ST JOE Co

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 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.

Current wording

St. Joe is a diversified Florida 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 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.

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 business, 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 first quarter of 2026 compared to the first quarter of 2025 include:

Current wording

Highlights for the second quarter of 2026 compared to the second quarter of 2025 include:

Previous 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.

Current wording

While macroeconomic factors such as uncertainty over tariffs, continued 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 six months 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

The following table sets forth the relative contribution of these reportable segments to our consolidated operating revenue:

Current wording

The following table sets forth the relative contribution of these reportable segments to our consolidated revenue:

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

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

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 wording

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.

Previous 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.

Current wording

The East Lake Creek, East Lake Powell, Lake Powell, Lake Powell Estates, Park Place East, 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 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.

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 June 30, 2026, the unconsolidated Latitude Margaritaville Watersound JV had completed 2,359 home sale transactions of the total estimated 3,700 homes planned in the community and had 183 homes under contract, which are expected to result in a sales value to the JV of approximately $115.1 million at closing of the homes. See Note 4.Joint Ventures for additional information.

Previous 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.

Current wording

As of June 30, 2026, we had eighteen different homebuilders within our residential communities. As of June 30, 2026, we had 3,077 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 June 30, 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 1,104 residential homesites under contract are expected to result in revenue of approximately $109.2 million, plus residuals, at closing of the homesites over the next several years. By comparison, as of June 30, 2025, we had 1,209 residential homesites under contract, with an expected revenue of approximately $121.7 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

We also own and operate retail stores, two standalone restaurants and other entertainment assets.

Current wording

We also own and operate retail stores, standalone restaurants and other entertainment assets.

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 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.

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

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. Cost of leasing revenue

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 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.

Previous 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.

Current wording

As of June 30, 2026, our leasing portfolio consists of approximately 1,196,000 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

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.

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 six months of 2026, 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 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.

Current wording

Residential Real Estate Revenue and Gross Profit. During the three months ended June 30, 2026, residential real estate revenue increased $14.7 million, or 38.6%, to $52.8 million, as compared to $38.1 million during the same period in 2025. During the three months ended June 30, 2026, residential real estate gross profit increased $8.3 million to $25.3 million (or gross margin of 47.9%), as compared to $17.0 million (or gross margin of 44.6%) during the same period in 2025. During the three months ended June 30, 2026, we sold 224 homesites, 15 homes and had an unimproved residential land sale within our SummerCamp Beach community of $2.5 million, compared to 225 homesites, 10 homes and no unimproved residential land sales during the same period in 2025. During the three months ended June 30, 2026 and 2025, the average base revenue, excluding homesite residuals, per homesite sold was approximately $121,000 and $122,000, respectively. 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, 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%).

Current wording

real estate sales during the three months ended June 30, 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 June 30, 2025, we had five commercial, forestry and hospitality 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.

Previous wording

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 wording

Timber revenue decreased $0.5 million, or 20.0%, to $2.0 million during the six months ended June 30, 2026, as compared to $2.5 million in the same period in 2025. There were 122,000 tons of wood products sold at an average price per ton of $15.58 during the six months ended June 30, 2026, as compared to 135,000 tons of wood products sold at an average price per ton of $16.90, during the same period in 2025. Timber gross margin was 80.0% during the six months ended June 30, 2026, as compared to 84.0% 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.

Previous 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.

Current wording

Other Revenue. Other revenue primarily consists of our Business Services revenue and mitigation bank credit sales. Other revenue increased $4.2 million during the three months ended June 30, 2026, compared to the same period in 2025. Other gross margin was 13.2% during the three months ended June 30, 2026, as compared to 27.3% 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 $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.

Current wording

Hospitality revenue increased $10.5 million, or 9.7%, to $118.9 million during the six months ended June 30, 2026, as compared to $108.4 million in the same period in 2025. The increase in hospitality revenue was primarily related to membership and ancillary spend increases. The increase in revenue was also related to an increase in hotel operations in ADR, occupancy and guest incidental spend. As of June 30, 2026, Watersound Club had 3,723 members, compared with 3,551 members as of June 30, 2025, a net increase of 172 members. As of both June 30, 2026 and 2025, we had 1,053 operational hotel rooms (excluding 245 hotel rooms related to unconsolidated JVs). Hospitality gross margin increased to 34.7% during the six months ended June 30, 2026, compared to 31.1% during the same period in 2025. The increase in gross margin was primarily due to the continued stabilization of the properties and improvements in management of operating expenses.

Previous wording

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 wording

Leasing revenue decreased $1.5 million, or 9.1%, to $15.0 million during the three months ended June 30, 2026, as compared to $16.5 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 60.0% during the three months ended June 30, 2026, as compared to 53.9% 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.

Previous 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.

Current wording

Corporate and other operating expenses increased $2.6 million, or 20.0%, to $15.6 million during the six months ended June 30, 2026, as compared to $13.0 million in the same period in 2025. The increase in corporate and other operating expenses was primarily related to compensation payments made in the first quarter of 2026, as well as owner association assessments, repairs and maintenance and marketing costs.

Previous 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.

Current wording

Depreciation, depletion and amortization expense decreased $0.6 million during the three months ended June 30, 2026, as compared to the same period in 2025. Depreciation, depletion and amortization expense decreased $1.3 million during the six months ended June 30, 2026, as compared to the same period in 2025. The decrease in both periods was 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, 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:

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 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

Investment income, net during the three months ended March 31, 2026 and 2025, were comparable.

Current wording

Investment income, net during the three and six months ended June 30, 2026 and 2025, were comparable.

Previous 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.

Current wording

Interest expense decreased $0.9 million, or 11.5%, to $6.9 million during the three months ended June 30, 2026, as compared to $7.8 million in the same period in 2025. Interest expense decreased $1.5 million, or 9.7%, to $14.0 million during the six months ended June 30, 2026, as compared to $15.5 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 Income (Expense), Net for additional information regarding project financing.

Previous 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.

Current wording

Miscellaneous expense, net during the three and six months ended June 30, 2026, primarily includes expense of $0.5 million related to design costs for certain commercial assets that we are no longer pursuing, as well as loss on early extinguishment of debt and fees related to loans. Miscellaneous expense, net during the three and six months ended June 30, 2025, primarily includes loss on early extinguishment of debt and fees related to loans.

Previous 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.

Current wording

Income tax expense was $14.1 million during the three months ended June 30, 2026, as compared to $9.9 million during the same period in 2025. Our effective tax rate was 25.6% for the three months ended June 30, 2026, as compared to 25.0% during the same period in 2025.

Previous 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.

Current wording

Our effective rate for the three and six months ended June 30, 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 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.

Current wording

Homesites. Revenue from homesite sales increased $8.6 million, or 28.4%, during the three months ended June 30, 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 June 30, 2026 and 2025, the average base revenue, excluding homesite residuals, per homesite sold was approximately $121,000 and $122,000, respectively. Revenue includes estimated homesite residuals of $10.8 million and $1.2 million during the three months ended June 30, 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 47.3% during the three months ended June 30, 2026, compared to 45.9% in 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 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.

Current wording

Land sales. During the three months ended June 30, 2026, we had an unimproved land sale within our SummerCamp Beach community for $2.5 million, resulting in a gross margin of 80.0%. During the three months ended June 30, 2025, we did not have any unimproved land 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 $0.6 million and $0.5 million, during the three months ended March 31, 2026 and 2025, 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 $0.5 million, during the three months ended June 30, 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 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.

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 $0.4 million during the six months ended June 30, 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 $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.

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 $11.1 million during the six months ended June 30, 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 169 home sale transactions during the six months ended June 30, 2026, compared to 329 home sale transactions during the same period in 2025. See Note 4.Joint Venturesfor additional information.

Previous wording

The following table sets forth details of our hospitality segment consolidated revenue and gross profit (deficit):

Current wording

The following table sets forth details of our hospitality segment consolidated revenue and gross profit:

Previous wording

Revenue from our clubs increased $3.2 million, or 16.3%, during the three months ended March 31, 2026, as compared to the same period in 2025. The increase in revenue was due to an increase in membership dues, membership

Current wording

Revenue from our clubs increased $3.4 million, or 13.5%, during the three months ended June 30, 2026, as compared to the same period in 2025. The increase in revenue was due to an increase in membership dues, membership ancillary spend and Camp Creek Inn lodging and ancillary spend. Our clubs gross margin was 45.8% during the three months ended June 30, 2026, compared to 43.3% during the same period in 2025. The increase in gross margin was primarily due to stabilization of the Camp Creek Inn and improvements in management of operating expenses.

Previous wording

Revenue from our hotel operations increased $1.7 million, or 9.6%, during the three months ended March 31, 2026, as compared to the same period in 2025. The increase was primarily related to an increase in ADR, occupancy, as well as guest incidental spend. Our hotels gross margin was 8.2% for the three months ended March 31, 2026, compared to a negative gross margin of 1.1% during the same period in 2025. The increase in gross margin was primarily due to stabilization of the properties and management of operating expenses.

Current wording

Revenue from our hotel operations increased $1.6 million, or 4.1%, during the three months ended June 30, 2026, as compared to the same period in 2025. The increase was primarily related to an increase in ADR, occupancy, as well as guest incidental spend. Our hotels gross margin was 39.8% for the three months ended June 30, 2026, compared to 37.5% during the same period in 2025. The increase in gross margin was primarily due to stabilization of the properties and improvements in management of operating expenses.

Previous wording

Revenue from other hospitality operations increased $0.2 million, or 9.1%, during the three months ended March 31, 2026, as compared to the same period in 2025, primarily due to increased revenue from our standalone restaurants and marina operations. Our other hospitality operations gross margin was 8.3% during the three months ended March 31, 2026, compared to a negative gross margin of 4.5% during the same period in 2025. The increase in gross margin was due to management of operating expenses.

Current wording

Revenue from other hospitality operations increased $0.4 million, or 8.5%, during the three months ended June 30, 2026, as compared to the same period in 2025, primarily due to increased revenue from our marina and retail operations. Our other hospitality operations gross margin was 25.5% during the three months ended June 30, 2026, compared to 21.3% during the same period in 2025. The increase in gross margin was primarily due to improvements in management of operating expenses.

Previous wording

Real estate revenue during the three months ended March 31, 2026, includes the sale of a vacation rental property for $3.6 million, resulting in a gross profit of $2.3 million (or gross margin of 63.9%).

Current wording

Real estate revenue during the three months ended June 30, 2026, includes the sale of a vacation rental property for $3.6 million, resulting in a gross profit of $2.3 million (or gross margin of 63.9%). Real estate revenue during the three 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 wording

Interest expense primarily includes interest incurred from our hospitality project financing. The decrease of $0.4 million in interest expense during the three months ended March 31, 2026, as compared to the same period in 2025, 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.

Current wording

Interest expense primarily includes interest incurred from our hospitality project financing. The decrease of $0.5 million in interest expense during the three months ended June 30, 2026, as compared to the same period in 2025, 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.