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 June 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 June 30, 2000.


<PAGE>



                          PART I- FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>

                    THE DELTONA CORPORATION AND SUBSIDIARIES
                    ----------------------------------------
                 UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
                 -----------------------------------------------
                       JUNE 30, 2000 AND DECEMBER 31, 1999
                       -----------------------------------
                                 ($000 Omitted)
                                                         June 30,   December 31,
                                                          2000          1999
                                                         ---------  ------------
                      ASSETS
                      ------
<S>                                                      <C>        <C>

Cash and cash equivalents, including escrow deposits
 and restricted cash of $446 in 2000 and $396 in 1999 .. $    597   $    548
                                                         --------   --------
Contracts receivable for land sales - net ..............    1,241      1,549
                                                         --------   --------
Mortgages and other receivables - net ..................       85        109
                                                         --------   --------

Inventories (b):
 Land and land improvements ............................    8,213      8,237
 Houses completed or under construction ................    1,243          0
 Other .................................................       49         70
                                                         --------   --------
            Total inventories ..........................    9,505      8,307
                                                         --------   --------

Property, plant, and equipment at cost - net ...........      465        489
Prepaid expenses and other .............................      927        911
                                                         --------   --------
       Total ........................................... $ 12,820   $ 11,913
                                                         ========   ========



    LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
    -------------------------------------------------

Mortgages and similar debt(c):

 Mortgage notes payable ................................ $  6,000   $  6,600
 Other loans ...........................................    6,168      5,114
                                                         --------   --------
   Total mortgages and similar debt ....................   12,168     11,714

Accounts payable, accrued expenses,
 customers' deposits ...................................    6,904      6,024
Deferred revenue .......................................    2,207      2,379
                                                         --------   --------
Total liabilities ......................................   21,279     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 .......................................   52,080     51,863
 Accumulated deficit ...................................  (74,083)   (73,611)
                                                         --------   --------
            Total stockholders' (deficiency) ...........   (8,459)    (8,204)
                                                         --------   --------
                        Total .......................... $ 12,820   $ 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)


                                           Six Months Ended               Three Months Ended
                                   ------------------------------    ----------------------------
                                       June 30,         June 30,        June 30,       June30,
                                         2000             1999            2000           1999
                                   --------------    ------------    ------------    ------------
<S>                                <C>               <C>             <C>             <C>
Revenues (a):

 Net land sales ..................   $      2,862    $      1,793    $      1,693    $      1,180
 House and apartment sales .......          1,130           2,045             538             792
 Recognized improvement revenue /

  prior period sales .............            140             187              91              86
 Interest income .................            169             211              84             103
 Other revenues ..................            289             221              97             112
                                     ------------    ------------    ------------    ------------
     Total .......................          4,590           4,457           2,503           2,273
                                     ------------    ------------    ------------    ------------
Costs and expenses (a):

 Cost of sales and improvements ..          1,779           2,213             897             967
 Selling, general, administrative
  and other expenses .............          2,823           2,427           1,470           1,308
 Interest expense (c)(e) .........            459             336             205             220
                                     ------------    ------------    ------------    ------------
     Total .......................          5,061           4,976           2,572           2,495
                                     ------------    ------------    ------------    ------------

Net Income (Loss) ................   $       (471)   $       (519)   $        (69)   $       (222)
                                     ============    ============    ============    ============

Net Income (Loss) per common share   $       (.03)   $       (.04)   $       (.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 SIX MONTHS ENDED
                            ------------------------
                         JUNE 30, 2000 AND JUNE 30, 1999
                         -------------------------------
                                 ($000 Omitted)

                                                         Six  Months Ended
                                                        -------------------
                                                         June 30,  June 30,
                                                           2000      1999
                                                        ---------  --------
<S>                                                     <C>        <C>

Cash flows from operating activities ................   $(2,758)   $(5,068)
                                                        -------    -------
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 ................................        (1)       (37)
                                                        -------    -------
Net cash provided by (used in) investing activities..        (1)       (34)
                                                        -------    -------

Cash flows from financing activities:
  New borrowings ....................................     2,808      4,925
                                                        -------    -------
Net cash provided by (used in) financing activities..     2,808      4,925
                                                        -------    -------

Net increase (decrease) in cash and cash equivalents
 (including escrow deposits and restricted cash) ....        49       (177)

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

Cash and cash equivalents end of period .............   $   597    $   544
                                                        =======    =======



See accompanying notes.
</TABLE>


                                        4


<PAGE>
<TABLE>
<CAPTION>

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


                                                         Six  Months Ended
                                                        -------------------
                                                         June 30,  June 30,
                                                           2000      1999
                                                        ---------  --------
<S>                                                     <C>        <C>
Reconciliation of net income (loss) to net cash
 provided by (used in) operating activities:

  Net income (loss) .................................   $  (471)   $  (519)
                                                        -------    -------

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

  Depreciation and amortization .....................        25         25
  Provision for estimated uncollectible sales-net ...       499        410
  Contract valuation discount, net of amortization ..        97         43
  Net Gain on sale of property, plant & equipment ...         0          3
  Imputed Interest on debt with related party .......       190          0
  Net change in assets and liabilities ..............    (3,098)    (5,030)
                                                        -------    -------
            Total adjustments .......................   $(2,287)   $(4,549)
                                                        -------    -------

  Net cash provided by (used in) operating activities   $(2,758)   $(5,068)
                                                        =======    =======

  Supplemental disclosure of non cash investing
            and financing activities:

  Reduction of debt as a result of the conveyance
            of contracts receivable .................   $ 2,356    $ 2,081
                                                        =======    =======



See accompanying notes.

</TABLE>

                                        5


<PAGE>



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

THE  INFORMATION  PRESENTED  HEREIN  AS OF JUNE 30,  2000 FOR THE  THREE AND SIX
MONTHS ENDED JUNE 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 six months ended June 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 June 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
                                                          June 30,  December 31,
                                                            2000       1999
                                                          --------  ------------
                Unimproved land.........................  $    420  $    420
                Land in various stages of development...     3,175     2,633
                Fully improved land.....................     4,618     5,184
                                                          --------  --------
                                    Total...............  $  8,213  $  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):

                                                          June 30,  December 31,
                                                            2000       1999
                                                          --------  ------------
                Mortgage Notes Payable .................  $  6,000  $  6,600
                Other Loans.............................     6,168     5,114
                                                          --------  --------
                      Total mortgages and similar debt..  $ 12,168  $ 11,714
                                                          ========  ========

            Included in Mortgage Notes Payable is the Yasawa loan ($6,000,000 at
            June 30, 2000); included in Other Loans is the Swan loan ($6,168,000
            as of June 30, 2000).

                                        6


<PAGE>



            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 June 30, 2000. As of June 30, 2000, the
            total amount of interest accrued on the Yasawa debt is approximately
            $883,000.

            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  $6,168,000 and
            accrued  interest on the Swan debt of $151,000 as of June 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  June  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 $181,000
            and an estimated cost of street maintenance,  prior to assumption of
            such obligations by local governments of $610,000,  all of which are
            included   in   deferred   revenue.   The  total  cost  to  complete
            improvements as of June 30, 2000, including the previously mentioned
            obligations, was estimated to be approximately $816,000.

            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.

(e)         CAPITALIZED INTEREST

            The Company  capitalizes  interest cost incurred  during a project's
            construction period. Of the total interest cost incurred of $506,000
            and $336,000,  $47,000 was capitalized for the six months ended June
            30,  2000  and  none  for  the  six  months  ended  June  30,  1999,
            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.

(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 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 June 30, 2000. As of June 30, 2000, the total amount
of interest accrued on the Yasawa debt is approximately $883,000.

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
$6,168,000  and  accrued  interest  on the Swan debt of  $151,000 as of June 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  $217,000 for
the six months ended June 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 six months ended June 30, 2000 and June 30, 1999.

Revenues

Total revenues were $4,590,000 for the first six months of 2000  ($2,503,000 for
the quarter ending June 30, 2000) compared to $4,457,000 for the comparable 1999
period ($2,273,000 for the quarter ending June 30, 1999).

Gross  land  sales  were  $3,497,000  for the  first six  months of 2000  versus
$2,285,000 for the comparable 1999 period. Net land sales (gross land sales less
estimated  uncollectible  installment  sales and  contract  valuation  discount)
increased to  $2,862,000  the first six months of 2000 from  $1,793,000  for the
first six months of 1999.  For the three months  ended June 30,  2000,  net land
sales  increased to $1,693,000  from  $1,180,000 for the comparable 1999 period.
The  increase  in  sales  reflects  higher  sales by the  Company's  independent
dealers.

                                        9


<PAGE>


Housing  revenues  were  $1,130,000  for the  first six  months  of 2000  versus
$2,045,000 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 $5,613,000
and $3,298,000 as of June 30, 2000 and June 30, 1999, respectively.

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

                                   Six Months Ended         Three Months Ended
                                 ----------------------   ----------------------
                                 June 30,     June 30,    June 30,      June 30,
                                   2000         1999        2000          1999
                                 --------     ---------   --------      --------
            Gross Land Sales:
            Retail Sales*        $  3,497     $   2,285   $  1,965      $  1,361
                                 --------     ---------   --------      --------
            Housing Sales:          1,130         2,045        538           792
                                 --------     ---------   --------      --------
             Total Real Estate   $  4,627     $   4,330   $  2,503       $ 2,153
                                 ========     =========   ========       =======
---------------------

*    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 six months  ended June 30,  2000 and June 30,  1999
     were $4,470,000 and $3,285,000,  respectively and $2,971,000 and $1,931,000
     for the  three  months  ended  June 30,  2000 and 1999,  respectively.  The
     Company had a backlog of approximately  $2,386,000 in unrecognized sales as
     of June 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  $140,000  for the first six months of 2000  ($91,000  for the
second quarter 2000) versus $187,000 for comparable 1999 period ($86,000 for the
second quarter of 1999).

Interest  income was $169,000  for the first six months of 2000 versus  $211,000
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 $289,000 for the first six months of 2000 ($ 97,000 for the
second  quarter  of 2000)  versus  $221,000  for the  comparable  period in 1999
($112,000  for the  second  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 $5,108,000 for the first six months of 2000  ($2,619,000
for the second quarter of 2000) versus  $4,976,000 for the comparable  period in
1999 ($2,495,000 for the second quarter of 1999).  Cost of sales were $1,779,000
for the first six  months of 2000  ($897,000  for the  second  quarter  of 2000)
versus  $2,213,000  for the  comparable  period in 1999 ($967,000 for the second
quarter of 1999).

Commissions,  advertising and other selling expenses totaled  $1,852,000 for the
first six  months of 2000  ($1,005,000  for the second  quarter of 2000)  versus
$1,461,000 for the comparable period in 1999 ($849,000 for the second quarter of
1999). Higher retail land sales resulted in increased commission expense.  Other
selling  expenses were  $574,000 for the first six months of 2000  ($315,000 for
the second quarter of 2000) versus  $563,000 for the  comparable  period in 1999
($295,000 for the second quarter of 1999).  Advertising and promotional expenses
increased to $227,000 for the first six months of 2000  ($107,000 for the second
quarter of 2000) versus $143,000 for the comparable period in 1999 ($133,000 for
the second quarter of 1999).

General and  administrative  expenses  were $684,000 for the first six months of
2000  ($322,000  for  the  second  quarter  of  2000)  versus  $611,000  for the
comparable period in 1999 ($296,000 for the second quarter of 1999). General and
administrative expenses increased primarily due to increased overhead expenses.

                                       10


<PAGE>

Real  estate  tax  expenses  were  $287,000  for the  first  six  months of 2000
($144,000  for the second  quarter of 2000) versus  $356,000 for the  comparable
period in 1999  ($163,000  for the  second  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  $459,000  net of $47,00 of  capitalized  interest for the
first six  months of 2000  ($205,000  for the  second  quarter  of 2000)  versus
$336,000 for the  comparable  period in 1999 ($220,000 for the second 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  $471,000  for the first six months of 2000
($69,000  for the second  quarter  of 2000)  versus a loss of  $519,000  for the
comparable period in 1999 ($222,000 for the second 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 June 30,
2000.  As of June 30, 2000,  the total amount of interest  accrued on the Yasawa
debt is approximately $883,000.

                                       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
$6,168,000  and  accrued  interest  on the Swan debt of  $151,000 as of June 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):
                                             Six Months Ended  Year Ended
                                             June 30, 2000     December 31, 1999
                                             ----------------  -----------------
     Mortgage Notes Payable ...............  $  6,000          $  6,600
     Other Loans...........................     6,168             5,114
                                             --------          --------
         Total mortgages and similar debt..  $ 12,168          $ 11,714
                                             ========          ========

----------------
*           Included in Mortgage Notes Payable is the Yasawa loan ($6,000,000 at
            June 30, 2000); included in Other Loans is the Swan loan ($6,168,000
            as of June 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  $1,659,000 as of June 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 June 30, 2000 and
December 31, 1999  $1,233,000  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  $13,850,000  of  contracts
receivable  sold  or  transferred  as of June  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 $3,868,000 remains at June 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 June 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  $181,000  and an  estimated  cost of  street
maintenance,  prior to assumption of such  obligations  by local  governments of
$610,000,  all of which are  included  in  deferred  revenue.  The total cost to
complete  improvements as of June 30, 2000,  including the previously  mentioned
obligations,  was  estimated  to  be  approximately  $816,000  .  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: August 14, 2000                       By: /s/Donald O. McNelley
                                                ---------------------
                                                Donald O. McNelley
                                                Treasurer
                                                (Principal Financial Officer)

                                       14


<PAGE>