St. Joe reports 26% net income rise in Q1

Published 23/04/2025, 21:46
St. Joe reports 26% net income rise in Q1

PANAMA CITY BEACH, Fla. - The St. Joe Company (NYSE:JOE), a Florida-based real estate developer and operator with a market capitalization of $2.4 billion, announced an increase in net income and revenue for the first quarter of 2025. Net income attributable to the company rose by 26% to $17.5 million compared to the first quarter of the previous year. This growth was bolstered by a 7% increase in quarterly revenue, reaching a record $94.2 million for a first quarter, excluding an exceptional timberland sale in 2014. According to InvestingPro analysis, the company’s stock is currently trading near its Fair Value, with a P/E ratio of 33x reflecting investor confidence in its growth prospects.

Real estate revenue climbed by 12% to $38.3 million, with homesite closings volume up by 15%. Leasing revenue marked a 14% increase, setting a new quarterly record at $16.3 million. The company’s capital expenditures for the quarter amounted to $32.7 million, alongside $8.2 million in cash dividends, $5.7 million in common stock repurchases, and a net debt repayment of $2.5 million. InvestingPro data shows the company maintains a healthy financial position with a current ratio of 1.63 and operates with a moderate debt level, having raised its dividend for five consecutive years.

The company’s cash and cash equivalents also saw an upturn, reaching $94.5 million as of March 31, 2025. St. Joe’s President and CEO, Jorge Gonzalez, cited solid organic growth despite macro-economic challenges in some areas of the country. He highlighted the growth in recurring revenue, particularly from leasing and hospitality, which accounted for 59% of the total revenue for the quarter.

The unconsolidated Latitude Margaritaville Watersound joint venture transacted a record 192 homes in the first quarter, contributing to the company’s financial returns. Additionally, St. Joe announced the establishment of Watersound Real Estate, a real estate brokerage expected to complement existing businesses such as Watersound Insurance Agency and Watersound Title Agency.

Furthermore, Florida State University plans to invest $414 million in a new teaching and research hospital on the company’s medical campus in Panama City Beach, anticipated to significantly impact regional healthcare and job creation. Additionally, the Northwest Florida Beaches International Airport announced the first direct flight to New York City, reflecting the region’s growing air travel demand. Despite recent market volatility causing a 26% decline in share price over the past six months, InvestingPro analysts remain optimistic, forecasting continued sales growth for the current year. Subscribers can access 5 additional ProTips and comprehensive financial metrics for deeper analysis.

St. Joe’s Board of Directors declared a cash dividend of $0.14 per share on the company’s common stock, payable on June 26, 2025, to shareholders of record as of June 10, 2025.

This financial overview is based on a press release statement issued by The St. Joe Company.

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