ST JOE Co
For the period ended Sep 30, 2026. Filed Oct 28, 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.
Sep 30, 2026 · Filed Oct 28, 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 2026-06-30; filed 2026-07-29.
0001104659-26-088152
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-28.
0001104659-26-119631
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 197 previous paragraphs and 206 current paragraphs.
88 unchanged; 95 reworded; 13 added; 7 removed; 7 previous and 10 current paragraphs rearranged.
Tables are not compared: 73 previous and 78 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 (13)
Current report
Commercial, Forestry and Hospitality Real Estate Revenue and Gross Profit. During the three months ended September 30, 2026, we had three commercial, forestry and hospitality real estate sales totaling approximately 15 acres for $22.5 million, resulting in a gross profit of $17.6 million (or gross margin of 78.2%). The commercial, forestry and hospitality real estate sales during the three months ended September 30, 2026, include the sale of the WindMark Beach Town Center for $10.3 million, resulting in a gross margin of approximately 62.5%. During the three months ended September 30, 2025, we had four commercial, forestry and hospitality 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, forestry and hospitality real estate sales during 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.
Current report
Leasing gross margin increased to 59.6% during the nine months ended September 30, 2026, as compared to 54.7% 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 increased $0.5 million, or 16.1%, to $3.6 million during the three months ended September 30, 2026, as compared to $3.1 million in the same period in 2025. Other interest income during the three
Current report
months ended September 30, 2026, increased primarily due to an increase in other receivables, partially offset by a decrease due to fewer home sales transacted in the Latitude Margaritaville Watersound community during the current period. Investment income, net increased $0.4 million, or 4.1%, to $10.1 million during the nine months ended September 30, 2026, as compared to $9.7 million in the same period in 2025. See Note 4.Joint Ventures for additional information.
Current report
Equity in (Loss) Income from Unconsolidated Joint Ventures
Current report
Other (Expense) Income, Net
Current report
Gain 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.
Current report
Land sales. During the three months ended September 30, 2026, unimproved land sales primarily include additional land sold to the Latitude Margaritaville Watersound JV with a contractual value of $50.4 million. The initial net present value of the additional land sale was $31.4 million, with $9.6 million cost of revenue, resulting in a gross margin of 69.4%. See Note 4.Joint Ventures and Note 18.Related Party Transactions for additional information. During the three months ended September 30, 2025, we did not have any unimproved land sales.
Current report
Revenue and gross margin from other hospitality operations during the three months ended September 30, 2026 and 2025, were comparable.
Current report
Other (expense) income, net, during the three months ended September 30, 2025, primarily includes a gain on the sale of our N850J aircraft previously used in hospitality operations.
Current report
Other (expense) income, net, during the nine months ended September 30, 2025, primarily includes a gain on the sale of our N850J aircraft previously used in hospitality operations.
Current report
Timber revenue and gross margin during the three months ended September 30, 2026 and 2025 were comparable. There were 61,000 tons of wood products sold at an average price per ton of $13.81 during the three months ended September 30, 2026, as compared to 56,000 tons of wood products sold at an average price per ton of $15.35, during the same period in 2025.
Current report
commercial and forestry real estate sales of approximately 154 acres for $32.1 million, resulting in a gross margin of approximately 76.0%. The nine months ended September 30, 2026, include the sale of the WindMark Beach Town Center for $10.3 million, resulting in a gross margin of approximately 62.5%. During the nine months ended September 30, 2025, we had ten commercial and forestry real estate sales of approximately 155 acres for $49.2 million, resulting in a gross margin of approximately 52.2%. 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%. See Note 4.Joint Ventures for additional information.
Removed paragraphs (7)
Previous report
Commercial, Forestry and Hospitality Real Estate Revenue and Gross Profit. During the three months ended June 30, 2026, we had six commercial, forestry and hospitality real estate sales totaling approximately 24 acres for $10.4 million, resulting in a gross profit of $7.0 million (or gross margin of 67.3%). The commercial, forestry and hospitality
Previous report
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 report
Investment income, net during the three and six months ended June 30, 2026 and 2025, were comparable.
Previous report
Equity in Income from Unconsolidated Joint Ventures
Previous report
Other Expense, Net
Previous report
the three months ended June 30, 2026, compared to 137 home sale transactions during the same period in 2025. See Note 4.Joint Venturesfor additional information.
Previous report
Timber revenue decreased $0.2 million, or 15.4%, to $1.1 million during the three months ended June 30, 2026, as compared to $1.3 million during the same period in 2025. There were 70,000 tons of wood products sold at an average price per ton of $15.30 during the three months ended June 30, 2026, as compared to 62,000 tons of wood products sold at an average price per ton of $19.64, during the same period in 2025. Timber gross margin was 81.8% during the three months ended June 30, 2026, as compared to 84.6% during the same period in 2025. The decrease in revenue and gross margin was primarily due to product mix sold in the current period.
Reworded paragraphs (95)
Previous 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.
Current wording
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
Highlights for the second quarter of 2026 compared to the second quarter of 2025 include:
Current wording
Highlights for the third quarter of 2026 compared to the third quarter of 2025 include:
Previous 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.
Current wording
While macroeconomic factors such as uncertainty over tariffs, continued inflation, geopolitical conflicts, rising interest rates, elevated fuel costs 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 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
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.
Current wording
Rising 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
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 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. The residential segment earns interest income on our initial unimproved land contribution to the unconsolidated Latitude Margaritaville Watersound JV as home sales are transacted in the community and other receivables. See Note 4.Joint Ventures for additional information.
Previous 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.
Current wording
Our residential segment includes the Bayside at Ward Creek, Breakfast Point East, Breakwater at Ward Creek, College Station, Lake Powell Estates, Park Place, Salt Creek at Mexico Beach, Salt Grass at Ward Creek, Titus Park, Watersound Camp Creek, Watersound Gallery, 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, 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.
Current wording
The East Lake Creek, East Lake Powell, Havenry, Lake Powell, Park Place East, Teachee 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 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.
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 7,200 residential homes, which are being developed in smaller increments of discrete neighborhoods. As of September 30, 2026, the unconsolidated Latitude Margaritaville Watersound JV had completed 2,426 home sale transactions of the total estimated 7,200 homes planned in the community and had 222 homes under contract, which are expected to result in a sales value to the JV of approximately $140.9 million at closing of the homes. See Note 4.Joint Ventures for additional information.
Previous 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.
Current wording
As of September 30, 2026, we had nineteen different homebuilders within our residential communities. As of September 30, 2026, we had 3,021 residential homesites under contract, which include 1,326 homesites within the Havenry community (formerly known as Pigeon Creek), which is positioned to include significant variable revenue due to its long-term nature. In addition, as of September 30, 2026, we had approximately 647 entitled but undeveloped homesites within the SouthWood community under contract. Excluding the Havenry and SouthWood community contracts due to their scale and timing, the remaining 1,048 residential homesites under contract are expected to result in revenue of approximately $103.6 million, plus residuals, at closing of the homesites over the next several years. By comparison, as of September 30, 2025, we had 1,992 residential homesites under contract, which includes approximately 647 entitled but undeveloped homesites within the SouthWood community. Excluding the SouthWood community contract due to its scale and timing, the remaining 1,345 residential homesites under contract were expected to result in revenue of approximately $137.4 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
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.
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
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
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. 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.
Current wording
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 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.
Current wording
As of September 30, 2026, our leasing portfolio consists of approximately 1,148,000 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 six 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 nine 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 land 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 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 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 and hospitality 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 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.
Current wording
Residential Real Estate Revenue and Gross Profit. During the three months ended September 30, 2026, residential real estate revenue increased $9.4 million, or 25.5%, to $46.2 million, as compared to $36.8 million during the same period in 2025. During the three months ended September 30, 2026, residential real estate gross profit increased $10.4 million to $29.2 million (or gross margin of 63.2%), as compared to $18.8 million (or gross margin of 51.1%) during the same period in 2025. During the three months ended September 30, 2026, we sold 80 homesites, 5 homes and had unimproved residential land sales of $32.2 million, compared to 189 homesites, 8 homes and no unimproved residential land sales during the same period in 2025. During the three months ended September 30, 2026 and 2025, the average base revenue, excluding homesite residuals, per homesite sold was approximately $84,000 and $150,000, respectively, due to the mix of sales from different communities. Unimproved residential land sales during the three months ended September 30, 2026, include additional land sold to the Latitude Margaritaville Watersound JV with a contractual value of $50.4 million. The initial net present value of the additional land sale was $31.4 million, with $9.6 million cost of revenue, resulting in a gross margin of 69.4%. See Note 4.Joint Ventures and Note 18.Related Party Transactions for additional information. The revenue, gross profit and margin for each period was also 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
During the six months ended June 30, 2026, residential real estate revenue increased $10.2 million, or 14.4%, to $81.2 million, as compared to $71.0 million during the same period in 2025. During the six months ended June 30, 2026, residential real estate gross profit increased $6.0 million to $37.9 million (or gross margin of 46.7%), as compared to $31.9 million (or gross margin of 44.9%) during the same period in 2025. During the six months ended June 30, 2026, we sold 392 homesites, 21 homes and had an unimproved residential land sale within our SummerCamp Beach community of $2.5 million, compared to 474 homesites, 10 homes and no unimproved residential land sales during the same period in 2025. During the six months ended June 30, 2026 and 2025, the average base revenue, excluding homesite residuals, per homesite sold was approximately $121,000 and $118,000, 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.
Current wording
During the nine months ended September 30, 2026, residential real estate revenue increased $19.7 million, or 18.3%, to $127.4 million, as compared to $107.7 million during the same period in 2025. During the nine months ended September 30, 2026, residential real estate gross profit increased $16.4 million to $67.1 million (or gross margin of 52.7%), as compared to $50.7 million (or gross margin of 47.1%) during the same period in 2025. During the nine months ended September 30, 2026, we sold 472 homesites, 26 homes and had unimproved residential land sales of $34.6 million, compared to 663 homesites, 18 homes and no unimproved residential land sales during the same period in 2025. During the nine months ended September 30, 2026 and 2025, the average base revenue, excluding homesite residuals, per homesite sold was approximately $115,000 and $127,000, respectively, due to the mix of sales from different communities. Unimproved residential land sales during the nine months ended September 30, 2026, include additional land sold to the Latitude Margaritaville Watersound JV, with a contractual value of $50.4 million. The initial net present value of the additional land sale was $31.4 million, with $9.6 million cost of revenue, resulting in a gross margin of
Previous wording
During the six months ended June 30, 2026, we had ten commercial, forestry and hospitality real estate sales totaling approximately 139 acres for $16.7 million, resulting in a gross profit of $11.3 million (or gross margin of 67.7%). The commercial, forestry and hospitality real estate sales during the six months ended June 30, 2026, included the sale of two vacation rental properties used in hospitality operations for $7.1 million, resulting in a gross margin of approximately 63.4%. During the six months ended June 30, 2025, we had seven commercial, forestry and hospitality real estate sales totaling approximately 144 acres for $6.5 million, resulting in a gross profit of $4.7 million (or gross margin of 72.3%), which included the sale of a property used in hospitality operations for $1.4 million.
Current wording
During the nine months ended September 30, 2026, we had thirteen commercial, forestry and hospitality real estate sales totaling approximately 154 acres for $39.2 million, resulting in a gross profit of $29.0 million (or gross margin of 74.0%). The commercial, forestry and hospitality real estate sales during the nine months ended September 30, 2026, include the sale of the WindMark Beach Town Center for $10.3 million, resulting in a gross margin of approximately 62.5%, and the sale of two vacation rental properties used in hospitality operations for $7.1 million, resulting in a gross margin of approximately 63.4%. During the nine months ended September 30, 2025, we had eleven commercial, forestry and hospitality 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, forestry and hospitality 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.
Previous wording
Timber Revenue and Gross Profit. Timber revenue decreased $0.2 million, or 15.4%, to $1.1 million during the three months ended June 30, 2026, as compared to $1.3 million in the same period in 2025. There were 70,000 tons of wood products sold at an average price per ton of $15.30 during the three months ended June 30, 2026, as compared to 62,000 tons of wood products sold at an average price per ton of $19.64, during the same period in 2025. Timber gross margin was 81.8% during the three months ended June 30, 2026, as compared to 84.6% during the same period in 2025. The decrease in revenue and gross margin was primarily due to product mix sold in the current period.
Current wording
Timber Revenue and Gross Profit. Timber revenue and gross margin during the three months ended September 30, 2026 and 2025, were comparable. There were 61,000 tons of wood products sold at an average price per ton of $13.81 during the three months ended September 30, 2026, as compared to 56,000 tons of wood products sold at an average price per ton of $15.35, during the same period in 2025.
Previous 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.
Current wording
Timber revenue decreased $0.5 million, or 14.7%, to $2.9 million during the nine months ended September 30, 2026, as compared to $3.4 million in the same period in 2025. There were 183,000 tons of wood products sold at an average price per ton of $14.99 during the nine months ended September 30, 2026, as compared to 191,000 tons of wood products sold at an average price per ton of $16.45, during the same period in 2025. Timber gross margin was 79.3% during the nine months ended September 30, 2026, as compared to 82.4% during the same period in 2025. The decrease in revenue and gross margin was primarily due to lower sales prices, 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 $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.
Current wording
Other Revenue. Other revenue primarily consists of our Business Services revenue and mitigation bank credit sales. Other revenue increased $4.5 million during the three months ended September 30, 2026, compared to the same period in 2025. Other gross margin was 12.3% during the three months ended September 30, 2026, as compared to 10.0% 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
Other revenue increased $7.3 million during the six months ended June 30, 2026, compared to the same period in 2025. Other gross margin was 13.8% during the six months ended June 30, 2026, as compared to 38.1% 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 increased $11.6 million during the nine months ended September 30, 2026, compared to the same period in 2025. Other gross margin was 12.6% during the nine months ended September 30, 2026, as compared to 23.3% 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 $5.4 million, or 7.8%, to $74.2 million during the three months ended June 30, 2026, as compared to $68.8 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 average daily rate (“ADR”), occupancy and guest incidental spend. Hospitality gross margin increased to 41.1% during the three months ended June 30, 2026, compared to 38.5% 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.
Current wording
Hospitality revenue increased $5.4 million, or 8.9%, to $66.0 million during the three months ended September 30, 2026, as compared to $60.6 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 average daily rate (“ADR”), occupancy and guest incidental spend. Hospitality gross margin increased to 36.7% during the three months ended September 30, 2026, compared to 34.5% 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
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.
Current wording
Hospitality revenue increased $15.9 million, or 9.4%, to $184.9 million during the nine months ended September 30, 2026, as compared to $169.0 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 September 30, 2026, Watersound Club had 3,831 members, compared with 3,578 members as of September 30, 2025, a net increase of 253 members. As of both September 30, 2026 and 2025, we had 1,053 operational hotel rooms (excluding 245 hotel rooms related to unconsolidated JVs). Hospitality gross margin increased to 35.4% during the nine months ended September 30, 2026, compared to 32.4% 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 $1.5 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.
Current wording
Leasing revenue decreased $2.6 million, or 15.6%, to $14.1 million during the three months ended September 30, 2026, as compared to $16.7 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, the sale of townhomes in the Watersound Villas on the Fairway community since the end of the prior period and the sale of other operating properties in the current period. The decrease was partially offset by additional commercial property leases. Leasing gross margin increased to 57.4% during the three months ended September 30, 2026, as compared to 55.7% 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
Leasing revenue decreased $3.1 million, or 9.5%, to $29.7 million during the six months ended June 30, 2026, as compared to $32.8 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 60.6% during the six months ended June 30, 2026, as compared to 54.3% 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 $5.6 million, or 11.3%, to $43.8 million during the nine months ended September 30, 2026, as compared to $49.4 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, the sale of townhomes in the Watersound Villas on the Fairway community since the end of the prior period and the sale of other operating properties in the current period. The decrease was partially offset by additional commercial property leases.
Previous wording
Corporate and other operating expenses increased $0.8 million, or 12.5%, to $7.2 million during the three months ended June 30, 2026, as compared to $6.4 million in the same period in 2025. The increase in corporate and other operating expenses was primarily related to employee costs, owner association assessments, repairs and maintenance and marketing costs.
Current wording
Corporate and other operating expenses increased $1.1 million, or 15.9%, to $8.0 million during the three months ended September 30, 2026, as compared to $6.9 million in the same period in 2025. The increase in corporate and other operating expenses was primarily related to professional fees, employee costs and repairs and maintenance.
Previous 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.
Current wording
Corporate and other operating expenses increased $3.7 million, or 18.6%, to $23.6 million during the nine months ended September 30, 2026, as compared to $19.9 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 repairs and maintenance, marketing costs and professional fees.
Previous 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.
Current wording
Depreciation, depletion and amortization expense decreased $0.6 million during the three months ended September 30, 2026, as compared to the same period in 2025. Depreciation, depletion and amortization expense decreased $1.9 million during the nine months ended September 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 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 initial 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 $0.9 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.
Current wording
Interest expense decreased $1.0 million, or 12.8%, to $6.8 million during the three months ended September 30, 2026, as compared to $7.8 million in the same period in 2025. Interest expense decreased $2.5 million, or 10.7%, to $20.8 million during the nine months ended September 30, 2026, as compared to $23.3 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
Equity in income (loss) from unconsolidated joint ventures includes our proportionate share of earnings or losses of unconsolidated JVs accounted for using the equity method as detailed in the table below. See Note 4.Joint Venturesfor additional information.
Current wording
Equity in (loss) income from unconsolidated joint ventures includes our proportionate share of earnings or losses of unconsolidated JVs accounted for using the equity method and intra-entity profit elimination as detailed in the table below. See Note 4.Joint Venturesfor additional information.
Previous wording
Other expense, net primarily includes other income and expense items as detailed in the table below:
Current wording
Other (expense) income, net primarily includes other income and expense items as detailed in the table below:
Previous 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.
Current wording
Miscellaneous expense, net during the nine months ended September 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 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.
Previous 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.
Current wording
Income tax expense was $12.9 million during the three months ended September 30, 2026, as compared to $13.7 million during the same period in 2025. Our effective tax rate was 25.8% for the three months ended September 30, 2026, as compared to 25.5% during the same period in 2025.
Previous wording
Income tax expense was $18.6 million during the six months ended June 30, 2026, as compared to $15.8 million during the same period in 2025. Our effective tax rate was 25.6% for the six months ended June 30, 2026, as compared to 25.3% during the same period in 2025.
Current wording
Income tax expense was $31.5 million during the nine months ended September 30, 2026, as compared to $29.5 million during the same period in 2025. Our effective tax rate was 25.7% for the nine months ended September 30, 2026, as compared to 25.4% during the same period in 2025.
Previous 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.
Current wording
Our effective rate for the three and nine months ended September 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 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.
Current wording
Homesites. Revenue from homesite sales decreased $21.2 million, or 69.5%, during the three months ended September 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 September 30, 2026 and 2025, the average base revenue, excluding homesite residuals, per homesite sold was approximately $84,000 and $150,000, respectively, due to the mix of sales from different communities. Revenue includes estimated homesite residuals of $1.1 million and $0.9 million during the three months ended September 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 44.1% during the three months ended September 30, 2026, compared to 53.4% in the same period in 2025, primarily due to the cost, mix and number of homesites sold from different communities during each respective period. Gross margin may vary each period depending on the location of homesite sales.
Previous wording
Homes. During the three months ended June 30, 2026, we sold fifteen completed townhomes within our Watersound Villas on the Fairway community for a total of $8.2 million, resulting in a gross margin of 35.4%. During the three months ended June 30, 2025, we sold ten completed townhomes within our Watersound Villas on the Fairway community for a total of $5.5 million, resulting in a gross margin of 36.4%.
Current wording
Homes. During the three months ended September 30, 2026, we sold five completed townhomes within our Watersound Villas on the Fairway community for a total of $2.7 million, resulting in a gross margin of 37.0%. During the three months ended September 30, 2025, we sold eight completed townhomes within our Watersound Villas on the Fairway community for a total of $4.3 million, resulting in a gross margin of 37.2%.
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Rearranged current paragraphs (10)
Current report — wording carried from elsewhere
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
Current report — wording carried from elsewhere
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 report — wording carried from elsewhere
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
Current report — wording carried from elsewhere
69.4%. See Note 4.Joint Ventures and Note 18.Related Party Transactions for additional information. Unimproved residential land sales during the nine months ended September 30, 2026 also include a sale within our SummerCamp Beach community of $2.5 million. The revenue, gross profit and margin for each period was also 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 report — wording carried from elsewhere
September 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 46.6% during the nine months ended September 30, 2026, compared to 48.3% in the same period in 2025, primarily due to the cost, mix and number of homesites sold from different communities during each respective period. Gross margin may vary each period depending on the location of homesite sales.
Current report — wording carried from elsewhere
During the nine months ended September 30, 2026, we invested a total of $67.5 million for capital expenditures, which includes $37.3 million for our residential segment, $4.4 million for our hospitality segment, $22.0 million for our
Current report — wording carried from elsewhere
certain debt service coverage ratio over a prescribed period, which will be reassessed based on future performance. In addition, the guarantee can become full recourse in the case of the failure of guarantor to abide by or perform any of the covenants, warranties or other certain obligations to be performed on the part of such guarantor. See Note 8.Debt, Net for additional information.
Current report — wording carried from elsewhere
In September 2025, the Pier Park North JV refinanced into a $40.0 million loan. As of September 30, 2026 and December 31, 2025, $39.6 million and $39.9 million, respectively, was outstanding on the PPN JV Loan. The loan bears interest at a rate of 6.1% and matures in October 2035. The loan may not be prepaid prior to October 2029. Commencing in October 2029 through May 2035, any principal prepaid is subject to a prepayment fee equal to the greater of (i) a
Current report — wording carried from elsewhere
As of September 30, 2026 and December 31, 2025, we were required to provide surety bonds that guarantee completion and maintenance of certain infrastructure in certain development projects and mitigation banks, as well as
Current report — wording carried from elsewhere
We caution you that all forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors, including: our ability to successfully implement our strategic objectives; new or increased competition across our business units; any decline in general economic conditions, particularly in our primary markets; interest rate fluctuations; persistent inflation; elevated fuel costs; higher insurance costs and our ability to obtain adequate insurance coverage for our properties; financial institution disruptions; supply chain disruptions, including as a result of conflicts; geopolitical conflicts and political uncertainty and the corresponding impact on the global economy; the imposition of tariffs and uncertainty regarding trade policies; changes in consumer sentiment and
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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 report — wording carried elsewhere
Land sales. During the six 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 six months ended June 30, 2025, we did not have any unimproved land sales.
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Revenue from other hospitality operations increased $0.6 million, or 8.7%, during the six 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 20.0% during the six months ended June 30, 2026, compared to 13.0% during the same period in 2025. The increase in gross margin was primarily due to improvements in management of operating expenses.
Previous report — wording carried elsewhere
In 2020, the Pier Park Resort Hotel JV entered into a loan with an initial amount of $52.5 million up to a maximum of $60.0 million through additional earn-out requests. As of June 30, 2026 and December 31, 2025, $49.3 million and $49.8 million, respectively, was outstanding on the Pier Park Resort Hotel JV Loan. The loan matures in April 2027 and bears interest at a rate of SOFR plus 2.1%. The loan is secured by the real property and certain other Security Interests.
Previous report — wording carried elsewhere
in financing activities during the six months ended June 30, 2025, was partially offset by borrowings on debt of $27.8 million related to the refinance of the North Bay Landing Loan.