The St. Joe Company Enters the Apartment Management Business Through a Joint Venture With HomeCorp

Rhea-AI Summary

The St. Joe Company (NYSE: JOE) and HomeCorp have launched a joint venture to form a new apartment management company. This venture will manage existing properties, including Watersound Origins Crossings and Pier Park Crossings, and additional projects in the pipeline. With a current portfolio of 1,117 units, 432 of which are leased, the partnership aims to enhance management and revenue capabilities. The company plans to further develop apartment communities, leveraging HomeCorp's expertise while it focuses on vertical integration for recurring revenue.

Positive

• Formation of a joint venture with HomeCorp to manage apartment communities, enhancing operational efficiencies.
• Current apartment portfolio includes 1,117 units, 432 completed and 99% leased, indicating strong demand.
• Plans for additional apartment projects under construction and in planning stages to grow the portfolio.

Negative

• Risks associated with completing ongoing apartment projects and maintaining tenant interest in Northwest Florida.

The St. Joe Company (NYSE: JOE) (“St. Joe”) and HomeCorp today announced the formation of a joint venture partnership to create a new apartment management company. The new company will initially manage the Watersound Origins Crossings and Pier Park Crossings apartment communities, both of which are joint ventures between St. Joe and HomeCorp.

“This is a natural next step in our relationship with St. Joe,” stated Herbert Scheuer, Principal of HomeCorp. “Together we are having success with our apartment communities in Northwest Florida. Going forward we will be able to jointly manage those projects as well as some of the apartment communities that St. Joe plans to open in the future.”

St. Joe has additional planned apartment community projects under construction or in the planning stages that are planned to be managed by this new venture. “We intend to continue to pursue new apartment communities on our land holdings,” said Dan Velazquez, Senior Vice President of Commercial Real Estate for St. Joe. “This new venture into apartment community management enables us to vertically integrate in this category and to capture more recurring revenue from our projects, while tapping into the management expertise of our partner, HomeCorp.”

In total, St. Joe’s apartment portfolio includes 1,117 units. Of those, as of June 10, 2021, 432 are completed and are 99% leased with an additional 685 units under construction. Additional apartment communities are in the planning and engineering stages.

Important Notice Regarding Forward-Looking Statements

This press release contains “forward-looking statements,” within the meaning of Section 21E of the Securities Exchange Act of 1934, including statements regarding the anticipated activities of this new apartment management venture. These forward-looking statements are qualified in their entirety by cautionary statements and risk factors set forth in St. Joe’s filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2020, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2021 and subsequent filings, as well as the following: (1) the ability of St. Joe to complete its current apartment community projects under construction and (2) the continued interest of tenants in Northwest Florida.

About The St. Joe Company

The St. Joe Company is a real estate development, asset management and operating company with real estate assets and operations in Northwest Florida. The Company intends to use existing assets for residential, hospitality and commercial ventures. St. Joe has significant residential and commercial land-use entitlements. The Company actively seeks higher and better uses for its real estate assets through a range of development activities. More information about the Company can be found on its website at www.joe.com. On a regular basis, the Company releases a video showing progress on projects in development or under construction. See https://www.joe.com/video-gallery for more information.

About HomeCorp

HomeCorp, a fully integrated real estate organization since 1987, is a recognized leader in the ownership, management, acquisition and development of multi-family residences. More information about HomeCorp can be found on its website at www.homecorpinc.com.

©The St Joe Company 2021. “St. Joe^®”, “JOE^®”, the “Taking Flight” Design^®, “St. Joe (and Taking Flight Design) ^®”, “Watersound Origins^®”, and “Pier Park^®” are registered service marks of The St. Joe Company or its affiliates.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210610005899/en/

FAQ

What is the new joint venture by St. Joe and HomeCorp?

The joint venture aims to create a new apartment management company to oversee existing and future apartment projects.

How many apartment units does St. Joe currently have?

St. Joe has a portfolio of 1,117 apartment units, with 432 completed and leased at 99% occupancy.

What are the future plans for St. Joe's apartment communities?

St. Joe intends to pursue new apartment community developments on its land holdings.

What are the potential risks for St. Joe's new apartment management venture?

The risks include the ability to complete current projects and continued tenant interest in the Northwest Florida market.