain information and footnote  disclosures required
under accounting  principles  generally accepted in the United States of America
have been  condensed  or omitted  pursuant to the rules and  regulations  of the
Securities  and  Exchange  Commission,  although the Company  believes  that the
disclosures are adequate to make the information presented not misleading. These
consolidated  financial  statements  should  be read  in  conjunction  with  the
year-end  consolidated  financial  statements and notes thereto  included in the
Company's  Annual Report on Form 10-KSB for the year ended  December 31, 2000 as
filed with the Securities and Exchange Commission.

     The  preparation  of financial  statements  in conformity  with  accounting
principles   generally  accepted  in  the  United  States  of  America  requires
management to make estimates and assumptions that affect the reported amounts of
assets and  liabilities  and disclosure of contingent  assets and liabilities at
the date of the financial  statements  and the reported  amounts of revenues and
expenses  during the reporting  period.  Actual  results could differ from those
estimates.

     Certain  reclassifications  have been made to the  prior  year's  financial
statements to conform to the current year's presentation.

     The results of  operations  for the three and six month  periods ended June
30, 2001 and 2000 are not  necessarily  indicative of the results to be expected
for the entire year or for any other period.


                                        6



<PAGE>



2.   Business
     --------

     The Company's  business is comprised  principally of the operation of T. R.
Winston & Company, Inc.  ("Winston"),  a wholly-owned  subsidiary.  Winston is a
licensed securities broker-dealer and is a member of the National Association of
Securities Dealers,  Inc., and the Securities  Investor Protection  Corporation.
All safekeeping,  cashiering,  and customer account  maintenance  activities are
provided  by  an  unrelated  broker-dealer  pursuant  to a  clearing  agreement.
Pursuant to the net capital provisions of Rule 15c3-1 of the Securities Exchange
Act of 1934,  Winston is required to maintain  minimum net capital.  At June 30,
2001, Winston had net capital, as defined, of approximately $480,000,  which was
approximately $380,000 in excess of the required minimum.

     The Company also invests through its wholly-owned  subsidiary,  Asset Value
Fund Limited Partnership  ("AVF").  AVF primarily invests in a limited number of
portfolio companies, the securities of which are considered undervalued by AVF's
management.  As of June 30, 2001, AVF held 15 equity investments,  of which five
consisted of owning more than 5% of the  investee's  outstanding  capital stock.
AVF owns more than 39% of Cortech,  Inc., a company supervising the exploitation
of its  technology  by third  parties and also  seeking a new  business;  23% of
General Devices,  Inc., a non-operating  company seeking a new business;  16% of
Gish Biomedical,  Inc., a manufacturer of medical devices;  9.9% of Star Buffet,
Inc.,  a  company  that  is  engaged  in  the  restaurant  industry;  and  5% of
GolfRounds.com, Inc., an internet content provider.

3.   Securities owned and securities sold, not yet purchased
     -------------------------------------------------------

     Securities owned consist of proprietary  trading  positions held for resale
to customers and portfolio positions held for capital appreciation, all of which
are valued at fair value. The fair values of the portfolio  positions  generally
are based on listed market prices. If listed market prices are not indicative of
fair  value or if  liquidating  the  Company's  positions  would  reasonably  be
expected  to impact  market  prices,  fair  value is  determined  based on other
relevant factors. Among the factors considered by management in determining fair
value of the portfolio positions are the financial condition,  asset composition
and operating  results of the issuer,  the long-term  business  potential of the
issuer and other factors  generally  pertinent to the valuation of  investments.
The fair value of these  investments  are subject to a high degree of volatility
and may be susceptible to significant fluctuation in the near term.

                                        7


<PAGE>



     Securities  owned and  securities  sold,  not yet  purchased as of June 30,
2001, consist of the following (in 000's):

                                                                   Sold,
                                                                  Not Yet
                                                      Owned      Purchased
                                                      -----      ---------
Marketable equity securities:
   Portfolio positions of
      greater than 5% of
      outstanding common stock:
        Cortech, Inc.(1,451,200 shares)             $  5,311      $    -
        Gish Biomedical, Inc.(587,300 shares)            517           -
        Star Buffet, Inc. (294,000 shares)               876           -
        Golf Rounds.com, Inc.(189,600 shares)            182           -
        General Devices, Inc.(316,558 shares)             63           -
   All other portfolio positions                         936         212
   Held for resale to customers                          115           7
                                                     -------      ------
Fair value                                           $ 8,000      $  219
                                                     =======      ======

     Securities  owned  which are valued at amounts  lower  than  listed  market
prices at June 30, 2001 amounted to $6,073,000.

4.   Income taxes
     ------------

     The  components  of income tax expense  for the three and six months  ended
June 30, 2001 and 2000 are as follows:

                                        ($000 Omitted)
                              Three Months          Six Months
                             Ended June 30,        Ended June 30,
                             --------------        --------------
                              2001    2000          2001    2000
                              ----    ----          ----    ----

Federal-Current              $  -     $  -          $  -    $  -
State-Current                   2        6             3       9
Deferred                        -        -             -       -
                             ----     ----          ----    ----

Total                        $  2     $  6          $  3    $  9
                             ====     ====          ====    ====



                                        8

<PAGE>



     Total  income tax expense for the three and six months  ended June 30, 2001
and 2000 is different from the amounts  computed by  multiplying  total earnings
before income taxes by the statutory Federal income tax rate of 34%. The reasons
for these differences and the related tax effects are:



                                            ($000 Omitted)     ($000 Omitted)
                                             Three Months        Six Months
                                            Ended June 30,     Ended June 30,
                                          -----------------   ----------------
                                            2001     2000      2001      2000
                                            ----     ----      ----      ----

Income tax expense computed at
   statutory rates on total earnings
     before income taxes                   ($ 70)   ($ 96)     $ 76      $367
Increase (decrease) in tax from:
   Valuation allowance on net
     operating loss carryforward              70       96     (  76)    ( 367)
   State income tax, net of Federal
     benefit                                   2        6         3         9
                                            ----     ----      ----      ----

         Total                              $  2     $  6      $  3      $  9
                                            ====     ====      ====      ====


5.   Capital Stock Activity
     ----------------------

        Common Stock Repurchases
        ------------------------

     In February 2000 the Board of Directors approved a plan to repurchase up to
200,000 shares of the Company's  common stock at prices deemed  favorable in the
open  market  or  in  privately   negotiated   transactions  subject  to  market
conditions,  the Company's  financial position and other  considerations  ("2000
Plan").

     In March 2001,  the Board of Directors  approved a plan to repurchase up to
an  additional  150,000  shares of the  Company's  common stock at prices deemed
favorable in the open market or in privately negotiated  transactions subject to
market conditions,  the Company's  financial position and other  considerations.
For the six months ended June 30, 2001 the Company repurchased 66,810 shares and
returned  these shares to the status of authorized  and  unissued.  These shares
were  repurchased  under the 2000  Plan and the  Company  can  still  repurchase
approximately  19,000 shares under the 2000 Plan. None of the designated  shares
under the 2001 Plan have been repurchased as of June 30, 2001.

                                        9

<PAGE>

        Common Stock Options
        --------------------

     During the six months  ended June 30, 2000,  21,000  shares of common stock
were  issued at $2.25 per share due to the  exercise  of options  which had been
granted in 1995. Since June 30, 2000 there were no outstanding options.

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

     A management  fee of $15,200 per month is paid to the Company by affiliates
for management  services  performed by the Company on behalf of the  affiliates.
These services include corporate governance, financial management and accounting
services.






                                       10

<PAGE>




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

Liquidity and Capital Resources
-------------------------------

     Kent Financial Services, Inc. (the "Company") had cash and cash equivalents
(U.S.  Treasury  bills  with  original  maturities  of  ninety  days or less) of
approximately  $4 million and securities  owned of  approximately  $8 million at
June 30, 2001. Substantially all securities are owned by AVF. Securities carried
at fair value of $6,073,000 were valued based on management's  estimates.  These
securities  are subject to a high degree of volatility and may be susceptible to
significant  fluctuation in the near term. The remainder of the securities owned
are valued at quoted market prices.

     Net cash provided by  operations  was $476,000 in the six months ended June
30, 2001 compared to net cash used in operations  of  approximately  $697,000 in
the  comparable  period of 2000.  Net cash  provided by  operations  for the six
months  ended  June 30,  2001  increased  from  the  comparable  period  in 2000
principally  from the change in  securities  owned offset by the decrease in net
income.  Unrealized  gains on  securities  owned are  included in the results of
operations but do not generate cash flows from operations.

     Net cash used in financing  activities  of $277,000 and $290,000 in the six
month periods ended June 30, 2001 and 2000,  respectively,  was comprised of the
purchase of Company common stock, which was subsequently  retired,  and payments
on the mortgage  loan  collateralized  by the Company's  headquarters  building.
Additionally,  in the six months ended June 30, 2000 the Company  issued  21,000
shares of common  stock in  connection  with the  exercise  of options  from its
non-qualified stock option plan for proceeds of $47,000.

     The  Company   believes  that  its  liquidity  is  sufficient   for  future
operations.




                                       11

<PAGE>

Results of Operations
---------------------

     The Company incurred a net loss of $209,000, or $.12 basic and diluted loss
per share,  for the three months  ended June 30, 2001  compared to a net loss of
$289,000 or $.16 basic and diluted loss per share, for the comparable quarter in
2000.  For the six months ended June 30,  2001,  net income was $221,000 or $.13
basic and diluted  earnings per share,  compared to net income of  $1,070,000 or
$.57 basic and diluted earnings per share, for the comparable period in 2000.

     Total  brokerage  income  (consisting of brokerage  commissions and trading
gains) for the three  months  ended June 30,  2001 was  $468,000,  a decrease of
$267,000,  or 36%, from $735,000 in the comparable 2000 period.  Total brokerage
income was  $954,000  for the six  months  ended June 30,  2001,  a decrease  of
$1,882,000 or 66% from  $2,836,000 for the six month period ended June 30, 2000.
Brokerage  expenses  (including  all fixed and variable  expenses)  decreased by
$177,000,  or 33%, from $531,000 in the quarter ended June 30, 2000, to $354,000
for the quarter  ended June 30,  2001.  For the six months  ended June 30, 2001,
brokerage  expenses were  $697,000  compared to  $1,831,000  for the  comparable
period in the prior year, a decrease of $1,134,000 or 62%. Net brokerage  income
of $114,000 for the three months  ended June 30, 2001  decreased  $90,000 or 44%
from  $204,000 for the same period in 2000.  For the six month period ended June
30, 2001, net brokerage income was $257,000,  compared to $1,005,000 for the six
months ended June 30, 2000, a decrease of $748,000 or 74%.

     The decrease in total brokerage  income,  total  brokerage  expense and net
brokerage  income for the quarter and six months ended June 30, 2001 compared to
the  comparable  periods of 2000 was due to  decreased  activity  by the brokers
employed  at T. R.  Winston  &  Company,  Inc.,  which was  consistent  with the
activity in the equity markets in general.

     Net investing gains were $122,000 and $676,000 for the three and six months
ended June 30, 2001,  respectively,  compared to net investing gains (losses) of
($271,000)  and $569,000 for the  comparable  periods in 2000. The net investing
gains for the three  months ended June 30, 2001 related to a decrease of $48,000
in the fair value of portfolio  positions in which the Company owns greater than
five  percent  of the  common  stock  outstanding  offset  by net  realized  and
unrealized gains in other securities of approximately $170,000.



                                       12

<PAGE>


     The majority of the net  investing  gains for the six months ended June 30,
2001  related to an  increase  of  approximately  $255,000  in the fair value of
portfolio  positions  in which the Company owns greater than five percent of the
common stock  outstanding.  This increase along with net realized and unrealized
gains in other securities held of approximately  $421,000  accounted for the six
month investing gains.

     A management  fee of $15,200 per month is paid to the Company by affiliates
for management  services  performed by the Company on behalf of the  affiliates.
These services include corporate governance, financial management and accounting
services.

     Interest,  dividends  and other  income was  $167,000  and $402,000 for the
three and six months ended June 30, 2001, respectively, compared to $269,000 and
$517,000 for the three and six months ended June 30, 2000,  respectively.  These
decreases were the result of lower interest income earned due to lower available
interest rates on the Company's cash equivalents. Also, during 2000 AVF received
dividends on one of it's  positions  that amounted to $42,000 and $87,000 during
the three and six months ended June 30, 2000,  respectively.  This  position was
sold during the third quarter of 2000.

     General and  administrative  expenses  were  $560,000  and $415,000 for the
quarters ended June 30, 2001 and 2000, respectively,  an increase of $145,000 or
35%. The increase in general and  administrative  expense for the quarter  ended
June 30,  2001 versus the quarter  ended June 30,  2000 was due  principally  to
provisions of $114,000 for non-marketable  investments  included in other assets
and increases in legal and accounting fees.

     For the six  month  periods  ended  June 30,  2001 and  2000,  general  and
administrative expenses were $989,000 and $888,000 respectively,  an increase of
$101,000 or 11%.  This  increase for the six months ended June 30, 2001 compared
to the same period in 2000 is also due principally to provisions of $123,000 for
non-marketable  investments  included in other assets and increases in legal and
accounting fees offset by decreases in various other administrative expenses.




                                       13

<PAGE>


PART II - OTHER INFORMATION
-------   -----------------

Item 1. - Legal Proceedings
------    -----------------

Environmental Matters - Texas American Petrochemicals, Inc. ("TAPI")
--------------------------------------------------------------------

     In May  2001,  the  State  of  Texas  notified  TAPI  and a group  of other
potentially  responsible parties ("PRP's) that the State of Texas incurred costs
for  remedial  investigation,  feasibility  studies  and  remedial  design at an
allegedly contaminated site in Texas known as the Sonics International Superfund
Site,  and that it would  join TAPI and the other  PRP's as parties to a pending
lawsuit in the state courts of Texas to recover its costs and  attorney's  fees,
which are alleged to be approximately $203,000. In July 2001, the State of Texas
served the  complaint  in State of Texas v.  Sonics  International,  Inc. et al,
GV002838,  Travis  County,  Texas  District  Court,  by serving the Secretary of
State.  Due to the  uncertainty  and cost of  litigation,  TAPI and the  Company
agreed to a  proposed  settlement  with the other  PRP's,  in which TAPI and the
Company agreed to pay approximately  $17,000 towards an overall  settlement with
the State of Texas even while denying liability.  This settlement agreement with
the other  PRP's  will  become  effective  if, as and when the PRP's as a group,
agree to pay at least  $180,000 of the  proposed  $203,000  settlement.  If that
occurs,  then TAPI and the  Company,  as well as the  participating  PRP's  will
execute a written settlement  agreement with the State of Texas and will receive
a release and contribution protection from the State of Texas.


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

  (a)   Exhibits
        --------

        10.2     Employment Agreement, dated  July 1, 2001  by and  between Kent
                 Financial  Services,  Inc.,  and Paul O. Koether.

        10.3     Employment Agreement  dated  July 1, 2001  by and  between Kent
                 Financial  Services,  Inc.,  and John W. Galuchie, Jr.

  (b)   Reports on Form 8-K
        -------------------

        No  reports on  Form 8-K were filed  during the  quarter for  which this
        report is being filed.

                                       14


<PAGE>


                                   SIGNATURES


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


                                         KENT FINANCIAL SERVICES, INC.




Dated: August 6, 2001                    By: /s/ John W. Galuchie, Jr.
                                             --------------------------
                                             John W. Galuchie, Jr.
                                             Executive Vice President




























                                       15