ST JOE Co Releases Strong Q3 10-Q Report

The St. Joe Company, a prominent real estate development and management firm based in Northwest Florida, has released its Form 10-Q report for the third quarter of 2023. The report highlights significant financial growth and robust operational performance across its various business segments, despite facing macroeconomic challenges.

Financial Highlights

• Total Revenue: $302.5 million, reflecting a significant increase from the previous year's $190.7 million, driven by strong performance across real estate, hospitality, and leasing segments.
• Operating Income: $73.4 million, up from $51.2 million in the prior year, indicating improved operational efficiency and cost management.
• Net Income: $64.5 million, compared to $42.8 million last year, showcasing robust profitability and effective financial management.
• Net Income Per Share: $1.11, an increase from $0.73, highlighting enhanced shareholder value and earnings growth.

Business Highlights

Revenue Segments

The St. Joe Company operates in three primary segments: residential, hospitality, and commercial. The residential segment includes the development and sale of homesites and related infrastructure. The hospitality segment encompasses hotels, resorts, clubs, vacation rentals, marinas, and other operations. The commercial segment involves retail, office, self-storage, light industrial, multi-family, senior living, and timber operations.

Geographical Performance

All of the Company's real estate assets are concentrated in Northwest Florida, with approximately 86% located in Florida’s Bay, Gulf, and Walton counties. The Company attributes strong demand across its segments to the continued growth of Northwest Florida, driven by the region’s high quality of life, natural beauty, and outstanding amenities.

Sales Units

The Latitude Margaritaville Watersound JV completed 502 home sale transactions during the nine months ended September 30, 2023. As of September 30, 2023, the JV had 632 homes under contract and has completed 865 home sale transactions of the total estimated 3,500 homes planned in the community.

New Production Launches

The Lodge 30A JV completed construction of an 85-room hotel in the first quarter of 2023. Additionally, the Pier Park Resort Hotel JV completed construction of a 255-room hotel in the second quarter of 2023.

Future Outlook

Despite macroeconomic challenges such as inflation, rising interest rates, and supply chain disruptions, demand across the Company's segments remains strong. The Company anticipates continued growth in Northwest Florida due to its attractive living conditions and evolving workplace flexibility.

SEC Filing: ST JOE Co Releases Strong Q3 [ NYSE:JOE ] - 10-Q - Oct. 25, 2023