The St. Joe Company (NYSE: JOE) (the "Company") today announced Net Income for the second quarter of 2017 of $10.8 million, or $0.15 per share, compared with Net Income of $1.8 million, or $0.02 per share, for the second quarter of 2016. A significant portion of the Company's Net Income for the second quarter of 2017 was generated from investment income. For the six months ended June 30, 2017, the Company reported Net Income of $15.1 million, or $0.21 per share compared to Net Income of $10.5 million, or $0.14 per share for the same period last year.
Second Quarter highlights include:
Second Quarter highlights include:
- Total revenue for the quarter was $30.4 million as compared to $29.5 million in the second quarter of 2016 due to increases in real estate revenue, leasing revenue and timber revenue, partially offset by a decrease in resorts and leisure revenue. The Company's second quarter 2017 revenue was generated from $7.2 million of real estate revenue, $19.3 million from resorts and leisure operations, $2.7 million from leasing operations and $1.2 million from timber revenue.
- Real estate revenue increased to $7.2 million in the second quarter of 2017 as compared to $6.7 million in the second quarter of 2016. Real estate revenue in the second quarter of 2017 was comprised of $4.7 million in residential real estate revenue, $2.2 million in commercial real estate revenue and $0.3 million in rural land revenue. The second quarter of 2016 consisted of $5.8 million in residential real estate revenue and $0.9 million in rural land revenue. Income before income taxes for the three months ended June 30, 2017 for the Company's residential and commercial segments increased by $1.3 million as compared to the three months ended June 30, 2016. The increase was due to higher volume, improved margins, and lower operating costs.
- Resorts and leisure revenue decreased slightly in the second quarter of 2017 to $19.3 million as compared to $19.8 million in the second quarter of 2016. The decrease during the second quarter of 2017 as compared to the same period in 2016 was primarily related to lower vacation rental revenue, partially offset by revenue increases from St. Joe Club & Resorts, the Company's private membership club. Although resort and leisure revenue decreased 2.5% for the quarter, income before income taxes increased by $0.6 million compared to the second quarter of 2016 due to improved operating efficiency and cost management.
- Leasing revenue increased by approximately $0.4 million in the second quarter of 2017 as compared to the second quarter of 2016. Income before income taxes increased $0.6 million for the three months ended June 30, 2017 as compared to the same period in 2016. As of June 30, 2017, the Company's leasing portfolio consisted of approximately 671,000 square feet of rentable space, which was 84% leased, an increase in rentable space of approximately 67,000 square feet since December 2016. In addition, the Company had approximately 144,000 square feet of rentable space under construction as of June 30, 2017.
- Investment income from available-for-sale securities for the three months ended June 30, 2017 totaled $12.1 million as compared to $0.8 million for the three months ended June 30, 2016. The increase of $11.3 million in the second quarter of 2017 was due to increased interest and dividend income as a result of changes in the Company's investment portfolio and sales of investments at a realized gain of $7.7 million.
- As of June 30, 2017, the Company had cash, cash equivalents and investments of $414.9 million as compared to $392.6 million as of March 31, 2017, an increase of $22.3 million.
- Other operating and corporate expenses declined by $1.5 million in the second quarter of 2017 as compared to the same time last year. The decrease was primarily due to reductions in other operating expenses and a reimbursement of $0.7 million of legal fees from a litigation settlement.
