Webcast Participant's questions to St Joe Co (JOE) leadership • Q2 2025
Question
A Webcast Participant asked about a range of topics including the drivers for the 482 newly contracted homesites, potential bottlenecks like interest rates, and the strategy for the Pigeon Creek development, specifically whether it could be sold to a single large builder. Questions also covered capital allocation, the reasons for a slight dip in club memberships despite revenue growth, the timeline for major projects like the FSU Health hospital and the West Bay Bridge, and the earnings potential of new ventures like the Watersound Real Estate brokerage.
Answer
President, CEO & Chairman Jorge Gonzalez explained that the pickup in homesite contracts was broad-based across all active communities, with the primary headwind being national mortgage rates. He confirmed active discussions with a single large builder interested in the entire Pigeon Creek DSAP to accelerate development. Regarding club metrics, Gonzalez attributed the slight membership dip to a significant, planned increase in entry fees and dues, which in turn drove higher club revenue. He noted that capital allocation remains dynamic, with a focus on shareholder value, and highlighted that the FSU hospital project is awaiting the finalization of an operator agreement before moving forward quickly.