<PAGE>

                United States Securities and Exchange Commission
                             Washington, D.C. 20549

                                    FORM 10-Q

  (MARK ONE)
      X
--------------   Quarterly Report Pursuant to Section 13 or 15(d) of the
                             Securities Exchange Act of 1934
                     FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1999

or

--------------   Transition Report Pursuant to Section 13 of 15(d) of the
                        Securities Exchange Act of 1934
                   For the transition period from ____ to ____

                         COMMISSION FILE NUMBER: 0-10223


                         CONAM REALTY INVESTORS 81 L.P.
                         ------------------------------
              EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER



<TABLE>
<S><C>
                      California                                                13-3069026
                      ----------                                                ----------

STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION         I.R.S. EMPLOYER IDENTIFICATION NO.

1764 San Diego Avenue
SAN DIEGO, CA                                                                         92110-1906
-------------                                                                         ----------
ADDRESS OF PRINCIPAL EXECUTIVE OFFICES                                                 ZIP CODE

                                               (619) 297-6771
                                               --------------
                               REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE
</TABLE>


Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for
the past 90 days.
                                  Yes  X   No
                                      ---     ---



<PAGE>

CONAM REALTY INVESTORS 81 L.P.
AND CONSOLIDATED VENTURES


                        PART 1 - FINANCIAL INFORMATION

ITEM 1             Financial Statements

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

<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS                                    AT JUNE 30,            AT DECEMBER 31,
                                                                      1999                       1998
-----------------------------------------------------------------------------------------------------
<S>                                                            <C>                    <C>
ASSETS
Investments in real estate:
    Land                                                          $       -             $  3,630,175
    Buildings and improvements                                            -               17,984,707
                                                             ----------------------------------------
                                                                          -               21,614,882
    Less accumulated depreciation                                         -              (11,739,275)
                                                             ----------------------------------------
                                                                          -                9,875,607
Cash and cash equivalents                                           418,669                1,578,924
Restricted cash                                                           -                  410,262
Mortgage fees, net of accumulated amortization
    of $0 in 1999 and $321,697 in 1998                                    -                   34,020
Other assets                                                         10,899                  158,544
-----------------------------------------------------------------------------------------------------
       TOTAL ASSETS                                               $ 429,568             $ 12,057,357
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
    Mortgages payable                                             $       -             $  9,718,148
    Accounts payable and accrued expenses                            67,491                  307,101
    Due to general partner and affiliates                                 -                   14,966
    Interest payable                                                      -                   68,837
    Security deposits                                                     -                   68,378
                                                             ----------------------------------------
       Total Liabilities                                             67,491               10,177,430
                                                             ----------------------------------------
Partners' Capital (Deficit):
    General Partner                                                (165,856)                (298,566)
    Limited Partners (78,290 Units outstanding)                     527,933                2,178,493
                                                             ----------------------------------------
       Total Partners' Capital                                      362,077                1,879,927
-----------------------------------------------------------------------------------------------------
       TOTAL LIABILITIES AND PARTNERS' CAPITAL                    $ 429,568             $ 12,057,357
-----------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------
</TABLE>

SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.


<PAGE>

CONAM REALTY INVESTORS 81 L.P.
AND CONSOLIDATED VENTURES
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                              THREE MONTHS ENDED                         SIX MONTHS ENDED
                                                                    JUNE 30,                                  JUNE 30,
                                                           1999               1998                    1999               1998
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                  <C>                <C>                   <C>                <C>
INCOME
Rental                                               $       -          $  845,161            $    265,290       $  1,694,013
Interest and other                                       4,765              18,711                  68,511             30,336
                                                   ------------------------------------------------------------------------------
       Total Income                                      4,765             863,872                 333,801          1,724,349
---------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Property operating                                           -             352,669                 174,764            699,635
Depreciation and amortization                                -             192,457                  32,070            384,913
Interest                                                     -             208,047                  61,890            416,731
General and administrative                              49,466              46,287                  81,603             87,331
Write-off of assets                                          -               1,892                       -              1,892
                                                   ------------------------------------------------------------------------------
       Total Expenses                                   49,466             801,352                 350,327          1,590,502
---------------------------------------------------------------------------------------------------------------------------------
Income (Loss) from operations                          (44,701)             62,520                 (16,526)           133,847
Gain on sale of properties                                   -                   -              12,274,841                  -
---------------------------------------------------------------------------------------------------------------------------------
Income (Loss) before extraordinary items               (44,701)             62,520              12,258,315            133,847
Extraordinary loss from debt extinguishment                  -                   -                (129,068)                 -
---------------------------------------------------------------------------------------------------------------------------------
       NET INCOME (LOSS)                             $ (44,701)         $   62,520            $ 12,129,247       $    133,847
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) ALLOCATED:
       To the General Partner                        $    (447)         $   (4,013)              $ 274,782       $     13,385
       To the Limited Partners                         (44,254)             66,533              11,854,465            120,462
---------------------------------------------------------------------------------------------------------------------------------
       NET INCOME (LOSS)                             $ (44,701)         $   62,520            $ 12,129,247       $    133,847
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
PER LIMITED PARTNERSHIP UNIT
(78,290 LIMITED PARTNER UNITS OUTSTANDING)
    Income (Loss) from operations                    $   (0.56)         $     0.85            $      (0.20)       $       1.54
    Extraordinary loss from debt extinguishment              -                   -                   (1.65)                 -
    Gain on sale of properties                               -                   -                  153.27                  -
---------------------------------------------------------------------------------------------------------------------------------
       NET INCOME (LOSS)                             $   (0.56)         $     0.85            $     151.42       $       1.54
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF PARTNERS' CAPITAL
FOR THE SIX MONTHS ENDED JUNE 30, 1999
<TABLE>
<CAPTION>
                                                                           GENERAL                 LIMITED
                                                                           PARTNER                PARTNERS              TOTAL
---------------------------------------------------------------------------------------------------------------------------------
<S>                                                                     <C>                   <C>                <C>
BALANCE (DEFICIT) AT DECEMBER 31, 1998                                  $ (298,566)           $  2,178,493       $  1,879,927
Net income                                                                 274,782              11,854,465         12,129,247
Distributions ($172.50 per Limited Partner Unit)                          (142,072)            (13,505,025)       (13,647,097)
---------------------------------------------------------------------------------------------------------------------------------
BALANCE (DEFICIT) AT JUNE 30, 1999                                      $ (165,856)           $    527,933       $    362,077
---------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>

SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.

<PAGE>

CONAM REALTY INVESTORS 81 L.P.
AND CONSOLIDATED VENTURES
------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED JUNE 30,                                              1999                     1998
-------------------------------------------------------------------------------------------------------------
<S>                                                                    <C>                       <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                                             $ 12,129,247              $   133,847
Adjustments to reconcile net income to net cash
  provided by operating activities:
    Depreciation and amortization                                            32,070                  384,913
    Gain on sale of properties                                          (12,274,841)                       -
    Extraordinary loss from debt extinguishment                             129,068                        -
    Write-off of assets                                                           -                    1,892
    Increase (decrease) in cash arising from changes in
       operating assets and liabilities:
       Fundings to restricted cash                                                -                 (125,529)
       Release of restricted cash                                           410,262                  187,366
       Mortgage fees                                                              -                  (24,000)
       Other assets                                                         147,645                  (25,627)
       Accounts payable and accrued expenses                               (239,610)                  (2,174)
       Due to general partner and affiliates                                (14,966)                     286
       Interest payable                                                     (68,837)                  69,278
       Security deposits                                                    (68,378)                  (7,551)
                                                              -----------------------------------------------
Net cash provided by (used in) operating activities                         181,660                  592,701
-------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to real estate                                                    (12,032)                  (6,248)
Net proceeds from sale of properties                                     22,035,362                        -
                                                              -----------------------------------------------
Net cash provided by (used in ) investing activities                     22,023,330                   (6,248)
-------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions                                                           (13,647,097)                (334,907)
Mortgage principal payments                                              (9,718,148)                 (49,883)
                                                              -----------------------------------------------
Net cash used in financing activities                                   (23,365,245)                (384,790)
-------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents                     (1,160,255)                 201,663
Cash and cash equivalents, beginning of period                            1,578,924                1,388,845
-------------------------------------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS, END OF PERIOD                               $    418,669              $ 1,590,508
-------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION-
Cash paid during the period for interest                               $    130,727              $   347,453
-------------------------------------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING ACTIVITIES:
Write-off of buildings and improvements                                $          -              $    (3,942)
Write-off of accumulated depreciation                                  $          -              $     2,050
-------------------------------------------------------------------------------------------------------------
</TABLE>

SEE ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.


<PAGE>

CONAM REALTY INVESTORS 81 L.P.
AND CONSOLIDATED VENTURES
------------------------------------------------------------------------------
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The unaudited interim consolidated financial statements should be read in
conjunction with the Partnership's annual 1998 audited consolidated
financial statements within Form 10-K.

The unaudited interim consolidated financial statements include all normal
and recurring adjustments which are, in the opinion of management, necessary
to present a fair statement of financial position as of June 30, 1999 and
the results of operations for the three and six months ended June 30, 1999
and 1998, cash flow for the six months ended June 30, 1999 and 1998, and the
consolidated statement of partners' capital for the six months ended June
30, 1999. Results for the six months ended June 30, 1999 are not necessarily
indicative of the results to be expected for the full year.

The Partnership has sold its remaining investments in real estate. The sale
and liquidation plan was approved by the Unitholders through a consent
solicitation statement as of January 15, 1999 and the sale of the properties
was completed on January 29, 1999.

For assets sold or otherwise disposed of, the cost and related accumulated
depreciation are removed from the accounts, and any resulting gain or loss
is reflected in net income for the period.

Within 30 days of the completion of the sale of the properties, the
Partnership declared a cash distribution representing substantially all of
the net proceeds from sale and substantially all of the remaining cash from
operations of the Partnership less an amount for costs and contingencies
associated with the sale and liquidation of the Partnership.

Certain first quarter 1999 amounts have been reclassified to conform with
the presentation adopted in the current quarter.

No other significant events have occurred subsequent to fiscal year 1998,
and no material contingencies exist, which would require disclosure in this
interim report per Regulation S-X, Rule 10-01, Paragraph (a) (5).


<PAGE>

CONAM REALTY INVESTORS 81 L.P.
AND CONSOLIDATED VENTURES
------------------------------------------------------------------------------
ITEM 2.     Management's Discussion and Analysis of Financial Condition and
            Results of Operations

LIQUIDITY AND CAPITAL RESOURCES

On February 26, 1999, the Partnership declared cash distributions in the amounts
of $13,505,025 to the Limited Partner Unitholders ($72.50 per Unit) and $142,072
to the General Partner, which amounts represent substantially all of the net
proceeds from the sale (the "Sale" ) of the Partnership's remaining investments
in real estate ("Properties") together with other available cash from operations
of the Partnership less an amount for costs associated with the liquidation of
the Partnership and other contingencies. As a result of the Sale and
distribution, cash and cash equivalents and other assets comprise all of the
remaining assets of the Partnership. The General Partner believes that the
Partnership has sufficient cash to meet the needs of the Partnership for any
contingencies or costs associated with the Sale and final liquidation of the
Partnership.

As a result of the Sale of the remaining Properties, the only source of revenue
prior to final liquidation will be the interest generated on the remaining cash
balances. The remaining cash is invested in an unaffiliated highly liquid money
market fund.

At June 30, 1999, the Partnership had cash and cash equivalents of $418,669
compared with $1,578,924 at December 31, 1998. The decrease in cash and cash
equivalents is due to the Sale of the Properties and the subsequent distribution
of substantially all of the net proceeds thereof and other Partnership cash. As
required by the Partnership agreement, upon final liquidation of the
Partnership, the general partner is to contribute $201,260 ("GP Contribution")
to the Partnership, which represents distributions of net proceeds from Sale or
refinancing previously received by the General Partner. Remaining cash
available, if any, after the contribution by the General Partner and the
satisfaction of all Partnership obligations will be distributed pursuant to the
Partnership agreement.

RESULTS OF OPERATIONS

Partnership net income (loss) for the three and six months ended June 30, 1999
was ($44,701) and $12,129,247, respectively, compared to $62,520 and $133,847
for the corresponding periods in fiscal 1998. The decreased income for the three
months ended June 30, 1999 is primarily attributable to the Sale of the
Properties. The increase in income for the six month period is primarily
attributable to the gain on the Sale of the properties.

The Partnership generated operating losses for the three and six months ended
June 30, 1999 of $44,701 and $16,526, respectively, compared to operating income
of $62,520 and $133,847, respectively, for the corresponding periods in fiscal
1998. Total income for the three and six months ended June 30, 1999 totaled
$4,765 and $333,801, respectively, compared with $863,872 and $1,724,349,
respectively, for the corresponding period in fiscal 1998. The decreased total
income is primarily attributable to the decrease in rental income attributable
to the Sale on January 29, 1999, partially offset by interest income earned on
the proceeds from the Sale prior to distributions to the Unitholders.

Total expenses for the three and six months ended June 30, 1999 were $49,466 and
$350,327, respectively, compared to $801,352 and $1,590,502, respectively, for
the corresponding periods in fiscal 1998. The decrease in total expenses is
primarily attributable to the Sale of the properties.


<PAGE>

General and administrative expenses for the three and six months ended June 30,
1999 were $49,466 and $81,603, respectively, compared to $46,287 and $87,331,
respectively, for the corresponding periods in fiscal 1998. The decrease in
general and administrative expenses for the six months ended June 30, 1999, is
primarily attributable to a reduction in printing, mailing and investor
relations expenses. The change for the three months ended June 30, 1999 as
compared to June 30, 1998 was not significant.

YEAR 2000

Due to the consummation of the Sale, the Partnership is no longer engaged in the
operation of real properties or any other business. As a result of the
foregoing, and in view of the General Partner's plan to complete the full
liquidation of the Partnership prior to January 1, 2000, the Partnership has no
exposure to Year 2000 issues.

ITEM 3.     Quantitative and Qualitative Disclosures About Market Risks

Due to the consummation of the Sale and the repayment of its mortgage
indebtedness, the Partnership has no exposure to interest rate risk. In
addition, the Partnership is expected to be liquidated during 1999.


                        PART II - OTHER INFORMATION


ITEMS 1-5.    Not applicable

ITEM 6.       Exhibits & Reports on Form 8-K

          (a) Exhibits


          3.1 Amendment, dated January 18, 1999 to Partnership's Amended
              and Restated Certificate and Agreement of Limited
              Partnership (included as, and incorporated herein by
              reference to, Exhibit 4.1 to the Partnership's Report on
              Form 8-K filed on February 16, 1999).

         10.1 Agreement for Purchase and Sale and Joint Escrow
              Instructions between RI81 Las Colinas Limited Partnership
              and DOC Investors, L.L.C. dated January 26, 1999 with
              respect to the Sale of Las Colinas Apartments I & II
              (included as, and incorporated herein by reference to,
              Exhibit 10.1 to the Partnership's Report on Form 8-K filed
              on February 16, 1999).

         10.2 Agreement for Purchase and Sale and Joint Escrow
              Instructions between Tierra Catalina Limited Partnership
              and DOC Investors, L.L.C. dated January 26, 1999 with
              respect to the Sale of Tierra Catalina (included as, and
              incorporated herein by reference to, Exhibit 10.2 to the
              Partnership's Report on Form 8-K filed on February 16,
              1999).

          (b) Reports on Form 8-K

              No reports on Form 8-K were filed during the quarter ended
              June 30, 1999.

         (27) Financial Data Schedule



<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

                            CONAM PROPERTY SERVICES, LTD.
                            General Partner of ConAm Realty Investors 81 L.P.

                            BY:   CONTINENTAL AMERICAN DEVELOPMENT, INC.
                                  GENERAL PARTNER


Date:  August 10, 1999        BY:/s/ DANIEL J. EPSTEIN
                                 -----------------
                                 Daniel J. Epstein
                                 Director, President, and Principal Executive
                                 Officer


Date:  August 10, 1999        BY:/s/ ROBERT J. SVATOS
                                  ----------------
                                  Robert J. Svatos
                                  Vice President and Director