The St. Joe Co (JOE) Q1 2026 Earnings Call Highlights: Revenue Growth and Strategic ...

This article first appeared on GuruFocus.

Release Date: April 30, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

The St. Joe Co (NYSE:JOE) reported a 5% increase in revenue and an 8% increase in operating income for the first quarter of 2026. Hospitality revenue increased by 13%, contributing to a record $44.7 million in hospitality revenue for the quarter. The company successfully executed a contract with Pulte Group for up to 2,653 home sites, marking Pulte's first entry into the Northwest Florida market. Gross margins improved across all hospitality categories to 24% in Q1 2026, up from 18% in Q1 2025. The company is actively pursuing growth opportunities, including discussions for data center development at Venture Crossings and expanding real estate brokerage locations.

Negative Points

Net income decreased by 21%, primarily due to a decrease in equity and income from unconsolidated joint ventures. Leasing revenue decreased by 10%, attributed to the sale of the Watercrest Senior Living property. The decrease in equity and income was primarily due to lower home closing volumes in the Latitude joint venture. There are ongoing regulatory processes delaying the finalization of the Intercoastal Waterway Marina. The company faces challenges in balancing inventory to meet market demand without overextending capital.

Q & A Highlights

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Q: Can you elaborate on the pace of takedown at Pigeon Creek DSAP? 1,300 home sites is great, but obviously, whether it's over three, five, or 10 years makes a big difference. Also, are there protections in the takedown schedule as it relates to the value of the land? A: George Gonzalez, President, CEO, and Chairman: The pace is set by the market, and Pulte Group plans to offer various product types. We have incorporated lessons learned from past agreements to ensure protections in the takedown schedule.

Q: There was a nice uptick in the RevPAR at the hotels this quarter. Was any of that attributable to the New York City marketing campaign? A: George Gonzalez: The majority of the uptick was organic. We have seen an increase in bookings from the New York City market, likely due to the campaign, but it's still early to fully assess its impact.

Q: With strong national demand for data centers driven by AI, have you considered or pursued marketing positions of venture crossing enterprise center for data center development? A: George Gonzalez: We have had discussions with potential users for data center development at Venture Crossings. We are considering options like ground leases for recurring revenue or potential sales, depending on various factors.

Story Continues

Q: Can you provide additional color on the brokerage revenue, either by county, average transaction value, or number of transactions? A: George Gonzalez: We are pleased with the commencement of our real estate brokerage agency, which started in Watercolor Town Center and expanded to Watertown Town Center. We plan to open three more locations and will have more data after a full year of operations.

Q: What is the expected timeline for starting to realize revenue from home sites at Pigeon Creek and also Southwood? A: George Gonzalez: For Pigeon Creek, we expect closings and revenue realization in early 2027. In Southwood, we sell tracts with master infrastructure to home builders and are in ongoing discussions with potential buyers.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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