Financial Data and Key Metrics Changes - For Q3 2025, the company reported a 63% increase in revenue and a 130% increase in net income compared to Q3 2024 [5] - Residential real estate revenue grew by 94% to $36.8 million from $19 million, with the average homesite base price increasing to $150,000 from $86,000 and gross margin rising to 53% from 39% [5] - Recurring revenue from leasing increased by 7% to a record $16.7 million, while hospitality revenue rose by 9% to a record $60.6 million for the third quarter [5][6] Business Line Data and Key Metrics Changes - The company executed 40 new commercial leases and renewed 43 existing leases for a total of 83 during the first nine months of 2025, compared to 53 during the same period in 2024 [6] - At the end of Q3 2025, there were 1,992 residential units under contract, up from 1,381 in the same period in 2024 [6] - The company has over 24,000 entitled units in its residential pipeline across various stages of planning, engineering, permitting, or development [6] Market Data and Key Metrics Changes - The sale of Watercress Senior Living for $41 million resulted in a gross profit of $19.4 million, demonstrating the company's ability to monetize developed properties [7] - The company is leveraging new nonstop flights between Northwest Florida Beaches International Airport and LaGuardia Airport to expand marketing efforts to a larger population base [10][11] Company Strategy and Development Direction - The company plans to continue creating asset value by developing operating properties for recurring revenue or monetizing them for capital allocation [8] - A measured and multifaceted capital allocation strategy was executed, with $20.4 million for capital expenditures, $8.7 million for share repurchase, $8.1 million for cash dividends, and $28.4 million for project debt reduction [9] - The company is focused on strategic timberlands for monetization opportunities while ensuring that assets are not sold at a discount [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's cash generation capabilities and emphasized the importance of maintaining liquidity while executing a capital allocation strategy [13][21] - The company is optimistic about the growth potential in the region, particularly with the establishment of an academic health center and increased direct flights to major metropolitan areas [55][56] Other Important Information - The company announced a 14% increase in the quarterly dividend to $0.16 per share, marking a 129% increase in dividend payments since the program's inception in 2020 [10] - The outstanding share balance is now below 58 million for the first time in nearly 30 years, reflecting significant share repurchase activity [10] Q&A Session Summary Question: Why is the company building cash rather than increasing the pace of buybacks? - Management highlighted the positive cash generation and emphasized that share repurchase remains a priority within their capital allocation strategy [12][13] Question: Why not sell more assets at values that are material relative to the current market cap? - Management stated that they are evaluating assets for monetization but will not sell at a discount, ensuring that shareholders receive fair value [15][17] Question: What are the expected cash levels in 12 to 18 months? - Management indicated that future cash levels will depend on various factors, including macroeconomic conditions and the company's capital allocation strategy [18][21] Question: Any updates on talks with a large-scale builder for Pigeon Creek DSAP? - Management confirmed that discussions are ongoing but did not provide specific updates [22] Question: What is the current value of the company's land inventory? - Management mentioned that a third-party valuation of operating properties was provided at the annual meeting, and similar evaluations for timberlands are in process [42] Question: How does the company view pricing and discounting? - Management clarified that they have not been discounting home site pricing and maintain a consistent pricing strategy across residential communities [51][53]

Financial Performance - Quarterly net income attributable to the company increased by 130.4% to $38.7 million, or $0.67 per share, during the three months ended September 30, 2025, compared to $16.8 million, or $0.29 per share, in the same period in 2024[226] - Quarterly revenue increased by 62.7% to $161.1 million during the three months ended September 30, 2025, from $99.0 million in the same period in 2024[226] - Operating income for Q3 2025 was $52.9 million, compared to $21.2 million in Q3 2024, reflecting a 149.1% increase[272] - Net income for the nine months ended September 30, 2025, was $86.6 million, up 59.6% from $54.3 million in the same period of 2024[272] - Total revenue for the nine months ended September 30, 2025, reached $384.4 million, a 28.8% increase from $298.4 million in the same period of 2024[272] Revenue Breakdown - Real estate revenue increased by 199.3% to $83.8 million during the three months ended September 30, 2025, from $28.0 million in the same period in 2024[226] - Hospitality revenue increased by 9.4% to a third quarter record of $60.6 million during the three months ended September 30, 2025, from $55.4 million in the same period in 2024[233] - Leasing revenue increased by 7.1% to a quarterly record of $16.7 million during the three months ended September 30, 2025, from $15.6 million in the same period in 2024[233] - Residential real estate revenue increased by $17.8 million, or 93.7%, to $36.8 million in Q3 2025 compared to $19.0 million in Q3 2024[274] - Revenue from homesite sales increased by $13.6 million, or 80.5%, during the three months ended September 30, 2025, compared to the same period in 2024[306] Operational Highlights - As of September 30, 2025, the company had 1,992 residential homesites under contract, expected to result in revenue of approximately $146.2 million at closing[240] - The unconsolidated Latitude Margaritaville Watersound JV had completed 2,074 home sale transactions, with 205 homes under contract, expected to result in a sales value of approximately $123.1 million[237] - The total number of hotel rooms in the portfolio is 1,298, with significant additional entitlements for future hotel projects[247] - The total multi-family units completed is 1,110, with an occupancy rate of 91%[255] - The commercial segment consists of approximately 1,173,000 square feet of leasable space, with a leasing percentage of 97%[259] Expenses and Income - Corporate and other operating expenses increased by $0.9 million to $6.9 million for the three months ended September 30, 2025, compared to $6.0 million in the same period in 2024, mainly due to higher property taxes[290] - Interest expense decreased by $0.6 million, or 7.1%, to $7.8 million for the three months ended September 30, 2025, compared to $8.4 million in the same period in 2024, due to repayment of project financing[293] - Income tax expense for the three months ended September 30, 2025, was $13.7 million, up from $6.4 million in the same period of 2024[299] - Net cash provided by operating activities was $146.3 million for the nine months ended September 30, 2025, compared to $78.2 million for the same period in 2024[392] Capital Expenditures and Financing - Total capital expenditures for the nine months ended September 30, 2025, amounted to $89.6 million, with $65.5 million allocated to the residential segment[359] - The company anticipates that future capital commitments will be funded through cash generated from operations and new financing arrangements[359] - Outstanding loans totaled $404.0 million as of September 30, 2025, down from $442.7 million as of December 31, 2024[360] - The company invested $8.6 million in capital expenditures for its hospitality segment during the nine months ended September 30, 2025[359] - The company has variable-rate debt outstanding totaling $122.6 million as of September 30, 2025, with $40.0 million swapped to a fixed interest rate[405] Market and Economic Factors - A hypothetical 100 basis point increase in interest rates would result in a decrease of less than $0.1 million in the market value of short-term U.S. Treasury Bills classified as cash equivalents[402] - The company is exposed to credit risk associated with investments classified as available-for-sale securities, which are subject to price fluctuations due to changes in issuer credit quality and economic factors[403] - Changes in interest rates related to money market instruments would not significantly impact the company's results of operations[404]

Financial Performance - Quarterly net income attributable to the Company increased by 130% to $38.7 million, or $0.67 per share, compared to $16.8 million, or $0.29 per share in Q3 2024[3] - Total consolidated revenue for Q3 2025 increased by 63% to $161.1 million, up from $99.0 million in Q3 2024[5] - For the first nine months of 2025, total consolidated revenue increased by 29% to $384.4 million, compared to $298.4 million for the same period in 2024[7] - In Q3 2025, the Company reported total revenue of $161.1 million, a 62.7% increase from $99.0 million in Q3 2024[28] - EBITDA for Q3 2025 was $68.8 million, compared to $39.9 million in Q3 2024, indicating a 72.6% increase[34] Revenue Breakdown - Real estate revenue surged by 199% to $83.8 million in Q3 2025, compared to $28.0 million in Q3 2024[13] - Hospitality revenue reached a record $60.6 million in Q3 2025, a 9% increase from $55.4 million in Q3 2024[17] - Leasing revenue set a quarterly record of $16.7 million, increasing by 7% from $15.6 million in Q3 2024[18] - Real estate revenue for Q3 2025 was $83.8 million, up from $28.0 million in Q3 2024, representing a 199.3% increase[28] Cash and Capital Management - The Company funded $20.4 million in capital expenditures and repurchased $8.7 million of common stock in Q3 2025[4] - As of September 30, 2025, the Company had $126.0 million in cash and cash equivalents, an increase from $88.8 million as of December 31, 2024[31] - The Company repurchased $8.7 million of its common stock in Q3 2025, and for the first nine months of 2025, it repurchased $24.9 million[21] - The Company funded $20.4 million in capital expenditures in Q3 2025, and $89.6 million for the first nine months of 2025[21] Debt and Assets - The weighted average effective interest rate of outstanding debt as of September 30, 2025, was 4.9%, with 80% of the debt having fixed or swapped interest rates[23] - Total assets as of September 30, 2025, were $1,533.9 million, slightly down from $1,538.6 million as of December 31, 2024[31] Future Outlook - The Company declared a cash dividend of $0.16 per share, representing a 14% increase from the previous dividend of $0.14 per share[12] - As of September 30, 2025, the Company had 1,992 residential homesites under contract, expected to generate approximately $146.2 million in revenue[15] - The Company plans to conduct an earnings call on October 30, 2025, to discuss performance and future outlook[24] Company Overview - The St. Joe Company is a diversified real estate development and asset management company focused on Northwest Florida[39] - The company intends to utilize existing assets for residential, hospitality, and commercial ventures[39] - St. Joe has significant residential and commercial land-use entitlements, actively seeking higher and better uses for its real estate assets[39]

Core Insights - The St. Joe Company reported significant growth in revenue and net income for the third quarter and first nine months of 2025, with total revenue increasing by 63% to $161.1 million and net income rising by 130% to $38.7 million compared to the same period in 2024 [3][10][5]. Financial Performance - Quarterly net income attributable to the Company increased by 130% to $38.7 million, or $0.67 per share, from $16.8 million, or $0.29 per share [10]. - Total consolidated revenue for the first nine months of 2025 increased by 29% to $384.4 million, compared to $298.4 million for the same period in 2024 [7]. - Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the third quarter increased by 72% to $68.8 million, while EBITDA for the first nine months increased by 33% to $164.6 million [11][30]. Revenue Breakdown - Real estate revenue surged by 199% to $83.8 million in the third quarter, driven by a significant increase in residential real estate sales [14][5]. - Hospitality revenue reached a record of $60.6 million in the third quarter, marking a 9% increase from the previous year [18]. - Leasing revenue also set a record at $16.7 million for the third quarter, up 7% from the same period in 2024 [19]. Capital Allocation and Shareholder Returns - The Company funded $20.4 million in capital expenditures and repurchased $8.7 million of its common stock in the third quarter of 2025 [22]. - A cash dividend of $0.16 per share was declared, representing a 14% increase from the previous quarter [13]. - Since initiating its current dividend program in 2020, the Company has increased quarterly dividend payments by 129% [13]. Joint Ventures and Future Prospects - The Watercrest joint venture sold a senior living community for $41.0 million, resulting in a gross profit of $19.4 million [6]. - The Company has 1,992 residential homesites under contract, expected to generate approximately $146.2 million in revenue over the coming years [16]. - New non-stop flights from Northwest Florida Beaches International Airport to LaGuardia Airport are anticipated to enhance the Company's market reach [4].

Core Insights - Praetorian Capital's third-quarter 2025 investor letter reported a fund appreciation of 5.70%, indicating a focus on concentrated portfolios and asymmetric opportunities that may lead to notable volatility [1] - The St. Joe Company (NYSE:JOE) was highlighted as a key stock, with a one-month return of 2.39% and a 52-week loss of 4.91%, closing at $50.28 per share with a market capitalization of $2.926 billion on October 23, 2025 [2][3] Company Analysis - The St. Joe Company (NYSE:JOE) owns approximately 167,000 acres in the Florida Panhandle and has been trading at a fraction of its liquidation value for years, perceived as "dead money" without a catalyst [3] - The company is not among the 30 Most Popular Stocks Among Hedge Funds, with 26 hedge fund portfolios holding its stock at the end of the second quarter, down from 32 in the previous quarter [3] - While acknowledging the potential of The St. Joe Company (NYSE:JOE), Praetorian Capital suggests that certain AI stocks may offer greater upside potential and less downside risk [3]

Core Insights - Fairholme Capital Management's portfolio is valued at $1.23 billion, with the top five holdings constituting 99.32% of total assets, reflecting a concentrated investment strategy [1][7] Group 1: Top Holdings - The largest holding is St. Joe Company (JOE), with 20.20 million shares valued at $963.7 million, representing 78.54% of the portfolio. Berkowitz trimmed 2,700 shares, maintaining a controlling stake, driven by confidence in JOE's Florida real estate and long-term value creation [2] - The second-largest holding is Enterprise Products Partners (EPD), with 5.45 million units valued at $169.0 million, accounting for 13.77% of assets. No changes were made this quarter, highlighting a focus on stable, high-yielding infrastructure assets [3] - Bank OZK (OZK) represents 3.52% of the portfolio, with 916,752 shares valued at $43.14 million. Fairholme added 285,150 shares, indicating renewed confidence in the bank's conservative balance sheet and profitability [4] - Berkshire Hathaway Inc. Class B (BRK.B) holds 1.92% of assets, with 48,597 shares valued at $23.61 million. A slight reduction in stake reflects portfolio maintenance rather than a change in conviction [5] - W. R. Berkley Corp (WRB) rounds out the top five with 261,450 shares worth $19.21 million, representing 1.57% of the portfolio. No changes were made this quarter, showcasing exposure to high-quality insurers [6] Group 2: Investment Philosophy - Berkowitz's investment strategy emphasizes concentration and patience, with nearly 80% of the portfolio in a single real estate holding and additional investments in energy, banking, and insurance [7] - The approach is characterized by a focus on intrinsic value, dependable cash flows, and management alignment, rather than diversification or chasing momentum [7]

Core Insights - The St. Joe Company (NYSE: JOE) has undergone significant evolution since 2021, with positive returns, although they have lagged behind the market due to rising interest rates [1] Company Summary - The St. Joe Company has seen changes in its performance metrics since the last analysis in 2021 [1] - Despite positive returns, the company's performance has been impacted by external economic factors, particularly rising interest rates [1]

Core Insights - The St. Joe Company has released the latest issue of its biannual magazine, Watersound Lifestyle, aimed at Watersound Club members [1] Group 1: Company Overview - The magazine provides insights into club amenities and features stories from the community [1] - Highlights in this issue include the newly renovated Shark's Tooth Clubhouse and coastal conservation efforts [1] - The magazine also introduces individuals whose passions and talents contribute to the community [1]

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]