The St. Joe Company Reports Third Quarter 2020 Results and Initiates Quarterly Dividend Program
The Board of Directors authorized a new quarterly cash dividend program, and on
Real Estate Revenue
Real estate revenue increased by approximately 37% to
The Company executed new contracts for 694 homesites in the third quarter of 2020 bringing the total homesites under contract to 1,401 as of
Hospitality Revenue
Hospitality revenue increased by approximately 21% to
Q3
|
Q3 2019 |
Percentage Change |
|
Revenue: |
|||
July |
|
|
11.5% |
August |
5.2 |
4.2 |
23.8% |
September |
5.0 |
3.7 |
35.1% |
|
|
|
21.4% |
For additional context, the table below details the hospitality revenue in the second quarter of 2020 and 2019 as the COVID-19 effects commenced.
Q2
|
Q2 2019 |
Percentage
|
|
Revenue: |
|||
April |
|
|
-70.5% |
May |
4.0 |
5.9 |
-32.2% |
June |
6.3 |
5.3 |
18.9% |
|
|
|
-25.6% |
As of
Leasing Revenue
Leasing revenue from commercial, retail, apartment and other properties increased by approximately 22% for the third quarter of 2020 compared to the same period in 2019. This increase was due to increasing apartment leasing revenue as well as higher lease rates. COVID-19 had minimal impact on the commercial segment. In the third quarter of 2020, the Company did not provide any rent abatements, but deferred approximately
In the third quarter of 2020, the Company executed nine new commercial leases bringing the year to date total of new commercial leases to 23. As of
The Company, through consolidated and unconsolidated joint ventures, has under construction three apartment communities totaling 637 additional units and a 107 unit assisted living / memory care project. In addition, the Company has a commercial leasing project and a self-storage facility under construction totaling approximately 91,000 square feet of rentable space. The Company has executed leases on approximately 55,000 square feet of additional commercial spaces which are expected to begin construction in 2021.
Timber Revenue
Timber revenue increased by approximately 23% to
Other Operating and Corporate Expenses
Other operating and corporate expenses of
Liquidity
The Company maintained cash, cash equivalents and investments of
Financial data schedules in this press release include consolidated results, summary balance sheets, debt and other operating and corporate expenses for the third quarter of 2020 and 2019, respectively.
FINANCIAL DATA
Consolidated Results (Unaudited) ($ in millions except share and per share amounts) |
||||
|
Quarter Ended
|
Nine Months Ended
|
||
|
2020 |
2019 |
2020 |
2019 |
Revenue |
|
|
|
|
Real estate revenue |
|
|
|
|
Hospitality revenue |
17.0 |
14.0 |
35.2 |
37.0 |
Leasing revenue |
4.9 |
4.0 |
14.2 |
11.2 |
Timber revenue |
1.6 |
1.3 |
5.5 |
2.6 |
Total revenue |
42.0 |
32.8 |
96.7 |
84.4 |
Expenses |
|
|
|
|
Cost of real estate revenue |
9.4 |
6.0 |
18.4 |
14.7 |
Cost of hospitality revenue |
11.0 |
10.2 |
26.5 |
26.4 |
Cost of leasing revenue |
2.0 |
1.3 |
4.0 |
3.4 |
Cost of timber revenue |
0.2 |
0.2 |
0.6 |
0.5 |
Other operating and corporate expenses |
5.1 |
5.1 |
17.0 |
16.1 |
Depreciation, depletion and amortization |
3.3 |
2.6 |
9.4 |
7.2 |
Total expenses |
31.0 |
25.4 |
75.9 |
68.3 |
Operating income |
11.0 |
7.4 |
20.8 |
16.1 |
Investment income, net |
2.4 |
2.4 |
2.8 |
11.0 |
Interest expense |
(3.4) |
(3.1) |
(10.1) |
(9.1) |
Other income, net |
0.3 |
2.1 |
20.3 |
7.1 |
Income before equity in loss from unconsolidated affiliates and income taxes |
10.3 |
8.8 |
33.8 |
25.1 |
Equity in loss from unconsolidated affiliates |
(0.1) |
-- |
(0.3) |
-- |
Income tax expense |
(2.4) |
(3.0) |
(7.8) |
(7.1) |
Net income |
7.8 |
5.8 |
25.7 |
18.0 |
Net (income) loss attributable to non-controlling interest |
-- |
(0.1) |
(0.3) |
0.1 |
Net income attributable to the Company |
|
|
|
|
Net income per share attributable to the Company |
|
|
|
|
Weighted average shares outstanding |
58,882,549 |
60,043,427 |
59,052,613 |
60,187,313 |
Summary Balance Sheets (Unaudited) ($ in millions) |
||
|
|
|
Assets |
|
|
Investment in real estate, net |
|
|
Investment in unconsolidated joint ventures |
34.8 |
5.1 |
Cash and cash equivalents |
102.4 |
185.7 |
Investments – debt securities |
50.0 |
0.1 |
Investments – equity securities |
2.7 |
9.7 |
Other assets |
58.5 |
52.0 |
Property and equipment, net |
18.7 |
19.0 |
Investments held by special purpose entities |
206.1 |
206.8 |
Total assets |
|
|
|
|
|
Liabilities and Equity |
|
|
Debt, net |
|
|
Other liabilities |
70.8 |
57.2 |
Deferred tax liabilities, net |
60.1 |
52.8 |
Senior Notes held by special purpose entity |
177.2 |
177.0 |
Total liabilities |
451.5 |
379.5 |
Total equity |
552.4 |
529.7 |
Total liabilities and equity |
|
|
Debt Schedule (Unaudited) ($ in millions – Net of issuance costs) |
||
|
|
|
|
|
|
Pier Park Crossings joint venture |
34.5 |
33.5 |
Watersound Origins Crossings joint venture |
21.1 |
2.4 |
Pier Park Crossings II joint venture |
14.0 |
-- |
Watercrest joint venture |
13.5 |
-- |
|
6.1 |
7.0 |
Beckrich Building III |
5.4 |
-- |
|
1.5 |
1.6 |
|
1.5 |
1.5 |
WaterColor Crossings |
1.3 |
1.4 |
Total debt, net |
|
|
Other Operating and Corporate Expenses (Unaudited) ($ in millions) |
||||
|
Quarter Ended
|
Nine Months Ended
|
||
|
2020 |
2019 |
2020 |
2019 |
Employee costs |
|
|
|
|
401(k) contribution |
-- |
-- |
1.2 |
1.1 |
Property taxes and insurance |
1.3 |
1.3 |
3.8 |
3.7 |
Professional fees |
1.0 |
1.0 |
3.2 |
3.0 |
Marketing and owner association costs |
0.4 |
0.2 |
0.9 |
0.9 |
Occupancy, repairs and maintenance |
0.2 |
0.2 |
0.6 |
0.7 |
Other |
0.2 |
0.5 |
1.0 |
1.0 |
Total other operating and corporate expense |
|
|
|
|
Additional Information and Where to Find It
Additional information with respect to the Company’s results for the third quarter 2020 will be available in a Form 10-Q that will be filed with the
Important Notice Regarding Forward-Looking Statements
Certain statements contained in this press release, as well as other information provided from time to time by the Company or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “guidance,” “anticipate,” “estimate,” “expect,” “forecast,” “project,” “plan,” “intend,” “believe,” “confident,” “may,” “should,” “can have,” “likely,” “future” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Examples of forward-looking statements in this press release include statements regarding expected revenues from sales of residential homesites; our continued cost discipline to maintain an efficient cost structure; our capital allocation initiatives, including the timing and amount of dividends; timing of new projects in 2020; and our continued progress in our operations, including revenue growth and bottom line expectations from new projects or phases. Any such forward-looking statements are not guarantees of performance or results, and involve risks, uncertainties (some of which are beyond the Company’s control) and assumptions.
The Company wishes to caution readers that, although we believe any forward-looking statements are based on reasonable assumptions, certain important factors may have affected and could in the future affect the Company’s actual financial results and could cause the Company’s actual financial results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company, including (1) the potential impacts of the ongoing COVID-19 pandemic; (2) any changes in our strategic objectives or our ability to successfully implement such strategic objectives; (3) our ability to successfully execute our newer business ventures, including expansion of our portfolio of income producing commercial and multi-family properties, assisted living communities and hotels some or all of which may be negatively impacted by the COVID-19 pandemic; (4) any potential negative impact of our longer-term property development strategy, including losses and negative cash flows for an extended period of time if we continue with the self-development of granted entitlements; (5) significant decreases in the market value of our investments in securities or any other investments; (6) our ability to capitalize on strategic opportunities presented by a population growth in
Any forward-looking statement made by us in this press release speaks only as of the date on which it is made. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
About
© 2020,
View source version on businesswire.com: https://www.businesswire.com/news/home/20201028006068/en/
St. Joe Investor Relations Contact:
Chief Financial Officer
1-866-417-7132
Marek.Bakun@Joe.Com
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