The St. Joe pany(JOE) - 2025 Q2 - Quarterly Results

Executive Summary 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 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] - 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] CEO Commentary 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] - 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] - 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] Consolidated Financial Performance 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 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 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] - 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][9] Net Income and EPS 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) 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 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 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] - 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] - 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] 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] 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] - 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] Financial Position and Capital Allocation The company actively managed its capital through significant investments, shareholder returns, and debt reduction, maintaining a stable financial position Corporate and Other Operating Expenses 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 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] - 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] - Company debt as of June 30, 2025, was approximately 28% of total assets[26] 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] Corporate Governance and Outlook 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 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] - 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][16] Earnings Call and Additional Information 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] - 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 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] - 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][43] - 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][44] About The St. Joe Company 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] - The company intends to use existing assets for residential, hospitality, and commercial ventures and has significant residential and commercial land-use entitlements[45] Financial Data Schedules 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) 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) 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) 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) 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] 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 |