ST JOE Co
For the period ended Mar 31, 2026. Filed Apr 29, 2026.
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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.
Mar 31, 2026 · Filed Apr 29, 2026
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 2025-09-30; filed 2025-10-29.
0001104659-25-103742
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
0001104659-26-051523
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 201 previous paragraphs and 165 current paragraphs.
68 unchanged; 81 reworded; 10 added; 32 removed; 20 previous and 6 current paragraphs rearranged.
Tables are not compared: 68 previous and 66 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 (10)
Current report
In addition to the leased properties above, we have ground leases in various locations of our land holdings.
Current report
Timber Revenue and Gross Profit. Timber revenue decreased $0.3 million, or 25.0%, to $0.9 million during the three months ended March 31, 2026, as compared to $1.2 million in the same period in 2025. There were 52,000 tons of
Current report
wood products sold at an average price per ton of $15.95 during the three months ended March 31, 2026, as compared to 74,000 tons of wood products sold at an average price per ton of $14.61, during the same period in 2025. Timber gross margin was 77.8% during the three months ended March 31, 2026, as compared to 83.3% during the same period in 2025. The decrease in revenue and gross margin was primarily due to product mix and a decrease in tons of wood products sold in the current period.
Current report
Leasing revenue decreased $1.6 million, or 9.8%, to $14.7 million during the three months ended March 31, 2026, as compared to $16.3 million in the same period in 2025. The decrease was primarily due to the sale of Watercrest JV’s senior living community property in September 2025, which ceased operating activities, and the sale of townhomes in the Watersound Villas on the Fairway community since the end of the prior period. The decrease was partially offset by additional commercial property leases. Leasing gross margin increased to 61.2% during the three months ended March 31, 2026, as compared to 54.6% during the same period in 2025. The increase in leasing gross margin was primarily due to additional leases in the current period and the sale of the Watercrest JV’s senior living community property, which operated with lower margins.
Current report
Investment income, net during the three months ended March 31, 2026 and 2025, were comparable.
Current report
Other Expense, Net
Current report
ancillary spend and Camp Creek Inn lodging and ancillary spend. As of March 31, 2026, Watersound Club had 3,647 members, compared with 3,498 members as of March 31, 2025, a net increase of 149 members. Our clubs gross margin was 39.9% during the three months ended March 31, 2026, compared to 38.3% during the same period in 2025. The increase in gross margin was primarily due to stabilization of the Camp Creek Inn and management of operating expenses.
Current report
Timber revenue decreased $0.3 million, or 25.0%, to $0.9 million during the three months ended March 31, 2026, as compared to $1.2 million during the same period in 2025. There were 52,000 tons of wood products sold at an average price per ton of $15.95 during the three months ended March 31, 2026, as compared to 74,000 tons of wood products sold at an average price per ton of $14.61, during the same period in 2025. Timber gross margin was 77.8% during the three months ended March 31, 2026, as compared to 83.3% during the same period in 2025. The decrease in revenue and gross margin was primarily due to product mix and a decrease in tons of wood products sold in the current period.
Current report
The decrease of $0.6 million in depreciation, depletion and amortization expense during the three months ended March 31, 2026, as compared to the same period in 2025, was primarily due to assets sold since the prior period, partially offset by new assets placed in service in the current period.
Current report
As of March 31, 2026, we had a $0.5 million revolving line of credit for credit card usage, maturing in December 2049. As of March 31, 2026, we did not have an outstanding principal balance on the line of credit.
Removed paragraphs (32)
Previous 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%).
Previous 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%).
Previous 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.
Previous 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.
Previous report
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 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.
Previous report
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 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.
Previous report
Other Income (Expense), Net
Previous 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.
Previous report
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 report
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 report
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 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.
Previous 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.
Previous report
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 report
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 report
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.
Previous report
Leasing revenue includes marina boat slip and dry storage rental, as well as leases of other hospitality assets. Leasing revenue increased $0.3 million, or 11.1%, during the nine months ended September 30, 2025, as compared to the same period in 2024, primarily due to increased occupancy at our marinas.
Previous 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.
Previous 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.
Previous report
Total leasing revenue increased $1.0 million, or 6.9%, during the three months ended September 30, 2025, as compared to the same period in 2024. The increase was primarily due to additional commercial property leases, as well as other leases. Total leasing gross margin during the three months ended September 30, 2025 was 58.1%, as compared to 54.5% during the same period in 2024. The increase in leasing gross margin was primarily due to additional leases in the current period.
Previous report
During the three months ended September 30, 2025, we had four commercial and forestry real estate sales of approximately 12 acres for $44.1 million, resulting in a gross margin of approximately 49.0%. The three 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%. 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 of approximately 25 acres for $7.3 million, resulting in a gross margin of approximately 56.2%.
Previous 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.
Previous 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.
Previous report
Equity in loss from unconsolidated joint ventures includes our proportionate share of earnings or losses of unconsolidated JVs accounted for using the equity method. Equity in loss from unconsolidated joint ventures was $1.4 million during the three months ended September 30, 2025, as compared to $1.6 million for the same period in 2024. The three months ended September 30, 2025 and 2024, primarily include lease-up, depreciation and interest expenses related to the Watersound Fountains Independent Living JV’s 148-unit independent senior living community which is currently under lease-up. See Note 4.Joint Venturesfor additional information.
Previous 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.
Previous 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.
Previous 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.
Previous 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.
Previous 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,
Previous report
In 2019, a wholly-owned subsidiary of ours entered into a $5.5 million loan, which is guaranteed by us. As of September 30, 2025 and December 31, 2024, $2.4 million and $5.0 million, respectively, was outstanding on the Beckrich Building III Loan. The loan bears interest at a rate of SOFR plus 1.8% and matures in August 2029. The loan is secured by the real property and certain other Security Interests. See Note 8.Debt, Net for additional information.
Reworded paragraphs (81)
Previous wording
St. Joe is a diversified real estate development, asset management and operating company with all of its real estate assets and operations in Northwest Florida. We intend to use existing assets for residential, hospitality and commercial ventures. We have significant residential and commercial land-use entitlements. We actively seek higher and better uses for our real estate assets through a range of development activities. As part of our core business strategy, we have created a meaningful portion of our business through JVs. We enter into these arrangements for the purposes of developing real estate and other business activities, which we believe allows us to complement our growth strategy, leverage industry expertise and diversify our business. We may also partner with or explore the sale of discrete assets when we and/or others can better deploy resources. We seek to continue to enhance the value of our owned real estate assets by developing residential, commercial and hospitality projects to meet market demand. Approximately 87% of our real estate is located in Florida’s Bay, Gulf, and Walton counties. Approximately 90% of our real estate land holdings are located within fifteen miles of the Gulf.
Current wording
St. Joe is a diversified real estate development, asset management and operating company with all of its real estate assets and operations in Northwest Florida. We intend to use existing assets for residential, hospitality and commercial ventures. We have significant residential and commercial land-use entitlements. We actively seek higher and better uses for our real estate assets through a range of development activities. As part of our core business strategy, we have created a meaningful portion of our business through JVs. We enter into these arrangements for the purposes of developing real estate and other business activities, which we believe allows us to complement our growth strategy, leverage industry expertise and diversify our business. We may partner with or explore the sale of discrete assets, such as our sale of a senior living community property in September 2025, in order to optimize resource allocation and maximize value. See Note 4.Joint Ventures for additional information. We seek to continue to enhance the value of our owned real estate assets by developing residential, hospitality and commercial projects to meet market demand. Approximately 87% of our real estate is located in Florida’s Bay, Gulf, and Walton counties. Approximately 90% of our real estate land holdings are located within fifteen miles of the Gulf.
Previous wording
We believe our present capital structure, liquidity and land provide us with years of opportunities to increase recurring revenue and long-term value for our shareholders. We intend to continue to focus on our core business activity of real estate development, asset management and operations by expanding our portfolio of income producing commercial properties, developing long-term, scalable residential communities and growing our hospitality offerings. We continue to develop a broad range of asset types that we believe will provide acceptable rates of return, grow recurring revenues and support future business. Capital commitments will be funded with cash proceeds from completed projects, existing cash, owned-land, partner capital and financing arrangements. We do not anticipate immediate benefits from investments. Timing of projects may be subject to delays caused by factors beyond our control. We may also choose to operate rather than lease assets, lease rather than sell assets, or sell improved rather than unimproved assets that may delay revenue and profits.
Current wording
We believe our present capital structure, liquidity and land provide us with years of opportunities to increase recurring revenue and long-term value for our shareholders. We intend to continue to focus on our core business activity of real estate development, asset management and operations by developing long-term, scalable residential communities, growing our hospitality offerings and expanding our portfolio of income producing commercial properties. In addition, we operate a real estate brokerage, title insurance agency and insurance agency business. We continue to develop a broad range of asset types that we believe will provide acceptable rates of return, grow recurring revenues and support future business. Capital commitments will be funded with cash proceeds from completed projects, existing cash, owned-land, partner capital and financing arrangements. These investments are made with a long-term value creation perspective. Timing of projects may be subject to delays caused by factors beyond our control. We may also choose to operate rather than lease assets, lease rather than sell assets, or sell improved rather than unimproved land that may delay revenue and profits.
Previous wording
Highlights for the third quarter of 2025 compared to the third quarter of 2024 include:
Current wording
Highlights for the first quarter of 2026 compared to the first quarter of 2025 include:
Previous 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.
Current wording
While macroeconomic factors such as uncertainty over tariffs, inflation, geopolitical conflicts, 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 quarter of 2026. 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
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.
Current wording
Elevated interest rates, market conditions in home states, and higher insurance costs have negatively impacted or delayed the ability of some buyers to obtain financing or sell their existing homes in their home states. The negative impact has been partially offset by the net migration into our markets and the number of cash buyers. In addition, we have not experienced an increase in cancellation rates as homebuilders have continued to perform on their contractual obligations with us.
Previous wording
Our residential segment typically plans and develops residential communities of various sizes across a wide range of price points and sells homesites to homebuilders or retail consumers. Our residential segment also evaluates opportunities to enter into JV agreements for specific communities such as Latitude Margaritaville Watersound.
Current wording
Our residential segment primarily plans and develops residential communities of various sizes across a wide range of price points and sells homesites to homebuilders or retail consumers. Our residential segment also evaluates opportunities to enter into JV agreements for specific communities such as Latitude Margaritaville Watersound.
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 related to homebuilder homesite sales are recognized in revenue at the point in time of the closing of the sale. The
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
Previous wording
Our residential segment includes the Watersound Origins, Watersound Origins West, Watersound Camp Creek, Breakfast Point East, Titus Park, Bayside at Ward Creek, Breakwater at Ward Creek, Salt Grass at Ward Creek, College Station, Park Place, Salt Creek at Mexico Beach, and WindMark Beach communities, which are large scale, multi-phase communities with current development activity, sales activity or future phases. Homesites in these communities are developed based on market demand and sold primarily to homebuilders and on a limited basis to retail customers.
Current wording
Our residential segment includes the Bayside at Ward Creek, Breakfast Point East, Breakwater at Ward Creek, College Station, Park Place, Salt Creek at Mexico Beach, Salt Grass at Ward Creek, Titus Park, Watersound Camp Creek, Watersound Origins, Watersound Origins West and WindMark Beach communities, which are large scale, multi-phase communities with current development activity, sales activity or future phases. Homesites in these communities are developed based on market demand and sold primarily to homebuilders and on a limited basis to retail customers.
Previous wording
The East Lake Creek, East Lake Powell, Lake Powell, Pigeon Creek, Teachee, West Bay Creek and West Laird communities have phases of homesites in preliminary planning or permitting. Homesites in these communities will be developed based on market demand.
Current wording
The East Lake Creek, East Lake Powell, Lake Powell, Pigeon Creek, Teachee, West Bay Creek and West Laird projects have phases of homesites in preliminary planning or permitting. Homesites in these projects will be developed based on market demand.
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 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.
Current wording
The Latitude Margaritaville Watersound community is a 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 3,700 residential homes, which are being developed in smaller increments of discrete neighborhoods. As of March 31, 2026, the unconsolidated Latitude Margaritaville Watersound JV had completed 2,273 home sale transactions of the total estimated 3,700 homes planned in the community and had 158 homes under contract, which are expected to result in a sales value to the JV of approximately $93.5 million at closing of the homes. See Note 4.Joint Ventures for additional information.
Previous 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.
Current wording
As of March 31, 2026, we had eighteen different homebuilders within our residential communities. As of March 31, 2026, we had 3,204 residential homesites under contract, which include 1,326 homesites within the Pigeon Creek project, which is structured to include significant variable revenue due to its long-term nature. In addition, as of March 31, 2026, we had approximately 647 entitled but undeveloped homesites within the SouthWood community under contract. Excluding the Pigeon Creek project and SouthWood community contracts due to their scale and timing, the remaining 1,231 residential homesites under contract are expected to result in revenue of approximately $119.9 million, plus residuals, at closing of the homesites over the next several years. By comparison, as of March 31, 2025, we had 952 residential homesites under contract, with an expected revenue of approximately $94.4 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.
Previous wording
Our hospitality segment features a private membership club (the “Watersound Club”), hotel operations, food and beverage operations, golf courses, beach clubs, retail outlets, gulf-front vacation rentals, marinas and other entertainment assets. The hospitality segment generates revenue from membership sales, golf courses, lodging at our hotels, short-term vacation rentals, food and beverage operations, merchandise sales, marina operations (including boat slip rentals, boat storage fees and fuel sales), other resort and entertainment activities and beach clubs, which includes food and beverage operations of the WaterColor Beach Club. Hospitality revenue is generally recognized at the point in time services are provided and represent a single performance obligation with a fixed transaction price. Hospitality revenue recognized over time includes non-refundable club membership initiation fees, club membership dues and other membership fees. The hospitality segment incurs costs from the services and goods provided, personnel costs, maintenance of the facilities and holding costs of the assets. From time to time, we may explore the sale of certain hospitality properties, the development of new hospitality properties, as well as new entertainment and management opportunities. Our hospitality segment may also generate revenue from the sale of operating properties. Real estate sales in our hospitality segment incur costs of revenue directly associated with the land, development, construction and selling costs. Some of our JV assets and other assets incur interest and financing expenses related to the loans as described in Note 8.Debt, Net.
Current wording
Our hospitality segment features a private membership club (the “Watersound Club”), hotel operations, food and beverage operations, golf courses, beach clubs, retail outlets, marinas and other entertainment offerings. The hospitality segment generates revenue from membership sales, golf courses, lodging at our hotels, food and beverage operations, merchandise sales, marina operations (including boat slip rentals, boat storage fees and fuel sales), other resort and entertainment activities and beach clubs, which include food and beverage operations of the WaterColor Beach Club. Hospitality revenue is generally recognized at the point in time services are provided and represents a single performance obligation with a fixed transaction price. Hospitality revenue recognized over time includes non-refundable club membership initiation fees, club membership dues and other membership fees. The hospitality segment incurs costs from the services and goods provided, personnel costs, maintenance of the facilities and holding costs of the assets. From time to time, we may explore the sale of certain hospitality properties, the development of new hospitality properties, as well as new entertainment and management opportunities. Our hospitality segment may also generate revenue from the sale of operating properties. Real estate sales in our hospitality segment incur costs of revenue directly associated with the land, development, construction and selling costs. Cost of hospitality revenue and cost of real estate revenue exclude depreciation, depletion and amortization expense. Some of our JV assets and other assets incur interest and financing expenses related to the loans as described in Note 8.Debt, Net.
Previous wording
Watersound Club provides club members access to our member facilities, which include the Watersound Beach Club, Camp Creek golf course and amenities, Shark’s Tooth golf course and tennis center and The Third golf course, which opened in November 2024. In addition, in June 2024, we opened The Sporting Preserve, a 12-stand sporting clays course. Watersound Club offers different types of club memberships, each with different access rights and associated fee structures. Watersound Club is focused on creating an outstanding membership experience combined with the luxurious aspects of a destination resort. Watersound Beach Club located on Scenic Highway 30A with over one mile of Gulf frontage, has two resort-style pools, two restaurants, three bars, kid’s room and a recreation area. Camp Creek includes an 18-hole golf course, a full club house, health and wellness center, three restaurants, a tennis and pickle ball center, a resort-style pool complex with separate adult pool, a golf teaching academy, pro shop and multi-sport fields. Shark’s Tooth includes an 18-hole golf course, tennis center, a full club house, a pro shop, as well as two food and beverage outlets. The Third includes an 18-hole golf course. Guests of some of our hotels also have access to certain Watersound Club amenities.
Current wording
Watersound Club provides club members access to our member facilities, which include the Watersound Beach Club, Camp Creek golf course and amenities, Shark’s Tooth golf course and tennis center, The Third golf course and The Sporting Preserve. Watersound Club offers different types of club memberships, each with different access rights and associated fee structures. Watersound Club is focused on creating an outstanding membership experience combined with the luxurious aspects of a destination resort. Watersound Beach Club located on Scenic Highway 30A with over one mile of Gulf frontage, has two resort-style pools, two restaurants, three bars, kid’s room and a recreation area. Camp Creek includes an 18-hole golf course, a full club house, health and wellness center, three restaurants, a tennis and pickle ball center, a resort-style pool complex with separate adult pool, a golf teaching academy, pro shop and multi-sport fields. Shark’s Tooth includes an 18-hole golf course, tennis center, a full club house, a pro shop, as well as two food and beverage outlets. The Third includes an 18-hole golf course. The Sporting Preserve includes a 12-stand sporting clays course. Guests of some of our hotels also have access to certain Watersound Club amenities.
Previous wording
Watersound Origins amenities include a resort-style pool, fitness center, pickle ball courts and tennis courts located in the community. Access to these amenities is reserved to Watersound Origins and Watersound Origins West members consisting of the communities’ residents. In addition, an executive golf course located in the community is available to residents and for public play.
Current wording
Watersound Origins amenities include a resort-style pool, fitness center, pickle ball courts and tennis courts located in the community. Access to these amenities is reserved to Watersound Origins, Watersound Origins West and Watersound Villas on the Fairway members consisting of the communities’ residents. In addition, an executive golf course located in the community is available to residents and for public play.
Previous wording
We own and operate the award-winning WaterColor Inn (which includes the Fish Out of Water restaurant) and The Pearl Hotel (which includes the Havana Beach Bar & Grill restaurant); the Camp Creek Inn, the Hilton Garden Inn Panama City Airport, the Homewood Suites by Hilton Panama City Beach, the Hotel Indigo Panama City Marina, the Home2 Suites by Hilton Santa Rosa Beach, the Watersound Inn and two gulf-front vacation rental houses. With our JV partners, we own and operate The Lodge 30A and the Embassy Suites by Hilton Panama City Beach Resort. We also operate the WaterColor Beach Club, which includes food and beverage operations and other hospitality related activities, such as beach chair rentals.
Current wording
We own and operate the award-winning WaterColor Inn (which includes the Fish Out of Water restaurant) and The Pearl Hotel (which includes the Havana Beach Bar & Grill restaurant); the Camp Creek Inn, the Hilton Garden Inn Panama City Airport, the Homewood Suites by Hilton Panama City Beach, the Hotel Indigo Panama City Marina, the Home2 Suites by Hilton Santa Rosa Beach and the Watersound Inn. With our JV partners, we own and operate The Lodge 30A and the Embassy Suites by Hilton Panama City Beach Resort. We also operate the WaterColor Beach Club, which includes food and beverage operations and other hospitality related activities, such as beach chair rentals.
Previous 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
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 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. 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.
Previous wording
The commercial segment generates leasing revenue and incurs leasing expenses primarily from maintenance and management of our properties, personnel costs and asset holding costs. Our commercial segment generates revenue from the sale of developed and undeveloped land, timber holdings or land with limited development and/or entitlements and the sale of commercial operating properties. Real estate sales in our commercial segment incur costs of revenue directly associated with the land, development, construction, timber and selling costs. Our commercial segment generates timber revenue primarily from open market sales of timber on site without the associated delivery costs. Some of our JV assets and other assets incur interest and financing expenses related to loans as described in Note 8.Debt, Net.
Current wording
The commercial segment generates leasing revenue and incurs leasing expenses primarily from maintenance and management of our properties, personnel costs and asset holding costs. Our commercial segment generates revenue from the sale of developed and undeveloped land, timber holdings or land with limited development and/or entitlements and the sale of commercial operating properties. Real estate sales in our commercial segment incur costs of revenue directly associated with the land, development, construction, timber and selling costs. Our commercial segment generates timber revenue primarily from open market sales of timber on site without the associated delivery costs. Cost of leasing revenue
Previous 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.
Current wording
As of March 31, 2026, our leasing portfolio consists of approximately 1,200,000 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 leasable square feet and percentage leased of leasing properties are as follows:
Current wording
The total net leasable building 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 nine 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, 2025. There have been no significant changes in these policies during the first three months of 2026, however we cannot assure you that these policies will not change in the future.
Previous wording
Our operations may be affected by seasonal fluctuations. The revenues and earnings from our business segments may vary significantly from period to period. Homebuilders tend to buy multiple homesites in sporadic transactions. In addition, homesite prices vary significantly by community, which further impacts period over period results. Therefore, there may be reporting periods in which we have no, or significantly less, revenue from residential or commercial real estate sales. We may also choose to operate rather than lease assets, lease rather than sell assets, or sell improved rather than unimproved assets that may delay revenue and profits.
Current wording
Our operations may be affected by seasonal fluctuations. The revenues and earnings from our business segments may vary significantly from period to period. Homebuilders tend to buy multiple homesites in sporadic transactions. In addition, homesite prices vary significantly by community, which further impacts period over period results. Therefore, there may be reporting periods in which we have no, or significantly less, revenue from residential or commercial real estate sales. We may also choose to operate rather than lease assets, lease rather than sell assets, or sell improved rather than unimproved land that may delay revenue and profits.
Previous wording
Hospitality revenues are typically higher in the second and third quarters, and vary depending on the timing of holidays and school breaks. Commercial real estate sales tend to be non-recurring. Projects depend on uncertain demand. Extraordinary events such as hurricanes or public health emergencies may dramatically change demand and pricing for products and services.
Current wording
Hospitality revenues are typically higher in the second and third quarters, and vary depending on the timing of holidays and school breaks. Commercial real estate sales tend to be non-recurring. Projects depend on uncertain demand. Extraordinary events such as hurricanes may dramatically change demand and pricing for products and services.
Previous 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.
Current wording
Residential Real Estate Revenue and Gross Profit. During the three months ended March 31, 2026, residential real estate revenue decreased $4.6 million, or 14.0%, to $28.3 million, as compared to $32.9 million during the same period in 2025. During the three months ended March 31, 2026, residential real estate gross profit decreased $2.4 million to $12.6 million (or gross margin of 44.5%), as compared to $15.0 million (or gross margin of 45.6%) during the same period in 2025. During the three months ended March 31, 2026, we sold 168 homesites and 6 homes, compared to 249 homesites and no homes during the same period in 2025. During the three months ended March 31, 2026 and 2025, the average base revenue, excluding homesite residuals, per homesite sold was approximately $121,000 and $114,000, 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 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
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 wording
Commercial, Forestry and Hospitality Real Estate Revenue and Gross Profit. During the three months ended March 31, 2026, we had four commercial, forestry and hospitality real estate sales totaling approximately 115 acres for $6.4 million, resulting in a gross profit of $4.3 million (or gross margin of 67.2%). The commercial, forestry and hospitality real estate sales during the three months ended March 31, 2026, included the sale of a vacation rental property used in hospitality operations for $3.6 million, resulting in a gross margin of approximately 63.9%. During the three months ended March 31, 2025, we had two commercial and forestry real estate sales totaling approximately 133 acres for $3.2 million, resulting in a gross profit of $3.1 million (or gross margin of 96.9%).
Previous wording
Revenue from commercial and forestry real estate can vary significantly from period-to-period depending on the proximity to developed areas and mix of real estate sold in each period, with varying compositions of retail, office, industrial, timber and other commercial uses. Our gross margin can vary significantly from period-to-period depending on the characteristics of property sold. Sales of forestry land typically have a lower cost basis than residential and commercial real estate sales. In addition, our cost basis in residential and commercial real estate can vary depending on the amount of development, construction or other costs incurred on the property.
Current wording
Revenue from real estate can vary significantly from period-to-period depending on the proximity to developed areas and mix of real estate sold in each period, with varying compositions of retail, office, industrial, timber and other commercial uses. Our gross margin can vary significantly from period-to-period depending on the characteristics of property sold. Sales of forestry land typically have a lower cost basis than residential, commercial and hospitality real estate sales. In addition, our cost basis in real estate can vary depending on the amount of development, construction or other costs incurred on the property.
Previous 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.
Current wording
Other Revenue. Other revenue primarily consists of our Business Services revenue and mitigation bank credit sales. Other revenue increased $3.1 million during the three months ended March 31, 2026, compared to the same period in 2025. Other gross margin was 12.2% during the three months ended March 31, 2026, as compared to 40.0% during the same period in 2025. The change in other revenue and gross margin was primarily due to our real estate brokerage business, which began operations in the second quarter of 2025.
Previous 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.
Current wording
Hospitality revenue increased $5.1 million, or 12.9%, to $44.7 million during the three months ended March 31, 2026, as compared to $39.6 million in the same period in 2025. The increase in hospitality revenue was primarily related to membership increases and ancillary spend. The increase in revenue was also related to an increase in hotel operations in average daily rate (“ADR”), occupancy and guest incidental spend. As of March 31, 2026, Watersound Club had 3,647 members, compared with 3,498 members as of March 31, 2025, a net increase of 149 members. As of both March 31, 2026 and 2025, we had 1,053 operational hotel rooms (excluding 245 hotel rooms related to unconsolidated JVs). Hospitality gross margin increased to 24.4% during the three months ended March 31, 2026, compared to 18.2% during the same period in 2025. The increase in gross margin was primarily due to the continued stabilization of the properties and the management of operating expenses.
Previous wording
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 wording
Corporate and other operating expenses increased $1.8 million to $8.4 million during the three months ended March 31, 2026, as compared to $6.6 million in the same period in 2025. The increase in corporate and other operating expenses was primarily due to compensation payments made in the first quarter of 2026.
Previous 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.
Current wording
Depreciation, depletion and amortization expense decreased $0.7 million during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to assets sold since the prior period, partially offset by 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.
Previous wording
Investment income, net primarily includes (i) interest, dividends and accretion income accrued or received on our cash, cash equivalents and other investments, (ii) interest income earned on the time deposit held by SPE and (iii) interest earned on notes receivable and other receivables as detailed in the table below:
Current wording
Investment income, net primarily includes (i) interest, dividends and accretion income accrued or received on our cash, cash equivalents and other investments, (ii) interest income earned on the time deposit held by SPE and (iii) interest earned on notes receivable, our unimproved land contribution to the unconsolidated Latitude Margaritaville Watersound JV as home sales are transacted in the community and other receivables as detailed in the table below:
Previous 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.
Current wording
Interest expense decreased $0.7 million, or 9.0%, to $7.1 million during the three months ended March 31, 2026, as compared to $7.8 million in the same period in 2025. The decrease in interest expense is 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 (Expense) Income, Net for additional information regarding project financing.
Previous wording
Other income (expense), net primarily includes other income and expense items as detailed in the table below:
Current wording
Other expense, net primarily includes other income and expense items as detailed in the table below:
Previous wording
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 wording
Other expense, net during the three months ended March 31, 2026 and 2025, were comparable. Miscellaneous expense, net during the three months ended March 31, 2026 and 2025, primarily includes loss on early extinguishment of debt, as well as fees related to loans.
Previous 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.
Current wording
Income tax expense was $4.5 million during the three months ended March 31, 2026, as compared to $5.8 million during the same period in 2025. Our effective tax rate was 25.3% for the three months ended March 31, 2026, as compared to 25.8% during the same period in 2025.
Previous 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.
Current wording
Our effective rate for the three months ended March 31, 2026 and 2025, differed from the federal statutory rate of 21.0% primarily due to state income taxes, nontaxable or nondeductible and other differences. See Note 11.Income Taxes for additional information.
Previous 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.
Current wording
Homesites. Revenue from homesite sales decreased $7.4 million, or 24.3%, during the three months ended March 31, 2026, as compared to the same period in 2025, 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 March 31, 2026 and 2025, the average base revenue, excluding homesite residuals, per homesite sold was approximately $121,000 and $114,000, respectively, due to the mix of sales from different communities. Revenue includes estimated homesite residuals of $1.7 million and $1.1 million during the three months ended March 31, 2026 and 2025, 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 46.3% during the three months ended March 31, 2026, comparable to the same period in 2025. Gross margin may vary each period depending on the location of homesite sales.
Previous 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%.
Current wording
Homes. During the three months ended March 31, 2026, we sold six completed townhomes within our Watersound Villas on the Fairway community for a total of $3.1 million, resulting in a gross margin of 32.3%. During the three months ended March 31, 2025, we did not have any home sales.
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 $0.6 million, during the three months ended September 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 $0.6 million and $0.5 million, during the three months ended March 31, 2026 and 2025, 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. 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.
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 March 31, 2026, as compared to the same period in 2025, primarily 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 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.
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 $7.6 million during the three months ended March 31, 2026, as compared to the same period in 2025. The decrease was primarily due to the decreased volume of home sale transactions and a lower average sales price, partially offset by higher average margin per home sold during the current period related to our unconsolidated Latitude Margaritaville Watersound JV. The Latitude Margaritaville Watersound JV completed 83 home sale transactions during the three months ended March 31, 2026, compared to 192 home sale transactions during the same period in 2025. See Note 4.Joint Venturesfor additional information.
Showing the first 40 of 81 pairs. Open the source sections for the rest.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
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 residential segment incurs costs from direct costs (e.g., development and construction costs), selling costs and other indirect costs. Cost of real estate revenue excludes depreciation, depletion and amortization expense.
Current report — wording carried from elsewhere
and cost of real estate revenue exclude depreciation, depletion and amortization expense. Some of our JV assets and other assets incur interest and financing expenses related to loans as described in Note 8.Debt, Net.
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Other expense, net primarily includes loss on early extinguishment of debt, as well as fees related to loans. See Note 8.Debt, Net for additional information.
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outstanding principal balance for any additional principal that is prepaid through November 2027. The loan is secured by the real property and certain other Security Interests. See Note 8.Debt, Net for additional information.
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of our common stock outstanding at an average repurchase price of $45.99, per share, related to the Stock Repurchase Program, for an aggregate purchase price of $5.7 million, excluding the excise tax on stock repurchases in excess of issuances. See Note 13.Stockholders’ Equity for additional information regarding the Stock Repurchase Program and issuance of common stock for employee compensation.
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joint ventures, deferred revenue and accounts payable and other liabilities, partially offset by the changes in net income, distribution of earnings from unconsolidated joint ventures, deferred income tax and other assets during the period.
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residential segment incurs costs from direct costs (e.g., development and construction costs), selling costs and other indirect costs.
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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.
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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.
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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.
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The following table sets forth our consolidated residential real estate revenue and cost of revenue activity:
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The following discussion sets forth details of the consolidated results of operations of our residential segment.
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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.
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Other operating expenses include salaries and benefits, property taxes, marketing, professional fees, project administration, owner association and CDD assessments and other administrative expenses.
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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.
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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
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The following table sets forth details of our hospitality segment consolidated revenue and gross profit:
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Other operating expenses include salaries and benefits, professional fees and other administrative expenses.
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Interest expense primarily includes interest incurred from our hospitality project financing. The decrease of $1.0 million in interest expense during the nine months ended September 30, 2025, as compared to the same period in 2024, was primarily due to repayment of project financing and a decrease in interest rates from the prior period. See Note 8.Debt, Net for additional information.
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The following table sets forth details of our commercial segment consolidated revenue and gross profit:
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The following discussion sets forth details of the consolidated results of operations of our commercial segment.
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Other operating expenses include salaries and benefits, property taxes, CDD assessments, professional fees, marketing, project administration and other administrative expenses.
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Interest expense primarily includes interest incurred from our commercial project financing and CDD debt. The decrease of $1.0 million in interest expense during the nine months ended September 30, 2025, as compared to the same period in 2024, was primarily due to repayment of project financing and a decrease in interest rates from the prior period. See Note 8.Debt, Net for additional information.
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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.
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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.
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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,