View:
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) June 16, 2004
------------------------------
The St. Joe Company
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Florida
-------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation)
1-10466 59-0432511
- --------------------------------------------------------------------------------
(Commission File Number) (IRS Employer Identification No.)
245 Riverside Avenue, Suite 500, Jacksonville, FL 32202
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(904) 301-4200
-------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
N/A
-------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
ITEM 9. REGULATION FD DISCLOSURE
-----------------------
The purpose of this Form 8-K is to furnish a press release dated
June 16, 2004. A copy of the press release is furnished with this
Form 8-K as Exhibit 99.1 and is incorporated by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE ST. JOE COMPANY
Dated: June 16, 2004 By: /s/ Michael N. Regan
Name: Michael N. Regan
Title: Senior Vice President
Exhibit 99.1
The St. Joe Company Updates Its Land Analysis; Company Continues
Efforts to Move Its Land Holdings to ``Higher and Better Uses''
JACKSONVILLE, Fla.--(BUSINESS WIRE)--June 16, 2004--The St. Joe
Company (NYSE:JOE) today announced that it has updated its analysis of
its land holdings, which is an integral part of the company's efforts
to move its land to "higher and better uses." This update is the
result of a company-wide effort to identify land with development
potential and to classify the land in accordance with the company's
current view of its potential highest and best use.
JOE is Florida's largest private landowner. As of March 31, 2004,
JOE owned approximately 830,000 acres, concentrated primarily in
Northwest Florida. These holdings included approximately 355,000 acres
within 10 miles of the coast of the Gulf of Mexico.
"This land analysis represents an important part of our value
creation process," said Peter S. Rummell, chairman and CEO of JOE.
"Only through an increasingly detailed understanding of our land are
we able to develop strategies to move it to a higher and better use
over time."
"When this management team arrived at JOE in 1997, we were
entrusted with more than 1,000,000 acres then being used primarily as
timberland," said Rummell. "We have demonstrated our capability to
identify higher and better uses and to make these uses a reality. Of
the lands held in 1997, we have sold, developed or identified a
potential higher and better use for approximately 800,000 acres, or
about 80 percent."
"In this most recent analysis, we were able to identify tens of
thousands of acres of what was once considered timberland as suitable
to support a wide range of residential, commercial, recreational and
conservation uses," said Rummell. "We will continue to work to
identify improved uses for a substantial portion of our remaining
timberland acres."
The following table sets forth the company's internal land
assignments as of March 31, 2004:
- -0-
*T
JOE Land Holdings(a)
March 31, 2004
(acres in thousands)
Percentage
Approximate of JOE
Land Use Classifications Acreage Holdings
Towns, Resorts, Commercial and RiverCamps
Towns and Resorts 77
Commercial(b) 19
RiverCamps 18
Mitigation Land to Support Development 28
-----------
Subtotal 143 17%
St. Joe Land Preserves, Ranches, Farmsteads
and Home Sites
Preserves 3
Ranches 45
Farmsteads 17
Home Sites 14
-----------
Subtotal 80 10%
St. Joe Land Acreage
Conservation and Woodlands 403
-----------
Subtotal 403 49%
Other Uses
Timber 199
Civic Infrastructure 6
-----------
Subtotal 205 25%
----------- -----------
Total 830 100%
=========== ===========
(a) Excludes residential lands in North and South Carolina. Also
excludes acres from building investment portfolio and Southeast
commercial land acquired since 1998. Subtotals and totals do not
foot due to rounding.
(b) Includes commercial, retail, light industrial and multi-family.
*T
JOE's timberland division will continue to manage virtually all of
the company's land holdings as timberland until commencement of
development. JOE uses sophisticated silviculture management practices
and harvests a significant amount of wood products from its holdings
each year.
The Land Analysis Process is a Journey
"JOE's internal land analysis is a dynamic, time consuming and
complex process with input from and coordination among all of our
business units," said Rummell. "At any point in time, it is a
reflection of our best judgments - and we expect it to continue to
evolve. However, it is important to note that we may not always be
able to realize our identified best use for particular parcels,
especially if appropriate governmental approvals are not obtained."
"In addition, the timing and sequence of development may alter our
classifications. As we move from land classification to planning and
development, additional data is gathered that may affect the ultimate
uses of specific parcels, the number of net saleable or developable
acres, or the density of development," said Rummell. "What we achieve
going forward may differ from our experience to date."
"As more is learned about a particular parcel, it may move from
one classification to another, or it may be subdivided into several
classifications," said Kevin M. Twomey, president, COO and CFO of JOE.
"A particular parcel currently having a single land class designation
may ultimately contain mixed-uses. Our capability to plan with an
increasing level of detail is a key element of JOE's place-making
strategy."
"Our evolving land analysis has also enabled us to identify land
suitable for several new product lines that could add value and
diversity," said Twomey. "These new untested products are still in the
process of coming to the market."
"Our internal land analysis and the search for additional new
product lines will continue," said Rummell. "As we develop a deeper
understanding of our land holdings and evolving market opportunities,
we intend to continue to focus our rigorous process on creating
shareholder value while at the same time protecting Northwest
Florida's unique character and quality of life."
Land Classification Categories
Towns, Resorts, Commercial and RiverCamps
Towns and Resorts
JOE creates special places by transforming land suitable for
primary, secondary and resort residential uses. As of March 31, 2004,
JOE had identified approximately 77,000 acres in this classification.
The company's current pipeline of residential projects extends well
into the future. More than 27,000 units are currently entitled or at
various stages in the entitlement process on more than 33,000 acres.
Commercial
"JOE's team continues to refine the way land is identified,
positioned and developed for commercial purposes, which include
retail, light industrial and multi-family uses," said Twomey. "We see
growing interest in commercial land throughout Northwest Florida." As
of March 31, 2004, approximately 19,000 acres were classified for
commercial uses, including several thousand acres for light industrial
use near the site of the proposed relocated airport in Bay County.
"The broad range of development activity in Northwest Florida is
stimulating more commercial demand," said Twomey. "Rooftops bring
commercial activity. As more and more commercial users gain an
appreciation of the unique qualities of Northwest Florida, and as the
demographics of the visitor base continue to evolve, opportunities are
becoming realities."
RiverCamps
RiverCamps are a series of planned settlements in rustic settings,
offering personal retreats in private woodland preserves. As of
March 31, 2004, approximately 18,000 acres have been classified for
RiverCamps use. RiverCamps home sites are sold fee-simple, with a
common area preserved for conservation. At JOE's first RiverCamps
location, many home sites are almost one acre. Home sites could be
larger at future locations.
"RiverCamps began as a new concept and product - an experiment. We
are delighted with the early reception and success of RiverCamps at
Crooked Creek," said Rummell. "The initial concept has evolved to a
much higher use than we originally expected. As a result, we have
broadened our range of products. The 40,000 acres once expected to
become RiverCamps has now evolved into 98,000 acres for five new
product offerings - RiverCamps, preserves, ranches, farmsteads and
home sites."
Development Mitigation Land
Florida's growth regulations require that mitigation land be set
aside in the same general area as wetlands being impacted by
development. As of March 31, 2004, approximately 28,000 acres have
been identified for JOE's mitigation use. "One of the significant
competitive advantages that JOE enjoys is a supply of land suitable
and available for mitigation of commercial and large scale residential
projects," said Rummell.
St. Joe Land Preserves, Ranches, Farmsteads and Home Sites
As St. Joe Land Company has learned more about the suitability of
its land holdings, it has been able to create new products and
identify higher and better uses for JOE's timberlands. "As we've said,
the evolution of RiverCamps has created additional real estate
products with various levels of amenities," said Twomey. "We believe
we can provide a better targeted product for a variety of buyers at
higher values than for timberland."
Preserves
Preserves are fee-simple home sites of one quarter of an acre to
three acres clustered within larger conservation areas. With fewer
amenities than RiverCamps, preserves are being designed for second or
pre-retirement homes in a rural setting. As of March 31, 2004,
approximately 3,000 acres have been classified for use as preserves.
Consumer pricing is still being studied but is currently expected to
be above $7,500 per acre.
Ranches
Ranches have evolved into a distinct rural outdoor recreational
product, typically on 75 to 100 acres. A number of ranches are
expected to be larger, and some will have links to large public lands
or have common sporting areas. As of March 31, 2004, approximately
45,000 acres have been classified for use as ranches. Typical consumer
prices are expected to range from $3,000 to $7,000 per acre.
Farmsteads
Farmsteads are rural primary home and recreational products
ranging in size from five to 20 acres. This product is intended for
equestrian, small-scale farming and outdoor recreation uses. As of
March 31, 2004, approximately 17,000 acres have been classified for
use as farmsteads. Prices to consumers are currently expected to range
from $8,000 to $25,000 per acre.
Home Sites
St. Joe Land is developing home sites ranging in size from one
quarter of an acre to 20 acres for sale to home buyers and local
builders. Some home sites will be clustered to create rural
communities. Home sites will range in size from parcels suitable for
subdivision to parcels for individual homes. As of March 31, 2004,
approximately 14,000 acres have been classified for use as home sites.
Prices to consumers are expected to vary broadly but currently are
expected to range from $25,000 to $120,000 per acre, while bulk sales
to local developers may be less.
St. Joe Land Acreage
The St. Joe Land Acreage classification includes conservation land
expected to be sold to and held by government agencies or
environmental groups and woodlands designed for private ownership.
Much of the 403,000 acres identified in this classification could be
designated either conservation or woodlands.
Conservation
Over the last several years, JOE has worked closely with the State
of Florida, The Nature Conservancy and other responsible environmental
groups to identify high-priority conservation lands. Included in this
classification is land that may be used as mitigation for the proposed
relocation of the Bay County - Panama City International Airport.
Woodlands
Woodlands are parcels designed for outdoor recreation. Parcel
sizes range from one to several thousand acres. Prices for the vast
majority of these parcels currently range from $1,000 to more than
$2,500 per acre.
Other Uses
Land designated as timberland and civic infrastructure make up the
Other Uses classification.
Timberland
The timberland classification includes approximately 199,000
acres. The number of acres in this classification has declined
substantially over the past two years as the company has continued to
find higher value uses for land that it formerly called "timber
forever."
Even though the market for land used for timber and forest
products appears to be showing greater strength, the company does not
plan to bring a bulk sale of its timberland to market in the
foreseeable future. Instead, it plans to hold this land with the goal
of transitioning most or all of it over time for sale as Woodlands or,
where possible, other higher value products.
Civic Infrastructure
The approximately 6,000 acres of land designated for civic
infrastructure include land for regional transportation
infrastructure, major highways, schools, parks, public safety and
health care institutions. Included in this classification is the 4,000
acres reserved for the proposed relocation of the Panama City - Bay
County International Airport; not included are streets and related
infrastructure internal to JOE's projects.
The Best Is Yet To Come
"It is impressive after seven years of active development how much
land is still remaining to contribute revenue for future years," said
Rummell. "The vast majority of JOE's original acreage is still
undeveloped, available and being pushed to a higher and better use
potential. The strength of our land assets and their unique place in
the JOE story has never been more powerfully displayed."
About JOE
The St. Joe Company, a publicly held company based in
Jacksonville, is one of Florida's largest real estate operating
companies. It is engaged in town, resort, commercial and industrial
development, land sales and commercial real estate services. JOE also
has significant interests in timber.
More information about JOE can be found online at
http://www.joe.com.
Forward-Looking Statements
Statements in this press release that are not historical facts are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements about
our beliefs, plans, goals, expectations and intentions.
Forward-looking statements involve risk and uncertainty, and there can
be no assurance that the results described in such statements will be
realized. Such statements are based on current expectations and we
undertake no obligation to publicly update or reissue any
forward-looking statements. Risk factors that may cause the actual
results to differ are described in this press release and various
documents filed by the company with the U.S. Securities and Exchange
Commission, including the company's Annual Report on Form 10-K for the
year ended December 31, 2003.
Copyright 2004, The St. Joe Company. "St. Joe," "JOE,"
"RiverCamps" and the "taking flight" design are service marks of The
St. Joe Company.
CONTACT: The St. Joe Company, Jacksonville
Media Contact: Jerry M. Ray, 904-301-4430
or
Investor Contact: Steve Swartz, 904-301-4347