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, 1999

                                       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, 1999.



<PAGE>



                          PART I- FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS
<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
                 UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
                    SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
                                 ($000 Omitted)

                                                          September 30,  December 31,
                                                              1999          1998
                                                          -------------  ------------
<S>                                                       <C>            <C>
Cash and cash equivalents, including escrow deposits
 and restricted cash of $498 in 1999 and $667 in 1998...  $      684     $     721
Contracts receivable for land sales - net...............       1,403         2,173
                                                          ----------     ---------
Mortgages and other receivables - net...................         103           194
                                                          ----------     ---------
Inventories (b):
 Land and land improvements.............................       8,143         7,579
 Other..................................................          76            76
                                                          ----------     ---------
       Total inventories................................       8,219         7,655
                                                          ----------     ---------
Property, plant, and equipment at cost - net............         488           467
                                                          ----------     ---------
Prepaid expenses and other..............................         910           705
                                                          ----------     ---------
       Total............................................  $   11,807     $  11,915
                                                          ==========     =========



                LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)


Mortgages and similar debt(c):
 Mortgage notes payable.................................  $    6,670     $   6,670
 Other loans ...........................................       4,700         1,895
                                                          ----------     ---------
   Total mortgages and similar debt.....................      11,370         8,565

Accounts payable, accrued expenses,
 customers' deposits....................................       6,842         8,786
Deferred revenue........................................       2,482         2,824
                                                          ----------     ---------
Total liabilities.......................................      20,694        20,175
                                                          ----------     ---------

Commitments and contingencies (d):
  Stockholders' equity (deficiency):
  Common stock, $1 par value - authorized
  15,000,000 shares; outstanding: 1999 and
  1998 - 13,544,277 shares (excluding 12,228 shares
  held in treasury in 1999 and 1998)....................      13,544        13,544
 Capital surplus........................................      51,613        51,440
 Accumulated deficit....................................     (74,044)      (73,244)
                                                          ----------     ---------
       Total stockholders' (deficiency).................      (8,887)       (8,260)
                                                          ----------     ---------
              Total.....................................  $   11,807     $  11,915
                                                          ==========     =========
</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,
                                          1999         1998             1999           1998
                                          ----         ----             ----           ----
<S>                                   <C>           <C>              <C>           <C>
Revenues (a):
 Net land sales....................   $    2,805    $     2,238      $     1,012   $     718
 House and apartment sales.........        2,615            949              570         289
 Recognized improvement revenue /
  prior period sales...............          293            845              106         161
 Interest income...................          390            433              179         119
 Other revenues....................          400            197              179          51
                                      ----------    -----------      -----------   ---------
     Total.........................        6,503          4,663            2,046       1,338
                                      ----------    -----------      -----------   ---------

Costs and expenses (a):
 Cost of sales and improvements....        3,004          1,776              790         565
 Selling, general and administrative
  and other expenses...............        3,789          4,461            1,362       1,843
 Interest expense (c)(e)...........          510            620              174         199
                                      ----------    -----------      -----------   ---------
     Total.........................        7,303          6,857            2,326       2,607
                                      ----------    -----------      -----------   ---------
Loss from operations ..............         (800)        (2,194)            (280)     (1,269)
                                      ----------    -----------      -----------   ---------
Net Income (Loss)..................   $     (800)   $    (2,194)     $      (280)  $  (1,269)
                                      ==========    ===========      ===========   =========
Basic Earnings (Loss) per common
 and common equivalent share:
 From operations...................   $     (.06)   $      (.16)     $      (.02)  $    (.09)
                                      ----------    -----------      -----------   ---------
Net Income (Loss)..................   $     (.06)   $      (.16)     $      (.02)  $    (.09)
                                      ==========    ===========      ===========   =========

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

<FN>



No dividends have been paid on Common Stock.
Results of operations for the first nine months may not be indicative of results
which  may be  expected  for the full  year.  See Notes to  Unaudited  Condensed
Consolidated Financial Statements.
See Management's Analysis of Quarterly Statements of Operations included herein.
Certain amounts have been reclassified for comparative purposes.

</FN>
</TABLE>

                                        3

<PAGE>

<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
                            FOR THE NINE MONTHS ENDED
                    SEPTEMBER 30, 1999 AND SEPTEMBER 30, 1998
                                 ($000 Omitted)

                                                                 Nine Months Ended
                                                          September 30,    September 30,
                                                             1999             1998
                                                          -------------    -------------

<S>                                                       <C>              <C>
Cash flows from operating activities....................  $   (5,934)      $    (430)
                                                          ----------       ---------

Cash flows from investing activities:
  Proceeds from sale of property, plant and equipment...           3               0
 Payment for acquisition and construction
  of property plant and equipment.......................         (81)            (68)
                                                          ----------       ---------
Net cash provided by (used in) investing activities.....         (78)            (68)
                                                          ----------       ---------

Cash flows from financing activities:
  New borrowings........................................       5,975               0
  Repayment of borrowings...............................           0               0
                                                          ----------       ---------
Net cash provided by (used in) financing activities.....       5,975               0
                                                          ----------       ---------
Net increase (decrease) in cash and cash equivalents
 (including escrow deposits and restricted cash)........         (37)           (498)

Cash and cash equivalents at December 31, 1998 and
 December 31, 1997......................................         721           1,397
                                                          ----------       ---------
Cash and cash equivalents at September 30, 1999 and
 September 30, 1998.....................................  $      684       $     899
                                                          ==========       =========

<FN>

See Notes to Unaudited Condensed Consolidated Financial Statements.
Certain amounts have been reclassified for comparative purposes.
</FN>
</TABLE>


                                        4

<PAGE>
<TABLE>
<CAPTION>


                    THE DELTONA CORPORATION AND SUBSIDIARIES
            UNAUDITED CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
                            FOR THE NINE MONTHS ENDED
                    SEPTEMBER 30, 1999 AND SEPTEMBER 30, 1998
                                 ($000 Omitted)

                                                                 Nine Months Ended
                                                          September 30,    September 30,
                                                             1999             1998
                                                          -------------    -------------
<S>                                                       <C>              <C>
Reconciliation of net income (loss) to net cash
 provided by (used in) operating activities:

  Net loss..............................................  $    (800)       $ (2,194)
                                                          ---------        --------

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

  Depreciation and amortization.........................         37              33
  Provision for estimated uncollectible sales-net.......        653             797
  Contract valuation discount, net of amortization......          3             132
  Net Gain on sale of property, plant & equipment.......          3               0
  Net change in assets and liabilities..................     (5,830)           (802)
                                                          ---------        --------
        Total adjustments...............................  $  (5,134)       $  1,764
                                                          ---------        --------

  Net cash provided by (used in) operating activities...  $  (5,934)       $   (430)
                                                          =========        ========

  Supplemental disclosure of non cash investing
       and financing activities:

  Reduction of debt as a result of the conveyance
       of contracts receivable.........................   $   3,170        $    887
                                                          =========        ========
</TABLE>


                                        5

<PAGE>



                    THE DELTONA CORPORATION AND SUBSIDIARIES
         NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                               SEPTEMBER 30, 1999

(a)  SIGNIFICANT ACCOUNTING POLICIES

     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  the  Company,  all
     adjustments (consisting only of normal recurring adjustments) necessary for
     a fair statement of the results for the interim  periods  presented.  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.

(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,
                                                     1999           1998
                                                  ------------- ------------
     Unimproved land........................      $    429      $    420
     Land in various stages of development..         3,554         2,287
     Fully improved land....................         4,169         4,872
                                                  --------      --------
          Total.............................      $  8,143      $  7,579
                                                  ========      ========

     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,
                                                     1999           1998
                                                  ------------- ------------
     Mortgage  Notes Payable  ..................  $   6,670     $ 6,670
     Other  Loans...............................      4,700       1,895
                                                  ---------     -------
        Total mortgages and similar debt........  $  11,370     $ 8,565
                                                  =========     =======

     Included in  Mortgage  Notes Payable is  the  Yasawa  loan  ($6,670,000  at
     September 30, 1999);  included  in  Other  Loans  is  the  Scafholding loan
     ($230,000 as of September  30, 1999) and the Swan loan  ($4,470,000)  as of
     September  30, 1999).

     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 Scafholding is secured by a first lien on the Company's receivables; the
     Company's  outstanding  debt to Yasawa is secured  by a second  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 third lien on the
     Company's receivables.

     The terms of  repayment  of the Yasawa and  Scafholding  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 9.6% per annum in
     cash or with contracts  receivable at 65% of face value.  Effective January
     1, 1999, Yasawa and Scafholding 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, 1999.  As of
     September 30, 1999, the total amount of interest  accrued is  approximately
     $591,000.

                                        6

<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  third  lien  on  the  Company's
     receivables,  is  approximately  $4,170,000 as of September  30, 1999.  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.  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 approximately $2,567,000 in outstanding real estate taxes for unsold
     properties  with  the  balance  to  meet  the  Company's   working  capital
     requirements.  Included in the interest  expense for the nine months ending
     September 30, 1999 is $173,000 for interest imputed on the Swan debt, which
     was treated as a contribution to capital,  and $3,000 for interest  accrued
     on the Swan debt.

(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 a result of the delays in completing  the land  improvements  to certain
     property sold in certain of its Central and North Florida communities,  the
     Company  fell  behind  in  meeting  its  contractual   obligations  to  its
     customers.  In connection  with these delays,  in 1980 the Company  entered
     into a Consent  Order  with the  Division  which  provided  a  program  for
     notifying  affected  customers.  Since 1980, the Consent Order was restated
     and amended several times, culminating in the 1992 Deltona Consent Order.

     On December 30, 1997, the Division approved the formation of a Lot Exchange
     Trust into which the Company  conveyed  sufficient  exchange  inventory  to
     provide  exchanges to customers with undeveloped  lots.  Concurrently,  the
     Division released its lien on the Company's contracts receivable, satisfied
     its mortgage on the  Company's  property  and approved a settlement  of all
     remaining  issues under the 1992 Deltona  Consent  Order.  The 1992 Deltona
     Consent Order was formally terminated on April 13, 1998.

     As of September 30, 1999, the Company had estimated development obligations
     of  approximately  $25,000 on sold  property,  an  estimated  liability  to
     provide title insurance and deeding costs of $170,000 and an estimated cost
     of street  maintenance,  prior to assumption of such  obligations  by local
     governments of $600,000, all of which are included in deferred revenue. The
     total cost to complete improvements as of September 30, 1999, including the
     previously  mentioned  obligations,   was  estimated  to  be  approximately
     $795,000. 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.

     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,  1998,  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.

(e)  CAPITALIZED INTEREST

     The  Company   capitalizes   interest  cost  incurred  during  a  project's
     construction  period. Of the total interest cost incurred of $510,000 and $
     620,000,  none was capitalized for the nine months ended September 30, 1999
     and September 30,1998, respectively.



                                        7

<PAGE>



(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.
     The  earnings  (loss) and the average  number of shares of Common Stock and
     common stock equivalents used to calculate  earnings per share for the nine
     months ended  September 30, 1999 and September 30, 1998 were $(800,000) and
     $(2,194,000) and 13,544,277 and 13,544,277, respectively.



                                        8

<PAGE>



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


From June 19, 1992 through  November 4, 1997,  the Company had entered into loan
agreements with Selex International B.V., a Netherlands  corporation  ("Selex"),
Yasawa  Holdings,  N.V., a  Netherlands  Antilles  Corporation  ("Yasawa"),  and
related parties.  Since December,  1992, the Company has been dependent on loans
and advances from Selex,  Yasawa and their  affiliates in order to implement its
marketing program and assist in meeting its working capital requirements.

On November  4, 1997 at the 1997  Annual  Meeting,  the  Company's  stockholders
approved  an   Agreement   between  the  Company  and  its  lenders  that  would
substantially reduce the Company's  outstanding debt obligation of $25.3 million
(the  "Agreement").  The  Agreement,  consummated  effective  December 30, 1997,
resulted in a reduction in the Company's outstanding debt obligation through the
conveyance of all remaining land inventory and  obligations in the Company's St.
Augustine  Shores  Subdivision  and the  issuance of  approximately  6.8 million
shares of Common Stock at $1.00 per share (par value). Additionally, the lenders
purchased  $7.5  million in  contracts  receivable  from the Company to generate
working capital and further reduce the debt obligation. Specifically:

     1. Selex sold its remaining debt  ($2,664,736),  including the Empire note,
to Yasawa and the Company owes no further  duty or  obligation  to Selex,  which
provided  the  Company a release.  The debt  purchased  by Yasawa was  satisfied
through  Yasawa's  purchase of  2,664,736  shares of Common  Stock issued by the
Company at a per share conversion price of One Dollar ($1.00), which is equal to
par value.

     2. Swan Development Corporation ("Swan"), an affiliate of Selex and Yasawa,
had  previously  acquired  $5,529,501  of the  Company's  debt from Selex.  This
$5,529,501  was  satisfied  through  the  Company's  conveyance  of  all  of the
Company's  remaining land inventory and obligations in its St.  Augustine Shores
Subdivision  to Swan . The price,  based upon appraised  value,  was adjusted to
take into account the development obligations on sold lots assumed by Swan.

     3.  Scafholding  B.V.  ("Scafholding"),  an  affiliate of Selex and Yasawa,
purchased approximately $7.5 million in contracts receivable from the Company at
seventy-five  percent  (75%) of face  value  with  recourse  for  non-performing
contracts.  This sale generated approximately $5.6 million,  $1,982,457 of which
was used to reduce  outstanding debt to Yasawa. The balance has been used by the
Company to pay a portion of the delinquent  real estate taxes,  to implement its
marketing  programs,  to  initiate  development  of  TimberWalk  and to meet the
Company's working capital requirements.

     4. A  $4,144,602  portion of the  Company's  debt to Yasawa  was  satisfied
through  Yasawa's  purchase of  4,144,602  shares of Common  Stock issued by the
Company at a per share conversion price of One Dollar ($1.00), which is equal to
par value.

Through  Yasawa's  acquisition  of the  6,809,338  shares of Common Stock of the
Company referenced above, Mr. Antony Gram's beneficial  ownership increased from
3,109,703 shares to 9,919,041 shares (73.23% of the outstanding shares of Common
Stock of the Company as of September 30, 1999).

Prior to November 4, 1997 and independent of the Agreement outlined above, Selex
and Yasawa  agreed to forgive  $2,050,818  in accrued  interest on the Company's
debt to them.

As part of the Agreement,  if the Company elects to do so, Scafholding agreed to
purchase contracts  receivable at 65% of face value, with recourse,  to meet the
Company's  ongoing  capital  requirements.  Scafholding  purchased the following
contracts  receivables  from the  Company to  generate  working  capital for the
Company:
                                        9

<PAGE>

                                                Approximate Contracts
                        Date of Purchase        Receivable Amount Purchased
                        ----------------        ---------------------------
                        June 30, 1998           $200,100
                        July 15, 1998           $115,200
                        July 31, 1998           $179,900
                        August 31, 1998         $250,400
                        September 10, 1998      $153,400
                        September 29, 1998      $497,100

From October 9, 1998 through the present, Swan has advanced the Company funds to
meet its working capital  requirements.  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.  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
approximately  $2,567,000 in outstanding real estate taxes for unsold properties
with the  balance to meet the  Company's  working  capital  requirements.  As of
September  30,  1999,  the  Company's  outstanding  debt to Swan was  $4,470,000
secured by a third lien on the Company's receivables.

As of September 30, 1999,  the Company's  outstanding  debt to  Scafholding  was
$230,000,  secured by a first lien on the Company's  receivables;  the Company's
outstanding  debt to  Yasawa  was  $6,670,000  secured  by a second  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 9.6% per annum in cash or with  contracts  receivable  at
65% of face value.  Yasawa and  Scafholding  did not require the Company to make
interest  payments  for the  period  September  1,  1998 to the  present.  As of
September  30,  1999,  the total  amount of  interest  accrued is  approximately
$591,000. Effective January 1, 1999, Yasawa and Scafholding agreed to reduce the
annual  percentage  rate for their existing loans to the Company from 9.6% to 6%
per annum.

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 at December 31, 1998.

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

For the nine months ended September 30, 1999 and September 30, 1998.

Revenues

Total revenues were $6,503,000 for the first nine months of 1999 ($2,046,000 for
the quarter ending September 30, 1999) compared to $4,663,000 for the comparable
1998 period ($1,338,000 for the quarter ending September 30, 1998).

Gross land  sales  were  $3,618,000  for the first  nine  months of 1999  versus
$3,245,000 for the comparable 1998 period. Net land sales (gross land sales less
estimated  uncollectible  installment  sales and  contract  valuation  discount)
increased to $2,805,000  the first nine months of 1999 from  $2,238,000  for the
first nine months of 1998.  For the three months ended  September 30, 1999,  net
land sales increased to $1,012,000 from $718,000 for the comparable 1998 period.
The  increase  in  sales  reflects  higher  sales by the  Company's  independent
dealers.

Housing  revenues  were  $2,615,000  for the first  nine  months of 1999  versus
$949,000 for the  comparable  1998  period.  Revenues  are not  recognized  from
housing sales until the completion of construction and passage of title. Housing
revenues

                                       10

<PAGE>



increased  as  of result of  higher sales by the  Company's  independent  dealer
network.  The backlog of houses under contract was $2,466,000 and $3,420,000  as
of September 30, 1999 and September 30, 1998, 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,
                          1999          1998            1999          1998
                       ------------- -------------   ------------- -------------
Gross Land Sales:
    Retail Sales*      $  3,618      $   3,245       $    1,333    $ 1,075
                       --------      ---------       ----------    -------
Housing Sales:
    Single Family         2,615            949              570        289
                       --------      ---------       ----------    -------
     Total Real Estate $  6,233      $   4,194       $    1,903    $ 1,364
                       ========      =========       ==========    =======

-------------------------
     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, 1999  and  September
     30, 1998 were $4,903,000 and $3,216,000, respectively, and  $2,217,000  and
     $1,135,000 for the  third  quarters of  1999 and  1998,  respectively.  The
     Company had a backlog of approximately  $1,969,000  in  unrecognized  sales
     as of September 30, 1999. 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  $293,000 or the first nine months of 1999  ($106,000  for the
third quarter of 1999) versus $845,000 for the comparable 1998 period  ($161,000
for the third quarter of 1998).

Interest  income was $390,000 for the first nine months of 1999 versus  $433,000
for the  comparable  period in 1998. 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 $400,000 for the nine months of 1999 ($179,000 for the third
quarter of 1999) versus $197,000 for the comparable  period in 1998 ($51,000 for
the third  quarter of 1998).  Other  revenues are  principally  generated by the
Company's title  insurance and real estate  brokerage  subsidiaries,  as well as
fees paid to the Company by Scafholding to administer their property holdings.

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

Costs and expenses were $7,303,000 for the first nine months of 1999 ($2,326,000
or the third quarter of 1999) versus  $6,857,000  for the  comparable  period in
1998  ($2,607,000 for the third quarter of 1998).  Cost of sales were $3,004,000
for the first  nine  months of 1999  ($790,000  for the third  quarter of 1999),
versus  $1,776,000  for the  comparable  period in 1998  ($565,000 for the third
quarter  of  1998).  The  increase   reflects  higher  sales  by  the  Company's
independent dealers.

Commissions,  advertising  and  other  selling  expenses  totaled $2,278,000 for
the nine  months of 1999 versus  $1,899,000  for the  comparable  period in 1998
($817,000 for the third quarter of 1999 versus $629,000 for the third quarter of
1998).  Higher  retail sales  resulted in increased  commission  expense.  Other
selling  expense  increased to $833,000 for the first nine months of 1999 versus
$798,000 for the  comparable  period in 1998  ($269,000 for the third quarter of
1999  versus  $277,000  for the  third  quarter  of 1998) as a result  of higher
jobsite expenses. Advertising and promotional expenses increased to $269,000 for
the first nine months of 1999 versus $42,000 for the  comparable  period in 1998
($126,000  for the third  quarter of 1999 versus $7,000 for the third quarter of
1998).

General and  administrative  expenses were $993,000 for the first nine months of
1999  ($383,000  for the  third  quarter  of  1999)  versus  $1,792,000  for the
comparable period in 1998 ($955,000 for the third quarter of 1998).  General and
administrative  expenses  decreased  primarily due to reduced overhead expenses.
Included in 1998 expenses was termination expenses due to the resignation of two
officers who resigned effective October 1998.



                                       11

<PAGE>



Real  estate  tax  expenses  were  $519,000  for the first  nine  months of 1999
($163,000  for the third  quarter of 1999) versus  $771,000  for the  comparable
period in 1998 ($257,000 for the third quarter of 1998). Included in real estate
tax expense is any interest and  administrative  fees on delinquent taxes, which
accrue interest at 18% per annum.

Interest  expense was $510,000 for the first nine months of 1999  ($174,000  for
the third  quarter of 1999) versus  $620,000 for the  comparable  period in 1998
($199,000 for the third quarter of 1998).  The decrease in interest expense is a
result of lower interest  rates on outstanding  debt. For the nine months ending
September  30,  1999,  $173,000 is included  in  interest  expense for  interest
imputed on the Swan debt and $3,000 is included in interest expense for interest
accrued on the Swan debt.

Net Income (Loss)

The  Company  reported  a net loss of  $800,000  for the  first  nine  months of
1999($280,000 for the third quarter of 1999) versus a loss of $2,194,000 for the
comparable period in 1998 ($1,269,000 for the third quarter of 1998).

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

Effective  December 30, 1997,  the Company and its lenders  consummated  several
transactions  that  resulted in a reduction in the  Company's  outstanding  debt
obligation   through  the   conveyance  of  all  remaining  land  inventory  and
obligations in the Company's St. Augustine  Shores  Subdivision and the issuance
of  approximately  6.8  million  shares of Common  Stock at $1.00 per share (par
value).  Additionally,  the lenders purchased $7,500,000 in contracts receivable
from the  Company  to  generate  working  capital  and  further  reduce the debt
obligation. Selex sold its remaining debt ($2,664,736), including the

                                       12

<PAGE>



Empire note,  to Yasawa and the Company owes no further  duty or  obligation  to
Selex,  which provided the Company with a release.  The debt purchased by Yasawa
was  satisfied  through  Yasawa's  purchase of 2,664,736  shares of Common Stock
issued by the  Company at a per share  conversion  price of One Dollar  ($1.00),
which is equal to par value.  Swan had  previously  acquired  $5,529,501  of the
Company's debt from Selex.  This $5,529,501 was satisfied  through the Company's
conveyance of all of the Company's  remaining land inventory and  obligations in
its St. Augustine Shores  Subdivision to Swan . The price,  based upon appraised
value,  was adjusted to take into account the  development  obligations  on sold
lots  assumed  by  Swan.  Scafholding  purchased  approximately   $7,500,000  in
contracts  receivable  from the Company at  seventy-five  percent  (75%) of face
value  with  recourse  for   non-performing   contracts.   This  sale  generated
approximately  $5.6 million,  $1,982,457 of which was used to reduce outstanding
debt to  Yasawa.  The  balance  was used by the  Company to pay a portion of the
delinquent real estate taxes, to implement its marketing  programs,  to initiate
development   of  TimberWalk   and  to  meet  the  Company's   working   capital
requirements. A $4,144,602 portion of the Company's debt to Yasawa was satisfied
through  Yasawa's  purchase of  4,144,602  shares of Common  Stock issued by the
Company at a per share conversion price of One Dollar ($1.00), which is equal to
par value.

The terms of repayment of the Yasawa and Scafholding 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 and  Scafholding  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 the present. As of September 30, 1999, the total
amount of interest accrued is approximately $591,000.

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 third lien on the Company's receivables,  is approximately
$4,470,000 as of September  30, 1999.  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.  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
approximately  $2,567,000 in outstanding real estate taxes for unsold properties
with the balance to meet the Company's working capital requirements. Included in
the interest  expense for the nine months ending  September 30, 1999 is $173,000
for interest  imputed on the Swan debt,  which was treated as a contribution  to
capital, and $3,000 for interest accrued on the Swan debt.

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


                                                  September 30, December 31,
                                                     1999           1998
                                                  ------------- ------------
     Mortgage  Notes Payable  ..................  $   6,670     $ 6,670
     Other  Loans...............................      4,700       1,895
                                                  ---------     -------
        Total mortgages and similar debt........  $  11,370     $ 8,565
                                                  =========     =======

-------------------
     Included in Mortgage  Notes Payable is the Yasawa loan ($6,670 at September
     30, 1999);  included in Other Loans is the Scafholding loan ($230,000 as of
     September  30, 1999) and the Swan loan  ($4,470,000)  as of  September  30,
     1999).

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 Scafholding
is  secured  by a  first  lien  on  the  Company's  receivables;  the  Company's
outstanding  debt to  Yasawa  is  secured  by a  second  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  third  lien  on  the  Company's
receivables.


                                       13

<PAGE>



     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  $1,917,000 as of September
30, 1999). 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
1998,  the Company did not replace any delinquent  receivables.  As of September
30, 1999 and 1998,  $1,036,000 and $1,298,000 in  receivables  were  delinquent,
respectively.

In March,  1993, the Company  transferred  $1,600,000 in contracts and mortgages
receivable generating approximately $1,059,000 in proceeds to the Company, which
was used for  working  capital  and the  creation  of a holdback  account in the
amount of $150,000.  In 1998, the balance of the monies in the holdback  account
were withdrawn by the contracts  receivable  purchaser  pursuant to the purchase
agreement and the holdback account was terminated.

In December 1997,  Scafholding purchased  approximately  $7,500,000 in contracts
receivable  from the Company at  seventy-five  percent  (75%) of face value with
recourse for non-performing  contracts.  This sale generated  approximately $5.6
million,  $1,982,457 of which was used to reduce outstanding debt to Yasawa. The
balance  has been used by the  Company to pay a portion of the  delinquent  real
estate taxes, to implement its marketing  programs,  to initiate  development of
TimberWalk and to meet the Company's working capital requirements.

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.

From October 9, 1998 through the present, Swan has advanced the Company funds to
meet its working capital  requirements.  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.  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.

The  Company  was  the  guarantor  of  approximately  $12,740,000  of  contracts
receivable  sold or transferred  as of September 30, 1999, 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  $4,073,000  remains at  September  30,  1999.  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  and  other  administration
performed  on their  behalf.  During 1999,  the Company  entered into a similiar
agreement with Swan  Development  Corporation,  although the Swan agreement does
not provide a fee for  servicing of its  receivables.  During 1998,  the Company
received approximately $82,000 in revenue pursuant to these agreements.  Revenue
under these  agreements for the first nine months of 1999 was $141,000  ($33,000
for the third quarter of 1999).



                                       14

<PAGE>



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.

     OTHER OBLIGATIONS

As of September 30, 1999, the Company had estimated  development  obligations of
approximately  $25,000 on sold property, an estimated liability to provide title
insurance  and  deeding  costs  of  $170,000  and an  estimated  cost of  street
maintenance,  prior to assumption of such  obligations  by local  governments of
$600,000,  all of which are  included  in  deferred  revenue.  The total cost to
complete  improvements  as of  September  30,  1999,  including  the  previously
mentioned obligations, was estimated to be approximately $795,000. 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 has just
begun 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 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.

     YEAR 2000

The  Company  utilizes  a number of  software  systems in  conjunction  with its
community  development,  contract processing and contract servicing  operations.
The Company has  received  assurances  from third  party  servicing  agents that
systems being used in  conjunction  with the  Company's  business are or will be
Year 2000 compliant on a timely basis. The Company has and will continue to make
certain  investments  in its  software  systems and  applications  to ensure the
Company is Year 2000  compliant.  The  financial  impact of  becoming  Year 2000
compliant  has not been and is not  expected  to be  material  to the  Company's
financial position or the results of operations in a given year.


                                       15

<PAGE>


                           PART II - OTHER INFORMATION


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

          (a)  Exhibits

               None.

          (b)  Reports on Form 8-K

               None.


                                       16

<PAGE>


                                    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 12, 1999                    By: /s/Donald O. McNelley
      -----------------                        ---------------------
                                               Donald O. McNelley
                                               Treasurer
                                               (Principal Financial Officer)


                                       17

<PAGE>