KENT FINANCIAL SERVICES, INC. (?Kent?) (NASDAQ ? KENT) reported a net loss for the three months ended September 30, 2006 of $126,000 or $.04 per share, compared to a net loss of $181,000, or $.06 per share, for the comparable period in 2005. For the nine months ended September 30, 2006 the net loss was $448,000, or $.16 per share, compared to a net loss of $427,000, or $.15 per share, for the comparable period in the prior year.

Kent has 2,799,888 shares outstanding.

This release contains forward-looking statements which may involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Kent Financial Services cautions investors not to place undue reliance on forward-looking statements, which speak only to management's expectations on this date. Per share earnings reported in the text of the news release are fully diluted earnings per share.

KENT FINANCIAL SERVICES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005

(in thousands, except per share data)

(Unaudited)

 
Three Months Ended Nine Months Ended
September 30, September 30,
2006  2005  2006  2005 
Revenues:
Seminar fees $ 108  $ 29  $ 275  $ 57 
Management fee income 12 
Interest and dividends 165  102  453  278 
Investing gains (losses) 11  (125) (155)
Sale of patent rights by subsidiary 50  50 
Other income   13    47    40    229 
 
Total revenues 347  53  818  421 
 
Expenses:
General and administrative   488    244    1,361    861 
 

Loss before income taxes, minority interest and extraordinary item

(141) (191) (543) (440)
Provision for income taxes   1      8    22 

Loss before minority interest and extraordinary item

(142) (191) (551) (462)
Minority interest in subsidiaries losses   16    10    75    35 
 
Loss before extraordinary item (126) (181) (476) (427)

Extraordinary gain due to purchase of subsidiary stock

    28   
 
Net loss $ (126) $ (181) $ (448) $ (427)
 
Basic and diluted net loss per common share:
Loss per share before extraordinary item $ (0.04) $ (0.06) $ (0.17) $ (0.15)
Extraordinary gain       0.01   
 
Net loss per share $ (0.04) $ (0.06) $ (0.16) $ (0.15)
 

Weighted average number of common shares outstanding (in 000's)

  2,801    2,817    2,803    2,830 

CONDENSED CONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30, 2006

(in thousands)

(Unaudited)

ASSETS
 
Current Assets:
Cash and cash equivalents $ 535 
Short-term investments 12,700 
Securities owned 118 
Other current assets   154 
 
Total current assets   13,507 
 
Property and equipment, net 2 
 
Goodwill   90 
 
Total assets $ 13,599 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
Current liabilities $ 1,042 
 
Minority interest in subsidiaries 5,228 
 
Stockholders' equity   7,329 
 
Total liabilities and stockholders' equity $ 13,599