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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB

[X]  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 2004

[   ]  TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to _____________

Commission File No. 001-13183

                    Roberts Realty Investors, Inc.                    
(Exact Name of Registrant as Specified in Its Charter)

               Georgia                                   58-2122873               
(State or other jurisdiction of     (I.R.S. Employer
incorporation or organization)     Identification Number)

450 Northridge Parkway, Suite 302, Atlanta, Georgia                 30350              
(Address of Principal Executive Offices)                              (Zip Code)

Registrant's telephone number, Including Area Code:    (770) 394-6000
(Telephone Number)

        Indicate by check 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 past 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          

        Indicate by check whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Yes                     No    X    

The number of outstanding shares of the registrant's Common Stock on August 6, 2004 was 5,302,642 (net of shares held in treasury).

TABLE OF CONTENTS

PAGE         

 
PART I   FINANCIAL INFORMATION      1  
   
         ITEM 1.   FINANCIAL STATEMENTS    1  
   
         ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF       
                           FINANCIAL CONDITION AND RESULTS OF OPERATIONS    15  
   
         ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES  
                           ABOUT MARKET RISK    32  
   
         ITEM 4.   CONTROLS AND PROCEDURES    33  
   
   
PART II   OTHER INFORMATION    33  
   
         ITEM 1.   LEGAL PROCEEDINGS    33  
   
         ITEM 2.   CHANGES IN SECURITIES AND USE OF PROCEEDS    33  
   
         ITEM 3.   DEFAULTS UPON SENIOR SECURITIES    33  
   
         ITEM 4.   SUBMISSION OF MATTERS TO A  
                          VOTE OF SECURITY HOLDERS    33  
   
         ITEM 5.   OTHER INFORMATION    33  
   
         ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K    34  


_________________

PART I

ITEM 1.  FINANCIAL STATEMENTS.

ROBERTS REALTY INVESTORS, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
___________________________________________________________________________________________________

June 30, 2004
 December 31, 2003
(Unaudited)
 
ASSETS            
   
REAL ESTATE ASSETS - At cost:  
   Land   $ 9,372   $ 9,372  
   Buildings and improvements    54,448    54,534  
   Furniture, fixtures and equipment    6,398    6,308  
     70,218    70,214  
   Less accumulated depreciation    (11,471 )  (10,119 )
      Operating real estate assets    58,747    60,095  
   Construction in progress and real estate under development    50,649    45,510  
          Net real estate assets    109,396    105,605  
   
CASH AND CASH EQUIVALENTS    18,552    8,583  
   
RESTRICTED CASH    151    140  
   
DEFERRED FINANCING COSTS - Net of accumulated amortization of          
   $488 and $406 at June 30, 2004 and December 31, 2003, respectively    611    687  
   
ASSETS HELD FOR SALE    -    62,363  
   
OTHER ASSETS - Net    743    361  
    $ 129,453   $ 177,739  
LIABILITIES AND SHAREHOLDERS' EQUITY          
   
LIABILITIES:  
   Mortgage notes payable   $ 51,737   $ 51,993  
   Construction notes payable    28,083    23,458  
   Land notes payable    -    3,000  
   Swap contract liability    1,062    1,801  
   Accounts payable and accrued expenses    1,495    1,066  
   Due to Roberts Construction (including retainage payable of $864 and $941 at          
      June 30, 2004 and December 31, 2003, respectively)    1,562    1,867  
   Security deposits and prepaid rents    160    182  
   Liabilities related to assets held for sale    29    61,109  
       Total liabilities    84,128    144,476  
COMMITMENTS AND CONTINGENCIES (Note 8)          
   
MINORITY INTEREST OF UNITHOLDERS IN THE OPERATING PARTNERSHIP    12,102    9,214  
SHAREHOLDERS' EQUITY:          
   Preferred shares, $.01 par value, 20,000,000 shares authorized, no shares          
      issued and outstanding    -    -  
   Common shares, $.01 par value, 100,000,000 shares authorized, 5,653,920 and          
      5,585,206 shares issued at June 30, 2004 and December 31, 2003, respectively    57    56  
   Additional paid-in capital    26,529    26,050  
   Less treasury shares, at cost (362,588 shares at June 30, 2004 and          
       December 31, 2003)    (2,764 )  (2,764 )
   Unamortized restricted stock compensation    (65 )  (93 )
   Retained earnings    10,244    3,153  
   Accumulated other comprehensive loss    (778 )  (2,353 )
          Total shareholders' equity    33,223    24,049  
   $ 129,453   $ 177,739  

See notes to the consolidated financial statements.

ROBERTS REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in Thousands, Except Per Share Amounts)
___________________________________________________________________________________________________

Three Months Ended June 30, Six Months Ended June 30,
2004
 2003
 2004
 2003
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
OPERATING REVENUES:                    
     Rental operations   $ 1,777   $ 1,792   $ 3,583   $ 3,552  
     Other operating income    113    104    210    205  
          Total operating revenues    1,890    1,896    3,793    3,757  
OPERATING EXPENSES:                  
     Personnel    213    166    404    327  
     Utilities    147    100    268    211  
     Repairs, maintenance and landscaping    117    133    219    241  
     Real estate taxes    269    250    500    501  
     Marketing, insurance and other    166    130    306    245  
     General and administrative expenses    469    545    863    1,083  
     Depreciation of real estate assets    668    881    1,356    1,789  
          Total operating expenses    2,049    2,205    3,916    4,397  
LOSS FROM OPERATIONS    (159 )  (309 )  (123 )  (640 )
OTHER INCOME (EXPENSE):                  
     Interest income    54    16    76    32  
     Interest expense    (997 )  (865 )  (1,887 )  (1,727 )
     Loss on disposal of assets    (2 )  (19 )  (10 )  (16 )
     Legal settlement    340    -    340    -  
     Amortization of deferred financing costs    (49 )  (49 )  (95 )  (94 )
          Total other expense    (654 )  (917 )  (1,576 )  (1,805 )
LOSS BEFORE MINORITY INTEREST AND GAIN ON   
SALE OF REAL ESTATE ASSETS    (813 )  (1,226 )  (1,699 )  (2,445 )
   
MINORITY INTEREST OF UNITHOLDERS IN THE                  
OPERATING PARTNERSHIP    219    351    462    707  
LOSS BEFORE GAIN ON SALE OF REAL ESTATE ASSETS    (594 )  (875 )  (1,237 )  (1,738 )
   
GAIN ON SALE OF REAL ESTATE ASSETS, net of                   
minority interest of unitholders in the operating partnership    -    -    -    77  
LOSS FROM CONTINUING OPERATIONS    (594 )  (875 )  (1,237 )  (1,661 )
   
INCOME (LOSS) FROM DISCONTINUED OPERATIONS,                   
net of minority interest of unitholders in the                   
operating partnership (Note 4)    32,120    (47 )  32,169    (148 )
NET INCOME (LOSS)   $ 31,526   $ (922 ) $ 30,932   $ (1,809 )
INCOME (LOSS) PER COMMON SHARE -
BASIC AND DILUTED:		                  
     Loss from continuing operations   $ (0.11 ) $ (0.17 ) $ (0.24 ) $ (0.32 )
     Income (loss) from discontinued operations    6.09    (0.01 )  6.12    (0.03 )
     Net income (loss)   $ 5.98   $ (0.18 ) $ 5.88   $ (0.35 )
     Weighted average common shares - basic    5,274,804    5,156,163    5,256,935    5,137,012  
   
     Weighted average common shares - diluted (effect of                  
    operating partnership units)    7,221,698    7,223,777    7,222,379    7,223,690  
   
     Cash distribution   $ 4.50    -   $ 4.50    -  

See notes to the consolidated financial statements.


2

ROBERTS REALTY INVESTORS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
___________________________________________________________________________________________________

Six Months Ended June 30,
2004
 2003
(Unaudited) (Unaudited)
OPERATING ACTIVITIES: