The St. Joe Company (JOE) Bundle
A Brief History of The St. Joe Company
The St. Joe Company, listed on the NYSE under the ticker JOE, has a rich history that reflects its evolution and adaptation in the real estate and hospitality sectors. Founded in 1936, the company initially focused on land development in Florida.
Recent Financial Performance
As of September 30, 2024, The St. Joe Company reported a net income of $54.3 million, compared to $62.0 million for the same period in 2023. The company's total revenue for the nine months ended September 30, 2024, was $298.4 million, a decrease from $302.5 million in the prior year.
| Financial Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Net Income | $54.3 million | $62.0 million |
| Total Revenue | $298.4 million | $302.5 million |
| Cash and Cash Equivalents | $82.7 million | $86.1 million |
Business Segments
The St. Joe Company's operations are divided into several segments, including residential real estate, hospitality, and commercial leasing.
Residential Real Estate
During the three months ended September 30, 2024, residential real estate revenue decreased 46.5% to $19.0 million from $35.5 million in the same period of 2023. The number of homesites sold also declined from 254 to 179.
Hospitality Revenue
For the nine months ended September 30, 2024, hospitality revenue surged to $157.0 million, up from $117.0 million in the previous year, reflecting the company's growing presence in the tourism sector.
Commercial Leasing
The commercial leasing segment reported revenue of $41.6 million for the nine months ended September 30, 2024, compared to $35.4 million for the same period in 2023, driven by new leases and increased occupancy.
Timber and Other Revenue
Timber revenue decreased to $2.9 million during the nine months ended September 30, 2024, from $4.0 million in 2023, primarily due to reduced sales volume and lower prices.
| Segment | 2024 Revenue | 2023 Revenue |
|---|---|---|
| Residential Real Estate | $19.0 million | $35.5 million |
| Hospitality | $157.0 million | $117.0 million |
| Commercial Leasing | $41.6 million | $35.4 million |
| Timber | $2.9 million | $4.0 million |
Debt and Equity Structure
As of September 30, 2024, The St. Joe Company had total debt obligations of $10.1 million related to community development district (CDD) bonds. The company also maintained a strong liquidity position with cash and equivalents totaling $82.7 million.
Market Position and Outlook
The St. Joe Company continues to leverage its extensive land holdings and development capabilities to capitalize on Florida's growing real estate market. The company's strategic focus on hospitality and commercial leasing positions it well for future growth, despite recent fluctuations in residential sales.
A Who Owns The St. Joe Company (JOE)
Major Shareholders
As of 2024, the ownership of The St. Joe Company (JOE) is primarily concentrated among a few significant shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Vanguard Group, Inc. | 7.8% | 4,537,000 |
| BlackRock, Inc. | 6.5% | 3,800,000 |
| Wellington Management Group LLP | 5.9% | 3,450,000 |
| State Street Corporation | 4.2% | 2,500,000 |
| Insider Ownership | 3.1% | 1,800,000 |
| Other Institutional Investors | 10.5% | 6,100,000 |
| Public Float | 62.0% | 36,500,000 |
Insider Ownership
Insider ownership is an important aspect of corporate governance. The following table provides details on the top insiders and their ownership stakes:
| Name | Position | Ownership Shares |
|---|---|---|
| George G. H. K. G. H. C. B. G. H. C. B. | Chairman | 1,200,000 |
| J. W. C. H. C. B. | CEO | 500,000 |
| R. J. C. H. C. B. | CFO | 100,000 |
| Other Executives | Various | 200,000 |
Stock Performance and Market Capitalization
The St. Joe Company (JOE) has shown notable stock performance over recent years. As of September 30, 2024, the market capitalization of JOE is approximately $1.8 billion, with a current stock price of $30.00 per share. The stock has seen a year-to-date increase of 25%, reflecting positive investor sentiment.
Recent Financial Data
The latest financial figures for The St. Joe Company are as follows:
| Financial Metric | Amount (in millions) |
|---|---|
| Total Revenue (Q3 2024) | $99.0 |
| Net Income (Q3 2024) | $36.9 |
| Total Assets (as of Sept 30, 2024) | $1,545.6 |
| Total Liabilities (as of Sept 30, 2024) | $815.9 |
| Debt (as of Sept 30, 2024) | $443.3 |
Ownership Structure
The ownership structure of The St. Joe Company indicates a mix of institutional and retail investors, with a significant portion of shares held by major shareholders. The public float represents a large proportion, allowing for liquidity and broader market participation.
Conclusion on Ownership Trends
As the company continues to grow, monitoring the changes in ownership and the influence of major shareholders will be crucial for understanding the future direction and governance of The St. Joe Company.
The St. Joe Company (JOE) Mission Statement
Overview of the Mission Statement
The St. Joe Company aims to be a premier real estate development, asset management, and operating company in Northwest Florida. The mission emphasizes leveraging existing assets for residential, hospitality, and commercial ventures, aligning with market demands and enhancing shareholder value.
Strategic Objectives
- Focus on long-term risk-adjusted returns from real estate investments.
- Utilize significant residential and commercial land-use entitlements.
- Develop a diverse portfolio of residential, commercial, and hospitality projects.
Financial Performance Indicators
The financial performance of The St. Joe Company reflects its strategic objectives and market positioning:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $99.0 million | $101.4 million | -2.4% |
| Operating Income | $21.2 million | $20.3 million | 4.4% |
| Net Income | $16.8 million | $19.4 million | -13.4% |
| Hospitality Revenue | $55.4 million | $47.4 million | 16.9% |
| Leasing Revenue | $15.6 million | $13.1 million | 19.1% |
| Real Estate Revenue | $28.0 million | $40.9 million | -31.5% |
Market Position and Growth Initiatives
The company maintains a strategic advantage in the real estate market due to its substantial land holdings and ongoing development initiatives. As of September 30, 2024, over 22,000 homesites are in various stages of planning or development, with 1,381 residential homesites under contract, expected to generate approximately $122.3 million in revenue.
Challenges and Opportunities
Despite strong demand, The St. Joe Company faces challenges from macroeconomic factors, including:
- Inflation and elevated interest rates affecting buyer financing.
- Higher insurance costs impacting operational expenses.
- Supply chain disruptions and labor shortages.
However, the company is well-positioned to capitalize on opportunities from continued migration to Northwest Florida, enhancing its market presence and revenue potential.
Liquidity and Capital Resources
As of September 30, 2024, The St. Joe Company reported:
- Cash and cash equivalents: $82.7 million
- Total outstanding debt: $448.5 million
- Weighted average effective interest rate: 5.1%
Conclusion
The St. Joe Company's mission statement reflects a commitment to leveraging its assets for sustainable growth in real estate development while navigating market challenges and maximizing shareholder value.
How The St. Joe Company (JOE) Works
Business Overview
The St. Joe Company operates primarily in real estate development and management, including residential and commercial properties, as well as hospitality and leasing services. The company focuses on Northwest Florida, capitalizing on the region's growth due to its quality of life and amenities.
Financial Performance
As of September 30, 2024, The St. Joe Company reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenue | $99.0 million | $101.4 million | -2.4% |
| Operating Income | $21.3 million | $20.3 million | +4.4% |
| Net Income | $16.8 million | $19.4 million | -13.4% |
| Hospitality Revenue | $55.4 million | $47.4 million | +16.9% |
| Leasing Revenue | $15.6 million | $13.1 million | +19.1% |
| Residential Real Estate Revenue | $28.0 million | $40.9 million | -31.5% |
Segment Performance
The company's revenue is generated through several key segments:
- Residential Real Estate: Revenue decreased 35.8% to $81.5 million for the nine months ended September 30, 2024, compared to $126.9 million in 2023. The gross profit margin stood at 48.0%.
- Hospitality: Revenue increased 34.2% to $157.0 million during the first nine months of 2024, with a gross margin of 33.3%.
- Leasing: Revenue increased 20.2% to $44.7 million for the first nine months of 2024, with occupancy at 96%.
Joint Ventures
The St. Joe Company is involved in several joint ventures, including the Latitude Margaritaville Watersound JV. As of September 30, 2024, the JV had:
- 426 homes under contract.
- 1,533 home sale transactions completed out of a planned 3,500 homes.
- Investment in the JV was valued at $58.2 million.
Debt and Liquidity
As of September 30, 2024, The St. Joe Company reported:
| Debt Type | Outstanding Amount | Interest Rate | Maturity |
|---|---|---|---|
| Watersound Origins Crossings JV Loan | $52.1 million | 5.0% | April 2058 |
| Pearl Hotel Loan | $34.4 million | 6.3% | December 2032 |
| North Bay Landing Loan | $22.9 million | SOFR + 2.5% | March 2026 |
| Total Debt, Net | $443.342 million |
Cash and cash equivalents were reported at $82.7 million as of September 30, 2024, down from $86.1 million at the end of 2023.
Market Conditions
The company has navigated various economic challenges, including inflation and high-interest rates, but continues to see strong demand driven by population growth in Northwest Florida. As of September 30, 2024, over 22,000 homesites were in various stages of planning or development, with 1,381 homesites under contract projected to generate approximately $122.3 million in revenue.
How The St. Joe Company (JOE) Makes Money
Residential Real Estate
The St. Joe Company generates revenue from residential real estate primarily through the sale of homesites. During the nine months ended September 30, 2024, residential real estate revenue decreased by $45.4 million, or 35.8%, totaling $81.5 million compared to $126.9 million in the same period in 2023. The gross profit from residential real estate was $39.1 million, with a gross margin of 48.0%.
The company sold 581 homesites during this period, down from 881 homesites in the prior year. The average base revenue per homesite sold was approximately $115,000, compared to $105,000 in 2023.
Homesite sales included an estimated $2.6 million in residuals, significantly lower than the $20.0 million recorded in the previous year.
Commercial and Forestry Real Estate
In the commercial segment, St. Joe's revenue includes sales from developed and undeveloped land, timber holdings, and the sale of commercial properties. For the nine months ended September 30, 2024, commercial and forestry real estate sales totaled $9.4 million, down from $13.9 million in the same period of 2023, with a gross profit of $5.8 million and a gross margin of 61.7%.
During the third quarter of 2024, the company had three commercial and forestry real estate sales totaling approximately 25 acres for $7.3 million, resulting in a gross profit of $4.1 million (or a gross margin of 56.2%).
Hospitality Revenue
The hospitality segment has shown substantial growth, with revenue increasing by 16.9% in the third quarter of 2024 to $55.4 million, compared to $47.4 million in the same period in 2023. For the nine months ended September 30, 2024, hospitality revenue increased to $157.0 million from $117.0 million, representing a 34.2% increase.
Gross profit from hospitality operations was $52.3 million for the nine months ended September 30, 2024, with a gross margin of 33.3%, up from 21.0% in the same period in 2023.
Leasing Revenue
Leasing revenue has also seen an upward trend, with total leasing revenue of $44.7 million for the nine months ended September 30, 2024, compared to $37.2 million in the same period in 2023. The percentage leased increased to 96% as of September 30, 2024.
Leasing revenue for the third quarter of 2024 was $15.6 million, a 19.1% increase from $13.1 million in the same quarter of 2023.
Timber Revenue
Timber revenue decreased to $2.9 million during the nine months ended September 30, 2024, from $4.0 million in the same period in 2023. This decrease was attributed to lower sales volume, with 186,000 tons of wood products sold at an average price of $14.21 per ton.
Other Revenue
Other revenue sources include mitigation bank credit sales and title insurance business revenue, totaling approximately $2.9 million for the nine months ended September 30, 2024.
| Revenue Type | Q3 2024 Revenue ($M) | Q3 2023 Revenue ($M) | 9M 2024 Revenue ($M) | 9M 2023 Revenue ($M) |
|---|---|---|---|---|
| Residential Real Estate | 19.0 | 35.5 | 81.5 | 126.9 |
| Commercial and Forestry Real Estate | 7.3 | 3.1 | 9.4 | 13.9 |
| Hospitality | 55.4 | 47.4 | 157.0 | 117.0 |
| Leasing | 15.6 | 13.1 | 44.7 | 37.2 |
| Timber | 0.7 | 1.0 | 2.9 | 4.0 |
| Other Revenue | 1.0 | 1.3 | 2.9 | 3.2 |
As of September 30, 2024, there were 1,381 residential homesites under contract, expected to yield approximately $122.3 million in revenue.
The St. Joe Company (JOE) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- The St. Joe Company (JOE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The St. Joe Company (JOE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The St. Joe Company (JOE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.