SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q
(Mark One)

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

               For the quarterly period ending September 30, 2000
                                               ------------------


                                       OR

   ___         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 1-4719
                                                 ------

                             THE DELTONA CORPORATION
                             -----------------------
             (Exact name of registrant as specified in its charter)


            DELAWARE                                         59-0997584
--------------------------------------------------------------------------------
(State of other jurisdiction of                           (I.R.S. Employer
incorporation or organization)                          Identification Number)

 8014 SW 135 STREET ROAD, OCALA, FLORIDA                         34473
--------------------------------------------------------------------------------
(Address of principal executive office)                       (Zip Code)

Registrant's telephone number, including area code         (352)307-8100
                                                   -----------------------------

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

     Indicate the number of shares outstanding of the issuer's classes of common
stock, as of the latest practicable date:  13,544,277 shares of common stock, $1
par value, excluding treasury stock, as of September 30, 2000.



<PAGE>



                          PART I- FINANCIAL INFORMATION


ITEM 1.                      FINANCIAL STATEMENTS
<TABLE>
<CAPTION>

                    THE DELTONA CORPORATION AND SUBSIDIARIES
                 UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
                    SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
                                 ($000 Omitted)

                                                   September 30,    December 31,
                                                      2000             1999
                                                   -------------    ------------
<S>                                                <C>              <C>

     ASSETS

Cash and cash equivalents, including escrow
 deposits and restricted cash of $705 in 2000
 and $398 in 1999 .................................$    912         $    548
                                                   --------         --------
Contracts receivable for land sales - net .........   1,038            1,549
                                                   --------         --------
Mortgages and other receivables - net .............      87              109
                                                   --------         --------

Inventories (b):
 Land and land improvements .......................   8,335            8,237
 Houses completed or under construction ...........   1,225                0
 Other ............................................      70               70
                                                   --------         --------
               Total inventories ..................   9,630            8,307
                                                   --------         --------

Property, plant, and equipment at cost - net ......     468              489
Prepaid expenses and other ........................   1,135              911
                                                   --------         --------
                             Total ................$ 13,270         $ 11,913
                                                   ========         ========



     LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)


Mortgages and similar debt(c):
 Mortgage notes payable ...........................$  5,700         $  6,600
 Other loans ......................................   5,938            5,114
                                                   --------         --------
   Total mortgages and similar debt ...............  11,638           11,714

Accounts payable, accrued expenses,
 customers' deposits ..............................   7,803            6,024
Deferred revenue ..................................   2,123            2,379
                                                   --------         --------
Total liabilities .................................  21,564           20,117
                                                   --------         --------

Commitments and contingencies (d):

Stockholders' equity (deficiency):
  Common stock, $1 par value - authorized
  15,000,000 shares; outstanding: 13,544,277
  shares (excluding 12,228 shares held in
  treasury .......................................   13,544           13,544
 Capital surplus .................................   52,176           51,863
 Accumulated deficit .............................  (74,014)         (73,611)
                                                   --------         --------
               Total stockholders' (deficiency) ..   (8,294)          (8,204)
                                                   --------         --------
                             Total ............... $ 13,270         $ 11,913
                                                   ========         ========

See accompanying notes.
</TABLE>

                                        2

<PAGE>
<TABLE>
<CAPTION>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
                            FOR THE PERIODS INDICATED
                     ($000 Omitted Except Per Share Amounts)

                                          Nine Months Ended               Three Months Ended
                                     -----------------------------   ---------------------------
                                     September 30,   September 30,   September 30,  September 30,
                                         2000            1999              2000          1999
                                     -------------   -------------   -------------  -------------
<S>                                  <C>             <C>             <C>            <C>
Revenues (a):
 Net land sales ..................   $      4,345    $      2,805    $      1,483   $      1,012
 House and apartment sales .......          2,074           2,615             944            570
 Recognized improvement revenue /
  prior period sales .............            207             293              68            106
 Interest income .................            370             390             201            179
 Other revenues ..................            388             400              98            179
                                     ------------    ------------    ------------   ------------
     Total .......................          7,384           6,503           2,794          2,046
                                     ------------    ------------    ------------   ------------

Costs and expenses (a):
 Cost of sales and improvements ..          2,964           3,004           1,185            790
 Selling, general, administrative
  and other expenses .............          4,127           3,789           1,304          1,362
 Interest expense (c)(e) .........            695             510             236            174
                                     ------------    ------------    ------------   ------------
     Total .......................          7,786           7,303           2,725          2,326
                                     ------------    ------------    ------------   ------------

Net Income (Loss) ................   $       (402)   $       (800)   $         69   $       (280)
                                     ============    ============    ============   ============

Net Income (Loss) per common share   $       (.03)   $       (.06)   $        .01   $       (.02)
                                     ============    ============    ============   ============

Number of common and common
 equivalent shares ...............     13,544,277      13,544,277      13,544,277     13,544,277
                                     ============    ============    ============   ============



See accompanying notes.
</TABLE>

                                        3

<PAGE>

<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
                            FOR THE NINE MONTHS ENDED
                    SEPTEMBER 30, 2000 AND SEPTEMBER 30, 1999
                                 ($000 Omitted)



                                                        Nine Months Ended
                                                   -----------------------------
                                                   September 30,   September 30,
                                                      2000             1999
                                                   -------------   -------------
<S>                                                <C>             <C>


Cash flows from operating activities ...........   $(3,627)        $(5,934)
                                                   -------         -------

Cash flows from investing activities:
 Proceeds from sale of property, plant and
 equipment......................................         0               3
Payment for acquisition and construction of
 property, plant and equipment .................       (17)            (81)
                                                   -------         -------
Net cash provided by (used in) investing
 activities ....................................       (17)            (78)
                                                   -------         -------

Cash flows from financing activities:
  New borrowings ...............................     4,008           5,975
                                                   -------         -------
Net cash provided by (used in) financing
 activities ....................................     4,008           5,975
                                                   -------         -------

Net increase (decrease) in cash and cash
 equivalents (including escrow deposits and
 restricted cash) ..............................       364            (37)

Cash and cash equivalents beginning of period ..       548            721
                                                   -------        -------

Cash and cash equivalents end of period ........   $   912        $   684
                                                   =======        =======

</TABLE>


See accompanying notes.


                                        4

<PAGE>
<TABLE>
<CAPTION>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
                            FOR THE NINE MONTHS ENDED
                    SEPTEMBER 30, 2000 AND SEPTEMBER 30, 1999
                                 ($000 Omitted)




                                                        Nine Months Ended
                                                   -----------------------------
                                                   September 30,   September 30,
                                                      2000             1999
                                                   -------------   -------------
<S>                                                <C>             <C>


Reconciliation  of net income (loss) to
 net cash provided by (used in) operating
 activities:

  Net income (loss)...........................     $  (402)        $   (800)
                                                   -------         --------

Adjustments  to reconcile  net loss to net
 cash  provided by (used in) operating
 activities:

  Depreciation and amortization...............          37               37
  Provision for estimated uncollectible
    sales-net.................................         618              653
  Contract valuation discount, net of
    amortization..............................          34                3
  Net Gain on sale of property, plant &
    equipment.................................           0                3
  Imputed Interest on debt with related
    party.....................................         313                0
  Net change in assets and liabilities........      (4,227)          (5,830)
                                                   -------         --------
               Total adjustments..............     $(3,225)        $ (5,134)
                                                   -------         --------

  Net cash provided by (used in) operating
    activities................................     $(3,627)        $ (5,934)
                                                   =======         ========

  Supplemental disclosure of non cash
    investing and financing activities:

  Reduction of debt as a result of the
    conveyance of contracts receivable........     $ 4,084         $  3,170
                                                   =======         ========



See accompanying notes.

</TABLE>






                                        5

<PAGE>

                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
         --------------------------------------------------------------
                               SEPTEMBER 30, 2000
                               ------------------

THE INFORMATION PRESENTED HEREIN AS OF SEPTEMBER 30, 2000 FOR THE THREE AND NINE
MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 IS UNAUDITED.

(a)            BASIS OF PRESENTATION

               The condensed unaudited financial  statements of the Company have
               been  prepared  pursuant  to the  rules  and  regulations  of the
               Securities and Exchange  Commission (the  "Commission").  Certain
               information  and  footnote   disclosures   normally  included  in
               financial   statements  prepared  in  accordance  with  generally
               accepted  accounting  principles  have been  condensed or omitted
               pursuant to Commission  rules and  regulations.  The  information
               furnished reflects, in the opinion of management, all adjustments
               (consisting only of normal recurring adjustments) necessary for a
               fair statement of the results for the interim periods  presented.
               Operating  results for the three and nine months ended  September
               30, 2000 are not  necessarily  indicative of the results that may
               be  expected  for  the  year  ending  December  31,  2000.  These
               condensed  consolidated  financial  statements  should be read in
               conjunction  with the financial  statements and the notes thereto
               included in the Company's latest Annual Report on Form 10-K.

               Certain amounts have been reclassified for comparative purposes.

               The accompanying  financial statements of The Deltona Corporation
               and  subsidiaries  ("The  Company") have been prepared on a going
               concern basis,  which  contemplates the realization of assets and
               satisfaction of liabilities in the normal course of business. The
               Company  has  incurred  losses  from  operations  resulting  in a
               stockholders'  deficiency as of September  30, 2000.  The Company
               has been  dependant  on its  ability  to  obtain  financing  from
               related companies to meet its cash requirements.  There can be no
               guarantee  that the  Company  will be able to  obtain  sufficient
               financing in the future or that related  parties will continue to
               make loans to the Company. The consolidated  financial statements
               do not include any adjustments  relating to the recoverability of
               asset amounts or the amount of liabilities  should the Company be
               unable to continue as a going concern.

(b)            INVENTORIES

               Information  with respect to the  classification  of inventory of
               land and improvements including land held for sale or transfer is
               as follows (in thousands):

                              Land and Improvements
                                                     September 30,  December 31,
                                                        2000           1999
                                                     -------------  ------------
               Unimproved land.......................$    420       $    420
               Land in various stages of development.   3,808          2,633
               Fully improved land...................   4,107          5,184
                                                     --------       --------
                 Total...............................$  8,335       $  8,237
                                                     ========       ========

               Other  inventories   consists  primarily  of  completed  vacation
               ownership units.

(c)            MORTGAGES AND SIMILAR DEBT

               The  following  table  presents   information   with  respect  to
               mortgages and similar debt (in thousands):

                                                     September 30,  December 31,
                                                        2000           1999
                                                     -------------  ------------
               Mortgage Notes Payable ...............$ 5,700        $  6,600
               Other Loans...........................  5,938           5,114
                                                     -------        --------
                 Total mortgages and similar debt....$11,638        $ 11,714
                                                     =======        ========


                                        6

<PAGE>



               Included in Mortgage Notes Payable is the Yasawa loan ($5,700,000
               at September 30, 2000);  included in Other Loans is the Swan loan
               ($5,938,000 as of September 30, 2000).

               Indebtedness  under  various  purchase  money  mortgages and loan
               agreements  is   collateralized   by  substantially  all  of  the
               Company's  assets,   including  stock  of  certain   wholly-owned
               subsidiaries. The Company's outstanding debt to Yasawa is secured
               by a first lien on the  Company's  receivables  and a mortgage on
               all of the Company's property; and the Company's outstanding debt
               to Swan is secured by a second lien on the Company's receivables.
               The Company satisfied its debt obligation to Scafholding.

               The terms of  repayment  of the Yasawa  debt  provide for monthly
               payments of principal in the amount of $100,000  payable  monthly
               in cash or with contracts  receivable at 100% of face value, plus
               interest payable monthly on the declining  balance at the rate of
               6% per annum  (reduced  from 9.6%  effective  January 1, 1999) in
               cash or with  contracts  receivable at 65% of face value.  Yasawa
               has not required the Company to make  monthly  interest  payments
               for the period  September  1, 1998 to September  30, 2000.  As of
               September 30, 2000,  the total amount of interest  accrued on the
               Yasawa debt is approximately $972,000.

               From October 9, 1998  through the present,  Swan has advanced the
               Company  funds  to meet its  working  capital  requirements.  The
               Company's  outstanding debt to Swan, which is secured by a second
               lien on the Company's  receivables,  is approximately  $5,938,000
               and accrued interest on the Swan debt of $216,000 as of September
               30, 2000. The Company  signed a promissory  note to Swan in March
               1999 which provides that funds advanced by Swan will be paid back
               by the Company  monthly in contracts  receivables  at 90% of face
               value, with recourse. There will be no interest for the first six
               months  after an  advance of money is  received  from Swan by the
               Company;  thereafter  the  interest  shall be 6% per annum on the
               outstanding balance of the advance. Each time an advance is made,
               a supplemental note is signed. The amount of each monthly payment
               will vary and will be  dependent  upon the  amount  of  contracts
               receivable  in  the  Company's  portfolio,   excluding  contracts
               receivable  held  as  collateral  for  prior  receivable   sales.
               Pursuant  to the terms of the  promissory  note,  the  Company is
               required  to  transfer  to Swan  monthly  as debt  repayment  all
               current contracts receivable in the Company's portfolio in excess
               of the  aggregate  sum of $500,000.  Funds  advanced by Swan were
               used by the  Company to pay  outstanding  real  estate  taxes for
               unsold  properties with the balance to meet the Company's working
               capital requirements.

               The Company  recorded  interest  expense on all outstanding  debt
               balances  to Yasawa  and Swan at 8%,  the  Company's  incremental
               borrowing rate. The difference between interest  calculated at 8%
               and the amount  accrued under the terms of the  respective  notes
               was recorded as capital contribution increase to capital surplus.

(d)            COMMITMENTS AND CONTINGENCIES

               Homesite  sales  contracts  provide  for the return of all monies
               paid in (including paid-in interest) should the Company be unable
               to meet its contractual  obligations  after the use of reasonable
               diligence.  If a refund is made,  the  Company  will  recover the
               related homesite and any improvement thereto.

               As of September 30, 2000,  the Company had estimated  development
               obligations  of  approximately   $25,000 on  sold  property,   an
               estimated  liability to provide title insurance and deeding costs
               of $132,000 and an estimated cost of street maintenance, prior to
               assumption of such obligations by local  governments of $603,000,
               all of which are included in deferred revenue.  The total cost to
               complete  improvements  as of September  30, 2000,  including the
               previously   mentioned   obligations,   was   estimated   to   be
               approximately $760,000.

               In addition to the matters  discussed  above and in Item 3 of the
               Company's  Annual Report on Form 10-K for the year ended December
               31, 1999, the Company is a party to other litigation  relating to
               the  conduct of its  business  which is routine in nature and, in
               the opinion of the  management,  should  have no material  effect
               upon the Company's operation.






                                        7

<PAGE>



(e)            CAPITALIZED INTEREST

               The Company capitalizes interest cost incurred during a project's
               construction  period.  Of the total  interest  cost  incurred  of
               $756,000  and  $510,000,  $61,000  was  capitalized  for the nine
               months  ended  September  30,  2000 and none for the nine  months
               ended September 30, 1999, respectively.

(f)            EARNINGS OR LOSS PER SHARE

               Basic earnings (loss) per common and common equivalent share were
               computed by dividing net income  (loss) by the  weighted  average
               number of shares of Common  Stock and  common  stock  equivalents
               outstanding during each period.

(g)            RELATED PARTY TRANSACTION

               In January  2000,  the Company  purchased 16 lots and homes under
               construction  from Scafholding for approximately  $862,000.  This
               amount represents  Scafholding's lot cost and payments to date to
               the home  builder.  This  transaction  was 100%  financed by Swan
               under its existing note payable arrangement.



                                        8

<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

     Since December,  1992, the Company has been dependent on loans and advances
from Selex International B.V., a Netherlands corporation ("Selex"),  Scafholding
B.V.,  a  Netherlands  corporation  ("Scafholding),  Yasawa  Holdings,  N.V.,  a
Netherlands Antilles Corporation  ("Yasawa"),  Swan Development  Corporation,  a
Florida  corporation  ("Swan"),  and other related parties in order to implement
its marketing program and assist in meeting its working capital requirements.

The Company had satisfied its  outstanding  debt to Selex and  Scafholding;  the
Company's  outstanding  debt to Yasawa is $6,000,000  secured by a first lien on
the Company's  receivables and a mortgage on all of the Company's property.  The
terms of  repayment of this debt have been  restructured  to provide for monthly
payments of principal in the amount of $100,000  payable monthly in cash or with
contracts receivable at 100% of face value, plus interest payable monthly on the
declining  balance  at the rate of 6% per  annum  (reduced  from  9.6% per annum
effective  January 1, 1999) in cash or with contracts  receivable at 65% of face
value.  Yasawa did not  require the Company to make  interest  payments  for the
period  September 1, 1998 to September 30, 2000.  As of September 30, 2000,  the
total amount of interest accrued on the Yasawa debt is approximately $972,000.

From  October 9, 1998 through the  present,  Swan  continued to loan the Company
funds to meet its working capital  requirements.  The Company's outstanding debt
to Swan,  which is secured by a second lien on the  Company's  receivables,  was
$5,938,000 and accrued interest on the Swan debt of $216,000 as of September 30,
2000. The Company signed a promissory  note to Swan in March 1999 which provides
that  funds  advanced  by Swan  will be paid  back  by the  Company  monthly  in
contracts  receivables  at 90% of face value,  with  recourse.  There will be no
interest  for the first six months  after an advance of money is  received  from
Swan by the  Company;  thereafter  the  interest  shall  be 6% per  annum on the
outstanding balance of the advance. Each time an advance is made, a supplemental
note is  signed.  The  amount  of each  monthly  payment  will  vary and will be
dependent  upon the amount of contracts  receivable in the Company's  portfolio,
excluding  contracts  receivable held as collateral for prior receivable  sales.
Pursuant  to the terms of the  promissory  note,  the  Company  is  required  to
transfer to Swan monthly as debt repayment all current  contracts  receivable in
the  Company's  portfolio  in excess of the  aggregate  sum of  $500,000.  Funds
advanced by Swan were used by the Company to pay  outstanding  real estate taxes
for unsold  properties  with the balance to meet the Company's  working  capital
requirements.

Since  January  1,  1999,  the  Company  has  recorded  interest  expense on all
outstanding  debt balances to Yasawa,  Scafholding and Swan at 8%, the Company's
incremental borrowing rate. The difference between interest calculated at 8% and
the amount  accrued  under the terms of the  respective  notes was recorded as a
capital contribution  increase to capital surplus. The Company recorded interest
expense and a capital  contribution in the amount of approximately  $313,000 for
the nine months ended September 30, 2000.

During 1998,  the Company  transferred  14 lots and 4 tracts of land to Swan. In
return,  Swan built an office complex on part of the land for use by the Company
for a period of 54 months,  renewable  thereafter.  The Company  valued the land
transferred at approximately  $440,000 and recorded the net present value of the
use of the office  complex  of  approximately  $375,000  as  prepaid  rent.  The
difference between the net present value of the rent and the cost of the land of
approximately $290,000 is recorded as deferred profit.

RESULTS OF OPERATIONS
---------------------

For the nine months ended September 30, 2000 and September 30, 1999.

Revenues
--------

Total revenues were $7,384,000 for the first nine months of 2000 ($2,794,000 for
the quarter ending September 30, 2000) compared to $6,503,000 for the comparable
1999 period ($2,046,000 for the quarter ending September 30, 1999).

Gross land  sales  were  $5,184,000  for the first  nine  months of 2000  versus
$3,618,000 for the comparable 1999 period. Net land sales (gross land sales less
estimated  uncollectible  installment  sales and  contract  valuation  discount)
increased to $4,345,000  the first nine months of 2000 from  $2,805,000  for the
first nine months of 1999.  For the three months ended  September 30, 2000,  net
land sales  increased to $1,483,000  from  $1,012,000  for the  comparable  1999
period. The increase in sales reflects higher sales by the Company's independent
dealers.

                                        9

<PAGE>



Housing  revenues  were  $2,074,000  for the first  nine  months of 2000  versus
$2,615,000 for the  comparable  1999 period.  Revenues are not  recognized  from
housing sales until the completion of construction and passage of title. Housing
revenues  decreased  as of result  of less  closings  on sales by the  Company's
independent dealer network.  The backlog of houses under contract was $6,736,000
and $2,466,000 as of September 30, 2000 and September 30, 1999, respectively.

The  following  table  reflects the  Company's  real estate  product mix for the
periods indicated (in thousands):

                        Nine Months Ended            Three Months Ended
                   ---------------------------  ----------------------------
                   September 30, September 30,  September 30, September  30,
                      2000          1999           2000          1999
                   ------------- -------------  ------------- --------------
Gross Land Sales:
  Retail Sales*    $ 5,184       $   3,618      $ 1,687       $ 1,333
                   -------       ---------      -------       -------
  Housing Sales:     2,074           2,615          944           570
                   -------       ---------      -------       -------
    Total Real
    Estate         $ 7,258       $   6,233      $ 2,631       $ 1,903
                   =======       =========      =======       =======
---------------------
*    New retail land sales contracts  entered into,  including  deposit sales on
     which the Company has  received  less than 20% of the sales  price,  net of
     cancellations,  for the nine months ended  September 30, 2000 and September
     30, 1999 were  $6,715,000 and $4,903,000,  respectively  and $2,775,000 and
     $2,217,000  for the  three  months  ended  September  30,  2000  and  1999,
     respectively.The  Company  had a backlog  of  approximately  $3,340,000  in
     unrecognized  sales  as of  September  30,  2000.  Such  contracts  are not
     included in retail land sales until the  applicable  rescission  period has
     expired and the Company has received  payments totaling 20% of the contract
     sales price.

Improvement  revenues  result from  recognition of revenues  deferred from prior
period sales.  Recognition occurs as development work proceeds on the previously
sold  property  or  customers  are  exchanged  to a developed  lot.  Improvement
revenues  totaled  $207,000  for the first nine months of 2000  ($68,000 for the
third quarter 2000) versus $293,000 for comparable 1999 period ($106,000 for the
third quarter of 1999).

Interest  income was $370,000 for the first nine months of 2000 versus  $390,000
for the  comparable  period in 1999. The decrease is the result of a decrease in
the Company's  contracts  receivable,  resulting from the sale and assignment of
contracts receivable to the Company's lenders.

Other  revenues were $388,000 for the first nine months of 2000 ($98,000 for the
third  quarter  of 2000)  versus  $400,000  for the  comparable  period  in 1999
($179,000  for the  third  quarter  of 1999).  Other  revenues  are  principally
generated  by  the  Company's   title   insurance  and  real  estate   brokerage
subsidiaries.

Costs and Expenses
------------------

Costs and expenses were $7,786,000 for the first nine months of 2000 ($2,725,000
for the third quarter of 2000) versus  $7,303,000 for the  comparable  period in
1999  ($2,326,000 for the third quarter of 1999).  Cost of sales were $2,964,000
for the first nine  months of 2000  ($1,186,000  for the third  quarter of 2000)
versus  $3,004,000  for the  comparable  period in 1999  ($790,000 for the third
quarter of 1999).

Commissions,  advertising and other selling expenses totaled  $2,709,000 for the
first  nine  months of 2000  ($857,000  for the third  quarter  of 2000)  versus
$2,278,000 for the comparable  period in 1999 ($817,000 for the third quarter of
1999). Higher retail land sales resulted in increased commission expense.  Other
selling  expenses were $906,000 for the first nine months of 2000  ($333,000 for
the third  quarter of 2000) versus  $833,000 for the  comparable  period in 1999
($269,000 for the third quarter of 1999).  Advertising and promotional  expenses
increased to $280,000  for the first nine months of 2000  ($53,000 for the third
quarter of 2000) versus $269,000 for the comparable period in 1999 ($126,000 for
the third quarter of 1999).

General and  administrative  expenses were $987,000 for the first nine months of
2000 ($303,000 for the third quarter of 2000) versus $993,000 for the comparable
period  in  1999  ($383,000  for  the  third  quarter  of  1999).   General  and
administrative expenses decreased primarily due to decreased overhead expenses.



                                       10

<PAGE>



Real  estate  tax  expenses  were  $431,000  for the first  nine  months of 2000
($144,000  for the third  quarter of 2000) versus  $519,000  for the  comparable
period in 1999 ($163,000 for the third quarter of 1999). Included in real estate
tax expense for 1999 was interest and  administrative  fees on delinquent taxes,
which accrued interest at 18% per annum.

Interest  expense was  $695,000 net of $61,000 of  capitalized  interest for the
first  nine  months of 2000  ($236,000  for the third  quarter  of 2000)  versus
$510,000 for the  comparable  period in 1999  ($174,000 for the third quarter of
1999).  The  increase  in interest  expense is a result of higher debt  balances
accruing interest.

Net Income (Loss)
-----------------

The Company  reported a net loss of  $402,000  for the first nine months of 2000
(an income of $69,000 for the third  quarter of 2000)  versus a loss of $800,000
for the  comparable  period in 1999 (a loss of $280,000 for the third quarter of
1999).

Regulatory Developments which may affect Future Operations
----------------------------------------------------------

In Florida,  as in many growth areas,  local governments have sought to limit or
control  population  growth in their  communities  through  restrictive  zoning,
density reduction,  the imposition of impact fees and more stringent development
requirements.  Although the Company has taken such factors into consideration in
its master  plans by  agreeing,  for example,  to make  improvements,  construct
public  facilities and dedicate  certain  property for public use, the increased
regulation  has  lengthened  the  development  process and added to  development
costs.

The  implementation  of the Florida  Growth  Management  Act of 1985 (the "Act")
precludes  the issuance of  development  orders or permits if public  facilities
such  as  transportation,  water  and  sewer  services  will  not  be  available
concurrent  with  development.  Development  orders have been  issued  for,  and
development  has  commenced  in,  the  Company's   existing   communities  (with
development  being  completed  in  certain  of  these  communities).  Thus,  the
Company's  communities  are  less  likely  to be  affected  by  the  new  growth
management policies than future communities. Any future communities developed by
the Company will be strongly impacted by new growth management  policies.  Since
the Act and its implications are  consistently  being  re-examined by the State,
together  with  local  governments  and  various  state and  local  governmental
agencies,  the Company  cannot  further  predict the timing or the effect of new
growth management policies,  but anticipates that such policies may increase the
Company's permitting and development costs.

The Company's land sales  activities are further subject to the  jurisdiction of
the laws of various  states in which the  Company's  properties  are offered for
sale.  In  addition,  Florida  and other  jurisdictions  in which the  Company's
properties  are  offered  for  sale  have   strengthened,   or  are  considering
strengthening,  their regulation of subdividers and subdivided lands in order to
provide  further  assurances  to the public.  The Company has  attempted to take
appropriate steps to modify its marketing programs and registration applications
in the face of such increased regulation,  but has incurred additional costs and
delays in the  marketing  of certain  of its  properties  in certain  states and
countries. For example, the Company has complied with the regulations of certain
states which require that the Company sell its  properties to residents of those
states pursuant to a deed and mortgage transaction,  regardless of the amount of
the down  payment.  The  Company  intends to  continue to monitor any changes in
statutes or regulations  affecting,  or  anticipated to affect,  the sale of its
properties  and intends to take all  necessary and  reasonable  action to assure
that its properties and its proposed  marketing  programs are in compliance with
such regulations, but there can be no assurance that the Company will be able to
timely  comply with all  regulatory  changes in all  jurisdictions  in which the
Company's properties are presently offered for sale to the public.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

     MORTGAGES AND SIMILAR DEBT

The Company has  satisfied its  outstanding  debt to  Scafholding.  The terms of
repayment  of the Yasawa  debt have been  restructured  to provide  for  monthly
payments of principal in the amount of $100,000  payable monthly in cash or with
contracts receivable at 100% of face value, plus interest payable monthly on the
declining  balance  at the  rate of 9.6%  per  annum  in cash or with  contracts
receivable  at 65% of face value.  Effective  January 1, 1999,  Yasawa agreed to
reduce the annual  percentage  rate on their  existing loans to the Company from
9.6% to 6% per annum.  Yasawa and  Scafholding  have not required the Company to
make monthly interest payments for the period September 1, 1998 to September 30,
2000.  As of  September  30, 2000,  the total amount of interest  accrued on the
Yasawa debt is approximately $972,000.


                                       11

<PAGE>



From October 9, 1998 through the present, Swan has advanced the Company funds to
meet its working capital  requirements.  The Company's outstanding debt to Swan,
which is secured by a second lien on the Company's receivables, is approximately
$5,938,000 and accrued interest on the Swan debt of $216,000 as of September 30,
2000. The Company signed a promissory  note to Swan in March 1999 which provides
that  funds  advanced  by Swan  will be paid  back  by the  Company  monthly  in
contracts  receivables  at 90% of face value,  with  recourse.  There will be no
interest  for the first six months  after an advance of money is  received  from
Swan by the  Company;  thereafter  the  interest  shall  be 6% per  annum on the
outstanding balance of the advance. Each time an advance is made, a supplemental
note is  signed.  The  amount  of each  monthly  payment  will  vary and will be
dependent  upon the amount of contracts  receivable in the Company's  portfolio,
excluding  contracts  receivable held as collateral for prior receivable  sales.
Pursuant  to the terms of the  promissory  note,  the  Company  is  required  to
transfer to Swan monthly as debt repayment all current  contracts  receivable in
the  Company's  portfolio  in excess of the  aggregate  sum of  $500,000.  Funds
advanced by Swan were used by the Company to pay  outstanding  real estate taxes
for unsold  properties  with the balance to meet the Company's  working  capital
requirements.

The following table presents  information  with respect to mortgages and similar
debt (in thousands):

                                          Nine Months Ended    Year Ended
                                          September 30, 2000   December 31, 1999
                                          ------------------   -----------------

     Mortgage Notes Payable..........     $ 5,700              $ 6,600
     Other Loans.....................       5,938                5,114
                                          -------              -------
       Total Mortgages and
       similar debt..................     $11,638              $11,714
                                          -------              -------
------------------
*       Included  in Mortgage  Notes  Payable is the Yasawa
        loan  ($5,700,000 at September 30, 2000);  included
        in Other Loans is the Swan loan  ($5,938,000  as of
        September 30, 2000).

Indebtedness  under various  purchase  money  mortgages  and loan  agreements is
collateralized by substantially all of the Company's assets,  including stock of
certain wholly-owned  subsidiaries.  The Company's outstanding debt to Yasawa is
secured by a first lien on the  Company's  receivables  and a mortgage on all of
the Company's property; and the Company's outstanding debt to Swan is secured by
a second lien on the Company's receivables.

     CONTRACTS AND MORTGAGES RECEIVABLE SALES

In June, 1992 and February,  1990, the Company  completed sales of contracts and
mortgages receivable totaling $13,500,000 and $17,000,000,  respectively,  which
generated approximately $8,000,000 and $13,900,000 respectively, in net proceeds
to the  Company.  The  anticipated  costs of the  June,  1992  transaction  were
included in the  extraordinary  loss from debt  restructuring for 1991 since the
restructuring was dependent on the sale. The Company recorded a loss of $600,000
on the February,  1990 sale. In conjunction with these sales the Company granted
the purchaser a security interest in certain additional  contracts receivable of
approximately  $2,700,000 and conveyed all of its rights,  title and interest in
the property  underlying  such contracts to a collateral  trustee.  In addition,
these  transactions,  among other  things  require  that the Company  replace or
repurchase any receivable  that becomes 90 days  delinquent  upon the request of
the  purchaser.  Such  requirement  can be satisfied from contracts in which the
purchaser holds a security  interest  (approximately  $1,498,000 as of September
30, 2000). The purchaser of these receivables  experienced  financial difficulty
and filed in 1994 for  protection  under  Chapter 11 of the  Federal  Bankruptcy
Code. In November 1995, the purchaser of these receivables sold the portfolio to
Finova  Capital  Corporation.  The Company has fully  reserved for the estimated
future   cancellations  based  on  the  Company's   historical   experience  for
receivables the Company services and believes these reserves to be adequate.  In
1999,  the Company did not replace any delinquent  receivables.  As of September
30, 2000 and December 31, 1999  $1,196,000 and  $1,244,000 in  receivables  were
delinquent, respectively.

During 1998,  Scafholding  purchased  approximately  $1,400,000 in contracts and
mortgages  receivable from the Company at sixty-five percent (65%) of face value
with recourse for non-performing contracts.  These sales generated approximately
$900,000 used to meet the Company's working capital requirements.

In the  future,  if the Company  elects to do so,  Yasawa and  Scafholding  have
agreed to purchase contracts receivable at 65% of face value, with recourse. The
Company has an agreement  with Swan whereby Swan will loan the Company  funds to
be repaid with contracts receivable at 90% of face value, with recourse.


                                       12

<PAGE>



The  Company  was  the  guarantor  of  approximately  $16,959,000  of  contracts
receivable  sold or transferred  as of September 30, 2000, for the  transactions
described  above.  There  are  no  funds  on  deposit  with  purchasers  of  the
receivables  as security to assure  collectibility  as of such date. A provision
has been established for the Company's  obligation under the recourse provisions
of which  $4,151,000  remains at  September  30,  2000.  The Company has been in
compliance  with  all  receivables   transactions   since  the  consummation  of
receivable sales.

The Company has an agreement with Scafholding and Citony Development Corporation
for  the  servicing  of  their  receivable  portfolios.   The  Company  received
approximately $86,700 in 1999 in revenue pursuant to these agreements.

     ACQUISITION OF HOMES UNDER CONSTRUCTION

In January 2000, the Company purchased 16 lots and homes under construction from
Scafholding for approximately $862,000. This amount represents Scafholding's lot
cost  and  payments  to date to the  home  builder.  This  transaction  was 100%
financed by Swan under its existing note payable arrangement.

     OTHER OBLIGATIONS

As of September 30, 2000, the Company had estimated  development  obligations of
approximately $25,000 on sold property,  an estimated liability to provide title
insurance  and  deeding  costs  of  $132,000  and an  estimated  cost of  street
maintenance,  prior to assumption of such  obligations  by local  governments of
$603,000,  all of which are  included  in  deferred  revenue.  The total cost to
complete  improvements  as of  September  30,  2000,  including  the  previously
mentioned obligations, was estimated to be approximately $760,000.

The Company's  development  obligation was substantially  reduced in 1997 by the
consummation of the Agreement  approved by the stockholders on November 4, 1997.
Approximately  $7,400,000 of the development  obligation at St. Augustine Shores
was assumed by Swan. In addition,  the creation of a Lot Exchange  Trust reduced
the  development  obligation  at Marion  Oaks and Sunny  Hills by  approximately
$5,800,000.

     LIQUIDITY

Retail land sales have  traditionally  produced  negative  cash flow through the
point of sale as a result of a regulatory  requirement  to sell fully  developed
lots and the additional  requirement to pay marketing and selling expenses prior
to or shortly  after the point of sale. In an effort to offset the negative cash
flow  effects of  installment  land sales,  the  Company is  directing a greater
portion  of its  marketing  efforts  to the sale of lots  with  homes and is now
offering lots for sale in compulsory  building  areas where a lot purchaser must
complete  payments for the lot and  construct a home within a limited  period of
time.

The Company has been  dependent on its ability to sell or otherwise  finance its
contracts   receivable   and/or   secure  other   financing  to  meet  its  cash
requirements.  Since 1992,  the Company has been  largely  dependent  on Yasawa,
Scafholding  and Swan and related  parties for the financing of its  operations.
Although  Scafholding has purchased contracts  receivables at the rate of 65% of
face value, with recourse,  and Swan has loaned the Company  additional funds to
be paid back with  contracts  receivable at the rate of 90% of face value,  with
recourse,  there can be no  guarantee  that the Company will be able to generate
sufficient  receivables  to obtain  sufficient  financing  in the future or that
Yasawa, Scafholding,  Swan and other related parties will continue to make loans
to the Company.


                                       13

<PAGE>


                           PART II - OTHER INFORMATION
                           ---------------------------


ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K.

            (a) Exhibits

                None.

            (b) Reports on Form 8-K

                None.





                                    SIGNATURE
                                    ---------



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


                                             THE DELTONA CORPORATION



Date: November 14, 2000                      By: /s/Donald O. McNelley
                                                 -------------------------------
                                                 Donald O. McNelley
                                                 Treasurer
                                                 (Principal Financial Officer)


                                       14

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