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

                                   FORM 10-Q/A

[X]      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934 For the quarterly period ended June 30, 1998.

[ ]      Transition Report Pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934 For the transition period from N/A to N/A .

                          Commission File Number: 0-497


                       NEW MEXICO AND ARIZONA LAND COMPANY
             (Exact name of registrant as specified in its charter)

                      ARIZONA                             43-0433090
         (State or other jurisdiction of              ( I.R.S. Employer
          incorporation or organization)              Identification No.)

       3033 N. 44TH STREET, SUITE 270, PHOENIX, ARIZONA       85018-7228
           (Address of principal executive offices)           (Zip Code)

                                  602/952-8836
              (Registrant's telephone number, including area code)

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

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

         COMMON STOCK, NO PAR VALUE                      4,617,211
                    Class                       Outstanding at July 24, 1998
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New Mexico and Arizona Land Company and Subsidiaries                 FORM 10-Q/A

CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                            UNAUDITED
                                                             JUNE 30,        December 31,
                                                               1998              1997
                                                          (As restated.
(in thousands, except share data)                          See Note 8.)
-----------------------------------------------------------------------------------------
<S>                                                       <C>                <C>    
Assets
   Properties, net                                            $44,528            $46,853
   Commercial real estate loans, net                           23,364             15,287
   Notes receivable, net                                        4,165                 93
   Investments in joint ventures                                   11                411
   Cash and cash equivalents                                    2,611              6,016
   Other                                                        1,224                851
-----------------------------------------------------------------------------------------
Total assets                                                  $75,903            $69,511
=========================================================================================

Liabilities and Shareholders' Equity
   Notes payable and lines of credit                          $16,632            $12,503
   Accounts payable and accrued liabilities                     2,714              1,646
   Deferred revenue                                             5,353              4,742
   Deferred income taxes                                        4,161              5,361
-----------------------------------------------------------------------------------------
   Total liabilities                                           28,860             24,252
-----------------------------------------------------------------------------------------
Non-controlling  interests                                      1,849              1,793
-----------------------------------------------------------------------------------------
Shareholders' equity:                                                          
   Preferred stock, no par value; 10,000,000 shares                            
      authorized; none issued                                      --                 --
   Common stock, no par value; 30,000,000 shares                               
      authorized; 6,925,636(1) and 3,847,982 shares (pre-split)                         
      issued and outstanding at June 30, 1998
      and December 31, 1997, respectively                      35,341             24,572
Retained earnings                                               9,853             18,894
-----------------------------------------------------------------------------------------
   Total shareholders' equity                                  45,194             43,466
-----------------------------------------------------------------------------------------
Total liabilities and shareholders' equity                    $75,903            $69,511
=========================================================================================
</TABLE>

See accompanying Notes to Consolidated Financial Statements.
(1) Includes the effect of a 20% stock dividend paid July 10, 1998 to
    shareholders of record June 10, 1998 and a 3 for 2 stock split payable
    January 15, 1999 to shareholders of record December 31, 1998. 


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New Mexico and Arizona Land Company and Subsidiaries                 FORM 10-Q/A

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

<TABLE>
<CAPTION>
                                                  Three months ended June 30,    Six months ended June 30,
                                                      1998           1997           1998            1997
                                                                                 (As restated.
(in thousands, except per share data)                                            See note 8.)
----------------------------------------------------------------------------------------------------------
<S>                                               <C>              <C>           <C>             <C>     

Revenue:
  Property sales                                    $  3,884       $  2,277       $  8,051       $  4,250
  Property rentals                                       745            784          1,485          1,562
  Commercial real estate lending                         991            234          1,618            487
  Investment income                                       79             76            158            116
  Other                                                   94             57            168            137
----------------------------------------------------------------------------------------------------------
                                                       5,793          3,428         11,480          6,552
----------------------------------------------------------------------------------------------------------

Expenses:
  Cost of property sales                               2,570          1,318          5,948          2,428
  Property rentals                                       251            310            489            614
  Commercial real estate lending                         145             --            261             --
  General and administrative                             673            460          1,228            860
  Interest                                               311            262            579            516
  Depreciation, depletion and amortization               152            122            316            241
----------------------------------------------------------------------------------------------------------
                                                       4,102          2,472          8,821          4,659
----------------------------------------------------------------------------------------------------------

Income Before Joint Ventures, Non-controlling
   Interests and Income Taxes                          1,691            956          2,659          1,893
Gain from joint ventures                                 447             15            452             31
Non-controlling interests                               (146)          (177)          (256)          (320)
----------------------------------------------------------------------------------------------------------

Income Before Income Taxes                             1,992            794          2,855          1,604
Income taxes                                             781            318          1,127            644
----------------------------------------------------------------------------------------------------------

Net Income                                          $  1,211       $    476       $  1,728       $    960
==========================================================================================================

Net income per Share of Common Stock(1)
     Basic                                          $   0.17       $   0.07       $   0.24       $   0.15
     Diluted                                        $   0.17       $   0.07       $   0.24       $   0.15
==========================================================================================================

Weighted Average Number of Common Shares(1)
     Basic                                             6,926          6,391          6,926          6,391
     Diluted                                           6,934          6,391          6,934          6,591
==========================================================================================================
</TABLE>

See accompanying Notes to Consolidated Financial Statements.
(1)  Includes the effect of a 10% stock dividend paid July 18, 1997 and a 20%
     stock dividend paid July 10, 1998 to shareholders of record June 10, 1998,
     and a 3 for 2 stock split payable January 15, 1999 to shareholders of
     record December 31, 1998.


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New Mexico and Arizona Land Company and Subsidiaries                 FORM 10-Q/A

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30,
<TABLE>
<CAPTION>
                                                                  1998           1997
                                                              (As restated.
(in thousands)                                                See Note 8.)
---------------------------------------------------------------------------------------
<S>                                                           <C>             <C>     
CASH FLOWS PROVIDED BY/(USED IN) OPERATING ACTIVITIES:
Net income                                                     $  1,728       $    960
Gain from sales of investment properties                           (670)        (1,102)
Non-cash items included above:
   Depreciation, depletion and amortization                         316            241
   Deferred revenue                                                (384)          (666)
   Deferred income taxes                                         (1,200)          (142)
   Gain from joint ventures                                        (452)           (31)
   Non-controlling  interests                                       256            320
Net change in:
   Receivables                                                     (148)           (85)
   Properties under development                                     589            (15)
   Other assets                                                    (373)          (172)
   Accounts payable and accrued liabilities                       1,068            266
---------------------------------------------------------------------------------------
Net cash flows provided by/(used in) operating activities           730           (426)
---------------------------------------------------------------------------------------
CASH FLOWS PROVIDED BY/(USED IN) INVESTING ACTIVITIES:
   Additions to properties                                       (2,095)        (4,003)
   Proceeds from sale of properties                               1,541          1,101
   Distributions from joint ventures                                852             22
   Proceeds from commercial real estate loans                     3,476            862
   Additions to commercial real estate loans                    (11,838)            --
---------------------------------------------------------------------------------------
Net cash flows provided by/(used in) investing activities        (8,064)        (2,018)
---------------------------------------------------------------------------------------
CASH FLOWS PROVIDED BY/(USED IN) FINANCING ACTIVITIES:
   Proceeds from debt                                             6,083            637
   Payments of debt                                              (1,954)        (1,801)
   Distributions to non-controlling partners                       (200)           (50)
---------------------------------------------------------------------------------------
Net cash flows provided by/(used in) financing activities         3,929         (1,214)
---------------------------------------------------------------------------------------
Net (decrease) in cash and cash equivalents                      (3,405)        (3,658)
---------------------------------------------------------------------------------------
Cash and cash equivalents at beginning of period                  6,016          7,142
---------------------------------------------------------------------------------------
Cash and cash equivalents at end of period                     $  2,611       $  3,484
=======================================================================================
</TABLE>

See accompanying Notes to Consolidated Financial Statements.



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New Mexico and Arizona Land Company and Subsidiaries                 FORM 10-Q/A


                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.    In the opinion of the Company, the accompanying unaudited consolidated
      financial statements contain all adjustments necessary to present fairly
      the financial position, the results of operations and cash flows for the
      periods presented. The accompanying statements do not include all
      disclosures considered necessary for a fair presentation in conformity
      with generally accepted accounting principles. Therefore, it is
      recommended that the accompanying statements be read in conjunction with
      the consolidated financial statements appearing in the Company's 1997
      annual report on Form 10-K

2.    The results of operations for the three months and six months ended June
      30, 1998 and 1997, are not necessarily comparable and may not be
      indicative of the results which may be expected for future quarters or
      future years.

3.    The Company's consolidated financial statements include those of its
      wholly-owned subsidiaries, Bridge Financial Corporation, NZ Properties,
      Inc., NZ Development Corporation, NZU Inc. and Great Vacations
      International Inc., along with joint ventures in which the Company holds a
      majority ownership.

      The receivables of Bridge Financial Corporation are shown on the
      consolidated balance sheets as Commercial real estate loans, net. The
      category Notes receivable, net on the consolidated balance sheets consists
      primarily of receivables created in connection with the sale of land. Such
      notes receivable bear interest at various rates and are secured by the
      property sold.

4.    Certain prior period amounts have been reclassified for comparative
      purposes.

5.    Net income per share computations are based on the weighted average number
      of shares outstanding of 6,926,000 (basic) and 6,934,000 (diluted) in 1998
      and 6,391,000 (basic and diluted) in 1997.

6.    On May 8, 1998 the Company declared a 20% stock dividend, which was paid
      July 10, 1998 to shareholders of record as of June 10, 1998. On November
      23, 1998 the Company declared a 3-for-2 stock split payable January 15,
      1999 to shareholders of record as of December 31, 1998. The net income per
      share and weighted average shares outstanding reported in the financial
      statements include the effect of the dividend and the split for all
      periods presented.

7.    During the six months ended June 30, 1998 the Company sold land in
      exchange for cash and $3,924,000 in notes receivable. Approximately
      $1,280,000 of the profit on these sales has been deferred.

8.    As previously reported in the Company's Form 10-Q for the quarter ended
      March 31, 1998, the Company changed its historical contractual
      relationship with the brokerage firm which sells 40-acre parcels of land
      for the Company. The Company originally


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<PAGE>   6
      determined that such change resulted in the recognition of revenue in such
      period. The Company has subsequently determined that such change did not
      result in the culmination of an earnings process and the Company has
      corrected this accounting by deferring the revenue previously recognized
      in the first quarter of 1998. The deferred revenue will be recognized in
      future periods. As a result of the restatement of the first quarter 1998
      results, net income and earnings per share (basic and diluted) for the six
      months ended June 30, 1998 have been reduced from $2,401,000 and $0.34,
      respectively, to $1,728,000 and $0.24, respectively.


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<PAGE>   7
           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

   
         As previously reported in the Company's Form 10-Q for the quarter ended
March 31, 1998, the Company changed its historical contractual relationship with
the brokerage firm which sells 40-acre parcels of land for the Company. The
Company originally determined that such change resulted in the recognition of
revenue in such period. The Company has subsequently determined that such change
did not result in the culmination of an earnings process and the Company has
corrected this accounting by deferring the revenue previously recognized in the
first quarter of 1998. The deferred revenue will be recognized in future
periods. As a result of the restatement of the first quarter 1998 results, net
income and earnings per share (basic and diluted) for the six months ended June
30, 1998 have been reduced from $2,401,000 and $0.34, respectively, to
$1,728,000 and $0.24, respectively.
    

RESULTS OF OPERATIONS

   
         For the six months ended June 30, 1998, net income was $1,728,000
($0.24 per share) compared to $960,000 ($0.15 per share) for the same period in
1997. Pre-tax earnings from property sales were up approximately $281,000 for
the six month period ended June 30, 1998 as compared to the same period in 1997.
For the same periods, pre-tax earnings from commercial real estate lending were
up approximately $870,000. For 1997, pre-tax earnings from commercial real
estate lending were generated primarily from the Company's portfolio of
receivables created in connection with the 40-acre parcel sales program. In
connection with the closing of a sale of a 108-acre parcel in Scottsdale,
Arizona in March, 1998 an additional $870,000 of pre-tax earnings from property
sales was deferred and is expected to be recognized in earnings during the year
and during next year. General and administrative expenses are higher primarily
due to increased legal and accounting costs.
    

         The managed portfolio of Bridge Financial Corporation stood at $ 65.5
million as of June 30, 1998, of which $41.5 million was participated with other
lenders and $23.4 million (net of an allowance for bad debts of $.3 million and
undisbursed loan proceeds of $.3 million) was recorded in the Company's books.
As of July 27, 1998 the managed portfolio is $53.4 million, of which $32.2
million is participated and $20.6 million (net of an allowance for bad debts of
$.3 million and undisbursed loan proceeds of $.3 million) is recorded in the
Company's books. The decrease from June 30 to July 27 is due to temporary timing
differences between the pay-off of certain loans and the finalization of
documents and conditions prior to funding new loans which are approved and
pending. This compares to a December 31, 1997 managed portfolio of $ 34.0
million, of which $17.8 million was participated and $15.3 million (net of an
allowance for bad debts of $.3 million and undisbursed loan proceeds of $.6
million) was recorded in the Company's books.

         The Company's four apartment complexes in New Mexico are in escrow and
are expected to close during the third and fourth quarters of 1998. In addition,
the Company has recently opened escrows to sell its properties at Menaul and
Broadway, Spain and Juan Tabo, Ray and McClintock, and Continental and Frontage.
Approximately 3,500 acres of land in Fremont County, Colorado are also in escrow
to be sold. The sales are scheduled to close at various times through the first
quarter of 1999. The buyers of certain of these properties may still have
exercisable rights under the sales contracts to cancel without penalty. Those
cancellation rights expire at various times prior to the close of escrow.

         On June 30, 1998 the Company closed escrow on the sale of two separate
parcels totaling approximately 4,200 acres in Fremont County, Colorado. On June
30, 1998 Airpark Associates, a joint venture in which the Company has a 50%
interest, closed escrow on the sale of the office building it owns. The property
in Flagstaff, Arizona located at Zuni and Walapai Streets, closed escrow on
April 27, 1998. On May 11, 1998 the buyer on the Cottonwood property, which was
previously reported to have been in escrow, exercised its rights under the sales
contract to cancel the agreement.

         The borrower under one of the Company's commercial real estate loans
has defaulted on various of its obligations, including the obligation to make
certain monthly payments


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<PAGE>   8
and the obligation to pay the principal amount at maturity. The Company has had
a receiver appointed by the court to operate the property, and has filed a
notice of trustee's sale in order to foreclose on the property in accordance
with the loan documents. The fair market value of the property is in excess of
the loan amount, and the Company does not expect to incur any losses with
respect to this loan.

LIQUIDITY AND CAPITAL RESOURCES

         The real estate lending business will require large amounts of capital
in order for the Company to be an effective competitor in the market. Management
estimates that during the 1998 fiscal year, approximately $80 million of capital
will be required to fund anticipated volume in the Company's managed portfolio.
The sources of this capital include internally generated cash flow, borrowing on
lines of credit and warehouse lines, and participants or other joint funding
sources. In addition, the Company will require cash for working capital, for
continuing development work on existing real estate projects and for projects
that may be acquired through tax-deferred exchanges. (See "New Business Activity
and Change of Principal Business Emphasis" in Item 7 of the Company's 1997
Annual Report on Form 10-K.)

         The Company expects to generate a substantial amount of cash from the
sale of real estate over the next 12 months. (See "Results of Operations"
above.) This cash will be re-deployed into the lending or development business.
Cash will also be generated from principal repayments on maturing loans in the
Company's existing loan portfolio. In addition, the Company now uses and intends
to continue to use participants or other joint funding sources on certain real
estate loans.

         As of June 30, 1998, the Company had a $3 million unsecured revolving
line of credit from a commercial bank, to be used for general corporate
purposes. On July 2, 1998, the Company signed a new loan agreement with the bank
which increased the $3 million line to a new maximum availability of $10
million. The line bears interest at the prime rate and expires in July, 1999. At
June 30, 1998 and July 27, 1998, the line had an outstanding balance of $3
million. The line is secured by certain real estate and loan assets of the
Company. The line is guaranteed by the Company's three major subsidiaries. This
loan contains financial covenants which require the Company to maintain a
specified minimum ratio of current assets to current liabilities; a specified
minimum excess of current assets over current liabilities; and a specified
maximum ratio of total liabilities to tangible net worth. At June 30, 1998 the
Company was in compliance with these financial covenants.

         The same commercial bank has made a construction loan to the Company to
finance development of the Grove Commons project. The construction loan is for a
one year term expiring December 31, 1998, and bears interest at the prime rate.
As of June 30, 1998 the loan had an outstanding balance of $1,108,000. As of
July 27, 1998 the loan had an outstanding balance of $1,114,000. From a
different commercial bank, one of the Albuquerque joint ventures has loan
facilities to be utilized for lot development. At June 30, 1998 the aggregate
outstanding balance under these loan facilities was $93,000. As of July 27,
1998, there was $74,000 borrowed against these lines of credit.

         In addition to the bank lines, the Company has negotiated with a large
non-bank commercial lender to provide a warehouse line of credit to finance the
Company's real estate lending activities. This secured revolving facility has
been approved by the lender and


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<PAGE>   9
is currently being documented. The line of credit permits outstanding borrowings
of up to $25 million at one time. The line bears interest at rates ranging from
LIBOR plus 250 basis points to LIBOR plus 300 basis points, will expire one year
from the date the loan documents are signed, and will be secured by certain loan
assets of the Company.

         The Company expects to negotiate other credit facilities during the
1998 fiscal year. The proceeds of any such facilities would be used to fund the
Company's real estate lending business and for general corporate purposes.

         The Company also intends to seek qualified joint venture partners to
finance large real estate development projects. The use of joint venture
partners provides a source of development capital, mitigates the Company's risk
by sharing it with another party, and gives the Company access to expertise that
it might not otherwise have for particular projects.


STOCK DIVIDEND
   

     On May 8, 1998 the Company declared a 20% stock dividend payable July 10,
1998 to shareholders of record on June 10, 1998. On November 23, 1998 the
Company declared a 3-for-2 stock split payable January 15, 1999 to shareholders
of record as of December 31, 1998. The net income per share and weighted average
shares outstanding reported in the financial statements include the effect of
the dividend and the split for all periods presented.

    


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<PAGE>   10
                           PART II - OTHER INFORMATION

There were no proceedings, changes, occurrences or other matters occurring
during the three month period ended June 30, 1998, requiring a response to Items
1 through 5.

Item 6. Exhibits and Reports on Form 8-K.

        (a) Exhibits

               Exhibit 27.1, Financial Data Schedule
               Exhibit 27.2, Restated Financial Data Schedule for 1997

        (b) No reports on Form 8-K were filed during the reporting quarter.


                                   SIGNATURES

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.

New Mexico and Arizona Land Company


/s/ Jerome L. Joseph
-------------------------------------
Controller and Treasurer
(Principal Financial Officer)


/s/ R. Randy Stolworthy
-------------------------------------
President and Chief Executive Officer
(Principal Executive Officer)


Date:   April 12, 1999
     -------------------



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