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:  March 31, 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 April 30,  2001,  the issuer had  1,742,250  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)


                                                                    March 31,
                                                                      2001
                                                                   -----------
Assets
------

Cash and cash equivalents                                           $  3,595
Securities owned                                                       9,015
Receivable from clearing broker                                          209
Property and equipment:
     Land and building                                                 1,447
     Office furniture and equipment                                      277
                                                                    --------
                                                                       1,724
     Accumulated depreciation                                      (     629)
                                                                    --------
     Net property and equipment                                        1,095
                                                                    --------
Other assets                                                             196
                                                                    --------
         Total assets                                               $ 14,110
                                                                    ========

Liabilities and Stockholders' Equity

Liabilities:
   Securities sold, not yet purchased                               $      2
   Accounts payable and accrued expenses                               1,225
   Mortgage payable                                                      687
   Accrual for previously discontinued operations                        273
                                                                    --------
         Total liabilities                                             2,187
                                                                    --------

Contingent liabilities (Note 4)

Stockholders' equity:
   Preferred stock without par value, 500,000
     shares authorized; none outstanding                                   -
   Common stock, $.10 par value, 4,000,000
     shares authorized; 1,742,250 outstanding                            174
   Additional paid-in capital                                         13,941
   Accumulated deficit                                             (   2,192)
                                                                    --------
         Total stockholders' equity                                   11,923
                                                                    --------
         Total liabilities and stockholders' equity                 $ 14,110
                                                                    ========





          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
                                                                  March 31,
                                                             2001         2000
                                                            ------       ------

Revenues:
    Brokerage commissions                                   $  329       $  592
    Principal transactions:
      Trading                                                  157        1,509
      Investing gains                                          554          840
    Management fee income                                       46           45
    Interest, dividends and other                              235          249
                                                            ------       ------
                                                             1,321        3,235
                                                            ------       ------

Expenses:
    Brokerage                                                  343        1,300
    General, administrative and other                          429          474
    Interest                                                   118           99
                                                            ------       ------
                                                               890        1,873
                                                            ------       ------

Earnings before income taxes                                   431        1,362
Provision for income taxes                                       2            3
                                                            ------       ------
Net earnings                                                $  429       $1,359
                                                            ======       ======

Basic and diluted net earnings per
  common share                                              $  .24       $  .72
                                                            ======       ======

Weighted average number of common
  shares outstanding (in 000's)                              1,765        1,888
                                                            ======       ======




          See accompanying notes to consolidated financial statements.

                                       3

<PAGE>



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

                                                          Three Months Ended
                                                               March 31,
                                                         --------------------
                                                          2001          2000
                                                         ------        ------

Cash flows from operating activities:
    Net earnings                                        $   429       $ 1,359
    Adjustments to reconcile net earnings
      to net cash used in operating activities:
       Depreciation and amortization                         14            19
       Change in unrealized gains
         on securities owned                           (    617)     (    832)
    Change in operating assets and liabilities:
       Change in securities owned                      (    163)     (    723)
       Change in receivable from
         clearing broker                                    472      (    328)
       Change in accounts payable and
         accrued expenses                              (    193)     (    135)
       Other, net                                             6             9
                                                        -------       -------
       Net cash used in
         operating activities                          (     52)     (    631)
                                                        -------       -------

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

Cash flows from financing activities:
    Purchase of common stock                           (    158)     (    165)
    Payments on debt                                   (      3)     (      2)
                                                        -------       -------
       Net cash used in financing
         activities                                    (    161)     (    167)
                                                        -------       -------

Net decrease in cash
  and cash equivalents                                 (    217)     (    798)
Cash and cash equivalents at
  beginning of period                                     3,812         4,043
                                                        -------       -------
Cash and cash equivalents at end of
  period                                                $ 3,595       $ 3,245
                                                        =======       =======

Supplemental disclosure of cash flow
  information:
      Cash paid for:
         Interest                                       $   118       $    99
                                                        =======       =======
         Taxes                                          $    18       $     1
                                                        =======       =======


          See accompanying notes to consolidated financial statements.

                                       4





<PAGE>



                 KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                             MARCH 31, 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 March 31, 2001
and for the three  month  periods  ended  March 31,  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  years'  financial
statements to conform to the current years' presentation.

     The results of operations  for the three month periods ended March 31, 2001
and 2000 are not  necessarily  indicative  of the results to be expected for the
entire year or for any other period.

                                       5


<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 March 31,
2001, Winston had net capital, as defined, of approximately $600,000,  which was
approximately $500,000 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 March 31, 2001, AVF held 19 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;  9.2% of Star Buffet,
Inc.,  a company  that is engaged  in the  restaurant  industry;  and 5% of Golf
Rounds.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.  Securities
owned and securities  sold,  not yet purchased as of March 31, 2001,  consist of
the following (in 000's):


                                        6

<PAGE>



                                                                   Sold,
                                                                  Not Yet
                                                  Owned         Purchased
                                                  -----         ---------
Marketable equity securities:
  Portfolio positions of
     greater than 5% of
     outstanding common stock:
          Cortech, Inc. (725,600 shares)         $5,326         $    -
          Gish Biomedical, Inc. (587,300 shares)    705              -
          Star Buffet (270,000 shares)              675              -
          Golf Rounds.com, Inc. (189,600 shares)    171              -
          General Devices, Inc. (316,558 shares)     63              -
  All other portfolio positions                   1,993              -
  Held for resale to customers                       82              2
                                                 ------         ------
           Fair value                            $9,015         $    2
                                                 ======         ======

     Securities  owned which are not valued at listed market prices at March 31,
2001 amounted to $6,265,000.


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

     The components of income tax expense are as follows:

                                                    ($000 Omitted)
                                            Three Months Ended March 31,
                                            ----------------------------
                                             2001                  2000
                                            ------                ------

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

         Total                               $  2                  $  3
                                             ====                  ====


     Total income tax expense for the three months ended March 31, 2001 and 2000
are 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)
                                                         Three Months Ended
                                                              March 31,
                                                        --------------------
                                                        2001            2000
                                                        ----            ----
Income tax expense computed at
   statutory rates on total earnings
      before income taxes                              $ 147           $ 463
Increase (decrease) in tax from:
   Valuation allowance on net operating
      loss carryforward                               (  147)         (  463)
   State income tax, net of Federal benefit                2               3
                                                       -----           -----

      Total tax expense                                $   2           $   3
                                                       =====           =====


                                        7

<PAGE>




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 new 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 three months ended March 31, 2001 the Company  repurchased 40,010 shares
and returned these shares to the status of authorized and unissued shares. These
shares were repurchased under the 2000 Plan and the Company can still repurchase
approximately  46,000 shares under the 2000 Plan. None of the designated  shares
under the 2001 Plan have been repurchased as of March 31, 2001.


                                        8

<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 an original  maturity of ninety days or less) of $3.6
million and securities owned of $9 million at March 31, 2001.  Substantially all
securities are owned by AVF. Securities carried at fair value of $6,265,000 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 used in operations was $52,000 in the three months ended March 31,
2001  compared to net cash used in  operations  of  $631,000  in the  comparable
period of 2000. Net cash used in operations for the three months ended March 31,
2001 decreased from the comparable period in 2000 principally from the change in
securities  owned and the change in the  receivable  from clearing  broker.  The
decrease  in net  income  in the first  quarter  of 2001  compared  to the first
quarter of 2000 was offset by the change in unrealized gains on securities owned
over the same periods.  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 $161,000 and $167,000 in the three
month periods ended March 31, 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. In
March 2001 the Company  announced  that it would  purchase  up to an  additional
150,000  shares of the Company's  common stock at prices deemed  favorable  from
time to time in the open market or in privately negotiated  transactions subject
to market conditions, the Company's financial position and other considerations.
The Company believes that its liquidity is sufficient for future operations.


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

     The Company had net income of $429,000,  or $.24 basic and diluted earnings
per share,  for the three months ended March 31, 2001  compared to net income of
$1,359,000  or $.72 basic and diluted  earnings  per share,  for the  comparable
period in 2000.





                                        9

<PAGE>




     Total  brokerage  income  (consisting  of brokerage  commissions,  fees and
trading  gains)  for the three  months  ended  March 31,  2001 was  $486,000,  a
decrease of $1,615,000,  or 77%, from approximately $2,101,000 in the comparable
2000 period.  Brokerage  expenses  (including  all fixed and variable  expenses)
decreased by $957,000,  or 74%,  from  $1,300,000 in the quarter ended March 31,
2000,  to $343,000  for the three months  ended March 31,  2001.  Net  brokerage
income was  $143,000  for the three months ended March 31, 2001 and $801,000 for
the same  period in 2000,  a  decrease  of  $658,000  or 82%.  The  decrease  in
brokerage commission income, principal trading gains and total brokerage expense
for the quarter ended March 31, 2001 compared to the comparable  quarter of 2000
was due to  decreased  activity  by the  brokers  employed  at T. R.  Winston  &
Company,  Inc.,  which was  consistent  with  declines in the equity  markets in
general.

     Net  investing  gains were  $554,000  for the three  months ended March 31,
2001,  compared to net investing gains of $840,000 for the comparable  period in
2000.  The  decrease in net  investing  gains from the three month  period ended
March 31, 2001 to the  comparable  period in 2000  reflected  the decline in the
investment   valuation  of  portfolio  positions  and  the  decreased  level  of
investment  activity,  which was also  consistent  with  declines  in the equity
markets in general.

     Interest, dividend and other income was $235,000 for the three months ended
March 31, 2001, compared to $249,000 for the three months ended March 31, 2000 a
decrease of $14,000 or 67%. This decrease was a result of a decrease in interest
received due to lower invested  balances of the Company's cash  equivalents  and
lower yields on investments.

     General,  administrative  and other expenses were $429,000 and $474,000 for
the quarters ended March 31, 2001 and 2000, respectively,  a decrease of $45,000
or 9%. This decrease was a result of reduced compensation expense.





                                       10

<PAGE>





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

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.




                                       11

<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:  May 11, 2001                          By: /s/ John W. Galuchie, Jr.
                                                  ----------------------------
                                                  John W. Galuchie, Jr.
                                                  Executive Vice President


                                       13