----

----

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

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

|   | For the transition period from: ________ to ________. |
|--------|-------------------------------------------------------|

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

----

|   | Page   |
|--------|--------|
|   | Number |

| PART I. FINANCIAL INFORMATION |
|-------------------------------|

| Item 1.  Financial Statements                                      |   |
|------------------------------------------------------------------------------|--------|
|                                                                         |   |
| Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011        | 3      |
|                                                                         |   |
| Consolidated Statements of Operations for the                                |   |
| Three and Six Months Ended June 30, 2012 and 2011                            | 4      |
|                                                                         |   |
| Consolidated Statements of Cash Flows for the                                |   |
| Six Months Ended June 30, 2012 and 2011                                      | 5      |
|                                                                         |   |
| Notes to Consolidated Financial Statements                                   | 6      |
|                                                                         |   |
| Item 2.  Management's Discussion and Analysis of Financial         |   |
| Condition and Results of Operations                                          | 11     |
|                                                                         |   |
| Item 3.  Quantitative and Qualitative Disclosure About Market Risk | 15     |
|                                                                         |   |
| Item 4.  Controls and Procedures                                   | 15     |

| Item 1.  Legal Proceedings                                           | 15     |
|--------------------------------------------------------------------------------|--------|
|                                                                           |   |
| Item 1a.  Risk Factors                                               | 16     |
|                                                                           |   |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds | 16     |
|                                                                           |   |
| Item 3.  Defaults Upon Senior Securities                             | 16     |
|                                                                           |   |
| Item 4.  Mine Safety Disclosures                                     | 16     |
|                                                                           |   |
| Item 5.  Other Information                                           | 16     |
|                                                                           |   |
| Item 6.  Exhibits                                                    | 16     |
|                                                                           |   |
| Signatures                                                                     | 18     |

----

| KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES                                |   |
|-------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                   |   |
|                                                                          |   |   |   |   |   |   |
|                                                                          |   | June 30, 2012 (Unaudited) |   |   | December 31, 2011 |   |
| ASSETS                                                                        |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |
| Cash and cash equivalents                                                     |   | $ | 1,409,243 |   |   | $ | 1,560,021 |   |
| Marketable securities                                                         |   |   | 5,350 |   |   |   | 8,835 |   |
| Accounts receivable                                                           |   |   | 94,389 |   |   |   | 116,855 |   |
| Prepaid expenses and other current assets                                     |   |   | 12,121 |   |   |   | 18,432 |   |
| Real estate assets:                                                           |   |   |   |   |   |   |   |   |
|   Land                                                              |   |   | 1,280,000 |   |   |   | 1,280,000 |   |
|   Building and improvements (net of accumulated depreciation        |   |   |   |   |   |   |   |   |
|     of $168,943 and $103,103)                             |   |   | 1,490,736 |   |   |   | 1,556,577 |   |
| Intangible assets (net of accumulated amortization                            |   |   |   |   |   |   |   |   |
|     of $353,128 and $215,506)                             |   |   | 1,801,368 |   |   |   | 1,938,990 |   |
| Other assets                                                                  |   |   | 21,000 |   |   |   | 21,000 |   |
|                                                                          |   |   |   |   |   |   |   |   |
|     Total assets                                          |   | $ | 6,114,207 |   |   | $ | 6,500,710 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| LIABILITIES                                                                   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                         |   | $ | 172,073 |   |   | $ | 255,025 |   |
| Below market lease value acquired (net of accumulated                         |   |   |   |   |   |   |   |   |
|   amortization of $81,954 and $50,015)                              |   |   | 687,221 |   |   |   | 719,160 |   |
| Accrued post employment obligations                                           |   |   | 864,000 |   |   |   | 864,000 |   |
|                                                                          |   |   |   |   |   |   |   |   |
|     Total liabilities                                     |   |   | 1,723,294 |   |   |   | 1,838,185 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| EQUITY                                                                        |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |
| Kent Financial Services shareholders' equity                                  |   |   |   |   |   |   |   |   |
|   Preferred stock without par value;                                |   |   |   |   |   |   |   |   |
|     500,000 shares authorized; none outstanding           |   |   | - |   |   |   | - |   |
|   Common stock, $.10 par value;                                     |   |   |   |   |   |   |   |   |
|     8,000,000 shares authorized;                          |   |   |   |   |   |   |   |   |
|     2,697,008 and 2,750,700 shares issued and outstanding |   |   | 269,701 |   |   |   | 275,070 |   |
|   Additional paid-in capital                                        |   |   | 12,384,218 |   |   |   | 12,440,796 |   |
|   Accumulated deficit                                               |   |   | (8,236,547 | ) |   |   | (8,030,367 | ) |
|   Accumulated other comprehensive loss                              |   |   | (26,459 | ) |   |   | (22,974 | ) |
|                                                                          |   |   |   |   |   |   |   |   |
|     Total equity                                          |   |   | 4,390,913 |   |   |   | 4,662,525 |   |
|                                                                          |   |   |   |   |   |   |   |   |
|     Total liabilities and equity                          |   | $ | 6,114,207 |   |   | $ | 6,500,710 |   |

----

| KENT FINANCIAL SERVICES, INC. AND SUBSIDIARIES                 |   |
|----------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                          |   |
| (UNAUDITED)                                                    |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                           |   | June 30, |   |   | June 30, |   |
|                                                           |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Revenues:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|   Rental Income                                      |   | $ | 202,586 |   |   | $ | 202,586 |   |   | $ | 405,172 |   |   | $ | 224,150 |   |
|   Tenant reimbursement                               |   |   | 15,495 |   |   |   | 2,157 |   |   |   | 30,788 |   |   |   | 2,646 |   |
|   Interest on mortgage loan                          |   |   |   |   |   |   | 5,890 |   |   |   |   |   |   |   | 5,890 |   |
|   Other income                                       |   |   | 40,421 |   |   |   | 9,476 |   |   |   | 46,921 |   |   |   | 17,108 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total revenues                         |   |   | 258,502 |   |   |   | 220,109 |   |   |   | 482,881 |   |   |   | 249,794 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Operating and maintenance expenses                 |   |   | 66,671 |   |   |   | 63,684 |   |   |   | 125,868 |   |   |   | 67,294 |   |
|   Property taxes and insurance                       |   |   | 31,230 |   |   |   | 18,917 |   |   |   | 62,486 |   |   |   | 20,837 |   |
|   General and administrative                         |   |   | 125,958 |   |   |   | 280,686 |   |   |   | 296,898 |   |   |   | 508,924 |   |
|   Depreciation and amortization                      |   |   | 101,731 |   |   |   | 101,731 |   |   |   | 203,462 |   |   |   | 112,910 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total expenses                         |   |   | 325,590 |   |   |   | 465,018 |   |   |   | 688,714 |   |   |   | 709,965 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                           |   |   | (67,088 | ) |   |   | (244,909 | ) |   |   | (205,833 | ) |   |   | (460,171 | ) |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest and dividend revenue                      |   |   |   |   |   |   | 784 |   |   |   |   |   |   |   | 3,899 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                                       |   |   | (67,088 | ) |   |   | (244,125 | ) |   |   | (205,833 | ) |   |   | (456,272 | ) |
| Provision for income tax expense                               |   |   |   |   |   |   |   |   |   |   | (347 | ) |   |   | (398 | ) |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                       |   |   | (67,088 | ) |   |   | (244,125 | ) |   |   | (206,180 | ) |   |   | (456,670 | ) |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Add: net loss attributable to noncontrolling interest          |   |   |   |   |   |   | 55,412 |   |   |   |   |   |   |   | 113,290 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Kent Financial Services shareholders' |   |   | (67,088 | ) |   |   | (188,713 | ) |   |   | (206,180 | ) |   |   | (343,380 | ) |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss):                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Unrealized gain on available for sale securities   |   |   | (7,314 | ) |   |   | (3,313 | ) |   |   | (3,485 | ) |   |   | (742 | ) |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive loss                                             |   | $ | (74,402 | ) |   | $ | (192,026 | ) |   | $ | (209,665 | ) |   | $ | (344,122 | ) |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted net loss per common share:                   |   | $ | (0.02 | ) |   | $ | (0.07 | ) |   | $ | (0.08 | ) |   | $ | (0.12 | ) |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares outstanding           |   |   | 2,699,764 |   |   |   | 2,759,074 |   |   |   | 2,715,807 |   |   |   | 2,759,074 |   |

----

|                                                                               |   |             |      |   |   |   |
|------------------------------------------------------------------------------------|--------|------------------|-----------|--------|--------|--------|
|                                                                               |   | Six Months Ended |      |
|                                                                               |   | June 30,         |      |
|                                                                               |   | 2012             |      |   | 2011   |   |
| Cash flows from operating activities:                                              |   |             |      |   |   |   |
|   Net loss                                                               |   | $                | (206,180  | )      |   | $      | (343,380 | ) |
|   Adjustments to reconcile net loss to net                               |   |             |      |   |   |   |   |   |
|    cash used in operating activities:                               |   |             |      |   |   |   |   |   |
|     Depreciation and amortization                              |   |             | 203,462   |   |   |   | 112,910 |   |
|     Amortization of below market rate lease                    |   |             | (31,939   | )      |   |   | (17,725 | ) |
|     Minority interest in subsidiaries losses                   |   |             |      |   |   |   | (113,290 | ) |
|   Changes to operating assets and liabilities:                           |   |             |      |   |   |   |   |   |
|     Change in accounts receivable                              |   |             | 22,467    |   |   |   | (63,922 | ) |
|     Change in prepaid expenses and other current assets        |   |             | 6,311     |   |   |   | (10,919 | ) |
|     Change in accounts payable and accrued expenses            |   |             | (82,952   | )      |   |   | 91,752 |   |
|                                                                               |   |             |      |   |   |   |   |   |
|      Net cash used in operating activities                |   |             | (88,831   | )      |   |   | (344,574 | ) |
|                                                                               |   |             |      |   |   |   |   |   |
| Cash flows from investing activities:                                              |   |             |      |   |   |   |   |   |
|   Mortgage loan made                                                     |   |             |      |   |   |   | (321,290 | ) |
|   Acquisition of land, buildings and improvements including              |   |             |      |   |   |   |   |   |
|     intangible assets, and net of below market leases acquired |   |             |      |   |   |   | (4,325,000 | ) |
|                                                                               |   |             |      |   |   |   |   |   |
|      Net cash used in investing activities                |   |             | -         |   |   |   | (4,646,290 | ) |
|                                                                               |   |             |      |   |   |   |   |   |
| Cash flows from financing activities:                                              |   |             |      |   |   |   |   |   |
|   Repurchase of common stock                                             |   |             | (61,947   | )      |   |   |   |   |
|                                                                               |   |             |      |   |   |   |   |   |
|      Net cash used in financing activities                |   |             | (61,947   | )      |   |   | - |   |
|                                                                               |   |             |      |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                          |   |             | (150,778  | )      |   |   | (4,990,864 | ) |
| Cash and cash equivalents at beginning of period                                   |   |             | 1,560,021 |   |   |   | 10,514,981 |   |
|                                                                               |   |             |      |   |   |   |   |   |
| Cash and cash equivalents at end of period                                         |   | $                | 1,409,243 |   |   | $      | 5,524,117 |   |
|                                                                               |   |             |      |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                  |   |             |      |   |   |   |   |   |
|   Cash paid for:                                                         |   |             |      |   |   |   |   |   |
|     Taxes                                                      |   | $                | 347       |   |   | $      | 398 |   |

----

----

----

|                        |   |          |   |                 | June 30, 2012 |   |                                                                 | December 31, 2011 |                 |
|-----------------------------|--------|---------------|--------|----------------------|---------------|--------|----------------------------------------------------------------------|-------------------|----------------------|
|                        |   |          |   |                 |          |   |                                                                 |              |                 |   |   |   |   |   |   |
|                        |   | Percent Owned |   | Estimated Fair Value |          |   | Losses in Accumulated Other Comprehensive Income |              | Estimated Fair Value |   |   | Losses in Accumulated Other Comprehensive Income |   |
|                        |   |          |   |                 |          |   |                                                                 |              |                 |   |   |   |   |   |   |
| GolfRounds.com, Inc.        |   |          | 4.20   | %                    |          | $      | 4,800                                                                |              |                 | $ | 22,200 |   |   | $ | 8,400 |   |   | $ | 18,600 |   |
| All other equity securities |   |          | N/A    |                 |          |   | 550                                                                  |              |                 |   | 4,259 |   |   |   | 435 |   |   |   | 4,374 |   |
|                        |   |          |   |                 |          |   |                                                                 |              |                 |   |   |   |   |   |   |   |   |   |   |   |
|                        |   |          |   |                 |          | $      | 5,350                                                                |              |                 | $ | 26,459 |   |   | $ | 8,835 |   |   | $ | 22,974 |   |

----

|                                                  |   | Cost   |      |   | Useful Life |   |   | Accumulated Depreciation / Amortization |   |   | Net Book Value |   |
|-------------------------------------------------------|--------|--------|-----------|--------|-------------|--------|--------|-----------------------------------------|--------|--------|----------------|--------|
|                                                  |   |   |      |   |        |   |   |                                    |   |   |           |   |
| Land                                                  |   | $      | 1,280,000 |   |        |   |   |                                    |   |   |           | $      | 1,280,000 |   |
| Buildings                                             |   |   | 1,130,292 |   |        |   | 20     |                                    |   | $      | 72,258         |   |   |   | 1,058,034 |   |
| Improvements                                          |   |   | 529,387   |   |        |   | 7      |                                    |   |   | 96,685         |   |   |   | 432,702 |   |
|                                                  |   |   |      |   |        |   |   |                                    |   |   |           |   |   |   |   |   |
| Subtotal real estate assets                           |   |   | 2,939,679 |   |        |   |   |                                    |   |   | 168,943        |   |   |   | 2,770,736 |   |
|                                                  |   |   |      |   |        |   |   |                                    |   |   |           |   |   |   |   |   |
| Real estate related intangible assets:                |   |   |      |   |        |   |   |                                    |   |   |           |   |   |   |   |   |
|   Leases in place value                     |   |   | 1,624,052 |   |        |   | 7      |                                    |   |   | 296,610        |   |   |   | 1,327,442 |   |
|   Unamortized tenant improvement allowances |   |   | 530,444   |   |        |   | 12     |                                    |   |   | 56,518         |   |   |   | 473,926 |   |
|                                                  |   |   |      |   |        |   |   |                                    |   |   |           |   |   |   |   |   |
|                                                  |   |   | 2,154,496 |   |        |   |   |                                    |   |   | 353,128        |   |   |   | 1,801,368 |   |
|                                                  |   |   |      |   |        |   |   |                                    |   |   |           |   |   |   |   |   |
|                                                  |   | $      | 5,094,175 |   |        |   |   |                                    |   | $      | 522,071        |   |   | $ | 4,572,104 |   |
|                                                  |   |   |      |   |        |   |   |                                    |   |   |           |   |   |   |   |   |
| Below market lease value acquired                     |   | $      | (769,175  | )      |        |   | 12     |                                    |   | $      | (81,954        | )      |   | $ | (687,221 | ) |

----

----

----

| ● | the reduction of general and administrative expenses, |
|---------|-------------------------------------------------------|

| ● | increased gross profit from the Property, which was owned for the full six months ended June 30, 2012 but only acquired on and owned after March 31, 2011, and |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | increase in other income attributable to administrative fees paid by an unaffiliated investment partnership. |
|---------|--------------------------------------------------------------------------------------------------------------|

----

----

----

----

| Period                                                            |   | Total Number of Shares Purchased |   |   | Average Price Paid per Share |   |   | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs |   |   | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs |   |
|-------------------------------------------------------------------|--------|----------------------------------|--------|--------|------------------------------|--------|--------|---------------------------------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------------------------|--------|
| April 1, 2012 -      April 30, 2012 |   |                             | 2,500  |   |                         | $      | 1.26   |                                                                                  |   |   | 2,500                                                                                         |   |   |   | 191,390 |   |
| May 1, 2012 -      May 31, 2012     |   |                             | 1,095  |   |                         | $      | 1.17   |                                                                                  |   |   | 1,095                                                                                         |   |   |   | 190,295 |   |
| June 1, 2012 -      June 30, 2012   |   |                             | 2,361  |   |                         | $      | 1.21   |                                                                                  |   |   | 2,361                                                                                         |   |   |   | 187,934 |   |
| Total                                                             |   |                             | 5,956  |   |                         | $      | 1.22   |                                                                                  |   |   | 5,956                                                                                         |   |   |   | 187,934 |   |

| (1)   | In August 2004, the Board of Directors approved a plan to repurchase up to 200,000 shares of the Company’s common stock. In December 2011, the Board of Directors approved an increase in the amount of shares available to repurchase under the plan from 64,769 shares to 250,000 shares.  This plan has no expiration date. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 3.1     | Bylaws of the Registrant, as amended. (l)                                                                                                                            |   |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |    |                                                                                                                                                                 |   |
|   | 3.2(a)  | Articles of Incorporation of Registrant, as amended (including certificate of stock designation for $2.575 Cumulative Convertible Exchangeable Preferred Stock). (2) |   |
|   |    |                                                                                                                                                                 |   |
|   | 3.2(b)  | Certificate of Amendment to Certificate of Incorporation. (3)                                                                                                        |   |
|   |    |                                                                                                                                                                 |   |
|   | 3.2(c)  | Certificate of Amendment to Certificate of Incorporation dated September 26, 1991. (4)                                                                               |   |
|   |    |                                                                                                                                                                 |   |
|   | 10.1    | Employment Agreement dated June 13, 2011 by and between Kent Financial Services, Inc. and Paul O. Koether. (5) **                                                    |   |
|   |    |                                                                                                                                                                 |   |
|   | 10.2    | Employment Agreement dated June 13, 2011 by and between Kent Financial Services, Inc. and Bryan P. Healey. (6) **                                                    |   |
|   |    |                                                                                                                                                                 |   |
|   | 10.3    | Membership agreement between Kent Capital, Inc. and the Financial Industry Regulatory Authority                                                                      |   |
|   |    |                                                                                                                                                                 |   |
|   | 31.1    | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                             |   |
|   |    |                                                                                                                                                                 |   |
|   | 32      | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                             |   |
|   |    |                                                                                                                                                                 |   |
|   | 101.INS | XBRL Instance                                                                                                                                                        |   |
|   |    |                                                                                                                                                                 |   |
|   | 101.SCH | XBRL Schema                                                                                                                                                          |   |
|   |    |                                                                                                                                                                 |   |
|   | 101.CAL | XBRL Calculation                                                                                                                                                     |   |
|   |    |                                                                                                                                                                 |   |
|   | 101.DEF | XBRL Definition                                                                                                                                                      |   |
|   |    |                                                                                                                                                                 |   |
|   | 101.LAB | XBRL Label                                                                                                                                                           |   |
|   |    |                                                                                                                                                                 |   |
|   | 101.PRE | XBRL Presentation                                                                                                                                                    |   |

| (1) | Incorporated by reference to Texas American Energy Corporation Registration Statement, as amended, on Form S-l, No. 33-11109. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated by reference to Texas American Energy Corporation Form 10-K, for the fiscal year ended December 31, 1984. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated by reference to Texas American Energy Corporation Form 10-K for the fiscal year ended December 31, 1987. |
|-----|-----------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated by reference to Kent Financial Services, Inc. Form 10-Q for the quarter ended September 30, 1991. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (5) | Incorporated by reference to Kent Financial Services, Inc. Form 8-K filed on December 7, 2011. |
|-----|------------------------------------------------------------------------------------------------|

| (6) | Incorporated by reference to Kent Financial Services, Inc. Form 8-K filed on June 14, 2011. |
|-----|---------------------------------------------------------------------------------------------|

----

| Dated: August 10, 2012 | By: /s/ Bryan P. Healey                               |
|------------------------|-------------------------------------------------------|
|                   | Bryan P. Healey                                       |
|                   | Chairman of the Board                                 |
|                   | (Principal Executive Officer, Principal Financial and |
|                   | Accounting Officer)                                   |

----