The St. Joe Company (JOE) Earnings

Management highlights

• First quarter had 5% revenue increase and 8% operating income increase. Highest first quarter revenue outside 2014 timberland sale. • Hospitality revenue up 13%, real estate up 4%, leasing down 10% (due to property sale). • Successfully executing strategy to grow recurring revenue, with hospitality and leasing accounting for 60% of total revenue. • Improving profitability with gross margin increases in hospitality and leasing. • Implemented capital allocation strategy with capital expenditures, dividends, share repurchases, and project debt reduction. • Announced contract with PulteGroup for homesites and long-range utility water and sewer agreement for future residential homesites. • Continued to fill pipeline for future growth, including real estate brokerage agency expansion plans.

Guidance

• First quarter had 5% revenue increase and 8% operating income increase. • Hospitality revenue up 13%, real estate up 4%, leasing down 10%. • Net income down 21% due to decrease in equity in income from unconsolidated joint ventures. • Cautiously optimistic about hospitality segment having a good year based on bookings and demand.

Segment performance

For the first quarter, revenue was $99.1 million, a 5% increase. Operating income was up 8%. Hospitality revenue was up 13%, real estate revenue up 4%, leasing revenue down 10% (due to sale of Watercrest senior living property). Net income down 21% due to decrease in equity in income from unconsolidated joint ventures. Hospitality revenue was $44.7 million, leasing revenue $14.7 million, together accounting for 60% of total revenue. Gross margin in hospitality improved to 24% in 2026 from 18% in 2025, and in leasing to 61% in 2026 from 55% in 2025.

Analyst Q&A

• Q: Elaborate on the pace of takedown at Pigeon Creek DSAP,

  A: Pace set by market, lessons learned from past agreements incorporated.

• Q: Was RevPAR uptick attributable to NYC marketing campaign,

  A: Majority organic, but seen increase from NYC bookings.

• Q: Considered or pursued marketing for Venture Crossing Enterprise Center for data center,

  A: Had discussions, could consider ground lease or sale.

• Q: Additional color on brokerage revenue,

  A: Real estate brokerage agency started, plans to open more locations, will look at full year data.

• Q: When to expect lease payments on Surf Park and progress on monetizing space,

  A: Commencement of Surf Park expected soon, discussions with other potential users.

• Q: Change in SouthWood in residential under-contract,

  A: No changes, excluded for presentation.

• Q: Accelerate offerings in Walton County,

  A: Pace determined by market demand, balance between meeting demand and not overextending.

• Q: St. Joe's commercial development compared to broader market,

  A: Proactive based on market demand, getting more calls from prospective commercial tenants.

• Q: Adding lots to Latitude partnership and club capacity,

  A: In discussions with partner for next phase contiguous to existing, constantly planning new club facilities.

• Q: $5 million change in other expense line in Latitude joint venture,

  A: Driven by volume of closings, per-unit margins above last year.

• Q: Custom homesites near art park,

  A: Planning another product in Origins West, preliminary work done.

• Q: Migration, population, tourism trends in Bay-Walton area,

  A: Migration continuing, broader geography, hospitality uptick.

• Q: Intracoastal Waterway Marina updates,

  A: Started work, need to obtain permits, will accelerate once obtained.

• Q: WindMark activity,

  A: Residential component successful, positive pipeline, assessing future opportunities.

• Q: Accelerate Lake Powell amenity,

  A: Actively planning, in sweet spot between demand and capacity.

• Q: Timeline for realizing revenue from Pigeon Creek and SouthWood homesites,

  A: Pigeon Creek closings likely 2027, SouthWood sells tracts with master infrastructure.