UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.

For the fiscal year ended April 30, ~~2017~~2018

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934.

For the transition period from ____________ to __________

Commission File number 0-8862

FIRST HARTFORD CORPORATION (Exact name of registrant as specified in its charter)

(Exact name of registrant as specified in its charter)

Maine	01-0185800
(State or Other Jurisdiction of	(I.R.S. Employer Identification Number)
Incorporation or Organization)

149 Colonial Road, Manchester, Connecticut 06042	860-646-6555
(Address of Principal Executive Offices) (Zip Code)	(Registrant's telephone number)

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value of $1 per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

¨ Yes x No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

¨ Yes x No

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.

x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files)

¨ Yes x No

Annual Report on Form 10-K

Page 1

First Hartford Corporation

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of the Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an “emerging growth company”. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ¨ Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company x (Do not check if a smaller reporting company) Emerging growth company ¨

Non-accelerated filer ¨ Smaller reporting company x

(Do not check if a smaller reporting company)

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ¨ Yes x No

As of October 31, ~~2016~~2017, the aggregate market value of the registrant’s common stock (based upon $2.2599 closing price on that date on the OTC Securities Market) held by non-affiliates (excludes shares reported as beneficially owned by directors and officers – and does not constitute an admission as to affiliate status) was $2,~~300~~800,~~038~~464.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date: 2,315,799 as of June 30, ~~2017~~2018.

Documents Incorporated by Reference: None.

Cautionary Statement Concerning Forward Looking Statements

This Annual Report on Form 10-K contains forward looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks, uncertainties and assumptions as described from time to time in registration statements, annual reports, and other periodic reports and filings of First Hartford Corporation and Subsidiaries (the Company) filed with the Securities and Exchange Commission. All statements, other than statements of historical facts, which address the Company’s expectations of sources of capital or which express the Company’s expectation for the future with respect to financial performance or operating strategies can be identified as forward-looking statements. As a result, there can be no assurance that the Company’s future results will not be materially different from those described herein as “believe”, “anticipate”, “estimate” or “expect”, which reflect the current view of the Company with respect to future events. We caution readers that these forward-looking statements speak only as of the date hereof. The Company hereby expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions or circumstances on which such statement is based.

Annual Report on Form 10-K

Page 2

First Hartford Corporation

PART I

ITEM 1. BUSINESS

First Hartford Corporation, which was incorporated in Maine in 1909, and its subsidiaries (collectively, the “Company”), is engaged in two business segments: 1) the purchase, development, ownership, management and sale of real estate and 2) providing preferred developer services for two corporate franchise operators (i.e., “Fee for Service”).

Business Narrative:

First business segment:

The principal activity of the Company’s first segment of business is the purchase, development, ownership, management and sale of real estate. The real estate, owned and/or managed by the Company through various subsidiaries and joint ventures, is located in Connecticut, Delaware, Louisiana, Massachusetts, ~~Missouri,~~ New York, New Jersey, Rhode Island, and Texas. Non-residential tenants are obtained through brokers and employed representatives of the Company, by means of Industry Trade Shows, direct contacts with retail stores and other potential commercial tenants, and an occasional inquiry by potential tenants at the Company’s on-site offices. Residential tenants are obtained through advertisements and inquiry at on-site offices.

The Company has a comprehensive investment strategy when it comes to new projects or acquisitions. Before investing, the Company conducts comprehensive due diligence that includes researching demographics, traffic, nearby vacancies, competition, and nearby market conditions. After a potential investment has been fully vetted, a decision is made.

The Company’s real estate business is diversified by geographical locations, type of commercial property, and form of ownership or management. The commercial real estate business is not divided further into significant separate classes of products or services.

When profitable opportunities arise, the Company will buy and sell certain properties.

The only facilities the Company owns and operates are a ~~single~~ movie theater and a ~~single~~ liquor store at one of its properties and a restaurant at another one of its properties. In all other cases, the tenants of the Company’s properties are third-parties.

Please also see Note 11 of the Financial Statements included within.

Second business segment:

The principal activity of the Company’s second segment of business is providing preferred developer services to CVS Health (CVS) and Cumberland Farms Inc. in certain geographic areas.

CVS: The Company has an agreement with CVS to be a preferred developer in Texas within the Rio Grande Valley, ~~Houston,~~ and ~~Western Texas (excluding El Paso and Austin)~~Houston, in New York within Long Island and portions of Rockland County, in ~~Northern~~ New Jersey, in most of Connecticut, and in Louisiana. This is a fee for service agreement by which the Company will locate a site, negotiate a letter of intent, prepare store development budgets, demographics, arrange traffic counts and submit for CVS Real Estate Committee approval. Once so approved, the Company will negotiate a purchase or lease of such property and obtain permits. The Company will invoice 75% of the total fee when the property is purchased or leased, and a building permit is issued. Fees vary based on location and style of the store. A CVS pre-qualified third party contractor is selected who will work through the Company. The Company will manage the construction and administrate the contracts and payments. When a Certificate of Occupancy is obtained, the Company will invoice 15% of the total fee. After the store is opened and all the open construction items are completed, the Company will invoice the final 10% of the total fee. Income is recognized as required services, as outlined in the development agreement, are completed. The entire process will normally take 1-3 years. The volume of revenue from this fee for service agreement is in excess of 10% of the Company’s annual revenue (excluding sales of real estate). The loss of the CVS contract would have a material adverse effect on the revenues and operations of the Company.

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First Hartford Corporation

~~Cumberland Farms:~~ITEM The Company is also a preferred developer for Cumberland Farms Inc. within Connecticut, New York, and Western Massachusetts. Its scope of work is less than the CVS arrangement above as the Company is not involved in the construction management of the store. This is a fee for service agreement by which the Company will locate a site, negotiate a letter of intent, prepare store development budgets, demographics, arrange traffic counts and submit for Cumberland Farms Real Estate Committee approval. Once so approved, the Company will negotiate a purchase or lease of such property and obtain state and local approval and associated permits for construction. The Company will invoice 100% of the total fee when the property is purchased or leased and a building permit is issued. Income is recognized as required services, as outlined in the development agreement, are completed. The entire process will normally take 1~~-2 years~~. ~~The~~ ~~loss~~BUSINESS ~~of the Cumberland Farms contract would have a material adverse effect on the revenues and operations of the Company.~~ (concluded):

~~Please~~Cumberland Farms: The Company is also ~~see~~a ~~Note~~preferred 11developer for Cumberland Farms Inc. within Connecticut, New York, and Western Massachusetts. Its scope of work is less than the ~~Financial~~CVS ~~Statements~~arrangement above ~~included~~as ~~within~~the Company is not involved in the construction management of the store. This is a fee for service agreement by which the Company will locate a site, negotiate a letter of intent, prepare store development budgets, demographics, arrange traffic counts and submit for Cumberland Farms Real Estate Committee approval. Once so approved, the Company will negotiate a purchase or lease of such property and obtain state and local approval and associated permits for construction. The Company will invoice 100% of the total fee when the property is purchased or leased and a building permit is issued. Income is recognized as required services, as outlined in the development agreement, are completed. The entire process will normally take 1-2 years. The loss of the Cumberland Farms contract would have a material adverse effect on the revenues and operations of the Company.

~~Miscellaneous~~Please ~~Business~~also ~~Reporting:~~see Note 11 of the Financial Statements included within.

~~The~~Miscellaneous ~~Company~~Business does not produce or offer any products, and as such, it has no foreign operations, no inventory (except a small amount at the liquor store), and does not export products or services. Its present business segments are not seasonal in nature. The Company does not have any patents, licenses, franchises, concessions, or royalty agreements. The Company is not conducting any research and development. The Company's subsidiaries involved with residential rental properties have some contracts or subcontracts, including loans, with the United States government via Housing & Urban Development (HUD). Reporting:

The Company’s ~~operations~~does ~~and~~not ~~property~~produce ~~are~~or ~~subject~~offer toany ~~various federal~~products, ~~state~~ and ~~local~~as ~~laws~~such, ~~and~~it ~~regulations~~has no ~~concerning~~foreign ~~the~~operations, ~~protection~~no ofinventory (except small amounts at the ~~environment,~~ ~~including~~liquor ~~air~~store and restaurant), and ~~water~~does ~~quality,~~not ~~hazardous~~export products or ~~toxic~~services. ~~substances~~Its ~~and~~present business ~~human~~segments ~~health~~are ~~safety~~not seasonal in nature. ~~There~~The isCompany nodoes ~~significant~~not ~~environmental~~have ~~litigation~~any patents, ~~involving~~licenses, franchises, concessions, or royalty agreements. The Company is not conducting any ofresearch ~~the~~and development. The Company’'s subsidiaries involved with residential rental properties have some contracts or subcontracts, including loans, with the United States government via Housing & Urban Development (HUD).

The Company’s ~~has~~operations aand ~~backlog,~~property orare ~~pipeline,~~subject ofto ~~potential~~various ~~development~~federal, ~~projects~~state ~~with~~and ~~CVS~~local laws and ~~Cumberland~~regulations ~~Farms. The~~concerning ~~Company~~the ~~does~~protection ~~not~~of ~~believe backlog~~the isenvironment, aincluding ~~useful~~air ~~measure~~and ofwater ~~past~~quality, ~~performance~~hazardous or ~~continuing~~toxic ~~performance~~substances ~~because the~~and ~~life~~human ofhealth ~~each~~safety. There ~~project~~is ~~ranges~~no ~~from~~significant ~~one~~environmental tolitigation involving ~~three~~any ~~years~~of ~~and~~ the ~~number~~Company’s ~~of future projects is not predictable~~properties.

The Company’s ~~economic~~has ~~performance~~a ~~and~~backlog, ~~the~~or ~~value~~pipeline, of ~~its~~potential ~~real~~development projects ~~estate~~with ~~are~~CVS and Cumberland Farms. The Company does not believe backlog ~~subject~~is toa ~~the~~useful ~~risks~~measure ~~incidental~~of topast ~~the~~performance ~~development,~~or ~~construction~~continuing ~~and~~performance ~~ownership~~because the life of ~~real~~each ~~estate~~project ~~properties,~~ranges asfrom ~~well~~one asto ~~the~~three ~~economic~~years ~~well-being~~and the number of ~~its~~future projects ~~tenants~~is not predictable.

~~Employment:~~The OnCompany’s ~~April~~economic ~~30,~~performance ~~2017,~~and the value of its real estate are ~~Company~~subject ~~employed~~to ~~111~~the ~~people~~risks ~~full-time~~incidental to the development, construction and 29ownership of ~~people~~real ~~part~~estate properties, as well as the economic well-~~time~~being of its tenants.

~~Competition~~Employment: ~~The~~On ~~Company~~April ~~competes~~30, ~~with~~2018, ~~many other established~~the ~~companies~~Company ~~and~~employed ~~entities,~~111 ~~many~~people offull-time ~~which are larger~~ and ~~possess~~89 ~~substantially greater~~people ~~financial resources and substantially larger staffs~~part-time.

Competition: The Company competes with many other established companies and entities, many of which are larger and possess substantially greater financial resources and substantially larger staffs.

ITEM 1A. RISK FACTORS

Smaller reporting companies are not required to provide the information required by this item.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

Annual Report on Form 10-K

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First Hartford Corporation

ITEM 2. PROPERTIES

The following table shows the location, general character, ownership status, and cost ~~(including leasing cost)~~ of the materially important physical properties of the Company.

Consolidated Subsidiaries – Commercial Properties:

Company Managed	Location of Properties	Use	Available Space or Facilities and Major Tenants	Ownership Status	Cost
X	Edinburg, TX	Shopping Center	~~460~~469,~~195~~583 sq. ft. JC Penney 22% Academy Sports 1716% Burlington Coat Factory 17%, Effective rent per sq. ft. occupied, exclusive of JC Penney (JC Penney owns its building) is $910.7031, occupied 100%	100% owned by a subsidiary of the Company, except JC Penney building. ~~Lender~~A lender to get extra interest if available (50% of cash flow) plus 50% of cash proceeds from sale or refinancing. See Note 3 of the Financial Statements included within.	$5052,~~394~~710,~~810~~395
X	West Springfield, MA	Shopping Center	144,350 sq. ft. Price Rite 28% Big Lots 21% Harbor Freight 12%, Effective rent per sq. ft. occupied is $9.6776, 92.15% occupied	100% owned by a subsidiary of the Company.	8,~~072~~146,~~125~~629
X	North Adams, MA	Shopping Center	131,691 sq. ft. Steeple City Cinema 20% (Company owned); Steeple City Liquor 11% (Company owned); Peebles 14% Planet Fitness 8% Effective rent per sq. ft. occupied – net of 41,067 sq. ft. Company owned $8.5822, 8280.5186% occupied	100% owned by a subsidiary of the Company. Commencing on October 1, 2015 and continuing through September 30, 2019 the Company will remit 50% of the cash flow of the property to Lender.	7,~~480~~552,~~974~~471
X	Plainfield, CT	Strip Shopping Center	60,154 sq. ft. Big Y 76%, effective rent per sq. ft. occupied is $12.0511, 100% occupied	100% owned by a subsidiary of the Company.	4,~~966~~975,~~216~~881

Annual Report on Form 10-K

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First Hartford Corporation

~~Consolidated Subsidiaries~~ITEM -2. ~~Commercial~~PROPERTIES ~~Properties~~ (continued):

	Cranston, RI	Shopping Center	259,218 sq. ft. Kmart 40% Stop & Shop 25% Effective rent per sq. ft. occupied is $14.67 90.94% occupied	50% owned by a subsidiary of the Company.	27,476,742
	Cranston, RI	College	60,000 sq. ft. Career Education College Effective rent per sq. ft. is $26.68 Currently vacant-leased to 12/31/18	50% owned by a subsidiary of the Company.	10,124,263
	Cranston, RI	Restaurant	Texas Roadhouse Land Lease 100% occupied	50% owned by a subsidiary of the Company.	239,414
	Cranston, RI	Police Station	60,000 sq. ft. Leased to City of Cranston Effective rent per sq. ft. occupied is $17.75 100% occupied	50% owned by a subsidiary of the Company.	10,132,902
X	Lubbock, TX	Shopping Center	160,570 sq. ft. Steinmart 26% Mardel 25% TJ Maxx 19% Effective rent per sq. ft. occupied is $9.86 96.37% occupied	2.0% owned by a subsidiary of the Company.	5,505,361

Consolidated Subsidiaries - Commercial Properties (continued):

The properties listed above contain approximately 1,336,178 rentable sq. ft., of which approximately 67,952 sq. ft., or approximately 5.1%, was vacant at April 30, 2017. Over the next 10 years, 75 of the current 83 leases will expire as follows:

X	New Orleans, LA	Strip Shopping Center	37,671 sq. ft. Marshalls 53%, Petco 33% effective rent per sq. ft. occupied is $22.32, 100% occupied	100% owned by a subsidiary of the Company.	9,201,659
	Cranston, RI	Shopping Center	259,218 sq. ft. Kmart (currently vacant – leased to 12/31/2027) 40% Stop & Shop 25% Effective rent per sq. ft. occupied is $13.59 98.43% occupied	50% owned by a subsidiary of the Company.	27,476,742

	Cranston, RI	College	60,000 sq. ft. Career Education College Effective rent per sq. ft. is $26.68 Currently vacant-leased to 12/31/18	50% owned by a subsidiary of the Company.	10,124,263

	Cranston, RI	Restaurant	Texas Roadhouse Land Lease 100% occupied	50% owned by a subsidiary of the Company.	239,414

	Cranston, RI	Police Station	60,000 sq. ft. Leased to City of Cranston Effective rent per sq. ft. occupied is $17.75 100% occupied	50% owned by a subsidiary of the Company.	10,132,902

X	Lubbock, TX	Shopping Center	160,531 sq. ft. Steinmart 26% Mardel 25% TJ Maxx 19% Effective rent per sq. ft. occupied is $10.03 97.06% occupied	2.0% owned by a subsidiary of the Company.	6,258,420

Year Ended	Number of Leases	Sq. Ft.	Base Rent	Percentage of Base Rent
4/30/18	10	50,173	$618,271	4.46%
4/30/19	15	223,537	$3,378,569	24.36%
4/30/20	9	132,783	$1,309,350	9.44%
4/30/21	9	111,567	$975,560	7.03%
4/30/22	14	140,857	$2,157,450	15.55%
4/30/23	8	108,800	$1,125,807	8.12%
4/30/24	2	18,626	$113,528	0.82%
4/30/25	2	38,754	$365,721	2.64%
4/30/26	4	33,909	$381,134	2.75%
4/30/27	2	14,200	$174,000	1.25%

Annual Report on Form 10-K

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First Hartford Corporation

~~Annual~~ ITEM ~~Report~~2. PROPERTIES ~~on Form 10-K Page 6 First Hartford Corporation~~(continued):

~~Total~~The properties ~~rental~~listed ~~income~~above ofcontain ~~these properties~~approximately ~~for~~1,337,873 ~~the~~rentable ~~year~~sq. ~~ended~~ft., ~~April~~of which 30approximately 45,325 ~~2017~~sq. ~~was $17~~ft.,~~955,156,~~ ofor ~~which~~approximately $3.4%,~~071,861~~ was vacant at April is30, ~~allocated~~2018. Over ~~for~~the ~~reimbursement~~next 10 years, 84 of ~~real~~the ~~estate~~current ~~taxes,~~87 ~~common~~leases ~~area~~will ~~expenses,~~expire ~~and~~as ~~insurance expenses.~~follows:

The Company does not have any individual tenants that account for 5% or more of the Company’s revenues.

Year Ended	Number of Leases	Sq. Ft.	Base Rent	Percentage of Base Rent

4/30/19	21	226,063	$3,540,464	23.45%
4/30/20	9	135,092	$1,427,163	9.45%
4/30/21	6	56,070	$576,824	3.82%
4/30/22	15	142,107	$2,169,067	14.36%
4/30/23	12	137,219	$1,360,990	9.01%
4/30/24	3	45,826	$131,684	0.87%
4/30/25	2	38,754	$373,721	2.48%
4/30/26	6	87,231	$753,187	4.99%
4/30/27	6	50,621	$968,508	6.41%
4/30/28	4	178,201	$2,216,738	14.68%

~~Consolidated~~Total rental ~~Subsidiaries~~income of these properties for the year ended April 30, 2018 was $18,662,481, –of ~~Residential~~which ~~Properties~~$4,055,592 is allocated for reimbursement of real estate taxes, common area expenses, and insurance expenses.

Company Managed	Location of Properties	Use	Available Space or Facilities and Major Tenants	Ownership Status	Cost
X	Rockland, MA	Apartments	204 units, low to moderate income, 91% occupied, effective sq. ft. rent - $22.77	.01% owned by a 75% owned subsidiary of the Company.	25,624,630
X	Somerville, MA	Apartments	501 units, low to moderate income, 99% occupied, effective sq. ft. rent - $24.48	.0049% owned by a 75% owned subsidiary of the Company.	49,063,026
Non-Consolidated Subsidiaries
Company Managed	Location of Properties	Use	Available Space or Facilities and Major Tenants	Ownership Status	Cost
X	Claymont, DE	Apartments	208 units, senior housing, 100% sec 8 subsidized, 98% occupied, effective sq. ft. rent - $20.93	Nonconsolidated, .01% owned by a 75% owned subsidiary of the Company.	7,707,909
	Dover Township, NJ	Shopping Center	108,084 sq. ft. Stop & Shop 52% Dollar Tree 9% Plus Outparcels	50% owned by a subsidiary of the Company.	14,256,449

The Company does not have any individual tenants that account for 5% or more of the Company’s revenues.

InConsolidated ~~addition to the materially important physical properties of the~~Subsidiaries ~~Company~~– ~~listed~~Residential above, the Company owns several other properties that are being developed or may be developed in the future as opportunities arise. Many of these other properties involve ground lease or build-to-suit deals. In some cases, the land being developed is solely for a single entity, in other cases the land is primarily for a single entity with some excess land retained for future development, and in other cases the land is banked for future potential development. Generally, the Company sells the properties within twelve months after development is completed.Properties:

Annual Report on Form 10-K Page 7 First Hartford Corporation

Company Managed	Location of Properties	Use	Available Space or Facilities and Major Tenants	Ownership Status	Cost

X	Rockland, MA	Apartments	204 units, low to moderate income, 91% occupied, effective sq. ft. rent - $22.77	.01% owned by a 75% owned subsidiary of the Company.	26,928,518

X	Somerville, MA	Apartments	501 units, low to moderate income, 98% occupied, effective sq. ft. rent - $24.45	.0049% owned by a 75% owned subsidiary of the Company.	49,176,847

Location of Properties	Use	Anticipated Completion Date	Cost Incurred to Date
New Orleans, LA	Single entity build-to-suit plus shopping center	FY 2018 Q1	18,031,749
Brentwood, NY	Single tenant build-to-suit	FY 2018 Q3	6,498,348
Austin, TX	Single tenant build-to-suit	FY 2018 Q4	3,749,219
Buda, TX	12.1 acres of land – can support 40,000 sq. ft. development	FY 2019	3,997,275
Conroe, TX	3.4 acres of land – can support 20,000 sq. ft. development	FY 2019	2,210,304
Del Valle, TX	15.6 acres of land – can support 52,000 sq. ft. development	FY 2019	1,452,091
All Other Properties Held			1,846,418
Total cost of developed properties and property under construction (excludes non-consolidated subsidiaries)			$236,865,867

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First Hartford Corporation

~~The~~ITEM ~~Company also owns properties it is currently holding for sale~~2. ~~The properties include vacant~~ ~~land~~PROPERTIES ~~in East Providence, RI, two single-tenant properties in Austin, TX, and a single-tenant property in St. Louis, MO. The total cost of these properties as of April 30, 2017 was $11,389,591.~~ (continued):

Non-Consolidated Subsidiaries:

Company

Managed

Location of

Properties

Use

Available Space

or Facilities and

Major Tenants

Ownership Status

Cost

Claymont, DE

Apartments

208 units, senior housing, 100% sec 8 subsidized, 99% occupied, effective sq. ft. rent - $21.20

Nonconsolidated,

.01% owned by a 75% owned subsidiary of the Company.

7,718,470

Bronx, NY

Apartments

99 units, senior housing, 100% sec 8 subsidized, 93% occupied, effective sq. ft. rent - $33.71

Nonconsolidated,

.005% owned by a 75% owned subsidiary of the Company.

17,341,187

Dover Township, NJ

Shopping Center

108,084 sq. ft.

Stop & Shop 52%

Dollar Tree 9%

Plus Outparcels

50% owned by a subsidiary of the Company.

14,267,148

Schertz, TX

Land for Development

N/A

50% owned by a subsidiary of the Company.

1,937,771

In addition to the materially important physical properties of the Company listed above, the Company owns several other properties that are being developed or may be developed in the future as opportunities arise. Many of these other properties involve ground lease or build-to-suit deals. In some cases, the land being developed is solely for a single entity, in other cases the land is primarily for a single entity with some excess land retained for future development, and in other cases the land is banked for future potential development. Generally, the Company sells the properties within twelve months after development is completed.

		Anticipated
Location of Properties	Use	Completion Date	Cost Incurred to Date

Houma, LA	Single tenant build-to-suit	FY 2019	4,811,003

Little Ferry , NJ	Single tenant build-to-suit	FY 2019	5,720,943

Houston, TX	18.58 acres of land – can support 100,000 sq. ft. development	FY 2020	7,652,146

Montgomery, TX	22.70 acres of land – can support 130,000 sq. ft. development	FY 2019 / 2020	5,679,750

Austin, TX	14.28 acres of land – can support 50,000 sq. ft. development	FY 2019 / 2020	3,749,219

Spring, TX	3.70 acres of land – can support 15,000 sq. ft. development	FY 2019	816,942

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First Hartford Corporation

ITEM 2. PROPERTIES (concluded):

Pearland, TX	1.93 acres of land – can support 12,000 sq. ft. development	FY 2019	1,039,773

Buda, TX	12.10 acres of land – can support 40,000 sq. ft. development	FY 2019 / 2020	4,265,439

Conroe, TX	3.40 acres of land – can support 20,000 sq. ft. development	FY 2019	2,210,304

Del Valle, TX	15.60 acres of land – can support 52,000 sq. ft. development	FY 2019 / 2020	1,452,091

All Other Properties Held			1,570,964

Total cost of developed properties and property under construction (excludes non-consolidated subsidiaries)			$251,892,715

The Company also owns properties that it is currently holding for sale. The properties include a single-tenant property in Cedar Park, TX, a single-tenant property in Houston, TX, and a single-tenant property in Montgomery, TX. The cost of these properties as of April 30, 2018 was $7,465,163.

ITEM 3. LEGAL PROCEEDINGS

OnFollowing ~~September~~a 7,site ~~2016,~~inspection of asbestos abatement activities being conducted at the Spring ~~Company~~Gate ~~was~~Apartments ~~notified~~in itRockland, ~~lost~~Massachusetts (Facility) on April 14, 2017, the ~~first~~Massachusetts Department of ~~two~~Environmental ~~companion~~Protection (MassDEP) by letter ~~lawsuits~~dated ~~against~~April a21, ~~former~~2017 ~~tenant~~requested ~~for~~that ~~wrongful~~Rockland ~~termination~~Place ofApartments, ~~its~~LP ~~separate~~(Company) ~~leases~~temporarily atcease ~~two~~and ofdesist ~~the~~from ~~Company’s~~any ~~commercial~~additional ~~shopping~~asbestos ~~centers~~removal, abatement and/or handling activities at the Facility. ~~After evaluating~~Upon ~~its~~receipt ~~options~~of the MassDEP letter, the Company ~~settled~~engaged ~~both~~MassDEP ~~lawsuits~~in ~~with~~discussions regarding the ~~plaintiff by~~abatement ~~agreeing~~project. Following submission to ~~pay~~and ~~$200,000~~approval toby ~~cover~~MassDEP ~~all~~of ~~claims,~~a ~~including~~work ~~reimbursement of~~plan ~~defendant~~addressing the issues raised in MassDEP’s ~~claimed~~April ~~legal~~21 ~~fees~~letter, ~~and~~MassDEP ~~costs. The~~permitted the ~~parties~~asbestos ~~mutually~~abatement ~~released~~work ~~each other~~to ~~from~~go ~~any~~forward. There ~~other~~have ~~liability~~been ~~relating~~no tofurther enforcement ~~this~~actions ~~case~~taken by MassDEP.

~~Other~~By letters ~~proceedings~~dated May 15, May 16 and May 30, 2017, three attorneys representing tenants in three units at the Facility notified the Company and/or its management company, FHRC Management Corporation, of claims related to environmental conditions at the Facility. The first of these letters alleges that the tenant and her family have been exposed to and have been living in an apartment containing asbestos for many years. The second letter claims that the tenant and her three minor children have suffered injuries believed to be caused by the presence of mold and asbestos in the apartment. The final letter asserts claims with respect to the tenant and her three minor children involving the presence and remediation of asbestos including violation of a tenant’s quiet enjoyment, breach of the warranty of habitability, causation of emotional distress and the use of unfair and deceptive practices under M.G.L. c. 93A. The first two letters made no specific monetary demand; the third letter demanded $312,600. All three claims were tendered to the Company’s insurer, which agreed to respond under a reservation of rights. On July 14, 2017, counsel retained by the insurer provided a timely response to the third letter, adamantly denying the Company’s liability pursuant to M.G.L. c. 93A or for any of the other claims. By letter dated July 27, 2017, the insurer acknowledged receipt of the three claims, at the same time stating however that as no lawsuit had arisen, it did not have a duty to defend, but nonetheless would continue to investigate. With respect to the third letter above, the suit was transferred to the Superior Court and, on May 11, 2018, the Company’s insurer stated that it will defend Rockland against the claimant’s counterclaims subject to a reservation of rights.

~~The~~Annual ~~Company~~Report ison ~~not aware~~Form of10-K ~~any~~Page ~~material~~9 ~~legal~~First ~~proceedings~~Hartford ~~which would need to be cited herein.~~Corporation

~~There~~ITEM ~~are~~3. ~~no proceedings~~LEGAL ~~involving~~PROCEEDINGS ~~officers and directors; see Item 10~~(fconcluded) ~~on Page 20.~~:

Other proceedings

The Company is not aware of any material legal proceedings which would need to be cited herein.

There are no proceedings involving officers and directors; see Item 10(f) on Page 23.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

Annual Report on Form 10-K Page 8 First Hartford Corporation

PART II

The Company trades on the OTC Securities Market under the symbol FHRT. Investors can find current financial disclosures and quotes for the Company on Yahoo Finance and other financial sites.

STOCK PRICE AND DIVIDEND INFORMATION

	Stock Price
2017	High	Low	Dividends Paid Per Common Share
2018	High	Low	Dividends Paid Per Common Share
First Quarter	$23.6800	$2.3555	None
Second Quarter	$23.50	$2.0150	None
Third Quarter	$32.2599	$2.2536	None
Fourth Quarter	$2.9050	$2.25	None
2016
2017
First Quarter	$32.0568	$2.0035	None
Second Quarter	$32.2550	$2.7501	None
Third Quarter	$3.0025	$2.25	None
Fourth Quarter	$32.0090	$2.3025	None

No dividends have been paid in the past two fiscal years and the Company has no plans or intentions to institute payment of dividends in the foreseeable future.

Publicly traded sales of common stock on the open-market occur sporadically. A recent reported public sale was for $32.00 per share on ~~May~~June 2415, ~~2017~~2018 for a total of 18,~~400~~ 500 shares.

The Company did not sell any unregistered shares of securities during the year ended April 30, ~~2017~~2018.

Shareholders of Record, and Potential Termination of SEC Reporting: ~~There were approximately 318 shareholders of record~~ for the Company’s common stock as of April 30, 2017. A trend the Company has noticed is the number of shareholders of record has been consistently attenuating each quarter. The Company anticipates the number of shareholders of record will fall below 300 in the very near term. Upon that occurring, the Company will have the opportunity to suspend and terminate its SEC reporting obligations, colloquially known as “going dark”. Management has expressed interest in “going dark” since doing so would create savings in the Company’s accounting, legal, and professional expenses since the SEC compliance obligations would cease. The Company anticipates, provided one or more market makers continue to participate in the Company’s trading market and other conditions are met, that the Company’s common stock shares would continue to be eligible to trade on the OTC Securities Markets. However, it is anticipated that the Company’s shares would have less visibility and the current limited liquidity may be further constrained in the market. Once the Company is eligible to “go dark”, the matter will be brought before its Board of Directors and shareholders for a vote; assuming an affirmative vote, the Company intends it would then voluntarily file a current report on a Form 8-K approximately two weeks in advance of suspending and terminating its Exchange Act reporting obligations in order to provide specific advance notice and additional explanation.

~~Annual~~ The Company first publicly expressed interest in “going dark” in its 2017 Annual Report, onwhere ~~Form~~it ~~10-K~~noted ~~Page~~the 9number ~~First~~of ~~Hartford~~shareholders ~~Corporation~~of record had been consistently attenuating each quarter.

~~10b5-1~~The ~~Private Repurchase Stock Plan: On January 5, 2017, the~~ Company’s ~~Board~~explained ~~of Directors~~its ~~amended~~rationale, and ~~approved~~certain ~~the~~benefits ~~Amended~~ and ~~Restated~~disadvantages ~~10b5-1~~of ~~Private~~Going ~~Repurchase~~Dark ~~Stock Plan~~for (the ~~“Repurchase Plan”), which was initially adopted on March 29, 2016. The~~ Company ~~found less demand under the Repurchase Plan than expected~~ and ~~desired~~for toits ~~broaden~~shareholders ~~the eligibility requirements to increase participation~~ in ~~the~~its ~~Repurchase~~proxy ~~Plan. The~~statement ~~Company~~as ~~desired~~filed toDecember ~~amend~~12, ~~the~~2017 ~~Repurchase Plan in~~with ~~order~~the toSEC ~~permit~~for ~~shareholders holding five (5%) percent or more of~~ the ~~issued and~~annual ~~outstanding~~meeting ~~common stock~~ of ~~the Company the ability to participate in the Repurchase Plan~~shareholders. The ~~Repurchase Plan provided for the repurchase of up to 150,000 shares of the~~ Company’s ~~common~~annual ~~stock in minimum blocks of 15,000 shares and maximum~~meeting ~~blocks~~ of ~~25,000 shares. Eligible~~ shareholders ~~were~~was ~~those~~held ~~holding~~on ~~blocks~~January ~~of common~~17, ~~stock~~2018 ~~of the Company~~ in ~~excess of fifteen thousand (15~~Hartford,~~000)~~ ~~shares and less than three hundred fifty thousand (350,000) shares~~CT. ~~Repurchases~~At ~~could~~that ~~be made at management’s discretion~~meeting, ~~from time-to-time only through privately negotiated transactions pursuant to~~ the ~~terms~~shareholders ofvoted ~~the 10b5-1 plan~~ to ~~meet~~approve the ~~requirements~~Company ofsuspending ~~Rule 10b5-1~~or ~~under the~~terminating ~~Securities Exchange Act of 1934. The privately negotiated purchase price could~~its ~~not~~filing ~~exceed~~obligations ~~1.5~~with ~~times~~ the ~~highest independent bid or the last independent transaction price and in no event be higher than five ($5~~U.~~00) dollars per share~~S. ~~The~~ ~~purchases~~Securities and ~~negotiations~~Exchange ~~could~~Commission, ~~resume 15 days~~also ~~after~~called ~~filing~~“Going ofDark”, ~~the~~once ~~quarterly report;~~ the ~~program~~Company ~~will~~is beeligible. The ~~suspended~~vote ~~for~~was 152,006,379 ~~days~~in ~~before~~favor, ~~the~~16,481 ~~due~~against, ~~date of each next quarterly or annual report filing~~ and ~~will resume~~1,830 ~~15 days after the filing~~abstaining. ~~The~~Thus ~~repurchase~~99% ~~program~~of ~~expired~~the ~~on March 28,~~voting ~~2017. Any~~shareholders ~~shares~~approved ~~acquired~~such ~~under~~potential ~~this program were retired~~action.

~~Please see~~Annual ~~the~~Report ~~below~~on ~~table~~Form ~~for~~10-K ~~information~~Page ~~with~~10 ~~respect~~First toHartford ~~repurchases by the Company:~~Corporation

Month of Transactions	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs	Number of potential shares that went unpurchased under the plans or programs
				150,000
May 1, 2016 – April 30, 2017a	2,025	$2.45	0	0
May 11, 2016 b	25,000	$3.00	25,000	(25,000)
February 1, 2017 b	25,000	$2.50	25,000	(25,000)
March 1, 2017 b	5,100	$2.50	5,100	(5,100)
March 7, 2017 b	6,666	$2.50	6,666	(6,666)
May 25, 2017 b,c	25,000	$3.00	25,000	(25,000)
TOTAL	88,791	$2.78	86,766	63,234

After the conclusion of the quarter ended January 31, 2018, the number of shareholders fell below 300 (276 as of April 30, 2018), which, subject to other conditions of the SEC’s Regulations, the Company asserts it is eligible to “Go Dark.”

a: The ~~transactions~~common ~~comprised~~stock of the Company currently trades on ~~acquisition~~the OTC Securities Market under the symbol “FHRT”. The common stock of the Company ~~2,025~~has ~~shares~~an ~~were~~illiquid ~~not~~trading ~~conducted~~market ~~pursuant~~and fails to attract any market following. The Company understands that its public shareholders have freely tradable common stock and that maintaining a ~~publicly~~trading market, even if it is ~~announced~~illiquid, ~~program~~is beneficial for the continued ability of the public shareholders to trade the stock. Therefore, the Company intends to maintain at least one of its listings in the Mergent Industrial Manual, the Mergent OTC Industrial Manual, and/or ~~therefore~~the Mergent OTC Unlisted Manual, which by being tri-published in a “recognized securities manual” provides the 39 individual states’ securities regulations “manual exemption” provision under which broker-dealers are ~~discontinued~~free to solicit and trade stock of the published companies thus permitting secondary trading in the Company’s stock for investors in up to 39 states. Further, the Company will attempt to maintain a continued listing through the OTC Securities Market through its Pink Sheets listings; however, there can be no assurance that any broker-dealer will make or continue to make a market in the Company’s common stock; it is required for trading on the OTC Pink Sheets that at least one broker-dealer make a market in the Company’s common stock. However, once it Goes Dark, it is anticipated that the Company’s shares would have far less visibility and the current limited liquidity may be further constrained in the market, and the current broker-dealers making markets in the Company’s common stock may cease doing so, further constraining the market for the Company’s common stock.

~~b: The~~Once ~~transactions~~the ~~comprised~~Company ofGoes Dark, it will have reduced regulatory oversight and, therefore, may be able to implement shareholder initiatives such as share repurchase programs with less regulatory restrictions. By Going Dark, the Company will produce and share far less ~~acquisition~~information ofavailable ~~these~~to ~~shares~~the ~~were~~investing ~~made~~public. Thus ~~pursuant~~investors will often not have relatively current information on which to base their investment decisions. However, the Company’s common stock will still be eligible to trade among public investors and thus continues to be a publicly ~~announced~~traded ~~10b5-1~~entity and continue ~~Private~~to ~~Repurchase~~be ~~Stock~~subject ~~Plan~~to the antifraud and insider trading provisions of the Securities Exchange Act of 1934.

c: The Company ~~offer~~intends to ~~sell~~file ~~these~~its ~~shares~~Form ~~was~~15 to suspend and terminate its reporting ~~initiated~~obligations byin the ~~shareholder~~first onhalf ~~February~~of ~~21,~~fiscal ~~2017~~year 2019.

10b5-1 Private Repurchase Stock Plan:

On January 5, 2017, the Company’s Board of Directors amended and approved the Amended and Restated 10b5-1 Private Repurchase Stock Plan (the “Repurchase Plan”), which was initially adopted on March 29, 2016. The Repurchase Plan provided for the repurchase of up to 150,000 shares of the Company’s common stock in minimum blocks of 15,000 shares and maximum blocks of 25,000 shares. Eligible shareholders were those holding blocks of common stock of the Company in excess of fifteen thousand (15,000) shares and less than three hundred fifty thousand (350,000) shares. Repurchases could be made at management’s discretion from time-to-time only through privately negotiated transactions pursuant to the terms of the 10b5-1 plan to meet the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934. The privately negotiated purchase price could not exceed 1.5 times the highest independent bid or the last independent transaction price and in no event be higher than five ($5.00) dollars per share. The purchases and negotiations could resume 15 days after filing of the quarterly report; the program could be suspended for 15 days before the due date of each next quarterly or annual report filing and could resume 15 days after the filing. The repurchase program expired on March 28, 2017. Any shares acquired under this program were retired.

Annual Report on Form 10-K

Page 11

First Hartford Corporation

Please see the below table for information with respect to repurchases by the Company:

Issuer Repurchases of its Equity Securities

Month of Transactions	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs	Number of potential shares that went unpurchased under the plans or programs
				150,000
May 1, 2016 – April 30, 2017^a	2,025	$2.45	0	0
May 11, 2016^b	25,000	$3.00	25,000	(25,000)
February 1, 2017^b	25,000	$2.50	25,000	(25,000)
March 1, 2017^b	5,100	$2.50	5,100	(5,100)
March 7, 2017^b	6,666	$2.50	6,666	(6,666)
May 25, 2017^b,c	25,000	$3.00	25,000	(25,000)
TOTAL	88,791	$2.78	86,766	63,234

a: The transactions comprised of the acquisition of the 2,025 shares were not conducted pursuant to a publicly announced program, and therefore are discontinued.

b: The transactions comprised of the acquisition of these shares were made pursuant to the publicly announced 10b5-1 Private Repurchase Stock Plan.

c: The offer to sell these shares was initiated by the shareholder on February 21, 2017.

ITEM 6. SELECTED FINANCIAL DATA

Smaller reporting companies are not required to provide the information required by this item.

Annual Report on Form 10-K Page 1012 First Hartford Corporation

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

The discussion and analysis below provides information that the Company believes is relevant to an assessment and understanding of its consolidated financial position, results of operations and cash flows. This discussion and analysis should be read in conjunction with the consolidated financial statements and related notes included elsewhere herein.

This and certain other sections of the Company’s Annual Report on Form 10-K contain statements reflecting the Company’s views about its future performance and constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Readers should consider that various factors, including changes in general economic conditions, interest rates and the availability of funds, and competition and relationships with key customers and their financial condition, may affect the Company’s performance. The Company undertakes no obligation to update publicly any forward-looking statements as a result of new information, future events, or otherwise.

RESULTS OF OPERATIONS

Rental Income

Rental income for the years ended April 30, by type of tenant, follows:

	2017	2016
	2018	2017
Residential	$12,~~171~~227,~~608~~584	$12,~~117~~171,~~191~~608
Commercial	19,~~813~~191,~~217~~847	1819,~~299~~813,~~709~~217
	$31,984,825	$30,416,900
	$31,419,431	$31,984,825

~~Residential~~The ~~rental~~slight ~~income~~increase ~~was~~in upresidential ~~slightly~~rental ~~compared~~income towas ~~the~~primarily ~~prior year. The~~caused ~~increase~~by ~~reflected~~rent ~~more~~increases ~~Section 8-eligible tenants with fewer plan of action concessions~~ at the Somerville, MA property (i.e., Clarendon) ~~property~~, partially offset by lower revenue at the Rockland, MA property due to vacancies from converted apartments needed for the ~~ongoing~~ renovation project.

The ~~increase~~decrease in commercial rental income was primarily caused by ~~rents received~~lower onrent at the ~~Company’s~~Cranston, ~~development~~RI ~~properties~~property ~~(e.g.,~~due ~~New~~to ~~Orleans,~~a ~~LA;~~loss ~~Olathe,~~of ~~KS; Conroe~~a tenant, ~~TX;~~lower ~~etc.~~common area maintenance (CAM) ~~and~~billings ~~additional~~to ~~rents~~tenants resulting from ~~new~~lower ~~tenants~~associated atexpenses, and prior year rents on some of the ~~West~~Company’s development properties that have ~~Springfield~~since been sold (e.g., MAOlathe, ~~and~~KS; ~~Edinburg~~Conroe, TX; ~~properties~~Stanhope, NJ), partially offset by ~~the~~additional ~~impact~~rents ~~of the~~from ~~voluntary~~a ~~foreclosure~~new oftenant at the ~~Putnam~~Company’s Lubbock, CTTX property ~~on June 5, 2015~~.

Service Income

Service income for the years ended April 30 is made up of the following:

	2017	2016
	2018	2017
Preferred Developer Fees	$43,~~839~~935,~~500~~000	$64,~~298~~839,~~250~~500
Management and Other Fees	~~614~~1,~~419~~257,144	~~492~~614,~~845~~419
	$5,453,919	$6,791,095
	$5,192,144	$5,453,919

Preferred developer fees are from CVS and Cumberland Farms. The decrease in preferred developer fees reflected lower fees received from ~~both~~ CVS and, to a lesser extent, Cumberland Farms. The decrease in CVS fees, which continues a trend over the past several years, was the result of a recent acquisition ~~by CVS~~ that has impacted in the slowing of their pipeline for new stores. The ~~smaller~~ decrease in Cumberland Farms ~~was~~ was the result of timing of closings based on the construction schedule.

~~Management~~The increase in management and other fees are ~~mainly~~primarily from the first installment ($350,000) of a developer fee earned as part of the Bronx, NY subsidized housing project and higher fees received from the Company’s unconsolidated Claymont, DE ~~project~~property.

Annual Report on Form 10-K Page 11 First Hartford Corporation

Sales (and Cost of Sales) of Real Estate

When profitable opportunities arise, the Company will buy and sell certain properties. The Company had several purchases and sales of real estate in fiscal years 2017 and 2016. While the Company expects to continue to discover more opportunities going forward, there are no guarantees that they will be discovered or, if discovered, be of the magnitude and profitability of recent real estate sales.

FY 2017

On June 29, 2016, the Company sold a property in Stanhope, NJ for $10,000,051 (cost of $8,294,103). A construction loan with a balance of $6,329,667 was paid off with the proceeds.

On June 30, 2016, the Company sold a portion of its property in Edinburg, TX (i.e., Texas Roadhouse) for $2,210,000 (cost of $1,355,597). A mortgage loan with a balance of $1,279,136 was paid off with the proceeds.

On August 16, 2016, the Company sold a condominium in Wethersfield, CT for $285,000 (cost of $277,191). The net proceeds were used to reduce a mortgage loan on this property. The Company currently owns three other condominiums at this site.

On September 20, 2016, the Company sold a parcel of land in Austin, TX for $6,100,000 (cost of $4,185,023) that was previously ground leased. The Company continued to own land attached to the sold parcel and oversaw construction of a single-tenant retail building of approximately 6,900 square feet on this property. The remainder of this property was sold subsequent to April 30, 2017.

On December 14, 2016, the Company sold a property in Conroe, TX for $8,778,442 (cost of $6,730,715). A mortgage loan with a balance of $5,363,913 was paid off with the proceeds.

On December 28, 2016, the Company sold a property in Olathe, KS for $7,000,000 (cost of $6,867,228). A mortgage loan with a balance of $5,335,000 was paid off with the proceeds.

There were also costs incurred in fiscal year 2017 related to property sales that occurred in the fiscal year ended April 30, 2016 totaling $13,943 that were not anticipated as of the prior fiscal year end.

FY 2016

On May 28, 2015, the Company sold a parcel of land in Pearland, TX for $1,104,161 (cost of $766,786).

On August 6, 2015, the Company sold a property in Austin, TX for $10,246,021 (cost of $7,800,521). A construction loan with a balance of $6,106,437 was paid off with the proceeds.

On February 3, 2016, the Company sold a property in Vernon, NJ for $9,750,000 (cost of $8,906,639).

There were also costs incurred in fiscal year 2016 related to property sales that occurred in the fiscal year ended April 30, 2015 totaling $199,077 that were not anticipated as of the prior fiscal year end.

Other Income

The increase in other income was primarily at the liquor store, which obtained a liquor license in December 2014. Prior to obtaining the liquor license, the store only sold beer and wine. Income from the liquor store has been steadily increasing since obtaining the license.

Annual Report on Form 10-K Page 12 First Hartford Corporation

Operating Costs and Expenses

Rental Expenses

Rental expense for the years ended April 30, by type of tenant, follows:

Residential	2017	2016
Depreciation and Amortization	$2,274,234	$2,218,905
Other Rental Expenses	8,128,427	8,305,098
	$10,402,661	$10,524,003
Commercial
Depreciation and Amortization	$3,393,939	$3,300,138
Other Rental Expenses	6,293,904	6,904,291
	$9,687,843	$10,204,429
Total	$20,090,504	$20,728,432

Residential rental expenses were lower compared to the prior year. The most notable year-over-year items were voucher incentive payments made to tenants at the Rockland, MA property in the prior year that did not occur in the current year and decreases in building repair costs and pool closure due in part to renovation project at Rockland, MA property, partially offset by higher insurance premiums and building repair costs at the Somerville, MA (i.e., Clarendon) property.

The decrease in commercial rental expenses was mainly due to higher costs related to the initial expansion of our shopping center in Edinburg, TX in the prior year and prior year professional and legal expenses incurred as part of the initial effort to refinance the debt at the Cranston, RI shopping center, largely offset by a legal settlement of $200,000 with a former tenant (see Item 3 included within for further discussion) and accelerated amortization expense of deferred commissions arising from the sale of a portion of its property in Edinburg, TX (i.e., Texas Roadhouse).

Service Expenses

Service expenses for the years ended April 30 is made up of the following:

	2017	2016
Preferred Developer Expenses	$5,011,262	$5,695,793
Construction and Other Costs	87,637	95,382
	$5,098,899	$5,791,175

The decrease in preferred developer expenses and fees primarily reflects lower commissions paid commensurate with the lower service revenue offset by higher compensation expense.

Selling, General and Administrative Expenses (“SG&A”)

The increase in SG&A expenses was primarily due to writing-off costs relating to abandoned projects, higher expenses at the liquor store commensurate with the higher volume, expenses related to the Company’s development properties (e.g., New Orleans, LA; Olathe, KS, Conroe, TX, etc.), and higher legal and professional fees.

Annual Report on Form 10-K

Page 13

First Hartford Corporation

~~Non-Operating~~ITEM ~~Income~~7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (~~Expense~~continued):

~~Equity~~Sales ~~in Earnings~~ (~~Losses~~and Cost of Sales) of ~~Unconsolidated~~Real ~~Subsidiaries~~Estate

When profitable opportunities arise, the Company will buy and sell certain properties. The ~~equity~~Company had several purchases and sales of real estate in ~~earnings~~fiscal ~~(losses)~~years 2018 and 2017. While the Company expects to continue to discover more opportunities going forward, there are no guarantees that they will be discovered or, if discovered, be of ~~unconsolidated~~the ~~subsidiaries~~magnitude isand profitability of ~~broken~~recent ~~down~~real asestate ~~follows:~~sales.

	2017	2016
Income from Operations	$325,452	$306,851
Distributions	360,000	360,000
Equity in Earnings of Unconsolidated Subsidiary	$685,452	$666,851

FY 2018

~~The~~St. ~~Company~~Louis, ~~has~~MO an– ~~investment~~Sale inof anProperty: ~~affiliated~~On ~~limited~~May ~~liability entity Dover Parkade~~30, ~~LLC~~2017, ~~(Dover). The~~the Company ~~has~~sold aits ~~50% interest in Dover which~~single-tenant ~~owns~~property ~~a shopping center~~ in ~~Dover~~St. ~~Township~~Louis, ~~NJ. The~~MO ~~operating~~for ~~and~~$6,800,000 ~~financial policies~~(cost of ~~Dover are not controlled by the Company. For the years prior to May 1~~$6, ~~2009~~582, ~~the Company was committed to providing funding to this equity method investee~~820). ~~The~~A ~~Company’s~~loan ~~investment~~with ~~was recorded at cost and subsequently~~a ~~adjusted~~balance ~~for its share~~ of ~~their net income and losses and distributions. To 2009~~$5, ~~losses~~120,000 and ~~distributions~~a ~~from~~credit ~~Dover~~line ~~exceeded~~of ~~the Company’s investment. Since then~~$1,000,000 ~~distributions~~were ~~from~~paid ~~Dover~~off ~~have~~with ~~been credited to income. The Company does not control~~ the ~~rate of distributions of Dover. Such distributions are in~~ ~~excess of Dover’s net assets since its accumulated net losses (including significant amounts for depreciation and amortization) have exceeded capital contributions~~proceeds.

~~Other~~New ~~Income~~Orleans, LA – Sale of Property: On June 7, 2017, the Company sold a parcel of its property in New Orleans, LA for $11,350,000 (cost of $9,042,647). A loan with a balance of $7,436,745 was paid off with the proceeds. The Company continues to hold the parcel of the property that includes the shopping center.

~~Other~~Austin, ~~income~~TX is– ~~broken~~Sale ~~down~~of ~~as follows~~Property: On June 15, 2017, the Company sold its single-tenant property in Austin, TX for $3,210,000 (cost of $3,009,317). A loan with a balance of $1,102,899 was paid off with the proceeds.

	2017	2016
Investment Income	$137,186	$416,811
Clarendon Residual Funds	-0-	189,912
Total	$137,186	$606,723

East Providence, RI – Sale of Property: On September 7, 2017, the Company sold its property held for sale in East Providence, RI for $830,000 (cost of $664,312).

~~The~~Wethersfield, ~~decrease~~CT – Sale of Condominium: On November 14, 2017, the Company sold a condominium in ~~investment~~Wethersfield, ~~income~~CT ~~reflected~~for ~~realized~~$225,000 ~~gains~~(cost of $271,802). The net proceeds were used to pay off a mortgage loan on ~~sales~~this property. The ofCompany owned another two condominiums on this site after this ~~securities~~sale. inThe ~~the~~loss ~~prior~~on ~~year~~the ~~that~~sale ~~did~~of ~~not~~this ~~repeat~~property resulted in the ~~current~~Company ~~year.~~recording an impairment loss on the remaining properties.

~~During~~Spring, ~~the~~TX ~~year~~– ~~ended~~Partial ~~April~~Sale of Property: On January 30, ~~2016~~2018, the Company ~~received~~purchased three adjacent parcels of land in Spring, TX for $~~189~~1,~~912~~161,240 ofincluding closing costs. ~~residual~~Simultaneously, ~~funds~~one ~~that~~of ~~remained~~these inparcels awas ~~reserve~~sold ~~account~~to ~~after~~another ~~payoff~~party for $1,404,504 (cost of ~~the~~$1,008,623, including additional development costs of $549,011). The ~~underlying~~purchase ~~bondholders~~was ~~securitized~~financed by ~~the~~working ~~mortgage~~capital ~~that~~and ~~was~~the ~~refinanced~~proceeds atfrom the sale. The ~~Clarendon~~Company innetted $27,807 of cash for these two transactions, which was received on February ~~2015~~2, 2018. The remaining two parcels will be marketed to retail establishments.

~~Gain~~Wethersfield, CT – Sale of Condominium: On February 28, 2018, the Company sold a condominium in Wethersfield, CT for $255,000 (~~Loss~~cost of $269,807). The Company owns one more condominium on ~~Derivatives~~this ~~(Non-Cash)~~site after this sale.

~~The Company~~Humble, ~~through~~TX ~~its~~– ~~50%~~Sale ~~owned~~of ~~consolidated~~Land: ~~subsidiaries,~~On ~~has entered~~March ~~into~~29, ~~two~~2018, ~~separate~~the ~~floating-to-fixed~~Company ~~interest~~sold ~~rate~~its ~~swap~~land ~~agreements with banks that expire~~ in ~~May 2025 and July 2031. The Company has determined that~~ ~~these~~Humble, ~~derivative~~TX ~~instruments~~for do$650,000 ~~not~~(cost ~~meet the requirements~~ of ~~hedge accounting and have therefore recorded the change in fair value of these derivative instruments through income~~$576,665). ~~Note that the change in fair value recorded through income is a non-cash item.~~

~~Gain~~Brentwood, onNY ~~Voluntary~~– ~~Foreclosure~~Sale of Property: On April 17, 2018, the Company sold a property in Brentwood, NY for $15,700,000 (cost of $11,070,213). A mortgage loan with a balance of $10,590,508 was paid off with the proceeds.

OnIn ~~November~~fiscal 1,year ~~2014~~2018, athere ~~payment~~were ~~was due for the mortgage of the shopping~~also ~~center~~adjustments ~~in Putnam, CT in the amount~~ of ~~approximately~~costs ~~$4,700,000. The~~incurred ~~rentable space~~related ~~of the shopping center was 57,529 square feet, 46% of which was leased~~ to ~~one~~ ~~store. That~~property ~~store~~sales ~~informed the Company~~ that ~~they were~~occurred ~~not~~in ~~renewing their lease, which expired on January 31, 2015, and, as a~~prior ~~result,~~fiscal ~~the Company found it impossible to refinance the mortgage without finding a replacement tenant~~years. ~~Therefore, on June 5, 2015, the Company agreed to transfer title of the property to the lender.~~ The ~~Company~~net ~~recognized~~amount ~~a gain~~ of ~~$2,649,850~~these ~~since~~adjustments ~~the~~resulted ~~mortgage was non-recourse and was~~ in ~~excess~~a ~~of the book value. Pre-tax income for this shopping center was~~ $~~-0- and $44~~41,~~645 for the~~792 ~~years~~reduction ~~ended~~of ~~April 30, 2017 and 2016, respectively~~costs.

Annual Report on Form 10-K

Page 14

First Hartford Corporation

~~Loss~~ITEM on7. MANAGEMENT’S ~~Impairment~~DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued):

~~During~~Sales ~~the~~(and ~~year~~Cost ~~ended April 30, 2016, the Company recorded an impairment loss~~ of ~~$330,700~~Sales) ~~on a non-core property it owns in Wethersfield, CT. The amount~~ of ~~the~~Real ~~impairment~~Estate ~~loss represented the excess of the cost over the estimated net sales proceeds from the property.~~(concluded):

~~Loss~~FY on2017 On June ~~Defeasance~~29, 2016, the Company sold a property in Stanhope, NJ for $10,000,051 (cost of $8,294,103). A construction loan with a balance of $6,329,667 was paid off with the proceeds.

InOn FYJune ~~2017~~30, 2016, the Company ~~paid~~sold a ~~defeasance~~portion ~~premium~~ of ~~$437,776 when refinancing~~ its ~~mortgage~~property ~~loan~~in Edinburg, onTX ~~its~~(i.e., ~~shopping~~Texas ~~center~~Roadhouse) infor ~~Lubbock~~$2,210,000 TX(cost asof $1,355,597). A ~~discussed~~mortgage inloan ~~Note~~with 3a balance of ~~the~~$1,279,136 ~~Financial~~was ~~Statements~~paid ~~included~~off ~~within~~with the proceeds.

~~Interest~~On ~~Expense~~August 16, 2016, the Company sold a condominium in Wethersfield, CT for $285,000 (cost of $277,191). The net proceeds were used to reduce a mortgage loan on this property. The Company owned three other condominiums at this site after this sale.

~~Interest~~On ~~expense~~September ~~for~~20, 2016, the ~~years~~Company ~~ended~~sold ~~April~~a 30parcel of land in Austin, byTX for ~~type~~$6,100,000 (cost of $4,185,023) that was previously ground leased. The Company continued to own land attached to the sold parcel and oversaw construction of a single-tenant retail building of approximately 6,900 square ~~follows:~~feet on this property. The remainder of this property was sold on June 15, 2017.

	2017	2016
Residential	$2,892,724	$2,516,383
Commercial	7,501,274	6,852,573
	$10,393,998	$9,368,956

On December 14, 2016, the Company sold a property in Conroe, TX for $8,778,442 (cost of $6,730,715). A mortgage loan with a balance of $5,363,913 was paid off with the proceeds.

~~The~~On December ~~increase~~28, in2016, ~~commercial interest expense was~~ the ~~result~~Company ofsold ~~expense~~a ~~related~~property toin ~~loans~~Olathe, KS for ~~the~~$7,000,000 ~~Company’s development properties~~ (~~e.g.,~~cost ~~New~~of ~~Orleans~~$6, ~~LA; Olathe~~867, ~~KS, etc.~~228),. A ~~partially~~mortgage ~~offset~~loan with bya ~~savings~~balance ~~from~~of ~~the~~$5,335,000 ~~prior~~was ~~year refinancings~~paid atoff ~~Cranston~~with ~~and~~the ~~CP Associates~~proceeds.

~~The~~There ~~increase~~were inalso ~~residential~~costs ~~interest~~incurred ~~expense~~in ~~was~~fiscal ~~the~~year ~~result~~2017 ofrelated ~~the~~to property ~~refinancing~~sales atthat ~~Rockland~~occurred ~~as discussed~~ in ~~Note~~the 3fiscal ofyear ~~the~~ended ~~Financial~~April ~~Statements included~~30, ~~within~~2016 astotaling ~~the~~$13,943 that ~~loans~~were ~~paid~~not ~~off~~anticipated as ~~part~~ of ~~this~~the ~~refinancing~~prior ~~did~~fiscal ~~not accrue~~year ~~interest~~end.

~~Income~~Other ~~Tax~~Revenues ~~Expense~~ (~~Benefit~~and Expenses)

~~See~~The ~~Note~~increase 7in other revenues and expenses was primarily due to the Company’s ~~financial~~new ~~statements~~restaurant ~~for~~it ~~information~~built ~~about~~and ~~the effective~~owns ~~income~~at ~~tax~~its ~~rate~~Edinburg, TX property. This store was opened on July 14, 2017.

~~As of~~Operating ~~April~~Costs 30, 2017, the Company has a net deferred tax asset in the amount of $671,147. The net deferred tax asset includes Federal net operating loss carryforwards of $1,152,929 that are available to offset future Federal taxable income. The Company has recorded $449,642 as the potential tax effect. In addition, the Company has recorded a net deferred asset in the amount of $250,042, which represents a basis difference in real estate assets owned by the Company. It also has an Alternative Minimum Tax (AMT) credit of $311,917. Offsetting these, the Company has recorded a net deferred liability of $381,301 for untaxed rental income. Lastly, no valuation allowance has been recorded based on anticipated future profitability being able to fully utilize the net operating loss carryforwards and ~~future depreciation benefits.~~Expenses

~~CAPITAL~~Rental ~~RESOURCES AND LIQUIDITY~~Expenses

AtRental ~~April~~expense ~~30,~~for ~~2017,~~ the ~~Company~~years ~~had~~ended ~~$6,250,757~~April ~~of unrestricted cash and cash equivalents. This includes $3~~30,~~819,450~~ belonging to partner entities in which the Company’s financial interests range from .01% (VIEs) to 50%. Funds received from CVS, which are to be paid out in connection with CVS developments, of $129,651 and tenant security deposits held by ~~VIEs~~type of ~~$396~~tenant,~~361~~ ~~are included in restricted cash and cash equivalents.~~ follows:

At April 30, 2017, the Company had $1,538,839 of investments in marketable securities, all of which belongs to partner entities.

Residential	2018	2017
Depreciation and Amortization	$2,308,089	$2,274,234
Other Rental Expenses	8,535,235	8,128,427
	$10,843,324	$10,402,661
Commercial
Depreciation and Amortization	$3,411,084	$3,393,939
Other Rental Expenses	6,699,870	6,293,904
	$10,110,954	$9,687,843

Total	$20,954,278	$20,090,504

~~The~~Annual ~~sources~~Report ~~of future borrowings that may be needed for new construction loans, property purchases, or balloon payments~~ on ~~existing~~Form ~~loans~~10-K ~~are unclear~~Page at15 ~~this~~First ~~time.~~ Hartford Corporation

~~Annual~~ ITEM ~~Report~~7. MANAGEMENT’S onDISCUSSION ~~Form~~AND ANALYSIS ~~10-K~~OF ~~Page~~FINANCIAL 15CONDITION ~~First~~AND ~~Hartford~~ RESULTS ~~Corporation~~OF OPERATIONS (continued):

OnRental ~~July~~Expenses 30, 2015, the Company obtained a credit line with a regional bank. This $2,760,000 line of credit is used from time to time primarily to fund initial investments related to development opportunities. The interest rate on these loans is 3.00% plus One Month ICE LIBOR rate up to maturity date (~~i.e., twelve months from issuance of proceeds~~concluded) ~~and 12.0% thereafter. As of April 30, 2017, the Company had borrowings of $2,650,000 against this credit line.~~:

OnThe ~~December~~increase 7,in ~~2015,~~residential ~~the~~rental ~~Company~~expenses ~~entered~~were ~~into~~mainly afrom ~~$2,000,000 revolving~~higher ~~demand~~legal ~~loan~~fees ~~agreement~~incurred ~~(“line~~at ofthe ~~credit”)~~Rockland, ~~with~~MA aproperty ~~regional~~resulting ~~bank. The~~from ~~interest rate on this loan is Wall Street Journal Prime, with~~ a ~~floor of 3.25%. The~~temporary ~~loan~~cease ~~is unsecured~~ and ~~there~~desist ~~are~~order nofrom ~~guarantors. Interest is to be paid monthly; principal is to be repaid within twelve months or on demand, at~~ the ~~bank’s discretion. There~~Massachusetts ~~are~~Department ~~no prepayment penalties. This line~~ of ~~credit is used~~Environmental ~~from~~Protection ~~time to time primarily to fund initial investments related to development opportunities~~(MassDEP). AsSee ofPart ~~April 30~~I, ~~2017~~Item 3, ~~the~~Legal ~~Company~~Proceedings, ~~had~~on ~~borrowings~~page of9 ~~$2,000,000~~for ~~against~~more ~~this credit line~~information.

OnThe ~~April~~increase 19in commercial rental expenses were primarily related to the Company’s New Orleans, ~~2017~~LA shopping center, which was completed and refinanced in the first quarter of fiscal 2018, and higher expenses at the Edinburg, TX shopping center, including higher property taxes and a fee paid to a tenant to allow the Company ~~entered~~to ~~into~~lease to another tenant. Partially offsetting these increases were expenses incurred in the prior year related to a lawsuit against a former tenant, including a legal settlement of $2200,000. Also,~~000~~ ~~unsecured~~in ~~line~~the prior year there was accelerated amortization expense of ~~credit~~deferred ~~with~~commissions arising from the sale of a ~~regional~~portion ~~bank~~of its property in Edinburg, TX (i. ~~Terms~~e., Texas Roadhouse) and accelerated depreciation of tenant improvements at the ~~line~~Lubbock, TX ofproperties ~~credit~~upon ~~are~~the asdeparture ~~follows:~~of two tenants.

Term:	3 years
Rate:	LIBOR + 3.25%
Fee:	0.50% (One Time)
Unused Fee:	0.25% annually on the unused line
Guarantee:	Full guarantee by the Chairman of the Company (Individual)
Deposits:	Must maintain a minimum of $500,000 at bank
Other:	Each funding request to be at the sole discretion of the bank and only to acquire credit tenanted properties.
Clean Up:	Borrower to be out of debt once each year for at least 30 days.

Service Expenses

AsService ofexpenses ~~April~~for the ~~30,~~years ~~2017,~~ended ~~the~~April ~~Company~~30 ~~had~~is ~~borrowings~~made up of ~~$1,750,000~~the ~~against this credit line.~~following:

Recently Issued Accounting Guidance:

	2018	2017
Preferred Developer Expenses	$4,011,464	$5,011,262
Construction and Other Costs	1,329,606	87,637
	$5,341,070	$5,098,899

~~For a~~The ~~description~~decrease ofin ~~recently~~preferred ~~issued~~developer ~~accounting~~expenses ~~pronouncements,~~and ~~see~~fees ~~Note 1 to the~~primarily ~~consolidated~~reflects ~~financial~~lower ~~statements~~commissions ~~included~~paid incommensurate ~~Item~~with 8the aslower ~~presented~~revenue, ~~in Item 15. Summary~~primarily ofat ~~Significant Accounting Policies~~CVS.

~~CRITICAL~~The ~~ACCOUNTING~~increase ~~POLICIES~~in ~~AND~~construction ~~ESTIMATES:~~expenses relates to unbudgeted costs (i.e., overruns) incurred at the renovation project at the Company’s Rockland, MA property resulting from a temporary cease and desist order from the Massachusetts Department of Environmental Protection (MassDEP). See Part I, Item 3, Legal Proceedings, on page 9 for more information.

~~For a discussion of accounting policies see Note 1 to the consolidated financial statements included in Item 8 as presented in Item 15~~Selling, ~~Summary~~General ofand ~~Significant~~Administrative ~~Accounting~~Expenses ~~Policies.~~(“SG&A”)

The increase in SG&A expenses relates primarily to non-capitalizable legal and professional expenses related to its completed affordable housing deal in the Bronx, NY and costs incurred related to the Rockland, MA matter discussed above, including providing hotels and meals to displaced tenants and legal and professional fees (see Part I, Item 3, Legal Proceedings, on page 9 for more information). These items were partially offset by higher write-offs of costs related to abandoned projects in the prior year.

Non-Operating Income (Expense):

Equity in Earnings (Losses) of Unconsolidated Subsidiaries

The equity in earnings (losses) of unconsolidated subsidiaries is broken down as follows:

	2018	2017
Income from Operations	$321,267	$325,452
Distributions	360,000	360,000
Equity in Earnings of Unconsolidated Subsidiary	$681,267	$685,452

Annual Report on Form 10-K

Page 16

First Hartford Corporation

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (continued):

Non-Operating Income (Expense) (continued):

Equity in Earnings (Losses) of Unconsolidated Subsidiaries (concluded):

The Company has an investment in an affiliated limited liability entity Dover Parkade, LLC, (Dover). The Company has a 50% interest in Dover, which owns a shopping center in Dover Township, NJ. The operating and financial policies of Dover are not controlled by the Company. For years prior to May 1, 2009, the Company was committed to provide funding to this equity method investee. The Company’s investment was recorded at cost and subsequently adjusted for its share of their net income and losses and distributions. Through April 30, 2009, losses and distributions from Dover exceeded the Company’s investment and the Company’s investment balance was reduced below $0 and recorded as a liability. Beginning May 1, 2009, distributions from Dover have been credited to income and any additional losses have not been allowed to further reduce the investment balance. The Company does not control the rate of distributions of Dover. Such distributions are in excess of Dover’s net assets since its accumulated net losses (including significant amounts for depreciation and amortization) have exceeded capital contributions.

Other Income

Other income is broken down as follows:

	2018	2017
Investment Income (Losses)	$(51,081)	$137,186
Proceeds from Lawsuit	200,000	-0-
Total	$148,919	$137,186

The decrease in investment income reflected realized losses on sales of securities in the current year first and fourth quarters.

During the year ended April 30, 2018, the Company received $200,000 from a settlement of a lawsuit filed against another party for breach (relating to an alleged wrongful termination) of a contract to purchase a commercial shopping center owned by the Company and located in New Orleans, LA. As a result, the sale did not go through and the Company retains ownership of the shopping center.

Gain (Loss) on Derivatives

The aggregate fair value of the Company’s interest rate swap agreements as of April 30, 2018 and 2017 were liabilities of $659,780 and $2,023,793, respectively.

On January 1, 2018, the Company entered into three interest rate swap agreements to fix the interest rate on its outstanding debt on its Brentwood, NY property at 4.42%. Upon the sale of the Brentwood property on April 17, 2018, the Company realized a $167,000 gain on settlement of these swap agreements.

Loss on Defeasance

In fiscal year 2017, the Company paid a defeasance premium of $437,776 when refinancing its mortgage loan on its shopping center in Lubbock, TX.

Annual Report on Form 10-K

Page 17

First Hartford Corporation

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (continued):

Non-Operating Income (Expense) (concluded):

Loss on Impairment

In fiscal year 2018, the Company recorded an impairment loss of $40,000 on its two remaining condominiums it owns in Wethersfield, CT. The amount of the impairment loss represented the excess of the cost over the estimated sales proceeds from the condominiums.

Interest Expense

Interest expense for the years ended April 30, by type of tenant, follows:

	2018	2017
Residential	$2,953,063	$2,892,724
Commercial	7,863,036	7,501,274
	$10,816,099	$10,393,998

The increase in residential interest expense was the result of the prior year first quarter refinancing at Rockland (note the loans paid off as part of this refinancing did not accrue interest) and the end of monthly interest subsidy payments upon a loan payoff in March 2018.

The increase in commercial interest expense was the result of prepayment and other debt-related fees incurred upon the sale of the Brentwood, NY property and interest on loans related to the Company’s new restaurant it built and owns at its Edinburg, TX property.

Income Tax Expense (Benefit)

The Company files a Federal consolidated tax return to report all income and deductions for its subsidiaries. The Company and its subsidiaries file income tax returns in several states. The tax returns are filed by the entity that owns the real estate or provides services in such state. Some states do not allow a consolidated or combined tax filing. This sometimes creates income taxes to be greater than expected as income for some subsidiaries cannot be offset by other subsidiaries with operating losses.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the Tax Act) was signed into law. The Tax Act makes significant changes to the Internal Revenue Code, including but not limited to, decreasing the statutory corporate tax rate from 35% to 21% effective January 1, 2018 and repealing AMT tax treatment. The Company calculated its best estimate of the impact of the Tax Act in its income tax provision and re-measured its deferred tax assets and liabilities at the enacted corporate tax rate of 21% as of the enacted date, in accordance with its understanding of the Tax Act and available guidance. During the third quarter of fiscal 2018, the Company recorded charges of approximately $200,000 within its income tax provision in connection with the Tax Act, which related to the revaluation of the Company’s deferred tax assets and liabilities.

On October 26, 2017, the Company was informed that its fiscal year 2016 Federal tax return was selected for examination. This examination is currently in process.

See Note 7 to the Company’s financial statements for information about the effective income tax rate.

Annual Report on Form 10-K

Page 18

First Hartford Corporation

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (continued):

Income Tax Expense (Benefit) (concluded):

As of April 30, 2018, the Company had a net deferred tax liability in the amount of $210,215. The Federal net operating loss carryforwards that were previously available to offset future Federal taxable income have been fully utilized. The Company has recorded a net deferred liability of $250,845 for untaxed rental income and $315,692 for basis differences in the Company’s partnerships. Offsetting these, the Company has recorded a net deferred asset in the amount of $158,589, which represents a basis difference in real estate assets owned by the Company. It also has an Alternative Minimum Tax (AMT) credit of $197,733. Lastly, no valuation allowance has been recorded based on anticipated future profitability being able to fully utilize the AMT credit carryforwards and future depreciation benefits.

CAPITAL RESOURCES AND LIQUIDITY

At April 30, 2018, the Company had $7,206,445 of unrestricted cash and cash equivalents. This includes $4,679,218 belonging to partner entities in which the Company’s financial interests range from .01% (VIEs) to 50%. Funds received from CVS, which are to be paid out in connection with CVS developments, of $375,501, tenant security deposits held by VIEs of $386,505, and cash held in a lender-controlled lockbox account for our Edinburg, TX property of $230,917 are included in restricted cash and cash equivalents.

At April 30, 2018, the Company had $619,432 of investments in marketable securities, all of which belongs to partner entities.

The sources of future borrowings that may be needed for new construction loans, property purchases, or balloon payments on existing loans are unclear at this time.

On July 30, 2015, the Company obtained a credit line with a regional bank. This $2,760,000 line of credit is used from time to time primarily to fund initial investments related to development opportunities. The interest rate on these loans is 3.00% plus One Month ICE LIBOR rate up to maturity date (i.e., twelve months from issuance of proceeds) and 12.0% thereafter. As of April 30, 2018, the Company had borrowings of $2,760,000 against this credit line.

On December 7, 2015, the Company entered into a $2,000,000 revolving demand loan agreement (“line of credit”) with a regional bank. The interest rate on this loan is Wall Street Journal Prime, with a floor of 3.25%. The loan is unsecured and there are no guarantors. Interest is to be paid monthly; principal is to be repaid within twelve months or on demand, at the bank’s discretion. There are no prepayment penalties. This line of credit is used from time to time primarily to fund initial investments related to development opportunities. As of April 30, 2018, the Company had borrowings of $2,000,000 against this credit line. Subsequent to April 30, 2018, on June 11, 2018, this line of credit was increased to $3,000,000 and the final payment date was set at September 30, 2020.

On April 19, 2017, the Company entered into a $2,000,000 unsecured line of credit with a regional bank. This line of credit was increased to $4,000,000 on April 17, 2018. Terms of the line of credit are as follows:

Term:	3 years – matures 5/1/2020
Rate:	LIBOR + 3.25%
Fee:	0.50% (One Time)
Unused Fee:	0.25% annually on the unused line
Guarantee:	Full guarantee by the Chairman of the Company (Individual)
Deposits:	Must maintain a minimum of $500,000 at bank
Other:	Each funding request to be at the sole discretion of the bank and only to acquire credit tenanted properties.
Clean Up:	Borrower to be out of debt once each year for at least 30 days.

As of April 30, 2018, the Company had borrowings of $-0- against this credit line.

Annual Report on Form 10-K

Page 19

First Hartford Corporation

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (continued):

Recently Issued Accounting Guidance:

For a description of recently issued accounting pronouncements, see Note 1 to the consolidated financial statements included in Item 8 as presented in Item 15. Summary of Significant Accounting Policies.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES:

For a discussion of accounting policies see Note 1 to the consolidated financial statements included in Item 8 as presented in Item 15, Summary of Significant Accounting Policies.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Smaller reporting companies are not required to provide the information required by this item.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Financial statements begin at page 3135. See the index to Financial Statements in Item 15.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

~~None~~No change in the Company’s principal independent accountants occurred during the Company’s two most recent fiscal years or any subsequent interim period, nor did any disagreements occur with the Company’s accountants on any matter of accounting principles or practices or financial statement disclosure that would require a current report on Form 8-K.

Annual Report on Form 10-K Page 16 First Hartford Corporation

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain “disclosure controls and procedures”, as such term is defined in Rule 13a – 15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our President and Treasurer, as appropriate, to allow timely decisions regarding required disclosure. We conducted an evaluation (the “Evaluation”), under the supervision and with the participation of the President and Treasurer, of the effectiveness of the design and operation of disclosure controls and procedures (“Disclosure Controls”) as of the end of the period covered by this report pursuant to Rule 13a – 15b of the Exchange Act.

Based on this Evaluation, our President and Treasurer concluded that because of weaknesses in our control environment, our Disclosure Controls were not effective as of the end of the period covered by this report.

Management’s Annual Report on Internal Control over Financial Reporting

The management of First Hartford Corporation is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a – 15(f). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

~~The~~Annual ~~Company’s~~Report ~~internal~~on ~~control~~Form ~~over~~10-K ~~financial~~Page ~~reporting~~20 ~~includes~~First ~~those policies~~Hartford and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.Corporation

~~Because~~ITEM ~~of its inherent limitations, internal controls over financial reporting may not prevent or detect misstatements~~9A. ~~All~~ ~~internal~~CONTROLS ~~control systems,~~AND noPROCEDURES matter how well designed, have inherent limitations, including the possibility of human error and the circumvention of overriding controls. Accordingly, even effective internal control over financial reporting can provide only reasonable assurance with respect to financial statement preparation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.(concluded):

~~Our management assessed the effectiveness of the Company~~Management’s ~~internal control~~Annual ~~over~~Report ~~financial~~on ~~reporting as of April 30, 2017. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in~~ Internal Control~~-Integrated Framework. Based~~ ~~on our assessment, we believe that, as of April 30, 2017, the Company’s internal control~~ over ~~financial reporting was not effective due to~~ ~~the~~Financial ~~existence~~Reporting ~~of the material weaknesses identified by management and disclosed below~~(continued):

~~Lack~~The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of ~~Appropriate~~records ~~Independent~~that, ~~Oversight. There~~in reasonable ~~are~~detail, noaccurately ~~independent~~and ~~members~~fairly reflect the transactions and dispositions of the ~~Board~~assets of ~~Directors~~ ~~who~~the ~~could~~Company; (ii) provide anreasonable ~~appropriate~~assurance that ~~level~~transactions are recorded as necessary to permit preparation of ~~oversight~~financial statements in accordance with accounting principles generally accepted in the United States of America, ~~including~~and that receipts and ~~challenging~~expenditures of the Company are being made only in accordance with authorizations of management’s ~~accounting~~and ~~for~~directors of the Company; and ~~reporting~~(iii) provide reasonable assurance regarding prevention or timely detection of ~~transactions~~unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

~~Although~~Because ~~the~~of ~~Company~~its ~~has~~inherent ~~identified~~limitations, ainternal ~~lack~~controls ofover ~~appropriate~~financial reporting ~~independent~~may not prevent or detect misstatements. All internal control ~~oversight~~systems, asno amatter ~~material~~how ~~weakness~~well designed, anhave ~~independent~~inherent ~~board~~limitations, including the possibility of ~~directors~~human iserror ~~not~~and the circumvention of overriding controls. Accordingly, ~~required~~even byeffective ~~The~~internal ~~OTC~~control ~~Markets~~over ~~(the~~financial ~~electronic~~reporting ~~quotation~~can ~~system~~provide ~~that~~only reasonable ~~trades~~assurance ~~the~~with respect to financial statement preparation. Also, ~~Company’s~~projections ~~securities)~~of ~~and~~any ~~the~~evaluation ~~Company~~of ~~does~~effectiveness ~~not~~to ~~intend~~future periods are subject to the ~~remediate~~risk ~~this~~that controls may become inadequate because of changes in conditions, ~~material~~or ~~weakness~~that atthe ~~this~~degree ~~time~~of compliance with the policies or procedures may deteriorate.

~~The~~Our management assessed the effectiveness of the Company’s ~~has~~internal control ~~engaged~~over afinancial ~~consultant~~reporting toas ~~assist~~of ~~the~~April ~~Company~~30, ~~with~~2018. In ~~certain~~making this ~~complex~~assessment, ~~non-routine~~it ~~and~~used ~~unusual~~the ~~accounting~~criteria ~~issues~~set ~~and~~forth ~~transactions~~by ~~when~~the ~~they~~Committee of Sponsoring ~~are~~Organizations ~~encountered~~of the Treadway Commission (COSO) in Internal Control-Integrated Framework. Based on our assessment, we believe that, as of April 30, 2018, the Company’s internal control over financial reporting was not effective due to the existence of the material weaknesses identified by management and disclosed below:

~~Annual~~ Lack ~~Report~~of onAppropriate ~~Form~~Independent ~~10-K~~Oversight. There ~~Page~~are 17no ~~First~~independent ~~Hartford~~members ~~Corporation~~of the Board of Directors who could provide an appropriate level of oversight, including challenging management’s accounting for and reporting of transactions.

~~Changes~~Although inthe ~~Internal~~Company ~~Control~~has ~~over~~identified ~~Financial~~a ~~Reporting~~lack of appropriate independent oversight as a material weakness, an independent board of directors is not required by The OTC Markets (the electronic quotation system that trades the Company’s securities) and the Company does not intend to remediate this material weakness at this time.

~~During~~The ~~the~~Company ~~years~~has ~~ended~~engaged ~~April~~a ~~30,~~consultant ~~2017~~to ~~and~~assist ~~2016,~~the ~~there~~Company ~~have~~with ~~been no~~certain ~~changes~~complex, innon-routine ~~internal~~and ~~control~~unusual ~~over~~accounting ~~financial~~issues ~~reporting~~and ~~that~~transactions ~~materially~~when ~~affected,~~they or are ~~reasonably likely to materially affect, the Company’s internal control over financial reporting~~encountered.

Changes in Internal Control over Financial Reporting

During the years ended April 30, 2018 and 2017, there have been no changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

None.

Annual Report on Form 10-K Page 1821 First Hartford Corporation

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

(a) Identification of Directors:

The directors of First Hartford Corporation, their ages and the periods during which each has served as such are as follows:

Name	Age	Period of Service
Neil H. Ellis	8990	1966 – Present
David B. Harding	72	1998 – Present
John Toic	46	2015 – Present
Jeffrey Carlson	6263	2015 – Present
John Toic	45	2015 – Present
William Connolly	69	2015 – Present
William Connolly	68	2015 – Present
Jonathan Bellock	32	2017 – Present

There are no arrangements or understandings between any of the foregoing and any other person pursuant to which such person was or is to be selected director or officer.

The directors of the Company are each elected to one-year terms.

(b) Identification of Executive Officers:

The names and ages of all executive officers of First Hartford Corporation, their positions and the periods during which each has served as such are as follows:

Name	Age	Position	Period of Service
John Toic	4546	President	2015 – Present
Neil H. Ellis	8990	Chairman of the Board	1966 – Present
Jeffrey Carlson	6263	Secretary	2015 – Present
Eric J. Harrington	4748	Treasurer	2015 – Present
David B. Harding	72	Vice President	1998 – Present
Jonathan Bellock	32	Vice President	2017 – Present

There are no arrangements or understandings between any of the foregoing and any other person pursuant to which such person was or is to be selected director or officer.

Name	Age	Position	Period of Service
N/A

(d) Family Relationships:

Mr. Bellock is the grandson of Mr. Ellis, the Chairman of the Company. There are no other family relationships among any directors or or executive officers.

Annual Report on Form 10-K Page 1922 First Hartford Corporation

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE (econtinued) ~~Business Experience:~~

~~1. Following~~(e) Business ~~is a brief description of the background of each director and executive officer~~Experience:

Mr1. Following ~~Ellis~~is ~~served as President and as~~ a ~~director~~brief description of the ~~Company~~background ~~since 1966 until 2015, at which time he resigned as President and continued as Chairman~~ of ~~the~~each ~~Board. He~~director ~~is also President~~ and ~~Director~~executive ~~of Green Manor Corporation, a holding company (which includes Journal Publishing Inc., Lubbock Parkade Inc. and MIP 16A Corp.) owned by him and his wife.~~officer:

Mr. ~~Harrington was~~Ellis ~~appointed~~served ~~the~~as ~~role~~President ofand ~~Treasurer~~as ina ~~2015. Mr.~~director ~~Harrington~~of ~~was~~the Company ~~hired~~since in1966 until 2015 as, ~~the~~at ~~Manager~~which oftime ~~Accounting;~~ he ~~now~~resigned ~~serves~~ as ~~the~~President ~~Treasurer~~ and continued as ~~the principal~~Chairman ~~financial officer~~ of the ~~Company~~Board. ~~Mr.~~He ~~Harrington~~is ~~has~~also ~~been~~President aand ~~CPA since~~Director ~~1995;~~of heGreen ~~holds~~Manor Corporation, a ~~B.S.~~holding incompany ~~Business~~(which ~~Administration,~~includes ~~1991,~~Journal ~~from~~Publishing ~~Western~~Inc., ~~New~~Lubbock ~~England~~Parkade ~~College~~Inc. ~~His~~ ~~recent prior business experience has been: Director of Accounting at FM Facility Maintenance from 2012 to January 2015; United Technologies from 2005 through 2012 in various manager of accounting~~ and ~~controller~~ ~~positions~~MIP at16A ~~several~~Corp.) ofowned ~~its~~by ~~subsidiaries;~~him ~~Gerber Scientific 1995 through 2005 in various manager of accounting~~ and ~~controller~~his ~~positions; and at Price Waterhouse from 1991 through 1995 as an accountant~~wife.

Mr. ~~Harding~~Toic ~~has~~was ~~served~~elected ~~as Vice~~ President ~~and as a director~~ of the Company ~~since 1998~~in 2015. ~~Additionally~~Previously, he ~~was~~served ~~the~~as ~~President or~~ Vice President of ~~Richmond~~Municipal ~~Realty,~~Affairs ~~LLC (“Richmond”) a real estate management company owned by him~~ and ~~his wife from January 1996 until it was dissolved. Prior to 1998,~~CVS heDevelopment ~~had~~at ~~worked for~~ the Company insince ~~the finance area for three years~~2003. InHe ~~the past,~~was ~~Richmond~~elected ~~had~~as ~~managed~~a ~~certain~~director ~~properties~~in ~~of the Company~~2015.

Mr. ~~Toic~~Carlson was ~~elected~~appointed ~~President~~to be Secretary of the Company in 2015. ~~Previously,~~Mr. heCarlson ~~served~~has asbeen ~~Vice~~serving ~~President~~as ofGeneral ~~Municipal~~Counsel ~~Affairs~~since 2000, and ~~CVS Development~~has atbeen counsel to the Company since ~~2005. He~~1981; he was ~~elected~~admitted asto apractice ~~director~~law in the State of Connecticut in ~~2015~~1981. Mr. Carlson holds a B.A. from Fairfield University, and a law degree from Southwestern University School of Law.

Mr. ~~Carlson~~ Harrington was appointed tothe berole ~~Secretary~~ of ~~the Company~~Treasurer in 2015. Mr. ~~Carlson~~Harrington ~~has~~was ~~been~~hired ~~serving~~in 2015 as ~~General~~the ~~Counsel~~Manager ~~since~~of ~~2000,~~ Accounting; he now serves as the Treasurer and ~~has~~as ~~been~~the principal ~~counsel~~financial toofficer of the Company. Mr. Harrington has been a CPA since ~~1981~~1995; he ~~was~~holds ~~admitted~~a B.S. in Business Administration, 1991, from Western New England College. His recent prior business experience has been: Director of Accounting at FM Facility Maintenance from 2012 to ~~practice~~January ~~law~~2015; United Technologies from 2005 through 2012 in ~~the~~various ~~State~~manager of ~~Connecticut~~accounting inand controller ~~1981. Mr.~~positions ~~Carlson~~at ~~holds~~several aof ~~B.A.~~its ~~from~~subsidiaries; ~~Fairfield~~Gerber Scientific 1995 ~~University,~~through 2005 in various manager of accounting and acontroller ~~law~~positions; ~~degree~~and at Price Waterhouse from ~~Southwestern~~1991 ~~University~~through ~~School~~1995 ofas ~~Law~~an accountant.

Mr. Connolly has been the Managing Partner of Connolly and Partners, LLC since 2005. He has been involved in the management, development and redevelopment of real estate since 1972. He was elected as a director in 2015.

2Mr. Bellock was appointed a director of the Company on ~~Directorships:~~November 20, 2017 to fill the vacancy created upon long-time director David Harding’s retirement. Mr. Bellock also became vice president to the Company on November 20, 2017, also replacing Mr. Harding. Mr. Bellock received his Bachelor of Arts at Union College and has been with the company since 2009. In 2011, he opened and began operating a new regional office in Houston, TX. Since 2011, he has worked in Houston, TX on project acquisition and development in both the fee-for-service and shopping center development programs.

~~No directors hold any other directorships, except directorships in subsidiaries of the Company, and Mr~~2. ~~Ellis for the~~ ~~aforementioned Green Manor Corporation.~~Directorships:

~~(f) Involvement~~No directors hold any other directorships, except directorships in ~~Certain~~subsidiaries ~~Legal~~of the Company, and Mr. Ellis for the ~~Proceedings:~~ aforementioned Green Manor Corporation.

~~No director or executive officer has been involved in any material legal proceedings required to be disclosed under item 401~~(f) of ~~Regulation~~Involvement ~~S-K~~in ~~promulgated~~Certain ~~by the Commission.~~Legal Proceedings:

No director or executive officer has been involved in any material legal proceedings required to be disclosed under item 401(gf) ~~Promoter~~ ~~and~~of ~~Control Persons:~~Regulation S-K promulgated by the Commission.

~~Not~~Annual ~~applicable.~~Report on Form 10-K Page 23 First Hartford Corporation

~~Annual~~ITEM ~~Report~~10. onDIRECTORS, ~~Form~~EXECUTIVE ~~10-K~~OFFICERS ~~Page~~AND 20CORPORATE ~~First~~GOVERNANCE ~~Hartford Corporation~~(concluded)

(hg) ~~Audit~~ Promoter ~~Committee~~and ~~Financial Expert~~Control Persons:

~~The~~Not ~~Company does not have an audit committee and does not have a committee charter because it does not have any independent members on its Board of Directors~~applicable. Instead, its entire Board of Directors attempts to fulfill the functions of an audit committee. From time to time, the Board of Directors will seek guidance from outside independent consultants. Mr. Ellis, Mr. Harding, Mr. Toic, and Mr. Carlson are members of the Company’s management and Mr. Connolly is an employee of the Company. In addition, Mr. Ellis holds a majority ownership in the Company, see Item 12 herein, and he has various business relationships with the Company described under “Certain Relationships and Related Transactions”, in Item 13. Thus, none of the members of the Board of Directors meet the criteria for independence established by the New York Stock Exchange or other self-regulating stock exchanges. The Company does not otherwise meet the eligibility requirements for listing on the NYSE or with such other self-regulating stock exchanges.

(ih) ~~Section~~ Audit ~~16(a)~~Committee ~~of the Exchange~~Financial ~~Act - Beneficial Ownership Reporting Compliance~~Expert:

~~Section~~The ~~16(a)~~Company ofdoes ~~the~~not ~~Exchange~~have ~~Act~~an ~~requires~~audit ~~the~~committee and does ~~Company’s~~not ~~directors~~have ~~and~~a ~~executive~~committee ~~officers,~~charter ~~and~~because ~~persons~~it ~~who~~does ~~own~~not ~~more~~have ~~than~~any ~~10%~~independent members on its Board of aDirectors. Instead, ~~registered~~its ~~class~~entire Board of Directors attempts to fulfill the ~~Company’s~~functions ~~equity~~of ~~securities,~~an toaudit ~~file~~committee. ~~with~~From time to time, the Board of Directors ~~Commission~~will ~~initial~~seek ~~reports~~guidance offrom ~~beneficial~~outside ~~ownership~~independent onconsultants. ~~Form~~Mr. 3Ellis, Mr. Toic, Mr. Carlson, and ~~reports~~Mr. Bellock are members of the Company’s management and Mr. ~~changes~~Connolly inis ~~beneficial~~an ~~ownership~~employee of the Company’s. ~~equity~~In ~~securities~~addition, onMr. ~~Forms~~Ellis 4holds a majority ownership in the Company, see Item 12 herein, and ~~5. The~~he ~~rules~~has ~~promulgated~~various bybusiness relationships with the ~~Commission~~Company described under ~~Section~~“Certain ~~16(a)~~Relationships and Related Transactions”, in Item 13. Thus, none of the members of the Board of ~~Exchange~~Directors ~~Act~~meet ~~require~~the ~~those~~criteria ~~persons~~for toindependence ~~furnish~~established by the ~~Company~~New ~~with~~York ~~copies~~Stock Exchange ofor ~~all~~other self-regulating stock exchanges. The Company does not ~~reports~~otherwise ~~filed~~meet ~~with~~the eligibility requirements for listing on the ~~Commission~~NYSE ~~pursuant~~or towith such ~~Section~~other ~~16(a)~~self-regulating stock exchanges.

~~Based~~(i) Section ~~solely upon~~ 16(a) ~~review~~ of ~~such forms 3, 4, and 5 actually furnished to~~ the ~~Company, and written representations of the Company’s~~Exchange ~~directors~~Act ~~and~~- ~~executive~~Beneficial ~~officers~~Ownership ~~that~~Reporting ~~no forms were required to be filed, the~~Compliance: ~~Company believes that during fiscal year 2017, all directors and executive officers of the Company have not had to file any reports under Section 16(a) of the Exchange Act.~~

~~Based~~Section ~~solely upon~~ 16(a) ~~review~~ of ~~such~~the ~~forms~~Exchange 3,Act 4,requires ~~and 5 actually furnished to~~ the Company’s bydirectors ~~one 10% shareholder~~ and ~~his~~executive ~~wife~~officers, ~~the Company~~and ~~believes~~persons ~~that~~who ~~during~~own ~~fiscal~~more ~~year~~than ~~ended April 30, 2017 that: Mr. John~~10% ~~Filippelli~~of ~~filed~~a ~~three~~registered ~~Form~~class 5of ~~filings~~the onCompany’s aequity ~~late~~securities, ~~basis~~to ~~correcting~~file ~~his~~with ~~missed~~the ~~filings~~Commission ~~required~~initial toreports ~~have~~of ~~been~~beneficial ~~filed~~ownership on Form 43 atand ~~the~~reports ~~times~~ of ~~such transactions~~ ~~during~~changes ~~fiscal~~in ~~years~~beneficial ~~ended~~ownership ~~April~~of ~~2014, 2015 and 2016 by filing a late filed Form 5 for each such fiscal year;~~ the ~~late~~Company’s ~~filings~~equity ~~report~~securities 15on ~~late~~Forms ~~filed~~4 ~~transactions~~and 5. ~~Additionally,~~The ~~Barbara~~rules K.promulgated ~~Filippelli~~by ~~timely~~the ~~filed~~Commission onunder Section 16(a) ~~Form~~of ~~5 for~~the ~~fiscal~~Exchange ~~year~~Act ~~ended~~require ~~April~~those ~~2017~~persons ~~that~~to ~~five~~furnish ~~transactions~~the ~~should~~Company ~~have~~with ~~been~~copies ~~filed~~of onall ~~Form~~reports 4filed atwith the ~~times~~Commission ofpursuant ~~such~~to ~~transactions~~Section ~~and thus the filing reports such as late filed transactions~~16(a).

Based solely upon a review of such forms 3, 4, and 5 actually furnished to the Company, and written representations of the Company’s directors and executive officers that no forms were required to be filed, the Company believes that during fiscal year 2018, all directors and executive officers of the Company have not had to file any reports under Section 16(ja) ~~Code~~ of the ~~Ethics:~~Exchange Act.

~~The Company’s~~ (j) Code of Ethics, applicable to the Company’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, was included in the second quarter 10-Q filed on December 19, 2005. The Company will provide any person, without charge, a copy of any portion of the Code of Ethics upon request directed to the Treasurer of the Company.:

~~Annual~~ The ~~Report~~Company’s onCode ~~Form~~of Ethics, applicable to the Company’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, was included in the second quarter 10-KQ ~~Page~~filed 21on ~~First~~December ~~Hartford~~19, ~~Corporation~~2005. The Company will provide any person, without charge, a copy of any portion of the Code of Ethics upon request directed to the Treasurer of the Company.

Annual Report on Form 10-K

Page 24

First Hartford Corporation

ITEM 11. EXECUTIVE COMPENSATION

(a) Summary Compensation Table:

Name & Principal Position	Year	Salary	Bonus	Stock Awards	Option Awards	Non-Equity Incentive Plan Compensation	Non-qualified Deferred Compensation Earnings	All Other Compensation	Total
Name& Principal Position	Year	Salary	Bonus	Stock Awards	Option Awards	Non-Equity Incentive Plan Compen- sation	Non- qualified Deferred Compen- sation Earnings	All Other Compensation	Total
Neil H. Ellis, Chairman	~~2017~~2018	$399,~~989~~192	$-0-	$-0-	$-0-	$-0-	$-0-	$-0-	$399,~~989~~192
	2016	$400,000	$-0-	$-0-	$-0-	$-0-	$-0-	$-0-	$400,000
	2017	$399,989	$-0-	$-0-	$-0-	$-0-	$-0-	$-0-	$399,989
John Toic, President	~~2017~~2018	$400,000	$75,000	$-0-	$-0-	$-0-	$-0-	~~401(k)~~ $811,~~477~~954(1)	$~~483~~486,~~477~~954
	2016	$201,455	$299,166	$-0-	$-0-	$-0-	$-0-	$11,090	$511,711
	2017	$400,000	$75,000	$-0-	$-0-	$-0-	$-0-	$8,477(1)	$483,477
Jeffrey Carlson, General Counsel & Secretary	~~2017~~2018	$~~175~~195,~~000~~193	$2550,000	$-0-	$-0-	$-0-	$-0-	~~401(k)~~ $78,~~710~~890(1)	$~~207~~254,~~710~~083
	2016	$175,000	$25,000	$-0-	$-0-	$-0-	$-0-	$7,682	$207,682
	2017	$175,000	$25,000	$-0-	$-0-	$-0-	$-0-	$7,710(1)	$207,710
David B. Harding, Vice President	2017	$113,738	$-0-	$-0-	$-0-	$-0-	$-0-	401(k) $-0-	$113,738
Jonathan R. Bellock, Vice President	2018	$113,077	$50,000	$-0-	$-0-	$-0-	$-0-	$6,571(1)	$169,648
	2016	$150,010	$-0-	$-0-	$-0-	$-0-	$-0-	$5,681	$155,691
	2017	$100,558	$60,000	$-0-	$-0-	$-0-	$-0-	$6,475(1)	$167,033
Eric Harrington, Treasurer	~~2017~~2018	$140,000	$~~-0-~~25,000	$-0-	$-0-	$-0-	$-0-	~~401(k)~~ $5,~~616~~574(1)	$~~145~~170,~~616~~574
	2016	$134,616	$-0-	$-0-	$-0-	$-0-	$-0-	$4,457	$139,073
	2017	$140,000	$-0-	$-0-	$-0-	$-0-	$-0-	$5,616(1)	$145,616
William Connolly, Managing Director of Connolly and Partners, LLC	~~2017~~2018	$~~149~~150,~~993~~000	$5553,~~460~~378	$-0-	$-0-	$-0-	$-0-	~~401(k)~~ $6,~~358~~181(1)	$~~211~~209,~~811~~559
	2016	$149,988	$72,243	$-0-	$-0-	$-0-	$-0-	$4,979	$227,210
	2017	$149,993	$55,460	$-0-	$-0-	$-0-	$-0-	$6,358(1)	$211,811
David B. Harding, retired as Vice President (2)	2018	$55,349	$-0-	$-0-	$-0-	$-0-	$-0-	$-0-	$55,349
	2017	$113,738	$-0-	$-0-	$-0-	$-0-	$-0-	$-0-	$113,738

Footnote 1: The compensation referenced is compensation received by each respective person under the Company’s 401(k) deferred compensation plan and predecessor SIMPLE IRA plan.

Footnote 2: Mr. Harding was serving until the date of his retirement, November 20, 2017. Compensation totaling $20,733 was paid to him from November 21, 2017 through February 23, 2018 as a post-employment Board-approved severance benefit for Mr. Harding’s loyalty and long-term service to the Company

Directors Compensation:

Directors have not received any compensation for serving on the Board since each of the directors is either an officer or employee of the Company and, therefore, not independent, and are each compensated as employees for their officer and employee positions.

(b) Stock Options:

The Company does not have a stock option plan.

Annual Report on Form 10-K Page 2225 First Hartford Corporation

~~(c) No~~ITEM ~~Compensation~~11. ~~Committee:~~EXECUTIVE COMPENSATION (continued)

~~The~~(c) No ~~Company~~Compensation does not have a compensation committee and does not have a committee charter because it does not have independent members on its Board of Directors. Instead its entire Board of Directors attempts to fulfill the functions of a compensation committee. From time to time, the Board of Directors may seek guidance from outside independent consultants. Mr. Ellis, Mr. Harding, Mr. Toic, and Mr. Carlson are members of the Company’s management and Mr. Connolly is an employee of the Company. In addition, Mr. Ellis, the majority owner of the Company, has various business relationships with the Company described under “Certain Relationships and Related Transactions”, in Item 13. Committee:

~~(d)~~ The Company does not have a compensation committee and ~~Benefits~~does not have a committee charter because it does not have independent members on its Board of Directors. Instead its entire Board of Directors attempts to fulfill the functions of a compensation committee. From time to time, the Board of Directors may seek guidance from outside independent consultants. Mr. Ellis, Mr. Toic, Mr. Carlson, and ~~Perquisites:~~Mr. Bellock are members of the Company’s management and Mr. Connolly is an employee of the Company. In addition, Mr. Ellis, the majority owner of the Company, has various business relationships with the Company described under “Certain Relationships and Related Transactions”, in Item 13.

~~Medical~~(d) Benefits ~~Insurance~~and Perquisites:

~~All employees,~~Medical including executive officers, working over 30 hours a week are entitled to Company-paid medical insurance of which the employee pays, family $82 a week, employee and spouse $73 a week, and employee alone $33 a week. Insurance:

~~Mr.~~All employees, ~~Ellis~~including ~~has~~executive ~~opted~~officers, ~~out~~working over 30 hours a week are entitled to Company-paid medical insurance of which the ~~Company~~employee ~~plan~~pays, ~~and~~family is$109 ~~covered~~a byweek, ~~Medicare~~employee and spouse $97 a week, and employee alone $44 a week.

~~Disability~~Mr. ~~Insurance:~~Ellis has opted out of the Company plan and is covered by Medicare. Mr. Toic and Mr. Harrington also do not participate in the Company plan.

~~Short-Term:~~Disability Non-management employees receive the first week week’s pay at 100% of their salary or rate of pay when out on short term disability. The following weeks (based on years of service - one week per year of service) are paid at 70% of salary or rate of pay. Any additional weeks are paid at 60% of salary or rate of pay. The maximum benefit will not exceed $6,000 a month and ends at the 180th day of disability, at which time the long-term disability insurance takes effect.Insurance:

~~Management~~Short-Term ~~employees,~~(up asto ~~defined~~180 bydays): Non-management employees receive the ~~Company~~first ~~and~~week ~~including~~week’s ~~executive~~pay ~~officers,~~at ~~receive~~ 100% of their salary or rate of pay ~~for~~when out ~~the~~on ~~first~~short ~~180~~term ~~days~~disability. The following weeks (based on years of ~~disability~~service ~~and,~~- one ~~thereafter~~week per year of service) are paid at 70% of salary or rate of pay. Any additional weeks are paid at 60% of salary or rate of pay. The maximum benefit will not exceed $6,000 a month and ends at the 180th day of disability, at which time the long-term disability insurance takes effect.

~~Long-Term:~~Management ~~After 180 days of disability,~~ employees ~~receive 60% of their regular straight-time salary for absences due to long-term illness or injury until they reach eligibility for Social Security or death. Management employees~~, as defined by the Company and including executive officers, ~~will~~receive 100% ~~have~~of ~~the~~their ~~difference~~pay ~~between~~for the ~~long-term~~first ~~disability benefits~~180 ~~and~~days ~~normal~~of ~~full~~disability ~~salary~~and, ~~paid~~thereafter, ~~for by~~ the long-term ~~Company~~disability asinsurance ~~determined~~takes ~~by the Board of Directors~~effect.

~~Life~~Long-Term (over ~~Insurance~~180 days): After 180 days of disability, employees receive 60% of their regular straight-time salary for absences due to long-term illness or injury until they reach eligibility for Social Security or death. Management employees, as defined by the Company and including executive officers, will have the difference between the long-term disability benefits and normal full salary paid for by the Company as determined by the Board of Directors.

~~Each~~Life employee of First Hartford, including each executive officer, is eligible to receive life insurance until such employee reaches the age of 70 that, in the event of such employee’s death, will provide proceeds of two times the annual salary of each employee. At the age of 70, the amount of life insurance proceeds each employee is entitled to receive upon his death is equal to one times such employee’s annual salary.Insurance:

~~(e)~~ Each employee ~~Automobiles:~~of First Hartford, including each executive officer, is eligible to receive life insurance until such employee reaches the age of 70 that, in the event of such employee’s death, will provide proceeds of two times the annual salary of each employee. At the age of 70, the amount of life insurance proceeds each employee is entitled to receive upon his death is equal to one times such employee’s annual salary.

ToAnnual ~~assist~~Report ~~management~~on ofForm the Company in carrying out its responsibilities and to improve job performance, the Company provides its executive officers with automobiles. The Company cannot specifically or precisely ascertain the amount of personal benefit, if any, derived by those officers from such automobiles. However, after reasonable inquiry, the Company has concluded that the amount of any such benefit is immaterial and does not in any event exceed $10~~,000~~-K toPage ~~any~~26 ~~officer. No~~First ~~provision~~Hartford ~~had therefore been made for any such benefit. All of the above mentioned officers are provided automobiles.~~Corporation

~~Annual~~ITEM ~~Report~~11. onEXECUTIVE ~~Form~~COMPENSATION ~~10-K Page 23 First Hartford Corporation~~(concluded)

(fe) ~~Deferred Compensation Plan~~ Automobiles:

OnTo assist ~~December~~management 1,of ~~2014,~~ the Company ~~adopted~~in acarrying ~~Deferred~~out ~~Bonus~~its ~~Plan~~responsibilities ~~that~~and ~~awarded~~to ~~six~~improve ~~employees~~job anperformance, ~~annual~~the ~~payment~~Company ofprovides ~~$21,667~~its ~~each~~executive ~~for~~officers ~~three~~with ~~years~~automobiles. ~~Included~~ The inCompany ~~these six~~cannot ~~employees~~specifically ~~are~~or ~~Mr.~~precisely ~~Harding~~ascertain the amount of personal benefit, ~~Mr.~~if ~~Toic~~any, ~~and~~derived ~~Mr.~~by ~~Carlson. All~~those ofofficers ~~the~~from ~~six~~such automobiles. However, ~~employees~~after ~~satisfied~~reasonable inquiry, the ~~vesting~~Company ~~requirement~~has ~~and~~concluded ~~received~~that the ~~first~~amount ~~two~~of ~~annual~~any ~~payments~~such asbenefit ofis ~~April~~immaterial ~~30,~~and ~~2017. The~~does ~~total~~not ~~expense~~in ~~recorded~~any ~~for~~event ~~this~~exceed ~~bonus was~~ $~~390~~10,000, to any officer. ofNo ~~which~~provision ~~$195,000~~had ~~related~~therefore tobeen made for any such benefit. All of the ~~three~~above mentioned ~~named~~officers ~~executives~~are provided automobiles.

~~On March 6, 2014, the Company adopted a~~ (f) Deferred ~~Bonus~~Compensation Plan for Mr. Harding agreeing to pay him 7% of the amount of any remaining Operating Reserve held at Clarendon, as defined, payable to the Company upon approved distribution of the Operating Reserve upon termination of the Partnership Agreement. There has been no expense recognized as of April 30, 2017 as the event needed to trigger this payment has not yet occurred.:

~~(g)~~ On ~~Bonuses:~~December 1, 2014, the Company adopted a Deferred Bonus Plan that awarded six employees an annual payment of $21,667 each for three years. Included in these six employees are Mr. Harding, Mr. Toic, and Mr. Carlson. All of the six employees satisfied the vesting requirement and received all three annual payments as of April 30, 2018. The total expense recorded for this bonus was $390,000, of which $195,000 related to the three named executives.

~~Prior~~On toMarch ~~December 31~~6, ~~2015~~2014, ~~Mr.~~the ~~Toic’s~~Company ~~base~~adopted ~~salary~~a ~~was~~Deferred ~~$105,019. In~~Bonus ~~addition,~~Plan for Mr. ~~Toic had~~Harding anagreeing ~~agreement~~ to pay ~~receive~~him ~~a $~~7~~,500~~% ~~bonus~~of onthe ~~each~~amount ~~CVS / Cumberland Farms fee for service closing, with a minimum~~ of ~~$175,000 for~~ any ~~calendar~~remaining ~~year. During fiscal~~Operating ~~years~~Reserve ~~2017~~held ~~and~~at ~~2016~~Clarendon, ~~Mr. Toic received bonuses of $-0- and $174,167,~~ ~~respectively,~~as ~~under this agreement. In addition~~defined, inpayable ~~fiscal~~to ~~years~~the ~~2017~~Company ~~and~~upon ~~2016, Mr.~~approved ~~Toic~~distribution ~~received~~of ~~bonuses~~the ~~totaling $75,000 and $125,000, respectively, for his~~Operating ~~work~~Reserve onupon ~~the~~termination ~~sale~~ of ~~several~~the ~~properties~~Partnership Agreement. ~~Beginning~~There onhas ~~January~~been ~~1, 2016, Mr. Toic~~ no expense ~~longer~~recognized ~~receives~~as ~~bonuses~~of ~~prospectively~~April ~~(he~~30, ~~may~~2018 ~~still~~as bethe ~~paid~~event ~~for~~needed ~~certain~~to ~~identified~~trigger this ~~property~~payment ~~sales~~has ~~that have~~ not yet occurred ~~as of that date) and his base salary was increased to $400,000~~.

~~In fiscal~~(g) ~~years 2017 and 2016, Mr. Carlson received $25,000 bonuses, respectively, for his work on the sale of several properties.~~Bonuses:

~~Mr.~~In ~~Connolly~~fiscal ~~receives~~years ~~commissions~~2018 ~~equal~~and to2017, 8%Mr. ofToic ~~gross~~received ~~management~~bonuses ~~fees~~totaling ~~paid~~$75,000 byand ~~the three~~$75,000, ~~residential~~respectively, ~~properties. In~~for ~~fiscal~~his ~~years~~work ~~2017~~on ~~and~~the ~~2016,~~sale heof ~~received~~several ~~$55,460 and $72,243, respectively~~properties.

~~Annual~~ In ~~Report~~fiscal years on2018 ~~Form~~and ~~10-K~~2017, ~~Page~~Mr. 24Carlson ~~First~~received ~~Hartford~~bonuses ~~Corporation~~totaling $50,000 and $25,000, respectively, for his work on the sale of several properties.

In fiscal year 2018, Mr. Harrington received a performance bonus of $25,000.

Mr. Connolly receives commissions equal to 8% of gross management fees paid by the three residential properties. In fiscal years 2018 and 2017, he received $53,378 and $55,460, respectively.

Mr. Bellock receives a $5,000 bonus on certain CVS fee for service closings in TX, as well as bonuses for his work on the sale of certain properties. In fiscal years 2018 and 2017, he received bonuses totaling $50,000 and $60,000, respectively.

Annual Report on Form 10-K

Page 27

First Hartford Corporation

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AND RELATED STOCKHOLDER MATTERS

(a-b) Security Ownership of Certain Beneficial Owners, Directors and Executive Officers:

The following table sets forth information as of fifteen days prior to the date hereof, based upon beneficial owner reported filings with the SEC, with respect to all persons known to the Company to be beneficial owners of more than 5% of the Company’s outstanding shares of common stock, by each director, by each officer named in the Summary Compensation Table, and by all officers and directors of the Company as a group:

Title of Class	Name & Address of Beneficial Owner of Identity of Group	Amount and Nature of Beneficial Ownerships	Percent Of Class
	Officers and Directors
Common Stock	Neil H. Ellis	1,~~355~~365,326 (1)	5859.50%
	43 Butternut Road
	Manchester, CT 06040
Common Stock	All Directors and Officers	1,~~355~~389,~~426~~189 (12)	5860.50%
	as a Group (6 persons of which only 1 holds 5% or greater)
	Other 5% Beneficial Owners
Common Stock	John Filippelli	280,458 (23)	12.1%
	23 Lakeview Drive
	Pawling, NY 12564
Common Stock	Joel Lehrer	200,000	8.6%
	231 Atlantic Street, Unit 58
	Keyport, NJ 07735

(1) Includes 417,183 shares owned by a corporation, which is wholly owned by Mr. & Mrs. Ellis; 18,593 shares owned beneficially and of record by Mr. Ellis’ wife; 53,412 shares held as Trustee for his daughters in which he disclaims beneficial ownership. Excludes 14,250 shares held as trustee for the Jonathan G. Ellis Leukemia Foundation (a charitable foundation).

(2) ~~Included~~ Includes in Mr. ~~Filippelli~~Ellis’s shares ~~are 279~~plus 23,~~806~~763 shares ~~over~~held ~~which~~by heMr. ~~has~~Bellock ~~Shared~~and ~~Dispositive~~100 ~~Power~~shares ~~with~~held by Mr. Connolly. Mr. ~~Filippelli’s~~Toic, ~~wife~~Mr. Carlson, and ~~652~~Mr. ~~shares~~Harrington ~~owned~~have bynever ~~Mr.~~held ~~Filippelli’s~~any ~~wife~~shares.

(3) Included in Mr. Filippelli’s shares are 54,652 shares owned by Mr. Filippelli’s wife.

The Company is aware of no arrangements, which may result at a subsequent date in change in control of the Company.

(d) Equity Compensation Plan Information:

None.

Annual Report on Form 10-K Page 2528 First Hartford Corporation

(a) Parkade Center Inc. (a wholly owned subsidiary of First Hartford Corporation) has a 1.99% interest in Hartford Lubbock Parkade LP II, a partnership, which owns a shopping center in Lubbock, TX. Lubbock Parkade Inc., a wholly owned subsidiary of Journal Publishing Inc., owns 98.01% of the Partnership. Journal Publishing Inc. is owned by Neil H. Ellis, the Chairman of First Hartford Corporation, and his wife Elizabeth, through their ownership of Green Manor Corporation. First Hartford Realty Corporation manages the property and receives a 4% management fee, which is the industry norm for a shopping center.

For the years ended April 30, ~~2017~~2018 and ~~2016~~2017, Parkade Center Inc. and First Hartford Realty Corporation earned the following:

2017 2016

	2018	2017
Management Fee (at 4%)	$79,566	$70,554

~~Management~~For ~~Fee~~the ~~(at~~years ~~4%)~~ ended April 30, 2018 and 2017, Parkade Center Inc. received distributions of $707,~~554~~ 411 and $7117,~~217~~802, respectively. For the years ended April 30, 2018 and 2017, Lubbock Parkade Inc. received distributions of $420,000 and $962,378, respectively, from Hartford Lubbock LP II.

For the years ended April 30, 2017 and 2016, Parkade Center Inc. received distributions of $17,802 and $7,264, respectively. For the years ended April 30, 2017 and 2016, Lubbock Parkade Inc. received distributions of $962,378 and $312,000, respectively, from Hartford Lubbock LP II.

(b) Certain Business Relationships:

Refer to (a) above.

There is none.

(d) Transactions with Promoters:

There is none.

(e) Director Independence:

All of the Directors of the Company are executives and/or employees of the Company and by definition are not independent. Further, Mr. Ellis owns in excess of fifty percent of the outstanding stock of the Company. The Company does not have any directors that meet the independence standards for audit, nominating or compensation committee.

The Company’s securities are listed on The OTC Markets (the electronic quotation system that trades the Company’s securities) and such exchanges and systems do not impose requirements that a majority of the Board of Directors be independent.

Annual Report on Form 10-K Page 2629 First Hartford Corporation

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

On December 5, 2013, the Company engaged Mahoney Sabol & Company, LLP to audit 2013 and 2012. This agreement has been renewed for 2014-~~2017~~2018.

The ~~2017~~2018 and ~~2016~~2017 amounts in the table below represent expenses for Mahoney Sabol & Company, LLP.

	2017	2016
	2018	2017
Audit Fees (1)	$~~128~~131,000	$~~125~~130,000
Audit Related Fees (2)	1915,000	~~-0-~~19,000
Tax Fees	-0-	-0-
All Other Fees (3)	3,450	5,147
All Other Fees (3)	4,922	-0-

(1) Fees for the audit of the Company’s annual financial statements included in its Annual Report on Form 10-K, and Form 10-Q’s filed Quarterly.

(2) Fees for the audit of one of the Company’s subsidiaries.

(3) ~~Fees~~ In FY 2018, fees for a special project at one of its subsidiaries and fees for work performed in response to an SEC comment letter. In FY 2017, fees for the review of CAM charges at one of the Company’s subsidiaries and fees for accounting research.

Due to the fact that the Company does not have a formal audit committee, the Board of Directors has:

(a) Reviewed and discussed the Company’s audited financial statements with the independent auditors;

(b) Discussed with the independent auditors the matters required to be discussed by professional standards; and

(c) Reviewed and discussed the independence of the auditors and received a written disclosure from the audit firm confirming its independence.

Based on the review and discussions described above, the Board of Directors approved the inclusion of the Company’s audited financial statements in its Annual Report on Form 10-K for the fiscal year ended April 30, ~~2017~~2018.

By its Board of Directors:

Neil H. Ellis

David B. Harding

William Connolly

John Toic

Jeffrey Carlson

~~Annual~~ William ~~Report on Form 10-K Page 27 First Hartford Corporation~~Connolly

Jonathan Bellock

Annual Report on Form 10-K

Page 30

First Hartford Corporation

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

	Pages
(a) (1) The following items are included in Part II, Item 8 as presented in Item 15:
Report of Independent Registered Public Accounting Firm	30
Financial Statements:
Consolidated Balance Sheets – April 30, 2017 and 2016	31-32
Consolidated Statements of Income for the Years
Ended April 30, 2017 and 2016	33
Consolidated Statements of Comprehensive Income for the Years
Ended April, 30, 2017 and 2016	34
Consolidated Statements of Changes in Shareholders’ Deficiency
for the Years Ended April 30, 2017 and 2016	35
Consolidated Statements of Cash Flows for the Years
Ended April 30, 2017 and 2016	36-37
Notes to Consolidated Financial Statements	38-56

(a) (1) The following items are included in Part II, Item 8 as presented in Item 15:

	Pages
Report of Independent Registered Public Accounting Firm	34

Financial Statements:

Consolidated Balance Sheets – April 30, 2018 and 2017	35-36

Consolidated Statements of Income for the Years
Ended April 30, 2018 and 2017	37

Consolidated Statements of Comprehensive Income for the Years
Ended April, 30, 2018 and 2017	38

Consolidated Statements of Changes in Shareholders’ Equity (Deficiency)
for the Years Ended April 30, 2018 and 2017	39

Consolidated Statements of Cash Flows for the Years
Ended April 30, 2018 and 2017	40-41

Notes to Consolidated Financial Statements	42-60

(2) Financial statement schedules

All financial statement schedules are omitted because they are not required.

(b) Exhibits

(3) Articles of Incorporation and by-laws.

Exhibits (3) to Form-K for the Fiscal Year ended April 30, 1984, Pages 1-18 of Exhibits Binders, incorporated by reference to Securities File Number 0-8862.

(12) Subsidiaries of the Registrant.

Name of Subsidiary	State in which Incorporated
First Hartford Realty Corporation	Delaware
Lead Tech, Inc.	Connecticut
Parkade Center, Inc.	Texas
Plainfield Parkade, Inc.	Connecticut
EH&N Construction Company	Delaware
Dover Parkade, LLC	Delaware
DE 150 Corp.	Delaware
Brewery Parkade, Inc.	Rhode Island
Cranston Parkade, LLC	Rhode Island
Tri-City Plaza, Inc.	Delaware
1150 Union Street Corp.	Massachusetts
CP Associates, LLC	Rhode Island
Trolley Barn Associates, LLC	Rhode Island
Main Street NA Parkade, LLC	Connecticut

Annual Report on Form 10-K Page 2831 First Hartford Corporation

Name of Subsidiary	State in which Incorporated
Connolly & Partners, LLC	Massachusetts
Cranston/BVT Associates Limited Partnership	Rhode Island
CP/BVT Inc.	Rhode Island
FHRC Management Corp.	Delaware
The Shoppes at Rio Grande Valley, LP	Texas
Edinburg SRGV, LLC	Delaware
Rockland Place Apartments, LLC	Massachusetts
Rockland Place Developers, LLC	Massachusetts
Rockland Place Apartments, LP	Massachusetts
EH&NU Inc.	Massachusetts
First BTS, LLC	Texas
First BTS Claiborne, LLC	Louisiana
First GL Conroe, LLC	Texas
First BTS Avondale, LLC	Louisiana
First BTS Austin, LLC	Texas
First GL Buda, LLC	Texas
First BTS Stanhope, LLC	New Jersey
First BTS N Carrollton LLC	Louisiana
First BTS Mid-City, LLC	Louisiana
First BTS Mid-City Manager, Inc.	Louisiana
First BTS Vernon, LLC	New Jersey
First BTS Conroe, LLC	Texas
First BTS MLK & 183, LLC	Texas
First BTS Parmer, LLC	Texas
First BTS West Lake, LLC	Texas
First BTS Brentwood, LLC	New York
First Sappington WAG, LLC	Missouri
First BTS Little Ferry, LLC	New Jersey
First BTS Houma, LLC	Louisiana
First BTS Katy, LLC	Texas
First BTS Cane Island, LLC	Texas
First GL Cedar Park, LLC	Texas
Montgomery SH 105 Associates, LLC	Texas
1813 W. Parmer Associates, LLC	Texas
FHRC Plumbing, Inc.	Massachusetts
Ware Seguin 1518, LLC	Texas
Prosperity EB5 Holdings, LLC	Texas
Pharmacy EB5 Holdings, LLC	Connecticut
999 Realty, LLC	Delaware
The Robert Company, LLC	Texas
SATIS Corporation	Connecticut
First Hartford Rio Grande Valley, Inc.	Texas
Del Valle Parkade, LLC	Texas
EPFH, LLC	Texas
Clarendon Hill Somerville Limited Partnership	Massachusetts
Clarendon Developer, LLC	Massachusetts
Clarendon Hill Somerville, LLC	Massachusetts
LTI Environmental Services, Inc.	Massachusetts
Steeple City Cinemas, Inc.	Massachusetts
Steeple City Liquors, Inc.	Massachusetts
Hartford Lubbock Limited Partnership II	Texas
Connolly Claymont, LLC	Delaware
B’nai B’rith Claymont LP	Delaware

Annual Report on Form 10-K

Page 32

First Hartford Corporation

Name of Subsidiary	State in which Incorporated
Connolly Bronx, LLC	New York
Project Hope Bronx, LLC	New York

(31.1) Exhibit 31.1 CEO Certification

(31.2) Exhibit 31.2 CFO Certification

(32.1) Exhibit 32.1 CEO and CFO Certification as to 18 U.S.C. 1350

None.

Annual Report on Form 10-K Page 2933 First Hartford Corporation

~~REPORT~~ Report OFof ~~INDEPENDENT~~Independent Registered ~~REGISTERED~~Public ~~PUBLIC~~Accounting ~~ACCOUNTING FIRM~~Firm

To the Board of Directors ~~andStockholders of First Hartford Corporation~~ and

~~We have audited the accompanying~~Shareholders ~~consolidated balance sheets~~ of First Hartford Corporation as of April 30, 2017 and 2016, and the related consolidated statements of income, comprehensive income, changes in shareholders’ deficiency, and cash flows for each of the years in the two-year period ended April 30, 2017. First Hartford Corporation’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

~~We conducted our audits in accordance~~Opinion with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the ~~effectiveness~~Financial of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.Statements

InWe ~~our~~have audited ~~opinion~~the accompanying consolidated balance sheets of First Hartford Corporation and Subsidiaries (the “Company”) as of April 30, 2018 and 2017, and the related consolidated ~~financial~~ statements of income, comprehensive income, changes in shareholders’ equity (deficiency), and cash flows for each of the years in the two-year period ended April 30, 2018, and the related notes (collectively referred to ~~above~~as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the ~~consolidated~~ financial position of ~~First~~the ~~Hartford Corporation as~~Company as of April 30, ~~2017~~2018 and ~~2016~~2017, and the ~~consolidated~~ results of its operations and its cash flows for each of the years in the two-year period ended April 30, ~~2017~~ 2018, in conformity with accounting principles generally accepted in the United ~~States~~ States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Mahoney Sabol & Company, LLP

Glastonbury, Connecticut

July 3130, ~~2017~~ 2018

~~Annual~~ We ~~Report~~have served onas ~~Form~~the ~~10-K~~Company’s ~~Page~~auditor 30since ~~First Hartford Corporation~~2014.

~~FIRST~~Annual ~~HARTFORD~~Report ~~CORPORATION~~on ~~AND~~Form ~~SUBSIDIARIES~~10-K Page 34 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS APRIL 30, 2018 AND 2017

APRIL 30, 2017 AND 2016

ASSETS

	2017	2016
	2018	2017
Real estate and equipment:
Developed properties and property under construction (including $77,898,958 in 2017 and $74,693,823 in 2016 for VIEs)	$236,865,867	$228,733,956
Developed properties and property under construction (including $79,969,791 in 2018 and $77,898,958 in 2017 for VIEs)	$251,892,715	$236,865,867
Equipment and tenant improvements (including $2,424,964 in 2017 and $2,425,896 in 2016 for VIEs)	3,689,442	3,763,420
Equipment and tenant improvements (including $2,551,778 in 2018 and $2,424,964 in 2017 for VIEs)	4,274,824	3,689,442
	240,555,309	232,497,376
	256,167,539	240,555,309
Less accumulated depreciation and amortization (including $15,918,495 in 2017 and $13,827,009 in 2016 for VIEs)	(47,449,316)	(42,654,076)
Less accumulated depreciation and amortization (including $18,042,184 in 2018 and $15,918,495 in 2017 for VIEs)	(52,650,839)	(47,449,316)
	193,105,993	189,843,300
	203,516,700	193,105,993
Property held for sale	117,~~389~~465,~~591~~163	1511,~~422~~389,~~312~~591
Cash and cash equivalents (including $2,063,103 in 2017 and $1,507,163 in 2016 for VIEs)	6,250,757	5,982,506
Cash and cash equivalents (including $2,689,207 in 2018 and $2,063,103 in 2017 for VIEs)	7,206,445	6,250,757
Cash and cash equivalents – restricted (including $396,361 in 2017 and $406,749 in 2016 for VIEs)	526,012	2,070,963
Cash and cash equivalents – restricted (including $386,505 in 2018 and $396,361 in 2017 for VIEs)	992,923	526,012
Marketable securities (including $1,538,839 in 2017 and $1,601,795 in 2016 for VIEs)	1,538,839	1,601,795
Marketable securities (including $619,432 in 2018 and $1,538,839 in 2017 for VIEs)	619,432	1,538,839
Accounts and notes receivable, less allowance for doubtful accounts of $135,002 in 2017 and $769,961 in 2016 (including $66,543 in 2017 and $27,651 in 2016 for VIEs)	3,505,541	3,959,574
Accounts and notes receivable, less allowance for doubtful accounts of $56,930 in 2018 and $135,002 in 2017 (including $49,668 in 2018 and $66,543 in 2017 for VIEs)	3,041,624	3,505,541
Other receivables	4,~~064~~494,~~876~~150	54,~~956~~064,~~103~~876
Deposits and escrow accounts (including $8,866,586 in 2017 and $4,137,450 in 2016 for VIEs)	15,930,999	9,937,588
Deposits and escrow accounts (including $7,356,807 in 2018 and $8,866,586 in 2017 for VIEs)	15,284,884	15,930,999
Prepaid expenses (including $327,481 in 2017 and $306,547 in 2016 for VIEs)	1,644,320	1,438,759
Prepaid expenses (including $361,206 in 2018 and $327,481 in 2017 for VIEs)	1,726,281	1,644,320
Deferred expenses, net (including $167,273 in 2017 and $184,722 in 2016 for VIEs)	5,712,547	2,952,630
Deferred expenses, net (including $150,412 in 2018 and $167,273 in 2017 for VIEs)	3,064,329	5,712,547
Investment in affiliates	~~100~~429,847	100
Due from related parties and affiliates	~~152~~199,~~776~~101	~~159~~152,~~954~~776
Deferred tax asset	~~671,147~~-0-	2671,~~130,776~~147
Total assets	$~~244~~248,~~493~~040,~~498~~879	$~~241~~244,~~456~~493,~~360~~498

See accompanying notes.

Annual Report on Form 10-K Page 3135 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

APRIL 30, ~~2017~~2018 AND ~~2016~~2017

(continued)

LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIENCY)

	2017	2016
	2018	2017
Liabilities:
Mortgages and other notes payable:
Construction loans payable	$2632,~~929~~168,~~537~~786	$6826,~~031~~929,~~502~~537
Mortgages payable (including $64,598,997 in 2017 and $56,580,047 in 2016 for VIEs)	195,763,409	149,119,630
Mortgages payable (including $63,617,980 in 2018 and $64,598,997 in 2017 for VIEs)	191,597,383	195,763,409
Notes payable (including $1,704,697 in 2017 and $1,704,697 in 2016 for VIEs)	1,704,697	1,744,697
Notes payable (including $1,704,697 in 2018 and $1,704,697 in 2017 for VIEs)	1,704,697	1,704,697
Lines of credit	64,~~400~~760,000	26,~~652~~400,~~091~~000
Less: Deferred debt issuance costs (including $1,575,494 in 2017 and $1,151,746 in 2016 for VIEs)	(3,067,098)	(1,837,083)
Less: Deferred debt issuance costs (including $1,515,252 in 2018 and $1,575,494 in 2017 for VIEs)	(2,975,038)	(3,067,098)
	227,730,545	219,710,837
	227,255,828	227,730,545
Accounts payable (including $569,600 in 2017 and $961,884 in 2016 for VIEs)	2,915,400	3,701,702
Accounts payable (including $1,017,870 in 2018 and $569,600 in 2017 for VIEs)	3,295,223	2,915,400
Other payables	46,~~966~~556,~~246~~675	84,~~843~~966,~~015~~246
Accrued liabilities (including $3,382,307 in 2017 and $3,254,953 in 2016 for VIEs)	5,699,875	6,124,930
Accrued liabilities (including $3,557,776 in 2018 and $3,382,307 in 2017 for VIEs)	7,456,930	5,699,875
Derivative liability	2659,~~023,793~~780	42,~~693~~023,~~209~~793
Deferred income (including $227,936 in 2017 and $254,576 in 2016 for VIEs)	622,461	677,694
Deferred income (including $221,296 in 2018 and $227,936 in 2017 for VIEs)	885,635	622,461
Other liabilities	1,~~328~~007,~~909~~642	1,~~654~~328,~~361~~909
Due to related parties and affiliates (including $446,990 in 2017 and $430,269 in 2016 for VIEs)	598,843	602,121
Due to related parties and affiliates (including $464,608 in 2018 and $446,990 in 2017 for VIEs)	616,516	598,843
Total liabilities	245,886,072	246,007,869
Deferred tax liability	210,215	0
Total liabilities	247,944,444	245,886,072
Commitments and Contingencies
Shareholders’ Deficiency:
Shareholders’ Equity (Deficiency):
First Hartford Corporation
Preferred stock, $1 par value; $.50 cumulative and convertible; authorized 4,000,000 shares; no shares outstanding	-0-	-0-
Common stock, $1 par value; authorized 6,000,000 shares: issued 3,236,843 in 2017 and 3,298,609 in 2016, outstanding 2,340,799 and 2,404,590 in 2017 and 2016, respectively	3,236,843	3,298,609
Common stock, $1 par value; authorized 6,000,000 shares: issued 3,211,843 in 2018 and 3,236,843 in 2017, outstanding 2,315,799 and 2,340,799 in 2018 and 2017, respectively	3,211,843	3,236,843
Capital in excess of par	5,~~093~~043,779	5,~~198~~093,~~928~~779
Accumulated deficit	(54,~~612~~037,~~263~~658)	(85,~~600~~612,~~495~~263)
Accumulated other comprehensive income (loss)	-0-	-0-
Accumulated other comprehensive income	-0-	-0-
Treasury stock, at cost, 896,044 and 894,019 shares in 2017 and 2016, respectively	(4,989,384)	(4,984,416)
Treasury stock, at cost, 896,044 shares in 2018 and 2017	(4,989,384)	(4,989,384)
Total First Hartford Corporation	(2771,~~271,025~~420)	(52,~~087~~271,~~374~~025)
Noncontrolling interests	~~878~~867,~~451~~855	~~535~~878,~~865~~451
Total shareholders’ deficiency	(1,392,574)	(4,551,509)
Total shareholders’ equity (deficiency)	96,435	(1,392,574)
Total liabilities and shareholders’ deficiency	$244,493,498	$241,456,360
Total liabilities and shareholders’ equity (deficiency)	$248,040,879	$244,493,498

See accompanying notes.

Annual Report on Form 10-K Page 3236 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED APRIL 30, ~~2017~~2018 AND ~~2016~~2017

	2017	2016
	2018	2017
Revenues:
Rental income	$31,~~984~~419,~~825~~431	$3031,~~416~~984,~~900~~825
Service income	5,~~453~~192,~~919~~144	65,~~791~~453,~~095~~919
Sales of real estate	3440,~~373~~424,~~493~~504	2134,~~100~~373,~~182~~493
Other revenues	35,~~858~~982,~~059~~883	3,~~555~~858,~~335~~059
	75,670,296	61,863,512
	83,018,962	75,670,296
Operating costs and expenses:
Rental expenses (includes depreciation and amortization of $5,668,173 and $5,519,043 in 2017 and 2016, respectively)	20,090,504	20,728,432
Rental expenses (includes depreciation and amortization of $5,719,173 and $5,668,173 in 2018 and 2017, respectively)	20,954,278	20,090,504
Service expenses	5,~~098~~341,~~899~~070	5,~~791~~098,~~175~~899
Cost of real estate sales	2732,~~723~~454,~~800~~414	1727,~~673~~723,~~023~~800
Selling, general and administrative expenses	9,078,059	7,141,236
Other expenses	6,777,589	3,981,173
	61,991,262	51,333,866
Selling, general and administrative expenses	5,867,999	5,096,886
Income from operations	13,679,034	10,529,646
	71,395,350	61,991,262
Income from operations	11,623,612	13,679,034
Non-operating income (expense):
Equity in earnings of unconsolidated subsidiaries	~~685~~681,~~452~~267	~~666~~685,~~851~~452
Other income	~~137~~148,~~186~~919	~~606~~137,~~723~~186
Gain / (loss) on derivatives (non-cash)	2,669,416	(2,177,879)
Gain (loss) on derivatives	1,531,013	2,669,416
Loss on defeasance	~~(437,776)~~-0-	~~-0-~~(437,776)
Gain on voluntary foreclosure	-0-	2,649,850
Loss on impairment	(40,000)	-0-
Loss on impairment	-0-	(330,700)
Interest expense	(10,816,099)	(10,393,998)
Interest expense	(10,393,998)	(9,368,956)
	(8,494,900)	(7,339,720)
	(7,339,720)	(7,954,111)
Income before income taxes	3,128,712	6,339,314
Income before income taxes	6,339,314	2,575,535
Income tax expense	1,213,479	1,859,941
Income tax expense	1,859,941	932,147
Consolidated net income	1,915,233	4,479,373
Consolidated net income	4,479,373	1,643,388
Net (income) loss attributable to noncontrolling interests	(340,628)	(1,491,141)
Net (income) / loss attributable to noncontrolling interests	(1,491,141)	124,538
Net income attributable to First Hartford Corporation	$1,574,605	$2,988,232
Net income attributable to First Hartford Corporation	$2,988,232	$1,767,926
Net income per share – basic	$0.68	$1.26
Net income per share – basic	$1.26	$0.73
Net income per share – diluted	$0.68	$1.26
Net income per share – diluted	$1.26	$0.73
Shares used in basic per share computation	2,320,799	2,375,617
Shares used in basic per share computation	2,375,617	2,407,526
Shares used in diluted per share computation	2,320,799	2,375,617
Shares used in diluted per share computation	2,375,617	2,407,526

See accompanying notes.

Annual Report on Form 10-K Page 3337 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	2018	2017

Consolidated net income	$1,915,233	$4,479,373


Other comprehensive income (loss), net of taxes:
Unrealized gains (losses) on marketable securities	150,153	112,813

Total comprehensive income	2,065,386	4,592,186

Amounts attributable to noncontrolling interests:
Net (income) loss	(340,628)	(1,491,141)
Unrealized (gains) losses on marketable securities	(150,153)	(112,813)

	(490,781)	(1,603,954)

Comprehensive income attributable to First Hartford Corporation	$1,574,605	$2,988,232

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

	2017	2016
Consolidated net income	$4,479,373	$1,643,388
Other comprehensive income / (loss), net of taxes:
Unrealized gains / (losses) on marketable securities	112,813	(466,872)
Total comprehensive income	4,592,186	1,176,516
Amounts attributable to noncontrolling interests:
Net (income) / loss	(1,491,141)	124,538
Unrealized (gains) / losses on marketable securities	(112,813)	371,057
	(1,603,954)	495,595
Comprehensive income attributable to First Hartford Corporation	$2,988,232	$1,672,111

See accompanying notes.

Annual Report on Form 10-K Page 3438 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIENCY) FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIENCY

	Common Stock	Capital in Excess of Par	Accumulated Deficit	Accumulated Other Comprehensive Income	Treasury Stock	Total First Hartford Corporation	Noncontrolling Interests	Total

Balance, April 30, 2016	$3,298,609	$5,198,928	$(8,600,495)	$-0-	$(4,984,416)	$(5,087,374)	$535,865	$(4,551,509)

Distributions	-0-	-0-	-0-	-0-	-0-	-0-	(1,261,368)	(1,261,368)

Purchase of common stock	(61,766)	(105,149)	-0-	-0-	(4,968)	(171,883)	-0-	(171,883)

Net income	-0-	-0-	2,988,232	-0-	-0-	2,988,232	1,491,141	4,479,373

Unrealized gain on marketable securities	-0-	-0-	-0-	-0-	-0-	-0-	112,813	112,813

Balance, April 30, 2017	3,236,843	5,093,779	(5,612,263)	-0-	(4,989,384)	(2,271,025)	878,451	(1,392,574)


Distributions	-0-	-0-	-0-	-0-	-0-	-0-	(501,377)	(501,377)

Purchase of common stock	(25,000)	(50,000)	-0-	-0-	-0-	(75,000)	-0-	(75,000)

Net income	-0-	-0-	1,574,605	-0-	-0-	1,574,605	340,628	1,915,233

Unrealized gain on marketable securities	-0-	-0-	-0-	-0-	-0-	-0-	150,153	150,153

Balance, April 30, 2018	$3,211,843	$5,043,779	$(4,037,658)	$ -0-	$(4,989,384)	$(771,420)	$867,855	$96,435

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

	Common Stock	Capital in Excess of Par	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income*	Treasury Stock	Total First Hartford Corporation	Noncontrolling Interests	Total
Balance, April 30, 2015	$3,298,609	$5,198,928	$(10,368,421)	$95,815	$(4,970,082)	$(6,745,151)	$2,632,855	$(4,112,296)
Distribution	-0-	-0-	-0-	-0-	-0-	-0-	(1,601,395)	(1,601,395)
Purchase of common stock	-0-	-0-	-0-	-0-	(14,334)	(14,334)	-0-	(14,334)
Net income (loss)	-0-	-0-	1,767,926	-0-	-0-	1,767,926	(124,538)	1,643,388
Unrealized loss on marketable securities	-0-	-0-	-0-	(95,815)	-0-	(95,815)	(371,057)	(466,872)
Balance, April 30, 2016	3,298,609	5,198,928	(8,600,495)	-0-	(4,984,416)	(5,087,374)	535,865	(4,551,509)
Distribution	-0-	-0-	-0-	-0-	-0-	-0-	(1,261,368)	(1,261,368)
Purchase of common stock	(61,766)	(105,149)	-0-	-0-	(4,968)	(171,883)	-0-	(171,883)
Net income	-0-	-0-	2,988,232	-0-	-0-	2,988,232	1,491,141	4,479,373
Unrealized gain on marketable securities	-0-	-0-	-0-	-0-	-0-	-0-	112,813	112,813
Balance, April 30, 2017	$3,236,843	$5,093,779	$(5,612,263)	$ -0-	$(4,989,384)	$(2,271,025)	$878,451	$(1,392,574)

*Consists exclusively of net unrealized gains (losses) on available-for-sale marketable securities.

See accompanying notes.

Annual Report on Form 10-K Page 3539 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

CONSOLIDATED STATEMENTS OF CASH FLOWS

	2018	2017
Operating activities:

Consolidated net income	$1,915,233	$4,479,373
Adjustments to reconcile consolidated net income
to net cash provided by operating activities:
Equity in earnings of unconsolidated subsidiaries, net of
distributions of $360,000 in 2018 and $360,000 in 2017	(321,267)	(325,452)
Gain on sale of real estate	(7,970,090)	(6,649,693)
Loss on impairment	40,000	-0-
Depreciation of real estate and equipment	5,486,495	5,453,963
Amortization of deferred expenses	566,069	868,263
Deferred income taxes	881,362	1,459,629
Unrealized (gain) loss on derivatives	(1,364,013)	(2,669,416)
Changes in operating assets and liabilities:
Accounts, notes and other receivables	34,643	2,345,260
Deposits and escrows	767,035	4,519,094
Prepaid expenses	(81,961)	(205,561)
Deferred expenses	2,174,209	(4,858,195)
Cash and cash equivalents – restricted	(466,911)	1,544,951
Accrued liabilities	1,757,055	(425,055)
Deferred income	263,174	(55,233)
Accounts and other payables	1,970,252	(4,663,071)
Net cash provided by (used in) operating activities	5,651,285	818,857

Investing activities:
Investments in marketable securities	(232,114)	(466,827)
Proceeds from sale of marketable securities	1,301,674	642,596
Purchases of equipment and tenant improvements	(976,168)	(169,283)
Investments in affiliated companies	(429,747)	-0-
Proceeds from sales of real estate	40,424,504	34,373,493
Additions to developed properties and property under construction	(43,491,020)	(32,238,452)
Net cash provided by (used in) investing activities	(3,402,871)	2,141,527

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

	2017	2016
Operating activities:
Consolidated net income	$4,479,373	$1,643,388
Adjustments to reconcile consolidated net income
to net cash provided by operating activities:
Equity in earnings of unconsolidated subsidiaries, net of
distributions of $360,000 in 2017 and $360,000 in 2016	(325,452)	(306,851)
Gain on sale of real estate	(6,649,693)	(3,427,159)
Gain on voluntary foreclosure	-0-	(2,649,850)
Loss on impairment	-0-	330,700
Depreciation of real estate and equipment	5,453,963	5,210,982
Amortization of deferred expenses	868,263	388,414
Deferred income taxes	1,459,629	671,231
(Gain) / loss on derivatives	(2,669,416)	2,177,879
Changes in operating assets and liabilities:
Accounts, notes and other receivables	2,345,260	6,998,755
Deposits and escrows	4,519,094	(459,504)
Prepaid expenses	(205,561)	(260,531)
Deferred expenses	(4,858,195)	821,944
Cash and cash equivalents – restricted	1,544,951	(1,122,242)
Accrued liabilities	(425,055)	272,732
Deferred income	(55,233)	169,398
Accounts and other payables	(4,663,071)	(4,443,478)
Net cash provided by operating activities	818,857	6,015,808
Investing activities:
Investments in marketable securities	(466,827)	(3,189,006)
Proceeds from sale of marketable securities	642,596	5,084,737
Purchases of equipment and tenant improvements	(169,283)	(193,541)
Proceeds from sales of real estate	34,373,493	21,100,182
Additions to developed properties and property under construction	(32,238,452)	(53,846,161)
Net cash provided by (used in) investing activities	2,141,527	(31,043,789)

See accompanying notes.

Annual Report on Form 10-K Page 3640 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED APRIL 30, 2018 AND 2017 (continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS

	2018	2017
Financing activities:

Purchase of common stock	$(75,000)	$(171,883)
Distributions to noncontrolling interests	(501,377)	(1,261,368)
Proceeds from:
Construction loans	23,242,195	12,282,080
Mortgages	7,526,407	11,929,657
Notes	-0-	-0-
Credit lines	5,360,000	5,775,000
Principal payments on:
Construction loans	(12,435,273)	(15,051,475)
Mortgages	(17,381,026)	(14,130,953)
Notes	-0-	(40,000)
Credit lines	(7,000,000)	(2,027,091)
Advances to related parties and affiliates, net	(28,652)	3,900
Net cash provided by (used in) financing activities	(1,292,726)	(2,692,133)

Net change in cash and cash equivalents	955,688	268,251
Cash and cash equivalents, beginning of year	6,250,757	5,982,506
Cash and cash equivalents, end of year	$7,206,445	$6,250,757
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the year for interest	$10,602,132	$10,189,862
Cash paid during the year for income taxes	$259,166	$434,890

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

Debt refinancing in 1^st quarter:
New mortgage loan	$8,565,000	$14,300,000
Debt reduced	(5,567,673)	(5,359,713)
Escrow funded	(120,920)	(8,019,977)
Net cash from refinancing in 1^st quarter	$2,876,407	$920,310

Debt refinancing in 2^nd quarter:
New mortgage loan	$-0-	$32,500,000
Debt reduced	(0)	(31,030,767)
Escrow funded	(0)	(1,100,000)
Net cash from refinancing in 2^nd quarter	$-0-	$369,233

Debt refinancing in 3^rd quarter:
New mortgage loan	$-0-	$21,186,745
Debt reduced	(0)	(18,139,103)
Escrow funded	(0)	(1,392,528)
Net cash from refinancing in 3^rd quarter	$-0-	$1,655,114
Debt refinancing in 4^th quarter:
New mortgage loan	$-0-	$-0-
Debt reduced	(-0-)	(-0-)
Net cash from refinancing in 4^th quarter	$-0-	$-0-

(continued)

	2017	2016
Financing activities:
Purchase of common stock	$(171,883)	$(14,334)
Distributions to noncontrolling interests	(1,261,368)	(1,601,395)
Proceeds from:
Construction loans	12,282,080	24,343,442
Mortgages	11,929,657	11,752,500
Notes	-0-	-0-
Credit lines	5,775,000	3,140,928
Principal payments on:
Construction loans	(15,051,475)	(11,865,147)
Mortgages	(14,130,953)	(4,575,136)
Notes	(40,000)	-0-
Credit lines	(2,027,091)	(488,837)
Advances to related parties and affiliates, net	3,900	620,125
Net cash provided by / (used in) financing activities	(2,692,133)	21,312,146
Net change in cash and cash equivalents	268,251	(3,715,835)
Cash and cash equivalents, beginning of year	5,982,506	9,698,341
Cash and equivalents, end of year	$6,250,757	$5,982,506
Cash paid during the year for interest	$10,189,862	$8,952,062
Cash paid during the year for income taxes	$434,890	$762,994

Debt refinancing in 1st quarter:
New mortgage loan	$14,300,000	$39,000,000
Debt reduced	(5,359,713)	(39,723,828)
Escrow funded	(8,019,977)	(-0-)
Net cash from refinancing in 1st quarter	$920,310	$(723,828)
Debt refinancing in 2nd quarter:
New mortgage loan	$32,500,000	$-0-
Debt reduced	(31,030,767)	(-0-)
Escrow funded	(1,100,000)	(-0-)
Net cash from refinancing in 2nd quarter	$369,233	$-0-
Debt refinancing in 3rd quarter:
New mortgage loan	$21,186,745	$-0-
Debt reduced	(18,139,103)	(-0-)
Escrow funded	(1,392,528)	(-0-)
Net cash from refinancing in 3rd quarter	$1,655,114	$-0-
Debt refinancing in 4th quarter:
New mortgage loan	$-0-	$-0-
Debt reduced	(-0-)	(-0-)
Net cash from refinancing in 4th quarter	$-0-	$-0-

See accompanying notes.

Annual Report on Form 10-K Page 3741 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

1. Summary of Significant Accounting Policies:

Description of Business

First Hartford Corporation (the Company) was incorporated in Maine in 1909 and is engaged in the purchase, development, ownership, management and sale of real estate, all of which is considered the “Real Estate Operation” segment. The Company has a second segment “Fee for Service” in which the Company is engaged as a preferred developer for CVS and Cumberland Farms (see Service Income to follow).

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and all other entities in which the Company has a controlling financial interest. The latter includes those in which the Company has been determined to be the primary beneficiary of a variable interest entity or otherwise meets certain criteria as a sole general partner or managing member in accordance with the consolidation guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification. As such, included in the consolidated financial statements are the accounts of Rockland Place Apartments Limited Partnership and Clarendon Hill Somerville Limited Partnership. The Company’s ownership percentage in these variable interest entity partnerships is nominal. All intercompany balances and transactions have been eliminated in consolidation.

Estimates

The preparation of consolidated 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, the disclosure of contingent assets and liabilities as of 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.

Financial Statement Presentation

Because the Company is engaged in the development and sale of real estate at various stages of construction, the operating cycle may extend beyond one year. Accordingly, following the usual practice of the real estate industry, the accompanying consolidated balance sheets are unclassified.

Statements of Cash Flows

For purposes of the statements of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Revenue Recognition

Rental Income – Rental income is recognized on a straight-line basis over the terms of the respective leases and consists of base rent and reimbursements for certain costs such as real estate taxes, utilities, insurance, common maintenance and other recoverable costs as provided in the lease agreements. There are no contingent rents. If conditions of rent are not met, certain tenants may have rights to pay percentage rent not to exceed stated rent. Currently, there are a very limited number of tenants on percentage rent.

Annual Report on Form 10-K Page 3842 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, ~~2017~~2018 AND ~~2016~~2017

1. Summary of Significant Accounting Policies (continued):

Revenue Recognition (concluded):

Service Income -– The Company is party to preferred developer agreements with CVS and Cumberland Farms. Under these agreements, the Company’s fee for such services provided is recognized as earned when services, as outlined in the development agreements, are provided. Fees earned related to the development of pharmacy stores for CVS during the years ended April 30, ~~2017~~2018 and ~~2016~~2017 were $32,~~394~~695,~~500~~000 and $43,~~767~~394,~~000~~500, respectively. Fees earned for Cumberland Farms during the years ended April 30, ~~2017~~2018 and ~~2016~~2017 were $1,~~445~~240,000 and $1,~~531~~445,~~250~~000, respectively. These fees are included in service income in the consolidated statements of income.

The Company also provides management and maintenance services to others, primarily the Company’s unconsolidated Claymont, DE property. Fees for such services provided are recognized in service income as earned when services are provided.

Sales of Real Estate – The Company recognizes sales of real estate as revenue upon the transfer of title and when substantially all performance requisites have been fulfilled. For the years ended April 30, ~~2017~~2018 and ~~2016~~2017, the Company had sales of $3440,~~373~~424,~~493~~504 and $2134,~~100~~373,~~182~~493, respectively. The cost of the property sold was $2732,~~723~~454,~~800~~414 and $1727,~~673~~723,~~023~~800 for ~~2017~~2018 and ~~2016~~2017, respectively. None of the property sold was otherwise providing significant ongoing cash flows to the Company.

Construction Income -– The Company primarily develops real estate for its own use. However, revenues from long-term projects built for third parties are recognized on the percentage-of-completion method of accounting based on costs incurred to date in relation to total actual costs and estimated costs to complete. Revisions in costs and profit estimates are reflected in operations during the accounting period in which the facts become known. The Company provides for estimated losses on contracts in the year such losses become known. There were no ongoing long-term construction projects or ~~revenue~~ revenue recognized for the years ended April 30, ~~2017~~2018 and ~~2016~~2017.

Other Receivables and Payables

Pursuant to the Company’s Preferred Developer Agreement with CVS, the Company is obligated to fund allowable costs incurred in connection with the identification and development of new retail pharmacy stores for which it receives direct reimbursements from CVS. Payables for allowable costs incurred in connection with these activities but not yet funded were $45,~~363~~004,~~317~~438 and $74,~~478~~363,~~581~~317 as of April 30, ~~2017~~2018 and ~~2016~~2017 respectively, and have been included as “other payables” in the consolidated balance sheets. Related reimbursements due from CVS were $4,~~064~~494,~~876~~150 and $54,~~956~~064,~~103~~876 as of April 30, ~~2017~~2018 and ~~2016~~2017, respectively, and have been included in “other receivables” in the consolidated balance sheets.

Also included in “other payables” as of April 30, 2018 was $1,208,263 of cost reimbursements due to CVS upon completion of its Little Ferry, TX project.

Cash and Cash Equivalents – Restricted

Cash and cash equivalents – restricted, ~~consist~~includes of funds received from CVS in connection with the Company’s Preferred Developer Agreement. Such amounts are to be used for the payment of costs incurred by the Company for the development and construction of CVS retail pharmacy stores. The restricted cash also includes Tenant Security Deposits held by the VIEs and cash held in a lender-controlled lockbox account for our Edinburg, TX property.

Annual Report on Form 10-K Page 3943 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

1. Summary of Significant Accounting Policies (continued):

Developed Properties, Equipment and Tenant Improvements

Developed properties, equipment and tenant improvements are recorded at cost.

Depreciation and amortization are provided using the straight-line method based on the following estimated useful lives.

Description	Years
Developed properties	15 – 40
Equipment	3 – 10
Tenant improvements	Lesser of improvement life or lease term

Expenditures for major renewals and betterments, which extend the useful lives of developed properties, equipment and tenant improvements, are capitalized. Expenditures for maintenance and repairs are charged to operations as incurred.

Property Under Construction

The Company capitalizes costs directly associated with property under construction. Such costs include materials, construction labor and payroll cost, allocation of salaries and payroll cost from direct activities such as engineering, purchasing and legal and services provided by subcontractors. Material carrying costs for property taxes, insurance and interest are also capitalized during the period of active construction until construction is substantially complete (see Note 3).

The Company capitalizes labor cost for direct work by offsite staff on specific projects. In the year ended April 30, ~~2017~~2018, $52243,~~500~~853 was capitalized. In the year ended April 30, ~~2016~~2017, $~~131~~52,~~028~~500 was capitalized.

Property Held for Sale

The Company classifies property as “held for sale” if management commits to sell the property and actively markets the property to potential buyers at fair market value, the property is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such property, and the sale is probable within one year.

Deferred Expenses

Expenditures directly related to real estate under consideration for development are deferred and included in deferred expenses in the consolidated balance sheets. These costs include option payments, attorney’s fees, architect and engineering fees, consultants, etc., but only to the extent they are from outside sources. If development of the real estate commences, all of the accumulated costs are reclassified to property under construction in the consolidated balance sheets. If the project is later abandoned, all of the accumulated costs are charged to expense.

Annual Report on Form 10-K Page 4044 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, ~~2017~~2018 AND ~~2016~~2017

1. Summary of Significant Accounting Policies (continued):

Deferred Expenses (concluded):

Leasing costs incurred, primarily commissions, are capitalized for signed leases and included in deferred expenses in the accompanying consolidated balance sheets. Such costs are amortized using the straight-line method over the terms of the related leases. The unamortized balance of such cost was $1,~~226~~064,~~778~~774 and $1,~~086~~226,~~042~~778 as of April 30, ~~2017~~2018 and ~~2016~~2017, respectively.

Amortization expense for the next five years isand thereafter is expected to be as follows:

Year Ending April 30,
2018	$238,625
2019	$224,669
2019	196,538
2020	138,851
2020	131,934
2021	122,576
2021	117,048
2022	111,562
2022	106,033
2023	95,220
Thereafter	~~436~~371,~~600~~896
Total	$1,~~226~~064,~~778~~774

Investment in Affiliated Entities

The Company has an investment in an affiliated limited liability entity Dover Parkade, LLC, (“Dover”). The Company has a 50% interest in Dover which owns a shopping center in Dover Township, NJ. The operating and financial policies of Dover are not controlled by the Company. For years prior to May 1, 2009, the Company was committed to provide funding to this equity method investee. The Company’s investment was recorded at cost and subsequently adjusted for its share of their net income and losses and distributions. Through April 30, 2009, losses and distributions from Dover exceeded the Company’s investment and the Company’s investment balance was reduced below $0 and recorded as a liability. Beginning May 1, 2009, distributions from Dover have been credited to income and any additional losses have not been allowed to further reduce the investment balance. The resulting carrying value of this investment of ($1,~~328~~007,~~909~~642) as of April 30, ~~2017~~2018 and ($1,~~654~~328,~~361~~909) as of April 30, ~~2016~~2017 is included in other liabilities. The Company recorded equity in earnings of unconsolidated subsidiaries of $~~685~~681,~~452~~267 and $~~666~~685,~~851~~452 for the years ended April 30, ~~2017~~2018 and ~~2016~~2017, respectively, which includes distributions of $360,000 in each year.

On October 4, 2011, the Company entered into a partnership with a nonprofit entity which purchased a 99 year leasehold interest in a 208 unit subsidized housing project in Claymont, Delaware. The Company is a non-controlling .01% limited partner in the entity. The Company’s investment is carried at cost of $100. A subsidiary of the Company is the managing agent.

~~Annual~~ In ~~Report~~August on2017, ~~Form~~the ~~10-K~~Company ~~Page~~finalized 41an agreement ~~First~~to ~~Hartford~~invest ~~Corporation~~in an affiliated limited liability company called Ware Seguin 1518, LLC. The Company accounts for its 50% interest in Ware Seguin 1518, LLC under the equity method of accounting. Ware Seguin 1518, LLC owns property in Schertz, TX that it plans to develop for approximately 285 single family residential lots and approximately 15 acres of commercial or other uses. The operating and financial policies of Ware Seguin 1518, LLC are not controlled by the Company. The Company’s initial investment was $326,498 and the Company committed to invest an additional amount up to $500,000, of which an additional $103,149 was made as of April 30, 2018. Additional future investments may be required if agreed by the Members. The Company is also a guarantor of 50% of a $1,000,000 bank loan obtained by Ware Sequin 1518, LLC that was used to purchase the property. There has been no income statement activity as of April 30, 2018.

Annual Report on Form 10-K

Page 45

First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE ~~YEARS~~ YEARS ENDED APRIL 30, ~~2017~~2018 AND ~~2016~~2017

1. Summary of Significant Accounting Policies (continued):

Investment in Affiliated Entities (concluded):

On April 19, 2018, a 75%-owned subsidiary of the Company invested in a limited liability company that purchased a 100 unit subsidized housing property in the Bronx, NY for $14,900,000. The Company, through this investment, is a non-controlling .005% Class B member in the limited liability company. The Company’s investment is carried at cost of $100. The managing member has delegated the management of the property to the Company, for which it will be paid a management fee of 4% of operating revenue. The Company, through a wholly-owned subsidiary, will be the general contractor for the renovation of this property, which is expected to cost approximately $9,350,000. Finally, a developer fee of $3,669,000 will be paid to the 75%-owned subsidiary of the Company. The first installment of this developer fee ($350,000) was paid upon closing; the second installment of this developer fee ($848,877) will be paid at conversion to permanent financing; and the balance of the developer fee ($2,470,123) will be paid over the next 15 years from net cash flow of the property.

Fair Value Measurements

Certain assets and liabilities are presented at fair value on a recurring basis. In addition, fair values are disclosed for certain other assets and liabilities. In all cases, fair value is determined using valuation techniques based on a hierarchy of inputs. A summary of the hierarchy follows:

Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities.

·	Level 1 –	Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities.

·	Level 2–	Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant observable inputs are available, either directly or indirectly such as interest rates and yield curves that are observable at commonly quoted intervals; and

·	Level 3 –	Prices or valuations that require inputs that are unobservable.

Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant observable inputs are available, either directly or indirectly such as interest rates and yield curves that are observable at commonly quoted intervals; and

Level 3 – Prices or valuations that require inputs that are unobservable.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The Company’s financial instruments include cash and cash equivalents, accounts receivable, marketable securities, accounts payable, accrued expenses and debt. The fair values of accounts receivable, accounts payable and accrued expenses are estimated to approximate their carrying amounts because of their relative short-term nature. In general, the carrying amount of variable rate debt approximates its fair value. Further, the carrying amount of fixed rate debt approximates fair value debt since the interest rates on the debt approximates the Company’s current incremental borrowing rate. Information about the fair values of marketable securities and derivative liabilities is presented below.

~~Level 1~~Annual Report on Form 10-K Page 46 First Hartford Corporation

Marketable Securities – Common and Preferred Stocks

The Company determines the appropriate classifications of its investments in marketable debt and equity securities at the time of purchase and re-evaluates such determinations at each balance sheet date. As of April 30, 2017 and 2016, investments consist of equity securities, which are classified as available for sale. Investments in marketable securities are stated at fair value. Fair value for marketable securities is based on the last sale of the period obtained from recognized stock exchanges (i.e. Level 1). Net unrealized holding gains and temporary losses on equity securities are included as a separate component of the deficiency. Net unrealized gains of $112,813 as of April 30, 2017 and losses of $466,872 as of April 30, 2016 are included in noncontrolling interests. Gains or losses on securities sold are based on the specific identification method.

Annual Report on Form 10-K Page 42 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, ~~2017~~2018 AND ~~2016~~2017

1. Summary of Significant Accounting Policies (continued):

Fair Value Measurements (concluded):

Level 1

Marketable Securities – Common and Preferred Stocks

The Company determines the appropriate classifications of its investments in marketable debt and equity securities at the time of purchase and re-evaluates such determinations at each balance sheet date. As of April 30, 2018 and 2017, investments consist of equity securities, which are classified as available for sale. Investments in marketable securities are stated at fair value of $619,432 and $1,538,839 as of April 30, 2018 and 2017 (cost of $501,787 and $1,571,349). Fair value for marketable securities is based on the last sale of the period obtained from recognized stock exchanges (i.e. Level 1). Net unrealized holding gains and temporary losses on equity securities are included as a separate component of the deficiency. Net unrealized gains of $150,153 and $112,813 are included in noncontrolling interests for the years ended April 30, 2018 and 2017. Gains or losses on securities sold are based on the specific identification method.

Level 2

Derivative Instruments

The Company, through its 50% owned consolidated subsidiaries, has entered into two separate floating-to-fixed interest rate swap agreements with banks that expire in May 2025 and July 2031. The Company has determined that these derivative instruments do not meet the requirements of hedge accounting and have therefore recorded the change in fair value of these derivative instruments through income in the consolidated statement of operations. The gain / (loss) on derivatives incurred during the years ended April 30, ~~2017~~2018 and ~~2016~~ 2017 totaled $21,~~669~~531,~~416~~013 and ($2,~~177~~669,~~879)~~416, respectively, and the Company has recorded a liability of $2659,~~023,793~~780 and $42,~~693~~023,~~209~~793 in the consolidated balance sheets, which represents the fair value of the interest rate swaps as of April 30, ~~2017~~ 2018 and ~~2016~~2017, respectively.

~~Level~~The 3following table presents information about the Company’s respective assets and liabilities measured at fair value on a recurring basis at April 30, 2018 and 2017, including the fair value measurements and the level of inputs used in determining those fair values:

Debt

April 30, 2018	Level 1	Level 2	Level 3	Total
Assets:
U.S. Equity Securities	$619,432	$ -0-	$ -0-	$619,432
Interest Rate Swap Agreement	$ -0-	$625,841	$ -0-	$625,841
	$619,432	$625,841	$ -0-	$1,245,273
Liabilities:
Interest Rate Swap Agreement	$ -0-	$(1,285,621)	$ -0-	$(1,285,621)

April 30, 2017	Level 1	Level 2	Level 3	Total
Assets:
U.S. Equity Securities	$1,538,839	$ -0-	$ -0-	$1,538,839
Liabilities:
Interest Rate Swap Agreements	$ -0-	$(2,023,793)	$ -0-	$(2,023,793)

AThe ~~VIE of the~~ Company ~~assumed~~recognizes atransfers ~~third~~between ~~mortgage~~levels ~~note~~within ~~with~~the ~~Massachusetts~~hierarchy ~~Housing~~as ~~Finance Agency (MHFA) on November 1, 2006, having a balance~~ of ~~$18,315,482. The note bears interest at~~ the ~~rate~~beginning of ~~5.36% per annum. The VIE has~~ the ~~right~~reporting ~~to purchase the note upon maturity for the fair value of the note as determined by an appraiser~~period. ~~The~~There ~~mortgage~~have ~~loan~~been ~~was recorded at its~~no ~~estimated~~significant ~~fair~~transfers ~~value~~between onlevels ~~the~~within ~~date of acquisition. The fair value of~~ the ~~third mortgage~~hierarchy ~~note~~for ~~has been determined based on~~ the ~~fair~~years ~~value of the property on~~ended ~~the acquisition date less the primary loan balances. As of~~ April 30, ~~2017,~~2018 ~~the carrying~~and ~~amount of the loan was $1,828,910~~2017.

~~There~~Annual ~~were~~Report ~~no gross realized and unrealized gains and losses~~ on ~~Level~~Form 310-K ~~assets~~Page ~~and~~47 ~~liabilities~~First ~~for~~Hartford ~~the years ended April 30, 2017 and 2016.~~ Corporation

~~The Company recognizes transfers between levels within~~FIRST ~~the~~HARTFORD ~~hierarchy~~CORPORATION asAND ~~of the beginning of the reporting period. There have been no significant transfers between levels within the hierarchy for the years ended April 30, 2017 and 2016.~~SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

1. Summary of Significant Accounting Policies (continued):

Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount might not be recovered.

Income Taxes

Deferred income taxes are provided on the differences between the financial statement and income tax bases of assets and liabilities and on net operating loss carryforwards using the enacted tax rates.

A valuation allowance ~~would~~is be provided for deferred ~~income~~ income tax assets for which realization is not likely in the near term.

~~Annual~~ As ~~Report~~of April 30, 2018 and 2017, the Company had no significant uncertain income tax positions. The Company recognizes interest and penalties on ~~Form~~any ~~10-K~~uncertain ~~Page~~income 43tax ~~First~~positions ~~Hartford~~as ~~Corporation~~a component of income tax expense. During the years ended April 30, 2018 and 2017, the Company did not recognize any interest or penalties related to unrecognized tax benefits.

~~FIRST~~The statute of limitations is three years unless there ~~HARTFORD~~is ~~CORPORATION~~fraud ~~AND~~or ~~SUBSIDIARIES~~substantial understatement of income. Therefore, tax returns beginning with fiscal year 2015 are open to examination by Federal, local and state authorities.

~~NOTES~~On TOOctober 26, 2017, the Company was informed that its ~~CONSOLIDATED~~fiscal ~~FINANCIAL~~year ~~STATEMENTS~~2016 Federal tax return was selected for examination. This examination is currently in process.

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

1. Summary of Significant Accounting Policies (continued):

Income Taxes (concluded):

As of April 30, 2017 and 2016, the Company has no significant uncertain income tax positions. The Company recognizes interest and penalties on any uncertain income tax positions as a component of income tax expense. During the years ended April 30, 2017 and 2016, the Company did not recognize any interest or penalties related to unrecognized tax benefits.

The statute of limitations is three years unless there is fraud or substantial understatement of income. Therefore, tax returns beginning with fiscal year 2014 are open to examination by Federal, local and state authorities.

Stock Compensation

Share-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant).

Earnings (loss) per share (EPS)

Basic earnings (loss) per share amounts are determined using the weighted-average outstanding common shares for the year. Diluted earnings (loss) per share amounts include the weighted-average outstanding common shares as well as potentially dilutive common stock options and warrants using the “treasury stock” method. There were no options outstanding at April 30, ~~2017~~2018 or April 30, ~~2016~~2017.

New Accounting Pronouncements

In May 2014, the FASB issued aan ~~standard~~Accounting onStandards Update ~~revenue~~(ASU) No. 2016-02, Revenues from Contracts with Customers (Topic 606), ~~recognition~~which ~~providing~~provides a single, comprehensive revenue recognition model for all contracts with customers. The revenue standard is based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration of which the entity expects to be entitled in exchanged for those goods or services. The standard is effective ~~beginning~~for ~~January~~fiscal 1,years ~~2017,~~beginning ~~with~~after noDecember ~~early~~15, ~~adoption permitted~~2017. The ~~amendments~~ standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. WeThe ~~are~~Company is currently evaluating the ~~adoption method~~ ~~options~~potential ~~and the~~ impact of ~~the~~adopting ~~new~~this ~~guidance~~ASU on ~~our~~its consolidated financial statements.

InAnnual ~~February~~Report 2015, the FASB issued a standard that amends the current consolidation guidance. The amendments affect both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. The changes are extensive and apply to all companies. The need to assess an entity under the different consolidation model may change previous consolidation conclusions. The standard is effective in fiscal periods beginning after December 15, 2015 with early adoption permitted. The Company has evaluated the impact of the new guidance on ~~its~~Form ~~consolidated~~10-K ~~financial~~Page ~~statements~~48 ~~and concluded~~First ~~that~~Hartford ~~it has no impact on its consolidated financial statements.~~Corporation

Annual Report on Form 10-K Page 44 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, ~~2017~~2018 AND ~~2016~~2017

1. Summary of Significant Accounting Policies (concluded):

New Accounting Pronouncements (concluded):

In February 2016, the FASB issued ~~Accounting Standards Update (~~ASU) No. 2016-02, Leases, (Topic 842), which is intended to improve financial reporting around leasing transactions. The ASU affects all companies and other organizations that engage in lease transactions (both lessee and lessor) that lease assets such as real estate and manufacturing equipment. This ASU will require organizations that lease assets—referred to as “leases”—to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. ASU No. 2016-02 is effective for fiscal years ~~and interim periods within those years~~ beginning ~~January 1~~after December 15, ~~2019~~2018. The Company is incurrently ~~process~~evaluating ~~of assessing~~ the potential impact of ~~the adoption~~adopting ofthis ASU ~~No. 2016-02~~ on its consolidated financial ~~position, results of operations and cash flows~~statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The ASU provides guidance on how certain cash receipts and cash payments are to be presented and classified in the statement of cash flows. For public entities, ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the potential impact of adopting this ~~guidance~~ASU on its consolidated financial statements.

In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The ASU requires companies to include restricted cash with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The ASU will require disclosure of a reconciliation between the balance sheet and the statement of cash flows when the balance sheet includes more than one line item for cash and cash equivalents. An entity with material restricted cash and cash equivalents will be required to disclose the nature of the restrictions. This ASU is effective for fiscal years beginning after December 15, 2017. Upon adoption of this ASU, restricted cash and cash equivalent balances will be included with cash and cash equivalent balances as of the beginning and ending of each period presented in the Company’s consolidated statements of cash flows. In addition, separate line items reconciling restricted cash and cash equivalents to the changes in cash and cash equivalents will no longer be presented within the operating, investing, and financing sections of the Company’s consolidated statements of cash flows.

2. Consolidated Variable Interest Entities

The Company’s consolidated financial statements include the accounts of Rockland Place Apartments Limited Partnership (“Rockland”), Clarendon Hill Somerville Limited Partnership (“Clarendon”) and Trolley Barn Associates, LLC (“Trolley Barn”). The Company has consolidated Rockland, Clarendon and Trolley Barn based on the express legal rights and obligations provided to it by the underlying partnership agreements and its control of their business activity.

Connolly and Partners, LLC (75% owned by the Company) has a .01% ownership interest in and is a general partner of Rockland. Connolly and Partners, LLC also owns 49% of Clarendon Hill Somerville, LLC which owns .01% of and is the general partner of Clarendon. Trolley Barn is 50% owned by the Company.

Rockland owns and operates a rental housing project consisting of 204 units located in Rockland, Massachusetts. Clarendon owns and operates a 501 unit apartment complex in Somerville, Massachusetts. Both projects were renovated and are managed by the Company. Renovation costs were financed with loans from MHFA, subsidies from U.S. Department of Housing and Urban Development (HUD) and limited partner capital contributions.

Annual Report on Form 10-K

Page 49

First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

2. Consolidated Variable Interest Entities (continued):

Each building of the projects qualifies for low-income housing credits pursuant to Internal Revenue Code Section 42 (“Section 42”), which regulates the use of the projects as to occupant eligibility and unit gross rent, among other requirements. Each building of the projects must meet the provisions of these regulations during each of fifteen consecutive years in order to remain qualified to receive the credits. In addition, Rockland and Clarendon have executed an Extended Low-Income Housing Agreement, which requires the utilization of each project pursuant to Section 42 through the compliance period, even if Rockland or Clarendon disposes of the project.

Each project’s low-income housing credits are contingent on its ability to maintain compliance with applicable sections of Section 42. Failure to maintain compliance with occupant eligibility, and/or unit gross rent, or to correct noncompliance within a specified time period could result in recapture of previously taken tax credits plus interest. In addition, such potential noncompliance may result in an adjustment to the capital contributed by the investment limited partner.

Annual Report on Form 10-K Page 45 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

2. Consolidated Variable Interest Entities (concluded):

Rockland has an agreement with the Rockland Housing Authority whereby the Housing Authority has the option to purchase the property, after the 15-year tax credit compliant period on January 1, 2024, from Rockland. The option price is based on a specified formula in the agreement.

Clarendon has an agreement with the 51% owner of Clarendon Hill Somerville, LLC, Clarendon Hill Towers Tenant Association, LLC (“CHTTA”), whereby CHTTA has an option to purchase the property after the 15 year tax credit compliance period from the partnership. The option price is the greater of:

a. Outstanding debt and taxes, or

b. Fair market value of the property

The assets at April 30, ~~2017~~2018 and ~~2016~~2017 of the consolidated VIEs (Rockland and Clarendon) that can be used only to settle their obligations and the liabilities for which creditors (or beneficial interest holders) do not have recourse to the general credit of the Company are shown parenthetically in the line items of the consolidated balance sheets.

A summary of the assets and liabilities of Rockland and Clarendon included in the Company’s consolidated balance sheets as follows:

	April 30,
	2017		2016
	2018	2017
Real estate and equipment, net	$66,~~732~~691,~~664~~049	$66,732,664	~~$65,735,521~~
Other assets	1311,~~417~~607,~~929~~936	13,417,929	~~8,195,007~~
Total assets	8078,~~150~~298,~~593~~985	80,150,593	~~73,930,528~~
Intercompany profit elimination	(2,~~719~~603,~~143~~570)	(2,719,143)	~~(2,863,451)~~
Consolidated	$7775,~~431~~695,~~450~~415	$77,431,450	~~$71,067,077~~
Mortgages and other notes payable	$6463,~~728~~807,~~200~~424	$64,728,200	~~$57,132,998~~
Other liabilities	4,~~179~~796,~~842~~289	4,179,842	~~4,471,413~~
Total liabilities	$68,~~908~~603,~~042~~713	$68,908,042	~~$61,604,411~~

~~Substantially~~Annual ~~all~~Report ~~assets~~on ofForm ~~Rockland~~10-K ~~and~~Page ~~Clarendon~~50 ~~are pledged~~First asHartford collateral for its debt. The recourse of the holders of the mortgages and other notes payable is limited to the assets of Rockland and Clarendon. Combined revenues for Rockland and Clarendon were $12,171,608 for the year ended April 30, 2017 and $12,117,191 for the year ended April 30, 2016. The combined net loss for Rockland and Clarendon was $843,327 for the year ended April 30, 2017 and $390,055 for the year ended April 30, 2016. Since the Company’s ownership interest in both entities is nominal, substantially all of such losses are allocated to the noncontrolling interests in the consolidated financial statements. Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

2. Consolidated Variable Interest Entities (concluded):

Substantially all assets of Rockland and Clarendon are pledged as collateral for its debt. The recourse of the holders of the mortgages and other notes payable is limited to the assets of Rockland and Clarendon. Combined revenues for Rockland and Clarendon were $12,227,584 for the year ended April 30, 2018 and $12,171,608 for the year ended April 30, 2017. The combined net loss for Rockland and Clarendon was $1,447,093 for the year ended April 30, 2018 and $843,327 for the year ended April 30, 2017. Since the Company’s ownership interest in both entities is nominal, substantially all of such losses are allocated to the noncontrolling interests in the consolidated financial statements.

Trolley Barn’s only asset is approximately seven acres of land in Cranston, RI with a carrying value of $391,905.

Annual Report on Form 10-K Page 46 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

3. Construction Loans, Mortgages, Notes Payable, and Lines of Credit:

Information about the Company’s debt follows:

	2017	2016
	2018	2017
Construction loans and mortgages payable with interest rates ranging from zero to 7.25% at April 30, 2017 and 2016 and maturities at various dates through 2056.	$222,692,946	$217,151,132
Construction loans and mortgages payable with interest rates ranging from
Notes payable with interest rates ranging from zero to 4.40% at April 30, 2017 and 2016 and maturities ranging from 2030 to 2050.	1,704,697	1,744,697
zero to 7.25% at April 30, 2018 and 2017 and maturities at various dates through 2056.	$223,766,169	$222,692,946
Lines of credit with interest rates ranging from 3.98% to 4.25% at April 30, 2017 and maturities ranging from 2018 to 2020.	6,400,000	2,652,091
Notes payable with interest rates ranging from zero to 4.40% at
	230,797,643	221,547,920
April 30, 2018 and 2017 and maturities ranging from 2030 to 2050.	1,704,697	1,704,697
Less deferred debt issuance costs	(3,067,098)	(1,837,083)
Lines of credit with interest rates ranging from 4.50% to 4.88% at April 30, 2018 and 2017 and maturities ranging from 2018 to 2020.	4,760,000	6,400,000
	$227,730,545	$219,710,837
	230,230,866	230,797,643
Less deferred debt issuance costs	(2,975,038)	(3,067,098)
	$227,255,828	$227,730,545

AsFor ofthe years ended April 30, ~~2017~~2018 and ~~2016~~2017, $~~162~~480,~~217~~ 332 and $~~420~~162,~~906~~ 217 of interest related to various development and construction projects was capitalized.

Aggregate principal payments due on the above debt for each of the years succeeding April 30, ~~2017~~2018 are as follows:

Year Ending April 30,
2018	$32,602,471
2019	$38,765,866
2019	8,885,776
2020	6,269,413
2020	7,116,034
2021	3,453,706
2021	5,862,559
2022	4,808,491
2022	6,628,223
2023	3,771,121
Thereafter	~~169~~173,~~702~~162,~~580~~269
	$230,797,643
	$230,230,866

Substantially all real estate owned is pledged as collateral for construction and mortgage loans.

~~Refinancings:~~Annual Report on Form 10-K Page 51 First Hartford Corporation

~~Rockland Place Apartments LP – Refinance: On June 3, 2016, Rockland Place Apartments LP~~FIRST ~~executed~~HARTFORD aCORPORATION ~~First~~AND ~~Mortgage Note payable with the Massachusetts Housing Finance~~SUBSIDIARIES ~~Agency~~NOTES ~~in the amount of $14,300,000. The note is nonrecourse, has a 40-year~~TO ~~term~~CONSOLIDATED ~~and~~FINANCIAL ~~requires~~STATEMENTS ~~monthly payments of principal and interest of $54,628. The~~ ~~interest~~FOR ~~rate is fixed at 3.41%. The proceeds of the note were used to repay~~THE ~~its~~YEARS ~~bridge~~ENDED ~~mortgage~~APRIL ~~note with a principal balance of $591~~30,~~174,~~ ~~its~~2018 ~~Fourth Mortgage~~AND Note with a principal balance of $500,000, and it’s Flexible Subsidy Capital Improvement Loan with a principal balance of $4,268,539. The proceeds also funded closing costs and certain escrows that are being used to redevelop the complex. 2017

Annual Report on Form 10-K Page 47 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

3. Construction Loans, Mortgages, Notes Payable, and Lines of Credit (continued):

~~Edinburg, TX - Refinance~~Refinancings: On September 7, 2016, the Company partially refinanced its loans on its shopping center property in Edinburg, TX. The new loan with Goldman Sachs is for $32,500,000 and is secured by the shopping center. Proceeds from this new loan were used to pay off $31,030,767 of existing debt with Protective Life and to establish a $1,100,000 Earnout Reserve Account (ERA), with the balance used to fund escrows and pay closing costs. The remainder of the existing debt of $15,926,740 is secured by vacant land of approximately 50 acres attached to the shopping center. The $1,100,000 ERA will be returned to the Company if, within two years, it can provide evidence that two significant named tenants have renewed their lease options for an additional five years (or the Company has entered into Approved Substitute Lease(s) for same) and the Earnout Debt Yield (EDY), as defined, is equal to or greater than 8.30%. If the Company fails to do so, a minimum of $1,000,000 of the ERA will be used to reduce the principal balance of the loan and up to $100,000 will be used to pay the applicable yield maintenance premium. The loan has a 30 year amortization and duration of 10 years (i.e., maturity date of September 6, 2026) with an interest rate of 4.604%. For the first year, interest only is paid monthly; beginning in October 2017, principal and interest are paid monthly. Prepayment of the loan is generally prohibited. The Company receives income directly to its operating account unless a “trigger event” occurs in which case the cash goes into a lockbox account controlled by the lender. Basic “trigger events” include:

~~Failure~~New ~~to maintain~~Orleans, aLA 12– ~~month-rolling~~Refinance: ~~Debt-Service~~On ~~Coverage~~June ~~Ratio~~30, ~~(DSCR)~~2017, asthe ~~defined,~~Company ~~of 1.1:1.0, Failure~~refinanced toits ~~maintain~~construction aloan ~~market-based~~on ~~Net~~its ~~Worth~~shopping center property in New Orleans, asLA. The construction ~~defined~~loan, which had a principal balance of $205,~~000~~567,~~000~~673, ~~Failure~~ ~~to maintain~~was ~~Liquid~~replaced ~~Assets,~~by a asmortgage ~~defined,~~loan of $28,~~000~~565,000~~, Loan~~. The ~~default, Various~~new ~~Rollover~~mortgage loan has an interest rate of ~~Trigger~~4.75%. The ~~Events,~~loan ~~which~~is ~~include~~interest-only ~~certain~~until ~~significant~~July ~~named~~1, ~~tenants~~2020; ~~vacating~~thereafter, monthly ~~terminating~~payments orof ~~not~~$44,576 ~~renewing~~inclusive ~~their~~of ~~leases,~~principal orand ~~filing~~interest ~~for~~are ~~bankruptcy~~due and ~~not~~payable ~~replaced~~until ~~with~~the anmaturity ~~Approved~~date ~~Substitute~~of ~~Lease~~July 1, as2027, ~~defined.~~at which time the remaining principal balance must be repaid in full.

Edinburg, TX - Refinance: On September 7, 2016, the Company partially refinanced its loans on its shopping center property in Edinburg, TX. The new loan with Goldman Sachs was for $32,500,000 and is secured by the shopping center. Proceeds from this new loan were used to pay off $31,030,767 of pre-existing debt with Protective Life and to establish a $1,100,000 Earnout Reserve Account (ERA), with the balance used to fund escrows and pay closing costs. The $1,100,000 ERA will be returned to the Company if, within two years, it can provide evidence that two significant named tenants have renewed their lease options for an additional five years (or the Company has entered into Approved Substitute Lease(s) for same) and the Earnout Debt Yield (EDY), as defined, is equal to or greater than 8.30%. If the Company fails to do so, a minimum of $1,000,000 of the ERA will be used to reduce the principal balance of the loan and up to $100,000 will be used to pay the applicable yield maintenance premium. The loan has a 30 year amortization and duration of 10 years (i.e., maturity date of September 6, 2026) with an interest rate of 4.604%. For the first year, interest only was paid monthly; beginning in October 2017, principal and interest are paid monthly. Prepayment of the loan is generally prohibited. As of April 5, 2018, rental receipts are required to be deposited directly into a lockbox account controlled by the lender because a specific named tenant did not renew their lease, triggering a provision in the loan agreement. The Company expects this tenant to renew their lease in the first quarter of fiscal 2018, which will allow the Company to regain control of the lockbox account shortly thereafter.

In addition, if a significant named tenant goes dark, vacates, or is not in occupancy of substantially all of its current space, the Company would have to deposit either a $2,000,000 reserve or letter of credit with the lender until such time as agreed upon lease conditions being met.

~~With~~After ~~respect~~the topartial refinance, the remaining balance of ~~$15,926,740~~ ~~from~~ the original ~~loans~~loan with Protective Life ~~now~~is $13,926,740 and is secured by vacant land of approximately 50 acres directly adjacent to the shopping center~~, the Company~~. The ~~and~~loan ~~the~~has ~~lender~~a ~~agreed~~maturity ~~that~~date ~~once~~of ~~the~~January ~~Company repays $2~~1,~~000,000~~ of2034 ~~the~~with ~~balance, the~~an interest rate onof ~~the remaining balance will be reduced from~~ 5.0% ~~to 4~~.~~0%.~~ This repayment was made on April 28, 2017. The lender has also agreed that if the Company pays off the entire loan by September 6, 2017, its 50% Additional Interest Agreement (AIA) rights will terminate. This remaining loan is personally guaranteed by the Chairman of the Company.

New Orleans, LA – Refinance: On November 18, 2016, the Company refinanced one of its construction loans on its shopping center property in New Orleans, LA. The construction loan, which had a principal balance of $7,301,803, was replaced by a mortgage loan of $7,436,745. The new mortgage loan has an interest rate of One Month ICE LIBOR, as defined, plus 2.50% and an initial maturity date of November 18, 2017 with an option to extend the maturity to November 18, 2018 at an interest rate of 5.0% if it meets certain requirements. The loan is interest-only until November 18, 2017; if the loan is extended an additional year, principal payments will be made using a 25-year amortization.

Annual Report on Form 10-K Page 48 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

3. Construction Loans, Mortgages, Notes Payable, and Lines of Credit (concluded):

Lubbock, TX – Refinance: On November 21, 2016, the Company refinanced its mortgage loan on its shopping center in Lubbock, TX. The new mortgage loan has a principal balance of $13,750,000, which was used to pay off the previous mortgage loan balance of $10,837,300, pay a defeasance premium of $432,776, pay closing costs, and fund escrows. The new mortgage loan has an interest rate of 4.974%, monthly payments of $76,540 based on a 27.5-year amortization, and a ten year term expiring on December 6, 2026. Prepayment is not permitted until six months before the maturity date.

Construction Loans:

Austin, TX – Financing: On February 28, 2017, the Company modified an existing line of credit loan to $4,000,000 of which up to $1,600,000 is available to finance construction of a building on a parcel of land it owns in Austin, TX. This loan has an interest rate of 1.50% plus the Prime Rate, as defined, with a Floor Rate of 5.00% and has a maturity date of December 27, 2017 with an option to extend for six months if certain criteria are met.

Edinburg, TX – Financing: On April 28, 2017, the Company obtained a $2,750,000 construction loan to finance construction of a restaurant at its Edinburg, TX property. The Company had an equity requirement of $2,716,000, of which $2,000,000 was used to repay Protective Life against their remaining loan to release the lot the restaurant is being constructed on. The initial construction draw was for $1,092,857 with another $1,657,143 available to draw as construction is completed. The interest rate on the loan is the Prime Rate per Wall Street Journal plus 1.00% with a floor of 4.75% and a ceiling of 7.00%. The monthly loan payments are interest only for the first six months then convert to monthly principal and interest payments calculated using a 20 year amortization period with a final balloon payment due on April 25, 2024.

Lines of Credit:

On July 30, 2015, the Company obtained a credit line with a regional bank. This $2,760,000 line of credit is used from time to time primarily to fund initial investments related to development opportunities. The interest rate on these loans is 3.00% plus One Month ICE LIBOR rate up to maturity date (i.e., twelve months from issuance of proceeds) and 12.0% thereafter. As of April 30, ~~2017~~2018, the Company had borrowings of $2,~~650~~760,000 against this credit line.

OnAnnual ~~December~~Report ~~7, 2015, the Company entered into a $2,000,000 revolving demand loan agreement (“line of credit”) with a regional bank. The interest rate~~ on ~~this~~Form ~~loan~~10-K isPage ~~Wall~~52 ~~Street~~First ~~Journal~~Hartford Prime, with a floor of 3.25%. The loan is unsecured and there are no guarantors. Interest is to be paid monthly; principal is to be repaid within twelve months or on demand, at the bank’s discretion. There are no prepayment penalties. This line of credit is used from time to time primarily to fund initial investments related to development opportunities. As of April 30, 2017, the Company had borrowings of $2,000,000 against this credit line.Corporation

OnFIRST HARTFORD ~~April~~CORPORATION ~~19,~~AND ~~2017,~~SUBSIDIARIES NOTES ~~the~~TO CONSOLIDATED ~~Company~~FINANCIAL ~~entered~~STATEMENTS ~~into~~ FOR aTHE ~~$2,000,000~~YEARS ~~unsecured~~ENDED ~~line~~APRIL of30, ~~credit~~2018 ~~with~~AND ~~a regional bank. Terms of the line of credit are as follows:~~2017

3. Construction Loans, Mortgages, Notes Payable, and Lines of Credit (concluded):

Lines of Credit (concluded):

Term:	3 years
Rate:	LIBOR + 3.25%
Fee:	0.50% (One Time)
Unused Fee:	0.25% annually on the unused line
Guarantee:	Full guarantee by the Chairman of the Company (Individual)
Deposits:	Must maintain a minimum of $500,000 at bank
Other:	Each funding request to be at the sole discretion of the bank and only to acquire credit tenanted properties.
Clean Up:	Borrower to be out of debt once each year for at least 30 days.

As of April 30, ~~2017~~2018, the Company had borrowings of $~~1,750,000~~-0- against this credit line.

Annual Report on Form 10-K Page 49 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

4. Pledge of Stock in Subsidiaries:

For an extended period of time the Company was unable to obtain financing (secured or unsecured) without the personal guarantees of the Chairman of the Company. To some degree, the Company has recently been able to obtain financing without a guarantee, but generally guarantees continue to be a necessary component to some construction loans. In the past, the Company has provided pledges of the stock of its subsidiaries to the Chairman of the Company as protection from personal losses due to his guarantees. These pledges are expected to stay in place until the guarantees are eliminated.

The Chairman of the Company has guaranteed the following outstanding amounts at April 30, ~~2017~~2018:

Mortgage loan – Edinburg, TX	$13,926,740
Mortgage loan – Manchester, CT (Company HQ)	$~~206~~197,~~356~~511
Land loan – Buda, TX	$1,505,000
Land loan – Austin, TX	$2,~~500~~499,~~000~~900
Land loan – Cedar Park, TX	$1,~~365~~351,~~000~~582
Line of credit – Regional bank	$~~1,750,000~~-0-

In the event that the Chairman is called upon to pay on any of the above guarantees, the Company would become liable to him.

Annual Report on Form 10-K

Page 53

First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

5. Related Party Transactions:

Included in amounts due from related parties and affiliates is $~~-0-~~196,404 and $~~157,288~~-0- at April 30, ~~2017~~2018 and ~~2016~~2017 ~~relating to funds borrowed~~ from ~~Hartford~~Project ~~Lubbock~~Hope ~~Limited Partnership by Green Manor Corporation~~Bronx, ~~which~~LLC ~~owns~~relating ~~Journal~~to ~~Publishing~~predevelopment ~~and owns 98~~costs.~~01%~~ The ofCompany, ~~Hartford~~through ~~Lubbock~~a ~~Limited~~75%-owned ~~Partnership.~~subsidiary, ~~These~~is ~~funds~~a ~~were~~non-controlling ~~borrowed some years ago (prior to consolidation)~~. ~~The~~005% ~~Chairman~~Class ofB ~~the~~member ~~Company~~in ~~and~~this ~~his~~limited ~~wife are the owners of Green Manor~~liability ~~Corporation~~company.

Included in amounts due from related parties and affiliates is $~~150,000~~-0- and $~~-0-~~150,000 at April 30, ~~2017~~2018 and ~~2016~~2017 relating to funds provided to a member of Cranston Brewery, LLC by Cranston/BVT Associates, LP, a 50% owned subsidiary of the Company. Cranston Brewery LLC owns the other 50% of Cranston/BVT Associates, LP.

Included in amounts due to related parties and affiliates is $~~518~~536,~~813~~486 and $~~502~~518,~~091~~813 payable to Cranston Brewery LLC at April 30, ~~2017~~2018 and ~~2016~~2017, respectively. Cranston Brewery LLC is an affiliate but not owned by the Company. The amount due represents its funding of operations of Trolley Barn Associates (50%). The Company’s advances to Trolley Barn Associates were eliminated in consolidation.

Included in amounts due to related parties and affiliates is $80,000 and $80,000 payable to New Folly Brook Commons, LLC at April 30, ~~2017~~2018 and ~~2016~~2017, respectively. New Folly Brook Commons, LLC is owned by the Chairman of the Company. The amount due represents the remaining balance for condominiums sold by New Folly Brook Commons, LLC to a subsidiary of the Company.

Included in amounts due to related parties and affiliates is $-0- and $20,000 payable to the Chairman of the Company at April 30, 2017 and 2016, respectively. The amount due represents a short-term loan to Hartford Lubbock Limited Partnership.

Annual Report on Form 10-K Page 50 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

6. Employee Retirement Plan:

The Company ~~had~~has a ~~SIMPLE IRA through December 31, 2015. This plan was replaced by a~~ 401(k) Plan onfor ~~January~~its ~~1, 2016~~employees. Under ~~this~~ this plan, all employees over 18 years of age, working at least 30 hours weekly ~~are~~ are eligible to participate. Participants are eligible to defer earnings to ~~the~~ the extent of IRS regulations. The Company matches up to 4% of each ~~participating~~ participating employee’s annual salary ~~(was 3% under the SIMPLE IRA)~~. Pension expense was $~~174~~180,~~417~~ 107 and $~~132~~174,~~643~~ 417 for the years ended April 30, ~~2017~~2018 and ~~2016~~2017, respectively.

7. Income Taxes:

The provision (benefit) for income taxes consists of:

	2017	2016
	2018	2017
Current Federal income taxes	$4943,~~999~~757	$8049,~~000~~999
Current State income taxes	~~350~~288,~~313~~362	~~180~~350,~~915~~313
Deferred Federal income taxes	1756,~~265,977~~854	~~551~~1,~~708~~265,977
Deferred State income taxes	~~193~~124,~~652~~506	~~119~~193,~~524~~652
	$1,859,941	$932,147
	$1,213,479	$1,859,941
The components of the net deferred income tax asset follow:
The components of the net deferred income tax asset (liability) follow:
Tax effect of net operating loss carry-forwards	$~~449,642~~-0-	$1449,~~426,572~~642
Basis in fixed assets	~~250~~158,~~042~~589	~~368~~250,~~442~~042
AMT credits	~~311~~197,~~917~~733	~~261~~311,~~054~~917
Rent receivable	(~~381~~250,~~301~~845)	~~-0-~~(381,301)
Other	40,847	74,708
Investments in partnerships	(315,692)	3,404
Subtotal	671,147	2,130,776
Other	-0-	37,443
Less: Valuation allowance	-0-	-0-
	$(210,215)	$671,147
	$671,147	$2,130,776

Annual Report on Form 10-K

Page 54

First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

7. Income Taxes (concluded):

The Company has approximately $15,000,000 of State net operating losses that have been fully reserved for as of April 30, 2018 and 2017.

A reconciliation of the provision (benefit) for income taxes with amounts determined by applying the statutory U.S. Federal income tax rate before income taxes is as follows:

	2017	2016
	2018	2017
Federal statutory rate (34%)	$2,155,367	$875,682
Federal statutory rate (29.7% blended rate in 2018 and 34% in 2017)	$928,185	$2,155,367
State tax – net of Federal effect	~~350~~288,~~313~~362	~~180~~350,~~915~~313
Losses (income) attributable to noncontrolling interests in pass-through entities	(~~506~~101,~~988~~053)	42(506,~~343~~988)
Other	~~(138~~97,~~751)~~985	(~~166~~138,~~793~~751)
Provision (benefit) for income taxes	$1,~~859~~213,~~941~~479	$~~932~~1,~~147~~859,941

~~Annual~~ On ~~Report~~December on22, ~~Form~~2017, 10the Tax Cuts and Jobs Act of 2017 (the Tax Act) was signed into law. The Tax Act makes significant changes to the Internal Revenue Code, including but not limited to, decreasing the statutory corporate tax rate from 35% to 21% effective January 1, 2018, resulting in a blended rate of 29.7% for fiscal 2018, and repealing AMT tax treatment. The Company calculated its best estimate of the impact of the Tax Act in its income tax provision and re-Kmeasured ~~Page~~its 51deferred ~~First~~tax ~~Hartford~~assets ~~Corporation~~and liabilities at the enacted corporate tax rate of 21% as of the enacted date, in accordance with its understanding of the Tax Act and available guidance. During the third quarter of fiscal 2018, the Company recorded charges of approximately $200,000 within its income tax provision in connection with the Tax Act, which related to the revaluation of the Company’s deferred tax assets and liabilities.

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

8. Leases:

The Company leases commercial and residential real estate to tenants under various operating leases expiring through ~~2042~~2030.

Minimum future rentals to be received on non-cancellable commercial real estate leases as of April 30, ~~2017~~2018 are as follows:

Year Ending April 30,
2018	$13,271,438
2019	$13,476,752
2019	12,174,840
2020	10,731,454
2020	9,457,993
2021	9,820,851
2021	8,478,983
2022	8,538,068
2022	6,909,247
2023	6,792,759
Thereafter	2728,~~858~~594,~~654~~117
Total	$7877,~~151~~954,~~155~~001

Annual Report on Form 10-K

Page 55

First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

9. Investments in Affiliates:

Summarized financial and other information for the Company’s investment in Dover Parkade LLC (Dover) follows:

Dover – New Jersey:

As of and for the years ended April 30,

Company ownership – 50%

	2017	2016
	2018	2017
Assets	$11,~~811~~356,~~029~~857	$1211,~~365~~811,~~300~~029
Liabilities	1918,~~068~~691,~~557~~850	19,~~553~~068,~~732~~557
Members’ deficit	(7,~~257~~334,~~528~~993)	(7,~~188~~257,~~432~~528)
Revenue	2,~~700~~769,~~169~~740	2,~~708~~700,~~632~~169
Operating expenses	1,~~224~~318,~~837~~403	1,~~255~~224,~~426~~837
Non-operating expense, net	(~~824~~808,~~428~~802)	(~~839~~824,~~504~~428)
Net income (loss)	~~650~~642,~~904~~535	~~613~~650,~~702~~904

Dover’s major tenant is Stop & Shop, which provided 5651% and 5356% of the total revenue in the years ended April 30, ~~2017~~2018 and ~~2016~~2017, respectively, under a lease that expires on June 30, 2026.

10. Concentrations of Credit Risk:

The Company’s financial instruments that are subject to concentrations of credit risk consist of cash and cash equivalents, marketable securities, and accounts, notes and other receivables.

The Company places its cash deposits, including investments in certificates of deposit, with various financial institutions. Bank deposits may be in excess of current Federal depository insurance limits. The Company manages exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor its credit risk concentrations.

Annual Report on Form 10-K Page 52 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

10. Concentrations of Credit Risk (concluded):

The Company has one customer which accounts for more than 10% of the Company’s revenue in both 2017 and 2016.

The Company assesses the financial strength of its tenants prior to executing leases and typically requires a security deposit and prepayment of rent. The Company establishes an allowance for doubtful accounts receivable based upon factors surrounding the credit risk of specific tenants, historical trends and other information.

The Company assesses the financial strength of CVS prior to incurring costs in connection with the development of CVS pharmacy stores. Based on historical experience and other information, no allowance for doubtful accounts related to these receivables is considered necessary by management as of April 30, ~~2017~~2018 or ~~2016~~2017.

Annual Report on Form 10-K

Page 56

First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

11. Segment Information:

The factors used by the Company to identify reportable segments include differences in products and services and segregated operations within the Company. The first segment, “Real Estate Operations” participates in the purchase, development, management, ownership and the sale of real estate. Within its second segment, “Fee for Service”, the Company provides preferred developer services to CVS and Cumberland Farms Inc. in certain geographic areas. Summary financial information for the two reportable segments is as follows:

	2017		2016
	2018	2017
Revenues:
Real Estate Operations	$7079,~~830~~083,~~796~~962	$70,830,796	~~$55,565,262~~
Fee for Service	43,~~839~~935,~~500~~000	4,839,500	~~6,298,250~~
Total	$7583,~~670~~018,~~296~~962	$75,670,296	~~$61,863,512~~
Operating Cost and Expense:
Real Estate Operations	$4761,~~901~~515,~~941~~887	$51,883,114	~~$38,496,837~~
Fee for Service	54,011,~~262~~464	5,011,262	~~5,695,793~~
Administrative Expenses	95,~~078~~867,~~059~~999	5,096,886	~~7,141,236~~
Total	$6171,~~991~~395,~~262~~350	$61,991,262	~~$51,333,866~~

All costs after administrative expenses are cost of the real estate operation.

The only assets in the balance sheet belonging to the Fee for Service segment is restricted cash of $~~129~~375,~~651~~501 in ~~2017~~2018 and $1129,~~664,214~~ 651 in 2017 ~~2016~~ and receivables of $4,~~262~~516,~~302~~807 in ~~2017~~2018 and $64,~~389~~262,~~867~~302 in ~~2016~~2017.

12. Deferred Compensation Plan:

On December 1, 2014, the Company adopted a Deferred Bonus Plan that awarded six key employees an annual payment of $21,667 each for three years. All of the six employees have satisfied the vesting requirements and received the ~~first~~three ~~two~~annual payments in August 2015, 2016, and ~~2016~~2017. The total expense recorded for this bonus was $390,000 and was recorded in fiscal 2015.

~~Annual~~ 13. Purchases ~~Report~~of onReal ~~Form 10-K Page 53 First Hartford Corporation~~Estate:

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

13. Gain on Voluntary Foreclosure:

Putnam, CT – Transfer to Lender: On November 1, 2014, a payment was due for the mortgage of the shopping center in Putnam, CT in the amount of approximately $4,700,000. The rentable space of the shopping center is 57,529 square feet, 46% of which was leased to one store. That store informed the Company that they were not renewing their lease, which expired on January 31, 2015, and, as a result, the Company found it impossible to refinance the mortgage without finding a replacement tenant. Therefore, on June 5, 2015, the Company agreed to transfer title of the property to the lender. The Company recognized a gain since the mortgage was non-recourse and was in excess of the book value. Pre-tax income for this shopping center was $-0- and $44,645 for the years ended April 30, 2017 and 2016, respectively.

14. Purchases of Real Estate:

Buda, TX - Land Purchases: On April 29, 2016, the Company purchased a parcel of land in Buda, TX adjacent to another parcel owned by the Company for $686,167 including closing costs. On May 13, 2016, the Company purchased three additional parcels of land adjacent to these parcels for $1,051,034 including closing costs. These purchases were financed by a new land loan of $1,505,000 with the balance funded by working capital. Key terms of the loan are as follows:

Loan Amount:	$1,505,000
Maturity Date:	September 24, 2017
Interest Rate:	The lower of a) the Prime Rate per Wall Street Journal plus 1.00% or b) 4.25%.
Payments:	Interest only payable monthly. At maturity, outstanding principal plus any accrued interest will be payable.
Guarantors:	Both the Company (Corporate) and Chairman of the Company (Individual).

Austin, TX – Land Purchase: On December 19, 2016, the Company purchased a parcel of land in Austin, TX for $3,732,223. This purchase, along with related closing costs, was financed by an existing line of credit of $1,250,000 and a new land loan of $2,500,000. This land is being held for potential future development. Key terms of the loan are as follows:

Loan Amount:	$2,500,000
Maturity Date:	December 19, 2018
Interest Rate:	The greater of a) the Prime Rate per Wall Street Journal plus 0.75% or b) 4.25%.
Payments:	Interest only payable monthly. At maturity, outstanding principal plus any accrued interest will be payable.
Guarantors:	Both the Company (Corporate) and Chairman of the Company (Individual).

Annual Report on Form 10-K Page 54 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

14. Purchases of Real Estate (continued):

Brentwood, NY – Land Purchase: On December 23, 2016, the Company purchased a parcel of land in Brentwood, NY for $5,000,000, which along with closing costs was financed by a new acquisition mortgage loan of $5,000,000 and working capital. The Company is going to build a single entity build-to-suit on this land. This construction will be financed by a building mortgage loan of $4,775,000 and a project mortgage loan of $875,000. The total amount of these three loans is $10,650,000. Key terms of the loans are as follows:

Loan Amount:	$10,650,000
Maturity Date:	December 1, 2027
Interest Rate:	One month LIBOR, as defined, plus 2.75% through December 1, 2017 (the “Construction Phase”); thereafter, one month LIBOR plus 1.95% (the “Permanent Phase”).
Payments:	Interest only payable monthly during the Construction Phase. Thereafter, principal and interest payable monthly using a 30-year amortization.
Guarantor:	The Company (Corporate).
Prepayment Penalties:	Prior to December 1, 2017, 0.50% of the principal balance prepaid; from January 1, 2018 – December 1, 2019, 1.00% of the principal balance prepaid.

St. Louis, MO – Property Purchase: On January 20, 2017, the Company purchased a property with a single retail tenant in St. Louis, MO for $5,900,000. The Company plans to resell it by the end of the calendar year. This purchase, along with closing costs, was financed with a new loan of $5,120,000, advances from one of the Company’s line of credit of $1,000,000, and working capital of $324,768. Key terms of the loan are as follows:

Loan Amount:	$5,120,000
Maturity Date:	October 20, 2017
Interest Rate:	One month LIBOR, as defined, plus 2.20%.
Payments:	Interest only payable monthly.

Cedar Park, TX – Property Purchase: On March 29, 2017, the Company purchased a property with a single retail tenant in Cedar Park, TX for $1,625,000 including closing costs. The Company plans to resell it by the end of the fiscal year ending April 30, 2018. This purchase was financed with proceeds from a new loan of $1,365,000 and working capital of $260,000. Key terms of the loan are as follows:

Loan Amount:	$1,365,000
Maturity Date:	March 29, 2022
Interest Rate:	The greater of a) the Prime Rate per Wall Street Journal plus 0.75% or b) 4.50%.
Payments:	Interest only payable monthly through September 2017, followed by monthly principal and interest payments using a 25 year amortization period with a final balloon payment at maturity.
Guarantors:	Both the Company (Corporate) and Chairman of the Company (Individual).

Annual Report on Form 10-K Page 55 First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED APRIL 30, 2017 AND 2016

15. Subsequent Events:

The Company has evaluated for subsequent events through July 31, 2017, the date the financial statements were issued.

Houston, TX – Land Purchase: On May 12, 2017, the Company completed its purchase of a parcel of land in Houston, TX for $8,583,235 including closing costs. This purchase was financed with proceeds from a construction loan of $5,158,210, utilization of the Company’s lines of credit of $2,400,000, and working capital of $1,025,025. Key terms of the construction loan are as follows:

Loan Amount:	$8,600,000
Maximum Loan Amount:	$8,600,000
Maturity Date:	November 15, 2018
Interest Rate:	2.50% plus One Month ICE LIBOR rate, as defined, up to maturity date and 12.0% thereafter.
Payments:	Interest only payable monthly with principal due at maturity.
Guarantee:	The Company (Corporate).

~~St.~~Annual ~~Louis,~~Report MOon –Form ~~Sale of Property: On May 30, 2017, the Company sold its single~~10-~~tenant~~K ~~property in~~Page ~~St.~~57 ~~Louis,~~First MOHartford ~~for $6,800,000 (cost of approximately $6,567,000). A loan with a balance of $5,120,000 and a credit line of $1,000,000 were paid off with the proceeds.~~Corporation

~~New Orleans, LA – Sale~~FIRST ofHARTFORD ~~Property:~~CORPORATION OnAND ~~June 7, 2017, the~~SUBSIDIARIES ~~Company~~NOTES ~~sold a parcel of its property with a single-tenant build-to-suit in New~~TO ~~Orleans,~~CONSOLIDATED LAFINANCIAL ~~for~~STATEMENTS ~~$11,350,000 (cost of approximately $9,007,000). A loan with a~~ ~~balance~~FOR ~~of $7,436,745 was paid off with the proceeds. The Company continues to~~THE ~~hold~~YEARS ~~the~~ENDED ~~parcel~~APRIL of30, ~~the~~2018 ~~property~~AND ~~that includes the shopping center.~~2017

~~Austin, TX – Sale of Property: On June 15, 2017, the Company sold its single-tenant property in Austin, TX for $3,210,000 (cost of approximately $2,944,000)~~13. A ~~loan~~Purchases ~~with a balance~~ of ~~$1,102,899~~Real ~~was~~Estate ~~paid off with the proceeds.~~ (continued):

~~New Orleans~~Montgomery, LATX – ~~Refinance~~Land Purchase: On ~~June~~August 3016, 2017, the Company ~~refinanced~~completed its ~~construction~~purchase ~~loan~~of ona ~~its~~26.43 ~~shopping~~acre ~~center~~parcel ~~property~~of land in ~~New Orleans~~Montgomery, ~~LA. The~~TX ~~construction loan~~for $6,672,754 including ~~which~~closing ~~had~~costs. This apurchase ~~principal~~was ~~balance~~financed ofwith ~~$5,568,910,~~proceeds ~~was~~from ~~replaced by~~ a ~~mortgage~~land loan of $84,~~565~~150,000~~. The~~, ~~new~~utilization ~~mortgage~~of ~~loan~~the ~~has~~Company’s anlines ~~interest~~of ~~rate~~credit of ~~4.75%. The loan is interest-only until July 1~~$2, ~~2020; thereafter~~360, ~~monthly payments of $44~~000,~~576 inclusive of principal~~ and ~~interest~~working ~~are~~capital ~~due and payable until the maturity date~~ of ~~July 1~~$162,754. ~~2027,~~Key atterms ~~which~~of ~~time~~ the ~~remaining~~land ~~principal~~loan ~~balance must~~are beas ~~repaid in full.~~follows:

Loan Amount:	$4,150,000
Maturity Date:	February 16, 2019
Interest Rate:	3.50% plus One Month ICE LIBOR rate, as defined, up to maturity date and 12.0% thereafter.
Payments:	Interest only payable monthly with principal due at maturity.
Guarantee:	The Company (Corporate).

Houma, LA – Land Purchase: On January 5, 2018, the Company purchased a parcel of land in Houma, LA for $2,514,644 including closing costs. This purchase was financed with proceeds from a construction loan of $1,417,217, utilization of the Company’s lines of credit of $1,000,000, and working capital of $97,427. Key terms of the construction loan are as follows:

Maximum Loan Amount:	$5,065,000
Maturity Date:	January 5, 2019
Interest Rate:	2.50% plus One Month ICE LIBOR rate, as defined, up to maturity date and 12.0% thereafter.
Payments:	Interest only payable monthly with principal due at maturity.
Guarantee:	The Company (Corporate).

Pearland, TX – Land Purchase: On January 11, 2018, the Company purchased a parcel of land in Pearland, TX for $1,038,306 including closing costs. This purchase was financed with proceeds from a land loan of $500,000, utilization of the Company’s lines of credit of $400,000, and working capital of $138,306. Key terms of the land loan are as follows:

Loan Amount:	$500,000
Maturity Date:	January 5, 2019
Interest Rate:	3.50% plus One Month ICE LIBOR rate, as defined, up to maturity date and 12.0% thereafter.
Payments:	Interest only payable monthly with principal due at maturity.
Guarantee:	The Company (Corporate).

Spring, TX – Land Purchase: On January 30, 2018, the Company purchased three adjacent parcels of land in Spring, TX for $1,161,240 including closing costs. Simultaneously, one of these parcels was sold to another party for $1,404,504 (cost of $1,008,623, including additional development costs of $549,011). The purchase was financed by working capital and the proceeds from the sale. The Company netted $27,807 of cash for these two transactions. The remaining two parcels will be marketed to retail establishments.

Annual Report on Form 10-K

Page 58

First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

13. Purchases of Real Estate (concluded):

Little Ferry, NJ – Land Purchase: On February 8, 2018, the Company purchased a parcel of land in Little Ferry, NJ for $3,131,000 which, along with closing costs and a deposit into a Remediation Trust Fund of $439,425, were financed by proceeds from a construction loan of $3,774,340 plus working capital. Key terms of the construction loan are as follows:

Maximum Loan Amount:	$8,800,000
Maturity Date:	February 1, 2029
Interest Rate:	One month LIBOR, as defined, plus 2.50% through February 1, 2019 (the “Construction Phase”); thereafter, one month LIBOR plus 1.90% (the “Permanent Phase”).
Payments:	Interest only payable monthly during the Construction Phase. Thereafter, principal and interest payable monthly using a 30-year amortization.
Guarantor:	The Company (Corporate).
Prepayment:	Prior to February 1, 2019, 0.50% of the principal balance prepaid; from February 1, 2019 – January 31, 2021, 1.00% of the principal balance prepaid.

14. Contingencies:

The Company is involved in legal proceedings which arise during the normal course of its business, including disputes over tax assessments, commercial contracts, lease agreements, construction contracts, employee disputes and personal injuries. No amounts have been accrued in these consolidated financial statements since the outcome of these matters are uncertain and the amount of liability, if any, cannot be determined. However, the Company does not believe the outcome of any of these proceedings will have a material impact on its consolidated financial statements.

15. Subsequent Events:

The Company has evaluated for subsequent events through July 30, 2018, the date the financial statements were issued.

Edinburg, TX – Construction Loan: On May 1, 2018, the Company obtained a $3,233,937 construction loan to finance construction of a commercial building at its Edinburg, TX property. The initial construction draw was for $2,818,156 with another $415,781 available to draw as construction is completed. The net cash received by the Company at closing was $455,737. Of the initial construction draw, $2,310,000 was used to repay Protective Life against their remaining loan to release the lot the building is being constructed on. The interest rate on the loan is the Prime Rate per Wall Street Journal plus 1.25% with a floor of 6.00% and a ceiling of 9.00%. The monthly loan payments are interest only for the first twelve months then convert to monthly principal and interest payments calculated using a 20 year amortization period with a final balloon payment due on April 30, 2023. The Company is a guarantor on this loan.

Annual Report on Form 10-K

Page 59

First Hartford Corporation

FIRST HARTFORD CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED APRIL 30, 2018 AND 2017

15. Subsequent Events (concluded):

Katy, TX – Land Purchase: On May 3, 2018, the Company purchased a parcel of land in Katy, TX for $2,386,648 including closing costs. This purchase was financed with proceeds from a construction loan of $1,487,973, cash of $823,496, and working capital of $75,179. Key terms of the construction loan are as follows:

Loan Amount:	$4,325,000
Maturity Date:	May 3, 2022
Interest Rate:	2.50% plus One Month ICE LIBOR rate, as defined, for first year and 6.5% through the maturity date; 12.0% thereafter.
Payments:	Interest only payable monthly during the first year. Thereafter, principal and interest payable monthly using a 25-year amortization.
Guarantee:	The Company (Corporate).

Montgomery, TX – Partial Property Sale: On May 23, 2018, the Company sold a single-tenant property in Montgomery, TX for $2,930,499 (cost of approximately $856,510). The Company continues to own 22.70 acres of land attached to this sold parcel that can support approximately 130,000 square feet of additional development.

Line of Credit Increase: On June 11, 2018, the Company’s $2,000,000 line of credit with a regional bank was increased to $3,000,000 and the final payment date was set at September 30, 2020.

Cedar Park, TX – Property Sale: On June 14, 2018, the Company sold a single tenant in Cedar Park, TX for $2,631,578 (cost of approximately $1,979,963). A mortgage loan with a balance of $1,353,974 was paid off with the proceeds.

Houston, TX – Partial Property Sale: On June 14, 2018, the Company sold a single-tenant property in Houston, TX for $8,100,000 (cost of approximately $5,047,464). The Company continues to own 18.58 acres of land attached to this sold parcel that can support approximately 100,000 square feet of additional development.

Katy, TX (Cane Island) – Land Purchase: On July 25, 2018, the Company purchased a 5.32 acre parcel of land in Katy, TX for $2,977,851 including closing costs. This purchase was primarily financed through utilization of the Company’s credit lines. The Company expects to obtain a construction loan for this property in the near future.

[End of Financial Statements and Notes thereto. ]

Annual Report on Form 10-K Page 5660 First Hartford Corporation

~~S I G N A T U R E S~~SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: July 3130, ~~2017~~2018

FIRST HARTFORD CORPORATION

By: /s/ Neil H. Ellis

Neil H. Ellis

Chairman of the Board and

Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

July 31, 2017	/s/ Neil H. Ellis
July 30, 2018	/s/ Neil H. Ellis
	Neil H. Ellis
	Chairman of the Board and
	Chairman of the Board and Chief Executive Officer (Principal Executive Officer)
	Chief Executive Officer
July 30, 2018	/s/ Eric J. Harrington
	(Principal Executive Officer)
July 31, 2017	/s/ Eric J. Harrington
	Eric J. Harrington
	Chief Financial Officer and
	Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)
	Treasurer
	(Principal Financial and Accounting Officer)

Annual Report on Form 10-K

Page 61

First Hartford Corporation

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