The St. Joe Company Q4 FY2025 earnings call

• Fourth quarter had 24% revenue growth and 58% net income growth. Capital allocation details provided. • Full year revenue up 27%, net income up 56%, EPS up. Recurring revenue increased. • Homesite, leasing, and hospitality gross margins discussed. • Capital allocation strategy detailed. • Pipeline for future growth: 10 DSAPs approved, 3 started, plan to break ground on 2 more DSAPs in 2026. Residential homesite pipeline had ~23,900 homesites. Commercial segment had 94,500 sq ft under construction, plan to break ground on ~54,000 sq ft in 2026. Hospitality segment focused on increasing occupancy and margins. • Encouraged by inquiries from new homebuilders and reception of brokerage business.

Fourth quarter: Revenue up 24%, net income up 58%. Capital allocation: $18.5M capital expenditures, $15.1M stock repurchase (highest in 2025), $9.2M dividends, $8M debt reduction. Full year: Revenue $513.2M (+27% from $402.7M), net income $115.6M (+56% from $74.2M), EPS $2 (+from $1.27). Homesite gross margins 51% (from 47%), leasing gross margins 57% (from 54%), hospitality gross margins 31% (slight decrease from 32% due to opening expenses). Recurring revenue 56% today vs 15% 20 years ago.

• Plan to break ground on 2 more DSAPs in 2026. • Continue to assess and plan for new hotels, marinas, and club amenities. • Explore AI to improve operations. • Work closely with transportation planning organizations on West Bay Parkway Walton segment.

• Forward-looking statements subject to risks and uncertainties in earnings release and SEC filings. • Market conditions and changes in demand for real estate and related services could impact performance. • Uncertainties related to timing and success of new projects and developments. • Impact of economic factors on capital allocation and financial results.

Q: Are there any new multifamily units on the horizon for 2026 or 2027, any new hotel operations or acquisitions planned?

A: Planning to break ground in a new apartment complex near FSU Health campus. Constantly planning for new hotels and assessing acquisitions.

Q: After the opening of Topgolf at the Pier Park, any new developments coming in the near future, for the area?

A: Pier Park East is important, finalized ground lease with a surf park concept, planning infrastructure in 2026.

Q: Share prices have climbed nearly 40% since the last quarter. Does management still view buybacks as a prudent allocation of capital at this price?

A: Yes, buying shares back is a component of capital allocation.

Q: Why pay down debt here when the stock seems unusually priced relative to the per acre implied value?

A: Paying down project debt is a real cash expense, lowering interest is positive.

Q: Can you help break down the 47% year-over-year increase in real estate revenue in Q4?

A: Due to higher average price on homesite sales, sale of 136 North Splash Drive plus Watersound Villas, and residuals.

Q: How are you thinking about replacing the high-value homesites at Camp Creek as we start running out of lots? Are there plans for other similar high-price point neighborhoods, more commercial land sales?

A: Planning and permitting a replacement product in Origins West near an art park.

Q: Do you have any updates on lake amenity or Pigeon Creek neighborhood?

A: Lake amenity in planning phase. Pigeon Creek in discussion with one new builder.

Q: What is the status and current timing around Pigeon Creek?

A: In discussion with one homebuilder, cautiously optimistic for execution soon.

Q: Could you talk about the progress of some of the big projects along State Road 79 corridor?

A: Ward Creek moving along, FSU Health Campus progressing.

Q: Your LTV is under 25% when looking at your income-producing assets. Your LTV is well below 25%, and your cost of debt is in the low single digits. Why do you believe that paying down debt is a good use of capital? Why isn't the ideal debt level a lot higher than where you are today?

A: Managing debt is important as cash is king. Paying down project debt with higher interest rates.

Q: Assuming we all agree the company's NAV is meaningfully higher than the current stock price, does the company agree that future stock appreciation is highly dependent on the company's ability to continue growing EPS and increasing return on investment capital from its current levels? And the company -- and is the company aware of the importance of driving return on investment capital growth when it comes to long-term stock performance?

A: Yes.

Q: Over the past year, in areas surrounding St. Joe's land as well as areas immediately adjacent to our developments, there have been numerous lot sale transactions at significant premiums to where we have been selling lots. My belief is that some of the lowest hanging fruit as it relates to materially growing our cash flows is the coming -- in the coming years, especially in more DSAPs come online is to bring MPC low prices to level that most appropriately reflects market value. Furthermore, given our competitive positioning in the area, it's hard to understand why we would not be more of a price maker than a price taker? Is this something you can elaborate on?

A: Monitor market closely, don't sell lots at a discount, have back-end participation with homebuilders.

Q: What is the company's short- and long-term goals for the percent of revenue that is recurring?

A: Continue to grow recurring revenue as it's more sustainable and scalable.

Q: How is AI going to be implemented into the infrastructure of operations inside of St. Joe?

A: Explore AI as a tool to improve operations.

Q: What is the company's estimate of the average value per unused acre of land in the portfolio? And if answered per developable acre of land, then please disclose how many acres of land will not be able to be developed?

A: No one-size-fits-all number, information in disclosures.

Q: I've noticed you guys typically transfer land to LLCs when a monetization event is on the horizon. You mentioned the surf park at city center, would you care to detail the other 2 locations, and how/when you envision the monetization occurring?

A: Creating LLCs not exclusively for selling, assess assets for monetization.

Q: Any color you can provide on how the nonstop flight from New York has been performing for Delta? Do you think the flight is here to stay?

A: Preliminary performance good, campaign to increase awareness, cautiously optimistic.

Q: One more question. Great to see the brokerage business growing. Could you talk about the progress there? And anything that surprised you with how it's been received in the market?

A: Reception from agent community surprising positively, many agents interested in joining.