SEC Filing | The St. Joe Company

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Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2023


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission file number: 1-10466

The St. Joe Company

(Exact name of registrant as specified in its charter)


Florida	59-0432511
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

130 Richard Jackson Boulevard, Suite 200
Panama City Beach, Florida	32407
(Address of principal executive offices)	(Zip Code)

(850) 231-6400

(Registrant’s telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:


Title of Each Class	Trading Symbol(s)	Name of Exchange on Which Registered
Common Stock, no par value	JOE	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES ☑ NO ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). YES ☑ NO ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ☐ NO ☑

As of April 24, 2023, there were 58,372,040 shares of common stock, no par value, outstanding.

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THE ST. JOE COMPANY

INDEX


	Page No.
PART I
Item 1. Financial Statements (Unaudited)	3
Condensed Consolidated Balance Sheets - March 31, 2023 and December 31, 2022	3
Condensed Consolidated Statements of Income - Three Months Ended March 31, 2023 and 2022	5
Condensed Consolidated Statements of Comprehensive Income - Three Months Ended March 31, 2023 and 2022	6
Condensed Consolidated Statements of Changes in Stockholders’ Equity - Three Months Ended March 31, 2023 and 2022	7
Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2023 and 2022	8
Notes to the Condensed Consolidated Financial Statements	10
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	44
Item 3. Quantitative and Qualitative Disclosures About Market Risk	71
Item 4. Controls and Procedures	72
PART II
Item 1. Legal Proceedings	72
Item 1A. Risk Factors	72
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	72
Item 3. Defaults Upon Senior Securities	72
Item 4. Mine Safety Disclosures	72
Item 5. Other Information	72
Item 6. Exhibits	73
SIGNATURES	74

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

THE ST. JOE COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)


	March 31,		December 31,
	2023		2022
ASSETS
Investment in real estate, net	$	1,026,286	$	996,261
Investment in unconsolidated joint ventures		55,457		50,025
Cash and cash equivalents		57,152		37,747
Investments - debt securities		22,814		40,576
Other assets		57,660		61,729
Property and equipment, net of accumulated depreciation of $67,673 and $67,133 as of March 31, 2023 and December 31, 2022, respectively		42,414		39,638
Investments held by special purpose entities		204,476		204,863
Total assets	$	1,466,259	$	1,430,839
LIABILITIES AND EQUITY
Liabilities:
Debt, net	$	420,689	$	385,860
Other liabilities		96,139		94,371
Deferred revenue		40,860		38,936
Deferred tax liabilities, net		78,256		82,706
Senior Notes held by special purpose entity		177,932		177,857
Total liabilities		813,876		779,730

Commitments and contingencies (Note 18)

Equity:
Common stock, no par value; 180,000,000 shares authorized; 58,372,040 and 58,335,541 issued and outstanding at March 31, 2023 and December 31, 2022, respectively		270,169		270,028
Retained earnings		362,897		358,344
Accumulated other comprehensive income		2,073		2,430
Total stockholders’ equity		635,139		630,802
Non-controlling interest		17,244		20,307
Total equity		652,383		651,109
Total liabilities and equity	$	1,466,259	$	1,430,839

See accompanying notes to the condensed consolidated financial statements.

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THE ST. JOE COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

The following presents the portion of the condensed consolidated balances attributable to the Company’s consolidated joint ventures, which, as of March 31, 2023 and December 31, 2022, include the Pier Park North joint venture (“Pier Park North JV”), Pier Park Crossings LLC (“Pier Park Crossings JV”), Origins Crossings, LLC (“Watersound Origins Crossings JV”), SJWCSL, LLC (“Watercrest JV”), Watersound Closings & Escrow, LLC (“Watersound Closings JV”), Pier Park Crossings Phase II LLC (“Pier Park Crossings Phase II JV”), Mexico Beach Crossings, LLC (“Mexico Beach Crossings JV”), Pier Park Resort Hotel, LLC (“Pier Park Resort Hotel JV”), the 30A Greenway Hotel, LLC (“The Lodge 30A JV”), Panama City Timber Finance Company, LLC and Northwest Florida Timber Finance, LLC. See Note 2. Summary of Significant Accounting Policies. Basis of Presentation and Principles of Consolidation and Note 4. Joint Ventures for additional information. The following assets may only be used to settle obligations of the consolidated joint ventures and the following liabilities are only obligations of the consolidated joint ventures and do not have recourse to the general credit of the Company, except for covenants and guarantees discussed in Note 9. Debt, Net.


	March 31,		December 31,
	2023		2022
ASSETS
Investment in real estate, net	$	275,886	$	272,395
Cash and cash equivalents		10,616		7,353
Other assets		13,600		16,804
Property and equipment, net		10,410		7,219
Investments held by special purpose entities		204,476		204,863
Total assets	$	514,988	$	508,634
LIABILITIES
Debt, net	$	268,231	$	243,447
Other liabilities		12,217		18,834
Deferred revenue		321		234
Senior Notes held by special purpose entity		177,932		177,857
Total liabilities	$	458,701	$	440,372

See accompanying notes to the condensed consolidated financial statements.

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THE ST. JOE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except per share amounts)

(Unaudited)


	Three Months Ended
	March 31,
	2023		2022
Revenue:
Real estate revenue	$	35,004	$	36,774
Hospitality revenue		24,499		16,321
Leasing revenue		11,790		8,822
Timber revenue		1,698		2,954
Total revenue		72,991		64,871
Expenses:
Cost of real estate revenue		20,182		15,295
Cost of hospitality revenue		22,927		14,868
Cost of leasing revenue		5,372		3,652
Cost of timber revenue		163		150
Corporate and other operating expenses		5,721		5,656
Depreciation, depletion and amortization		7,322		5,026
Total expenses		61,687		44,647
Operating income		11,304		20,224
Other income (expense):
Investment income, net		2,921		2,300
Interest expense		(6,209)		(4,153)
Gain on contributions to unconsolidated joint ventures		530		482
Equity in income (loss) from unconsolidated joint ventures		3,663		(495)
Other income (expense), net		713		(369)
Total other income (expense), net		1,618		(2,235)
Income before income taxes		12,922		17,989
Income tax expense		(3,441)		(4,536)
Net income		9,481		13,453
Net loss (income) attributable to non-controlling interest		909		(41)
Net income attributable to the Company	$	10,390	$	13,412

NET INCOME PER SHARE ATTRIBUTABLE TO THE COMPANY
Basic	$	0.18	$	0.23
Diluted	$	0.18	$	0.23

WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		58,309,093		58,882,549
Diluted		58,309,093		58,886,931

See accompanying notes to the condensed consolidated financial statements.

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THE ST. JOE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

(Unaudited)


	Three Months Ended
	March 31,
	2023		2022
Net income:	$	9,481	$	13,453
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale investments		227		(322)
Interest rate swaps		(582)		2,308
Interest rate swap - unconsolidated joint venture		(37)		313
Reclassification of net realized (gain) loss included in earnings		(360)		147
Total before income taxes		(752)		2,446
Income tax benefit (expense)		121		(445)
Total other comprehensive (loss) income, net of tax		(631)		2,001
Total comprehensive income, net of tax		8,850		15,454
Total comprehensive loss (income) attributable to non-controlling interest		1,183		(733)
Total comprehensive income attributable to the Company	$	10,033	$	14,721

See accompanying notes to the condensed consolidated financial statements.

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THE ST. JOE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Dollars in thousands)

(Unaudited)



	Common Stock						Accumulated Other
	Outstanding				Retained		Comprehensive		Non-controlling
	Shares		Amount		Earnings		Income (Loss)		Interest		Total
Balance at December 31, 2022	58,335,541	$	270,028	$	358,344	$	2,430	$	20,307	$	651,109
Capital contributions from non-controlling interest	—		—		—		—		214		214
Capital distributions to non-controlling interest	—		—		—		—		(2,094)		(2,094)
Issuance of restricted stock	36,499		—		—		—		—		—
Stock based compensation expense	—		141		—		—		—		141
Dividends ($0.10 per share)	—		—		(5,837)		—		—		(5,837)
Other comprehensive loss, net of tax	—		—		—		(357)		(274)		(631)
Net income (loss)	—		—		10,390		—		(909)		9,481
Balance at March 31, 2023	58,372,040	$	270,169	$	362,897	$	2,073	$	17,244	$	652,383



	Common Stock						Accumulated Other
	Outstanding				Retained		Comprehensive		Non-controlling
	Shares		Amount		Earnings		(Loss) Income		Interest		Total
Balance at December 31, 2021	58,882,549	$	296,873	$	310,925	$	(389)	$	18,691	$	626,100
Capital contributions from non-controlling interest	—		—		—		—		2,035		2,035
Capital distributions to non-controlling interest	—		—		—		—		(710)		(710)
Issuance of restricted stock	25,594		—		—		—		—		—
Stock based compensation expense	—		42		—		—		—		42
Dividends ($0.10 per share)	—		—		(5,889)		—		—		(5,889)
Other comprehensive income, net of tax	—		—		—		1,309		692		2,001
Net income	—		—		13,412		—		41		13,453
Balance at March 31, 2022	58,908,143	$	296,915	$	318,448	$	920	$	20,749	$	637,032

See accompanying notes to the condensed consolidated financial statements.

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THE ST. JOE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)


	Three Months Ended
	March 31,
	2023		2022
Cash flows from operating activities:
Net income	$	9,481	$	13,453
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		7,322		5,026
Stock based compensation		141		42
Unrealized gain on investments, net		—		(25)
Equity in (income) loss from unconsolidated joint ventures, net of distributions		(2,432)		528
Deferred income tax (benefit) expense		(4,328)		2,042
Cost of real estate sold		19,072		14,064
Expenditures for and acquisition of real estate to be sold		(25,557)		(25,937)
Accretion income and other		(414)		(259)
Gain on disposal of property and equipment		(3)		(10)
Gain on contributions to unconsolidated joint ventures		(530)		(482)
Gain on insurance for damage to property and equipment, net		—		(723)
Loss on extinguishment of debt		133		—
Changes in operating assets and liabilities:
Other assets		3,925		8,427
Deferred revenue		1,399		1,133
Other liabilities		10,963		2,534
Net cash provided by operating activities		19,172		19,813
Cash flows from investing activities:
Expenditures for operating property		(42,372)		(51,633)
Expenditures for property and equipment		(1,659)		(1,440)
Proceeds from the disposition of assets		9		10
Proceeds from insurance claims		—		723
Purchases of investments - debt securities		(9,766)		(74,476)
Maturities of investments - debt securities		28,000		45,000
Capital contributions to unconsolidated joint ventures		(1,893)		(142)
Capital distributions from unconsolidated joint ventures		75		206
Maturities of assets held by special purpose entities		415		413
Net cash used in investing activities		(27,191)		(81,339)
Cash flows from financing activities:
Capital contributions from non-controlling interest		214		2,035
Capital distributions to non-controlling interest		(2,094)		(710)
Dividends paid		(5,832)		(5,889)
Borrowings on debt		81,446		35,168
Principal payments for debt		(45,938)		(536)
Principal payments for finance leases		(34)		(35)
Debt issuance costs		(862)		(1,105)
Net cash provided by financing activities		26,900		28,928
Net increase (decrease) in cash, cash equivalents and restricted cash		18,881		(32,598)
Cash, cash equivalents and restricted cash at beginning of the period		45,303		74,400
Cash, cash equivalents and restricted cash at end of the period	$	64,184	$	41,802

See accompanying notes to the condensed consolidated financial statements.

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THE ST. JOE COMPANY

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

(Dollars in thousands)

(Unaudited)

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the amounts shown in the condensed consolidated statements of cash flows.



	March 31,		March 31,
	2023		2022
Cash and cash equivalents	$	57,152	$	33,115
Restricted cash included in other assets		7,032		8,687
Total cash, cash equivalents and restricted cash shown in the accompanying condensed consolidated statements of cash flows	$	64,184	$	41,802

Restricted cash includes amounts reserved as a requirement of financing and development for certain of the Company’s projects.


	Three Months Ended
	March 31,
		2023	2022
Cash paid during the period for:
Interest, net of amounts capitalized	$	8,117	$	5,692
Income taxes	$	—	$	—

Non-cash investing and financing activities:
Non-cash contributions to unconsolidated joint ventures	$	(1,249)	$	(831)
Decrease in Community Development District debt, net	$	(141)	$	(15)
Transfers of operating property to property and equipment	$	4,121	$	4,960
(Decrease) increase in expenditures for operating properties and property and equipment financed through accounts payable	$	(4,595)	$	1,070
Unrealized (loss) gain on cash flow hedges	$	(705)	$	2,621

See notes to the condensed consolidated financial statements.

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THE ST. JOE COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, unless otherwise stated)

(Unaudited)

1. Nature of Operations

The St. Joe Company together with its consolidated subsidiaries (“St. Joe” or the “Company”) is a Florida real estate development, asset management and operating company with all of its real estate assets and operations in Northwest Florida. Approximately 86% of the Company’s real estate is located in Florida’s Bay, Gulf, and Walton counties. Approximately 90% of the Company’s real estate land holdings are located within fifteen miles of the Gulf of Mexico.

The Company conducts primarily all of its business in the following three reportable segments: 1) residential, 2) hospitality and 3) commercial. See Note 17. Segment Information.

2. Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its majority-owned and controlled subsidiaries, voting interest entities where the Company has a majority voting interest or control and variable interest entities where the Company deems itself the primary beneficiary. Investments in joint ventures (“JV”) in which the Company is not the primary beneficiary, or a voting interest entity where the Company does not have a majority voting interest or control, but has significant influence are unconsolidated and accounted for by the equity method. All significant intercompany transactions and balances have been eliminated in consolidation. The December 31, 2022 condensed consolidated balance sheet amounts have been derived from the Company’s December 31, 2022 audited consolidated financial statements. Certain prior period amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on the Company’s previously reported total assets and liabilities, stockholders’ equity or net income. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2023.

A variable interest entity (“VIE”) is an entity in which a controlling financial interest may be achieved through arrangements that do not involve voting interests. A VIE is required to be consolidated by its primary beneficiary, which is the entity that possesses the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to the VIE. The Company consolidates VIEs when it is the primary beneficiary of the VIE. The Company continues to evaluate whether it is the primary beneficiary as needed when assessing reconsideration events. See Note 4. Joint Ventures.

The unaudited interim condensed consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for fair presentation of the information contained herein. The unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. The Company adheres to the same accounting policies in preparation of its unaudited interim condensed consolidated financial statements as the Company’s December 31, 2022 annual financial statements, except for any recently adopted accounting pronouncements. As required under GAAP, interim accounting for certain expenses, including income taxes, are based on full year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual income tax rates.

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Concentration of Risks and Uncertainties

All of the Company’s real estate assets are concentrated in Northwest Florida. Uncertain economic conditions could have an adverse impact on the Company’s operations and asset values.

Throughout the first quarter of 2023, the Company continued to generate positive financial results. While macroeconomic factors such as inflation, rising interest rates, supply chain disruptions, financial institution disruptions and geopolitical conflicts, among other things, have created economic headwinds and impacted buyer sentiment, demand across the Company’s segments remains strong. The Company believes this is primarily the result of the continued growth of Northwest Florida, which the Company attributes to the region’s high quality of life, natural beauty and outstanding amenities, as well as the evolving flexibility in the workplace.

Despite the strong demand across the Company’s segments, the Company also continues to feel the impact from the aforementioned macroeconomic factors, including supply chain disruptions which have extended homesite and home deliveries in certain residential communities and extended the time to complete hospitality and commercial projects. In addition, inflation and rising interest rates, have increased operating costs and loan rates, as compared to prior periods. The Company generally has not seen a material increase in cancellation rates, and therefore the impact relates primarily to the timing of revenue recognition. In addition, while rising interest rates have negatively impacted buyers’ ability to obtain financing and the housing market generally, homebuilders have performed on their contractual obligations with the Company.

Given our diverse portfolio of residential holdings, the mix of sales and pricing from different communities may also impact revenue and margins period over period.

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investments, other receivables, investments held by special purpose entity or entities (“SPE”) and investments in retained interests. The Company deposits and invests cash with local, regional and national financial institutions, and as of March 31, 2023, these balances exceeded the amount of F.D.I.C. insurance provided on such deposits. In addition, as of March 31, 2023, the Company had $29.8 million invested in short-term U.S. Treasury Bills and $6.3 million invested in U.S. Treasury Money Market Funds classified as cash and cash equivalents and $22.8 million invested in U.S. Treasury Bills classified as investments – debt securities.

Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the Company by the basic weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income attributable to the Company by the weighted average number of shares of common stock outstanding for the period, including potential dilutive common shares. The treasury stock method is used to determine the effect on diluted earnings. For the three months ended March 31, 2023 and 2022, the Company had 57,923 and 25,594, respectively, unvested shares of restricted stock. For the three months ended March 31, 2023, 57,923 potentially dilutive common shares were excluded from the calculation of diluted income per share, since the effect would have been anti-dilutive based on the application of the treasury stock method. See Note 14. Stockholders’ Equity for additional information related to the issuance of common stock for employee compensation.

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The computation of basic and diluted earnings per share are as follows:


	Three Months Ended March 31,
	2023		2022

	(Dollars in thousands except per share amounts)
Income
Net income attributable to the Company	$	10,390	$	13,412

Shares
Weighted average shares outstanding - basic		58,309,093		58,882,549
Incremental shares from restricted stock		—		4,382
Weighted average shares outstanding - diluted		58,309,093		58,886,931

Net income per share attributable to the Company
Basic income per share	$	0.18	$	0.23
Diluted income per share	$	0.18	$	0.23

Recently Adopted Accounting Pronouncements

There were no recently adopted accounting pronouncements which would have a material effect on the Company’s financial condition, results of operations and cash flows.

Recently Issued Accounting Pronouncements

Leases Common Control Arrangements

In March 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-01, Leases (Topic 842): Common Control Arrangements that improves accounting guidance for arrangements between entities under common control. The new guidance requires that leasehold improvements associated with common control leases be amortized by the lessee over the useful life of the leasehold improvements to the common control group, as long as the lessee controls the use of the underlying asset through a lease. When the lessee no longer controls the use of the underlying asset the leasehold improvements are accounted for as a transfer between entities under common control through an adjustment to equity. The new guidance will be effective for fiscal years beginning after December 15, 2023, with early adoption permitted. The guidance can be applied prospectively to all new leasehold improvements recognized on or after adoption, prospectively to all new leasehold improvements recognized on or after adoption and any remaining unamortized balance of existing leasehold improvements amortized over their remaining useful life to the common control group, or retrospectively to the beginning of the period in which the entity first applied Leases Topic 842 through a cumulative-effect adjustment to the opening balance of retained earnings. The Company is currently evaluating the impact that the adoption of this guidance will have on its financial condition, results of operations and cash flows.

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“Topic 848”): Facilitation of the Effects of Reference Rate Reform on Financial Reporting that provides temporary optional guidance to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The guidance provides expedients and exceptions for applying GAAP to contract modifications and hedging relationships affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or another reference rate that is expected to be discontinued due to reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) which clarifies the original guidance that certain optional expedients and exceptions in contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) - Deferral of the Sunset Date of Topic 848 that extends the temporary reference rate reform guidance under Topic 848 from December 31, 2022 to December 31, 2024. This guidance was effective upon issuance and may be applied prospectively through December 31, 2024, as reference rate activities occur. In 2022 and

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2023, some of the Company’s debt agreements that referenced LIBOR were amended to an alternative rate, Topic 848 was applied at the time of these modifications and there was no impact on the Company’s financial condition, results of operations and cash flows. There is no current additional impact to the Company from this guidance and the Company will consider the impact on its financial condition, results of operations and cash flows when there are additional modifications to existing agreements.

3. Investment in Real Estate, Net

Investment in real estate, net, excluding unconsolidated JVs, by property type and segment includes the following:


	March 31,		December 31,
	2023		2022
Development property:
Residential	$	168,591	$	171,504
Hospitality		191,143		200,209
Commercial		144,321		131,133
Other		3,647		3,618
Total development property		507,702		506,464

Operating property:
Residential		7,899		7,854
Hospitality		244,795