UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 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):

May 6, 2008

 

THE ST. JOE COMPANY

(Exact Name of Registrant as Specified in Its Charter)


Florida

 

1-10466

 

59-0432511

(State or Other Jurisdiction

of Incorporation)

(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)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


ITEM 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On May 6, 2008, The St. Joe Company (the "Company") issued a press release announcing the Company’s financial results for the quarter ended March 31, 2008. A copy of the press release is furnished with this Form 8-K as Exhibit 99.1.

Also furnished herewith as Exhibit 99.2 are tables containing certain additional information regarding the results of operations of the Company for the quarter ended March 31, 2008.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

99.1      Press Release dated May 6, 2008

99.2      Additional information tables for the quarter ended March 31, 2008


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

 

 

Date: May 6, 2008 By:

/s/ William S. McCalmont

 

William S. McCalmont

Chief Financial Officer

Exhibit 99.1

The St. Joe Company (JOE) Reports First Quarter 2008 Financial Results

Panama City – Bay County International Airport Construction Progresses on Schedule

JACKSONVILLE, Fla.--(BUSINESS WIRE)--The St. Joe Company (NYSE:JOE) today announced Net Income for the first quarter 2008 increased $12.4 million to $32.1 million, or $0.40 per share, compared to Net Income of $19.7 million, or $0.27 per share, for the first quarter of 2007. JOE’s first quarter results included pre-tax impairment charges of $2.3 million, or $.02 per share after taxes, as a result of continuing declines in sales and listing prices principally in our primary communities. Also included in 2008 results are pre-tax restructuring charges of $0.5 million, or less than $0.01 per share after tax, compared to $3.2 million, or $0.03 per share after tax, in 2007. All per share references in this release are presented on a diluted basis.

“Like the rest of the country, Florida is facing very challenging real estate market conditions. Consumer confidence is declining and many consumers seem to be deferring residential real estate purchases until there is more economic clarity,” said chairman and CEO Peter S. Rummell. “With the U.S. and Florida economies battling rising home foreclosures, a tightening of credit and a significant inventory of unsold homes, predicting when residential real estate markets will return to health remains difficult. However, demand for rural land remains strong, and we are having success selling non-strategic rural land parcels to a wide variety of customers.”

During the first quarter, significant progress was achieved in four areas:


“While it is impossible to predict when conditions in JOE residential markets will improve, we are taking important steps to be properly positioned when they do,” said Rummell. “We have become a leaner, more nimble company.”

“Looking ahead two years from today, 2010 will be an important time for JOE,” said Rummell. “The new Panama City - Bay County airport is scheduled to open at that point and many economists think economic conditions will be improving by then. Our job between now and then is to focus on the demand side of the equation and work with a broad range of strategic allies - from the state economic development organizations to third-party developers - to ensure West Bay and the new airport are a success.”

Airport Progress Continues

“We are pleased that the construction of the Panama City – Bay County International Airport is progressing on schedule,” said Rummell. “Each day the Airport Authority continues with construction brings us one day closer to a new airport capable of attracting better air service and stronger economic development to the region. It also brings us closer to the permanent protection of West Bay and the establishment of the West Bay Preservation Area.”

The Airport Authority has received all final permits, completed and approved the airport relocation financial package and construction is well underway. The Airport Authority continues to estimate that the new airport will open in mid-2010, barring unexpected delays or additional legal challenges. Airport opponents have filed suits in three different federal courts in an effort to halt or delay the relocation of the airport. To date these courts have consistently issued rulings allowing construction to continue.

“On a separate front, Coastal Vision 3000, a rapidly growing business group with members from across Northwest Florida, has initiated a regional effort to attract improved air service to Northwest Florida,” said Rummell. “With the airport now well under construction, we must focus our attention on efforts to drive demand for real estate in Northwest Florida. That includes air service marketing and economic development. The new airport is an extraordinary economic development tool that we intend to take full advantage of.”

JOE’s Balance Sheet

On March 3, 2008, JOE sold 17,145,000 shares of its common stock. The approximately $580 million of net proceeds from the public offering were used to repay substantially all of JOE's outstanding indebtedness.

“JOE’s successful equity offering has dramatically increased our financial flexibility in weathering the current market downturn,” said William S. McCalmont, JOE’s CFO. “As we move forward, we are committed to maintaining a strong balance sheet.”

At March 31, 2008, JOE’s debt was $288.7 million, including $30.2 million of defeased debt. On April 4, 2008, JOE paid off $240 million of Senior Notes making it virtually debt free. At the end of the first quarter, JOE had approximately $480.3 million of available capacity under its $500 million Revolving Credit Facility.


Additionally, JOE continues to focus on reducing its capital expenditures and overhead expenses. JOE expects capital expenditures in 2008 to be less than $90 million and even lower in 2009.

Operating Results

During the fourth quarter of 2007, JOE announced it was marketing non-strategic rural lands for sale. During the quarter that ended March 31, 2008, JOE sold 57,435 acres for a total of $91.1 million, with prices ranging from $1,330 to $4,500 per acre.

“Demand for both large and small tracts of rural land has held up well during this current market downturn,” said JOE president and COO Britt Greene. “We continue to see interest from large landowners, recreational land buyers, conservation land buyers and pension funds.”

Resort and primary residential sales generated $9.7 million in revenue. As anticipated, conditions in JOE’s residential markets remain difficult. JOE did not close any commercial land sales during the first quarter. Due to the challenges facing the retail industry, as well as the nature of commercial land transactions, JOE expects its revenue from commercial land sales to remain lumpy.

“We continue to see interest in strategically located commercial and industrial property,” said Greene. “We have had solid interest from prospective retail, hospitality and commercial users and strategic partners in property in the West Bay Sector near the new airport. However, we are going to be strategic in how best to realize this land’s value. We are evaluating ways to build sustainable recurring income streams from commercial development on this very valuable land.”

Land Holdings and Entitlements

On March 31, 2008, JOE owned approximately 638,000 acres, concentrated primarily in Northwest Florida. Approximately 430,000 acres, or 68 percent, of JOE’s total land holdings are within 15 miles of the coast of the Gulf of Mexico.

On March 31, 2008, JOE’s land-use entitlements in hand or in process totaled approximately 46,200 residential units and approximately 14.5 million square feet of commercial space, as well as an additional 611 acres with land-use entitlements for commercial uses.

Management Succession

On May 13, 2008, the date of JOE’s 2008 annual meeting of shareholders, Britt Greene will assume the position of CEO of JOE. Peter Rummell will continue to serve as Chairman of the Board of Directors.

“I am immensely proud of what we have accomplished during the last 11 years," said Rummell. “I am equally proud that Britt comes from within the organization, providing stability and context as we move forward.”


FINANCIAL DATA

($ in millions except per share amounts)

 
Consolidated Results Quarter Ended March 31,
  2008       2007  
Revenues
Real estate sales $ 101.3 $ 82.4
Timber sales 7.6 4.8
Rental revenue 0.6 1.2
Other revenues   7.3     6.6  
Total revenues   116.8     95.0  
Expenses
Cost of real estate sales 18.9 26.5
Cost of timber sales 4.9 4.4
Cost of rental revenue 0.7 1.1
Cost of other revenues 9.5 8.0
Other operating expenses 15.5 14.7
Corporate expense, net 8.6 7.9
Restructuring charge 0.5 3.2
Impairment losses 2.3 --
Depreciation and amortization   4.7     5.0  
Total expenses   65.6     70.8  
Operating profit 51.2 24.2
Other income (expense)  

(1.7

)   0.8  
Pretax income from continuing operations

49.5

25.0
Income tax expense

(17.8

) (6.2 )
Minority interest 0.4 (0.4 )
Equity (loss) in income of unconsolidated affiliates (0.1 ) 0.9
Discontinued operations, net of tax   0.1     0.4  
Net income $

32.1

  $ 19.7  
Net income per share $ 0.40   $ 0.27  
 
Weighted average shares outstanding   79,502,018 (1 )   74,257,412  
 

(1) As a result of the recent equity offering, shares outstanding at March 31, 2008 totaled 92,452,108.


Revenues by Segment

 
Quarter Ended March 31,

2008   2007
Residential
Real estate sales $ 9.8 $ 30.1
Rental revenue 0.4 0.2
Other revenues   7.4   6.7
Total Residential   17.6   37.0
Commercial
Real estate sales 0.4 5.5
Rental revenue 0.1 1.0
Other revenues   --   --
Total Commercial   0.5   6.5
Rural Land sales
Real estate sales   91.1   46.7
Total Rural Land sales   91.1   46.7
Forestry sales   7.6   4.8

Total revenues

$ 116.8 $ 95.0

Summary Balance Sheet

   
March 31, 2008 December 31, 2007
Assets
Investment in real estate $ 950.7 $ 943.5
Cash and cash equivalents

308.9

24.3
Pledged treasury securities 30.2 30.7
Notes receivable 130.2 56.3
Prepaid pension asset 110.9 109.3
Property, plant and equipment, net 22.6 23.7
Other assets

70.5

68.0
Assets held for sale   8.1   8.1
Total assets $

1,632.1

$ 1,263.9
 
Liabilities and Stockholders’ Equity
Debt $ 288.7 $ 541.2
Accounts payable, accrued liabilities 135.9 152.3
Deferred income taxes 107.3 83.5
Liabilities of assets held for sale   0.3   0.3
Total liabilities 532.2 777.3
Minority interest 4.3 6.3
Total stockholders’ equity  

1,095.6

  480.3
Total liabilities and stockholders’ equity $

1,632.1

$ 1,263.9

Debt Schedule

   
March 31, 2008 December 31, 2007
Senior revolving credit facility $ -- $ 132.0
Senior notes 240.0 (1 ) 240.0
Term loan -- 100.0

Debt secured by securities, certain commercial and residential property

  48.7 (2 )   69.2 (2 )
Total debt $ 288.7   $ 541.2  
 

(1) All Senior Notes were paid off on April 4, 2008. Also paid on April 4, 2008 were $29.7 million of “make-whole” fees.

(2) Includes $30.2 million of debt defeased in connection with the sale of our office portfolio.

Additional Information

Additional information with respect to the Company’s results for the first quarter 2008 will be made available in a Form 8-K and Form 10-Q that will be filed with the Securities and Exchange Commission today.

Conference Call Information

On Tuesday, May 6, 2008, at 10:30 a.m. (EDT), JOE will host an interactive conference call to review the company’s results for the quarter ended March 31, 2008.

To participate in the call, please phone 888-600-4885 (for domestic calls from the United States) or 913-312-0385 (for international calls) approximately ten minutes before the scheduled start time. You will be asked for a Confirmation Code which is 5754866. Approximately three hours following the call, you may access a replay of the call by phoning 888-203-1112 (domestic) or 719-457-0820 (international) using access code 5754866. The replay will be available for one week.

JOE will also web cast the conference call live over the internet in a listen-only format. Listeners can participate by visiting the company’s web site at www.joe.com. Access will be available 15 minutes prior to the scheduled start time. A replay of the conference call will be posted to the JOE web site approximately three hours following the call. The replay of the call will be available for one week.

About JOE

The St. Joe Company (NYSE:JOE), a publicly held company based in Jacksonville, is one of Florida’s largest real estate development companies. We are primarily engaged in real estate development and sales, with significant interests in timber. Our mission is to create places that inspire people and make JOE’s Florida an even better place to live, work and play. We’re no ordinary JOE.

More information about JOE can be found at our web site at www.joe.com.


Forward-Looking Statements

We have made forward-looking statements in this earnings release pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this release that are not historical facts are forward-looking statements. You can find many of these forward-looking statements by looking for words such as “intend”, “anticipate”, “believe”, “estimate”, “expect”, “plan”, “should”, “forecast” or similar expressions. In particular, forward-looking statements include, among others, statements about the following:

Forward-looking statements are not guarantees of future performance. You are cautioned not to place undue reliance on any of these forward-looking statements. These statements are made as of the date hereof based on our current expectations, and we undertake no obligation to update the information contained in this release. New information, future events or risks may cause the forward-looking events we discuss in this earnings release not to occur.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties. Factors that could cause actual results to differ materially from those contemplated by a forward-looking statement include the risk factors described in our annual report on Form 10-K for the year ended December 31, 2007 and our quarterly reports on Form 10-Q, as well as, among others, the following:


The foregoing list is not exhaustive and should be read in conjunction with other cautionary statements contained in our periodic and other filings with the Securities and Exchange Commission.

© 2008, The St. Joe Company. “St. Joe,” “JOE,” and the "Taking Flight" design are service marks of The St. Joe Company.

CONTACT:
The St. Joe Company, Jacksonville
JOE Media Contact: Jerry M. Ray, 904-301-4430
jray@joe.com
or
JOE Investor Contact: David Childers, 904-301-4302
dchilders@joe.com

Exhibit 99.2

Table 1
Summary of Land-Use Entitlements (1)
Active JOE Residential and Mixed-Use Projects in Florida
March 31, 2008

 

 

 

Project

 

 

 

 

Class.(2)

 

 

 

 

County

 

 

 

Project Acres

 

 

 

Project Units(3)

  Residential

Units Closed Since Inception

 

Residential

Units Under Contract as of 3/31/08

 

Total Residential Units Remaining

 

Remaining

Commercial

Entitlements

(Sq. Ft.)(4)

 
In Development: (5)
Artisan Park (6) PR Osceola 175 618 573 -- 45 --
Cutter Ridge PR Franklin 10 25 -- -- 25 --
Hawks Landing PR Bay 88 168 129 -- 39 --
Landings at Wetappo RR Gulf 113 24 7 -- 17 --
Palmetto Trace PR Bay 141 481 480 -- 1 --
PineWood PR Bay 104 264 -- -- 264 --
RiverCamps on Crooked Creek RS Bay 1,491 408 186 -- 222 --
RiverSide at Chipola RR Calhoun 120 10 2 -- 8 --
RiverTown PR St. Johns 4,170 4,500 30 -- 4,470 500,000
SevenShores VAR Manatee 192 686 -- -- 686 9,000
SouthWood VAR Leon 3,370 4,770 2,243 300 2,227 4,577,360
St. Johns Golf & Country Club PR St. Johns 880 799 796 -- 3 --
SummerCamp Beach RS Franklin 762 499 80 -- 419 25,000
Victoria Park VAR Volusia 1,859 4,200 1,403 81 2,716 818,654
WaterColor RS Walton 499 1,140 882 -- 258 47,600
WaterSound VAR Walton 2,425 1,432 22 -- 1,410 457,380
WaterSound Beach RS Walton 256 511 440 -- 71 29,000
WaterSound West Beach RS Walton 62 199 33 -- 166 --
Wild Heron (7) RS Bay 17 28 1 -- 27 --
WindMark Beach RS Gulf 2,020 1,662 134 -- 1,528 75,000
Subtotal 18,754 22,424 7,441 381 14,602 6,538,994
 
In Pre-Development: (5)
Avenue A PR Gulf 6 96 -- -- 96 --
Bayview Estates PR Gulf 31 45 -- -- 45 --
Bayview Multifamily PR Gulf 20 300 -- -- 300 --
Beacon Hill RR Gulf 3 12 -- -- 12 --
Beckrich NE PR Bay 15 70 -- -- 70 --
Boggy Creek PR Bay 630 526 -- -- 526 --
Bonfire Beach RS Bay 550 750 -- -- 750 70,000
Breakfast Point, Phase 1 VAR Bay 115 320 -- -- 320 --
Carrabelle East PR Franklin 200 600 -- -- 600 --
College Station PR Bay 567 800 -- -- 800 --
DeerPoint Cedar Grove PR Bay 668 950 -- -- 950 --
East Lake Creek PR Bay 81 313 -- -- 313 --
East Lake Powell RS Bay 181 360 -- -- 360 30,000
Howards Creek RR Gulf 8 33 -- -- 33 --
Laguna Beach West PR Bay 59 382 -- --- 382 --
Long Avenue PR Gulf 10 30 -- -- 30 --
Palmetto Bayou PR Bay 58 217 -- -- 217 90,000
ParkSide PR Bay 48 480 -- -- 480 --
Pier Park NE VAR Bay 57 460 -- -- 460 190,000
Pier Park Timeshare RS Bay 13 125 -- -- 125 --
Port St. Joe Draper, Phase 1

PR

Gulf 639 1,200 -- -- 1,200 --
Port St. Joe Draper, Phase 2 PR Gulf 981 2,125 -- -- 2,125 150,000
Port St. Joe Town Center VAR Gulf 180 624 -- -- 624 500,000
Powell Adams RS Bay 56 3,131 -- -- 3,131 --
Sabal Island RS Gulf 45 18 -- -- 18 --
South Walton Multifamily PR Walton 40 212 -- -- 212 --
St. James Island Granite Point RS Franklin 1,000 2,000 -- -- 2,000 --
Star Avenue North VAR Bay 271 1,248 -- -- 1,248 380,000
The Cove RR Gulf 64 107 -- -- 107 --
Timber Island (8) RS Franklin 49 407 -- -- 407 14,500
Topsail VAR Walton 115 627 -- -- 627 300,000
Wavecrest RS Bay 7 95 -- -- 95 --
WestBay Corners SE VAR Bay 100 524 -- -- 524 50,000
WestBay Corners SW PR Bay 64 160 -- -- 160 --
WestBay DSAP VAR Bay 15,089 5,628 -- -- 5,628 4,330,000
WestBay Landing (9) VAR Bay 950 214 -- -- 214 --
Subtotal 22,970 25,189 -- -- 25,189 6,104,500
Total 41,724 47,613 7,441 381 39,791 12,643,494


(1) A project is deemed land-use entitled when all major discretionary governmental land-use approvals have been received.
      Some of these projects may require additional permits for development and/or build-out; they also may be subject to
      legal challenge.

(2) Current JOE land classifications:

(3) Project units represent the maximum number of units entitled or currently expected at full build-out. The actual number of
      units or square feet to be constructed at full build-out may be lower than the number entitled or currently expected.

(4) Represents the remaining square feet with land-use entitlements as designated in a development order or expected given
      the existing property land use or zoning and present plans. Commercial entitlements include retail, office and industrial
      uses. Industrial uses total 6,128,381 square feet including SouthWood, RiverTown and the West Bay DSAP.

(5) A project is “in development” when construction on the project has commenced. A project in “pre-development” has
      land-use entitlements but is still under internal evaluation or requires one or more additional permits prior to the
      commencement of construction.

(6) Artisan Park is 74 percent owned by JOE.

(7) In August 2007, we acquired certain home sites within the Wild Heron community.

(8) Timber Island entitlements include seven residential units and 400 units for hotel or other transient uses
      (including units held with fractional ownership such as private residence clubs) and include 480 wet/dry
      marina slips.

(9) West Bay Landing is a sub-project within WestBay DSAP.

Table 2
Proposed JOE Residential and Mixed-Use Projects
In the Land-Use Entitlement Process in Florida (1)
March 31, 2008

 

 

Project

 

 

 

Class (2)

 

 

 

County

 

 

 

Project Acres

 

 

Estimated

Project Units (3)

  Estimated

Commercial

Entitlements

(Sq. Ft.) (3)

Breakfast Point, Phase 2 VAR Bay 1,299 2,780 635,000
SouthSide VAR Leon 1,625 2,800 1,150,000
St. James Island McIntyre RR Franklin 1,704 340 --
St. James Island RiverCamps RS Franklin 2,500 500 --
Total 7,128 6,420 1,785,000

(1) A project is deemed to be in the land-use entitlement process when customary steps necessary for the preparation and
      submittal of an application, such as conducting pre-application meetings or similar discussions with governmental
      officials, have commenced and/or an application has been filed. All projects listed have significant entitlement steps
      remaining that could affect their timing, scale and viability. There can be no assurance that these entitlements will
      ultimately be received.

(2) Current JOE land classifications:

(3) The actual number of units or square feet to be constructed at full build-out may be lower than the number
      ultimately entitled.


Table 3
Summary of Additional Commercial Land-Use Entitlements (1)
(Commercial Projects Not Included in Tables 1 and 2 Above)
Active JOE Florida Commercial Projects
March 31, 2008

 

Project

 

 

County

 

Project

Acres

  Acres Sold

Since Inception

  Acres Under Contract

As of 3/31/08

 

Total Acres Remaining

Airport Commerce Leon 45 7 -- 38
Alf Coleman Retail Bay 25 23 -- 2
Beach Commerce Bay 157 151 -- 6
Beach Commerce II Bay 112 13 -- 99
Beckrich Office Park Bay 17 12 -- 5
Beckrich Retail Bay 44 41 3 --
Cedar Grove Commerce Bay 51 1 4 46
Franklin Industrial Franklin 7 -- -- 7
Glades Retail Bay 14 -- -- 14
Gulf Boulevard Bay 78 27 -- 51
Hammock Creek Commerce Gadsden 165 27 -- 138
Mill Creek Commerce Bay 37 -- -- 37
Nautilus Court Bay 11 7 -- 4
Port St. Joe Commerce II Gulf 39 9 -- 30
Port St. Joe Commerce III Gulf 50 -- -- 50
Port St. Joe Medical Gulf 19 -- -- 19
Powell Hills Retail Bay 44 -- -- 44
South Walton Commerce Walton 38 17 -- 21
Total 953 335 7 611

(1) A project is deemed land-use entitled when all major discretionary governmental land-use approvals have been received.
      Some of these projects may require additional permits for development and/or build-out; they also may be subject to legal
      challenge. Includes significant JOE projects that are either operating, under development or in the pre-development stage.

Table 4
Stock Repurchase Activity
Through March 31, 2008

    Shares            

Period

Purchased

 

Surrendered (1)

 

Total

Total Cost

(in millions)

Average Price
 
1998 2,574,200 11,890 2,586,090 $55.5 $21.41
1999 2,843,200 11,890 2,855,090 69.5 24.31
2000 3,517,066 -- 3,517,066 80.2 22.78
2001 7,071,300 58,550 7,129,850 176.0 24.67
2002 5,169,906 256,729 5,426,635 157.6 29.03
2003 2,555,174 812,802 3,367,976 102.9 30.55
2004 1,561,565 884,633 2,446,198 105.0 42.90
2005 1,705,000 68,648 1,773,648 124.8 70.33
2006 948,200 148,417 1,096,617 57.3 52.22
2007 -- 58,338 58,338 2.1 35.35
First Quarter 2008 -- 3,721 3,721 0.1 38.57
Total/Weighted Average 27,945,611 2,315,618 30,261,229 $931.1 $30.74

(1) Shares surrendered by company executives as payment for the strike price and taxes due on exercised stock
      options and the taxes due on the vesting of restricted stock.  


Table 5
Residential Real Estate
Sales Activity
Three Months Ended March 31,
($ in millions)

  2008       2007

Number

of Units Closed

 

 

 

Revenue

 

 

Cost of

Sales (1)

 

 

Gross Profit

Number

of Units Closed

 

 

 

Revenue

 

 

Cost of

Sales (1)

 

 

Gross Profit

 
Home Sites (2) 5 $1.2 $0.7 $0.5 77 $12.3 $5.4 $6.9
Homes (3) 13 8.5 8.6 (0.1) 52 17.8 13.7 4.1
Total 18 $9.7 $9.3 $0.4 129 $30.1 $19.1 $11.0

(1) Cost of sales for home sites in the first quarter of 2008 consisted of $0.6 million in direct costs, $0.1 million in selling
      costs and less than $0.1 million in indirect costs. Cost of sales for home sites in the first quarter of 2007 consisted
      of $4.5 million in direct costs, $0.4 million in selling costs and $0.5 million in indirect costs. Cost of sales for homes
      in the first quarter of 2008 consisted of $6.2 million in direct costs, $0.5 million in selling costs and $1.9 million in
      indirect costs. Cost of sales for homes in the first quarter of 2007 consisted of $11.0 million in direct costs, $0.8
      million in selling costs and $1.9 million in indirect costs.

(2) Profit has been deferred as a result of continuing development obligations at SummerCamp Beach in 2008 and 2007
      and WaterSound West Beach in 2007. As a consequence, revenue recognition and closings may occur in
      different periods.

(3) Homes include single-family, multifamily and Private Residence Club (PRC) units. Multifamily and PRC revenue is
      recognized, if preconditions are met, on a percentage-of-completion basis. As a consequence, revenue recognition
      and closings may occur in different periods. Paseos and Rivercrest, two joint ventures 50 percent owned by JOE,
     are not included; sales are complete at both of these communities.

Table 6
Residential Real Estate
Units Placed Under Contract
Three Months Ended March 31,

  2008   2007   Percentage Change
Home Sites 4 63 (93.7) %
Homes (1) 12 17 (29.4) %
Total 16 80 (80.0) %

(1) Homes include single-family homes, multifamily and PRC units. Paseos and
      Rivercrest, two unconsolidated joint ventures, are not included; sales are
      complete at both of these communities.

Table 7
Residential Real Estate
Backlog (1)
($ in millions)

  March 31, 2008   March 31, 2007
   
Units Revenues Units Revenues
Home Sites 81 $3.1 7

$1.5

Homes -- -- 21

12.1

Total 81 $3.1 28

$13.6

(1) Backlog represents units under contract but not yet closed.


Table 8
Residential Real Estate
National Homebuilder Summary
of Home Site Commitments and Purchases

Activity During the
Three Months Ended March  31, 2008

 

  12/31/2007

Commitments (1)

 

Closed

  Average Price

Closed Units

  Change in Commitments   3/31/2008 Commitments
Beazer Homes
Laguna West 232 -- -- -- 232
SouthWood 20 -- -- -- 20
Shea Homes
Victoria Park 618 -- -- -- 618
David Weekley Homes
RiverTown 87 3 72,500 -- 84
SouthWood 106 -- -- -- 106
American Home Builders
RiverTown 59 -- -- 59
Cornerstone Homes
RiverTown 23 -- -- -- 23
Issa Homes
RiverTown 66 -- -- -- 66
Lakeridge Homes
Victoria Park -- -- -- -- --
Total 1,211 3 -- 1,208

(1)  Includes agreements with minimal down payments.  Homebuilders may be more willing to delay or cancel commitments if
       they have only minimal down payments at risk.


Table 9
Residential Real Estate Sales Activity
Three Months Ended March 31,
($ in thousands)

2008   2007
Units Closed   Avg. Price   Accepted (1)   Avg. Price Units Closed   Avg. Price   Accepted (1)   Avg. Price
Artisan Park (2)
Home Sites -- $ -- -- $ -- -- $ -- -- $ --
Single-Family Homes 5 621.2 5 621.2 10 642.4 13 579.9
Multifamily Homes 4 314.3 4 314.3 24 508.3 -- --
Hawks Landing
Home Sites -- -- -- -- 21 65.5 19 64.1
Palmetto Trace
Home Sites -- -- -- -- 5 83.5 5 83.5
Single-Family Homes -- -- -- -- 1 269.5 1 269.5
Rivercrest (2)
Single-Family Homes -- -- -- -- 12 231.0 8 221.4
RiverTown
Home Sites 3 72.5 3 72.5 -- -- -- --
SevenShores
Multifamily Homes -- -- -- -- -- --

(6)

 

1,025.4
SouthWood
Home Sites -- --

(1)

 

115.0 35 81.3 26 78.1
Single-Family Homes -- -- -- -- 4 370.7 -- --
St. Johns G &CC
Home Sites -- -- -- -- 2 157.5 -- --
Single-Family Homes -- -- -- -- 6 474.2 4 433.3
SummerCamp Beach
Single-Family Homes -- -- -- -- -- --

(1)

 

968.7
The Hammocks
Single-Family Homes -- -- -- -- 1 153.7 1 153.7
Victoria Park
Home Sites -- -- -- -- 1 299.0 -- --
Single-Family Homes 1 214.2 1 214.2 3 310.3 2 298.0
WaterColor
Home Sites 1 782.0 1 782.0 2 1,362.7 3 1,117.3
Single/Multifamily Homes 1 1,815.0 1 1,815.0 1 775.0 1 775.0
WaterSound
Home Sites -- -- -- -- 3 150.4 3 150.4
WaterSound Beach
Home Sites -- -- -- -- 1 1,421.4 -- --
Single-Family Homes -- -- -- -- 2 2,286.2 2 2,172.5
WaterSound West Beach
Home Sites 1 177.2 1 177.2 4 293.4 4 293.4
Single-Family Homes 1 837.0 1 837.0 -- -- -- --
WindMark Beach
Home Sites -- -- -- -- 3 194.2 3 194.2
Single-Family Homes 1   1,299.5 --     -- --   -- --     --
Total Home Sites 5 $ 235.3 4   $ 265.4 77 $ 150.7 63   $ 146.4
Total Single/Multifamily Homes 13 $ 656.1 12   $ 602.4 64 $ 506.6 25   $ 401.0


(1) Contracts accepted during the quarter. Contracts accepted and closed in the same quarter are also included as units closed.
      Average prices shown reflect variations in the product mix across time periods as well as price changes for similar product.

(2) JOE owns 74 percent of Artisan Park and 50 percent of Rivercrest. Sales from Rivercrest are not consolidated with the
      financial results of residential real estate.

Table 10
Commercial Land Sales
Three Months Ended March 31,
($ in thousands)

  Number of Sales   Acres Sold   Gross Sales Price   Average Price/Acre
2008
Northwest Florida -- -- $ -- $ --
2007
Northwest Florida 6 13 $1,943 $146.5
Other 3 19 3,256 175.3
Total 9 32 $5,199 $163.3

Table 11
Rural Land Sales
Three Months Ended March 31,

  Number of Sales   Acres Sold   Gross Sales Price

(in thousands)

  Average Price/Acre
2008
Woodlands 6 57,435 $91,074 $1,586
2007
Florida Wild 2 3,883 $9,905 $2,551
Woodlands 6 27,320 35,541 1,300
Other 2 92 1,230 13,370
Total 10 31,295 $46,676 $1,491

FINANCIAL DATA
($ in millions)

Quarterly Segment Pretax Income (Loss)
From Continuing Operations

Mar 31,

2008

Dec 31,

2007

Sept 30,

2007

June 30,

2007

Mar 31,

2007

Dec 31, 2006 Sept 30,

2006

June 30,

2006

Mar 31,

2006

Residential $ (18.7 ) $ (11.4 ) $ (26.2 ) $ (0.8 ) $ (5.4 ) $ 4.3 $ (7.6 ) $ 17.2 $ 10.2
Commercial (0.9 ) 4.6 2.3 8.4 0.1 13.6 8.2 1.6 0.6
Rural Land sales 80.1 24.5 27.8 7.2 40.4 26.7 12.2 22.1 11.4
Forestry 1.9 (1.9 ) 1.3 0.9 0.1 1.5 1.0 0.7 2.0
Corporate and other  

(12.9

)   (11.0 )   (15.8 )   (16.4 )   (10.2 )   (18.9 )   (16.3 )   (17.2 )   (20.3 )

Pretax income (loss) from continuing operations

 

$

49.5

  $ 4.8   $ (10.6 ) $ (0.7 ) $ 25.0   $ 27.2   $ (2.5 ) $ 24.4   $ 3.9  


Discontinued Operations, Net of Tax

  Quarter Ended March 31,
2008   2007
 
Income from Saussy Burbank operations, net of tax (1) $ -- $0.7
Income (loss) from office buildings, net of tax -- (0.5)
Income (loss) from Sunshine State Cypress operations, net of tax 0.1 0.2
Net income (loss) from discontinued operations $0.1 $0.4

(1) Quarter ended March 31, 2007 includes a $2.2 million impairment charge to approximate fair value, less costs to sell,
      of Saussy Burbank.

Other Income (Expense)

  Quarter Ended March 31,
2008   2007

 

 

 

Dividend and interest income

$1.8

$1.3

Interest expense

(4.2)

(4.7)

Other 0.7 4.2
Total

$(1.7)

$0.8