St. Joe Q3 2022 Earnings Report
Key Takeaways
St. Joe Company reported a 7% increase in quarterly revenue to $57.6 million, driven by strong growth in leasing and hospitality. However, net income decreased by 18% to $12.4 million due to a decline in real estate revenue and a one-time payment received in the previous year. The company declared a quarterly dividend of $0.10 per share.
Total revenue increased by 7% year-over-year to $57.6 million.
Leasing revenue increased by 42% and hospitality revenue increased by 30%.
Real estate revenue decreased by 26% due to timing of homesite closings.
Net income attributable to the Company decreased by 18% to $12.4 million.
St. Joe
St. Joe
St. Joe Revenue by Segment
Forward Guidance
The company expects increased activity in its unconsolidated joint ventures and anticipates completion of multi-family, senior living units, and hotel rooms in 2023. However, supply chain disruptions have delayed homesite and home deliveries and increased construction costs.
Positive Outlook
- Expect activity in unconsolidated joint ventures to continue to increase.
- Home delivery volume increases in the Latitude Margaritaville Watersound community.
- Construction completes at the Watersound Fountains Independent Living.
- Construction completes at the new Residence Inn by Marriott hotel.
- Company maintains a fortress-like balance sheet
Challenges Ahead
- Supply chain disruptions have delayed homesite and home deliveries by a few months.
- Construction costs have increased.
- Potential negative impact of longer-term property development strategy, including losses and negative cash flows for an extended period of time if we continue with the self-development of granted entitlements.
- Reductions in travel and other risks inherent to the hospitality industry.
- The financial condition of commercial tenants
Revenue & Expenses
Visualization of income flow from segment revenue to net income