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:     September 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 October 31, 2001,  the issuer had  1,702,315  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)

                                                           September 30,
                                                                2001
                                                           -------------
Assets
------

Cash and cash equivalents                                    $  3,679
Securities owned                                                7,609
Receivable from clearing broker                                   289
Property and equipment, net                                     1,071
Other assets                                                       76
                                                             --------
          Total assets                                       $ 12,724
                                                             ========

Liabilities and Stockholders' Equity
------------------------------------


Liabilities:
   Accounts payable and accrued expenses                     $    878
   Mortgage payable                                               683
   Accrual for previously discontinued operations                 211
                                                             --------
          Total liabilities                                     1,772
                                                             --------

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; 1,715,004 outstanding                     172
   Additional paid-in capital                                  13,829
   Accumulated deficit                                      (   3,049)
                                                             --------
     Total stockholders' equity                                10,952
                                                             --------
     Total liabilities and stockholders' equity              $ 12,724
                                                             ========




           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
                                                       September 30,
                                                    ------------------
                                                     2001         2000
                                                     ----         ----

Revenues:
     Brokerage commissions                          $ 226        $ 382
     Principal transactions:
       Trading                                          -          186
       Investing losses                            (  353)      (   37)
     Management fee income                             46           45
     Interest, dividends and other                    188          248
                                                    -----        -----
                                                      107          824
                                                    -----        -----
Expenses:
     Brokerage                                        226          387
     General, administrative and other                444          441
     Interest                                          86          118
                                                    -----        -----
                                                      756          946
                                                    -----        -----
Loss before income taxes                           (  649)      (  122)
Provision for income taxes                              1            -
                                                    -----        -----
Net loss                                           ($ 650)      ($ 122)
                                                    =====        =====

Basic and diluted net loss per
  common share                                     ($ .38)      ($ .07)
                                                    =====        =====

Weighted average number of common
  shares outstanding (in 000's)                     1,715        1,839
                                                    =====        =====










          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)



                                                    Nine Months Ended
                                                      September 30,
                                                    -----------------
                                                     2001       2000
                                                     ----       ----

Revenues:
     Brokerage commissions                          $  939    $1,453
     Principal transactions:
       Trading                                         241     1,951
       Investing gains                                 323       532
     Management fee income                             138       135
     Interest, dividends and other                     590       765
                                                    ------    ------
                                                     2,231     4,836
                                                    ------    ------

Expenses:
     Brokerage                                         923     2,218
     General, administrative and other               1,433     1,329
     Interest                                          300       332
                                                    ------    ------
                                                     2,656     3,879
                                                    ------    ------

Earnings (loss) before income taxes                (   425)      957
Provision for income taxes                               4         9
                                                    ------    ------
Net earnings (loss)                                ($  429)   $  948
                                                    ======    ======

Basic and diluted net earnings (loss)
  per common share                                 ($  .25)   $  .51
                                                    ======    ======

Weighted average number of common
  shares outstanding (in 000's)                      1,714     1,859
                                                    ======    ======










          See accompanying notes to consolidated financial statements.


                                       4

<page>


                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 ($000 Omitted)

                                                       Nine Months Ended
                                                          September 30,
                                                     ---------------------
                                                      2001           2000
                                                      ----           ----

Cash flows from operating activities:
    Net earnings (loss)                              ($  429)      $   948
    Adjustments to reconcile net
     earnings (loss) to net cash provided
     by operating activities:
      Depreciation and amortization                       39            57
      Change in unrealized gains on
        securities owned                             (   334)     (    411)
      Provision for non-marketable
        Investments                                      123             -
    Changes in operating assets and
     liabilities:
      Change in securities owned                         958           235
      Change in receivable from
        clearing broker                                   28      (    156)
      Change in accounts payable and
        accrued expenses                             (   128)     (    288)
      Other, net                                     (   106)           59
                                                      ------       -------
      Net cash provided by
        operating activities                             151           444
                                                      ------       -------

Cash flows from investing activities-
    Purchase of equipment                            (     4)     (      7)
                                                      ------       -------

Cash flows from financing activities:
    Purchase of common stock                         (   273)     (    369)
    Issuance of common stock                               -            47
    Payments on debt                                 (     7)     (      7)
                                                      ------       -------
      Net cash used in financing
        activities                                   (   280)     (    329)
                                                      ------       -------

Net increase(decrease) in cash
  and cash equivalents                               (   133)          108
Cash and cash equivalents at
  beginning of period                                  3,812         4,043
                                                      ------       -------

Cash and cash equivalents at end of
  period                                             $ 3,679       $ 4,151
                                                     =======       =======
Supplemental disclosure of cash flow
  information:
     Cash paid for:
       Interest                                      $   300       $   332
                                                     =======       =======
       Taxes                                         $    18       $     3
                                                     =======       =======

           See accompanying notes to consolidated financial statements.


                                       5

<page>

                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                           SEPTEMBER 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 September 30,
2001 and for the three and nine month periods ended  September 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
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 nine  month  periods  ended
September 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 September
30, 2001, Winston had net capital, as defined, of approximately $400,000,  which
was approximately $300,000 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 September 30, 2001, AVF held 13 equity investments,  of which
five  consisted  of owning more than 5% of the  investee's  outstanding  capital
stock. AVF owns  approximately 40% 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% 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
     ----------------

     Securities   owned  consist  of  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
position  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 as of September  30, 2001,  consist of the  following (in
000's):




Marketable equity securities:
      Portfolio positions of
         greater than 5% of
         outstanding common stock:
              Cortech, Inc. (1,478,000 shares)                      $ 5,395
              Star Buffet, Inc. (270,900 shares)                        704
              Gish Biomedical, Inc. (587,300 shares)                    366
              GolfRounds.com, Inc. (189,600 shares)                     121
              General Devices, Inc. (316,558 shares)                     63
      All other portfolio positions                                     960
                                                                    -------
               Fair value                                           $ 7,609
                                                                    =======


     Securities  owned  which are valued at amounts  lower  than  listed  market
prices at September 30, 2001 amounted to $5,945,000.


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

     The  components  of income tax expense for the three and nine months  ended
September 30, 2001 and 2000 are as follows (in 000's):


                       Three Months         Nine Months
                           Ended              Ended
                       September 30,       September 30,
                       ------------        ------------

                       2001    2000        2001    2000
                       ----    ----        ----    ----

Federal - Current      $  -    $  -        $  -    $  -
State - Current           1       -           4       9
Deferred                  -       -           -       -
                       ----    ----        ----    ----

Total                  $  1    $  -        $  4    $  9
                       ====    ====        ====    ====













                                        8


<page>


     Total income tax expense for the three and nine months ended  September 30,
2001 and 2000 is  different  from the  amounts  computed  by  multiplying  total
earnings (loss) before income taxes by the statutory  Federal income tax rate of
34%.  The  reasons  for these  differences  and the  related tax effects are (in
000's):


                                                Three Months       Nine Months
                                                   Ended              Ended
                                                September 30,     September 30,
                                               --------------    --------------

                                               2001      2000     2001     2000
                                               ----      ----     ----     ----

Income tax expense computed at
      statutory rates on total earnings
          (loss) before income taxes         ($ 221)    ($ 41)  ($ 145)   $ 325
Increase (decrease) in tax from:
      Valuation allowance on net operating
          loss carryforward                     221        41      145    ( 325)
      State income tax, net of Federal
          Benefit                                 1         -        4        9
                                               ----      ----     ----     ----

             Total                            $   1     $   -    $   4    $   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
("2001  Plan").  For the nine  months  ended  September  30,  2001  the  Company
repurchased  67,256 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  18,000 shares under the 2000 Plan. None of
the designated  shares under the 2001 Plan have been repurchased as of September
30, 2001.



                                       9

<page>




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

     During  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. With the
exercise of these options, there are no remaining options outstanding.


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

     The  Company  had cash and  cash  equivalents  (U.S.  Treasury  bills  with
maturities  at date of purchase of ninety  days or less) of  approximately  $3.7
million and  securities  owned of  approximately  $7.6 million at September  30,
2001.  Substantially all securities are owned by AVF. Securities carried at fair
value  of  $5,945,000  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  $151,000  and  $444,000 in the nine
months ended  September  30, 2001 and 2000,  respectively.  Net cash provided by
operations  for the nine months  ended  September  30, 2001  decreased  from the
comparable  period in 2000 principally from the decrease in net income offset by
the  change in  securities  owned.  Unrealized  losses 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 $280,000 and $329,000 in the nine
month periods ended September 30, 2001 and 2000, respectively,  was comprised of
the purchase of the Company's common stock, which was subsequently  retired, and
payments on the  mortgage  loan  collateralized  by the  Company's  headquarters
building.  Additionally, in the nine months ended September 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.

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

     The Company incurred a net loss of $650,000, or $.38 basic and diluted loss
per share,  for the three months ended September 30, 2001 compared to a net loss
of $122,000 or $.07 basic and diluted loss per share, for the comparable quarter
in 2000. For the nine months ended September 30, 2001, the net loss was $429,000
or $.25 basic and diluted loss per share,  compared to net income of $948,000 or
$.51 basic and diluted income per share, for the comparable period in 2000.


                                       11

<page>


     Total  brokerage  income  (consisting of brokerage  commissions and trading
gains) for the three months ended September 30, 2001 was $226,000, a decrease of
$342,000,  or 60%, from $568,000 in the comparable 2000 period.  Total brokerage
income was $1,180,000  for the nine months ended  September 30, 2001, a decrease
of $2,224,000 or 65% from  $3,404,000 for the nine month period ended  September
30,  2000.  Brokerage  expenses  (including  all  fixed and  variable  expenses)
decreased by $161,000,  or 42%, from $387,000 in the quarter ended September 30,
2000, to $226,000 for the quarter ended  September 30, 2001. For the nine months
ended  September  30,  2001,   brokerage  expenses  were  $923,000  compared  to
$2,218,000 for the comparable period in the prior year, a decrease of $1,295,000
or 58%. Net  brokerage  income was $0 for the three months ended  September  30,
2001 compared to $181,000 for the same period in 2000. For the nine month period
ended  September  30,  2001,  net  brokerage  income was  $257,000,  compared to
$1,186,000 for the nine months ended  September 30, 2000, a decrease of $929,000
or 78%.

     The decrease in total brokerage  income,  total  brokerage  expense and net
brokerage  income for the  quarter  and nine  months  ended  September  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.  While the events of  September  11,
2001 did not have a direct impact on the Company,  they have  contributed to the
volatility in the equity markets and the sluggishness of the overall economy.

     Net investing gains (losses) were ($353,000) and $323,000 for the three and
nine months ended  September 30, 2001,  respectively,  compared to net investing
gains (losses) of ($37,000) and $532,000 for the comparable periods in 2000. The
net investing  losses for the three months ended September 30, 2001 related to a
decrease  of  $333,000  in the fair value of  portfolio  positions  in which the
Company owns greater  than five  percent of the common stock  outstanding  along
with net realized and  unrealized  losses in other  securities of  approximately
$20,000.

     The majority of the net investing gains for the nine months ended September
30, 2001 related to net realized and unrealized  gains in other  securities held
of approximately  $401,000 offset by a decrease of approximately  $78,000 in the
fair value of  portfolio  positions  in which the Company owns greater than five
percent of the common stock outstanding.

     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.


                                       12

<page>

     Interest,  dividends  and other  income was  $188,000  and $590,000 for the
three and nine  months  ended  September  30,  2001,  respectively,  compared to
$248,000 and $765,000  for the three and nine months ended  September  30, 2000,
respectively.  These decreases were a 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
$17,000 and $104,000  during the three and nine months ended September 30, 2000,
respectively. This position was sold during the third quarter of 2000.

     General and  administrative  expenses  were  $444,000  and $441,000 for the
quarters ended September 30, 2001 and 2000, respectively, an increase of $3,000.

     For the nine month period ended  September  30, 2001 and 2000,  general and
administrative  expenses  were  $1,433,000  and  $1,329,000,   respectively,  an
increase of $104,000 or 8%. This  increase for the nine months  ended  September
30, 2001 compared to the same period in 2000 is 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 January, 1988, an inactive subsidiary of the Company, TAPI, was notified
by  environmental  regulators  in  Texas  ("Texas  Regulators")  that  it  was a
potentially  responsible party ("PRP") in connection with a hazardous waste site
in the state.  TAPI  advised  the Texas  Regulators  that TAPI had no assets and
could not conduct a remedial investigation of the site. Based on information and
belief,  the  Company  understands  a  remedial  action  has been  developed  to
stabilize any contaminants. The Company does not believe it has any liability in
connection with this environmental matter.

     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  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 paid approximately  $17,000 towards an overall settlement with the State
of Texas even while denying liability.  This settlement agreement with the other
PRP's became  effective on September 26, 2001. TAPI and the Company,  as well as
the participating  PRP's executed a written settlement  agreement with the State
of Texas and received a release and  contribution  protection  from the State of
Texas.

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

     The Company held its Annual  Meeting of  Stockholders  on November 6, 2001.
Management's  nominees,  Messrs.  Paul O. Koether,  Mathew E. Hoffman,  Casey K.
Tjang,  M.  Michael  Witte,  and Qun Yi  Zheng,  were  elected  to the  Board of
Directors.




                                       14

<page>


     The following is a tabulation for all nominees:

                                  For                    Withheld
                               --------                  --------

       Paul O. Koether         975,548                       -
       Mathew E. Hoffman       975,548                       -
       Casey K. Tjang          975,548                       -
       M. Michael Witte        975,548                       -
       Qun Yi Zheng            975,548                       -

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

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

          None

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

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




























                                       15

<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: November 13, 2001                     By: /s/ John W. Galuchie, Jr.
                                                 --------------------------
                                                 John W. Galuchie, Jr.
                                                 Executive Vice President































                                       16