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Kurt

Admin
Staff member
Oct 15, 2004
2,233
4,925
SoWal
mooncreek.com
The St. Joe Company (NYSE: JOE) (the “Company”) today announced a net loss for the fourth quarter of 2018 of ($0.1) million, or ($0.00) per share, compared with net income of $38.5 million, or $0.58 per share, for the fourth quarter of 2017. The fourth quarter of 2018 included approximately $1.4 million in net expenses related to Hurricane Michael, which impacted the area on October 10, 2018. The insurance claims for recovery of these expenses, as well as the expected recovery of the business interruption claims related to the Bay Point Marina and Port St. Joe Marina operations are in process. In addition, the fourth quarter of 2018 included approximately $3.7 million unrealized loss on the Company’s preferred investments due to market volatility in December 2018, of which a significant portion has since recovered.

The fourth quarter of 2017 included the sale of the Company’s short term vacation rental management business, which resulted in a net gain of $9.8 million recorded in other income, net of expenses. In addition, the 2017 fourth quarter results included a one-time credit of $33.5 million to re-measure the Company’s net deferred tax liability as a result of the Tax Cuts and Jobs Act enacted into law on December 22, 2017, which reduced the Company’s federal statutory income tax rate from 35% to 21% as of January 1, 2018.

For the year ended December 31, 2018, the Company reported net income of $32.4 million, or $0.52 per share, compared to net income of $59.5 million, or $0.84 per share, for the year 2017. The 2017 results included the sale of the short term vacation rental business, the income tax credit and $26.8 million of net investment income from the Company’s investment securities, while the 2018 full year results included $3.4 million of net investment income from the Company’s investment securities and a $23.1 million pre-tax benefit from an impact fees receipt related to the Company’s 2014 RiverTown transaction.

During the twelve months ended December 31, 2018, the Company repurchased 5,238,566 shares of its common stock for $93.4 million. This repurchase represents approximately 8% of the Company’s outstanding common stock, bringing the total repurchases to approximately 34% of the Company outstanding stock in the past four years. As of December 31, 2018, the Company had approximately 60.7 million shares of its common stock outstanding. Subsequent to December 31, 2018, the Company repurchased an additional 471,500 shares of its common stock for $7.1 million and has approximately $35.8 million in remaining authority available to purchase shares of the Company common stock pursuant to the Stock Repurchase Program.

As of December 31, 2018, the Company had cash, cash equivalents and investments of $240.3 million, as compared to $303.4 million as of December 31, 2017, a decrease of $63.1 million. During 2018, $93.4 million was used to repurchase shares of the Company common stock.

Other operating and corporate expenses totaled $20.6 million for 2018 as compared to $20.4 million for 2017. For the year 2018, the operating and corporate expenses represent 18.7% of revenue compared to 20.4% in 2017. The Company continues to focus on a cost discipline to support performance.

Financial data schedules included in this press release provide greater detail on business segment performance, summarizing the consolidated results, summary balance sheets, debt schedule and other operating and corporate expenses for both the fourth quarter and year, 2018 and 2017.

Jorge Gonzalez, the Company’s President and Chief Executive Officer, said, “Our 2019 strategic plan includes making investments that we believe will contribute towards our future growth, particularly in real estate projects that provide recurring revenue. We anticipate evaluating opportunities to develop, improve or acquire a broad range of asset types, as long as they provide acceptable rates of return.” Mr. Gonzalez added, “The potential 2019 projects are in different stages of approval or design. Our team is working with planners, architects and engineers as well as, in some cases, potential joint venture partners to quickly initiate development or construction on these needed projects.”

In 2018, the Company initiated the planning of several new projects and specifically began the development or construction of the following projects or phases:

  • Pier Park Crossings Apartments Joint Venture (“JV") (240 units)
  • TownPlace Suites Hotel JV (124 rooms)
  • Breakfast Point Residential (88 homesites)
  • Watersound Origins Residential (359 homesites)
  • WaterColor Crossings Two-Tenant Commercial Building (7,135 square feet)
  • South Walton Commerce Park Flex Space Building (11,570 square feet)
  • WaterSound Beach Club Expansion
  • Panama City Beach Gulf-Front Vacation Rental Homes (two homes)
  • WindMark Beach Residential (94 homesites)
Commercial Leasing and Sales segment:

As of December 31, 2018,the Company owned a portfolio of approximately 812,630 square feet of rentable commercial space which was 93% leased. As of December 31, 2017, the Company owned 813,602 square feet of rentable commercial space which was 87% leased.

In 2019, the Company expects to initiate the planning of several new projects and specifically intends to initiate the development or construction of the following commercial projects:

  • Watersound Origins Apartments JV (expected 217 units)
  • WaterCrest Assisted Living JV at Topsail (expected 107 units)
  • Sacred Heart Health Care Facility at Watersound Origins (approximately 6,500 square feet)
  • Busy Bee Convenience Store JV (approximately 15,000 square feet)
  • Starbucks at Beckrich Office Park (approximately 2,500 square feet)
  • Topsail West Restaurant (approximately 3,400 square feet)
  • Pier Park Northwest Commercial Building (approximately 18,000 square feet)
  • Bank Building at North Glades/Breakfast Point (approximately 3,300 square feet)
  • VentureCrossings Enterprise Centre Flex Space Building (approximately 60,000 square feet)
  • Beach Commerce Park Flex Space Building (approximately 10,000 square feet)
  • Cedar Grove Commerce Park Flex Space Building (approximately 19,800 square feet)
  • Beckrich Office Park Building #3 (approximately 33,500 square feet)
  • Watersound Origins Multi-Tenant Commercial Building (approximately 20,000 square feet)
  • Mexico Beach Village Apartments JV (expected 216 units)
Residential Real Estate segment:

The Company has residential communities at different stages of planning or development. In 2018, a total of 202 homesites were sold as compared with 174 homesites in 2017.

In 2019, the Company expects to initiate the planning of new projects and specifically intends to initiate the development or construction of new phases at the following residential communities:

  • Watersound Origins
  • SouthWood
  • WaterColor
  • Camp Creek *
  • Breakfast Point East *
  • Latitude Margaritaville Watersound JV*
  • East Bay County (Titus Road)*
  • East Bay County (Brannonville)*
  • East Bay County (Park Place)*
  • Mexico Beach Village *
* Signifies a new residential community

Hospitality segment:

The Company presently owns and/or operates a wide range of hospitality assets, including the WaterColor Inn, WaterSound Inn, The Pearl Hotel, Camp Creek Golf Club, Shark’s Tooth Golf Club, WaterSound Beach Club, FOOW restaurant, Havana Beach Bar & Grille, WaterColor Store, The Clubs by JOE private membership club and other related assets.

In 2019, the Company expects to initiate the planning of new projects and specifically intends to initiate the development or construction of the following new hospitality projects:

  • Embassy Suites Hotel JV (approximately 250 rooms)
  • Camp Creek Inn (approximately 75 rooms)
  • Camp Creek Club Lifestyle Village
  • Hotel at Northwest Florida Beaches International Airport (approximately 110 rooms)
  • Bay Point Marina*
  • Port St. Joe Marina*
* Hurricane Michael damage reconstruction and/or expansion

Some of the projects described above in the commercial leasing and sales, residential real estate and hospitality segments are currently expected to be developed through potential joint ventures with third parties, subject to negotiation of definitive agreements. While the Company expects to commence development and construction of a number of projects beginning in 2019, timing of some projects may be delayed due to factors beyond the Company’s control.
 

James Bentwood

Beach Fanatic
Feb 24, 2005
1,495
606
Wow that is a lot of projects going on or coming up. I wonder if they have figured out the development business since getting through 2008.

How does St. Joe handle the joint ventures - provide the land and keep an interest? Long term lease? Anyone know?
 
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