8-K: St. Joe Company Announces Record-Setting Performance in 2023 with Growth Across All Segments

The St. Joe Company reported record-setting performance in 2023, with growth across its residential, hospitality, and commercial segments.

Summary

• The St. Joe Company achieved record performance in 2023 across all its business segments.
• The company saw record activity in residential, hospitality, and commercial sectors.
• Northwest Florida Beaches International Airport served a record 1,660,479 passengers in 2023, highlighting the region's growth.
• St. Joe completed 1,704 sales of homes and homesites, including 1,063 residential homesites and 641 homes in the Latitude Margaritaville Watersound joint venture.
• 1,177 new homes were sold in St. Joe's residential communities in Bay and Walton Counties.
• Watersound Club membership grew by a record 713 members, reaching a total of 3,317.
• The company opened five new hotels in 2023, adding 646 rooms to its portfolio.
• St. Joe's hotel portfolio includes 11 hotels with 1,177 rooms, with an additional 121-room hotel planned for 2024, bringing the total to 1,298 rooms.
• St. Joe executed 44 new commercial leases, the most in its history.
• The company's commercial portfolio includes 1,028,831 square feet under lease, with approximately 95% occupancy.
• An additional 98,036 square feet of commercial space is under construction.
• The company broke ground on the 87-acre FSU/TMH Medical Campus, including a 79,000 square foot medical office building planned to open in 2024.

Sentiment

Score: 9

Explanation: The document conveys a very positive sentiment due to record-setting performance across all segments, strong growth metrics, and expansion plans. The company is clearly performing well and has a positive outlook.

Positives

• The company experienced record growth in residential sales, with 1,704 homes and homesites sold.
• The Watersound Club saw a record increase of 713 members, indicating strong demand for its amenities.
• The opening of five new hotels in 2023 significantly expanded the company's hospitality portfolio.
• The company achieved record commercial leasing activity with 44 new leases.
• The high occupancy rate of 95% in the commercial portfolio demonstrates strong demand for St. Joe's commercial properties.
• The development of the FSU/TMH Medical Campus positions the company for future growth in the healthcare sector.

Risks

• The press release contains forward-looking statements that are subject to risks and uncertainties.
• The company's ability to complete planned projects, such as the new hotel, golf course, and medical campus, is not guaranteed.
• The company's performance is dependent on continued migration and visitation to Northwest Florida.

Future Outlook

The company plans to open a 121-room hotel, an additional golf course at Watersound Club, and continue development of the FSU Health medical campus. The company expects to release its fourth quarter and full year 2023 results on February 21, 2024.

Management Comments

• Jorge Gonzalez, President and CEO of St. Joe, stated that the company continues to benefit from the growing migration and visitation to Northwest Florida.
• Jorge Gonzalez also mentioned that the company is well-positioned to capitalize on that growth with its diverse offerings across its segments.

Industry Context

The announcement reflects a strong trend of growth in the Northwest Florida real estate and tourism market, with increased airport traffic and demand for residential and hospitality offerings. This is consistent with the broader trend of migration to the Sun Belt region.

Comparison to Industry Standards

• The St. Joe Company's record residential sales of 1,704 units in 2023 is a strong performance compared to other real estate developers in the region, such as those in the Orlando and Tampa markets, which have seen similar growth but not necessarily at the same rate.
• The 95% occupancy rate in the commercial portfolio is above the national average for commercial real estate, which typically fluctuates between 90-93%, indicating strong demand for St. Joe's properties.
• The growth in Watersound Club membership is comparable to other high-end resort communities in Florida, such as those in Naples and Palm Beach, which also focus on exclusive amenities and lifestyle offerings.
• The addition of 646 hotel rooms in 2023 is a significant expansion, placing St. Joe as a major player in the Northwest Florida hospitality market, competing with established hotel chains and resorts in the area.

Stakeholder Impact

• Shareholders are likely to view the record performance positively.
• Employees may benefit from the company's growth and expansion.
• Customers will have more options for residential, hospitality, and commercial services.
• Suppliers and contractors may see increased business opportunities.
• Creditors may view the company as a lower risk due to its strong performance.

Next Steps

• The company plans to open a 121-room hotel in 2024.
• The company plans to add a third golf course to the Watersound Club.
• The company plans to open a 79,000 square foot medical office building at the FSU/TMH Medical Campus in 2024.
• The company will release its fourth quarter and full year 2023 results on February 21, 2024.

Key Dates

Keywords

Real Estate Development, Residential Sales, Hospitality, Commercial Leasing, Watersound Club, Hotel Development, Medical Campus, Northwest Florida