The St. Joe Co (JOE, Financial) released its 8-K filing on July 24, 2024, detailing its financial performance for the second quarter and first half of 2024. The St. Joe Co is a real estate development, asset management, and operating company with three operating segments: Residential, Hospitality, and Commercial.
Performance Overview
For the second quarter of 2024, The St. Joe Co reported a total consolidated revenue of $111.6 million, a 13% decrease from $128.1 million in the same period of 2023. The decline was primarily driven by a significant drop in real estate revenue, which fell by 51% to $34.5 million. This was partially offset by a 38% increase in hospitality revenue to $62.3 million and a 19% rise in leasing revenue to $14.8 million.
Net income attributable to the company for the second quarter of 2024 decreased by 29% to $24.5 million, or $0.42 per share, compared to $34.7 million, or $0.60 per share, in the same period of 2023. For the first half of 2024, net income decreased by 15% to $38.4 million, or $0.66 per share, from $45.1 million, or $0.77 per share, in the first half of 2023.
Key Financial Achievements
Despite the overall revenue decline, The St. Joe Co achieved record hospitality revenue for a single quarter, driven by the opening of five new hotels in 2023 and growth in the Watersound Club membership program. Hospitality gross margin also increased substantially, reflecting higher revenues and improved operating efficiency.
“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 17% to $0.14 per share,” said Jorge Gonzalez, President and CEO.
Income Statement Highlights
| Quarter Ended June 30 | 2024 | 2023 |
|---|---|---|
| Real estate revenue | $34.5 million | $70.6 million |
| Hospitality revenue | $62.3 million | $45.1 million |
| Leasing revenue | $14.8 million | $12.4 million |
| Total revenue | $111.6 million | $128.1 million |
| Net income attributable to the Company | $24.5 million | $34.7 million |
| Basic net income per share | $0.42 | $0.60 |
Balance Sheet and Cash Flow
As of June 30, 2024, The St. Joe Co had $86.7 million in cash and cash equivalents, compared to $88.6 million as of June 30, 2023. The company funded $32.4 million in capital expenditures during the second quarter of 2024 and paid $7.0 million in cash dividends. The company’s debt stood at $447.4 million, with a weighted average effective interest rate of 5.3% and an average remaining life of 16.9 years.
Analysis and Outlook
The St. Joe Co's performance in the second quarter of 2024 highlights the cyclical nature of its residential segment, which saw a significant decrease in homesite sales compared to the same period in 2023. However, the company's strategic focus on expanding its hospitality and leasing segments has yielded positive results, with substantial revenue growth in both areas.
The increase in the quarterly dividend by 17% to $0.14 per share reflects the company's commitment to returning value to shareholders. The continued growth in hospitality and leasing revenues, coupled with a robust pipeline of residential homesites, positions The St. Joe Co well for future growth, despite the challenges in the real estate market.
For more detailed financial information, readers are encouraged to review the company's 8-K filing.
Explore the complete 8-K earnings release (here) from The St. Joe Co for further details.
