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

PART I - FINANCIAL INFORMATION Item 1. Financial Statements (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 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] Condensed Consolidated Statements of Income 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] Condensed Consolidated Statements of Comprehensive Income 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] Condensed Consolidated Statements of Equity 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][159][161] Condensed Consolidated Statements of Cash Flows 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][384] Notes to the Condensed Consolidated Financial Statements 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 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] - 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] 2. Summary of Significant Accounting Policies 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][36] - All of the Company's real estate assets are concentrated in Northwest Florida, exposing it to regional economic and environmental risks[