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

                           FORM 10-K

        X   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d)
       ----   OF THE SECURITIES EXCHANGE ACT OF 1934
              For the fiscal year ended December 31, 2003

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

               For the transition period from ___ to ___

                    Commission File Number 0-5556

                     CONSOLIDATED-TOMOKA LAND CO.
        (Exact name of registrant as specified in its charter)

           Florida                            59-0483700
(State or other jurisdiction of            (I.R.S. Employer
 incorporation or organization)             Identification No.)

      1530 Cornerstone Boulevard, Suite 100
      Daytona Beach, Florida                     32117
(Address of principal executive offices)       (Zip Code)

         Registrant's Telephone Number, including area code
                          (386) 274-2202

         SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF
                THE SECURITIES EXCHANGE ACT OF 1934:

                                        Name of each exchange on
     Title of each class                   which registered

 COMMON STOCK, $1 PAR VALUE             AMERICAN STOCK EXCHANGE

        SECURITIES REGISTERED UNDER SECTION 12(g) OF THE ACT:
                                NONE
                           (Title of Class)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90
days.
                        YES X           NO ___
                           ---
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy
or information statements incorporated by reference in Part III of
this Form 10-K or any amendment to this Form 10-K.  X
                                                   ---
Indicate by check mark whether the Registrant is an Accelerated Filer
(as defined in Exchange Act Rule 12b-2).  YES  X     NO
                                              ---       ---

The aggregate market value of the shares of common stock held by non-
affiliates of the Registrant at June 30, 2003, was approximately
$141,146,843.

The number of shares of the Registrant's Common Stock outstanding on
March 1, 2004 was 5,634,662.

Portions of the Proxy Statement of Registrant, which the Company
expects will be dated March 25, 2004, are incorporated by reference in
Part III of this report.


                              "Safe Harbor"

Certain statements contained in this Form 10-K (other than the
financial statements and statements of historical fact), are forward-
looking statements.  The words "believe," "estimate," "expect,"
"intend," "anticipate," "will," "could," "may," "should," "plan,"
"potential," "predict," "forecast," "project," and similar expressions
and variations thereof identify certain of such forward-looking
statements, which speak only as of the dates on which they were made.
Forward-looking statements are made based upon management's
expectations and beliefs concerning future developments and their
potential effect upon the Company.  There can be no assurance that
future developments will be in accordance with management's
expectations or that the effect of future developments on the Company
will be those anticipated by management.

The Company wishes to caution readers that the assumptions which form
the basis for forward-looking statements with respect to or that may
impact earnings for the year ended December 31, 2004, and thereafter
include many factors that are beyond the Company's ability to control
or estimate precisely.  These risks and uncertainties include, but are
not limited to, the market demand of the Company's real estate
parcels, income properties, timber and other products; the impact of
competitive real estate; changes in pricing by the Company or its
competitors; the costs and other effects of complying with
environmental and other regulatory requirements; losses due to natural
disasters; and changes in national, regional or local economic and
political conditions, such as inflation, deflation, or fluctuation in
interest rates.

While the Company periodically reassesses material trends and
uncertainties affecting its results of operations and financial
condition, the Company does not intend to review or revise any
particular forward-looking statement referenced herein in light of
future events.














                         TABLE OF CONTENTS

                              PART I


Item 1.     BUSINESS...............................................1
Item 2.     PROPERTIES.............................................6
Item 3.     LEGAL PROCEEDINGS......................................7
Item 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS....7

                              PART II

Item 5.     MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
            STOCKHOLDER MATTERS....................................7
Item 6.     SELECTED FINANCIAL DATA................................9
Item 7.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
            CONDITION AND RESULTS OF OPERATIONS....................10
Item 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
            RISK...................................................18
Item 8.     FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA. ..........18
Item 9.     CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
            ACCOUNTING AND FINANCIAL DISCLOSURES...................19
Item 9A.    CONTROLS AND PROCEDURES................................19

                              PART III

Item 10.    DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.....19
Item 11.    EXECUTIVE COMPENSATION.................................19
Item 12.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
            MANAGEMENT.............................................19
Item 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.........19
Item 14.    PRINCIPAL ACCOUNTING FEES AND SERVICES.................19


                              PART IV

Item 15.    EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON
            FORM 8-K...............................................20

Signatures.........................................................21





















                                 PART I
Item 1.  Business
- ------   --------
Consolidated-Tomoka Land Co. (the "Company") is primarily engaged
in the real estate, income properties and golf businesses through its
wholly owned subsidiaries, Indigo Group Inc., Indigo Development Inc.,
Indigo International Inc., Indigo Group Ltd., and Palms Del Mar Inc.
Real estate operations include commercial real estate, land sales and
development, residential, forestry operations and leasing properties
for oil and mineral exploration.  Income properties primarily
consists of owning properties leased on a triple-net and double-net
basis.  Golf operations consist of the operation of two golf courses,
clubhouse facility, and food and beverage activities.  These
operations are predominantly located in Volusia County in Florida,
with various income properties located throughout the State of
Florida.

The following is information regarding the Company's
business segments.  The "General, Corporate and Other" category
includes general and administrative expenses, income earned on
investment securities and other miscellaneous income and expense
items.


                                                      2003          2002         2001
                                                              (IN THOUSANDS)
                                                    ---------------------------------
                                                                    
Revenues of each segment are as follows:
 Real Estate                                        $25,496      $20,627      $ 3,352
 Income Properties                                    3,276        2,062        1,831
 Golf                                                 4,373        4,227        4,065
 General, Corporate and Other                         1,746        1,615        2,102
                                                    ---------------------------------
                                                    $34,891      $28,531      $11,350
                                                    =================================

Operating income (loss) before income tax
  for each segment is as follows:
  Real Estate                                       $22,774      $16,350      $ 1,252
  Income Properties                                   2,681        1,662        1,403
  Golf                                               (1,185)      (1,264)      (1,329)
  General, Corporate and Other                       (2,842)      (1,792)      (2,493)
                                                    ---------------------------------
                                                    $21,428      $14,956      $(1,167)
                                                    =================================

Identifiable assets of each segment are as follows:
 Real Estate                                        $18,635      $15,774      $15,171
 Income Properties                                   41,434       25,243       22,643
 Golf                                                10,026       10,410       10,769
 General, Corporate and Other                        27,811       22,899       13,634
                                                    ---------------------------------
                                                    $97,906      $74,326      $62,217
                                                    =================================




                               1

ITEM 1.  BUSINESS (CONTINUED)
- ------   -------------------
Identifiable assets by segment are those assets that are used in each
segment.  General corporate assets and those used in the Company's
other operations consist primarily of cash, investment securities,
notes receivable, and property, plant and equipment.

REAL ESTATE OPERATIONS
- ----------------------
COMMERCIAL DEVELOPMENT.  In August of 1989, the Company reached an
agreement in principle with the Ladies Professional Golf Association
("LPGA") and the City of Daytona Beach, which called for the planning
and development of the site for the national headquarters of the LPGA
along with two championship golf courses.  The mixed-use development
plan, located immediately west of Interstate 95 in Daytona Beach,
Florida, and known as LPGA International, additionally provided for a
clubhouse, resort facilities, and residential communities along with
other commercial uses.  This development is on approximately 3,000
acres owned by the Company's real estate development subsidiary,
Indigo Development Inc. ("IDI"), the City of Daytona Beach, other
developers, and individual homesite owners.  The LPGA International
development is part of a 4,500-acre tract located both east and west
of Interstate 95, which received Development of Regional Impact ("DRI")
approval in 1993.  The LPGA has successfully relocated its
headquarters to Daytona Beach and occupies facilities constructed in
1996, within the development.  The official opening of the first LPGA
International golf course, constructed by the City of Daytona Beach,
occurred in July 1994 with the second course constructed by the
Company, opening in October 1998.  The clubhouse opened for operation
in January 2001.

During 1999, the Company sold 180 acres, plus 44 developed lots,
surrounding the north golf course to Renar Development Company.  In
the third quarter of 2002, the Company closed an additional sale of
261 acres of residential land surrounding the south golf course to
Morgan Stanley-Kitson Partnership ("MSKP").  The property is expected to
be developed into several distinct communities, with lots sold to
major builders.  The Company maintains its position as master
developer of the project.

In early 1996, the Interstate 95 interchange at LPGA Boulevard, which
is the north and main entrance to the LPGA International project, was
opened for use.  At the end of 2002, the Company closed the sale of
the first corporate headquarters site, at the Company's new
Cornerstone Office Park located at the southeast quadrant of the
interchange.  Development of the office park was substantially
complete by year-end 2003, with the first office building, which
includes the Company's corporate office, opened in January 2004.

Indigo Commercial Realty Inc., a commercial real estate brokerage
company formed in 1981, is the Company's agent in the marketing and
management of commercial properties. In addition to the LPGA
development, approximately 44 acres of fully developed sites located
in the Daytona Beach area and owned by Indigo Group Inc. were
available for sale at December 31, 2003. All development and
improvement costs have been completed at these sites.


                           2

ITEM 1.  BUSINESS (CONTINUED)
- ------   -------------------
RESIDENTIAL.  Until December 1993, the Company, through Indigo Group
Ltd. ("IG LTD"),operated in residential development, home building
and sales.  At the end of 1993 IG LTD closed down the development and
building functions.  IG LTD continues to sell its remaining lot
inventory in the following communities: Riverwood Plantation, a 180-
acre community in Port Orange, Florida, with 7 lots remaining at
December 31, 2003; and Tomoka Heights, a 180-acre development adjacent
to Lake Henry in Highlands County, Florida.  There are approximately
64 developable lots remaining to be sold, including 21 fully-developed
lots.

FOREST PRODUCT SALES.  The timber lands encompass approximately
12,500 acres west of Daytona Beach.  We believe the geographic
location of the timber tract is excellent.  In addition to access by
major highways (Interstate 95, State Road 40, and International
Speedway Boulevard), the internal road system for forestry purposes
is good.  Income from sales of forest products varies considerably
from year-to-year depending on economic conditions and rainfall,
which sometimes limits access to portions of the woodlands.  In
addition, drought conditions sharply increase the potential of forest
fires, as occurred during the summer of 1998.  The wildfires which
ravaged central Florida burned approximately 9,000 acres of the
Company's timberland.  This and the sale of the approximately 11,000-
acre parcel to St. Johns River Water Management District in 1997 have
reduced the Company's potential for future income from sales of
forest products.  Expenses associated with forestry operations
consist primarily of real estate taxes, with additional expenses
including the costs of installing and maintaining roads and drainage
systems, reforestation, and wild fire suppression.

SUBSURFACE INTERESTS.  The Company owns full or fractional subsurface
oil, gas, and mineral interests in approximately 524,000 "surface"
acres of land owned by others in various parts of Florida, equivalent
to approximately 288,000 acres in terms of full interest.  The
Company leases its interests to mineral exploration firms whenever
possible.

Leases on 800 acres have reached maturity; but, in accordance with
their terms, are held by the oil companies without annual rental
payments because of producing oil wells, on which the Company
receives royalties.

The purchasers of 82,515 surface acres, in which the Company has a
one-half reserved mineral interest, are entitled to releases of
the Company's rights if such releases are required for residential
or business development.  Consideration for such releases on 71,772
of those acres would be at the rate of $2.50 per surface acre.
On other acres in Lee and Hendry Counties (where producing oil
wells exist), the Company's current policy is to grant no release
rights with respect to its reserved mineral rights.  Periodically,
a release of surface entry rights might be granted upon request of a
surface owner who requires such a release for special financing or




                           3

ITEM 1.  BUSINESS (CONTINUED)
- ------   -------------------
development purposes. In counties other than Lee and Hendry, releases
are granted for a percentage of the surface value of a parcel of
land.  At December 31, 2003, there were two producing oil wells on
the Company's interests.  Volume in 2003 was 100,098 barrels and
volume in 2002 was 115,453 barrels from three producing wells.
Production, in barrels, for prior recent years was: 2001 - 116,341,
2000 - 133,280 and 1999 - 141,973.

INCOME PROPERTIES
- -----------------
During 2000, the Company implemented a new business strategy.  This
strategy involves becoming a company, over time, with a more
predictable earnings pattern from geographically dispersed real estate
holdings.  To this end, the Company has acquired several income
properties since 2000.  Following is a summary of these properties:

                                            AREA          YEAR
LOCATION                  TENANT           (SQUARE FEET)  PURCHASED
- ----------------------    --------------    ------------  ---------
Tallahassee, Florida      Eckerd                  10,880       2000
Daytona Beach, Florida    Barnes & Noble          28,000       2001
Lakeland, Florida         Barnes & Noble          18,150       2001
Sanford, Florida          Eckerd                  11,900       2001
Palm Bay, Florida         Walgreens               13,905       2001
Clermont, Florida         Eckerd                  13,824       2002
Melbourne, Florida        Eckerd                  10,908       2003
Sebring, Florida          Eckerd                  12,174       2003
Kissimmee, Florida        Walgreens               13,905       2003
Orlando, Florida          Walgreens               15,120       2003
Sanford, Florida          Eckerd                  13,813       2003
- ----------------------                      ------------
11 Properties                                    162,579
======================                      ============

All properties are leased on a long-term, triple-net lease basis,
with the exception of the Walgreens' sites in Palm Bay, Kissimmee, and
Orlando, Florida, which are leased on a double-net lease basis.

Other rental property is limited to a 12-acre auto dealership site,
which is located in Daytona Beach, Florida, along with ground leases
for billboards, a communication tower site, and a hunting lease
covering 8,300 acres.  A portion of the auto dealership site, which
was purchased in 2000, was sold in 2001, for a profit approximating
$675,000, with the remaining property under an operating lease
arrangement.  The Company also owned a 17,000 square-foot office
building in Daytona Beach, Florida, which was under a lease-purchase
agreement.  During the fourth quarter of 2003, the ownership was
transferred.

GOLF OPERATIONS
- ---------------
On September 1, 1997, responsibility for the operations of the LPGA
International golf courses was transferred from the City of Daytona
Beach to a wholly owned subsidiary of the Company.  The agreement with
the City of Daytona Beach provided for the second golf course and a
clubhouse to be constructed by the Company in return for a long-term
lease from the City on both golf courses.
                           4

ITEM 1.  BUSINESS (CONTINUED)
- ------   -------------------
The second golf course was constructed by the Company and opened for
play in October 1998.  The first phase of the clubhouse, which
consists primarily of the cart barn, was completed in 1999.  Construction
of the final phase of the clubhouse, consisting of a 17,000 square-foot
facility including a pro shop, locker rooms, informal dining and banquet
rooms, and a swimming pool, was completed in December 2000 and opened for
business in January 2001.


GENERAL, CORPORATE AND OTHER OPERATIONS
- ---------------------------------------
Land development beyond that discussed at "Business - Real Estate
Operations" will necessarily depend upon the long-range economic
and population growth of Florida and may be significantly affected
by fluctuations in economic conditions, prices of Florida real
estate, and the amount of resources available to the Company for
development.

CITRUS
- ------
The Company, under the name Lake Placid Groves, owned and operated
approximately 3,900 acres of orange and grapefruit groves located
primarily on two large parcels in Highlands County, Florida. On April
7, 1999, the Company's citrus business, Lake Placid Groves, was sold.
The Company harvested and sold both fresh and to-be-processed citrus
from its groves.  In connection with the groves, the Company owned
and operated an efficient fresh fruit citrus packing plant, in which
the portion of the crop which was sold as fresh fruit was packed.
Fresh fruit sales were made by the Company to wholesale produce
distributors and retail grocery chains primarily in the Eastern and
Midwestern regions of the United States and Canada.   In an effort to
achieve optimum utilization of the packing facility, the Company also
handled the fruit of other growers in the area.

That portion of the Company's citrus crop, which was not sold as
fresh fruit, was processed by Citrus World Incorporated ("Citrus
World"), an agricultural cooperative, under a participating marketing
pool agreement.  Citrus World, one of the larger processors of citrus
products in the United States, pooled its own fruit with the fruit
received from the Company and other citrus growers, processed the
pooled fruit, and sold the products produced therefrom.  Each
participant in the pool, including Citrus World, shared ratably in
the proceeds from the sales of these products, net of Citrus World's
actual processing and marketing costs, plus a per-unit handling fee.
Citrus World made periodic payments to all participants on their pro-
rata share of net sales proceeds and made final payment after all the
products in the pool had been sold.

EMPLOYEES
- ---------
The Company has sixteen employees and considers its employee relations
to be satisfactory.





                           5
ITEM 1.  BUSINESS (CONTINUED)
- ------   -------------------
AVAILABLE INFORMATION
- ---------------------
The Company's website is www.consolidatedtomoka.com.  The Company
makes available on this website, free of charge, its annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K
and amendments to those reports as soon as reasonably practicable
after the Company electronically files or furnishes such materials to
the SEC, and has done so since March 2003, the date that the
Company's website became active.  The Company will also provide paper
copies of these filings free of charge upon a specific request in
writing for such filing to the Company's Secretary, P.O. Box 10809,
Daytona Beach, Florida 32120-0809.

ITEM 2.  PROPERTIES
- ------   ----------
Land holdings of the Company and its affiliates, all of which are
located in Florida, include:  approximately 14,100 acres (including
commercial/retail sites) in the Daytona Beach area of Volusia County;
approximately 60 acres in Highlands County, adjacent to Lake Henry;
retail buildings located on 19 acres throughout Florida; and full or
fractional subsurface oil, gas, and mineral interests in approximately
524,000 "surface acres" in 20 Florida counties.  Approximately 3,000
acres of the lands located in Volusia County are encumbered under a
mortgage.  The conversion and subsequent utilization of these assets
provides the base of the Company's operations.

The Volusia County holdings include approximately 13,200 acres within
the city limits of Daytona Beach and small acreages in the Cities of
Ormond Beach and Port Orange.  During 2003, the Company acquired 946
acres of land, which will be used for wetlands mitigation.  Of the
12,800 acres inside the city limits of Daytona Beach, approximately
3,000 acres have received development approval by governmental
agencies.  The 3,000 acres plus approximately 730 acres owned by the
City of Daytona Beach, 15 acres owned by Indigo Community Development
District, and 690 acres sold to others for development are the site of
a long-term, mixed-use development which includes "LPGA
International."  LPGA International is made up of the national
headquarters of the Ladies Professional Golf Association along with
two "Signature" golf courses and a residential community, a clubhouse,
and a maintenance facility, and main entrance roads to serve the LPGA
community. Construction of homes around the first golf course, on 70
acres of land sold to a residential developer, began in 1995 with the
first residences completed in early 1996.  In 1999, an additional 180
acres and 44 developed lots in LPGA International were sold to Renar
Development Company, with 261 acres sold to MSKP in 2002.  The Company
continues as master developer.  The lands not currently being developed,
including those on which development approvals have been received, are
involved in an active forestry operation.  Except for a 12-acre parcel
at the Interstate 95 and Taylor Road interchange in the Port Orange area
south of Daytona Beach, the tract straddles Interstate 95 for 6-1/2 miles
between International Speedway Boulevard(U. S. Highway 92) and State Road
40, with approximately 12,000 acres west and 2,100 acres east of the
interstate. Subsidiaries of the Company are holders of the developed
Volusia County properties and are involved in the development of
additional lands zoned for residential, commercial, or industrial
purposes.
                            6

ITEM 2.  PROPERTIES (CONTINUED)
- ------   ---------- -----------

In Highlands County, located in south central Florida, along U.S.
Highway 27, the Company sold its citrus operation of approximately
3,900 acres in 1999. The remaining Highlands County lands, located
adjacent to Lake Henry, Florida, which is about 75 miles east of
Sarasota and 150 miles northwest of Miami, total approximately 60
acres of industrial lands and 64 residential lots, of which 21 are
fully developed.

The Company's oil, gas, and mineral interests, which are equivalent
to full rights on 288,000 acres, were acquired by retaining
subsurface rights when acreage was sold many years ago.

From October 1990 until December 1993, IG LTD centered its operations
on residential community development, home construction, and sales.
In 1993, IG LTD discontinued its home building and sales activities
under lot marketing and sales arrangements.  Residential lots owned
by IG LTD at December 31, 2003 are: 7 lots in Riverwood Plantation, a
community of 180 acres in Port Orange, Florida; 21 developed and 43
developable lots at the 180-acre Tomoka Heights development in
Highlands County, Florida. IG LTD is developing this community,
located adjacent to Lake Henry, and consisting of single-family and
duplex units.

The Company also owns and operates properties for leasing.  These
properties are discussed in "Business-Income Properties."

ITEM 3.  LEGAL PROCEEDINGS
- ------   -----------------
There are no material pending legal proceedings to which the Company
or its subsidiaries are a party.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- ------   ---------------------------------------------------
No matters were submitted to a vote of security holders during the
fourth quarter of the year ended December 31, 2003.

                               PART II

ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
         STOCKHOLDER MATTERS
- ------   ----------------------------------------------------

                  COMMON STOCK PRICES AND DIVIDENDS

The Company's common stock trades on the American Stock Exchange
("AMEX") under the symbol CTO.  The Company has paid dividends on a
continuous basis since 1976, the year in which its initial dividends
were paid.  The following table summarizes aggregate annual dividends
paid  over the two years ended December 31, 2003:

                            2003   $.22
                            2002   $.20



                          7


ITEM 5.  MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED
         STOCKHOLDER MATTERS (CONTINUED)
- ------   ----------------------------------------------------
Indicated below are high and low sales prices for the quarters of the
last two fiscal years.  All quotations represent actual transactions.

                        2003                          2002
                   ---------------               -----------------
            High      Low                  High       Low
          ---------------               -----------------
                                                
                   $         $                    $          $
First Quarter      21.05     18.90                21.50      19.50
Second Quarter     26.32     20.50                22.90      19.86
Third Quarter      32.00     23.55                20.25      14.65
Fourth Quarter     33.00     29.03                19.25      17.49


Approximate number of shareholders of record as of February 3, 2004
(without regard to shares held in nominee or street name): 1,149.

There have been no sales of unregistered securities within the past
three years.




































                          8

ITEM 6.  SELECTED FINANCIAL DATA
- -------  -----------------------
The following selected financial data should be read in conjunction
with the Company's Consolidated Financial Statements and Notes along
with "Management's Discussion and Analysis of Financial Condition and
Results of Operations" included in this report.

                                Five-Year Financial Highlights
                           (In thousands except per share amounts)

                                              2003    2002    2001     2000     1999
                                     ---------------------------------------
                                                                
                                             $       $        $       $        $
Summary of Operations:
  Revenues:
   Real Estate                               33,145  26,916   9,248   19,860   17,130
   Profit on Sales of
    Other Real Estate Interest                  632     151      57    1,379    2,115
   Interest and Other Income                  1,114   1,464   2,045    1,987    1,854
                                             ------  ------  ------   ------   ------
   TOTAL                                     34,891  28,531  11,350   23,226   21,099
                                             ------  ------  ------   ------   ------
Operating Costs and Expenses                  8,875  10,168   7,923    8,045    8,600
General and Administrative Expenses           4,588   3,407   4,594    3,365    2,879
Income Taxes                                  8,234   5,670  (  531)   2,956    3,261
                                             ------  ------  ------   ------   ------
Income (Loss) From Continuing Operations     13,194   9,286  (  636)   8,860    6,359
Income from Discontinued Operations
  (Net of Tax)                                   --      --      --       --    9,424
                                             ------  ------  -------  ------   ------
Net Income (Loss)                            13,194   9,286  (  636)   8,860   15,783
                                             ======  ======  =======  ======   ======
Basic and Diluted Earnings per Share:
  Income (Loss) from Continuing Operations     2.35    1.65  (  .11)    1.51     1.00
  Net Income (Loss)                            2.35    1.65  (  .11)    1.51     2.48

Dividends Paid Per Share                       0.22    0.20    0.20     0.20     0.35

Summary of Financial Position:
  Total Assets                               97,906  74,326  62,217   63,354   63,420
  Shareholders' Equity                       65,658  52,858  45,383   46,555   48,034
  Long-Term Debt                              8,717   8,932   1,335    9,401    9,854















                                 9


Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- -------  ------------------------------------------------------------
         AND RESULTS OF OPERATIONS
         -------------------------
OPERATIONS OVERVIEW
- -------------------
The Company is primarily engaged in real estate land sales and
development, investment in income property, and golf course
operations.  The Company is owner of approximately 14,200 acres in
Florida, of which approximately 12,800 are located within the City of
Daytona Beach and form a substantial portion of the western boundary
of Daytona Beach.  The Company lands are well located in the growing
central Florida Interstate 4 corridor providing an excellent
opportunity for reasonably stable land sales in the near term future
and following years.

With its substantial land holdings in Daytona Beach, the Company has
parcels available for the entire spectrum of real estate uses.  Along
with land sales, the Company selectively develops parcels primarily
for commercial uses.  Sales and development activity on and around
Company owned lands have been strong in the last two years, 2002 and
2003.

The development, by the Company, of the Cornerstone Office Park at the
Interstate 95 interchange at LPGA Boulevard was substantially complete
by year-end 2003, with the first office building opened in January
2004.  Construction and development of a 92,000 square-foot
surgical and imaging facility on LPGA Boulevard, on land sold by the
Company in 2002, is underway with opening planned in the first half of
2004. During the fourth quarter of 2003, the Company sold 210 acres to
Halifax Medical Center for the future relocation of its hospital and
related medical facilities.  Also in the fourth quarter, a 25-acre
sale for the second phase of the Daytona Beach Auto Mall was
completed, along with LPGA Boulevard retail sites sold for
a Wendy's restaurant and a CVS Pharmacy.  These transactions, all
along the Interstate 95 and LPGA Boulevard corridor, compliment other
new developments now under construction in the area including a new
middle school, Grand Preserve residential community and a professional
office park adjacent to the surgical and imaging facility.

Sales closings and development activities tend to spur additional
interest by prospective buyers and developers.  Interest in Company
owned property remains strong with a backlog of contracts in place for
closing in 2004.  As closings occur, management intends to reinvest
proceeds into income properties.  As the inventory of these income
properties grows management will look to diversify through other real
estate investments as opportunities arise.

In the year 2000, the Company initiated a strategy of investing in
income properties utilizing the proceeds of land sales qualifying for
income tax deferral through like-kind exchange treatment for tax
purposes.  The inventory of net lease income properties is anticipated
to reach $60 million during the first half of 2004.  The strong
commercial land sales volume in 2002 and 2003 enabled the Company to
invest $16.8 million in income properties during 2003, with an
additional $19.3 million of cash held by a qualified intermediary for
investment in additional properties.  At December 31, 2003, the
Company owned eleven double or triple-net-lease single tenant properties
throughout the State of Florida at a cost approximating $38 million,
                           10

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- -------  ------------------------------------------------------------
         AND RESULTS OF OPERATIONS(CONTINUED)
         ------------------------------------
with an additional five properties either under contract or in
negotiation for purchase for approximately $22 million.  The five
contracts, all fully executed subsequent to December 31, 2003, are
scheduled to close in late first quarter or early second quarter 2004,
and include two properties in the Atlanta, Georgia area.  These two
properties represent the first investment by the Company outside the
State of Florida.  See "Properties" for a schedule of properties owned.

It is currently the Company's intention to continue its strategy of
reinvestment of qualifying income tax deferred land sales proceeds
into net lease properties.  When the $60 million investment base is
reached, lease income of about $5 million annually will be generated.
Additional net lease income property is expected to decrease earnings
volatility in future years and add to overall financial performance. This
strategic position will provide the opportunity to consider other forms
of real estate investment to diversify and enhance potential returns.

Golf operations consist of the operation of the two golf courses,
clubhouse facility, and food and beverage activities within the LPGA
International mixed-use residential community on the west side of
Interstate 95, south and east of LPGA Boulevard.  The Champions course
was designed by Reese Jones and the Legends course was designed by
Arthur Hills.

Golf revenue and profitability are up slightly over the last two years
despite a general (10 to 15%) decline in Florida golf course revenue and
profits.  Demand for golf had been depressed due to overbuilding of
golf courses and a general economic downturn which began to improve in
late 2003.  Improvement in golf course operation is a function of
increased tourist demand, reduction in new golf course construction
experienced in the last three years, and increased residential growth
in LPGA International, and the adjoining Company land to the west and
northwest comprising about 6,000 acres of future residential
communities.  LPGA International and nearby developments are currently
planned to contain about 3,000 additional dwelling units.

Food and banquet service revenues at the clubhouse, which opened in
January 2001, have improved over the three-year period, although
revenues only increased about 3% for 2003.  Significant improvement
over time is a function of the same factors impacting the golf
courses: increased demand and new home construction.  The Company's
efforts to maintain and improve revenues and profitability have
focused on providing quality products and services while maintaining
consistent and stringent cost control for golf course and food service
activities.

RISKS AND COMPETITION
- ---------------------
The real estate business is subject to a number of economic factors
including the impact of rising and falling interest rates which affect
the ability of purchasers to obtain financing and population growth,
which impacts supply and demand for new homes, as well as goods and
services; and hence land to meet those needs.  Also impacting the
ability to sell land are the availability of roads and utilities,
environmental impacts, density limitations, urban growth boundaries,
                          11

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- -------  ------------------------------------------------------------
         AND RESULTS OF OPERATIONS(CONTINUED)
         ------------------------------------
and other factors associated with national, regional or local economic
and political conditions.  All of these factors have an impact on the
Company's three lines of business and their success.  Most directly
impacted is the real estate sales and development business currently
centered in the Daytona Beach market.  Pricing levels and changes by
the Company and its immediate competitors can affect sales, although
the Company generally enjoys a competitive edge due to low costs
associated with long time land ownership and a significant ownership
position in the immediate market.

SUMMARY OF 2003 OPERATING RESULTS
- ---------------------------------

During 2003, the Company generated earnings of $13,194,395, equivalent
to $2.35 per share.  These profits represent a 42% increase over
2002's net income totaling $9,285,841, equivalent to $1.65 per share.
The favorable results were generated on a 40% increase in profits from
commercial land sales coupled with a 61% improvement in bottom line
results from income properties.

The Company also uses Earnings Before Depreciation, Amortization and
Deferred Taxes ("EBDDT") as a performance measure.  The Company's
strategy of investing in income properties through the deferred tax
like-kind exchange process produces significant amounts of
depreciation and deferred taxes.

The following is the calculation of EBDDT.


                                                      Year Ended
                                              --------------------------
                                              December 31,   December 31,
                                                 2003            2002
                                              -----------     ----------
                                                       
              Net Income                      $13,194,395    $ 9,285,841
               Add Back:
               Depreciation & Amortization      1,120,153        806,842
               Deferred Taxes                   8,500,771      5,970,949
                                               ----------     ----------
                                              $22,815,319    $16,063,632
                                               ==========     ==========
           

EBDDT is not a measure of operating results or cash flows from
operating activities as defined by accounting principles generally
accepted in the United States of America.  Further, EBDDT is not
necessarily indicative of cash availability to fund cash needs and
should not be considered as an alternative to cash flow as a measure
of liquidity.  The Company believes, however, that EBDDT provides
relevant information about operations and is useful, along with net
income, for an understanding of the Company's operating results.

EBDDT is calculated by adding depreciation, amortization and deferred
income taxes to net income as they represent non-cash charges.
                           12

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- -------  ------------------------------------------------------------
         AND RESULTS OF OPERATIONS(CONTINUED)
         ------------------------------------

When compared to prior year, EBDDT improved 42% for the twelve months
of 2003.  This increase was not only due to the improved operating
results, but also due to the increased depreciation and amortization
add back and most notably due to the significant deferral of income
taxes.  The change in deferred taxes was primarily the result of
deferring gains realized on the sale of land during the year through
the like-kind exchange process for income tax purposes, with increased
depreciation due to the purchase of new properties during 2003 and
late 2002.

RESULTS OF OPERATIONS
2003 Compared to 2002

Real Estate Operations
- ----------------------
Real Estate Sales
- -----------------
Profits from real estate sales totaled $22,774,040 for the year ended
December 31, 2003.  These profits represented a 39% increase over
2003's profits from real estate sales amounting to $16,349,512.  During
2003, 653 acres of land were sold compared to 621 acres of land
sold during 2002's calendar year.  Prices for property vary from
property to property based on location, use and other factors.  The
average price increase per acre was the primary cause of a 24%
increase in land sales revenues to $25,495,664 for 2003.  During 2003,
the average sales price per acre of land sold increased to $39,091
from $31,390 in 2002.

Income Properties
- -----------------
For the twelve months of 2003 profits from income properties totaled
$2,681,542 on revenues amounting to $3,276,062.  These profits and
revenues represented increases of 61% and 59%, respectively, when
compared to 2002 results. These significantly improved results were
the result of the addition of five new income properties during 2003
and one new property during the fourth quarter of 2002.  Income
properties costs and expenses increased 49% to $594,520 for 2003 due
to higher depreciation on the addition of the new properties.

Golf Operations
- ---------------
Bottom line results from golf operations improved 6% to a loss of
$1,185,364 for calendar year 2003.  This loss compared to 2002's loss
of $1,263,847. Revenues from golf operations gained 3% with both golf
activities and food and beverage activities contributing to the
increase.  The average rate per round played increased 7% for the
year, while the number of rounds played declined 5%.  Golf costs and
expenses rose 1% when compared to the prior year. This increase was
attributed to higher food and beverage volume along with increased
insurance and land lease expenses.




                           13

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- -------  ------------------------------------------------------------
         AND RESULTS OF OPERATIONS(CONTINUED)
         ------------------------------------

General, Corporate and Other
- ----------------------------
The Company recognized $631,875 from the release of subsurface rights
on 8,909 acres during 2003.  This compared to profits on the sale of
other real estate interest totaling $150,865 during 2002's calendar
year on the sale of 7 acres of land and the release of subsurface
rights on two acres of property.

Interest and other income declined 24% to $1,114,074 in 2003 compared
to $1,463,820 earned for the twelve months of 2002.  Lower earnings
were the result of lower investment interest on decreased investment
balances during the year and decreased interest on mortgage notes
receivable.

Compensation expenses associated with stock options and stock
appreciation rights, due to a 70% increase in the Company's stock
price, were the principal cause of the 35% increase in general and
administrative expenses in 2003 when compared to 2002.

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

The Company's balance sheet reflects cash and restricted cash
totaling  $20,385,308 at December 31, 2003, an increase of $7,025,805
over the amounts held at December 31, 2002.  The increase in funds was
primarily generated from the sale of land and other operating
activities.  Of these funds on hand $19,359,098 is held by a qualified
intermediary to complete the acquisition of income properties through
the like-kind exchange process.  During 2003, the Company invested
$16,915,007 in income properties and other property, plant and
equipment ($1,325,229 was allocated to intangible assets to reflect
the value of the leases in place).  In addition to the funds invested
in  property, plant and equipment approximately $4,600,000 was
expended on development activities, including the site development of
the Cornerstone Office Park and construction of roads on Company owned
lands.  Funds from development activities are shown on the statement
of cash flow as an operating activity as the cost is expected to be
recovered from land sales in the near term.

At December 31, 2003, the Company had total debt borrowings of
$10,129,951, including $1,209,085 outstanding on a $10,000,000
unsecured revolving line of credit and $7,720,866 on a 10-year term
mortgage loan.  The line of credit has an additional $2,576,942
capacity reserved against it for letters of credit outstanding which
guarantee development projects in process. The term loan is secured by
3,000 acres of the Company's most western lands.

Capital expenditures projected for 2004 approximate $25,400,000.
These expenditures include $22,000,000 for five income properties
currently under contract and expected to close in the first half
of 2004.  In addition to the income properties, approximately
$3,000,000 is planned for development activities including the
continued construction of roads on Company owned lands. Capital to

                           14
Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- -------  ------------------------------------------------------------
         AND RESULTS OF OPERATIONS (CONTINUED)
         ------------------------------------

fund these planned expenditures will be provided by available cash and
investment securities, as they mature, operating activities, and
current financing sources in place.  In addition to these sources, the
Company has the ability to borrow against its existing income
properties on a non-recourse basis as they are free of debt to this
date.  As additional funds become available through qualified sales,
the Company expects to invest in additional income properties.

Contractual Obligations
- -----------------------
As of December 31, 2003, the Company had the following contractual
obligations:


                                    Less                             More
                                           Than 1     1-3        3-5        Than 5
Contractual Obligations        Total       Year       Years      Years      Years
- -----------------------      ----------  ---------  ---------  ---------  ----------
                                                           
Long-Term Debt              $10,129,951 $1,412,767 $1,655,664   $525,665  $6,535,855
Operating Lease               8,279,719    429,109    793,276    726,234   6,331,100
Income Properties
 Purchase Contracts           7,858,015  7,858,015         --         --          --
                             ----------  ---------  ---------  ---------  ----------
 Total                      $26,267,685 $9,699,891 $2,448,940 $1,251,899 $12,866,955
                             ==========  =========  =========  =========  ==========

Since December 31, 2003, the Company has entered into contracts totaling
$13,988,000 for the purchase of income properties.

Critical Accounting Policies
- ----------------------------
The profit on sales of real estate is accounted for in accordance with
the provisions of SFAS No. 66 "Accounting for Sales of Real Estate."
The Company recognizes revenue from the sale of real estate at the
time the sale is consummated unless the property is sold on a deferred
payment plan and the initial payment does not meet criteria
established under SFAS No. 66, or the Company retains some form of
continuing involvement with the property.  Income of $1,131,135 was
deferred for the year ended December 31, 2003, as the initial payment
did not meet the criteria established under SFAS No. 66.  No income
was deferred for the  years ended December 31, 2002 and December 31,
2001 as sales met the established criteria.

In accordance with SFAS No. 144 "Accounting for the Impairment or
Disposal of Long-Lived Assets," the Company has reviewed the
recoverability of long-lived assets, including real estate held for
development and sale and property, plant and equipment for impairment
whenever events or changes in circumstances indicate that the carrying
amount of an asset may or may not be recoverable.  Real estate held
for development and sale is evaluated for impairment by estimating
sales prices less costs to sell.  Impairment on income properties and
other property, plant, and equipment is measured using an undiscounted
cash flow approach. There has been no material impairment of long-
lived assets reflected in the consolidated financial statements.

                          15
Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- -------  ------------------------------------------------------------
         AND RESULTS OF OPERATIONS (CONTINUED)
         ------------------------------------

At the time the Company's debt was refinanced, the Company entered
into an interest rate swap agreement.  This swap arrangement changes
the variable-rate cash flow exposure on the debt obligations to fixed
cash flows so that the Company can manage fluctuations in cash flows
resulting from interest rate risk.  This swap arrangement essentially
creates the equivalent of fixed-rate debt.  The above referenced
transaction is accounted for under SFAS No. 133 "Accounting for
Derivative Instruments and Certain Hedging Activities" and SFAS No.
138 "Accounting for Certain Derivative Instruments and Certain Hedging
Activity, an Amendment of SFAS No. 133."  The accounting requires the
derivative to be recognized on the balance sheet at its fair value and
the changes in fair value to be accounted for as other comprehensive
income or loss.  The Company measures the ineffectiveness of the
interest rate swap derivative by comparing the present value of the
cumulative change in the expected future cash flows on the variable
leg of the swap with the present value of the cumulative change in the
expected future interest cash flows on the floating rate liability.
This measure resulted in no ineffectiveness for the two years ended
December 31, 2003.  A liability in the amount of $992,580 and
$1,245,626 at December 31, 2003 and 2002 has been established on the
Company's balance sheet.  The change in fair value, net of applicable
taxes, in the amount of $609,694 and $765,127 at December 31, 2003 and
2002, respectively, has been recorded as accumulated other
comprehensive loss, a component of shareholders' equity.

RESULTS OF OPERATIONS
2002 Compared to 2001

Real Estate Operations
- ----------------------
Real Estate Sales
- -----------------
The sale of 621 acres of commercial land during the twelve months of
2002 produced profits approximating $16,350,000. These results
represented a substantial improvement over 2001's calendar year
results when profits of $1,250,000 were realized on the sale of 82 acres
of property.  The average sales price per acre of land sold increased to
$31,390 per acre in 2002 from $29,378 per acre in 2001.

Forestry operations produced a loss of $78,000 in 2002 compared to a
loss of $12,000 in the prior year.  Both years produced nominal
revenues on limited harvesting due to depressed prices along with
damage sustained from the 1998 fires, which burned approximately
9,000 acres of timber on the Company's lands.

Golf Operations
- ---------------
Revenues from golf operations rose 4% in 2002 to $4,227,000.  This
gain in revenues was primarily achieved on a 22% increase in revenues
realized from food and beverage operations increased activity.




                         16

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- -------  ------------------------------------------------------------
         AND RESULTS OF OPERATIONS (CONTINUED)
         ------------------------------------

This increase was somewhat offset by a 2% decrease in revenues from
golf course operations.  The decrease from golf occurred on a 12%
decline in number of rounds played, although the average rate per
round increased 10%.  Operating expenses increased 2% for the twelve-
month period when compared to the prior year.  The rise in expenses,
to $5,490,000, was attributed to additional costs associated with the
increased food and beverage activity. Overall golf operations posted a
loss of $1,264,000 in 2002, which represented a 5% improvement over
the $1,329,000 loss recorded in 2001.

Income Properties
- -----------------
For the twelve months of 2002 profits from income properties totaled
$1,662,000.  These profits represented an 18% increase over the
profits of $1,403,000 generated in 2001.  Revenues rose 13% to
$2,063,000 in 2002.  Revenues from income properties posted in 2001
totaled $1,831,000.  The higher revenues and profits were
predominantly due to the acquisition of new properties during 2001 and
2002.  Four properties were purchased throughout the year in 2001 with
one new property added in 2002.  Somewhat offsetting these improved
results was lower rental income due to the sale of a portion of the
auto dealership site located in Daytona Beach, Florida.

General, Corporate and Other
- ---------------------------
Profits on the sale of other real estate interests totaled $150,865
during 2002.  This profit was realized on the sale of 7 acres of
property and the release of 2 acres of subsurface interest rights.
The sale of 1 acre of property and the release of subsurface
interests on 34 acres produced $56,607 for the year ended December 31,
2001.

Interest and other income declined 32% to $1,463,820 in 2002, from
$2,044,825 one year earlier.  Interest and other income for 2001
included $675,000 realized on the sale of a portion of the auto
dealership site in Daytona Beach, Florida.

General and administrative expenses decreased 26% in 2002 when
compared to 2001.  This decrease was primarily the result of charges
in 2001 amounting to $1,256,695 from the exercise of stock options,
along with an increase in expense from stock appreciation rights, due
to the rise in the Company's stock price.

Net Income and Earnings Before Depreciation and Deferred Taxes
- --------------------------------------------------------------
Net Income of $9,285,841, equivalent to $1.65 per share, for the year
ended December 31, 2002 represented a significant improvement over the
net loss of $635,896 posted in 2001.  This turnaround was primarily
due to the substantial improvement in profits from land sales.  Also
contributing to the favorable results were increased profits from
income properties due to the increased rental property inventory in
place and decreased general and administrative expenses.


                          17

Item 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- -------  ------------------------------------------------------------
         AND RESULTS OF OPERATIONS (CONTINUED)
         ------------------------------------

Following is the calculation of EBDDT:


                                                          Year Ended
                                                   -----------------------------
                                                   December 31,      December 31,
                                                        2002             2001
                                                   -----------------------------
                                                                
Net Income                                         $ 9,285,841        $( 635,896)
   Add Back:
    Depreciation                                       806,842           739,007
    Deferred Taxes                                   5,970,949           701,341
                                                    ----------         ---------
Earnings Before Depreciation and Deferred Taxes    $16,063,632        $  804,452
                                                    ==========         =========

EBDDT improved notably for the calendar year 2002, not only due to the
improved operating results, but also due to a significant change in
deferred taxes.  The change in deferred taxes was predominantly the
result of deferring gains on land sales closed during the year for
income tax purposes through the like-kind exchange process along with
the payout and deduction of some deferred compensation expenses during
the year.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
- -------  ---------------------------------------------------------
The principal market risk (i.e., the risk of loss arising from adverse
changes in market rates and prices) to which the Company is exposed is
interest rates. The objective of the Company's asset management
activities is to provide an adequate level of liquidity to fund
operations and capital expansion, while minimizing market risk. The
Company utilizes overnight sweep accounts and short-term investments to
minimize the interest rate risk. The Company does not actively invest or
trade in equity securities.  The Company does not believe that its
interest rate risk related to cash equivalents and short-term investments
is material due to the nature of the investments.

The Company manages its debt, considering investment opportunities and
risk, tax consequences and overall financial strategies.  The Company
is primarily exposed to interest rate risk on its $8,000,000 long-term
mortgage.  The borrowing bears a variable rate of interest based on
market rates.  Management's objective is to limit the impact of interest
rate changes on earnings and cash flows and to lower the
overall borrowing costs.  To achieve this objective the Company
entered into an interest rate swap agreement during the second quarter
of 2002.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
- ------   -------------------------------------------
The Company's Consolidated Financial Statements appear beginning on
page F-1 of this report.  See Item 15 of this report.


                         18
ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
- ------   AND FINANCIAL DISCLOSURES
         ----------------------------------------------------------
There were no disagreements with accountants on accounting and
financial disclosures.

ITEM 9A. CONTROLS AND PROCEDURES
- -------  -----------------------
As of the end of the period covered by this report, an evaluation was
carried out under the supervision and with the participation of the
Company's management, including the Chief Executive Officer ("CEO")
and Chief Financial Officer ("CFO"), of the effectiveness of the
Company's disclosure controls and procedures (as defined in Rules 13a-
15(e) or 15d-15(e)).  Based on that evaluation, the CEO and CFO have
concluded that the Company's disclosure controls and procedures are
effective to ensure that information required to be disclosed by the
Company in reports that it files or submits under the Securities and
Exchange Act of 1934 is recorded, processed, summarized and reported
within the time periods specified in Securities and Exchange
Commission rules and forms. There were no changes in the Company's
internal controls over financial reporting (as defined in Rules 13a-
15(f) or 15d-15(f)) during the fourth fiscal quarter covered by this
report that have materially effected, or are reasonably likely to
materially effect, the Company's internal control over financial
reporting.

                              PART III

The information required by Items 10, 11, 12, 13, and 14 is incorporated
herein by reference to the Company's 2004 annual meeting proxy
statement pursuant to Instruction G to Form 10-K.  On March 25, 2004, the
Company anticipates filing with the Commission, pursuant to Regulation
14A under the Securities Exchange Act of 1934, its definitive proxy
statement to be used in connection with its 2004 annual meeting of
shareholders at which directors will be elected for the ensuing year.

EXECUTIVE OFFICERS OF THE REGISTRANT
- ------------------------------------
The executive officers of the Company, their ages at January 31, 2004,
their business experience during the past five years, and the year
first elected as an executive officer of the Company are as follows:

   William H. McMunn, 57, president of the Company since January 2000
    and chief executive officer since April 2001; chief operating
    officer of the Company from January 2000 to April 2001; president,
    Indigo Development Inc., a subsidiary of the Company, since
    December 1990.

   Bruce W. Teeters, 58, senior vice president-finance and treasurer,
    since January 1988.

   Robert F. Apgar, 56, senior vice president-general counsel since
    January 2003; assistant corporate secretary, since February 2002;
    and vice president-general counsel from December 1990 to January
    2003.

All of the above are elected annually as provided in the By-laws.


                          19
                               PART IV

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM
- -------   8-K
          ------------------------------------------------------------
1.  Financial Statements
    --------------------
    The following financial statements are filed as part of this
    report:

                                                           Page No.
                                                       --------------
    Independent Auditors' Reports                            F-2

    Consolidated Balance Sheets as of December 31,
     2003 and 2002                                           F-3

    Consolidated Statements of Income for the
     three years ended December 31, 2003                     F-4

    Consolidated Statements of Shareholders' Equity
     for the three years ended December 31, 2003             F-5

    Consolidated Statements of Cash Flows for the three
     years ended December 31, 2003                           F-6

    Notes to Consolidated Financial Statements               F-7

2.  Financial Statement Schedules
    -----------------------------
    Included in Part IV on Form 10-K:

            Schedule III - Real Estate and Accumulated
                           Depreciation on page 25 of
                           Form 10-K
            Schedule IV -  Mortgage Loans on Real Estate
                           on page 26 of Form 10-K

     Other Schedules are omitted because of the absence of conditions
     under which they are required, materiality or because the
     required information is given in the financial statements or
     notes thereof.

3.   Exhibits
     --------
     See Index to Exhibits on page 23 of this Annual Report on
     Form 10-K.











PAGE>                          20

                             SIGNATURES

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


                                         CONSOLIDATED-TOMOKA LAND CO.
                                                 (Registrant)


3/12/04                                  By: /s/ William H. McMunn
                                             ---------------------
                                             William H. McMunn
                                             President and Chief
                                             Executive Officer

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


3/12/04     Chairman of the Board
            and Director                 By: /s/Bob D. Allen
                                             --------------------

3/12/04     President and Chief Executive
            Officer (Principal Executive
            Officer) and Director            /s/William H. McMunn
                                             --------------------

3/12/04     Senior Vice President-Finance,
            Treasurer (Principal Financial
            and Accounting Officer), and
            Director                         /s/Bruce W. Teeters
                                             --------------------


3/12/04     Director                         /s/John C. Adams, Jr.
                                             --------------------


3/12/04     Director                         /s/William J. Voges
                                             --------------------















                         21


                   SECURITIES AND EXCHANGE COMMISSION

                         WASHINGTON, D.C. 20549











                                EXHIBITS

                                   TO

                                FORM 10-K





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


              FOR THE FISCAL YEAR ENDED DECEMBER 31, 2003
                       COMMISSION FILE NO. 0-5556





                      CONSOLIDATED-TOMOKA LAND CO.

        (Exact name of registrant as specified in the charter)



















                                 22

EXHIBIT INDEX
                                                             Page No.
(2.1)  Agreement of Merger and Plan of Merger and Reorganization
       dated April 28, 1993 between Consolidated-Tomoka Land Co.
       and CTLC, Inc. filed with the registrant's Quarterly Report
       on Form 10-Q for the quarter ended March 31, 1993 and
       incorporated by this reference.                              *
(2.2)  Certificate of Merger dated April 28, 1993 filed with the
       registrant's Quarterly Report on Form 10-Q for the quarter
       ended March 31, 1993 and incorporated by this reference.     *
(3.1)  Articles of Incorporation of CTLC, Inc. dated February 26,
       1993 and Amended Articles of Incorporation dated March 30,
       1993 filed with the registrant's Quarterly Report on Form
       10-Q for the quarter ended March 31, 1993 and incorporated
       by this reference.                                           *
(3.2)  By-laws of CTLC, Inc. filed with the registrant's Quarterly
       Report on Form 10-Q for the quarter ended March 31, 1993
       and incorporated by this reference.                          *
 10    Material Contracts:
(10.1) The Consolidated-Tomoka Land Co. Unfunded Deferred
       Compensation Plan filed with the registrant's Quarterly
       Report on Form 10-Q for the quarter ended June 30, 1981
       and incorporated by this reference.                          *
(10.2) The Consolidated-Tomoka Land Co. Unfunded Deferred
       Compensation Plan executed on October 25, 1982 filed with
       the registrant's Annual Report on Form 10-K for the year
       ended December 31, 1982 and incorporated by this reference.  *
(10.3) The Consolidated-Tomoka Land Co. 2001 Stock Option Plan
       effective April 25, 2001, filed with the Registrant's Form S-8
       filed on June 20, 2001 and incorporated by this reference.   *
(10.4) Lease Agreement dated August 28, 1997 between the City of
       Daytona Beach and Indigo International Inc., a wholly
       owned subsidiary of Consolidated-Tomoka Land Co., filed
       on Form 10-K for the year ended December 31, 1997 and
       incorporated by this reference.                              *
(10.5) Development Agreement dated August 18, 1997 between the
       City of Daytona Beach and Indigo International Inc., a
       wholly owned subsidiary of Consolidated-Tomoka Land Co.,
       filed on Form 10-K for the year ended December 31, 1997
       and incorporated by this reference.                          *
(10.6) Purchase and Sale Agreement dated December 28, 1998
       between Alton D. Rogers and Wade H. Walker and
       Consolidated-Tomoka Land Co. filed on Form 10-K for the
       year ended December 31, 1998 and incorporated by this
       reference.                                                   *
(10.7) Master Loan and Security Agreement Between Consolidated-
       Tomoka Land Co. and SunTrust Bank dated July 1, 2002,
       filed on Form 10-Q for the quarter ended June 30, 2002
       and incorporated by this reference.                          *
(10.8) Master Loan and Security Agreement Between Consolidated-
       Tomoka Land Co. and SunTrust Bank dated May 31, 2002,
       filed on Form 10-Q for the quarter ended June 30, 2002
       and incorporated by this reference.                          *





                          23

EXHIBIT INDEX (CONTINUED)
- ------------------------
(10.9) International Swap Dealers Association, Inc. Master
       Agreement Dated April 8, 2002, between Consolidated-
       Tomoka Land Co. and SunTrust Bank, filed on Form 10-Q
       for the quarter ended June 30, 2002 and incorporated by
       this reference.                                              *
(10.10) Confirmation of Interest Rate Transaction Dated April 9,
        2002, between Consolidated-Tomoka Land Co. and SunTrust
        Bank, filed on Form 10-Q for the quarter ended June 30,
        2002, and incorporated by this reference.                    *
(21)   Subsidiaries of the Registrant                              27
(23)   Independent Auditors' Reports on Financial Statement
       Schedules.                                                  28
(23.2) Independent Auditors' Consent                               29
(23.3) Notice Regarding Consent of Arthur Andersen LLP             30
(31.1) Certification furnished pursuant to Section 302 of
       Sarbanes-Oxley Act of 2002.                                  *
(31.1) Certification furnished pursuant to Section 302 of
       Sarbanes-Oxley Act of 2002.                                  *
(32.2) Certification Pursuant to 18 U.S.C Section 1350,
       adopted Pursuant to Section 906 of the Sarbanes-
       Oxley Act of 2002.                                           *
(32.2) Certification Pursuant to 18 U.S.C. Section 1350,
       adopted Pursuant to Section 906 of the Sarbanes-
       Oxley Act of 2002.                                           *




* - Incorporated by Reference



























                          24

                                      SCHEDULE III
                         REAL ESTATE AND ACCUMULATED DEPRECIATION
                           FOR THE YEAR ENDED DECEMBER 31, 2003

<CAPTIONS>

                                                                                        COSTS CAPITALIZED
                                               INITIAL COST TO COMPANY              SUBSEQUENT TO ACQUISITION
                                      -------------------------------------------------------------------------
                                                                     BUILDINGS &
DESCRIPTION                              ENCUMBRANCES    LAND       IMPROVEMENTS   IMPROVEMENTS  CARRYING COSTS
- -----------                           -------------------------------------------------------------------------
                                                                                    
Income Properties:
 Gary Yeomans Ford, Daytona Beach, FL             -0-   $  435,121    $  743,902   $        -0-             -0-
 Eckerd, Tallahassee, FL                          -0-      590,800     1,595,000            -0-             -0-
 Eckerd, Sanford, FL                              -0-    1,565,176     1,890,671            -0-             -0-
 Barnes & Noble, Daytona Beach, FL                -0-    1,798,600     3,803,000            -0-             -0-
 Barnes & Noble, Lakeland, FL                     -0-    1,242,300     1,884,200            -0-             -0-
 Walgreens, Palm Bay, FL                          -0-    1,102,640     3,157,360            -0-             -0-
 Eckerd, Clermont, FL                             -0-    1,493,985     1,452,823            -0-             -0-
 Eckerd, Sebring, FL                              -0-    1,312,472     1,722,559            -0-             -0-
 Eckerd, Melbourne, FL                            -0-    1,567,788       919,186            -0-             -0-
 Eckerd, Sanford, FL                              -0-    2,361,091     1,275,625            -0-             -0-
 Walgreens, Kissimmee, FL                         -0-    1,327,847     1,770,986            -0-             -0-
 Walgreens, Orlando, FL                           -0-    2,280,841     1,148,507            -0-             -0-
 Miscellaneous                                    -0-      670,385           -0-     1,314,145              -0-
                                      -------------------------------------------------------------------------
                                                  -0-  $17,749,046   $21,363,819    $1,314,145              -0-
                                      =========================================================================

                                          GROSS AMOUNT AT WHICH
                                        CARRIED AT CLOSE OF PERIOD
                                      -----------------------------
                                                                                  DATE OF
                                LAND AND                        ACCUMULATED   COMPLETION OF    DATE     DEPR
                               IMPROVEMENTS BUILDINGS  TOTAL    DEPRECIATION  CONSTRUCTION   ACQUIRED   LIFE
                                     ----------------------------------------------------------------------------
                                    $       $       $        $                         
Income Properties:
 Gary Yeomans Ford, Daytona Beach, FL  435,121    743,902  1,179,023      58,893        N/A      10/31/00   40Yrs.
 Eckerd, Tallahassee, FL               590,800  1,595,000  2,185,800     122,948        N/A      12/13/00   40Yrs.
 Eckerd, Sanford, FL                 1,565,176  1,890,671  3,455,847     102,411        N/A      11/15/01   40Yrs.
 Barnes & Noble, Daytona Beach, FL   1,798,600  3,803,000  5,601,600     285,225        N/A      01/11/01   40Yrs.
 Barnes & Noble, Lakeland, FL        1,242,300  1,884,200  3,126,500     141,315        N/A      01/11/01   40Yrs.
 Walgreens, Palm Bay, FL             1,102,640  3,157,360  4,260,000     203,913        N/A      06/12/01   40Yrs.
 Eckerd, Clermont, FL                1,493,985  1,452,823  2,946,808      41,094        N/A      11/22/02   40Yrs.
 Eckerd, Sebring, FL                 1,312,472  1,722,559  3,035,031      39,475        N/A      02/04/03   40Yrs.
 Eckerd, Melbourne, FL               1,567,788    919,186  2,486,974      19,150        N/A      03/05/03   40Yrs.
 Eckerd, Sanford, FL                 2,361,091  1,275,625  3,636,716       2,658        N/A      09/17/03   40Yrs.
 Walgreens, Kissimmee, FL            1,327,847  1,770,986  3,098,833      40,585        N/A      02/12/03   40Yrs.
 Walgreens, Orlando, FL              2,280,841  1,148,507  3,429,348      26,320        N/A      02/13/03   40Yrs.
 Miscellaneous                       1,984,530        -0-  1,984,530     362,024    Various           N/A 5-30Yrs.
                                    --------------------------------------------
                                    19,063,191 21,363,819 40,427,010  1,446,011
                                    ============================================
                                      2003              2002             2001
                                    ----------       ----------       ----------
                                                             
Cost:
 Balance at Beginning of Year      $24,923,263      $21,715,945     $  7,817,603
 Improvements                       15,507,188        3,207,318       16,524,370
 Cost of Real Estate Sold          (     3,441)              --      ( 2,626,028)
                                    --------------------------------------------
Balance at End of Year             $40,427,010      $24,923,263     $ 21,715,945
                                    ============================================
Accumulated Depreciation:
 Balance at Beginning of Year       $  866,741        $ 527,193     $    273,665
 Depreciation and Amortization         579,270          399,548          301,822
 Depreciation on Real Estate Sold           --               --      (    48,294)
                                    --------------------------------------------
 Balance at End of Year             $1,446,011        $ 866,741     $    527,193
                                    ============================================

                                    25
                                  SCHEDULE IV
                            CONSOLIDATED-TOMOKA LAND CO.
                           MORTGAGE LOANS ON REAL ESTATE
                                  DECEMBER 31, 2003

<CAPTIONS>
                                                                                                      PRINCIPAL
                          FINAL                                                                       AMOUNT OF
                INTEREST  MATURITY                                      PRIOR   FACE     CARRYING     LOANS
DESCRIPTION     RATE      DATE       PERIODIC PAYMENT TERMS             LIENS   AMOUNT   AMOUNT (A)   DELINQUENT
- ----------------------------------------------------------------------------------------------------------------
                                                                                  
MORTGAGE N/R
SECURED BY
REAL ESTATE:

Volusia Co.     7.50%      01/04                Balloon of $  242,152   --  $   284,050  $  242,152      --
Volusia Co.     6.00%      10/04                Balloon of $  838,414   --      967,051     838,414      --
Volusia Co.     5.00%      10/04                Balloon of $1,652,472   --    1,805,424   1,652,472      --
Volusia Co.     7.00%      12/06    Level, Plus Balloon of $2,289,841   --    2,790,250   2,451,260      --
Volusia Co.     4.00%      12/04                Balloon of $  546,450   --      575,250     546,450      --
Volusia Co.       --       12/04                Balloon of $1,142,720   --    1,142,720   1,142,720      --
Highlands Co.   6.00%      04/09    Level, Plus Balloon of $1,753,415   --    2,550,000   2,246,749      --
Highlands Co.     --     Various                Balloon of $   30,000   --       30,000      30,000      --
                                                                        -----------------------------------
                                                                        --  $10,144,745  $9,150,217      --
                                                                        ===================================

(A) FOR FEDERAL INCOME TAX PURPOSES, THE AGGREGATE BASIS OF THE LISTED MORTGAGES WAS $9,150,217.

(B) A RECONCILIATION OF THE CARRYING AMOUNT OF MORTGAGES FOR THE THREE YEARS ENDED DECEMBER 31, 2003, 2002
    AND 2001 IS AS FOLLOWS:




                                                         2003         2002         2001
                                                      ---------     ---------   ----------
                                                                      
   BALANCE AT BEGINNING OF YEAR                      $9,611,326    $9,191,679  $11,526,249
   NEW MORTGAGE LOANS                                 1,142,720     2,066,981    2,792,250
   COLLECTIONS OF PRINCIPAL                          (1,603,829)   (1,647,334)  (5,126,820)
                                                      ------------------------------------
   BALANCE AT END OF YEAR                            $9,150,217    $9,611,326  $ 9,191,679
                                                      ====================================




























                                        26

                             EXHIBIT 21

Subsidiaries of the Registrant



                                                   Percentage of
                                 Organized         Voting Securities
                                 Under             Owned by
                                 Laws of           Immediate Parent
                                 ------------------------------------
                                             
Consolidated-Tomoka Land Co.     Florida               --
 Indigo Group Inc.               Florida            100.0
 Indigo Group Ltd.               Florida             99.0*
 (A Limited Partnership)
 Indigo Development Inc.         Florida            100.0
 Indigo Commercial Realty Inc.   Florida            100.0
 Palms Del Mar Inc.              Florida            100.0
 Indigo International Inc.       Florida            100.0



* Consolidated-Tomoka Land Co. is the limited partner of Indigo Group
Ltd., and owns 99.0% of the total partnership equity.  Indigo Group
Inc. is the managing general partner of the partnership and owns an
additional 1.0% of the partnership equity.

All subsidiaries are included in the Consolidated Financial
Statements of the Company and its subsidiaries appearing elsewhere
herein.



























                                27

                           EXHIBIT 23

     INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENT SCHEDULES

TO BOARD OF DIRECTORS AND SHAREHOLDERS
OF CONSOLIDATED-TOMOKA LAND CO.

Under date of January 23, 2004, we reported on the consolidated
balance sheets of Consolidated-Tomoka Land Co. and its subsidiaries as
of December 31, 2003 and December 31, 2002, and the related
consolidated statements of income, shareholders' equity, and cash
flows for the two years ended December 31, 2003, as contained in the
2003 annual report on Form 10-K.  In connection with our audit of the
aforementioned consolidated financial statements, we also audited the
related consolidated financial statement schedules as listed in Item
15(a)2 of the 2003 annual report on Form 10-K.  These financial
statement schedules are the responsibility of the Company's
management.  Our responsibility is to express an opinion on these
financial statement schedules based on our audit.

In our opinion, such financial statement schedules, when considered in
relation to the basic consolidated financial statements taken as a
whole, present fairly, in all material respects, the information set
forth therein.

KPMG LLP
Orlando, Florida
January 23, 2004

          REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
                   ON FINANCIAL STATEMENT SCHEDULES

TO CONSOLIDATED-TOMOKA LAND CO.:

We have audited in accordance with generally accepted auditing
standards, the consolidated financial statements of Consolidated-
Tomoka Land Co. included in this Form 10-K, and have issued our
report thereon dated January 25, 2002.  Our audits were made for the
purpose of forming an opinion on the basic financial statements taken
as a whole.  The schedules listed in item 14(a)2 are the
responsibility of the Company's management and are presented for
purposes of complying with the Securities and Exchange Commission's
rules and are not part of the basic consolidated financial
statements. These schedules have been subjected to the auditing
procedures applied in the audits of the basic consolidated financial
statements and, in our opinion, fairly state in all material respects
the financial data, required to be set forth therein in relation to
the basic consolidated financial statements taken as a whole.

Arthur Andersen LLP
Orlando, Florida
January 25, 2002

THE REPORT ABOVE IS A COPY OF A REPORT PREVIOUSLY ISSUED BY ARTHUR
ANDERSEN LLP. THE REPORT HAS NOT BEEN REISSUED BY ARTHUR ANDERSEN LLP
NOR HAS ARTHUR ANDERSEN LLP PROVIDED A CONSENT TO THE INCLUSION OF ITS
REPORT IN THIS FORM 10-K.


                          28

                           EXHIBIT 23.2

                    INDEPENDENT AUDITORS' CONSENT


TO BOARD OF DIRECTORS
CONSOLIDATED-TOMOKA LAND CO.

We consent to the incorporation by reference in Registration Statement
Nos. 33-62679 and 333-63400 on Form S-8 of Consolidated-Tomoka Land
Co. of our reports dated January 23, 2004, with respect to the
consolidated balance sheets of Consolidated-Tomoka Land Co. as of
December 31, 2003 and December 31, 2002, and the related consolidated
statements of income, shareholders' equity, and cash flows for the two
years ended December 31, 2003 and 2002, and all related financial
statement schedules, which reports appear in the December 31, 2003
annual report on Form 10-K of Consolidated-Tomoka Land Co.


KPMG LLP

Orlando, Florida
March 12, 2004




































                          29

                             EXHIBIT 23.3

           NOTICE REGARDING CONSENT OF ARTHUR ANDERSEN LLP

Section 11(a) of the Securities Act of 1933 provides that if any part
of a registration statement at the time such part becomes effective
contains an untrue statement of a material fact or an omission to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading, any person acquiring a
security pursuant to such registration statement (unless it is
provided that at the time of such acquisition such person knows of such
untruth or omission) may sue, among others, every accountant who has
consented to be named as having prepared or certifies any part of the
registration statement, or as having prepared or certified any report
or valuation, which is used in connection with the registration
statement, report or valuation which purports to have been prepared or
certified by the accountant.

This Annual Report on Form 10-K is incorporated by reference into
Registration Statement File Nos. 33-6279 and 333-63400 on Form S-8
(collectively, the "Registration Statements") of Consolidated-Tomoka
Land Co. (The "Company") and, for purposes of determining any
liability under the Securities Act, is deemed to be a new registration
statement for each Registration Statement into which it is
incorporated by reference.

On July 24, 2002, the Company dismissed Arthur Andersen LLP
("Andersen") as the Company's independent auditors.  Despite the
Company's reasonable efforts, representatives of Andersen are not
available to provide any written consent to the incorporation by
reference into the Registration Statements of it audit reports with
respect to the Company's financial statements as of and for the fiscal
year ended December 31, 2001.

Under these circumstances, Rule 437a under the Securities Act permits
the Company to file this Form 10-K without a written consent from
Andersen.  However, as a result, with respect to transactions in the
Company's securities pursuant to the Registration Statements that
occur subsequent to the date this Annual Report on Form 10-K is filed
with the Securities and Exchange Commission, Andersen will not have
any liability under Section 11(a) of the Securities Act for any untrue
statements of a material fact contained in the financial statements
audited by Andersen or any omissions of a material fact required to be
stated therein.  Accordingly, you would be unable to assert a claim
against Andersen under Section 11(a) of the Securities Act because it
has not consented to the incorporation by reference of its previously
issued reports into the Registration Statements.  To the extent
provided in Section 11(b)(3)(C) of the Securities Act, however, other
persons who are liable under Section 11(a) of the Securities Act,
including the Company's officers and directors, may still rely on
Andersen's original audit reports.








                          30
                   CONSOLIDATED-TOMOKA LAND CO.

                  INDEX TO FINANCIAL STATEMENTS


Independent Auditors' Reports                                     F-2

Consolidated Balance Sheets as of December 31, 2003 and 2002      F-4

Consolidated Statements of Income for the three years ended
 December 31, 2003                                                F-5

Consolidated Statements of Shareholders' Equity for the
 three years ended December 31, 2003                              F-6

Consolidated Statements of Cash Flows for the three years
 ended December 31, 2003                                          F-7

Notes to Consolidated Financial Statements                        F-9






































                                 F-1


                    INDEPENDENT AUDITORS' REPORT

To The Board of Directors
Consolidated-Tomoka Land Co.

     We have audited the 2003 and 2002 consolidated financial
statements of Consolidated-Tomoka Land Co. and subsidiaries, as listed
in the accompanying index. These consolidated financial statements are
the responsibility of the Company's management.  Our responsibility is
to express an opinion on these consolidated financial statements based
on our audits.  The 2001 consolidated financial statements of
Consolidated-Tomoka Land Co. and subsidiaries, as listed in the
accompanying index, were audited by other auditors who have ceased
operations.  Those auditors expressed an unqualified opinion on those
financial statements in their report dated January 25, 2002.

     We conducted our audits in accordance with auditing standards
generally accepted in the United States of America.  Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation.  We believe that our audits
provide a reasonable basis for our opinion.

     In our opinion, the 2003 and 2002 consolidated financial
statements referred to above present fairly, in all material respects,
the financial position of Consolidated-Tomoka Land Co. and
subsidiaries as of December 31, 2003 and 2002, and the results of
their operations and their cash flows for the years then ended in
conformity with accounting principles generally accepted in the United
States of America.



KPMG LLP

Orlando, Florida
January 23, 2004
















                          F-2


REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS

To the Shareholders of
Consolidated-Tomoka Land Co.

     We have audited the accompanying consolidated balance sheets of
Consolidated-Tomoka Land Co. and subsidiaries as of December 31, 2001
and 2000, and the related consolidated statements of income,
shareholders' equity and cash flows for each of the years in the
three-year period ended December 31, 2001.  These financial
statements are the responsibility of the Company's management.  Our
responsibility is to express an opinion on these financial statements
based on our audits.

     We conducted our audits in accordance with auditing standards
generally accepted in the United States.  Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation.  We believe that our audits
provide a reasonable basis for our opinion.

     In our opinion, the consolidated financial statements referred
to above present fairly, in all material respects, the financial
position of Consolidated-Tomoka Land Co. and subsidiaries as of
December 31, 2001 and 2000, and the results of their operations and
their cash flows for each of the years in the three-year period ended
December 31, 2001, in conformity with accounting principles generally
accepted in the United States.


Arthur Andersen LLP

Orlando, Florida
January 25,2002

THE REPORT ABOVE IS A COPY OF A REPORT PREVIOUSLY ISSUED BY ARTHUR
ANDERSEN LLP. THE REPORT HAS NOT BEEN REISSUED BY ARTHUR ANDERSEN LLP
NOR HAS ARTHUR ANDERSEN LLP PROVIDED A CONSENT TO THE INCLUSION OF ITS
REPORT IN THIS FORM 10-K.
















                          F-3
                     Consolidated Balance Sheets
                                                           December 31,
                                                 ---------------------------
                                                              2003            2002
                                                          -----------     -----------
                                                                    
Assets
  Cash                                                    $ 1,026,210    $  1,019,976
  Restricted Cash (Note 1)                                 19,359,098      12,339,527
  Investment Securities (Note 2)                            3,891,697       5,013,224
  Notes Receivable (Note 4)                                 9,150,217       9,640,676
  Real Estate Held for Development and Sale (Note 5)       11,659,581       7,453,628
  Refundable Income Taxes (Note 3)                                 --         815,503
  Intangible Assets, Net (Note 1)                           1,270,307              --
  Other Assets                                              2,665,653       3,684,860
                                                           ----------      ----------
                                                           49,022,763      39,967,394
                                                           ----------      ----------
Property, Plant and Equipment
  Land, Timber and Subsurface Interests                     1,984,529       1,958,550
  Golf Buildings, Improvements and Equipment               11,277,853      11,259,631
  Income Properties: Land, Buildings and Improvements      38,442,481      22,964,712
  Other Furnishings and Equipment                             954,575         886,767
                                                           ----------      ----------
     Total Property, Plant and Equipment                   52,659,438      37,069,660
     Less Accumulated Depreciation and Amortization       ( 3,776,223)    ( 2,710,992)
                                                           ----------      ----------
     Net Property, Plant and Equipment                     48,883,215      34,358,668
                                                           ----------      ----------
      Total Assets                                        $97,905,978     $74,326,062
                                                           ==========      ==========
Liabilities
  Accounts Payable                                        $   105,922     $   304,480
  Accrued Liabilities                                       3,510,824       3,085,131
  Income Taxes Payable (Note 3)                                25,868              --
  Deferred Income Taxes (Note 3)                           17,344,499       8,843,728
  Deferred Profit (Note 1)                                  1,131,135              --
  Notes Payable (Note 6)                                   10,129,951       9,235,072
                                                           ----------      ----------
      Total Liabilities                                    32,248,199      21,468,411
                                                           ----------      ----------
Commitments and Contingencies (Note 11)

SHAREHOLDERS' EQUITY
  Preferred Stock - 50,000 Shares Authorized,
   $100 Par Value; None Issued                                     --              --
  Common Stock - 25,000,000 Shares Authorized;
   $1 Par Value; 5,623,442 and 5,615,579 Shares
   Issued and Outstanding at December 31, 2003
   and 2002, respectively                                   5,623,442       5,615,579
  Additional Paid-In Capital                                1,514,339         835,750
  Retained Earnings                                        59,129,692      47,171,449
  Accumulated Other Comprehensive Loss                    (   609,694)    (   765,127)
                                                           ----------      ----------
     Total Shareholders' Equity                            65,657,779      52,857,651
                                                           ----------      ----------
     Total Liabilities and Shareholders' Equity           $97,905,978     $74,326,062
                                                           ==========      ==========
The accompanying notes are an integral part of these consolidated statements.

                                   F-4
                          Consolidated Statements of Income



                                                              Calendar Year
                                               ------------------------------------------
                                               December 31,  December 31,    December 31,
                                                   2003          2002            2001
                                               ------------------------------------------
                                                                    
Income:

  Real Estate Operations:
   Real Estate Sales
    Sales and Other Income                     $25,495,664     $20,626,879     $3,351,893
    Costs and Other Expenses                   ( 2,721,624)    ( 4,277,367)    (2,100,264)
                                                ----------      ----------     ----------
                                                22,774,040      16,349,512      1,251,629
                                                ----------      ----------     ----------
   Income Properties
    Leasing Revenues and Other Income            3,276,062       2,062,552      1,831,344
    Costs and Other Expenses                   (   594,520)    (   400,157)   (   428,473)
                                                ----------      ----------     ----------
                                                 2,681,542       1,662,395      1,402,871
                                                ----------      ----------     ----------
   Golf Operations
    Sales and Other Income                       4,373,414       4,226,608      4,065,318
    Costs and Other Expenses                   ( 5,558,778)    ( 5,490,455)   ( 5,393,977)
                                                ----------      ----------     ----------
                                               ( 1,185,364)    ( 1,263,847)   ( 1,328,659)
                                                ----------      ----------     ----------
  Total Real Estate Operations                  24,270,218      16,748,060      1,325,841

   Profit On Sales of Other
    Real Estate Interests                          631,875         150,865         56,607

   Interest and Other Income                     1,114,074       1,463,820      2,044,825
                                                ----------      ----------     ----------
Operating Income                                26,016,167      18,362,745      3,427,273

General and Administrative Expenses            ( 4,588,034)    ( 3,407,175)    (4,594,330)
                                                ----------      ----------     ----------

Income (Loss) Before Income Taxes               21,428,133      14,955,570     (1,167,057)

Income Taxes (Note 3)                          ( 8,233,738)    ( 5,669,729)       531,161
                                                ----------      ----------     ----------
Net Income (Loss)                              $13,194,395     $ 9,285,841    $(  635,896)
                                                ==========      ==========     ==========

Per Share Information (Note 10):
 Net Income (Loss)                                   $2.35           $1.65         $(0.11)
                                                ==========      ==========     ==========

The accompanying notes are an integral part of these consolidated
statements.


                                          F-5



         Consolidated Statements of Shareholders' Equity

                                                            Accumulated
                               Additional                 Other          Total
                          Common        Paid-In     Retained       Comprehensive  Shareholders'  Comprehensive
                          Stock         Capital     Earnings       Loss           Equity         Income
                          ---------     --------    -----------    -----------    ------------   -----------
                                                                                
Balance,
 December 31, 2000       $5,584,684     $     --    $40,969,889    $        --     $46,554,573

Net Loss                         --           --     (  635,896)            --      (  635,896)    $(635,896)
                                                                                                     =======
Cash Dividends
 ($.20 per share)                --           --     (1,117,648)            --      (1,117,648)

Repurchase of
 18,900 Shares           (   18,900)          --     (  207,621)            --      (  226,521)

Issuance of 49,795 Shares
 Pursuant to Exercise of
 Stock Options               49,795      626,173             --             --         675,968

Tax Benefit of Stock
 Options Exercised               --      132,297             --             --         132,297
                          ---------      -------      ---------     ----------       ---------
Balance,
 December 31, 2001       $5,615,579     $758,470    $39,008,724    $         -     $45,382,773

Net Income                       --           --      9,285,841             --       9,285,841    $9,285,841

Other Comprehensive
 Loss:
  Cash Flow Hedging
  Derivative, Net of Tax         --           --             --      ( 765,127)      ( 765,127)    ( 765,127)
                                                                                                   ---------
Comprehensive Income                                                                              $8,520,714
                                                                                                   =========
Stock Options                    --       77,280             --             --          77,280

Cash Dividends
 ($.20 per share)                --           --      (1,123,116)           --      (1,123,116)
                            -------      -------      ----------    ----------      ----------
Balance,
 December 31, 2002       $5,615,579     $835,750     $47,171,449   $(  765,127)    $52,857,651

Net Income                      --            --      13,194,395            --      13,194,395   $13,194,395

Other Comprehensive
 Income:
  Cash Flow, Hedging
  Derivative, Net of Tax        --             -              --       155,433         155,433       155,433
                                                                                                  ----------
Comprehensive Income                                                                             $13,349,828
                                                                                                  ==========
Stock Options                7,863       678,589              --            --         686,452

Cash Dividends
 ($.22 per share)               --            --      (1,236,152)           --      (1,236,152)
                         ---------     ---------      ----------       -------      ----------
Balance,
 December 31, 2003      $5,623,442    $1,514,339     $59,129,692     $(609,694)    $65,657,779
                         =========     =========      ==========       =======      ==========


The accompanying notes are an integral part of these consolidated
statements.






                                           F-6


                  Consolidated Statements of Cash Flows
                                                      Calendar Year
                                                   --------------------------------------
                                                   December 31, December 31, December 31,
                                                       2003        2002          2001
                                                   -----------  -----------  ------------
                                                                     
Cash Flow from Operating Activities:
 Net Income (Loss)                                $ 13,194,395   $ 9,285,841 $(   635,896)

Adjustments to Reconcile Net Income (Loss) to
 Net Cash Provided by Operating Activities:
  Depreciation and Amortization                      1,120,153       806,842      739,007
  Non-Cash, Stock-Based Compensation                   678,589        77,280      660,834
  Loss (Gain) on Sale of Property,
   Plant, and Equipment                                     --        55,624  (   675,280)

Decrease (Increase) in Assets:
  Notes Receivable                                     490,459    (  395,100)   2,356,901
  Real Estate Held for Development                  (4,205,953)    1,735,981      578,026
  Refundable Income Taxes                              815,503       596,054  (   535,459)
  Other Assets                                       1,019,207    (1,370,720)     202,495

(Decrease) Increase in Liabilities:
  Accounts Payable                                  (  198,558)      122,768  (    38,803)
  Accrued Liabilities                                  581,126    (2,001,735) (   239,822)
  Income Taxes Payable                                  25,868            --           --
  Deferred Income                                    1,131,135            --           --
  Deferred Income Taxes                              8,500,771     5,970,949      701,341
                                                    ----------    ----------    ---------
    Net Cash Provided by Operating Activities       23,152,695    14,883,784    3,113,344
                                                    ----------    ----------    ---------
Cash Flow from Investing Activities:
  Acquisition of Property, Plant and Equipment     (15,589,778)  ( 3,471,135) (17,452,183)
  Intangible Assets                                 (1,325,229)           --           --
  Increase in Restricted Cash for Acquisitions
   Through the Like-Kind Exchange Process          ( 7,019,571)  (11,584,290) (   755,237)
  Proceeds from Calls or Maturities of
   Investment Securities                             2,180,465     5,666,603   18,539,679
  Acquisition of Investment Securities             ( 1,058,938)  ( 5,192,775) (15,848,545)
  Proceeds from Sale of Property, Plant and
   Equipment                                                --        20,900    3,253,015
                                                    ----------    ----------   ----------
    Net Cash Used In Investing Activities          (22,813,051)  (14,560,697) (12,263,271)
                                                    ----------    ----------   ----------
Cash Flow from Financing Activities:
  Proceeds from Notes Payable                        8,528,000    11,410,908      845,000
  Payments on Notes Payable                        ( 7,633,121)  (11,633,534) ( 1,233,129)
  Cash Proceeds from Exercise of Stock Options           7,863            --       15,134
  Funds Used to Repurchase Common Stock                     --            --  (   226,521)
  Dividends Paid                                   ( 1,236,152)  ( 1,123,116) ( 1,117,648)
                                                    ----------    ----------   ----------
    Net Cash Used In by Financing Activities       (   333,410)  ( 1,345,742) ( 1,717,164)
                                                    ----------    ----------   ----------
Net Increase (Decrease) in Cash                          6,234   ( 1,022,655) (10,867,091)
Cash, Beginning of Year                              1,019,976     2,042,631   12,909,722
                                                    ----------    ----------   ----------
Cash, End of Year                                 $  1,026,210   $ 1,019,976  $ 2,042,631
                                                    ==========    ==========   ==========


                               F-7

Consolidated Statements of Cash Flows (continued)

Supplemental Disclosure of Operating Activities:

In connection with the sale of real estate and income properties, the
Company received, as consideration, mortgage notes receivable of
$1,142,720, $2,087,381, and $2,792,250, for the years 2003, 2002, and
2001, respectively.

In addition, the Company received an irrevocable letter of credit
totaling $191,759 as consideration for real estate sales in 2002,
which is included in other assets.

Total interest paid was $715,774, $779,974, and $839,631, for the
years 2003, 2002, and 2001, respectively.

Income taxes of $1,010,791, $1,377,774 and $697,044 were refunded in
2003, 2002 and 2001, respectively.

In connection with the exercise of stock options the Company recorded
compensation expense and income tax benefit of $660,834 and $132,297,
respectively for the year 2001.

The accompanying notes are an integral part of these consolidated
statements.

































	                         F-8


              NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                    December 31, 2003, 2002 and 2001

NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ---------------------------------------------------
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of
Consolidated-Tomoka Land Co., a Florida corporation, and its wholly
owned subsidiaries:  Indigo Group Inc., Indigo Group Ltd., Indigo
International Inc., Indigo Development Inc. and Palms Del Mar Inc.
(collectively, the Company).  All significant intercompany accounts
and transactions have been eliminated in consolidation.

NATURE OF OPERATIONS
The Company is primarily engaged, through its wholly owned
subsidiaries, in the real estate industry.  Real estate operations,
which are primarily commercial in nature, also include residential,
golf operations, income properties, leasing properties for oil and
mineral exploration, and forestry operations. These operations are
predominantly located in Volusia County, Florida, with various income
properties owned throughout the State of Florida.

USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities, and disclosure of contingent assets
and liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

RESTRICTED CASH
The Company's qualified intermediary held $19,359,098 and $12,339,527
in escrow, for the benefit of the Company, at December 31, 2003 and
2002, respectively, to complete the purchase of income properties
through the deferred tax like-kind exchange process.

In the event that such transactions are not completed, these funds
will become unrestricted and deferred income taxes on the like-kind
transaction will become currently payable.

REAL ESTATE HELD FOR DEVELOPMENT AND SALE
The carrying value of real estate held for development and sale
includes the initial acquisition costs of land, improvements thereto,
and other costs incidental to the acquisition or development of land.
These costs are allocated to properties on a relative sales value
basis and are charged to costs of sales as specific properties are
sold.  Due to the nature of the business, real estate held for
development and sale has been classified as an operating activity on
the consolidated statement of cash flows.

Interest of $71,514 was capitalized to real estate held for
development and sale during 2003, with no interest capitalized in
2002.  No real estate taxes were capitalized for either period.




                         F-9


NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
- --------------------------------------------------------------

INTANGIBLE ASSETS
Intangible assets consist of the market lease value associated with
single-tenant income properties owned by the Company.  This value is
amortized over the remaining term of the lease at the time the
properties are purchased.  At December 31, 2003, the market lease
value totaled $1,270,307, which is net of amortization of $54,922 for
2003.

PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost, less accumulated
depreciation and amortization.  Such properties are depreciated on a
straight-line basis over their estimated useful lives.  Renewals and
betterments are capitalized to property accounts.  The cost of
maintenance and repairs is expensed as incurred.  The cost of property
retired or otherwise disposed of, and the related accumulated
depreciation or amortization, are removed from the accounts, and any
resulting gain or loss is taken into income.

The amount of depreciation and amortization of property, plant, and
equipment recognized for the years 2003, 2002 and 2001 was $1,065,231,
$806,842, and $739,007, respectively.

The range of estimated useful lives for property, plant and
equipment is as follows:

   Golf Buildings and Improvements             10-40 Years
   Golf Equipment                               5-10 Years
   Income Properties Buildings and Improvements   40 Years
   Other Furnishings and Equipment              5-25 Years

LONG-LIVED ASSETS
The Company has reviewed the recoverability of long-lived assets,
including real estate held for development and sale, and property,
plant and equipment, for impairment whenever events or changes in
circumstances indicate that the carrying amount of an asset may not be
recoverable.  There has been no material impairment of long-lived
assets reflected in the consolidated financial statements for the
three years ended December 31, 2003.

In August 2001, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards (SFAS) No. 144,
"Accounting For the Disposal or Impairment of Long-Lived Assets."
SFAS No. 144 supersedes SFAS No. 121, "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to be Disposed of," and
requires that one accounting impairment model be used for long-lived
assets to be disposed of by sales, whether previously held and used or
newly acquired, and broadens the presentation of discontinued
operations to include more disposal transactions.  SFAS No. 144 is
effective for fiscal years beginning after December 15, 2001.  The
Company adopted SFAS No. 144 on January 1, 2002.  There were no
adjustments from the adoption of SFAS No. 144 for the year ended
December 31, 2002.





                           F-10
NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
- --------------------------------------------------------------

SALE OF REAL ESTATE
The profit on sales of real estate is accounted for in accordance with
the provisions of SFAS No. 66, "Accounting for Sales of Real Estate."
The Company recognizes revenue from the sale of real estate at the
time the sale is consummated unless the property is sold on a
deferred payment plan and the initial payment does not meet criteria
established under SFAS No. 66, or the Company retains some form of
continuing involvement in the property.  Income of $1,131,135 was
deferred for the year ended December 31, 2003, as the initial payment
did not meet the criteria established under SFAS No. 66.  No income
was deferred for the years ended December 31, 2002 and 2001.

INCOME PROPERTIES
The rental of the Company's income properties generally are classified
as operating leases.  The Company recognizes lease income on these
properties on a straight-line basis over the term of the lease.

GOLF OPERATIONS
The Company operates two golf courses and a clubhouse facility,
including food and beverage operations.  Revenues from this operation,
including greens fees, cart rentals, merchandise, and food and
beverage sales, are recognized at the time of sale.  Membership dues
are recognized over the life of the membership.

UNFUNDED DEFERRED COMPENSATION PLANS
The Company maintains two unfunded deferred compensation plans.  One
plan is established for the Board of Directors of the Company, with
the second plan established for the officers and key employees of the
Company.  Under the plans, any member of the Board of Directors,
officer or key employee may elect to defer all or a portion of their
compensation.  The amount of deferred compensation shall increase
annually by an amount which is equal to interest on the deferred
compensation at the rate of return earned by the Company on its short-
term investments.  Compensation credited to a participant shall be
deferred until such participant ceases to be a member of the Board of
Directors, officer or key employee, at which time the amounts
accumulated shall be distributed in the manner elected.  The plans are
non-qualified plans as defined by the Internal Revenue Service.  The
amount of deferred compensation reflected in accrued liabilities on
the consolidated balance sheets at December 31, 2003 and 2002 was
$1,386,348 and $1,243,917, respectively.  Deferred compensation
expense for the three years ended December 31, 2003 were $99,046,
$135,240 and $242,214, respectively.

PENSIONS
The Company has a funded, non-contributory defined benefit pension
plan covering all eligible employees.  The Company's method of funding
and accounting for pension costs is to fund and accrue all normal
costs plus an amount necessary to amortize past service cost over a
period of 30 years.  (See Note 7 "Pension Plan").

STOCK OPTION PLAN
The Company applies the intrinsic value-based method of accounting
prescribed by Accounting Principles Board ("APB") Opinion No. 25,
"Accounting for Stock Issued to Employees," and related
interpretations including FASB Interpretation No. 44, "Accounting for
Certain Transactions Involving Stock Compensation, an Interpretation of
                        F-11

NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
- --------------------------------------------------------------
APB Opinion No. 25," issued in March 2000, to account for its variable
plan stock options.  Under this method, compensation expense is
recorded on the date of grant only if the current market price of the
underlying stock exceeded the exercise price, except for stock
appreciation rights and other variable stock option plans.
Compensation expense relating to such variable plans shall be measured
at the end of each period as the amount which the quoted market value
of shares covered by a grant exceeds the option price.  The Company
accounts for its plan as a variable plan.  SFAS No. 123, "Accounting
for Stock-Based Compensation," established accounting and disclosure
requirements using a fair value-based method of accounting for stock-
based employee compensation plans.  As allowed by SFAS No. 123, the
Company has elected to continue to apply the intrinsic value-based
method of accounting described above, and has adopted the disclosure
requirements of SFAS No. 123.

In December 2002, the FASB issued SFAS No. 148, "Accounting for Stock-
Based Compensation - Transition and Disclosure - an Amendment to FASB
Statement No. 123."  SFAS No. 148 provides alternative methods of
transition for a voluntary change to the fair value based method of
accounting for stock-based employee compensation.  In addition, the
Statement amends the disclosure requirements of Statement No. 123 to
require prominent disclosures in both annual and interim financial
statements about the method of accounting for stock-based employee
compensation and the effect of the method used on reported results.
SFAS No. 148 is effective for financial statements for fiscal years
ending after December 15, 2002 and such disclosures have been made.

INCOME TAXES
The Company uses the asset and liability method to account for income
taxes.  Deferred income taxes result primarily from the net tax effect
of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for
income tax purposes (see Note 3, "Income Taxes").

EARNINGS PER COMMON SHARE
Basic and diluted earnings per common share are presented in
accordance with SFAS No. 128, "Earnings Per Share".  Basic earnings
per common share is computed by dividing net income by the weighted
average number of shares outstanding.  Diluted earnings per common
share includes the dilutive effect of stock options (see Note 10,
"Earnings Per Share").

CONCENTRATION OF CREDIT RISK
Financial instruments which potentially subject the Company to
concentrations of credit risk consist principally of cash, investment
securities, accounts receivables, and notes receivable.

FAIR VALUE OF FINANCIAL INSTRUMENTS
The carrying amounts of the Company's financial assets and
liabilities, including cash, accounts receivable and accounts payable
at December 31, 2003 and 2002, approximate fair value because of the
short maturity of these instruments.  The carrying amount of the
Company's notes receivable and notes payable approximates fair value
at December 31, 2003 and 2002, since the notes are at floating rates


                        F-12

NOTE 1   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
- --------------------------------------------------------------

or fixed rates which approximate current market rates for notes
with similar risks and maturities.  The interest rate swap derivative
is carried at its fair value at December 31, 2003 and 2002.

DERIVATIVE INSTRUMENTS AND CERTAIN HEDGING ACTIVITY
The Company accounts for derivatives and hedging activity under
Financial Accounting Standards Board (FASB) issued Statement of
Financial Accounting Standards (SFAS) No. 133, "Accounting for
Derivative Instruments and Certain Hedging Activities," and SFAS No. 138,
"Accounting for Certain Derivative Instruments and Certain
Hedging Activity, an Amendment of SFAS 133."

All derivatives are recognized on the balance sheet at their fair
value.  On the date the derivative contract is entered into, the
Company designates the derivative as a hedge of the variability of
cash flows to be paid related to a recognized liability ("cash flow
hedge"). The Company formally documents all relationships between
hedging instruments and hedged items, as well as its risk-management
objective and strategy for undertaking various hedge transactions.
This process includes linking all derivatives that are designated as
cash-flow hedges to specific liabilities on the balance sheet. The
Company also formally assesses, both at the hedge's inception and on
an ongoing basis, whether the derivatives that are used in hedging
transactions are highly effective in offsetting changes in cash flows
of hedged items.  When it is determined that a derivative is not
highly effective as a hedge or that it has ceased to be a highly
effective hedge, the Company discontinues hedge accounting
prospectively.

Changes in the fair value of a derivative that is highly effective
and that is designated and qualifies as a cash-flow hedge are recorded
in other comprehensive income, until earnings are affected by the
variability in cash flows of the designated hedged item.

The Company discontinues hedge accounting prospectively when it is
determined that the derivative is no longer effective in offsetting
changes in the cash flows of the hedged item, the derivative expires
or is sold, terminated, or exercised, the derivative is re-designated
as a hedging instrument or management determines that designation of
the derivative as a hedging instrument is no longer appropriate.

When hedge accounting is discontinued, the Company continues to carry
the derivative at its fair value on the balance sheet, and recognizes
any changes in its fair value in earnings.

NOTE 2   INVESTMENT SECURITIES
- ------------------------------
The Company accounts for investment securities under SFAS No. 115,
"Accounting for Certain Investments in Debt and Equity Securities."
This standard requires classification of the investment portfolio into
three categories: held to maturity, trading, and available for sale.
The Company classifies as held to maturity those securities which the
Company has the intent and ability to hold through their stated
maturity date.  Investment securities which are classified as held to
maturity are carried at cost, adjusted for amortization of premiums


                         F-13
NOTE 2   INVESTMENT SECURITIES (CONTINUED)
- -----------------------------------------

and accretion of discounts.  Gains and losses are determined using the
specific identification method.  For the years ended December 31,
2003, 2002, and 2001, losses of $722, $25,411, and $57,380,
respectively, were recognized on the disposition of investment
securities.

Investment securities as of December 31, 2003 and 2002 are as follows:

                                                 2003        2002
                                                       ----------  ----------
                                                             
Investments Held to Maturity
- ----------------------------
Debt Securities Issued by States
 and Political Subdivisions of States                  $3,762,453  $4,486,743
Preferred Stocks                                          129,244     526,481
                                                        ---------   ---------
Total Investments Held to Maturity                     $3,891,697  $5,013,224
                                                        =========   =========


The contractual maturities of investment securities held to maturity
are as follows:

             Maturity Date                             Amount
             --------------                            ---------
             Within 1 year                            $  353,471
             1-5 Years                                 1,129,358
             6-10 Years                                  755,220
             After 10 Years                            1,653,648
                                                       ---------
                                                      $3,891,697
                                                       =========
The amortized cost, gross unrealized holding gains, gross unrealized
holding losses, and fair value of held-to-maturity securities by major
security type and class of security at December 31, 2003 were as
follows:

                                                    Gross        Gross
                                           Unrealized   Unrealized
                                 Amortized   Holding      Holding       Fair
                                        Cost        Gains        Losses        Value
                                        ---------   ----------   ----------    ---------
                                                                   
At December 31, 2003
 Debt Securities Issued by States
  and Political Subdivisions of State  $3,762,453      $12,698    $(238,948)  $3,536,203
 Preferred Stocks                         129,244           --     ( 41,169)      88,075
                                        ---------       ------      -------    ---------
                                       $3,891,697      $12,698    $(280,117)  $3,624,278
                                        =========      =======     ========   =========














                         F-14

NOTE 2   INVESTMENT SECURITIES (CONTINUED)
- -----------------------------------------
The following table shows the Company's investments' gross unrealized
losses and fair value, aggregated by investment category and length of
time that individual securities have been in a continuous unrealized
loss position at December 31, 2003.  The unrealized losses on
investments in debt securities issued by states and political
subdivisions of states were caused by interest rate increases.  The
contractual terms of these investments do not permit the issuer to
settle the securities at a price less than the amortized cost of the
investment.  Because the Company has the ability and intent to hold
these investments until a market price recovery or maturity, these
investments are not considered other-than-temporarily impaired.


                       Less than 12 Months      12 Months or More           Total
                               ---------------------   ---------------------  ---------------------
                               Fair       Unrealized   Fair       Unrealized  Fair       Unrealized
                               Value      Losses       Value      Losses      Value      Losses
                               ---------  ----------   ---------  ----------  ---------  ----------
                                                                       
Description of Securities
  Debt Securities Issued by
   States and Political
   Subdivisions of States     $1,326,807     $29,768  $2,209,396    $209,180 $3,536,203    $238,948
  Preferred Stocks                    --          --      88,075      41,169     88,075      41,169
                               ---------      ------   ---------     -------  ---------     -------
                              $1,326,807     $29,768  $2,297,471    $250,349 $3,624,278    $280,117
                               =========      ======   =========     =======  =========     =======


NOTE 3   INCOME TAXES
- ---------------------
The Company accounts for income taxes under SFAS No. 109, "Accounting
for Income Taxes."

The provisions for income taxes are summarized as follows:

             2003                     2002                      2001
           ----                     ----                      ----
             Current    Deferred      Current     Deferred       Current   Deferred
             -------------------      --------------------       -------------------
                                                        
Federal    $( 24,154) $7,204,198     $(369,928) $5,218,805    $(1,284,978)  $821,226
State       (145,266)  1,198,160        68,708     752,144         52,476   (119,885)
             -------   ---------       -------   ---------      ---------    -------
Total      $(169,420) $8,403,158     $(301,220) $5,970,949    $(1,232,502)  $701,341
             =======   =========       =======   =========      =========    =======

Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to the differences between the financial
statement carrying amounts of existing assets and liabilities and
their respective tax bases and operating loss and tax credit
carryforwards.  Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or
settled.  The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in income in the period that
includes the enactment date.







                        F-15



NOTE 3   INCOME TAXES (CONTINUED)
- --------------------------------

The sources of these differences and the related deferred income tax
assets (liabilities) are summarized as follows:

                                           Deferred Taxes
                                    -------------------------
                                                2003           2002
                                             ----------     ----------
                                                     
Depreciation                               $(    85,799)  $(   127,936)
Sales of Real Estate                        (20,039,104)   (11,283,840)
Deferred Compensation                           534,784        479,841
Basis Difference In Joint Venture             1,126,402      1,159,102
Revolving Fund Certificates                     100,579        192,595
Charitable Contributions Carryforward           780,642        758,579
Interest Rate Swap                              382,886        480,499
Other                                           635,753        256,011
Less-Valuation Allowance                    (   780,642)   (   758,579)
                                             ----------      ---------
                                           $(17,344,499)  $( 8,843,728)
                                     ==========      =========

In assessing the realizability of deferred tax assets, management
considers whether it is more likely than not that some portion or all
of the deferred tax assets will not be realized.  The ultimate
realization of deferred tax assets is dependent upon the realization
of future taxable income during the periods in which those temporary
differences become deductible.  Management considers past history, the
scheduled reversal of taxable temporary differences, projected future
taxable income, and tax planning strategies in making this assessment.
As of December 31, 2003 and 2002, management believes it is more
likely than not that a portion of the Company's deferred tax assets
will not be realized.  A valuation allowance for deferred tax assets
is provided when it is more likely than not that some portion of all
of the deferred tax assets will not be realized.  As of December 31,
2003 and 2002, the valuation allowance was $780,642 and $758,579,
respectively.

Following is a reconciliation of the income tax computed at the
federal statutory rate of 35% for 2003, 2002 and 2001:

                                                          Calendar Year
                                              -----------------------------------
                                                          2003          2002        2001
                                                       ---------     ---------     -------
                                                                        
Income Tax Expense (Benefit) Computed at Federal
 Statutory Rate                                       $7,499,847    $5,234,450   $(408,470)
Increase (Decrease) Resulting from:
 State Income Tax, Net of Federal Income Tax Benefit     765,971       533,554    ( 43,816)
 Tax Exempt Interest Income                           (   81,258)   (   87,423)   ( 86,959)
 Adjustment to Valuation Allowance                        22,063            --      30,000
 Other Reconciling Items                                  27,115    (   10,852)   ( 21,916)
                                                        --------     ---------     -------
Provision (Benefit) for Income Taxes                  $8,233,738    $5,669,729   $(531,161)
                                                       =========     =========     =======





                           F-16

NOTE 3   INCOME TAXES (CONTINUED)
- --------------------------------
During 2002, the Company generated a net operating loss for
income tax purposes.  For Federal income tax, this loss can be
carried back to prior years, when the Company generated taxable
income.  For State income tax purposes, the net operating loss
can only be carried forward against future taxable income. The Company
had a net operating loss carry forward of $6,539,524 for state income
tax purposes at December 31, 2003, which can be carried forward
indefinitely.

NOTE 4   NOTES RECEIVABLE
- -------------------------
Notes Receivable consisted of the following:

                                                               December 31,
                                                       -------------------------
                                                                    2003         2002
                                                                -------------------------
                                                                        
MORTGAGE NOTES RECEIVABLE
 Various notes with interest rates ranging from 4% to
  7.50% with payments due from 2003 through 2009.
  Collateralized by real estate mortgages held by the Company    $7,977,497    $9,006,076

 Various Notes with Interest at 0%
  Due in 2004                                                     1,172,720            --

 Various Notes with Interest at 0%
  Due 2003                                                               --       605,250

OTHER NOTES RECEIVABLE
 Interest at prime rate, receivable in monthly installments of
  principal and interest to amortize the original note over a
  period of 15 years, due January 2004, received in 2003                 --        29,350
                                                                  ---------     ---------
 Total Notes Receivable                                          $9,150,217    $9,640,676
                                                                  =========     =========

The prime rate of interest was 4.00% and 4.25% at December 31, 2003
and 2002, respectively.

The required annual principal receipts are as follows:

         Year ending December 31,                Amount
         ----------------------------------------------
         2004                               $ 4,617,704
         2005                                   176,206
         2006                                 2,388,174
         2007                                   104,233
         2008                                   110,487
         2009 and Thereafter (cumulative)     1,753,413
                                             ----------
                                            $ 9,150,217
                                             ==========







                         F-17



NOTE 5   REAL ESTATE HELD FOR DEVELOPMENT AND SALE
- --------------------------------------------------
Real estate held for development and sale as of December 31, 2003 and
2002 is summarized as follows:

                                        December 31,
                              ---------------------------
                                         2003              2002
                                       ---------------------------
                                                  
Undeveloped Land                      $ 1,002,370       $       --
Land and Land Development              10,560,186        7,356,603
Completed Houses                           97,025           97,025
                                       ----------        ---------
                                      $11,659,581       $7,453,628
                               ==========        =========

NOTE 6  NOTES PAYABLE
- ----------------------
Notes Payable consisted of the following:

                                                                December 31,
                                                      --------------------------
                                                                    2003         2002
                                                               --------------------------
                                                                        
MORTGAGE NOTES PAYABLE
 Mortgage notes payable are collateralized by real estate
  mortgages held by the respective lenders.  As of
  December 31, 2003 and 2002, mortgage notes payable
  consisted of the following:

 Payable monthly based on 20-year amortization
  interest floating based on the 30-day LIBOR Market Index
  rate plus 1.25%.  Principal balance due July 2012             $7,720,866     $7,910,343
 (See discussion of interest rate swap)

 Interest payable quarterly at 10%, principal and outstanding
  interest due October 2005                                      1,200,000      1,200,000

INDUSTRIAL REVENUE BONDS
 Industrial revenue bonds payable are collateralized by real
  estate.  Interest at 80.65% of prime rate, payable in monthly
  installments of principal and interest to amortize the
  original debt over a period of 18 years, due January 2004             --        124,729

LINE OF CREDIT
 A line of credit totaling $10,000,000 at December 31, 2003
  and $7,000,000 at December 31, 2002 payable on demand
  expiring July 2004, with interest at the lower of the
  30-DAY LIBOR Market Index rate plus 1.5% or 1% below
  the prime commercial lending rate                              1,209,085             --
                                                                ----------     ----------
                                                               $10,129,951     $9,235,072
                                                                ==========     ==========















                         F-18

The required annual principal payments on notes payable are as
follows:

         Year Ending December 31,              Amount
         --------------------------------------------
         2004                             $ 1,412,767
         2005                               1,419,382
         2006                                 236,282
         2007                                 254,009
         2008 and Thereafter (cumulative)   6,807,511
                                           ----------
                                          $10,129,951
                                           ==========

Interest expense was $715,774, $779,974, and $839,631, for 2003, 2002,
and 2001, respectively.

On April 8, 2002, the Company entered into an interest rate swap
agreement to mitigate the interest rate risk on the variable rate debt
of the Company.  The Company expects the cash flows related to the
swap to be highly effective in offsetting the changes in the cash
flows of the variable rate debt.

On July 1, 2002, the Company entered into an $8,000,000 long-term
financing arrangement.  The new variable rate debt is for a ten-year
term, which has been fixed at a rate of 7.35% through the use of an
interest rate swap and secured by approximately 3,000 acres of the
Company's most westerly lands.  The funds were used to pay off the
$7,860,000, 8.8% term note, which became due July 1, 2002.

The change in the fair value of the interest rate swap, from its
inception, has resulted in the recording of an accrued liability in
the amount of $992,580 and $1,245,626 at December 31, 2003 and 2002,
respectively.  The change in fair value, net of applicable taxes, in
the amount of $609,694 and $765,127 at December 31, 2003 and 2002,
respectively, has been recorded as accumulated other comprehensive
loss, a component of shareholders' equity.  This activity represents a
non-cash transaction.

In addition, the Company has placed its unsecured $10,000,000
revolving line of credit with the same financing source.  There was no
outstanding balance on the line of credit at December 31, 2002, which
was $7,000,000.  The line of credit agreement contains restrictive
covenants in regards to debt service coverage ratio and minimum
liquidity, both of which have been met as of and for the periods ended
December 31, 2003 and 2002.  The Company had letters of credit
outstanding totaling $2,576,942 and $1,632,897 at December 31, 2003
and 2002, respectively.  These letters of credit reserve capacity
under the line of credit and guarantee development work will be
completed.  The balance available to borrow on the line of credit was
$6,213,973 and $5,367,103 at December 31, 2003 and 2002, respectively.

NOTE 7  PENSION PLAN
- ---------------------
The Company maintains a defined benefit plan for all employees who
have attained the age of 21 and completed one year of service.  The
pension benefits are based primarily on years of service and the
average compensation for the highest five years during the final ten
years of employment.  The benefit formula generally provides for a
life annuity benefit.
                         F-19
NOTE 7  PENSION PLAN (CONTINUED)
- -------------------------------
The Company's net periodic pension cost included the following
components:
                                                           December 31,
                                              ---------------------------------
                                                         2003         2002        2001
                                                       --------     -------     --------
                                                                       
Service Cost                                           $192,179    $182,503     $157,384
Interest Cost on Projected Benefit Obligation           300,656     311,793      286,748
Actual Return on Plan Assets                           (894,153)   ( 32,453)    (719,855)
Net Amortization                                        510,320    (405,033)     295,619
                                                        -------     -------      -------
Net Periodic Pension Cost                              $109,002    $ 56,810     $ 19,896
                                                        =======     =======      =======

The change in projected benefit obligation is as follows:
                                                                      December 31,
                                                                ------------------------
                                                                   2003          2002
                                                                ------------------------
Benefit Obligation at Beginning of Year                        $ 4,749,486   $ 4,309,898
Service Cost                                                       192,179       182,503
Interest Cost                                                      300,656       311,793
Actuarial Loss                                                     159,361       286,602
Benefits and Plan Expenses Paid                                 (  375,269)   (  585,142)
Plan Amendments                                                         --       243,832
                                                                  --------     ---------
  Benefit Obligation at End of Year                            $ 5,026,413   $ 4,749,486
                                                                 =========     =========
The change in plan assets is as follows:
 Fair Value of Plan Assets at Beginning of Year                $ 4,570,692   $ 5,123,381
 Actual Return on Plan Assets                                      894,153        32,453
 Employer Contribution                                                  --            --
 Plan Expenses Paid                                             (   78,722)   (   82,195)
 Benefits Paid                                                  (  296,547)   (  502,947)
                                                                 ---------     ---------
  Fair Value of Plan Assets at End of Year                     $ 5,089,576   $ 4,570,692
                                                                 =========     =========
The accrued pension asset consists of the following:
 Plan (Liability) Assets In Excess of Projected
  Benefit Obligation                                           $   63,163    $(  178,794)
 Unrecognized Prior Service Cost                                  204,657        225,875
 Unrecognized Net Loss (Gain)                                   (  91,813)       245,415
 Unrecognized Transition Obligation                             (  60,417)   $(   67,904)
                                                                 --------      ---------
  Prepaid Pension Asset                                        $  115,590    $   224,592
                                                                 ========      =========


Accumulated benefits obligation as of December 31, 2003, was $4,545,011.

The actuarial assumptions made to determine the projected benefit
obligation and the fair value of plan assets are as follows:

                                                     December 31,
                                                    ------------
                                                    2003    2002
                                                    ----    ----
         Weighted Average Discount Rate             6.0%    6.5%
         Weighted Average Asset Rate of Return      9.0%    9.0%
         Compensation Scale                         5.0%    5.0%











                         F-20


OTHER PENSION PLAN DISCLOSURE INFORMATION
- -----------------------------------------
Amortization Periods:

  The transition liability (asset) re-established in January 1,
  2001 is being amortized in level amounts over 11.07 years.

  The excess of the unrecognized (gain) or loss (if any) over the
  larger of 10% of the projected benefit obligation or 10% of the
  market related value of assets is amortized in level amounts over
  13.89 years.

  The prior service cost re-established on January 1, 2001 is being
  amortized in level amounts over 11.07 years.

  The prior service cost established on January 1, 2002 is being
  amortized in level amounts over 11.67 years.

Funding Policy:

  Periodic employer contributions are made in conformance with minimum
  funding requirements and maximum deductible limitations.

Benefit Payments and Other Disbursements:

  During the measurement period, disbursements from plan assets were
  as follows:

            Benefit Payments                      $296,547
            Administrative Expenses                 78,722
                                                   -------
            Total                                 $375,269
                                                   =======
Unrecognized (Gain) or Loss:

  The unrecognized (gain) or loss determined subsequent to last year's
  measurement date is determined as follows:

     Liability loss determined from the
      January 1, 2003 census and included
      this year's net periodic cost:             $  29,292

     Asset gain occurring over the
      measurement period:                         (496,589)

     Loss due to Assumption Change
      effective as of December 31, 2003            130,069
                                                   -------
       Total unrecognized gain:                  $(337,228)
                                                   =======









                         F-21


NOTE 7 PENSION PLAN (CONTINUED)
- ------------------------------
Plan Assets:

 The plan's weighted average asset allocations at December 31, 2003 and
December 31, 2002 by asset category are as follows:

                               December 31, 2003   December 31, 2002
                               -----------------   -----------------

  Equity Securities:                   51%                50%

  Fixed Income Securities:             41%                46%

  Cash and Money Market Funds:          8%                 4%
                                      ---                ---
  Total                               100%               100%
                                      ===                ===

Cash Flows:

  Contributions

     The Company expects the plan to be fully funded for 2004.  As a
     result, no contribution is anticipated during this period.

  Estimated Future Benefit Payments

     The following benefit payments, which reflect expected future
     service as appropriate, are expected to be paid.

                                    2004        $  244,133
                                    2005           262,284
                                    2006           263,648
                                    2007           270,468
                                    2008           290,207
                              Years 2009-2013   $2,279,463

  The following assumptions have been made regarding estimated
  benefit payments:

     All currently retired participants survive through 2013.

     All currently active participants survive and retire on their
     normal retirement dates.

     Compensation is assumed to increase at the rate of 5% per year
     for active participants to their normal retirement dates.









                         F-22



NOTE 8   POST-RETIREMENT BENEFIT PLANS OTHER THAN PENSIONS
- ----------------------------------------------------------
The Company sponsors two defined benefit post-retirement plans of
certain health care and life insurance benefits for eligible retired
employees.  All full-time employees become eligible to receive life
benefits if they retire after reaching age 55 with 20 or more years of
service, and supplemental medicare benefits if they reach age 65 and
20 years of service.  The post-retirement health care plan is
contributory, with retiree contributions adjusted annually; the life
insurance plan is non-contributory up to $5,000 of coverage.

The accounting for the health care plan reflects caps on the amount of
annual benefit to be paid to retirees as stipulated by the plan.  The
Company pays for the plan as costs are incurred.

The Company recognizes post-retirement expenses in accordance with
adopted SFAS No. 106, "Employers' Accounting for Post-retirement
Benefits Other Than Pensions," which requires that expected costs of
post-retirement benefits be charged to expense during the years the
employees render service.  The Company elected to amortize the
unfunded obligation measured at adoption of SFAS No. 106 over a period
of 20 years.  The effect of this amortization expense recognized in
2003, 2002, and 2001 was $36,000, $36,000, and $64,590, respectively.
The accrued post-retirement benefit cost reflected in the consolidated
balance sheet at December 31, 2003 and 2002 was $125,232 and $119,609,
respectively.

NOTE 9  STOCK OPTION PLAN
- -------------------------
The Company maintains a stock option plan ("the Plan") pursuant to
which 500,000 shares of the Company's common stock may be issued.  The
Plan in place was approved at the April 25, 2001 Shareholders' meeting
and replaces the previous stock option plan which expired in 2000.
Provisions under both plans are materially the same.  Under the Plan,
the option exercise price equals the stock market price on the date of
grant.  The options vest over five years and all expire after ten
years.  The Plan provides for the grant of (1) incentive stock options
which satisfy the requirements of Internal Revenue Code (IRC) Section
422, and (2) non-qualified options which are not entitled to favorable
tax treatment under IRC Section 422.  No optionee may exercise
incentive stock options in any calendar year for shares of common
stock having a total market value of more than $100,000 on the date
of grant (subject to certain carryover provisions).  In connection
with the grant of non-qualified options, a stock appreciation right
for each share covered by the option may also be granted.  The stock
appreciation right will entitle the optionee to receive a supplemental
payment, which may be paid in whole or in part in cash or in shares of
common stock equal to a portion of the spread between the exercise
price and the fair market value of the underlying share at the time
of exercise.










                         F-23

NOTE 9  STOCK OPTION PLAN (CONTINUED)
- ------------------------------------
A summary of the status of the Company's stock options for the three
years ended December 31, 2003 and changes during the years then ended
is as follows:

                                  2003               2002              2001
                           ----------------  ----------------  -----------------
                                             Wtd Avg           Wtd Avg            Wtd Avg
                                    Shares  Ex Price   Shares Ex Price   Shares  Ex Price
                                    ------- --------  ------- --------   ------- --------
                                                               
Outstanding at beginning of year     94,000   $17.31   46,000   $14.45   220,000   $15.95
Granted                              58,000   $20.12   48,000   $20.05    46,000   $14.45
Exercised                           (17,600)  $14.70       --           (220,000)  $15.95
Expired                                  --                --                 --
                                    -------            ------            -------
Outstanding at end of year          134,400   $18.86   94,000   $17.31    46,000   $14.45
                                    =======    =====   ======    =====   =======    =====
Exercisable at end of year           10,400   $19.19    9,200   $14.45        --
                                     ======    =====   ======            =======    =====
Weighted average fair value of
 options granted during the year      $6.56             $7.16              $5.08
                                     ======            ======            =======


Stock appreciation rights totaling 58,000, 48,000 and 46,000 were
issued in 2003, 2002, and 2001, respectively.  Stock appreciation
rights outstanding at December 31, 2003, 2002, and 2001 were 134,400,
94,000, and 46,000, respectively.

Of the 134,400 options outstanding at December 31, 2003, 10,400 of
them were exercisable and they had a contractual life of 8.25 years.

Of the 220,000 options exercised in 2001, 170,205 options were
surrendered in payment of the cash exercise price of the remaining
options.  The option exercise and accrual of stock appreciation rights
resulted in compensation expense of $660,834 and $595,862 in 2001,
respectively, included in general and administrative expenses.
Additionally, the exercise resulted in $605,192 of income tax benefit,
of which $132,297 was recorded as an addition to additional paid-in
capital.

The Company accounts for stock options using the intrinsic value
method.  SFAS No. 123, "Accounting for Stock-Based Compensation,"
provides an alternative method of accounting for stock-based
compensation, which establishes a fair value method of accounting for
employee stock options.  The Company uses the Black-Scholes option
pricing model to estimate the grant date fair value of its option
grants.













                         F-24



NOTE 9  STOCK OPTION PLAN (CONTINUED)
- ------------------------------------
Had compensation cost for these options been determined in
accordance with SFAS No. 123, the Company's net earnings (loss) and
earnings (loss) per share would have been as follows:

                                            2003         2002         2001
                                       ----------   ----------      -------
                                                                   
Net Earnings (Loss):
 As Reported                                   $13,194,395  $ 9,285,841    $(635,896)
(Deduct) Add:
 Difference in Stock-Based Compensation
  Determined Under Fair Value Based Method
  And Intrinsic Value Method                       326,648   (   45,009)     404,847
                                                ----------    ---------      -------
 Pro Forma                                     $13,521,043  $ 9,240,832    $(231,049)
                                                ==========    =========      =======
Basic and Diluted Earnings (Loss)
 Per Share:
  As Reported                                        $2.35        $1.65       $(0.11)
  Pro Forma                                          $2.41        $1.65       $(0.04)

The fair value of stock options was estimated at the date of grant
using a Black-Scholes option pricing model with the following
assumptions:
                                         2003       2002       2001
                                         ----       ----       ----
            Risk Free Interest Rate      3.11%      4.34%      4.76%
            Dividend Yield                .99%       1.0%      1.38%
            Volatility                  28.77%     29.10%     29.47%
            Expected Option Life        7 years    7 years    7 years

NOTE 10  EARNINGS PER SHARE
- ---------------------------
Basic earnings per common share were computed by dividing income by
the weighted average number of shares of common stock outstanding
during the year.  Diluted earnings per common share were determined
based on the assumption of the conversion of stock options using the
treasury stock method at average market prices for the periods.

                                               2003          2002          2001
                                          ---------     ---------      ---------
                                                                    
Income (Loss) Available to Common Shareholders:  $13,194,395    $9,285,841    $(  635,896)
                                                   =========     =========      =========
Weighted Average Shares Outstanding                5,619,245     5,615,579      5,587,752
Common shares Applicable to Stock Options Using
 the Treasury Stock Method                            34,123        11,542            --
                                                   ---------     ---------      ---------
  Total Shares Applicable to Diluted Earnings
    Per Share                                      5,653,368     5,627,121      5,587,752
                                                   =========     =========      =========
Earnings Per Share
   Basic                                               $2.35         $1.65         $(0.11)
                                                        ====          ====           ====
   Diluted                                             $2.33         $1.65         $(0.11)
                                                        ====          ====           ====











                         F-25


NOTE 11  COMMITMENTS AND CONTINGENCIES
- --------------------------------------
The Company leases certain equipment, land and improvements under
operating leases.

Minimum future rental payments under non-cancelable operating leases
having remaining terms in excess of one year as of December 31, 2003,
are summarized as follows:

         Year Ending December 31,                    Amounts
         -----------------------                    --------
         2004                                     $  429,109
         2005                                        406,317
         2006                                        386,959
         2007                                        320,107
         2008                                        406,127
         2009 and Thereafter (Cumulative)          6,331,100
                                                   ---------
                                                  $8,279,719
                                                   =========

Rental expense under all operating leases amounted to $512,057,
$501,707, and $523,866, for the years ended December 31, 2003, 2002,
and 2001, respectively.

Additionally, the Company, as lessor, leases certain land, buildings
and improvements under operating leases.

Minimum future rental receipts under non-cancelable operating leases
having remaining terms in excess of one year as of December 31, 2003,
are summarized as follows:

         Year Ending December 31,                      Amounts
         -----------------------                     ---------
         2004                                      $ 3,489,012
         2005                                        3,530,498
         2006                                        3,459,327
         2007                                        3,462,321
         2008                                        3,455,136
         2009 and Thereafter (Cumulative)           74,574,963
                                                    ----------
                                                   $91,971,257
                                                    ==========

Rental income under all operating leases amounted to $3,275,342,
$2,061,833, and $1,830,689, for the years ended December 31, 2003,
2002, and 2001, respectively.

NOTE 12  BUSINESS SEGMENT DATA
- ------------------------------
The Company primarily operates in three business segments: real
estate, income properties and golf.  Real estate operations include
commercial real estate, real estate development, residential, leasing
properties for oil and mineral exploration, and forestry operations.






                         F-26




NOTE 12  BUSINESS SEGMENT DATA (CONTINUED)
- -----------------------------------------
The Company evaluates performance based on profit or loss from
operations before income taxes.  The Company's reportable segments are
strategic business units that offer different products.  They are
managed separately because each segment requires different management
techniques, knowledge and skills.

Information about the Company's operations in different segments for
each of the three years ended December 31 is as follows (amounts in
thousands):

                                 2003              2002               2001
                             --------------------------------------------
                                                                  
Revenues:
 Real Estate                          $25,496            $20,627           $ 3,352
 Income Properties                      3,276              2,062             1,831
 Golf                                   4,373              4,227             4,065
 General, Corporate and Other           1,746              1,615             2,102
                                       ------             ------            ------
                                      $34,891            $28,531           $11,350
                                       ======             ======            ======
Income (Loss):
 Real Estate                          $22,774            $16,350           $ 1,252
 Income Properties                      2,681              1,662             1,403
 Golf                                 ( 1,185)            (1,264)           (1,329)
 General, Corporate and Other         ( 2,842)            (1,792)           (2,193)
                                       ------             ------            ------
                                      $21,428            $14,956           $(1,167)
                                       ======             ======            ======
Identifiable Assets:
 Real Estate                          $18,635            $15,774           $15,171
 Income Properties                     41,434             25,243            22,643
 Golf                                  10,026             10,410            10,769
 General, Corporate and Other          27,811             22,899            13,634
                                       ------             ------            ------
                                      $97,906            $74,326           $62,217
                                       ======             ======            ======
Depreciation and Amortization:
 Real Estate                          $   114            $    46           $    10
 Income Properties                        548                330               303
 Golf                                     410                408               403
 General, Corporate and Other              48                 23                23
                                       ------             ------            ------
                                      $ 1,120            $   807           $   739
                                       ======             ======            ======
Capital Expenditures:
 Real Estate                          $    29            $   141           $   133
 Income Properties                     15,478              3,156            16,444
 Golf                                      18                 50               801
 General, Corporate and Other              65                124                74
                                       ------             ------            ------
                                      $15,590            $ 3,471           $17,452
                                       ======             ======            ======














                         F-27


NOTE 12  BUSINESS SEGMENT DATA (CONTINUED)
- -----------------------------------------
Income represents income (loss) from continuing operations before
income taxes.  Identifiable assets by industry are those assets that
are used in the Company's operations in each industry.  General
corporate assets and assets used in the Company's other operations
consist primarily of cash, investment securities, notes receivable and
property, plant and equipment.

































































                         F-28


                                         QUARTERLY FINANCIAL DATA (Unaudited)


                                                THREE MONTHS ENDED
                            March 31,                June 30,            September 30,           December 31,
                      ---------------------   ---------------------   --------------------  ----------------------
                         2003       2002        2003        2002         2003       2002       2003       2002
                      ---------  ----------   ---------  ----------   ---------  ---------  ----------  ----------
                                                                               
                      $          $           $          $            $          $          $           $
Income:
Real Estate Operations:
 Real Estate Sales
  Sales and Other
   Income             3,318,469     726,832     720,303   5,280,343    807,471   7,211,979  20,649,421  $7,407,725
  Costs and Other
   Expenses          (  662,861) (  474,960) (  574,176) (  890,198)(  443,087) (1,237,675)( 1,041,500) (1,674,534)
                      ---------   ---------   ---------   ---------  ---------   ---------  ----------   ---------
                      2,655,608     251,872     146,127   4,390,145    364,384   5,974,304  19,607,921   5,733,191
                      ---------   ---------   ---------   ---------  ---------   ---------  ----------   ---------
Income Properties
 Leasing Revenues and
  Other Income          715,737     464,984     826,385     464,434    877,368     619,900     856,572     513,234
 Costs and Other
  Expenses           (  130,470) (  102,751) (  147,161) (   97,357)  (145,132)  (  97,694) (  171,757) (  102,355)
                      ---------   ---------    --------   ---------    -------    --------   ---------   ---------
                        585,267     362,233     679,224     367,077    732,236     522,206     684,815     410,879
                      ---------   ---------    --------   ---------    -------    --------   ---------   ---------
Golf Operations
 Sales and Other
  Income              1,272,718   1,290,212   1,173,970   1,142,487    847,139     822,747   1,079,587     971,162
 Costs and Other
  Expenses           (1,361,788) (1,322,594) (1,471,569) (1,393,440)(1,345,242)(1,285,171)  (1,380,179) (1,489,250)
                      ---------   ---------   ---------   ---------  ---------   --------    ---------   ---------
                     (   89,070) (   32,382) (  297,599) (  250,953)(  498,103)(  462,424)  (  300,592) (  518,088)
                      ---------   ---------   ---------   ---------  ---------   --------    ---------   ---------

Total Real Estate
 Operations           3,151,805     581,723     527,752   4,506,269    598,517  6,034,086   19,992,144   5,625,982

Profit on Sales of
 Other Real Estate
  Interests             359,112          --     164,039     149,866     12,500      1,000       96,224          --

Interest and Other
 Income                 257,007     228,973     228,583     236,995    209,393    244,286      419,091     753,565
                      ---------   ---------    --------   ---------  ---------  ---------    ---------   ---------
                      3,767,924     810,696     920,374   4,893,130    820,410  6,279,372   20,507,459   6,379,547
General and
 Administrative
  Expenses           (  977,534) (  998,754) (1,291,073) (  791,927)(  997,333)(  738,023) ( 1,322,094) (  878,471)
                      ---------   ---------   ---------   ---------  ---------  ---------    ---------   ---------
Income (Loss) Before
 Income Taxes         2,790,390  (  188,058) (  370,699)  4,101,203 (  176,923) 5,541,349   19,185,365   5,501,076

Income Taxes         (1,057,691)     68,829     138,643  (1,515,830)    66,323 (2,082,945) ( 7,381,013) (2,139,783)
                      ---------   ---------   ---------   ---------  ---------  ---------   ----------   ---------
Net Income (Loss)     1,732,699  (  119,229) (  232,056)  2,585,373 (  110,600) 3,458,404   11,804,352   3,361,293
               =======================================================================

Per Share Information
 Basic and Diluted       $0.31       $(0.02)     $(0.04)      $0.46     $(0.02)      0.62        $2.10       $0.59
                      =========   =========   =========   =========  =========  =========   ==========   =========

























                          F-29