The St. Joe Company (NYSE: JOE ) has evolved significantly since 2021 when I last profiled the stock . While returns have been positive, returns have lagged the market as rising rates have put somewhat of a damper onAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other tha ...

("Company†) releases the latest issue of Watersound Lifestyle, the Watersound Club member magazine. The biannual magazine provides insight into club amenities and highlights interesting stories from the community. In this issue readers can explore the newly renovated Shark's Tooth Clubhouse; learn more about coastal conservation efforts; and familiarize themselves with the individuals whose passions and talents help defin. PANAMA CITY BEACH, Fla.--(BUSINESS WIRE)--The St. Joe Company (NYSE: JOE) ...

Financial Data and Key Metrics Changes - The company reported a 16% growth in revenue and a 20% growth in net income for Q2 2025, driven by a 27% increase in real estate revenue [7][8] - Recurring revenue now constitutes 63% of total revenue, marking a significant transformation for the company [8] Business Line Data and Key Metrics Changes - Leasing revenue increased by 11% to a quarterly record, while hospitality revenue rose by 10% to a quarterly record [8] - Capital expenditures for growth amounted to $36.5 million, with $10.1 million allocated for share repurchase and $8.1 million for cash dividends [9] Market Data and Key Metrics Changes - Bay and Walton Counties are among the fastest-growing counties in Florida, with continued in-migration expected [15] - The company is seeing good traffic in sales centers, indicating a positive market response despite challenges in mortgage interest rates [21] Company Strategy and Development Direction - The company's strategy focuses on developing scalable master-planned residential communities and businesses, enhancing the ecosystem in Northwest Florida [6] - The company is transitioning from a transactional land sales model to a diversified real estate operating model with multiple recurring revenue streams [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing growth in the region and the potential for the housing market to outperform national trends [15] - The company is committed to capital allocation strategies that prioritize shareholder returns while continuing to grow [16] Other Important Information - The Bay County Commission approved a plan for over 3,000 residential units and 400,000 square feet of commercial space [10] - Delta Airlines announced year-round daily nonstop flights between New York City and Northwest Florida, expanding market reach [11] Q&A Session Summary Question: Would the board consider reviewing current access policies for hotel guests? - Management stated there are no plans to change the current policy regarding hotel guest access to club amenities [13] Question: Can you provide details on capital distribution decisions at Latitude Margaritaville? - The decision on capital distribution is based on business performance and infrastructure needs, with no specific formula in place [14] Question: What is the acreage contributed to the Margaritaville joint venture? - Approximately 2,600 acres have been contributed to the Margaritaville joint venture with Minto [14] Question: What is the outlook for population growth in the area? - Management expects continued in-migration and growth in Bay and Walton Counties, with the housing market performing better than many other metro areas [15] Question: What is the current status of memberships? - A slight decrease in memberships was noted due to increased entry fees and a recalibration of membership types, but new memberships are still being added [17] Question: What is the main bottleneck to selling more than 1,000 home sites? - The primary challenge is the need for relief in mortgage interest rates to encourage consumer confidence in making purchases [20] Question: What is the timeline for the West Bay Bridge project? - The project is in the planning stages with the Florida Department of Transportation, but no exact timeframe for completion has been established [35] Question: How does the company view offers to buy land? - The company is open to selling non-strategic land at the right price but is cautious about selling strategic land holdings [38] Question: When will the new marina start construction? - Construction has begun, but the company is awaiting all necessary permits before proceeding further [40] Question: What are the earnings potential and growth goals for the new brokerage? - The brokerage aims to expand and target new home sales, with ambitious goals for growth in the agency [41][43]

Financial Data and Key Metrics Changes - The company reported a 16% growth in revenue and a 20% growth in net income for Q2 2025, driven by a 27% increase in real estate revenue [7] - Recurring revenue now constitutes 63% of total revenue, marking a significant transformation for the company [8] - Capital expenditures for growth amounted to $36.5 million, with $10.1 million allocated for share repurchase and $8.1 million for cash dividends [8] Business Line Data and Key Metrics Changes - Leasing revenue increased by 11% and hospitality revenue rose by 10%, both reaching quarterly records [8] - The company closed a total of 482 newly contracted homesites during the quarter, with no single community driving this number [19] Market Data and Key Metrics Changes - Bay and Walton Counties are among the fastest-growing counties in Florida, with continued in-migration expected [14] - The company anticipates that the housing market in the area may perform better than the national trend [14] Company Strategy and Development Direction - The company is transitioning from a transactional land sales model to a diversified real estate operating model with multiple recurring revenue streams [5] - The strategy focuses on developing scalable master-planned residential communities and businesses that generate recurring revenue [6] - The company is engaged in discussions with a large-scale builder regarding the Pigeon Creek project, which could accelerate residential segment growth [45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing growth in the region and the potential for the housing market to outperform national trends [14] - The company is actively planning for future infrastructure expansion to keep pace with growth [21] - Management emphasized the importance of capital allocation and the potential to return significant capital to shareholders while continuing to grow [16] Other Important Information - The company launched Watersound Real Estate, a boutique real estate brokerage, to complement existing businesses [9] - The Florida governor approved $414 million in bonds for a new FSU Health teaching research hospital, which is expected to have a transformational impact on the region [44] Q&A Session Summary Question: Would the board consider reviewing current access policies for hotel guests? - The board currently has no plans to change the access policy [12] Question: Can you provide details on capital distribution decisions at Latitude Margaritaville? - Decisions are based on business performance and infrastructure needs, with no specific formula [12] Question: What is the acreage contributed to the Margaritaville joint venture? - Approximately 2,600 acres have been contributed [12] Question: What is the outlook for population growth in the area? - Bay and Walton Counties continue to see strong in-migration, with expectations for continued growth [14] Question: Can the company return close to $100 million annually to shareholders? - Capital allocation is reviewed daily, and while it is a priority, specific future returns cannot be guaranteed [16] Question: What is the status of memberships? - A slight decrease in memberships was noted due to increased entry fees, but new memberships are still being added [17] Question: What is the main bottleneck to selling more than 1,000 homesites? - Relief in mortgage interest rates would help accelerate sales beyond the current average [20] Question: What is the timeline for the West Bay Bridge project? - The project is in the planning stages with the Florida Department of Transportation, but no exact timeframe is available [33] Question: How does the company view offers to buy land? - The company is open to selling non-strategic land at the right price but is cautious about strategic holdings [38] Question: When will the new marina start construction? - Construction has begun, but the company is waiting for all permits to be issued before proceeding [40] Question: What are the earnings potential and strategy for the new brokerage? - The brokerage aims to expand and target new home sales, with ambitious goals for growth [41] Question: What is the goal for growth rate of recurring revenues in the next three to five years? - Specific growth targets are project-dependent, but the focus remains on increasing recurring revenue [43]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, covering balance sheets, income, equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20-%20June%2030,%202025%20and%20December%2031,%202024) Total assets and equity increased from December 31, 2024, to June 30, 2025, while total liabilities decreased, with real estate and joint venture investments rising and debt falling | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change (in millions) | | :----- | :--------------------------- | :------------------------------- | :-------------------- | | Total assets | $1,548.4 | $1,538.6 | +$9.8 | | Total liabilities | $798.5 | $801.8 | -$3.4 | | Total equity | $750.0 | $736.7 | +$13.2 | | Investment in real estate, net | $1,048.9 | $1,040.4 | +$8.4 | | Investment in unconsolidated joint ventures | $73.9 | $66.5 | +$7.4 | | Debt, net | $427.3 | $437.8 | -$10.5 | - The company's consolidated joint ventures' assets and liabilities are presented separately, indicating that their liabilities generally do not have recourse to the company's general credit, except for specific covenants and guarantees[11](index=11&type=chunk) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20-%20Three%20and%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) The company reported significant revenue and net income growth for both the three and six months ended June 30, 2025, compared to the same periods in 2024, driven by increases across all revenue segments | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :-------------------- | :------------------------------- | :------------------------------- | :----------- | :----------------------------- | :----------------------------- | :----------- | | Total revenue | $129.1 | $111.6 | +15.7% | $223.3 | $199.4 | +12.0% | | Operating income | $37.0 | $32.6 | +13.3% | $53.9 | $48.6 | +10.9% | | Net income attributable to the Company | $29.5 | $24.5 | +20.4% | $47.0 | $38.4 | +22.3% | | Basic EPS | $0.51 | $0.42 | +21.4% | $0.81 | $0.66 | +22.7% | | Diluted EPS | $0.51 | $0.42 | +21.4% | $0.81 | $0.66 | +22.7% | - Real estate revenue increased by **27.0%** and hospitality revenue by **10.4%** for the three months ended June 30, 2025, contributing significantly to overall revenue growth[15](index=15&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20-%20Three%20and%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Total comprehensive income attributable to the Company increased for both the three and six months ended June 30, 2025, despite other comprehensive losses primarily from interest rate swaps | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------- | :----------------------------- | :----------------------------- | :----------- | | Net income | $29.8 | $24.5 | +21.4% | $46.4 | $37.6 | +23.4% | | Total other comprehensive (loss) income, net of tax | $(0.3) | $(0.2) | -65.5% | $(0.8) | $0.1 | -738.9% | | Total comprehensive income attributable to the Company | $29.3 | $24.4 | +20.2% | $46.5 | $38.5 | +20.7% | - Other comprehensive income was negatively impacted by interest rate swaps and reclassification of net realized gains, resulting in a net loss for both periods in 2025[17](index=17&type=chunk) [Condensed Consolidated Statements of Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Equity%20-%20Three%20and%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Total equity increased from December 31, 2024, to June 30, 2025, driven by net income, partially offset by dividends paid and common stock repurchases | Metric (in millions) | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total stockholders' equity | $738.8 | $724.3 | +$14.5 | | Retained earnings | $484.9 | $454.2 | +$30.7 | | Treasury stock at cost | $(16.3) | $0 | $(16.3) | - The company repurchased **359,014 shares** of common stock for **$16.2 million** during the six months ended June 30, 2025, and paid **$16.3 million** in dividends (**$0.28 per share**)[24](index=24&type=chunk)[159](index=159&type=chunk)[161](index=161&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20-%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) Net cash provided by operating activities increased significantly, while net cash used in investing activities decreased, and net cash used in financing activities increased due to stock repurchases and higher debt principal payments | Metric (in millions) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------- | | Net cash provided by operating activities | $60.1 | $50.4 | +19.1% | | Net cash used in investing activities | $(15.9) | $(28.5) | +44.3% | | Net cash used in financing activities | $(43.7) | $(21.4) | -104.4% | | Net increase in cash, cash equivalents and restricted cash | $0.5 | $0.5 | -3.3% | - The increase in net cash used in financing activities was primarily driven by **$16.3 million** in common stock repurchases and **$38.0 million** in principal debt payments in 2025, compared to no repurchases and **$7.0 million** in principal payments in 2024[28](index=28&type=chunk)[384](index=384&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the condensed consolidated financial statements, covering the company's operations, accounting policies, investments, debt, equity, and various commitments and contingencies [1. Nature of Operations](index=14&type=section&id=1.%20Nature%20of%20Operations) The St. Joe Company is a diversified Florida real estate development, asset management, and operating company, with most of its assets and operations concentrated in Northwest Florida, primarily within 15 miles of the Gulf - The company operates in three reportable segments: residential, hospitality, and commercial[34](index=34&type=chunk) - Approximately **87%** of the company's real estate is located in Florida's Bay, Gulf, and Walton counties, with **90%** of land holdings within fifteen miles of the Gulf[33](index=33&type=chunk) [2. Summary of Significant Accounting Policies](index=14&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) This section outlines the basis of presentation for the unaudited interim condensed consolidated financial statements, including principles of consolidation for majority-owned subsidiaries and variable interest entities, and the equity method for unconsolidated joint ventures - The company consolidates entities where it has a majority voting interest or is the primary beneficiary of a Variable Interest Entity (VIE), and uses the equity method for unconsolidated joint ventures where it has significant influence but not control[35](index=35&type=chunk)[36](index=36&type=chunk) - All of the Company's real estate assets are concentrated in Northwest Florida, exposing it to regional economic and environmental risks[

[Executive Summary](index=1&type=section&id=Executive%20Summary) The St. Joe Company reported strong Q2 2025 financial performance with significant revenue and net income growth across all segments, alongside strategic capital allocation and future development plans [Second Quarter 2025 Highlights](index=1&type=section&id=Highlights%20for%20the%20second%20quarter%20of%202025) The St. Joe Company achieved solid organic growth in Q2 2025, with significant increases in revenue and net income across all segments, supported by strategic capital allocation | Metric | Q2 2025 | Q2 2024 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Net Income Attributable to Company | $29.5M | $24.5M | 20% | | EPS | $0.51 | $0.42 | 21.4% | | Total Revenue | $129.1M | $111.6M | 16% | | Real Estate Revenue | $43.8M | $34.5M | 27% | | Hospitality Revenue | $68.8M | $62.3M | 10% | | Leasing Revenue | $16.5M | $14.8M | 11% | - Homesite closings volume **increased by 21% to 225 homesites** from 186 homesites in Q2 2025[3](index=3&type=chunk) - Capital allocation in Q2 2025 included **$36.5 million in capital expenditures**, **$8.1 million in cash dividends**, **$10.5 million in common stock repurchases**, and **$7.7 million in debt repayment**[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Jorge Gonzalez noted solid organic growth driven by real estate and recurring revenue, emphasizing strategic capital allocation and long-term development plans, including the Pigeon Creek DSAP approval - The Company achieved **16% growth in revenue** and **20% growth in net income**, led by **27% growth in real estate revenue**[2](index=2&type=chunk) - Strategic plan focuses on growing recurring revenue, evidenced by **10% growth in hospitality revenue** and **11% growth in leasing revenue**, both reaching single quarterly records[2](index=2&type=chunk) - The Pigeon Creek Detailed Specific Area Plan (DSAP) was approved, adding **3,330 residential units** and **450,000 square feet of commercial development**, marking the tenth approved DSAP within The Bay-Walton Sector Plan[5](index=5&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Second%20Quarter%20and%20First%20Half%202025%20Results) The company reported strong consolidated revenue growth for both the second quarter and first half of 2025, with all key segments—real estate, hospitality, and leasing—contributing to the increase, alongside improved net income and EBITDA [Consolidated Results Overview](index=2&type=section&id=Consolidated%20Results%20Overview) The company reported strong consolidated revenue growth for both the second quarter and first half of 2025, with all key segments—real estate, hospitality, and leasing—contributing to the increase Consolidated Revenue Growth (YoY) | Metric | Q2 2025 Revenue | Q2 2024 Revenue | Q2 Growth (%) | H1 2025 Revenue | H1 2024 Revenue | H1 Growth (%) | | :------------------ | :-------------- | :-------------- | :------------ | :-------------- | :-------------- | :------------ | | Total Consolidated | $129.1M | $111.6M | 16% | $223.3M | $199.4M | 12% | | Real Estate | $43.8M | $34.5M | 27% | $82.1M | $68.7M | 20% | | Hospitality | $68.8M | $62.3M | 10% | $108.4M | $101.6M | 7% | | Leasing | $16.5M | $14.8M | 11% | $32.8M | $29.1M | 13% | [Unconsolidated Joint Ventures Performance](index=2&type=section&id=Unconsolidated%20Joint%20Ventures%20Performance) The company's unconsolidated joint ventures, accounted for using the equity method, generated substantial revenue and contributed significantly to the company's equity in income, reflecting their importance to the core business strategy Unconsolidated Joint Ventures Financials (YoY) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------------------------ | :------ | :------ | :------ | :------ | | JV Revenue | $89.9M | $94.1M | $213.2M | $189.9M | | Equity in Income from Unconsolidated JVs | $7.5M | $5.4M | $17.7M | $12.8M | - For the first six months of 2025, unconsolidated joint ventures revenue **increased by 12.3% to $213.2 million** from $189.9 million in 2024[9](index=9&type=chunk) - Equity in income from unconsolidated joint ventures **increased by 38.9% to $7.5 million** in Q2 2025 and by **38.3% to $17.7 million** in H1 2025[8](index=8&type=chunk)[9](index=9&type=chunk) [Net Income and EPS](index=2&type=section&id=Net%20Income%20and%20EPS) Net income attributable to the company and basic net income per share saw significant year-over-year increases for both the second quarter and first half of 2025 Net Income and EPS (YoY) | Metric | Q2 2025 | Q2 2024 | Q2 Growth (%) | H1 2025 | H1 2024 | H1 Growth (%) | | :-------------------------------- | :------ | :------ | :------------ | :------ | :------ | :------------ | | Net Income Attributable to Company | $29.5M | $24.5M | 20% | $47.0M | $38.4M | 22% | | Basic Net Income Per Share | $0.51 | $0.42 | 21.4% | $0.81 | $0.66 | 22.7% | [EBITDA (Non-GAAP)](index=3&type=section&id=EBITDA%20(Non-GAAP)) EBITDA, a non-GAAP financial measure, demonstrated healthy growth for both the second quarter and first half of 2025, indicating improved operating performance EBITDA (YoY) | Metric | Q2 2025 | Q2 2024 | Q2 Growth (%) | H1 2025 | H1 2024 | H1 Growth (%) | | :----- | :------ | :------ | :------------ | :------ | :------ | :------------ | | EBITDA | $56.0M | $49.2M | 14% | $95.8M | $84.2M | 14% | [Business Segment Performance](index=3&type=section&id=Business%20Segment%20Performance) The company's real estate, hospitality, and leasing segments all demonstrated strong revenue growth in Q2 and H1 2025, driven by increased activity and strategic expansion [Real Estate](index=3&type=section&id=Real%20Estate) The real estate segment experienced significant revenue growth in Q2 and H1 2025, driven by increased homesite closings, despite a decrease in average base price and gross margin due to a changing mix of sales Real Estate Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Q2 Growth (%) | H1 2025 | H1 2024 | H1 Growth (%) | | :-------------------- | :------ | :------ | :------------ | :------ | :------ | :------------ | | Real Estate Revenue | $43.8M | $34.5M | 27% | $82.1M | $68.7M | 20% | | Homesite Closings | 225 | 186 | 21% | 474 | 402 | 17.9% | | Average Base Price | ~$122K | ~$140K | -12.8% | ~$118K | ~$128K | -7.8% | | Gross Margin | 45.9% | 52.3% | -6.4 pp | 45.6% | 51.1% | -5.5 pp | - In Q2 2025, **482 homesites were placed under contract**; as of June 30, 2025, **1,209 residential homesites were under contract**, expected to generate approximately **$121.7 million in revenue**[19](index=19&type=chunk) - The residential homesite pipeline increased by approximately **3,000 homesites** from March 31, 2025, now exceeding **24,000 homesites** in various stages of development[19](index=19&type=chunk) - The Latitude Margaritaville Watersound unconsolidated joint venture executed **89 net sale contracts** in Q2 2025, with **2,208 home contracts since 2021** and **1,992 occupied homes**[20](index=20&type=chunk) [Hospitality](index=4&type=section&id=Hospitality) The hospitality segment achieved record quarterly and first-half revenues in 2025, driven by growth in both club and hotel revenues, maintaining a significant portfolio of hotels and club members Hospitality Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Q2 Growth (%) | H1 2025 | H1 2024 | H1 Growth (%) | | :------------------ | :------ | :------ | :------------ | :------ | :------ | :------------ | | Hospitality Revenue | $68.8M | $62.3M | 10% | $108.4M | $101.6M | 7% | | Club Revenue Growth | 17% | N/A | N/A | N/A | N/A | N/A | | Hotels' Revenue Growth | 7% | N/A | N/A | N/A | N/A | N/A | - As of June 30, 2025, the Company had **3,551 club members** and owned **12 hotels with 1,298 operational hotel rooms**[21](index=21&type=chunk) [Leasing](index=4&type=section&id=Leasing) The leasing segment reported record quarterly and first-half revenues, with high occupancy rates across its diverse portfolio, and is actively expanding its leasable commercial space with new developments Leasing Performance (YoY) | Metric | Q2 2025 | Q2 2024 | Q2 Growth (%) | H1 2025 | H1 2024 | H1 Growth (%) | | :------------- | :------ | :------ | :------------ | :------ | :------ | :------------ | | Leasing Revenue | $16.5M | $14.8M | 11% | $32.8M | $29.1M | 13% | - As of June 30, 2025, rentable space was approximately **1,177,000 square feet**, with **95% leased**; an additional **31,500 square feet of leasable space is under construction**[23](index=23&type=chunk) - The company's focus on commercial leasing at Watersound Town Center, Watersound West Bay Center, and FSU/TMH Medical Campus has the potential to **more than double current leasable commercial space**[23](index=23&type=chunk) [Financial Position and Capital Allocation](index=5&type=section&id=Financial%20Position%20and%20Capital%20Allocation) The company actively managed its capital through significant investments, shareholder returns, and debt reduction, maintaining a stable financial position [Corporate and Other Operating Expenses](index=5&type=section&id=Corporate%20and%20Other%20Operating%20Expenses) Corporate and other operating expenses saw a slight increase in Q2 and H1 2025 but remained stable as a percentage of revenue Corporate and Other Operating Expenses (YoY) | Metric | Q2 2025 | Q2 2024 | Q2 Change | H1 2025 | H1 2024 | H1 Change | | :-------------------------------- | :------ | :------ | :-------- | :------ | :------ | :-------- | | Corporate and Other Operating Expenses | $6.4M | $5.9M | +$0.5M | $13.0M | $12.9M | +$0.1M | | % of Revenue | ~5% | ~5% | 0 pp | N/A | N/A | N/A | [Investments, Liquidity and Debt](index=5&type=section&id=Investments,%20Liquidity%20and%20Debt) The company actively managed its capital through significant investments in capital expenditures, shareholder returns via dividends and stock repurchases, and debt reduction, maintaining a stable liquidity position and a well-structured debt profile Capital Allocation Activities | Activity | Q2 2025 | H1 2025 | | :-------------------- | :------ | :------ | | Capital Expenditures | $36.5M | $69.2M | | Cash Dividends Paid | $8.1M | $16.3M | | Common Stock Repurchased | $10.5M | $16.2M | | Debt Repaid (Net) | $7.7M | $10.2M | - As of June 30, 2025, the company had **$88.2 million in cash, cash equivalents, and other liquid investments**, comparable to $88.8 million at December 31, 2024[25](index=25&type=chunk) - Outstanding debt had a weighted average effective interest rate of **4.8%** with an average remaining life of **18.7 years**; **75% of debt** had a fixed or swapped interest rate[26](index=26&type=chunk) - Company debt as of June 30, 2025, was approximately **28% of total assets**[26](index=26&type=chunk) [Dividends](index=3&type=section&id=Dividends) The Board of Directors declared a quarterly cash dividend of $0.14 per share - A cash dividend of **$0.14 per share** on common stock was declared, payable on September 19, 2025, to shareholders of record as of August 22, 2025[14](index=14&type=chunk) [Corporate Governance and Outlook](index=3&type=section&id=Corporate%20Governance%20and%20Outlook) The company announced a new director appointment, scheduled an earnings call, and provided important disclaimers regarding forward-looking statements and its business focus [New Director Appointment](index=3&type=section&id=New%20Director%20Appointment) The company appointed Elizabeth Dantin Franklin to its Board of Directors, enhancing the board's financial and audit expertise - Elizabeth Dantin Franklin was appointed as an independent director, expanding the Board to **six directors**[15](index=15&type=chunk) - Ms. Franklin brings extensive finance and audit expertise, having served as Chief Audit Officer at Fidelity National Financial from 2007–2023, and will serve on all three standing committees[15](index=15&type=chunk)[16](index=16&type=chunk) [Earnings Call and Additional Information](index=5&type=section&id=Earnings%20Call%20and%20Additional%20Information) The company scheduled an earnings call to discuss its performance and directed stakeholders to SEC filings for further details - An earnings call was scheduled for **July 24, 2025, at 3:00 p.m. Central Time (4:00 p.m. Eastern Time)**[27](index=27&type=chunk) - Additional information will be available in a Form 10-Q filed with the SEC, accessible at www.joe.com and www.sec.gov[28](index=28&type=chunk) [Important Notice Regarding Forward-Looking Statements](index=8&type=section&id=Important%20Notice%20Regarding%20Forward-Looking%20Statements) The report includes forward-looking statements that involve risks and uncertainties, cautioning readers that actual results may differ materially due to various factors, including economic conditions, competition, interest rates, and regulatory changes - Forward-looking statements are identified by words such as 'guidance,' 'anticipate,' 'estimate,' 'expect,' 'forecast,' 'project,' 'plan,' 'intend,' 'believe,' 'confident,' 'may,' 'should,' 'can have,' 'likely,' 'future' and other similar terms[40](index=40&type=chunk) - Key risks include the ability to implement strategic objectives, competition, economic conditions, interest rate fluctuations, inflation, higher insurance costs, and the ability to yield anticipated returns from developments and projects[41](index=41&type=chunk)[43](index=43&type=chunk) - The company does not undertake to update these statements other than as required by law, and advises studying its latest Form 10-K and Form 10-Q for investment decisions[28](index=28&type=chunk)[44](index=44&type=chunk) [About The St. Joe Company](index=9&type=section&id=About%20The%20St.%20Joe%20Company) The St. Joe Company is a diversified real estate development, asset management, and operating company focused on Northwest Florida, actively seeking higher and better uses for its extensive real estate assets through residential, hospitality, and commercial ventures - The St. Joe Company is a diversified real estate development, asset management, and operating company with real estate assets and operations in Northwest Florida[45](index=45&type=chunk) - The company intends to use existing assets for residential, hospitality, and commercial ventures and has significant residential and commercial land-use entitlements[45](index=45&type=chunk) [Financial Data Schedules](index=5&type=section&id=FINANCIAL%20DATA%20SCHEDULES) This section provides detailed unaudited financial statements, including consolidated results, balance sheets, operating expenses, and non-GAAP reconciliations for Q2 and H1 2025 and 2024 [Consolidated Results (Unaudited)](index=6&type=section&id=Consolidated%20Results%20(Unaudited)) This section provides a detailed breakdown of the company's consolidated revenues, expenses, and net income for the second quarter and first half of 2025 and 2024 Consolidated Results (Unaudited) | | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | **Revenue** | | | | | | Real estate revenue | $43.8 | $34.5 | $82.1 | $68.7 | | Hospitality revenue | $68.8 | $62.3 | $108.4 | $101.6 | | Leasing revenue | $16.5 | $14.8 | $32.8 | $29.1 | | **Total revenue** | **$129.1** | **$111.6** | **$223.3** | **$199.4** | | **Expenses** | | | | | | Cost of real estate revenue | $23.8 | $16.6 | $42.6 | $32.7 | | Cost of hospitality revenue | $42.3 | $37.9 | $74.7 | $68.2 | | Cost of leasing revenue | $7.6 | $7.3 | $15.0 | $14.5 | | Corporate and other operating expenses | $6.4 | $5.9 | $13.0 | $12.9 | | Depreciation, depletion and amortization | $12.0 | $11.3 | $24.1 | $22.5 | | **Total expenses** | **$92.1** | **$79.0** | **$169.4** | **$150.8** | | **Operating income** | **$37.0** | **$32.6** | **$53.9** | **$48.6** | | Investment income, net | $3.2 | $3.4 | $6.6 | $6.8 | | Interest expense | $(7.8) | $(8.5) | $(15.5) | $(17.1) | | Equity in income from unconsolidated joint ventures | $7.5 | $5.4 | $17.7 | $12.8 | | Other expense, net | $(0.2) | $(0.1) | $(0.5) | $(0.5) | | **Income before income taxes** | **$39.7** | **$32.8** | **$62.2** | **$50.6** | | Income tax expense | $(9.9) | $(8.3) | $(15.8) | $(13.0) | | **Net income** | **$29.8** | **$24.5** | **$46.4** | **$37.6** | | Net (income) loss attributable to non-controlling interest | $(0.3) | — | $0.6 | $0.8 | | **Net income attributable to the Company**| **$29.5** | **$24.5** | **$47.0** | **$38.4** | | Basic net income per share attributable to the Company | $0.51 | $0.42 | $0.81 | $0.66 | | Basic weighted average shares outstanding | 58,057,268 | 58,331,818 | 58,150,138 | 58,326,153 | [Summary Balance Sheet (Unaudited)](index=7&type=section&id=Summary%20Balance%20Sheet%20(Unaudited)) This section presents a summary of the company's assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Summary Balance Sheet (Unaudited) | | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | **Assets** | | | | Investment in real estate, net | $1,048.9 | $1,040.4 | | Investment in unconsolidated joint ventures | $73.8 | $66.5 | | Cash and cash equivalents | $88.2 | $88.8 | | Other assets | $81.8 | $80.3 | | Property and equipment, net | $52.6 | $59.1 | | Investments held by special purpose entities | $203.1 | $203.5 | | **Total assets** | **$1,548.4** | **$1,538.6** | | **Liabilities and Equity** | | | | Debt, net | $427.2 | $437.8 | | Accounts payable and other liabilities | $60.7 | $53.9 | | Deferred revenue | $60.4 | $59.3 | | Deferred tax liabilities, net | $71.5 | $72.4 | | Senior Notes held by special purpose entity | $178.7 | $178.5 | | **Total liabilities** | **$798.5** | **$801.9** | | **Total equity** | **$749.9** | **$736.7** | | **Total liabilities and equity** | **$1,548.4** | **$1,538.6** | [Corporate and Other Operating Expenses (Unaudited)](index=7&type=section&id=Corporate%20and%20Other%20Operating%20Expenses%20(Unaudited)) This table details the breakdown of corporate and other operating expenses for the second quarter and first half of 2025 and 2024 Corporate and Other Operating Expenses (Unaudited) | | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Employee costs | $6.8 | $3.1 | $6.0 | $3.2 | | Property taxes and insurance | $1.6 | $2.7 | $1.2 | $3.2 | | Professional fees | $0.7 | $1.7 | $0.6 | $2.0 | | Marketing and owner association costs | $0.6 | $0.3 | $0.4 | $0.5 | | Occupancy, repairs and maintenance | $0.1 | $0.3 | $0.1 | $0.2 | | Other miscellaneous | $0.5 | $0.9 | $0.5 | $1.0 | | **Total corporate and other operating expenses** | **$6.4** | **$5.9** | **$13.0** | **$12.9** | [Reconciliation of Non-GAAP Financial Measures (Unaudited)](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20(Unaudited)) This section provides the reconciliation of Net Income Attributable to the Company to EBITDA, a non-GAAP financial measure, for the second quarter and first half of 2025 and 2024, along with management's rationale for its use - EBITDA is a non-GAAP financial measure used by management to provide insight into operating performance across periods and a more complete understanding of factors and trends affecting the Company[37](index=37&type=chunk) EBITDA Reconciliation (Unaudited) | | Quarter Ended June 30, 2025 | Quarter Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------- | :-------------------------- | :-------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to the Company | $29.5 | $24.5 | $47.0 | $38.4 | | Plus: Interest expense | $7.8 | $8.5 | $15.5 | $17.1 | | Less: Investment income, net | $(3.2) | $(3.4) | $(6.6) | $(6.8) | | Plus: Income tax expense | $9.9 | $8.3 | $15.8 | $13.0 | | Plus: Depreciation, depletion and amortization | $12.0 | $11.3 | $24.1 | $22.5 | | **EBITDA** | **$56.0** | **$49.2** | **$95.8** | **$84.2** |

Core Insights - Adyen partners with JOE & THE JUICE to enhance in-store payment experiences using the SFO1 terminal, which integrates payment functions with marketing displays [1][3] - The collaboration aims to streamline payment operations and improve customer engagement as JOE & THE JUICE expands in the U.S. market [2][4] Company Overview - JOE & THE JUICE operates over 400 locations in 18 countries, offering fresh juices, shakes, sandwiches, and coffee with a focus on natural and organic ingredients [7] - Adyen is a leading financial technology platform that provides end-to-end payment solutions and data-driven insights to major companies globally [8] Technology and Innovation - The SFO1 terminal allows JOE & THE JUICE to combine seamless payment processing with brand engagement and loyalty programs at the point of sale [3][5] - The technology supports features like pre-ordering through an app and personalized loyalty incentives, catering to the growing consumer demand for tailored brand experiences [5][6] Market Strategy - JOE & THE JUICE utilizes the SFO1 terminals to gather insights that inform store experiences and marketing strategies, aiming to build long-term customer loyalty in a competitive food and beverage landscape [4][6] - The partnership with Adyen enables JOE & THE JUICE to adapt to different market environments and consumer preferences, enhancing the overall in-store experience [5][6]

Financial Data and Key Metrics Changes - The company's balance sheet has grown to over $1 billion, with a compound annual growth rate (CAGR) of 17% from 2016 to 2024 [28] - Consolidated and unconsolidated revenue increased from approximately $97 million to $780 million, reflecting a CAGR of 30% [29] - EBITDA grew from $26 million to $166 million, with a CAGR of 26% [30] - Net income rose from about $16 million to $74 million, with a CAGR of 21% [30] - Earnings per share increased from $0.21 to $1.27, with a CAGR of 25% [31] Business Line Data and Key Metrics Changes - The residential segment experienced flat growth due to the timing of seeding and harvesting cycles, while hospitality and leasing segments grew [36] - The company has 21,309 residential units in production, with 15,151 units in the concept planning phase and 3,900 units in engineering and permitting [58][61] Market Data and Key Metrics Changes - Florida's population grew at 8.5% from 2020 to 2024, with Bay County at 14% and Walton County at 19%, indicating strong regional growth [23][24] - The airport's passenger traffic increased from over 312,000 to 1.8 million, a 500% increase, reflecting regional growth [26] Company Strategy and Development Direction - The company aims to expand its portfolio of recurring income-producing commercial and hospitality properties while developing residential communities for long-term revenue [20] - The strategy includes a multifaceted capital allocation approach focusing on growth, debt reduction, and stock repurchases [20] - The company is actively pursuing detailed specific area plans (DSAPs) for residential development, with 10 approved and 7 more in the pipeline [75][76] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of migration to the business, noting that as long as migration continues, the company is well-positioned [22] - The company anticipates more harvesting years in the future, with expectations for increased residential development [56] Other Important Information - The company has maintained a consistent capital allocation strategy, with 65% of capital allocated for growth, 30% for stock repurchases, and 5% for dividends [46] - The company has reduced corporate and other operating expenses from 24% to 6% of consolidated revenue since 2016, indicating improved efficiency [48] Q&A Session Summary Question: What is the company's outlook on residential development? - Management indicated that residential development is cyclical, with a focus on seeding and harvesting cycles, and expects more harvesting in the upcoming year [56] Question: How does the company manage its debt? - The company utilizes project-level financing, with 28% of total assets in project debt, and has a strategy for debt reduction [44] Question: What are the key growth areas for the company? - Management highlighted the State Road 79 corridor as a key area of focus, with significant interest from builders and developers [90]

Land Holdings and Development - The company owns 167,000 acres of land, with 87% located in Bay, Walton, and Gulf Counties[7,9,43] - The company has entitlements to develop over 170,000 residential units and over 22 million square feet of non-residential uses[7] - The majority of revenue is derived from less than 2% of land holdings[7] Financial Performance - Investment in real estate and unconsolidated joint ventures has a compound annual growth rate of 17%[13,14] - Consolidated and unconsolidated revenue has a compound annual growth rate of 30%[16,17] - EBITDA has a compound annual growth rate of 26%[19,20] - Net income has a compound annual growth rate of 21%, with depreciation in 2024 at $46.4 million, a 20% increase from 2023[22,23] - Earnings per share have a compound annual growth rate of 25%, with depreciation at $0.80 per share in 2024, a 20% increase from 2023[24,26] Capital Allocation and Debt - From January 1, 2015, to March 31, 2025, the company allocated $1,342.5 million (65%) to capital expenditures, $619.2 million (30%) to stock repurchases, and $110.7 million (5%) to dividends, totaling $2.1 billion in capital allocations[37,38] - Debt is 28% of the company's total assets, with 73.8% of outstanding debt having a fixed or swapped interest rate, and an average weighted effective interest rate of 4.8%[35] Valuation - The company's income-producing assets are estimated to have a value range of approximately $1.5 billion to $1.7 billion, based on a broker's opinion of value[70] - These income-producing assets encompass 491 acres (excluding golf courses) and 1,358 acres (including golf courses), occupying less than 1% of the total 167,000 acres owned by the company[70]

Group 1 - The Joe Velasco Group has affiliated with Coldwell Banker Realty's Los Gatos office from Intero Real Estate Services Inc., enhancing Coldwell Banker's presence in the Silicon Valley and Peninsula markets [1] - Joe Velasco, the leader of the group, has over two decades of experience and a sales track record exceeding $2 billion, ranking in the top 1% of realtors in California for 12 consecutive years [2][3] - In 2024, the Joe Velasco Group achieved over $180 million in sales volume across 90 transactions, showcasing their strong performance in the real estate market [2] Group 2 - Coldwell Banker Realty is one of the largest residential real estate brokerages in Northern California, with approximately 4,300 affiliated agents serving markets from Monterey to Tahoe [4] - The company is owned by a subsidiary of Anywhere Real Estate Inc. (NYSE:HOUS), which is the largest full-service residential real estate services company in the United States [4]