ST JOE Co
For the period ended Sep 30, 2025. Filed Oct 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 29, 2025
JOE$69.97+0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-23.
0001558370-25-009454
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
0001104659-25-103742
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 193 previous paragraphs and 201 current paragraphs.
94 unchanged; 78 reworded; 24 added; 17 removed; 4 previous and 5 current paragraphs rearranged.
Tables are not compared: 67 previous and 68 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (24)
Current report
Commercial and Forestry Real Estate Revenue and Gross Profit. During the three months ended September 30, 2025, we had four commercial and forestry real estate sales totaling approximately 12 acres for $44.1 million, resulting in a gross profit of $21.6 million (or gross margin of 49.0%). The commercial and forestry real estate sales during the three months ended September 30, 2025, included the sale of the Watercrest JV’s senior living
Current report
community property for $41.0 million, resulting in a gross margin of approximately 47.2%. The sale of the Watercrest JV’s property did not meet the definition of a business under ASC Topic 805, as substantially all of the fair value of the assets sold were concentrated in a single group of assets. We determined the sale represents the sale of goods to a customer that are an output of our ordinary activities, which includes real estate sales, and therefore would be recognized in accordance with ASC Topic 606 and recognize revenue and costs of revenue. See Note 4.Joint Ventures for additional information. During the three months ended September 30, 2024, we had three commercial and forestry real estate sales totaling approximately 25 acres for $7.3 million, resulting in a gross profit of $4.1 million (or gross margin of approximately 56.2%).
Current report
During the nine months ended September 30, 2025, we had eleven commercial and forestry real estate sales totaling approximately 155 acres for $50.6 million, resulting in a gross profit of $26.3 million (or gross margin of 52.0%). The commercial and forestry real estate sales during the nine months ended September 30, 2025, included the sale of the Watercrest JV’s senior living community property for $41.0 million, resulting in a gross margin of approximately 47.2% and a property used in hospitality operations for $1.4 million. See Note 4.Joint Ventures for additional information. During the nine months ended September 30, 2024, we had six commercial and forestry real estate sales totaling approximately 268 acres for $9.4 million, resulting in a gross profit of $5.8 million (or gross margin of 61.7%).
Current report
Timber Revenue and Gross Profit. Timber revenue increased $0.2 million, or 28.6%, to $0.9 million during the three months ended September 30, 2025, as compared to $0.7 million in the same period in 2024. The increase was primarily due to product mix, an increase in tons of wood products sold and higher sales prices in the current period. There were 56,000 tons of wood products sold at an average price per ton of $15.35 during the three months ended September 30, 2025, as compared to 45,000 tons of wood products sold at an average price per ton of $13.35, during the same period in 2024. Timber gross margin was 77.8% during the three months ended September 30, 2025, as compared to 71.4% during the same period in 2024. The increase was primarily due to product mix, more tons of wood products sold and higher sales prices in the current period.
Current report
Timber revenue increased $0.5 million, or 17.2%, to $3.4 million during the nine months ended September 30, 2025, as compared to $2.9 million in the same period in 2024. The increase was primarily due to product mix, an increase in tons of wood products sold and higher sales prices in the current period. There were 191,000 tons of wood products sold at an average price per ton of $16.45 during the nine months ended September 30, 2025, as compared to 186,000 tons of wood products sold at an average price per ton of $14.21, during the same period in 2024. Timber gross margin was 82.4% during the nine months ended September 30, 2025, as compared to 79.3% during the same period in 2024. The increase was primarily due to product mix, more tons of wood products sold and higher sales prices in the current period.
Current report
Leasing revenue increased $1.1 million, or 7.1%, to $16.7 million during the three months ended September 30, 2025, as compared to $15.6 million in the same period in 2024. The increase was primarily due to additional commercial property leases, as well as other leases. Leasing gross margin increased to 55.7% during the three months ended September 30, 2025, as compared to 50.0% during the same period in 2024. The increase in leasing gross margin was primarily due to additional leases in the current period.
Current report
Corporate and other operating expenses increased $0.9 million to $6.9 million during the three months ended September 30, 2025, as compared to $6.0 million in the same period in 2024. Corporate and other operating expenses increased $1.0 million to $19.9 million during the nine months ended September 30, 2025, as compared to $18.9 million in the same period in 2024. The increase in corporate and other operating expenses was due to increased operating costs, primarily related to property taxes and owner association costs.
Current report
Investment income, net for the three and nine months ended September 30, 2025 and 2024, decreased $0.4 million and $0.6 million, respectively, primarily due to lower yields on our cash, cash equivalents and other investments in the current period. The decrease was also due to less interest earned on the unimproved land contribution to our unconsolidated Latitude Margaritaville Watersound JV related to the decreased volume of home sales transacted in the community during the current period. See Note 4.Joint Ventures for additional information.
Current report
Other Income (Expense), Net
Current report
Gain (loss) on disposition of assets during the three and nine months ended September 30, 2025, primarily includes a gain on the sale of our N850J aircraft previously used in hospitality operations. Gain (loss) on disposition of assets during the nine months ended September 30, 2024, primarily includes loss on disposal of hospitality assets.
Current report
Miscellaneous expense, net during the three and nine months ended September 30, 2025, primarily includes loss on early extinguishment of debt related to the payoff of the Watercrest JV Loan, as well as fees related to other loans.
Current report
The increase of $0.4 million in depreciation, depletion and amortization expense during the three months ended September 30, 2025, as compared to the same period in 2024, was primarily due to new assets placed in service, partially offset by assets sold in the current period.
Current report
Other income (expense), net, during the three months ended September 30, 2025, primarily includes a gain on the sale of our N850J aircraft previously used in hospitality operations.
Current report
The increase of $1.4 million in depreciation, depletion and amortization expense during the nine months ended September 30, 2025, as compared to the same period in 2024, was primarily due to new assets placed in service, partially offset by assets sold in the current period.
Current report
Other income (expense), net, during the nine months ended September 30, 2025, primarily includes a gain on the sale of our N850J aircraft previously used in hospitality operations.
Current report
Timber revenue increased $0.2 million, or 28.6%, to $0.9 million during the three months ended September 30, 2025, as compared to $0.7 million during the same period in 2024. The increase was primarily due to product mix, an increase in tons of wood product sold and higher sales prices in the current period. There were 56,000 tons of wood products sold at an average price per ton of $15.35 during the three months ended September 30, 2025, as compared to 45,000 tons of wood products sold at an average price per ton of $13.35, during the same period in 2024. Timber gross margin was 77.8% during the three months ended September 30, 2025, as compared to 71.4% during the same period in 2024. The increase was primarily due to product mix, more tons of wood products sold and higher sales prices in the current period.
Current report
The decrease of $0.5 million in depreciation, depletion and amortization expense during the three months ended September 30, 2025, as compared to the same period in 2024, was primarily due to assets sold in the current period.
Current report
Other expense, net during the three months ended September 30, 2025, increased $0.4 million as compared to the same period in 2024, primarily due to loss on early extinguishment of debt related to the payoff of the Watercrest JV Loan. See Note 8.Debt, Net for additional information.
Current report
Timber revenue increased $0.5 million, or 17.2%, to $3.4 million during the nine months ended September 30, 2025, as compared to $2.9 million during the same period in 2024. The increase was primarily due to product mix, an increase in in tons of wood product sold and higher sales prices in the current period. There were 191,000 tons of wood products sold at an average price per ton of $16.45 during the nine months ended September 30, 2025, as compared to 186,000 tons of wood products sold at an average price per ton of $14.21, during the same period in 2024. Timber gross margin was 82.4% during the nine months ended September 30, 2025, as compared to 79.3% during the same period in 2024. The increase was primarily due to product mix, more tons of wood products sold and higher sales prices in the current period.
Current report
The increase of $0.1 million in depreciation, depletion and amortization expense during the nine months ended September 30, 2025, as compared to the same period in 2024, was primarily due to new assets placed in service, partially offset by assets sold in the current period.
Current report
Other expense, net during the nine months ended September 30, 2025, increased $0.5 million as compared to the same period in 2024, primarily due loss on early extinguishment of debt related to the payoff of the Watercrest JV Loan. See Note 8.Debt, Net for additional information.
Current report
In 2015, the Pier Park North JV entered into a $48.2 million loan, secured by a first lien on, and Security Interest in, a majority of the Pier Park North JV’s property. In September 2025, The PPN JV Loan was refinanced, which increased the principal amount of the loan from $39.5 million to $40.0 million and fixed the interest rate to 6.1%. The refinanced loan provides for monthly payments of principal and interest beginning in November 2025, with a final balloon payment at maturity in October 2035. As of September 30, 2025 and December 31, 2024, $40.0 million and $40.4 million,
Current report
respectively, was outstanding on the PPN JV Loan. The loan may not be prepaid prior to October 2029. Commencing in October 2029 through May 2035, any principal prepaid is subject to a prepayment fee equal to the greater of (i) a prepayment ratio, as outlined in the loan agreement, or (ii) 1% of the amount prepaid. From June 2035 through maturity, the loan may be prepaid without a prepayment fee upon prior written notice. In connection with the loan, we entered into a limited guarantee in favor of the lender with respect to environmental indemnity matters and specified non-recourse carveouts outlined in the loan agreement. During the nine months September 30, 2025, we incurred $0.3 million of loan costs due to the refinance. See Note 8.Debt, Net for additional information.
Current report
During each of the three months ended September 30, 2025 and 2024, we paid dividends of $0.14, per share on our common stock for a total of $8.1 million and $8.2 million, respectively. During the nine months ended September 30, 2025 and 2024, we paid dividends of $0.42 and $0.38, respectively, per share on our common stock for a total of $24.4 million and $22.2 million, respectively.
Removed paragraphs (17)
Previous report
Commercial and Forestry Real Estate Revenue and Gross Profit. During the three months ended June 30, 2025, we had five commercial and forestry real estate sales totaling approximately 11 acres for $3.3 million, resulting in a gross profit of $1.6 million (or gross margin of 48.5%), which included the sale of a property used in hospitality operations for $1.4 million. During the three months ended June 30, 2024, we had a commercial and forestry real estate sale totaling
Previous report
approximately 168 acres for $0.7 million, with de minimis cost of revenue resulting in a gross profit margin of approximately 100.0%.
Previous report
During the six months ended June 30, 2025, we had seven commercial and forestry real estate sales totaling approximately 144 acres for $6.5 million, resulting in a gross profit of $4.7 million (or gross margin of 72.3%), which included the sale of a property used in hospitality operations for $1.4 million. During the six months ended June 30, 2024, we had three commercial and forestry real estate sales totaling approximately 243 acres for $2.1 million, resulting in a gross profit of $1.8 million (or gross margin of 85.7%).
Previous report
Timber Revenue and Gross Profit. Timber revenue increased $0.2 million, or 18.2%, to $1.3 million during the three months ended June 30, 2025, as compared to $1.1 million in the same period in 2024. There were 62,000 tons of wood products sold at an average price per ton of $19.64 during the three months ended June 30, 2025, as compared to 67,000 tons of wood products sold at an average price per ton of $14.09, during the same period in 2024. Timber gross margin was 84.6% during the three months ended June 30, 2025, as compared to 72.7% during the same period in 2024. The increase was primarily due to higher prices in the current period.
Previous report
Timber revenue increased $0.2 million, or 8.7%, to $2.5 million during the six months ended June 30, 2025, as compared to $2.3 million in the same period in 2024. There were 135,000 tons of wood products sold at an average price per ton of $16.90 during the six months ended June 30, 2025, as compared to 142,000 tons of wood products sold at an average price per ton of $14.48, during the same period in 2024. Timber gross margin was 84.0% during the six months ended June 30, 2025, as compared to 82.6% during the same period in 2024. The increase was primarily due to higher prices in the current period.
Previous report
Leasing revenue increased $1.7 million, or 11.5%, to $16.5 million during the three months ended June 30, 2025, as compared to $14.8 million in the same period in 2024. The increase was primarily due to additional commercial property leases, as well as other leases. Leasing gross margin increased to 53.9% during the three months ended June 30, 2025, as compared to 50.7% during the same period in 2024. The increase in leasing gross margin was primarily due to additional leases in the current period.
Previous report
Corporate and other operating expenses increased $0.5 million to $6.4 million during the three months ended June 30, 2025, as compared to $5.9 million in the same period in 2024. Corporate and other operating expenses were comparable for the six months ended June 30, 2025 and 2024.
Previous report
Investment income, net for the three and six months ended June 30, 2025 and 2024 were comparable.
Previous report
Other Expense, Net
Previous report
Other expense, net for the three and six months ended June 30, 2025 and 2024 were comparable.
Previous report
The increase of $0.6 million in depreciation, depletion and amortization expense during the three months ended June 30, 2025, as compared to the same period in 2024, was primarily due to new properties placed in service.
Previous report
The increase of $1.1 million in depreciation, depletion and amortization expense during the six months ended June 30, 2025, as compared to the same period in 2024, was primarily due to new properties placed in service.
Previous report
Timber revenue increased $0.2 million, or 18.2%, to $1.3 million during the three months ended June 30, 2025, as compared to $1.1 million during the same period in 2024. The increase was primarily due to an increase in prices in the current period. There were 62,000 tons of wood products sold at an average price per ton of $19.64 during the three months ended June 30, 2025, as compared to 67,000 tons of wood products sold at an average price per ton of $14.09, during the same period in 2024. Timber gross margin was 84.6% during the three months ended June 30, 2025, as compared to 72.7% during the same period in 2024. The increase was primarily due to higher prices in the current period.
Previous report
Timber revenue increased $0.2 million, or 8.7%, to $2.5 million during the six months ended June 30, 2025, as compared to $2.3 million during the same period in 2024. The increase was primarily due to an increase in prices in the current period. There were 135,000 tons of wood products sold at an average price per ton of $16.90 during the six months ended June 30, 2025, as compared to 142,000 tons of wood products sold at an average price per ton of $14.48, during the same period in 2024. Timber gross margin was 84.0% during the six months ended June 30, 2025, as compared to 82.6% during the same period in 2024. The increase was primarily due to higher prices in the current period.
Previous report
The increase of $0.5 million in depreciation, depletion and amortization expense during the six months ended June 30, 2025, as compared to the same period in 2024, was primarily due to new properties placed in service.
Previous report
In 2015, the Pier Park North JV entered into a $48.2 million loan. As of June 30, 2025 and December 31, 2024, $39.8 million and $40.4 million, respectively, was outstanding on the PPN JV Loan. The loan accrues interest at a rate of 4.1% per annum and matures in November 2025. In connection with the loan, we entered into a limited guarantee in favor of the lender, based on our percentage ownership of the JV. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation by the Pier Park North JV; any voluntary transfer or encumbrance of the property in violation of the due-on-sale clause in the security instrument; upon commencement of voluntary bankruptcy or insolvency proceedings and upon breach of covenants in the security instrument. See Note 8.Debt, Net for additional information. We are in the process of refinancing the PPN JV Loan.
Previous report
In 2019, the Watercrest JV entered into a $22.5 million loan. As of June 30, 2025 and December 31, 2024, $19.3 million and $19.6 million, respectively, was outstanding on the Watercrest JV Loan. The loan bears interest at a rate of SOFR plus 2.2% and matures in June 2047. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Watercrest JV Loan. Our liability as guarantor under the loan has been reduced to 50% of the outstanding principal balance, which requires the borrower to maintain certain debt service coverage requirements. We are the sole guarantor and receive a quarterly fee related to the guarantee from our JV partner based on the JV partner’s ownership percentage. See Note 8.Debt, Net for additional information.
Reworded paragraphs (78)
Previous wording
Highlights for the second quarter of 2025 compared to the second quarter of 2024 include:
Current wording
Highlights for the third quarter of 2025 compared to the third quarter of 2024 include:
Previous wording
Throughout the first six months of 2025, we continued to generate positive financial results. While macroeconomic factors such as uncertainty over tariffs, inflation, elevated interest rates and higher insurance costs for consumers and overall consumer confidence, among other things, continued to produce economic headwinds and impacted buyer sentiment, demand across our segments remains strong. We believe this is primarily due to the continued growth of Northwest Florida as a result of increased migration, which we attribute to the region’s high quality of life, natural beauty and outstanding amenities.
Current wording
While macroeconomic factors such as uncertainty over tariffs, inflation, elevated interest rates and higher insurance costs for consumers and overall consumer confidence, among other things, continued to produce economic headwinds and impacted buyer sentiment in many parts of the country, our segments continued to generate positive financial results through the first nine months of 2025. We believe this is primarily due to the continued growth of Northwest Florida as a result of net migration, which we attribute to the region’s high quality of life, natural beauty and outstanding amenities.
Previous wording
Despite the strong demand across our segments, we also continue to feel the impact from the aforementioned macroeconomic factors. While elevated interest rates and higher insurance costs have negatively impacted buyers’ ability to obtain financing and the housing market generally, the impact has been offset by the net migration into our markets, limited housing supply relative to demand and the number of cash buyers. Market conditions have also not caused an increase in cancellation rates as homebuilders have continued to perform on their contractual obligations with us.
Current wording
While elevated interest rates, market conditions in their home states and higher insurance costs have negatively impacted or delayed the ability of some buyers to obtain financing or sell their existing home in their home state, the impact has been partially offset by the net migration into our markets and the number of cash buyers. Market conditions have also not caused an increase in cancellation rates as homebuilders have continued to perform on their contractual obligations with us.
Previous wording
The residential segment generates revenue from sales of homesites, homes and other residential land and certain homesite residuals from homebuilder sales that provide us a percentage of the sale price of the completed home if the home price exceeds a negotiated threshold. Revenue is recognized at the point in time when a sale is closed and title and control have been transferred to the buyer. The residential segment also generates revenue from the sale of tap and impact fee credits, marketing fees and other fees on certain transactions. Certain homesite residuals and other revenue
Current wording
The residential segment generates revenue from sales of homesites, homes and other residential land and certain homesite residuals from homebuilder sales that provide us a percentage of the sale price of the completed home if the home price exceeds a negotiated threshold. Revenue is recognized at the point in time when a sale is closed and title and control have been transferred to the buyer. The residential segment also generates revenue from the sale of tap and impact fee credits, marketing fees and other fees on certain transactions. Certain homesite residuals and other revenue related to homebuilder homesite sales are recognized in revenue at the point in time of the closing of the sale. The
Previous wording
related to homebuilder homesite sales are recognized in revenue at the point in time of the closing of the sale. The residential segment incurs costs from direct costs (e.g., development and construction costs), selling costs and other indirect costs.
Current wording
residential segment incurs costs from direct costs (e.g., development and construction costs), selling costs and other indirect costs.
Previous wording
The Latitude Margaritaville Watersound community is a planned 55+ active adult residential community in Bay County, Florida. The community is located near the Intracoastal Waterway with convenient access to the Northwest Florida Beaches International Airport. The community is being developed through our unconsolidated Latitude Margaritaville Watersound JV with our partner Minto Communities USA, a homebuilder and community developer, and is estimated to include approximately 3,500 residential homes, which are being developed in smaller increments of discrete neighborhoods. As of June 30, 2025, the unconsolidated Latitude Margaritaville Watersound JV had completed 1,992 home sale transactions of the total estimated 3,500 homes planned in the community and had 216 homes under contract, which are expected to result in a sales value to the JV of approximately $129.4 million at closing of the homes. See Note 4.Joint Ventures for additional information.
Current wording
The Latitude Margaritaville Watersound community is a planned 55+ active adult residential community in Bay County, Florida. The community is located near the Intracoastal Waterway with convenient access to the Northwest Florida Beaches International Airport. The community is being developed through our unconsolidated Latitude Margaritaville Watersound JV with our partner Minto Communities USA, a homebuilder and community developer, and is estimated to include approximately 3,500 residential homes, which are being developed in smaller increments of discrete neighborhoods. As of September 30, 2025, the unconsolidated Latitude Margaritaville Watersound JV had completed 2,074 home sale transactions of the total estimated 3,500 homes planned in the community and had 205 homes under contract, which are expected to result in a sales value to the JV of approximately $123.1 million at closing of the homes. See Note 4.Joint Ventures for additional information.
Previous wording
As of June 30, 2025, we had nineteen different homebuilders within our residential communities. As of June 30, 2025, we had 1,209 residential homesites under contract, which are expected to result in revenue of approximately $121.7 million, plus residuals, at closing of the homesites over the next several years. By comparison, as of June 30, 2024, we had 1,303 residential homesites under contract, with an expected revenue of approximately $114.0 million, plus residuals. The change in homesites under contract is due to homesite transactions since the end of the prior period, new contracts and the amount of remaining homesites in current phases of the residential communities. Homesite prices vary significantly by community and often sell in concentrated transactions that may impact period over period results. As of June 30, 2025, in addition to the 1,209 homesites under contract in other residential communities, our unconsolidated Latitude Margaritaville Watersound JV had 216 homes under contract, which together with the 1,209 homesites are expected to result in a sales value of approximately $251.2 million at closing of the homesites and homes.
Current wording
As of September 30, 2025, we had nineteen different homebuilders within our residential communities. As of September 30, 2025, we had 1,992 residential homesites under contract, which are expected to result in revenue of approximately $146.2 million, plus residuals, at closing of the homesites over the next several years. By comparison, as of September 30, 2024, we had 1,381 residential homesites under contract, with an expected revenue of approximately $122.3 million, plus residuals. The change in homesites under contract is due to homesite transactions since the end of the prior period, new contracts, including a long-term contract totaling approximately 650 undeveloped homesites within the SouthWood community, and the amount of remaining homesites in current phases of the residential communities. Homesite prices vary significantly by community and often sell in concentrated transactions that may impact period over period results. As of September 30, 2025, in addition to the 1,992 homesites under contract in other residential communities, our unconsolidated Latitude Margaritaville Watersound JV had 205 homes under contract, which together with the 1,992 homesites are expected to result in a sales value of approximately $269.3 million at closing of the homesites and homes.
Previous wording
Our commercial segment includes leasing of commercial property, multi-family, senior living, self-storage and other assets. The commercial segment also oversees the planning, development, entitlement, management and sale of our commercial and forestry land holdings for a variety of uses, including a broad range of retail, office, hotel, senior living, multi-family, self-storage and industrial properties. We believe the diversity of our commercial segment complements the growth of our residential and hospitality segments. We provide development opportunities for national, regional and local retailers and other strategic partners in Northwest Florida. We own and manage retail shopping centers and develop commercial parcels. We are currently developing the Watersound Town Center in Walton County, Florida and Watersound West Bay Center in Bay County, Florida. These lifestyle centers are complementary to the Watersound Origins, Watersound Origins West and Latitude Margaritaville Watersound residential communities. In conjunction with Florida State University (“FSU”) and Tallahassee Memorial Hospital (“TMH”), we are in the process of developing an 87-acre medical campus in Panama City Beach, Florida, the first building of which opened in July 2024. We have large land holdings near the Pier Park retail center, adjacent to the Northwest Florida Beaches International Airport, near or within business districts in the region and along major roadways. We lease land for various other uses. The commercial segment manages our timber holdings in Northwest Florida which includes growing and selling pulpwood, sawtimber and other products.
Current wording
Our commercial segment includes leasing of commercial property, multi-family, self-storage and other assets, as well as senior living prior to the sale of the Watercrest JV’s senior living community property in September 2025. See Note 4.Joint Ventures for additional information. The commercial segment also oversees the planning, development, entitlement, management and sale of our commercial and forestry land holdings for a variety of uses, including a broad range of retail, office, hotel, senior living, multi-family, self-storage and industrial properties. We believe the diversity of our commercial segment complements the growth of our residential and hospitality segments. We provide development opportunities for national, regional and local retailers and other strategic partners in Northwest Florida. We own and manage retail shopping centers and develop commercial parcels. We are currently developing the Watersound Town Center in Walton County, Florida and Watersound West Bay Center in Bay County, Florida. These lifestyle centers are complementary to the Watersound Origins, Watersound Origins West and Latitude Margaritaville Watersound
Previous wording
As of June 30, 2025, our leasing portfolio consists of approximately 1,177,000 square feet of leasable space for mixed-use, retail, industrial, office, self-storage and medical uses. Through separate unconsolidated JVs, other commercial properties that are operated by our JV partners include a 124-room TownePlace Suites by Marriott, a 121-room Residence Inn, a Busy Bee branded fuel station and convenience store, which includes a Starbucks, and a golf cart sales and service facility, all located in Bay County, Florida.
Current wording
As of September 30, 2025, our leasing portfolio consists of approximately 1,173,000 square feet of leasable space for mixed-use, retail, industrial, office, self-storage and medical uses. Through separate unconsolidated JVs, other commercial properties that are operated by our JV partners include a 124-room TownePlace Suites by Marriott, a 121-room Residence Inn, a Busy Bee branded fuel station and convenience store, which includes a Starbucks, and a golf cart sales and service facility, all located in Bay County, Florida.
Previous wording
The total net rentable square feet and percentage leased of leasing properties are as follows:
Current wording
The total net leasable square feet and percentage leased of leasing properties are as follows:
Previous wording
Critical accounting policies that we believe reflect our more significant judgments and estimates used in the preparation of our condensed consolidated financial statements are set forth in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in these policies during the first six months of 2025, however we cannot assure you that these policies will not change in the future.
Current wording
Critical accounting policies that we believe reflect our more significant judgments and estimates used in the preparation of our condensed consolidated financial statements are set forth in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024. There have been no significant changes in these policies during the first nine months of 2025, however we cannot assure you that these policies will not change in the future.
Previous wording
Residential Real Estate Revenue and Gross Profit. During the three months ended June 30, 2025, residential real estate revenue increased $6.4 million, or 20.2%, to $38.1 million, as compared to $31.7 million during the same period in 2024. During the three months ended June 30, 2025, residential real estate gross profit increased $1.1 million to $17.0 million (or gross margin of 44.6%), as compared to $15.9 million (or gross margin of 50.2%) during the same period in 2024. During the three months ended June 30, 2025, we sold 225 homesites and 10 homes, compared to 186 homesites during the same period in 2024. During the three months ended June 30, 2025 and 2024, the average base revenue, excluding homesite residuals, per homesite sold was approximately $122,000 and $140,000, respectively, due to the mix of sales from different communities. The revenue, gross profit and margin for each period was impacted by the difference in pricing among the communities, the difference in the cost of the homesite development and the volume of sales within each of the communities. The number of homesites sold varied each period due to the timing of homebuilder contractual closing obligations in our residential communities.
Current wording
Residential Real Estate Revenue and Gross Profit. During the three months ended September 30, 2025, residential real estate revenue increased $17.8 million, or 93.7%, to $36.8 million, as compared to $19.0 million during the same period in 2024. During the three months ended September 30, 2025, residential real estate gross profit increased $11.3 million to $18.8 million (or gross margin of 51.1%), as compared to $7.5 million (or gross margin of 39.5%) during the same period in 2024. During the three months ended September 30, 2025, we sold 189 homesites and 8 homes, compared to 179 homesites during the same period in 2024. During the three months ended September 30, 2025 and 2024, the average base revenue, excluding homesite residuals, per homesite sold was approximately $150,000 and $86,000, respectively, due to the mix of sales from different communities. The revenue, gross profit and margin for each period was impacted by the difference in pricing among the communities, the difference in the cost of the homesite development and the volume of sales within each of the communities. The number of homesites sold varied each period due to the timing of homebuilder contractual closing obligations in our residential communities.
Previous wording
During the six months ended June 30, 2025, residential real estate revenue increased $8.5 million, or 13.6%, to $71.0 million, as compared to $62.5 million during the same period in 2024. During the six months ended June 30, 2025, residential real estate gross profit increased $0.2 million to $31.9 million (or gross margin of 44.9%), as compared to $31.7 million (or gross margin of 50.7%) during the same period in 2024. During the six months ended June 30, 2025, we sold 474 homesites and 10 homes, compared to 402 homesites during the same period in 2024. During the six months ended June 30, 2025 and 2024, the average base revenue, excluding homesite residuals, per homesite sold was approximately $118,000 and $128,000, respectively, due to the mix of sales from different communities. The revenue, gross profit and margin for each period was impacted by the difference in pricing among the communities, the difference in the cost of the homesite development and the volume of sales within each of the communities. The number of homesites sold varied each period due to the timing of homebuilder contractual closing obligations in our residential communities.
Current wording
During the nine months ended September 30, 2025, residential real estate revenue increased $26.2 million, or 32.1%, to $107.7 million, as compared to $81.5 million during the same period in 2024. During the nine months ended September 30, 2025, residential real estate gross profit increased $11.6 million to $50.7 million (or gross margin of 47.1%), as compared to $39.1 million (or gross margin of 48.0%) during the same period in 2024. During the nine months ended September 30, 2025, we sold 663 homesites and 18 homes, compared to 581 homesites during the same period in 2024. During the nine months ended September 30, 2025 and 2024, the average base revenue, excluding homesite residuals, per homesite sold was approximately $127,000 and $115,000, respectively, due to the mix of sales from different communities. The revenue, gross profit and margin for each period was impacted by the difference in pricing among the communities, the difference in the cost of the homesite development and the volume of sales within each of the communities. The number of homesites sold varied each period due to the timing of homebuilder contractual closing obligations in our residential communities.
Previous wording
Other Revenue. Other revenue primarily consists of title insurance and real estate brokerage business revenue and mitigation bank credit sales.
Current wording
Other Revenue. Other revenue primarily consists of our real estate brokerage, title insurance agency and insurance agency business revenue and mitigation bank credit sales. Other revenue increased $1.0 million and $1.4 million during the three and nine months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily due to our real estate brokerage business, which began operations in the second quarter of 2025.
Previous wording
Hospitality revenue increased $6.5 million, or 10.4%, to $68.8 million during the three months ended June 30, 2025, as compared to $62.3 million in the same period in 2024. The increase in hospitality revenue was primarily related to the increase in membership dues and membership ancillary spend as well as The Third golf course, which opened in November 2024 and the renovated Shark’s Tooth clubhouse, which reopened in February 2025. The increase in revenue was also related to an increase in hotel operations, due to the timing of holidays and school breaks. Hospitality gross margin decreased to 38.5% during the three months ended June 30, 2025, compared to 39.2% during the same period in 2024. The decrease in gross margin during the current period was primarily due to ongoing operating costs for The Third golf course and the Shark’s Tooth clubhouse.
Current wording
Hospitality revenue increased $5.2 million, or 9.4%, to $60.6 million during the three months ended September 30, 2025, as compared to $55.4 million in the same period in 2024. The increase in hospitality revenue was primarily related to the increase in membership dues and membership ancillary spend as well as The Third golf course, which opened in November 2024 and the renovated Shark’s Tooth clubhouse, which reopened in February 2025. The increase in revenue was also related to an increase in hotel operations. Hospitality gross margin was 34.5% during the three months ended September 30, 2025, comparable to 34.1% during the same period in 2024.
Previous wording
was also related to an increase in hotel operations, due to the timing of holidays and school breaks. As of June 30, 2025, Watersound Club had 3,551 members, compared with 3,571 members as of June 30, 2024, a net decrease of 20 members. As of both June 30, 2025 and 2024, we had 1,053 operational hotel rooms (excluding 245 hotel rooms related to unconsolidated JVs). Hospitality gross margin decreased to 31.1% during the six months ended June 30, 2025, compared to 32.9% during the same period in 2024. The decrease in gross margin was primarily due to ongoing operating costs for The Third golf course and reopening and ongoing operating costs of the Shark’s Tooth clubhouse during the current period.
Current wording
Hospitality revenue increased $12.0 million, or 7.6%, to $169.0 million during the nine months ended September 30, 2025, as compared to $157.0 million in the same period in 2024. The increase in hospitality revenue was primarily related to the increase in membership dues and membership ancillary spend as well as The Third golf course, which opened in November 2024 and the renovated Shark’s Tooth clubhouse, which reopened in February 2025. The increase in revenue was also related to an increase in hotel operations. As of September 30, 2025, Watersound Club had 3,578 members, compared with 3,532 members as of September 30, 2024, a net increase of 46 members. As of both September 30, 2025 and 2024, we had 1,053 operational hotel rooms (excluding 245 hotel rooms related to unconsolidated JVs). Hospitality gross margin decreased to 32.4% during the nine months ended September 30, 2025, compared to 33.3% during the same period in 2024. The decrease in gross margin was primarily due to ongoing operating costs for The Third golf course and reopening and ongoing operating costs of the Shark’s Tooth clubhouse during the current period.
Previous wording
Leasing revenue increased $3.7 million, or 12.7%, to $32.8 million during the six months ended June 30, 2025, as compared to $29.1 million in the same period in 2024. The increase was primarily due to additional commercial property and marina leases, as well as other leases. Leasing gross margin increased to 54.3% during the six months ended June 30, 2025, as compared to 50.2% during the same period in 2024. The increase in leasing gross margin was primarily due to additional leases in the current period.
Current wording
Leasing revenue increased $4.7 million, or 10.5%, to $49.4 million during the nine months ended September 30, 2025, as compared to $44.7 million in the same period in 2024. The increase was primarily due to additional commercial property and marina leases, as well as other leases. Leasing gross margin increased to 54.7% during the nine months ended September 30, 2025, as compared to 50.3% during the same period in 2024. The increase in leasing gross margin was primarily due to additional leases in the current period.
Previous wording
Depreciation, depletion and amortization expense increased $0.7 million and $1.6 million during the three and six months ended June 30, 2025, respectively, as compared to the same periods in 2024, primarily due to new hospitality and commercial assets placed in service. Depreciation is a non-cash, GAAP expense which is amortized over an asset’s useful life, while maintenance and repair expenses are period costs and expensed as incurred.
Current wording
Depreciation, depletion and amortization expense were comparable during the three months ended September 30, 2025 and 2024. Depreciation, depletion and amortization expense increased $1.5 million during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to new hospitality and commercial assets placed in service, partially offset by assets sold in the current period. Depreciation is a non-cash, GAAP expense which is amortized over an asset’s useful life, while maintenance and repair expenses are period costs and expensed as incurred.
Previous wording
Interest expense decreased $0.7 million, or 8.2%, to $7.8 million during the three months ended June 30, 2025, as compared to $8.5 million in the same period in 2024. Interest expense decreased $1.6 million, or 9.4%, to $15.5 million during the six months ended June 30, 2025, as compared to $17.1 million in the same period in 2024. The decrease in interest expense is primarily due to repayment of project financing and a decrease in interest rates from the prior period. See Note 8.Debt, Net and Note 15.Other Income, Net for additional information regarding project financing.
Current wording
Interest expense decreased $0.6 million, or 7.1%, to $7.8 million during the three months ended September 30, 2025, as compared to $8.4 million in the same period in 2024. Interest expense decreased $2.2 million, or 8.6%, to $23.3 million during the nine months ended September 30, 2025, as compared to $25.5 million in the same period in 2024. The decrease in interest expense is primarily due to repayment of project financing and a decrease in interest rates from the prior period. See Note 8.Debt, Net and Note 15.Other Income, Net for additional information regarding project financing.
Previous wording
Other expense, net primarily includes other income and expense items as detailed in the table below:
Current wording
Other income (expense), net primarily includes other income and expense items as detailed in the table below:
Previous wording
Income tax expense was $9.9 million during the three months ended June 30, 2025, as compared to $8.3 million during the same period in 2024. Our effective tax rate was 25.0% for the three months ended June 30, 2025, as compared to 25.3% during the same period in 2024.
Current wording
Income tax expense was $13.7 million during the three months ended September 30, 2025, as compared to $6.4 million during the same period in 2024. Our effective tax rate was 25.5% for the three months ended September 30, 2025, as compared to 27.6% during the same period in 2024.
Previous wording
Income tax expense was $15.8 million during the six months ended June 30, 2025, as compared to $13.0 million during the same period in 2024. Our effective tax rate was 25.3% for the six months ended June 30, 2025, as compared to 25.2% during the same period in 2024.
Current wording
Income tax expense was $29.5 million during the nine months ended September 30, 2025, as compared to $19.3 million during the same period in 2024. Our effective tax rate was 25.4% for the nine months ended September 30, 2025, as compared to 25.9% during the same period in 2024.
Previous wording
Our effective rate for the three and six months ended June 30, 2025 and 2024, differed from the federal statutory rate of 21.0% primarily due to state income taxes, tax credits, nontaxable or nondeductible and other differences. See Note 11.Income Taxes for additional information.
Current wording
Our effective rate for the three and nine months ended September 30, 2025 and 2024, differed from the federal statutory rate of 21.0% primarily due to state income taxes, tax credits, nontaxable or nondeductible and other differences. See Note 11.Income Taxes for additional information.
Previous wording
Homesites. Revenue from homesite sales increased $2.0 million, or 7.1%, during the three months ended June 30, 2025, as compared to the same period in 2024, primarily due to the mix and number of homesites sold per community and the timing of homebuilder contractual closing obligations in our residential communities. During the three months ended June 30, 2025 and 2024, the average base revenue, excluding homesite residuals, per homesite sold was approximately $122,000 and $140,000, respectively, due to the mix of sales from different communities. Revenue includes estimated homesite residuals of $1.2 million and $0.5 million during the three months ended June 30, 2025 and 2024, respectively. The increase in estimated homesite residuals was due to the mix and number of homesites sold in specific communities during the current period. Gross margin decreased to 45.9% during the three months ended June 30, 2025, as compared to 52.3% during the same period in 2024, primarily due to the cost, mix and number of homesites sold from different communities during each respective period. Gross margin may vary each period depending on the location of homesite sales.
Current wording
Homesites. Revenue from homesite sales increased $13.6 million, or 80.5%, during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to the mix and number of homesites sold per community and the timing of homebuilder contractual closing obligations in our residential communities. During the three months ended September 30, 2025 and 2024, the average base revenue, excluding homesite residuals, per homesite sold was approximately $150,000 and $86,000, respectively, due to the mix of sales from different communities. Revenue includes estimated homesite residuals of $0.9 million during the three months ended September 30, 2025. Revenue does not include any estimated homesite residuals during the three months ended September 30, 2024. The increase in estimated homesite residuals was due to the mix and number of homesites sold in specific communities during the current period. Gross margin increased to 53.4% during the three months ended September 30, 2025, as compared to 39.1% during the same period in 2024, primarily due to the cost, mix and number of homesites sold from different communities during each respective period. Gross margin may vary each period depending on the location of homesite sales.
Previous wording
Homes. During the three months ended June 30, 2025, we sold ten completed townhomes within our Watersound Origins community for a total of $5.5 million, resulting in a gross profit margin of 36.4%.
Current wording
Homes. During the three months ended September 30, 2025, we sold eight completed townhomes within our Watersound Origins community for a total of $4.3 million, resulting in a gross margin of 37.2%.
Previous wording
Other revenue includes tap and impact fee credits sold, marketing fees and other fees. Other revenue includes estimated fees related to homebuilder homesite sales of $0.5 million and $0.9 million, during the three months ended June 30, 2025 and 2024, respectively.
Current wording
Other revenue includes tap and impact fee credits sold, marketing fees and other fees. Other revenue includes estimated fees related to homebuilder homesite sales of $0.5 million and $0.6 million, during the three months ended September 30, 2025 and 2024, respectively.
Previous wording
Investment income, net primarily consists of interest earned on the unimproved land contribution to our unconsolidated Latitude Margaritaville Watersound JV as home sales are transacted in the community. See Note 4.Joint Ventures for additional information. Interest expense primarily consists of interest incurred on our portion of the total outstanding CDD debt. See Note 8.Debt, Net for additional information.
Current wording
Investment income, net primarily consists of interest earned on the unimproved land contribution to our unconsolidated Latitude Margaritaville Watersound JV as home sales are transacted in the community. Investment income, net decreased $0.3 million during the three months ended September 30, 2025, as compared to the same period in 2024, due to fewer home sales transacted in the community during the current period. See Note 4.Joint Ventures for additional information. Interest expense primarily consists of interest incurred on our portion of the total outstanding CDD debt. See Note 8.Debt, Net for additional information.
Previous wording
Equity in income from unconsolidated joint ventures includes our proportionate share of earnings or losses of an unconsolidated JV accounted for using the equity method. Equity in income from unconsolidated joint ventures increased $1.9 million during the three months ended June 30, 2025, as compared to the same period in 2024. The increase was due to a higher average sales price and margin per home sold, partially offset by the decreased volume of home sale transactions during the current period related to our unconsolidated Latitude Margaritaville Watersound JV. The Latitude Margaritaville Watersound JV completed 137 home sale transactions during the three months ended June 30, 2025, compared to 163 home sale transactions during the same period in 2024. See Note 4.Joint Venturesfor additional information.
Current wording
Equity in income from unconsolidated joint ventures includes our proportionate share of earnings or losses of an unconsolidated JV accounted for using the equity method. Equity in income from unconsolidated joint ventures decreased $3.5 million during the three months ended September 30, 2025, as compared to the same period in 2024. The decrease was primarily due to the decreased volume of home sale transactions, partially offset by higher average sales price and margin per home sold during the current period related to our unconsolidated Latitude Margaritaville Watersound JV. The Latitude Margaritaville Watersound JV completed 82 home sale transactions during the three months ended September 30, 2025, compared to 189 home sale transactions during the same period in 2024. See Note 4.Joint Venturesfor additional information.
Previous wording
Homesites. Revenue from homesite sales increased $3.6 million, or 6.3%, during the six months ended June 30, 2025, as compared to the same period in 2024, primarily due to the mix and number of homesites sold per community and the timing of homebuilder contractual closing obligations in our residential communities. During the six months ended June 30, 2025 and 2024, the average base revenue, excluding homesite residuals, per homesite sold was approximately $118,000 and $128,000, respectively, due to the mix of sales from different communities. Revenue includes estimated homesite residuals of $2.4 million and $2.6 million during the six months ended June 30, 2025 and 2024, respectively. The decrease in estimated homesite residuals was due to the mix and number of homesites sold in specific communities during the current period. Gross margin decreased to 45.6% during the six months ended June 30, 2025, as compared to 51.1% during the same period in 2024, primarily due to the cost, mix and number of homesites sold from different communities during each respective period. Gross margin may vary each period depending on the location of homesite sales.
Current wording
Homesites. Revenue from homesite sales increased $17.3 million, or 23.4%, during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to the mix and number of homesites sold per community and the timing of homebuilder contractual closing obligations in our residential communities. During the nine months ended September 30, 2025 and 2024, the average base revenue, excluding homesite residuals, per homesite sold was approximately $127,000 and $115,000, respectively, due to the mix of sales from different communities. Revenue includes estimated homesite residuals of $3.3 million and $2.6 million during the nine months ended September 30, 2025 and 2024, respectively. The increase in estimated homesite residuals was due to the mix and number of homesites sold in specific communities during the current period. Gross margin was 48.3% during the nine months ended September 30, 2025, comparable to the same period in 2024. Gross margin may vary each period depending on the location of homesite sales.
Previous wording
Homes. During the six months ended June 30, 2025, we sold ten completed townhomes within our Watersound Origins community for a total of $5.5 million, resulting in a gross profit margin of 36.4%.
Current wording
Homes. During the nine months ended September 30, 2025, we sold eighteen completed townhomes within our Watersound Origins community for a total of $9.8 million, resulting in a gross margin of 36.7%.
Previous wording
Other revenue includes tap and impact fee credits sold, marketing fees and other fees. Other revenue includes estimated fees related to homebuilder homesite sales of $1.0 million and $1.6 million, during the six months ended June 30, 2025 and 2024, respectively.
Current wording
Other revenue includes tap and impact fee credits sold, marketing fees and other fees. Other revenue includes estimated fees related to homebuilder homesite sales of $1.5 million and $2.2 million, during the nine months ended September 30, 2025 and 2024, respectively.
Previous wording
Investment income, net primarily consists of interest earned on the unimproved land contribution to our unconsolidated Latitude Margaritaville Watersound JV as home sales are transacted in the community. See Note 4.Joint Ventures for additional information. Interest expense primarily consists of interest incurred on our portion of the total outstanding CDD debt. See Note 8.Debt, Net for additional information.
Current wording
Investment income, net primarily consists of interest earned on the unimproved land contribution to our unconsolidated Latitude Margaritaville Watersound JV as home sales are transacted in the community. Investment income, net decreased $0.2 million during the nine months ended September 30, 2025, as compared to the same period in 2024, due to fewer home sales transacted in the community during the current period. See Note 4.Joint Ventures for additional information. Interest expense primarily consists of interest incurred on our portion of the total outstanding CDD debt. See Note 8.Debt, Net for additional information.
Previous wording
Equity in income from unconsolidated joint ventures includes our proportionate share of earnings or losses of an unconsolidated JV accounted for using the equity method. Equity in income from unconsolidated joint ventures increased $6.3 million during the six months ended June 30, 2025, as compared to the same period in 2024. The increase
Current wording
Equity in income from unconsolidated joint ventures includes our proportionate share of earnings or losses of an unconsolidated JV accounted for using the equity method. Equity in income from unconsolidated joint ventures
Previous wording
was due to a higher average sales price and margin per home sold, partially offset by the decreased volume of home sale transactions during the current period related to our unconsolidated Latitude Margaritaville Watersound JV. The Latitude Margaritaville Watersound JV completed 329 home sale transactions during the six months ended June 30, 2025, compared to 340 home sale transactions during the same period in 2024. See Note 4.Joint Venturesfor additional information.
Current wording
increased $2.8 million during the nine months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily due to a higher average sales price and margin per home sold, partially offset by the decreased volume of home sale transactions during the current period related to our unconsolidated Latitude Margaritaville Watersound JV. The Latitude Margaritaville Watersound JV completed 411 home sale transactions during the nine months ended September 30, 2025, compared to 529 home sale transactions during the same period in 2024. See Note 4.Joint Venturesfor additional information.
Previous wording
Revenue from our clubs increased $3.6 million, or 16.7%, during the three months ended June 30, 2025, as compared to the same period in 2024. The increase in revenue was due to an increase in membership dues, membership ancillary spend, lodging related to the Camp Creek Inn, as well as The Third golf course, which opened in November 2024 and the renovated Shark’s Tooth clubhouse, which reopened in February 2025. Our clubs gross margin was 43.3% during the three months ended June 30, 2025, compared to 44.9% during the same period in 2024. The decrease in gross margin during the current period was primarily due to ongoing operating costs for The Third golf course and the Shark’s Tooth clubhouse.
Current wording
Revenue from our clubs increased $2.9 million, or 14.3%, during the three months ended September 30, 2025, as compared to the same period in 2024. The increase in revenue was due to an increase in membership dues, membership ancillary spend, lodging related to the Camp Creek Inn, as well as The Third golf course, which opened in November 2024 and the renovated Shark’s Tooth clubhouse, which reopened in February 2025. Our clubs gross margin was 42.7% during the three months ended September 30, 2025, compared to 43.3% during the same period in 2024. The decrease in gross margin during the current period was primarily due to ongoing operating costs for The Third golf course and the Shark’s Tooth clubhouse.
Previous wording
Revenue from our hotel operations increased $2.4 million, or 6.6%, during the three months ended June 30, 2025, as compared to the same period in 2024. Our hotels gross margin was 37.5% for the three months ended June 30, 2025, compared to 36.7% during the same period in 2024. The increase in revenue and gross margin was primarily due to the timing of holidays and school breaks.
Current wording
Revenue from our hotel operations increased $1.9 million, or 6.1%, during the three months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily related to lodging revenue, as well as guest ancillary spend. Our hotels gross margin was 30.9% for the three months ended September 30, 2025, comparable to 29.9% during the same period in 2024.
Previous wording
Revenue from other hospitality operations increased $0.5 million, or 11.9%, during the three months ended June 30, 2025, as compared to the same period in 2024, primarily due to an increase in revenue related to marina operations. Our other hospitality operations gross margin was 21.3% during the three months ended June 30, 2025, compared to 31.0% during the same period in 2024. The decrease in gross margin was due to increased operational costs during the current period.
Current wording
Revenue from other hospitality operations increased $0.4 million, or 10.8%, during the three months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in revenue related to our standalone restaurants and marina operations. Our other hospitality operations gross margin was 17.1% during the three months ended September 30, 2025, compared to 18.9% during the same period in 2024. The decrease in gross margin was due to increased operational costs during the current period.
Previous wording
Revenue from our clubs increased $4.2 million, or 10.3%, during the six months ended June 30, 2025, as compared to the same period in 2024. The increase in revenue was due to an increase in membership dues, membership ancillary spend, lodging related to the Camp Creek Inn, as well as The Third golf course, which opened in November 2024 and the renovated Shark’s Tooth clubhouse, which reopened in February 2025. As of June 30, 2025, Watersound Club had 3,551 members, compared with 3,571 members as of June 30, 2024, a net decrease of 20 members. Our clubs gross margin was 41.1% during the six months ended June 30, 2025, compared to 43.8% during the same period in 2024. The decrease in gross margin was primarily due to ongoing operating costs for The Third golf course and reopening and ongoing operating costs of the Shark’s Tooth clubhouse during the current period.
Current wording
Revenue from our clubs increased $7.2 million, or 11.8%, during the nine months ended September 30, 2025, as compared to the same period in 2024. The increase in revenue was due to an increase in membership dues, membership ancillary spend, lodging related to the Camp Creek Inn, as well as The Third golf course, which opened in November 2024 and the renovated Shark’s Tooth clubhouse, which reopened in February 2025. As of September 30, 2025, Watersound Club had 3,578 members, compared with 3,532 members as of September 30, 2024, a net increase of 46 members. Our clubs gross margin was 41.6% during the nine months ended September 30, 2025, compared to 44.1% during the same period in 2024. The decrease in gross margin was primarily due to ongoing operating costs for The Third golf course and reopening and ongoing operating costs of the Shark’s Tooth clubhouse during the current period.
Previous wording
Revenue from our hotel operations increased $2.2 million, or 4.0%, during the six months ended June 30, 2025, as compared to the same period in 2024. Our hotels gross margin was 25.4% for the six months ended June 30, 2025, comparable to 25.5% during the same period in 2024.
Current wording
Revenue from our hotel operations increased $4.1 million, or 4.8%, during the nine months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily related to lodging revenue, as well as guest ancillary spend. Our hotels gross margin was 27.5% for the nine months ended September 30, 2025, comparable to 27.4% during the same period in 2024.
Previous wording
Revenue from other hospitality operations increased $0.4 million, or 6.2%, during the six months ended June 30, 2025, as compared to the same period in 2024, primarily due to an increase in revenue related to marina operations. Our other hospitality operations gross margin was 13.0% during the six months ended June 30, 2025, compared to 26.2% during the same period in 2024. The decrease in gross margin was due to increased operational costs during the current period.
Current wording
Revenue from other hospitality operations increased $0.7 million, or 6.9%, during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to an increase in revenue related to our standalone restaurants and marina operations. Our other hospitality operations gross margin was 14.7% during the nine months ended September 30, 2025, compared to 18.6% during the same period in 2024. The decrease in gross margin was due to increased operational costs during the current period.
Showing the first 40 of 78 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
residential communities. In conjunction with Florida State University (“FSU”) and Tallahassee Memorial Hospital (“TMH”), we are in the process of developing an 87-acre medical campus in Panama City Beach, Florida, the first building of which opened in July 2024. We have large land holdings near the Pier Park retail center, adjacent to the Northwest Florida Beaches International Airport, near or within business districts in the region and along major roadways. We lease land for various other uses. The commercial segment manages our timber holdings in Northwest Florida which includes growing and selling pulpwood, sawtimber and other products.
Current report — wording carried from elsewhere
in year four and 25% in year five. We receive a monthly fee related to the guarantee from our JV partner based on the JV partner’s ownership percentage. See Note 8.Debt, Net for additional information.
Current report — wording carried from elsewhere
interest at a rate of SOFR plus 2.1%, with a floor of 3.0% and matures in July 2027. The loan is secured by the real property and certain other Security Interests. See Note 8.Debt, Net for additional information.
Current report — wording carried from elsewhere
Net cash flows used in investing activities primarily include capital expenditures for operating property and property and equipment used in our operations and capital contributions to unconsolidated joint ventures, partially offset by proceeds from the disposition of assets and maturities of assets held by SPEs. During the nine months ended September 30, 2025, net cash used in investing activities was $17.3 million, which included capital expenditures for operating property and property and equipment of $19.8 million, primarily for our commercial and hospitality segments,
Current report — wording carried from elsewhere
We caution you that all forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors, including: our ability to successfully implement our strategic objectives; new or increased competition across our business units; any decline in general economic conditions, particularly in our primary markets; interest rate fluctuations; inflation; higher insurance costs and our ability to obtain adequate insurance coverage for our properties; financial institution disruptions; supply chain disruptions; geopolitical conflicts and political uncertainty and the corresponding impact on the global economy; the imposition of tariffs and uncertainty regarding trade policies; changes in consumer sentiment and confidence that may impact demand across our segments; our ability to successfully execute or integrate new business endeavors and acquisitions; our ability to yield anticipated returns from our developments and projects; our ability to effectively manage our real estate assets, as well as the ability for us or our JV partners to effectively manage the day-to-day activities of our JV projects; our ability to complete construction and development projects within expected timeframes; the interest of prospective guests in our hotels; reductions in travel and other risks inherent to the hospitality industry; the illiquidity of all real estate assets; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of our investment portfolio; any
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Hospitality revenue increased $6.8 million, or 6.7%, to $108.4 million during the six months ended June 30, 2025, as compared to $101.6 million in the same period in 2024. The increase in hospitality revenue was primarily related to the increase in membership dues and membership ancillary spend as well as The Third golf course, which opened in November 2024 and the renovated Shark’s Tooth clubhouse, which reopened in February 2025. The increase in revenue
Previous report — wording carried elsewhere
Real estate revenue during the six months ended June 30, 2025, includes the sale of a hospitality property for $1.4 million, resulting in a gross profit of $0.6 million (or gross margin of 42.9%).
Previous report — wording carried elsewhere
Net cash flows provided by operating activities include net income, adjustments for non-cash items, distribution of earnings from unconsolidated joint ventures, changes in operating assets and liabilities and expenditures related to assets planned to be sold, including developed and undeveloped assets. Adjustments for non-cash items primarily include
Previous report — wording carried elsewhere
We caution you that all forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors, including: our ability to successfully implement our strategic objectives; new or increased competition across our business units; any decline in general economic conditions, particularly in our primary markets; interest rate fluctuations; inflation; higher insurance costs and our ability to obtain adequate insurance coverage