The St. Joe Company Reports Second Quarter and First Half 2024 Results and Increases Quarterly Dividend by 17%
The St. Joe Company (NYSE: JOE) reported its second quarter and first half 2024 results, highlighting mixed financial performance. Hospitality revenue surged 38% to $62.3 million, while leasing revenue grew 19% to $14.8 million. However, real estate revenue dropped 51% to $34.5 million, leading to a 13% decline in total revenue to $111.6 million. Net income for Q2 decreased to $24.5 million from $34.7 million in 2023.
For the first half of 2024, total revenue slightly decreased by 1% to $199.4 million. The company increased its quarterly dividend by 17% to $0.14 per share, effective in Q3. Despite revenue declines, the company emphasized growth in its hospitality and leasing sectors and continued development of over 22,500 homesites. EBITDA for Q2 fell to $49.2 million, an 18% drop from $59.7 million in 2023.
La St. Joe Company (NYSE: JOE) ha riportato i risultati del secondo trimestre e del primo semestre del 2024, evidenziando una performance finanziaria mista. I ricavi dell'ospitalità sono aumentati del 38% raggiungendo i 62,3 milioni di dollari, mentre i ricavi da locazione sono cresciuti del 19% a 14,8 milioni di dollari. Tuttavia, i ricavi immobiliari sono scesi del 51% a 34,5 milioni di dollari, portando a un declino complessivo del fatturato totale del 13%, a 111,6 milioni di dollari. L'utile netto per il Q2 è diminuito a 24,5 milioni di dollari rispetto ai 34,7 milioni di dollari del 2023.
Per il primo semestre del 2024, il fatturato totale è diminuito leggermente dell'1% a 199,4 milioni di dollari. L'azienda ha aumentato il suo dividendo trimestrale del 17% a 0,14 dollari per azione, con efficacia nel Q3. Nonostante i cali dei ricavi, l'azienda ha enfatizzato la crescita nei settori dell'ospitalità e della locazione e ha continuato lo sviluppo di oltre 22.500 lotti abitativi. L'EBITDA per il Q2 è sceso a 49,2 milioni di dollari, un calo del 18% rispetto ai 59,7 milioni di dollari del 2023.
La St. Joe Company (NYSE: JOE) reportó sus resultados del segundo trimestre y del primer semestre de 2024, destacando un rendimiento financiero mixto. Los ingresos de hospitalidad aumentaron un 38% alcanzando los 62,3 millones de dólares, mientras que los ingresos por arrendamiento crecieron un 19% a 14,8 millones de dólares. Sin embargo, los ingresos por bienes raíces cayeron un 51% a 34,5 millones de dólares, lo que llevó a una disminución del 13% en los ingresos totales a 111,6 millones de dólares. Las ganancias netas del Q2 disminuyeron a 24,5 millones de dólares de 34,7 millones de dólares en 2023.
En el primer semestre de 2024, los ingresos totales disminuyeron ligeramente un 1% a 199,4 millones de dólares. La empresa incrementó su dividendo trimestral en un 17% a 0,14 dólares por acción, efectivo en el Q3. A pesar de la caída en los ingresos, la empresa enfatizó el crecimiento en sus sectores de hospitalidad y arrendamiento y continuó el desarrollo de más de 22,500 sitios habitacionales. El EBITDA para el Q2 cayó a 49,2 millones de dólares, una caída del 18% de los 59,7 millones de dólares en 2023.
세인트 조 회사(St. Joe Company, NYSE: JOE)는 2024년 2분기 및 상반기 결과를 발표하며 혼합된 재무 성과를 강조했습니다. 숙박 산업 수익은 38% 증가하여 6230만 달러에 도달했으며, 임대 수익은 19% 증가하여 1480만 달러에 도달했습니다. 그러나 부동산 수익은 51% 감소하여 3450만 달러로 떨어졌으며, 이로 인해 총 수익이 13% 감소하여 1억 1160만 달러에 이르렀습니다. 2분기 순이익은 2023년 3470만 달러에서 2450만 달러로 감소했습니다.
2024년 상반기 동안 총 수익은 1% 감소하여 1억 9940만 달러가 되었습니다. 이 회사는 분기 배당금을 17% 인상하여 주당 0.14달러로 조정하였으며, 이는 3분기부터 시행됩니다. 수익 감소에도 불구하고, 회사는 숙박 및 임대 부문의 성장을 강조하고 22,500개 이상의 주택 부지를 지속적으로 개발했습니다. 2분기 EBITDA는 4970만 달러로, 2023년의 5970만 달러에서 18% 감소했습니다.
La St. Joe Company (NYSE: JOE) a annoncé ses résultats du deuxième trimestre et du premier semestre 2024, mettant en avant une performance financière mixte. Les revenus de l'hôtellerie ont grimpé de 38 % pour atteindre 62,3 millions de dollars, tandis que les revenus de location ont augmenté de 19 % pour atteindre 14,8 millions de dollars. Cependant, les revenus immobiliers ont chuté de 51 % à 34,5 millions de dollars, entraînant une diminution de 13 % des revenus totaux, qui s'élèvent à 111,6 millions de dollars. Le bénéfice net pour le deuxième trimestre a diminué à 24,5 millions de dollars, contre 34,7 millions de dollars en 2023.
Pour le premier semestre 2024, les revenus totaux ont légèrement diminué de 1 % pour atteindre 199,4 millions de dollars. L'entreprise a augmenté son dividende trimestriel de 17 % à 0,14 dollar par action, effectif au troisième trimestre. Malgré la baisse des revenus, l'entreprise a souligné la croissance de ses secteurs de l'hôtellerie et de la location et a poursuivi le développement de plus de 22 500 terrains résidentiels. L'EBITDA pour le deuxième trimestre a chuté à 49,2 millions de dollars, soit une baisse de 18 % par rapport à 59,7 millions de dollars en 2023.
Die St. Joe Company (NYSE: JOE) berichtete über die Ergebnisse des zweiten Quartals und der ersten Hälfte des Jahres 2024 und hob eine gemischte finanzielle Leistung hervor. Die Umsätze im Gastgewerbe stiegen um 38 % auf 62,3 Millionen Dollar, während die Einnahmen aus Vermietung um 19 % auf 14,8 Millionen Dollar wuchsen. Allerdings sanken die Immobilienumsätze um 51 % auf 34,5 Millionen Dollar, was zu einem Rückgang der Gesamtumsätze um 13 % auf 111,6 Millionen Dollar führte. Der Nettoertrag für das 2. Quartal fiel auf 24,5 Millionen Dollar, verglichen mit 34,7 Millionen Dollar im Jahr 2023.
Für die erste Hälfte des Jahres 2024 sanken die Gesamteinnahmen leicht um 1 % auf 199,4 Millionen Dollar. Das Unternehmen erhöhte seine Quartalsdividende um 17 % auf 0,14 Dollar pro Aktie, wirksam im 3. Quartal. Trotz des Rückgangs der Einnahmen betonte das Unternehmen das Wachstum in den Bereichen Gastgewerbe und Vermietung und setzte die Entwicklung von über 22.500 Wohnbaugrundstücken fort. Das EBITDA für das 2. Quartal fiel auf 49,2 Millionen Dollar, ein Rückgang von 18 % gegenüber 59,7 Millionen Dollar im Jahr 2023.
- Hospitality revenue increased by 38% to $62.3 million.
- Leasing revenue grew 19% to $14.8 million.
- Quarterly dividend increased by 17% to $0.14 per share.
- Real estate revenue decreased by 51% to $34.5 million.
- Total revenue for Q2 decreased by 13% to $111.6 million.
- Net income for Q2 dropped by 29% to $24.5 million.
- EBITDA for Q2 decreased by 18% to $49.2 million.
Insights
The St. Joe Company's Q2 2024 results present a mixed picture, with some positive developments offset by declines in certain areas. Here are the key takeaways:
- Hospitality revenue saw impressive growth, increasing 38% to a record
$62.3 million . This was driven by the addition of new hotels and growth in the Watersound Club membership program. - Leasing revenue also showed solid growth, up
19% to$14.8 million , reflecting the company's expanding commercial real estate portfolio. - However, real estate revenue declined significantly, down
51% to$34.5 million . This was primarily due to fewer homesite sales and reduced commercial transactions. - Overall revenue for Q2 2024 decreased
13% to$111.6 million , while net income attributable to the company fell29% to$24.5 million .
The company's strategy of focusing on recurring revenue streams appears to be paying off in the hospitality and leasing segments. However, the volatility in real estate revenue highlights the cyclical nature of this business. The increase in quarterly dividend by
Looking ahead, investors should monitor the company's ability to continue growing its hospitality and leasing segments while managing the fluctuations in real estate revenue. The robust pipeline of over 22,500 homesites in various stages of development could provide significant future revenue, but timing and market conditions will be important factors.
The St. Joe Company's Q2 2024 results reveal some interesting trends in the real estate market, particularly in Florida's Northwest region:
- The decrease in homesite sales (186 in Q2 2024 vs 300 in Q2 2023) and the lower average base price (
$140,000 vs$153,000 ) could indicate a cooling in the residential real estate market. However, it's important to note that this may be more due to product mix and development timing rather than a fundamental market shift. - The Latitude Margaritaville Watersound project continues to show strong demand, with 135 net sale contracts in Q2 and a total of 1,878 home contracts since 2021. The average sales price here has increased to
$567,000 , up from$501,000 a year ago, suggesting robust demand for this type of community. - The company's focus on developing a pipeline of over 22,500 homesites across 20 different communities demonstrates a long-term commitment to the region's growth potential.
The decrease in real estate revenue is concerning, but it's important to understand the cyclical nature of real estate development. The 'seeding and harvesting' cycle mentioned by the CEO is a common phenomenon in large-scale development projects.
The continued net migration to the region, as highlighted by the CEO, is a positive long-term driver for housing demand. This trend, if sustained, could provide a solid foundation for future growth in the company's real estate operations.
Investors should keep an eye on future homesite completions and sales trends to gauge whether this quarter's decrease is indeed just a timing issue or the beginning of a longer-term slowdown in the local real estate market.
The St. Joe Company's Q2 2024 results showcase a remarkable performance in the hospitality sector, which deserves a closer look:
- Hospitality revenue surged by an impressive
38% to reach$62.3 million , setting a new quarterly record for the company. This growth is particularly noteworthy in the current economic climate. - The gross margin for hospitality operations improved significantly, rising to
39.2% from26.2% in the same quarter last year. This indicates not just revenue growth, but also improved operational efficiency. - The company's Watersound Club membership program grew to 3,571 members, an increase of 718 net new members year-over-year. This membership growth is a key driver of recurring revenue in the hospitality segment.
- The expansion of the company's hotel portfolio, now at 12 hotels with 1,298 operational rooms (up from 11 hotels and 1,177 rooms a year ago), has clearly contributed to the revenue growth.
These results suggest that St. Joe's strategy of investing in hospitality assets is paying off. The company appears to be capitalizing on the strong tourism demand in Northwest Florida, as well as potentially benefiting from broader trends such as the rise in domestic travel and 'workcations'.
The improved gross margin is particularly encouraging, as it indicates that the company is not just growing revenue, but also becoming more efficient in its operations. This could be due to economies of scale, improved management practices, or a combination of factors.
Looking ahead, the continued growth of the Watersound Club membership program could provide a stable base of recurring revenue, helping to smooth out some of the cyclicality inherent in the hospitality industry. However, investors should also be aware of potential risks, such as economic downturns or changes in travel patterns, which could impact the hospitality sector more broadly.
-
Hospitality revenue increased substantially above the prior Company quarterly record achieved in the third quarter of 2023. Hospitality gross margin increased to
39.2% in the second quarter of 2024 as compared to26.2% in the second quarter of 2023. -
Hospitality revenue increased by
38% , leasing revenue increased by19% , while real estate revenue decreased by51% as compared to the second quarter 2023. Overall revenue in the quarter was$111.6 million $128.1 million -
For the first six-months of 2024, total revenue decreased by
1% to$199.4 million $38.4 million $45.1 million - Over 22,500 homesites are in various stages of planning or development.
-
Third quarter dividend increasing
17% to$0.14 $0.12
Jorge Gonzalez, the Company’s President and Chief Executive Officer, said, “We continued to focus our efforts on creating long-term shareholder value through investments in our business with an emphasis on recurring revenue streams while distributing excess cash by increasing the upcoming cash dividend by
Mr. Gonzalez continued, “Despite the continued growth in hospitality and leasing revenues, overall revenue decreased as a result of an extraordinarily high number of homesites that were completed and sold in the second quarter of 2023, fueled by the completion and sale of a new phase of 133 homesites in the Watersound Origins community in June 2023. The Company sold 186 homesites in the second quarter of 2024, as compared to 300 homesites for the same period in 2023. As we often say, the ‘seeding and harvesting’ cycle of residential homesite development and sales is not linear and therefore not ideal for quarter-to-quarter comparisons. Total revenue in the second quarter of 2024 exceeded all quarters in 2023 except for the second quarter. Overall, there were 349 homesites and homes sold in the second quarter of 2024. This includes 186 homesites in ten different residential communities and 163 homes in the Latitude Margaritaville Watersound unconsolidated joint venture. All builders performed on their contractual obligations and no builder requested a delay in closings. The Company’s residential homesite pipeline has over 22,500 homesites in twenty different communities at various stages of planning or development.”
Mr. Gonzalez concluded, “This quarter demonstrates what we have been saying all along, which is that housing demand in our region is solid and our quarter-to-quarter homesite sales and margin results depend more on the timing of completion of development and product mix. The biggest driver of housing demand in our region is the net migration that is continuing from a wider range of geographies where individuals and families are looking for a high quality of life, safety, security, natural beauty, and great schools.”
Consolidated Second Quarter and First Half 2024 Results
Total consolidated revenue for the second quarter of 2024 decreased by
For the six months ended June 30, 2024, total consolidated revenue decreased by
Over the past several years, the Company has entered into joint ventures which are unconsolidated and accounted for using the equity method. For the three months ended June 30, 2024, these unconsolidated joint ventures had
Net income attributable to the Company for the second quarter of 2024 decreased by
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP financial measure, for the three months ended June 30, 2024, decreased by
On July 24, 2024, the Board of Directors declared a cash dividend of
Real Estate
Total real estate revenue decreased by
The Company sold 186 homesites at an average base price of approximately
As of June 30, 2024, the Company had 1,303 residential homesites under contract, which are expected to result in revenue of approximately
The Latitude Margaritaville Watersound unconsolidated joint venture, planned for 3,500 residential homes, had 135 net sale contracts executed in the second quarter of 2024. Since the start of sales in 2021, there have been 1,878 home contracts. For the second quarter of 2024, there were 163 completed home sales bringing the community to 1,344 occupied homes. The 534 homes under contract as of June 30, 2024, with an average sales price of approximately
Hospitality
Hospitality revenue increased by
Leasing
Leasing revenue from commercial, office, retail, multi-family, senior living, self-storage and other properties increased by
Leasable space as of June 30, 2024, consisted of approximately 1,100,000 square feet, of which approximately 1,058,000, or
Corporate and Other Operating Expenses
The Company’s corporate and other operating expenses for the three months ended June 30, 2024, increased by
Investments, Liquidity and Debt
In the second quarter of 2024, the Company funded
Additional Information and Where to Find It
Additional information with respect to the Company’s results for the second quarter and first half of 2024 will be available in a Form 10-Q that will be filed with the Securities and Exchange Commission (“SEC”) and can be found at www.joe.com and at the SEC’s website www.sec.gov. We recommend studying the Company’s latest Form 10-K and Form 10-Q before making an investment decision.
FINANCIAL DATA SCHEDULES
Financial data schedules in this press release include consolidated results, summary balance sheets, corporate and other operating expenses and the reconciliation of earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP financial measure, for the second quarter and first half of 2024 and 2023, respectively.
FINANCIAL DATA |
||||
Consolidated Results (Unaudited) |
||||
($ in millions except share and per share amounts) |
||||
|
|
|
|
|
|
Quarter Ended June 30, |
Six Months Ended June 30, |
||
|
2024 |
2023 |
2024 |
2023 |
Revenue |
|
|
|
|
Real estate revenue |
|
|
|
|
Hospitality revenue |
62.3 |
45.1 |
101.6 |
69.6 |
Leasing revenue |
14.8 |
12.4 |
29.1 |
24.2 |
Total revenue |
111.6 |
128.1 |
199.4 |
201.1 |
Expenses |
|
|
|
|
Cost of real estate revenue |
16.6 |
31.5 |
32.7 |
51.8 |
Cost of hospitality revenue |
37.9 |
33.3 |
68.2 |
56.2 |
Cost of leasing revenue |
7.3 |
6.5 |
14.5 |
11.9 |
Corporate and other operating expenses |
5.9 |
5.5 |
12.9 |
11.3 |
Depreciation, depletion and amortization |
11.3 |
9.5 |
22.5 |
16.8 |
Total expenses |
79.0 |
86.3 |
150.8 |
148.0 |
Operating income |
32.6 |
41.8 |
48.6 |
53.1 |
Investment income, net |
3.4 |
3.2 |
6.8 |
6.1 |
Interest expense |
(8.5) |
(7.2) |
(17.1) |
(13.4) |
Equity in income from unconsolidated joint ventures |
5.4 |
6.0 |
12.8 |
9.7 |
Other (expense) income, net |
(0.1) |
1.5 |
(0.5) |
2.7 |
Income before income taxes |
32.8 |
45.3 |
50.6 |
58.2 |
Income tax expense |
(8.3) |
(11.5) |
(13.0) |
(14.9) |
Net income |
24.5 |
33.8 |
37.6 |
43.3 |
Net (income) loss attributable to non-controlling interest |
-- |
0.9 |
0.8 |
1.8 |
Net income attributable to the Company |
|
|
|
|
Basic net income per share attributable to the Company |
|
|
|
|
Basic weighted average shares outstanding |
58,331,818 |
58,314,117 |
58,326,153 |
58,311,619 |
Summary Balance Sheet (Unaudited) |
||
($ in millions) |
||
|
|
|
|
June 30, 2024 |
December 31, 2023 |
Assets |
|
|
Investment in real estate, net |
|
|
Investment in unconsolidated joint ventures |
71.4 |
66.4 |
Cash and cash equivalents |
86.7 |
86.1 |
Other assets |
90.3 |
82.2 |
Property and equipment, net |
62.4 |
66.0 |
Investments held by special purpose entities |
203.8 |
204.2 |
Total assets |
|
|
|
|
|
Liabilities and Equity |
|
|
Debt, net |
|
|
Accounts payable and other liabilities |
65.3 |
58.6 |
Deferred revenue |
64.1 |
62.8 |
Deferred tax liabilities, net |
72.9 |
71.8 |
Senior Notes held by special purpose entity |
178.3 |
178.2 |
Total liabilities |
828.0 |
825.0 |
Total equity |
722.4 |
698.5 |
Total liabilities and equity |
|
|
Corporate and Other Operating Expenses (Unaudited) |
||||
($ in millions) |
||||
|
|
|
|
|
|
Quarter Ended June 30, |
Six Months Ended June 30, |
||
|
2024 |
2023 |
2024 |
2023 |
Employee costs |
|
|
|
|
Property taxes and insurance |
1.2 |
1.3 |
2.7 |
2.7 |
Professional fees |
0.6 |
0.7 |
1.7 |
1.7 |
Marketing and owner association costs |
0.4 |
0.2 |
0.5 |
0.4 |
Occupancy, repairs and maintenance |
0.1 |
0.1 |
0.3 |
0.3 |
Other miscellaneous |
0.5 |
0.5 |
0.9 |
0.8 |
Total corporate and other operating expenses |
|
|
|
|
Reconciliation of Non-GAAP Financial Measures (Unaudited)
($ in millions)
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is a non-GAAP financial measure, which management believes assists investors by providing insight into operating performance of the Company across periods on a consistent basis and, when viewed in combination with the Company results prepared in accordance with GAAP, provides a more complete understanding of factors and trends affecting the Company. However, EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP. EBITDA is calculated by adjusting “Interest expense”, “Investment income, net”, “Income tax expense”, “Depreciation, depletion and amortization” to “Net income attributable to the Company”.
|
Quarter Ended |
Six Months Ended |
||
|
June 30, |
June 30, |
||
|
2024 |
2023 |
2024 |
2023 |
Net income attributable to the Company |
|
|
|
|
Plus: Interest expense |
8.5 |
7.2 |
17.1 |
13.4 |
Less: Investment income, net |
(3.4) |
(3.2) |
(6.8) |
(6.1) |
Plus: Income tax expense |
8.3 |
11.5 |
13.0 |
14.9 |
Plus: Depreciation, depletion and amortization |
11.3 |
9.5 |
22.5 |
16.8 |
EBITDA |
|
|
|
|
Important Notice Regarding Forward-Looking Statements
Certain statements contained in this press release, as well as other information provided from time to time by the Company or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “guidance,” “anticipate,” “estimate,” “expect,” “forecast,” “project,” “plan,” “intend,” “believe,” “confident,” “may,” “should,” “can have,” “likely,” “future” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Examples of forward-looking statements in this press release include statements regarding our growth prospects; expansion of operational assets such as increases in hotel rooms; plans to maintain an efficient cost structure; our capital allocation initiatives, including the payment of our quarterly dividend; plans regarding our joint venture developments; and the timing of current developments and new projects in 2024 and beyond. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements.
The Company wishes to caution readers that, although we believe any forward-looking statements are based on reasonable assumptions, certain important factors may have affected and could in the future affect the Company’s actual financial results and could cause the Company’s actual financial results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company, including: our ability to successfully implement our strategic objectives; new or increased competition across our business units; any decline in general economic conditions, particularly in our primary markets; interest rate fluctuations; inflation; financial institution disruptions; supply chain disruptions; geopolitical conflicts (such as the conflict between
Any forward-looking statement made by us in this press release speaks only as of the date on which it is made, and we do not undertake to update these statements other than as required by law.
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
© 2024, The St. Joe Company. “St. Joe®”, “JOE®”, the “Taking Flight” Design®, “St. Joe (and Taking Flight Design)®”, and other amenity names used herein are the registered service marks of The St. Joe Company or its affiliates or others.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724555842/en/
St. Joe Investor Relations Contact:
Marek Bakun
Chief Financial Officer
1-866-417-7132
Marek.Bakun@Joe.Com
Source: The St. Joe Company
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