Financial Performance - Revenue increased by 20.3% to $87.8 million from $73.0 million in Q1 2024 compared to Q1 2023[218] - Operating income rose by 41.6% to $16.0 million from $11.3 million year-over-year[218] - Net income attributable to the Company increased by 33.7% to $13.9 million from $10.4 million[219] - Total revenue for the three months ended March 31, 2024, increased to $87.8 million, up 20.5% from $73.0 million in the same period in 2023[264] - Net income for Q1 2024 was $13.1 million, up from $9.5 million in Q1 2023, reflecting a 38.9% increase[352] Hospitality Segment - Hospitality revenue surged by $14.8 million, or 60.4%, to $39.3 million, driven by new club members and the opening of new amenities[273] - Revenue from hospitality segment surged to $40.0 million in Q1 2024, a significant increase of 60.8% from $24.9 million in Q1 2023[298] - Hospitality revenue from clubs increased by $8.9 million, or 88.1%, in Q1 2024 compared to Q1 2023, driven by a rise in membership[299] - The gross profit margin for hospitality improved to 22.9% from 6.5% year-over-year, reflecting operational efficiencies from new assets[273] - Total expenses for the hospitality segment rose to $37.9 million in Q1 2024, compared to $27.1 million in Q1 2023, an increase of 39.0%[298] Residential Segment - The hospitality segment's operating revenue increased to 45.6% in Q1 2024 from 34.1% in Q1 2023, while the residential segment decreased to 35.1% from 38.4%[223] - Residential real estate revenue rose by $2.8 million, or 10.0%, to $30.8 million, with gross profit increasing to $15.8 million, reflecting a gross margin of 51.3%[266] - Total revenue for the residential segment increased to $30.8 million in Q1 2024, up from $28.0 million in Q1 2023, representing a growth of 10.0%[289] - The number of homes sold in the Latitude Margaritaville Watersound JV increased to 177 in Q1 2024 from 149 in Q1 2023, reflecting a growth of 18.8%[283] - Gross margin for residential homesites improved to 50.0% in Q1 2024, up from 41.0% in Q1 2023[292] Development and Projects - The company plans to enhance the value of its real estate assets through the development of residential, commercial, and hospitality projects[215] - The company is constructing the Residence Inn Panama City Beach Pier Park, which opened in April 2024, as part of its commercial segment[239] - The company is developing an 87-acre medical campus in partnership with Florida State University and Tallahassee Memorial Hospital[246] - The company has various hospitality projects in planning stages, indicating potential future growth in the sector[242] - The residential homesite pipeline includes a total of 21,503 homesites across various communities[229] Financial Position and Cash Flow - As of March 31, 2024, cash, cash equivalents, and restricted cash totaled $94.2 million, up from $64.2 million at the end of Q1 2023, an increase of 46.7%[349] - Net cash provided by operating activities increased to $27.6 million in Q1 2024 from $19.2 million in Q1 2023, representing a 43.8% increase[350] - Net cash used in investing activities decreased to $14.7 million in Q1 2024 from $27.2 million in Q1 2023, a reduction of 46.1%[353] - Capital expenditures for operating property and equipment were $14.3 million in Q1 2024, down from $44.0 million in Q1 2023, a decrease of 67.5%[354] Debt and Interest Rates - As of March 31, 2024, the company had various loans outstanding totaling $457.4 million, with a weighted average effective interest rate of 5.3%[319] - Variable-rate debt outstanding as of March 31, 2024, totaled $195.7 million, with a weighted average interest rate of 7.6%[365] - A hypothetical 100 basis point increase in interest rates would result in an increase to annual interest expense of $1.5 million based on the outstanding balance of variable-rate loans[365] - The company has entered into interest rate swap agreements to manage interest rate risk on some of its variable-rate debt[364] Operational Metrics - The hotel portfolio consists of 1,177 operational rooms and an additional 121 rooms under development, totaling 1,298 rooms[240] - The company had 1,053 operational hotel rooms as of March 31, 2024, an increase of 561 rooms from 492 operational hotel rooms as of March 31, 2023[302] - Multi-family units total 1,128, with an occupancy rate of 83% as of March 31, 2024, compared to 79% in December 2023[248] - Senior living communities have 255 units, with only 45% leased as of March 31, 2024, down from 99% in December 2023[248] - The Watersound Town Center has 137,921 square feet completed, with an occupancy rate of 89% as of March 31, 2024[258]

Revenue Growth - Revenue for the first quarter of 2024 increased by 20% to $87.8 million compared to $73.0 million in the first quarter of 2023[4] - Hospitality revenue grew by 60% to $39.3 million, while leasing revenue increased by 21% to $14.3 million[4] Net Income and Earnings - Net income attributable to the Company rose by 34% to $13.9 million, or $0.24 per share, compared to $10.4 million, or $0.18 per share, in the same period last year[6] - Net income attributable to the Company for Q1 2024 was $13.9 million, up from $10.4 million in Q1 2023, representing a 33.65% increase[29] EBITDA Performance - EBITDA for the first quarter of 2024 increased by 43% to $34.9 million, up from $24.4 million in the first quarter of 2023[7] - EBITDA for Q1 2024 was $34.9 million, compared to $24.4 million in Q1 2023, reflecting a 42.62% growth[29] Sales and Contracts - The Company sold 216 homesites at an average base price of approximately $117,000 with a gross margin of 50% in the first quarter of 2024[10] - As of March 31, 2024, the Company had 1,335 residential homesites under contract, expected to generate approximately $119.8 million in revenue[12] - The Latitude Margaritaville Watersound joint venture had 177 completed home sales in the first quarter of 2024, bringing total occupied homes to 1,181[13] Dividends and Capital Expenditures - The Company declared a cash dividend of $0.12 per share, payable on June 13, 2024[8] - The Company funded $31.5 million in capital expenditures in the first quarter of 2024[20] Financial Position - Total assets as of March 31, 2024, were $1,537.7 million, with total liabilities of $832.8 million[25] Strategic Focus and Growth Prospects - The Company anticipates growth prospects and plans to expand operational assets, including increases in hotel rooms, in 2024 and beyond[30] - The Company is focused on maintaining an efficient cost structure and capital allocation initiatives, including quarterly dividend payments[30] - The Company has significant residential and commercial land-use entitlements and seeks higher and better uses for its real estate assets[34] - The Company is dependent on strong migration and population expansion in its regions of development, particularly Northwest Florida[32] - The Company aims to effectively manage real estate assets and complete construction projects within expected timeframes[31] Risks and Challenges - Risks include competition, economic conditions, interest rate fluctuations, and geopolitical conflicts that may impact financial results[31] Cybersecurity and Compliance - The Company is committed to protecting its information technology infrastructure against cyber-attacks and maintaining adequate internal controls[32] - The Company does not undertake to update forward-looking statements other than as required by law[33]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ 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: 1-10466 The St. Joe Company (Exact name of registrant as specified in its charter) Florida 59-0432511 (State or other j ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ 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: 1-10466 The St. Joe Company (Exact name of registrant as specified in its charter) | Florida | 59-0432511 | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q Table of Contents (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ 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: 1-10466 The St. Joe Company (Exact name of registrant as specified in its charter) | Florida | 59-0432511 | | -- ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ 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: 1-10466 The St. Joe Company (Exact name of registrant as specified in its charter) | Florida | 59-0432511 | | - ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) For the transition period from to . Commission file number: 1-10466 The St. Joe Company (Exact name of registrant as specified in its charter) Florida 59-0432511 (State or other jurisdiction of incorporation or organization) 130 Richard Jackson Boulevard, Suite 200 Panama City Beach, Florida 32407 (Address of principal executive offices) (Zip Code) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) The St. Joe Company (Exact name of registrant as specified in its charter) | Florida | 59-0432511 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 130 Richard Jackson Boulevard, Suite 200 | | | Panama City Beach, Florida | 32407 | | (Address of principal executive offices) | (Zip Code) | (850) 231-6400 (Registrant's te ...

PART I [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements for Q2 and H1 2022, including balance sheets, income, and cash flows [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets rose to **$1.32 billion** from **$1.21 billion** at year-end 2021, driven by real estate investments Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$1,319,825** | **$1,208,151** | | Investment in real estate, net | $819,618 | $690,113 | | Cash and cash equivalents | $21,851 | $70,162 | | **Total Liabilities** | **$672,385** | **$582,051** | | Debt, net | $291,471 | $223,034 | | **Total Equity** | **$647,440** | **$626,100** | - A separate balance sheet for consolidated joint ventures shows total assets of **$474.0 million** and total liabilities of **$406.9 million** as of June 30, 2022. These assets are restricted to settling JV obligations and the liabilities do not have recourse to the general credit of the Company, with certain exceptions[11](index=11&type=chunk)[12](index=12&type=chunk) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2022 revenue decreased to **$68.3 million** due to real estate, while H1 revenue increased to **$133.1 million** Q2 Financial Performance (in thousands, except per share) | Metric | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | Total Revenue | $68,250 | $72,239 | | Real estate revenue | $28,027 | $41,063 | | Hospitality revenue | $29,556 | $22,627 | | Operating Income | $18,805 | $30,750 | | Net Income Attributable to Company | $17,039 | $24,224 | | Diluted EPS | $0.29 | $0.41 | Six-Month Financial Performance (in thousands, except per share) | Metric | H1 2022 | H1 2021 | | :--- | :--- | :--- | | Total Revenue | $133,121 | $113,545 | | Real estate revenue | $64,801 | $62,116 | | Hospitality revenue | $45,877 | $35,694 | | Operating Income | $39,029 | $36,289 | | Net Income Attributable to Company | $30,451 | $27,420 | | Diluted EPS | $0.52 | $0.47 | [Condensed Consolidated Statements of Comprehensive Income](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2022 total comprehensive income was **$17.2 million**, influenced by net income and favorable interest rate swaps Comprehensive Income Summary (in thousands) | Metric | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $17,089 | $24,024 | $30,543 | $26,981 | | Total other comprehensive income (loss), net of tax | $399 | $(11) | $2,400 | $251 | | **Total comprehensive income attributable to the Company** | **$17,203** | **$24,213** | **$31,924** | **$27,671** | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Equity increased to **$647.4 million** from **$626.1 million**, driven by net income and OCI, offset by dividends - For the six months ended June 30, 2022, the company paid dividends of **$0.20 per share**, totaling **$11.8 million**[24](index=24&type=chunk) - The company repurchased **4,760** common shares for **$0.2 million** during the first six months of 2022[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) H1 2022 net cash from operations was **$29.0 million**, with **$130.1 million** used in investing, resulting in a **$44.8 million** cash decrease Six-Month Cash Flow Summary (in thousands) | Cash Flow Activity | H1 2022 | H1 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $29,005 | $47,196 | | Net cash used in investing activities | $(130,148) | $(137,696) | | Net cash provided by financing activities | $56,389 | $17,155 | | **Net decrease in cash, cash equivalents and restricted cash** | **$(44,754)** | **$(73,345)** | - Expenditures for operating property were a significant use of cash, totaling **$106.3 million** in H1 2022, up from **$67.7 million** in H1 2021[28](index=28&type=chunk) - The company had net debt borrowings of **$69.9 million** (**$88.8 million** borrowings less **$18.9 million** payments) in H1 2022, compared to net borrowings of **$25.0 million** in H1 2021[28](index=28&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, JV consolidation, real estate investments, debt structure, and revenue recognition - The company operates primarily in three segments: residential, hospitality, and commercial, with all real estate assets located in Northwest Florida[33](index=33&type=chunk)[34](index=34&type=chunk) - The company utilizes numerous joint ventures (JVs) for development, classified as either consolidated (if St. Joe is the primary beneficiary of a VIE or has majority control) or unconsolidated (accounted for via the equity method)[35](index=35&type=chunk)[49](index=49&type=chunk) - As of June 30, 2022, the company had total debt of **$297.2 million**, an increase from **$227.5 million** at year-end 2021, primarily to finance construction and development projects[125](index=125&type=chunk)[326](index=326&type=chunk) - On July 27, 2022, the Board of Directors declared a quarterly cash dividend of **$0.10 per share**[210](index=210&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=75&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2022 financial performance, highlighting strong demand in Northwest Florida despite macroeconomic headwinds [Business Overview and Market Conditions](index=75&type=section&id=Business%20Overview%20and%20Market%20Conditions) St. Joe focuses on Northwest Florida real estate development, facing supply chain issues but maintaining strong demand - The company's strategy is to use its existing land assets for residential, hospitality, and commercial ventures to increase recurring revenue and long-term shareholder value[213](index=213&type=chunk)[214](index=214&type=chunk) - While demand remains strong in H1 2022, the company is experiencing impacts from macro-economic factors like inflation and supply chain disruptions, leading to project delays and increased operating costs[216](index=216&type=chunk)[217](index=217&type=chunk) [Reportable Segments Analysis](index=77&type=section&id=Reportable%20Segments%20Analysis) Residential, Hospitality, and Commercial segments show growth, with **2,172** homesites, **476** hotel rooms, and **981,000 sq. ft.** leased - As of June 30, 2022, the Residential segment had **2,172** homesites under contract, expected to generate approximately **$167.8 million** in revenue, an increase from **1,349** homesites a year prior[228](index=228&type=chunk) - The Hospitality segment's hotel portfolio includes **476** operational rooms and **767** rooms under development/construction, for a total of **1,298** rooms[238](index=238&type=chunk) - The Commercial segment's leasing portfolio includes approximately **981,000 sq. ft.** of mixed-use, retail, and other space, which was **93% leased** as of June 30, 2022, and **1,043** completed multi-family and senior living units, which were **93% occupied**[246](index=246&type=chunk)[250](index=250&type=chunk) [Results of Operations](index=89&type=section&id=Results%20of%20Operations) Q2 2022 total revenue decreased to **$68.2 million** due to residential sales mix, while H1 revenue grew **17.3%** to **$133.1 million** Consolidated Revenue by Source (in millions) | Revenue Source | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Real estate revenue | $28.0 | $41.0 | $64.8 | $62.1 | | Hospitality revenue | $29.6 | $22.6 | $45.9 | $35.7 | | Leasing revenue | $9.3 | $6.4 | $18.1 | $11.9 | | Timber revenue | $1.3 | $2.2 | $4.3 | $3.8 | | **Total revenue** | **$68.2** | **$72.2** | **$133.1** | **$113.5** | - Q2 2022 residential real estate revenue decreased **29.2%** YoY to **$23.0 million** due to the mix of sales from different communities, with the average revenue per homesite dropping to **$83,000** from **$164,000** in Q2 2021[260](index=260&type=chunk) - Q2 2022 hospitality revenue grew **31.0%** YoY to **$29.6 million**, driven by new hotels (Hilton Garden Inn and Homewood Suites) and increased membership at Watersound Club[266](index=266&type=chunk) - Q2 2022 leasing revenue increased **45.3%** YoY to **$9.3 million**, primarily due to new leases at Watersound Origins Crossings apartments and Watercrest senior living community[268](index=268&type=chunk) [Liquidity and Capital Resources](index=112&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2022, the company held **$135.6 million** in cash, with total debt increasing to **$297.2 million** to fund capital expenditures - The company had cash, cash equivalents, and U.S. Treasury Bill investments of **$135.6 million** as of June 30, 2022[323](index=323&type=chunk) - Capital expenditures for the first six months of 2022 totaled **$157.9 million**, with **$69.7 million** for hospitality, **$45.8 million** for residential, and **$42.3 million** for commercial projects[325](index=325&type=chunk) - Total outstanding debt was **$297.2 million** as of June 30, 2022, up from **$227.5 million** at December 31, 2021[326](index=326&type=chunk) - The company has numerous guarantees on its own debt and the debt of its joint ventures, which could become full recourse in certain events[328](index=328&type=chunk)[330](index=330&type=chunk)[331](index=331&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=125&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate risk, with a 100 basis point increase raising annual interest expense by **$1.7 million** on variable-rate debt - A **100 basis point** increase in interest rates would increase annual interest expense by **$1.7 million** on the company's variable-rate debt, which is based on LIBOR and SOFR[369](index=369&type=chunk) - The company is managing the transition away from LIBOR, which is set to be discontinued in June 2023. Existing debt agreements contain provisions for alternative base rates[370](index=370&type=chunk) [Item 4. Controls and Procedures](index=125&type=section&id=Item%204.%20Controls%20and%20Procedures) CEO and CFO concluded disclosure controls were effective as of June 30, 2022, with no material changes in internal controls - The CEO and CFO have concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period[371](index=371&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[372](index=372&type=chunk) PART II [Item 1. Legal Proceedings](index=125&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course litigation and environmental regulations, not expecting a material adverse effect - The company is subject to ordinary course litigation and environmental regulations but does not expect them to have a material adverse effect[374](index=374&type=chunk)[376](index=376&type=chunk) [Item 1A. Risk Factors](index=127&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Annual Report on Form 10-K were reported - No material changes to risk factors were reported for the quarter[377](index=377&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=127&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **4,760** shares in Q2 2022 under its ongoing program, with **$99.8 million** remaining for future repurchases Share Repurchases in Q2 2022 | Period | Total Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining for Purchase (in Millions) | | :--- | :--- | :--- | :--- | | April 1-30, 2022 | — | $— | — | | May 1-31, 2022 | — | $— | — | | June 1-30, 2022 | 4,760 | $37.83 | $99.8 | | **Total** | **4,760** | **$37.83** | **$99.8** | - As of June 30, 2022, the company had **$99.8 million** remaining under its stock repurchase authorization[379](index=379&type=chunk) [Item 5. Other Information](index=127&type=section&id=Item%205.%20Other%20Information) No other information to report for this item - None[383](index=383&type=chunk) [Item 6. Exhibits](index=128&type=section&id=Item%206.%20Exhibits) Exhibits include CEO and CFO certifications under Sarbanes-Oxley Act and XBRL data files - Exhibits filed include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL data files[385](index=385&type=chunk) [SIGNATURES](index=129&type=section&id=SIGNATURES) The report was signed on July 27, 2022, by the company's CEO and CFO - The report was signed on July 27, 2022, by the company's CEO and CFO[389](index=389&type=chunk)

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's analysis for the quarter [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2022 financial statements show significant revenue and net income growth, driven by real estate investments [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Balance Sheet Highlights | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$1,256,345** | **$1,208,151** | | Investment in real estate, net | $741,455 | $690,113 | | Cash and cash equivalents | $33,115 | $70,162 | | **Total Liabilities** | **$619,313** | **$582,051** | | Debt, net | $256,763 | $223,034 | | **Total Equity** | **$637,032** | **$626,100** | - Total assets increased by approximately **$48.2 million** from December 31, 2021, to March 31, 2022, primarily driven by a **$51.3 million** increase in Investment in real estate, net[11](index=11&type=chunk) - Total liabilities increased by **$37.3 million**, mainly due to a **$33.7 million** increase in net debt[11](index=11&type=chunk) [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) | Income Statement Highlights | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Total Revenue** | **$64,871** | **$41,305** | | Real estate revenue | $36,774 | $21,053 | | Hospitality revenue | $16,321 | $13,067 | | Leasing revenue | $8,822 | $5,594 | | **Operating Income** | **$20,224** | **$5,539** | | **Net Income Attributable to the Company** | **$13,412** | **$3,196** | | **Diluted EPS** | **$0.23** | **$0.05** | - Total revenue for Q1 2022 increased by **57.1%** year-over-year, driven by strong growth across all segments, particularly in real estate revenue which grew by **74.7%**[16](index=16&type=chunk) - Net income attributable to the Company saw a substantial increase of **319.6%** year-over-year, rising from **$3.2 million** in Q1 2021 to **$13.4 million** in Q1 2022[16](index=16&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) | Comprehensive Income | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--- | :--- | :--- | | Net Income | $13,453 | $2,957 | | Total other comprehensive income, net of tax | $2,001 | $262 | | **Total comprehensive income attributable to the Company** | **$14,721** | **$3,458** | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) - Total equity increased from **$626.1 million** at December 31, 2021, to **$637.0 million** at March 31, 2022. The increase was primarily driven by net income of **$13.5 million** and other comprehensive income of **$2.0 million**, partially offset by dividends of **$5.9 million**[21](index=21&type=chunk) - The company paid dividends of **$0.10 per share**, totaling **$5.9 million**, during the three months ended March 31, 2022[21](index=21&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Highlights | Three Months Ended March 31, 2022 (in thousands) | Three Months Ended March 31, 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $19,813 | $9,828 | | Net cash used in investing activities | ($81,339) | ($71,093) | | Net cash provided by financing activities | $28,928 | $7,048 | | **Net decrease in cash, cash equivalents and restricted cash** | **($32,598)** | **($54,217)** | - Cash from operations more than doubled year-over-year, increasing to **$19.8 million** from **$9.8 million**, mainly due to higher net income and changes in operating assets and liabilities[23](index=23&type=chunk) - Investing activities used **$81.3 million**, primarily for expenditures for operating property (**$51.6 million**) and net purchases of debt securities (**$29.5 million**)[23](index=23&type=chunk) - Financing activities provided **$28.9 million**, largely from **$35.2 million** in new debt borrowings, which offset dividend payments of **$5.9 million**[23](index=23&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) - The company operates primarily in real estate development, asset management, and operations in Northwest Florida, with business conducted across three reportable segments: residential, hospitality, and commercial[28](index=28&type=chunk)[29](index=29&type=chunk) - The company utilizes numerous joint ventures (JVs) for development projects. Some are consolidated as Variable Interest Entities (VIEs) where St. Joe is the primary beneficiary, while others are unconsolidated and accounted for using the equity method. As of March 31, 2022, the total investment in unconsolidated JVs was **$52.6 million**[46](index=46&type=chunk)[59](index=59&type=chunk) - Total debt, net of issuance costs, increased to **$256.8 million** as of March 31, 2022, from **$223.0 million** at year-end 2021, primarily to finance construction and development projects across its segments[120](index=120&type=chunk) - On April 27, 2022, the Board of Directors declared a quarterly cash dividend of **$0.10 per share**[202](index=202&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=70&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports strong Q1 2022 financial performance, with significant revenue and net income growth driven by robust demand across all real estate segments [Business Overview and Market Conditions](index=70&type=section&id=Business%20Overview%20and%20Market%20Conditions) - The company is a real estate development, asset management, and operating company focused entirely on Northwest Florida, with **90%** of its land holdings within fifteen miles of the Gulf of Mexico[204](index=204&type=chunk) - Despite macroeconomic headwinds such as inflation and rising interest rates, demand across all business segments remains strong, attributed to the continued growth and quality of life in Northwest Florida[208](index=208&type=chunk) Q1 2022 Financial Highlights (YoY) | Q1 2022 Financial Highlights (YoY) | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenue | $64.9M | $41.3M | +57.1% | | Net Income (attributable to Company) | $13.4M | $3.2M | +319.6% | | Net Cash from Operating Activities | $19.8M | $9.8M | +101.6% | [Reportable Segments Overview](index=72&type=section&id=Reportable%20Segments%20Overview) - **Residential:** As of March 31, 2022, the company had **2,294** residential homesites under contract, expected to generate approximately **$175.6 million** in revenue. This is a significant increase from **1,268** homesites under contract for **$114.0 million** a year prior[222](index=222&type=chunk) - **Hospitality:** The company's hotel portfolio totals **1,177** rooms (**524** operational/managed, **653** under development). The Watersound Club membership grew to **2,271** members as of March 31, 2022, up from **1,722** a year ago[229](index=229&type=chunk)[255](index=255&type=chunk) - **Commercial:** The leasing portfolio includes **877** completed multi-family units (**97% leased**) and **107** senior living units (**54% occupied**). The commercial property portfolio consists of approximately **981,000 square feet** of leasable space, which was **90% leased**[236](index=236&type=chunk)[241](index=241&type=chunk) [Results of Operations](index=85&type=section&id=Results%20of%20Operations) Revenue by Segment | Revenue by Segment (in millions) | Q1 2022 | Q1 2021 | % Change | | :--- | :--- | :--- | :--- | | Real estate revenue | $36.8 | $21.0 | +75.2% | | Hospitality revenue | $16.3 | $13.1 | +24.4% | | Leasing revenue | $8.8 | $5.6 | +57.1% | | Timber revenue | $3.0 | $1.6 | +87.5% | - Residential real estate revenue grew **59.5%** to **$32.7 million**, driven by a higher average revenue per homesite sold (**$150,000** in Q1 2022 vs **$73,000** in Q1 2021) due to a favorable mix of sales from different communities[252](index=252&type=chunk) - Hospitality gross margin decreased from **12.2%** to **8.6%** YoY, impacted by pre-opening expenses for the new Homewood Suites hotel and increased labor and product costs[255](index=255&type=chunk) - Leasing revenue increased **57.1%** due to new leases at recently completed apartment and senior living communities. Gross margin improved to **58.0%** from **51.8%** as start-up expenses from the prior period subsided[256](index=256&type=chunk) [Liquidity and Capital Resources](index=99&type=section&id=Liquidity%20and%20Capital%20Resources) - As of March 31, 2022, the company had **$151.3 million** in cash, cash equivalents, and U.S. Treasury Bills[287](index=287&type=chunk) - Total capital expenditures for Q1 2022 were **$79.0 million**, with significant investments across residential (**$25.9 million**), commercial (**$25.8 million**), and hospitality (**$27.2 million**) segments[289](index=289&type=chunk) - Total outstanding debt increased to **$262.1 million** from **$227.5 million** at year-end 2021 to fund ongoing development[290](index=290&type=chunk) Summary of Cash Flows | Summary of Cash Flows (in millions) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $19.8 | $9.8 | | Net cash used in investing activities | ($81.3) | ($71.1) | | Net cash provided by financing activities | $28.9 | $7.1 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=113&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate fluctuations, impacting investment values and variable-rate debt expenses - A hypothetical **100 basis point** increase in interest rates would increase annual interest expense on variable-rate loans by **$1.4 million**[335](index=335&type=chunk) - The company is managing the transition from LIBOR to alternative rates like SOFR, as many of its debt agreements are tied to LIBOR. Existing agreements have provisions for an alternative base rate[336](index=336&type=chunk) [Item 4. Controls and Procedures](index=113&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO confirmed effective disclosure controls and procedures, with no material changes to internal controls during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[337](index=337&type=chunk) - No material changes were made to the internal controls over financial reporting during the quarter ended March 31, 2022[338](index=338&type=chunk) [PART II - OTHER INFORMATION](index=113&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides information on legal proceedings, risk factors, and other required disclosures [Item 1. Legal Proceedings](index=113&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various litigation and claims in the ordinary course of business, none expected to have a material adverse effect - The company is subject to a variety of litigation and claims in the ordinary course of business, none of which are expected to have a material adverse effect[340](index=340&type=chunk) [Item 1A. Risk Factors](index=115&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the filing of the 2021 Annual Report on Form 10-K - No material changes to the company's Risk Factors have occurred since the filing of the 2021 Annual Report on Form 10-K[343](index=343&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=115&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) None [Item 3. Defaults Upon Senior Securities](index=115&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None [Item 4. Mine Safety Disclosures](index=115&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Item 5. Other Information](index=115&type=section&id=Item%205.%20Other%20Information) None [Item 6. Exhibits](index=115&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including required certifications and Inline XBRL documents [Signatures](index=117&type=section&id=SIGNATURES) The report is duly signed and authorized by the President and CEO, and EVP and CFO, on April 27, 2022