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Kurt

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Staff member
Oct 15, 2004
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SoWal
mooncreek.com
The St. Joe Company (NYSE: JOE) (the “Company”) today announced net income for the first quarter of 2019 of $2.0 million, or $0.03 per share, compared with net income of $0.7 million, or $0.01 per share, for the first quarter of 2018. The following information compares the first quarter of 2019 to the first quarter of 2018.

Real Estate Revenue

Real estate revenue decreased to $4.6 million in 2019 as compared to $7.7 million in 2018. This decrease was primarily related to timing of homesite development completion and closings primarily in the Watersound Origins, SouthWood and Breakfast Point communities, partially offset by an increase in commercial real estate sales.

As of March 31, 2019, the Company had 773 residential homesites under contract, expected to result in revenue of approximately $74.5 million over the next several years. The Company expects 199 of these residential homesites under contract to close in 2019 resulting in approximately $11.6 million in revenue. As of March 31, 2018, the Company had 141 residential homesites under contract, expected to result in revenue of approximately $5.9 million ($4.6 million of which has been realized through March 31, 2019). The increase is due to increased builder contracts for residential homesites.

Hospitality Revenue

Hospitality revenue increased in 2019 as compared to 2018 by $0.3 million due to an increase in resorts, lodging and other management services, partially offset by a decrease in marina revenue. In January 2019, the Company opened the new WaterColor Store in the WaterColor Town Center. The Company’s marinas remain closed due to the damage sustained by Hurricane Michael. Planning of the redevelopment of the marinas is ongoing.

Leasing Revenue

Leasing revenue increased by approximately $0.1 million in 2019 as compared to 2018. As of March 31, 2019, the Company’s rentable space consisted of approximately 811,000 square feet, which was 93% leased as compared to approximately 813,000 square feet as of March 31, 2018, which was 89% leased. The Company repurposed 1,332 square feet of rentable space in WaterColor Town Center into a new Company operated store and 1,534 square feet at WaterSound Gatehouse for a new Company operated store, slated to open later this year.

As of March 31, 2019, the Company had under construction three commercial buildings totaling 73,785 square feet of rentable space, a 240-unit apartment community and a 124-room hotel. In addition, subsequent to the quarter, the Company initiated construction of two commercial projects totaling approximately 36,596 square feet of rentable space.

Timber Revenue

Timber revenue decreased to $0.5 million 2019 as compared to $1.7 million in 2018 due to the effects of Hurricane Michael.

Investment Income

Investment income in 2019 totaled $6.0 million as compared to $3.6 million in 2018. In 2019, the Company had approximately $2.0 million in unrealized investment gains on equity securities as compared to $0.5 million unrealized investment losses for the same quarter in 2018.

Other Operating and Corporate Expenses

Other operating and corporate expenses of $6.0 million remained essentially flat in 2019 as compared to 2018. The Company continues to manage operating costs to maintain an efficient structure.

Liquidity

The Company had cash, cash equivalents and investments of $238.8 million as of March 31, 2019, compared to $240.3 million as of December 31, 2018, a decrease of $1.5 million. The decrease was related to $7.1 million used for stock repurchases, offset by net receipts from the Company’s operations and other activities.

Jorge Gonzalez, the Company’s President and Chief Executive Officer, said: “Construction and development are expanding throughout our residential, commercial leasing and sales and hospitality segments. Our contracted residential homesites increased to 773 lots with anticipated gross revenue of over $74 million. We have over 110,000 square feet of new commercial projects under construction and we are growing our hospitality assets. The first apartment units are complete and are occupied. A new hotel is well underway.” Mr. Gonzalez added, “As outlined in our Annual Report, this year we expect thirty new projects or phases that will grow recurring revenue and further shareholder value.”

The following projects are under construction or development:

Commercial projects

  • VentureCrossings Enterprise Centre Flex Space Building – 59,770 rentable square feet
  • South Walton Commerce Park Flex Space Building –11,500 rentable square feet
  • Starbucks at Beckrich Office Park –2,515 rentable square feet
  • Beckrich Office Park Building #3 –33,250 rentable square feet
  • Bank Building at North Glades/Breakfast Point –3,346 rentable square feet
  • Pier Park Crossings Apartments Joint Venture (“JV”) – 240 units
  • TownePlace Suites Hotel JV – 124 rooms
Residential projects

  • Watersound Origins Residential (Phase IV) – 305 homesites
  • Watersound Origins Residential (Phase V) – 466 homesites
  • East Bay County (Titus Park) – 154 homesites
  • WindMark Beach Residential – 94 homesites
  • Breakfast Point – 67 homesites
Hospitality assets

  • WaterSound Beach Club Expansion
  • Panama City Beach Gulf-Front Vacation Rentals – two homes
 
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