The St. Joe Company (JOE) Q3 2024 earnings summary

Executive summary

• Hospitality and leasing segments delivered strong growth, offsetting a decline in real estate revenue for Q3 and YTD 2024 compared to 2023.

• Net income attributable to the company fell 13.4% year-over-year in Q3 2024, mainly due to lower homesite closings and reduced JV income.

• Over 22,000 homesites are in various stages of planning or development, with 1,381 homesites under contract as of September 30, 2024, expected to yield $122.3M.

• Total Q3 2024 revenue was $99.0M (down 2.4% YoY); nine-month revenue $298.4M (down 1.4% YoY).

• Quarterly dividend of $0.14 per share declared, payable December 6, 2024.

Financial highlights

• Hospitality revenue up 17% in Q3 to $55.4M; nine-month up 34% to $157.0M.

• Leasing revenue up 19% in Q3 to $15.6M; nine-month up 20% to $44.7M.

• Real estate revenue down 32% in Q3 to $28.0M; nine-month down 35% to $96.7M.

• Operating income rose 4% in Q3 to $21.2M; nine-month operating income at $69.9M.

• Cash and cash equivalents: $82.7M as of September 30, 2024.

Outlook and guidance

• Management expects continued strong demand across all segments, supported by net migration and limited housing supply in Northwest Florida.

• Over 1,381 homesites under contract expected to generate $122.3M in future revenue; 426 homes under contract in the Latitude Margaritaville Watersound JV.

• Continued focus on growing recurring revenue streams in hospitality and leasing.

• Ongoing development of the FSU/TMH Medical Campus, with future phases planned.

• Capital commitments to be funded by cash from operations, existing cash, partner capital, and financing.