ST JOE Co
For the period ended Sep 30, 2024. Filed Oct 23, 2024.
View on SEC.govAbout this filing
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, 2024 · Filed Oct 23, 2024
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 2024-06-30; filed 2024-07-24.
0001558370-24-010049
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-10-23.
0001558370-24-013522
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 203 previous paragraphs and 203 current paragraphs.
100 unchanged; 85 reworded; 6 added; 5 removed; 13 previous and 12 current paragraphs rearranged.
Tables are not compared: 71 previous and 74 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 (6)
Current report
Commercial and Forestry Real Estate Revenue and Gross Profit. During the three months ended September 30, 2024, we had three commercial and forestry real estate sales totaling approximately 25 acres for $7.3 million, resulting in a gross profit of $4.1 million (or gross margin of 56.2%). During the three months ended September 30, 2023, we had five commercial and forestry real estate sales totaling approximately 29 acres for $3.1 million and land improvement services of less than $0.1 million, together resulting in a gross profit of $1.8 million (or gross margin of 58.1%).
Current report
had a gross margin of 34.1% during the three months ended September 30, 2024, compared to 23.8% during the same period in 2023. The increase in gross margin was primarily due to new assets being stabilized in the current period.
Current report
The increase of $0.3 million in depreciation, depletion and amortization expense during the three months ended September 30, 2024, as compared to the same period in 2023, was primarily due to new assets placed in service.
Current report
both opened in June 2023. Our hotels had a gross margin of 27.4% for the nine months ended September 30, 2024, compared to 18.3% during the same period in 2023. The increase in gross margin was primarily due to new assets being operational throughout the current period.
Current report
The increase of $4.6 million in depreciation, depletion and amortization expense during the nine months ended September 30, 2024, as compared to the same period in 2023, was primarily due to new properties placed in service.
Current report
The increase of $2.1 million in depreciation, depletion and amortization expense during the nine months ended September 30, 2024, as compared to the same period in 2023, was primarily due to new properties placed in service.
Removed paragraphs (5)
Previous report
Commercial and Forestry Real Estate Revenue and Gross Profit. During the three months ended June 30, 2024, we had a commercial and forestry real estate sale totaling approximately 168 acres for $0.7 million, with de minimis cost of revenue resulting in a gross profit margin of approximately of 100.0%. During the three months ended June 30, 2023, we had seven commercial and forestry real estate sales totaling approximately 130 acres for $5.1 million and land improvement services of $0.1 million, together resulting in a gross profit of $3.7 million (or gross margin of 71.2%).
Previous report
The increase of $4.3 million in depreciation, depletion and amortization expense during the six months ended June 30, 2024, as compared to the same period in 2023, was primarily due to new properties placed in service.
Previous report
The increase of $0.7 million in depreciation, depletion and amortization expense during the three months ended June 30, 2024, as compared to the same period in 2023, was primarily due to new properties placed in service.
Previous report
The increase of $1.4 million in depreciation, depletion and amortization expense during the six months ended June 30, 2024, as compared to the same period in 2023, was primarily due to new properties placed in service.
Previous report
Other (expense) income, net during the six months ended June 30, 2023, includes $0.5 million of income received from the Florida Division of Emergency Management’s TRBG program for recovery of lost income related to timber crop that was destroyed as a result of Hurricane Michael.
Reworded paragraphs (85)
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 focus on our core business activity of real estate development, asset management and operations. We continue to develop a broad range of asset types that we believe will provide acceptable rates of return, grow recurring revenues and support future business. Capital commitments will be funded with cash proceeds from completed projects, existing cash, owned-land, partner capital and financing arrangements. We do not anticipate immediate benefits from investments. Timing of projects may be subject
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 focus on our core business activity of real estate development, asset management and operations. We continue to develop a broad range of asset types that we believe will provide acceptable rates of return, grow recurring revenues and support future business. Capital commitments will be funded with cash proceeds from completed projects, existing cash, owned-land, partner capital and financing arrangements. We do not anticipate immediate benefits from investments. Timing of projects may be subject to delays caused by factors beyond our control. We may also choose to operate rather than lease assets, lease rather than sell assets, or sell improved rather than unimproved land that may delay revenue and profits.
Previous wording
Highlights for the second quarter of 2024 compared to the second quarter of 2023 include:
Current wording
Highlights for the third quarter and first nine months of 2024 compared to the third quarter and first nine months of 2023 include:
Previous wording
Throughout the first half of 2024, we continued to generate positive financial results. While macroeconomic factors such as inflation, elevated interest rates, higher insurance costs, supply chain disruptions, labor shortages, financial institution disruptions and geopolitical conflicts, among other things, continued to produce economic headwinds and impacted buyer sentiment, demand across our segments remains strong. We believe this is primarily due to the continued growth of Northwest Florida as a result of increased migration, which we attribute to the region’s high quality of life, natural beauty and outstanding amenities.
Current wording
Throughout the first nine months of 2024, we continued to generate positive financial results. While macroeconomic factors such as inflation, elevated interest rates, higher insurance costs, supply chain disruptions, labor shortages, financial institution disruptions and geopolitical conflicts, among other things, continued to produce economic headwinds and impacted buyer sentiment, demand across our segments remains strong. We believe this is primarily due to the continued growth of Northwest Florida as a result of increased migration, which we attribute to the region’s high quality of life, natural beauty and outstanding amenities.
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 has 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.
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.
Previous wording
Our residential segment includes the Watersound Origins, Watersound Origins West, Watersound Camp Creek, Breakfast Point East, Titus Park, Ward Creek, College Station, Park Place, Salt Creek at Mexico Beach, and WindMark Beach communities, which are large scale, multi-phase communities with current development activity, sales activity or future phases. Homesites in these communities are developed based on market demand and sold primarily to homebuilders and on a limited basis to retail customers.
Current wording
Our residential segment includes the Watersound Origins, Watersound Origins West, Watersound Camp Creek, Breakfast Point East, Titus Park, Bayside at Ward Creek, Breakwater at Ward Creek, Salt Grass at Ward Creek, College Station, Park Place, Salt Creek at Mexico Beach, and WindMark Beach communities, which are large scale, multi-phase communities with current development activity, sales activity or future phases. Homesites in these communities are developed based on market demand and sold primarily to homebuilders and on a limited basis to retail customers.
Previous wording
The Latitude Margaritaville Watersound community is a planned 55+ active adult residential community in Bay County, Florida. The community is located near the Intracoastal Waterway with convenient access to the Northwest Florida Beaches International Airport. The community is being developed through our unconsolidated Latitude Margaritaville Watersound JV with our partner Minto Communities USA, a homebuilder and community developer, and is estimated to include approximately 3,500 residential homes, which are being developed in smaller increments of discrete neighborhoods. As of June 30, 2024, the unconsolidated Latitude Margaritaville Watersound JV had 534 homes under contract, which are expected to result in a sales value to the JV of approximately $302.8 million at closing of the homes. See Note 4.Joint Ventures for additional information.
Current wording
The Latitude Margaritaville Watersound community is a planned 55+ active adult residential community in Bay County, Florida. The community is located near the Intracoastal Waterway with convenient access to the Northwest Florida Beaches International Airport. The community is being developed through our unconsolidated Latitude Margaritaville Watersound JV with our partner Minto Communities USA, a homebuilder and community developer, and is estimated to include approximately 3,500 residential homes, which are being developed in smaller increments of discrete neighborhoods. As of September 30, 2024, the unconsolidated Latitude Margaritaville Watersound JV had 426 homes under contract, which are expected to result in a sales value to the JV of approximately $254.4 million at closing of the homes. See Note 4.Joint Ventures for additional information.
Previous wording
As of June 30, 2024, we had nineteen different homebuilders within our residential communities. As of June 30, 2024, we had 1,303 residential homesites under contract, which are expected to result in revenue of approximately $114.0 million, plus residuals, at closing of the homesites over the next several years. By comparison, as of June 30, 2023, we had 1,825 residential homesites under contract, with an expected revenue of approximately $158.5 million, plus residuals. The change in homesites under contract is due to homesite transactions since the end of the prior period and the amount of remaining homesites in current phases of the residential communities. The number of homesites under contract is subject to change based on homesite closings and new sales activity. Homesite prices vary significantly by community and often sell in concentrated transactions that may impact quarterly results. As of June 30, 2024, in addition to the 1,303 homesites under contract in other residential communities, our unconsolidated Latitude Margaritaville Watersound JV had 534 homes under contract, which together with the 1,303 homesites are expected to result in a sales value of approximately $416.8 million at closing of the homesites and homes.
Current wording
As of September 30, 2024, we had nineteen different homebuilders within our residential communities. As of September 30, 2024, we had 1,381 residential homesites under contract, which are expected to result in revenue of approximately $122.3 million, plus residuals, at closing of the homesites over the next several years. By comparison, as of September 30, 2023, we had 1,575 residential homesites under contract, with an expected revenue of approximately $135.5 million, plus residuals. The change in homesites under contract is due to homesite transactions since the end of the prior period and the amount of remaining homesites in current phases of the residential communities. The number of homesites under contract is subject to change based on homesite closings and new sales activity. Homesite prices vary significantly by community and often sell in concentrated transactions that may impact quarterly results. As of September 30, 2024, in addition to the 1,381 homesites under contract in other residential communities, our unconsolidated Latitude Margaritaville Watersound JV had 426 homes under contract, which together with the 1,381 homesites are expected to result in a sales value of approximately $376.7 million at closing of the homesites and homes.
Previous wording
vacation rentals, food and beverage operations, merchandise sales, marina operations (including boat slip rentals, boat storage fees and fuel sales), charter flights, other resort and entertainment activities and beach clubs, which includes operation of the WaterColor Beach Club. Hospitality revenue is generally recognized at the point in time services are provided and represent a single performance obligation with a fixed transaction price. Hospitality revenue recognized over time includes non-refundable club membership initiation fees, club membership dues and other membership fees. The hospitality segment incurs costs from the services and goods provided, personnel costs, maintenance of the facilities and holding costs of the assets. From time to time, we may explore the sale of certain hospitality properties, the development of new hospitality properties, as well as new entertainment and management opportunities. Some of our JV assets and other assets incur interest and financing expenses related to the loans as described in Note 9.Debt, Net.
Current wording
Our hospitality segment features a private membership club (the “Watersound Club”), hotel operations, food and beverage operations, golf courses, beach clubs, retail outlets, gulf-front vacation rentals, marinas and other entertainment assets. The hospitality segment generates revenue from membership sales, golf courses, lodging at our hotels, short-term vacation rentals, food and beverage operations, merchandise sales, marina operations (including boat slip rentals, boat storage fees and fuel sales), charter flights, other resort and entertainment activities and beach clubs, which includes operation of the WaterColor Beach Club. Hospitality revenue is generally recognized at the point in time services are provided and represent a single performance obligation with a fixed transaction price. Hospitality revenue recognized over time includes non-refundable club membership initiation fees, club membership dues and other membership fees. The hospitality segment incurs costs from the services and goods provided, personnel costs, maintenance of the facilities and holding costs of the assets. From time to time, we may explore the sale of certain hospitality properties, the development of new hospitality properties, as well as new entertainment and management opportunities. Some of our JV assets and other assets incur interest and financing expenses related to the loans as described in Note 9.Debt, Net.
Previous wording
The commercial segment generates leasing revenue and incurs leasing expenses primarily from maintenance and management of our properties, personnel costs and asset holding costs. Our commercial segment generates revenue from the sale of developed and undeveloped land, timber holdings or land with limited development and/or entitlements and the sale of commercial operating properties. Real estate sales in our commercial segment incur costs of revenue directly associated with the land, development, construction, timber and selling costs. Our commercial segment generates timber revenue primarily from open market sales of timber on site without the associated delivery costs. Some of our JV assets and other assets incur interest and financing expenses related to loans as described in Note 9.Debt, Net.
Current wording
The commercial segment generates leasing revenue and incurs leasing expenses primarily from maintenance and management of our properties, personnel costs and asset holding costs. Our commercial segment generates revenue from the sale of developed and undeveloped land, timber holdings or land with limited development and/or entitlements and the sale of commercial operating properties. Real estate sales in our commercial segment incur costs of revenue directly associated with the land, development, construction, timber and selling costs. Our commercial segment generates timber
Previous wording
Our leasing portfolio consists of approximately 1,100,000 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. Through an unconsolidated JV, an additional golf cart sales showroom, located in Walton County, Florida, is operated by our JV partner.
Current wording
As of September 30, 2024, our leasing portfolio consists of approximately 1,179,000 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. Through an unconsolidated JV, an additional golf cart sales showroom, located in Walton County, Florida, is operated by our JV partner.
Previous wording
The discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We base these estimates on historical experience, available current market information and on various other assumptions that management believes are reasonable under the circumstances. Additionally, we evaluate the results of these estimates on an on-going basis. Management’s estimates form the basis for making judgments about the carrying values of assets and liabilities that are
Current wording
The discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We base these estimates on historical experience, available current market information and on various other assumptions that management believes are
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, 2023. There have been no significant changes in these policies during the first six months of 2024, 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, 2023. There have been no significant changes in these policies during the first nine months of 2024, 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. For example, in the second quarter of 2023, we had an extraordinarily high number of homesites that were completed and sold, fueled by the completion and sale of a new phase of 133 homesites in the Watersound Origins community. As a result, revenue for our residential segment varied significantly for the second quarter of 2024 relative to the prior period. 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 residential or commercial real estate sales. We may also choose to operate rather than lease assets, lease rather than sell assets, or sell improved rather than unimproved land that may delay revenue and profits.
Previous wording
Residential Real Estate Revenue and Gross Profit. During the three months ended June 30, 2024, residential real estate revenue decreased $31.7 million, or 50.0%, to $31.7 million, as compared to $63.4 million during the same period in 2023. During the three months ended June 30, 2024, residential real estate gross profit decreased $18.2 million to $15.9 million (or gross margin of 50.2%), as compared to $34.1 million (or gross margin of 53.8%) during the same period in 2023. During the three months ended June 30, 2024, we sold 186 homesites, compared to 300 homesites during the same period in 2023. During the three months ended June 30, 2024 and 2023, the average base revenue, excluding homesite residuals, per homesite sold was approximately $140,000 and $153,000, respectively, due to the mix of sales from different communities. The revenue, gross profit and margin for each period was impacted by the difference in pricing among the communities, the difference in the cost of the homesite development and the volume of sales within each of the communities. The number of homesites sold varied each period due to the timing of homebuilder contractual closing obligations in our residential communities.
Current wording
Residential Real Estate Revenue and Gross Profit. During the three months ended September 30, 2024, residential real estate revenue decreased $16.5 million, or 46.5%, to $19.0 million, as compared to $35.5 million during the same period in 2023. During the three months ended September 30, 2024, residential real estate gross profit decreased $8.9 million to $7.5 million (or gross margin of 39.5%), as compared to $16.4 million (or gross margin of 46.2%) during the same period in 2023. During the three months ended September 30, 2024, we sold 179 homesites, compared to 254 homesites during the same period in 2023. During the three months ended September 30, 2024 and 2023, the average base revenue, excluding homesite residuals, per homesite sold was approximately $86,000 and $103,000, respectively, due to the mix of sales from different communities. The revenue, gross profit and margin for each period was impacted by the difference in pricing among the communities, the difference in the cost of the homesite development and the volume of sales within each of the communities. The number of homesites sold varied each period due to the timing of homebuilder contractual closing obligations in our residential communities.
Previous wording
During the six months ended June 30, 2024, residential real estate revenue decreased $28.9 million, or 31.6%, to $62.5 million, as compared to $91.4 million during the same period in 2023. During the six months ended June 30, 2024, residential real estate gross profit decreased $14.2 million to $31.7 million (or gross margin of 50.7%), as compared to $45.9 million (or gross margin of 50.2%) during the same period in 2023. During the six months ended June 30, 2024, we sold 402 homesites, compared to 627 homesites and unimproved residential land sales of $0.6 million during the same period in 2023. During the six months ended June 30, 2024 and 2023, the average base revenue, excluding homesite residuals, per homesite sold was approximately $128,000 and $105,000, respectively, due to the mix of sales from different communities. Homesite sales in the prior period include the sale of 100 entitled but undeveloped homesites sold within the SouthWood community, which reduced the average price per homesite. The revenue, gross profit and margin for each period was impacted by the difference in pricing among the communities, the difference in the cost of the homesite development and the volume of sales within each of the communities. The number of homesites sold varied each period due to the timing of homebuilder contractual closing obligations in our residential communities.
Current wording
During the nine months ended September 30, 2024, residential real estate revenue decreased $45.4 million, or 35.8%, to $81.5 million, as compared to $126.9 million during the same period in 2023. During the nine months ended September 30, 2024, residential real estate gross profit decreased $23.2 million to $39.1 million (or gross margin of 48.0%), as compared to $62.3 million (or gross margin of 49.1%) during the same period in 2023. During the nine months ended September 30, 2024, we sold 581 homesites, compared to 881 homesites and unimproved residential land sales of $0.6 million during the same period in 2023. During the nine months ended September 30, 2024 and 2023, the average base revenue, excluding homesite residuals, per homesite sold was approximately $115,000 and $105,000, respectively, due to the mix of sales from different communities. Homesite sales in the prior period include the sale of 100 entitled but undeveloped homesites sold within the SouthWood community, which reduced the average price per homesite. The revenue, gross profit and margin for each period was impacted by the difference in pricing among the communities, the difference in the cost of the homesite development and the volume of sales within each of the communities. The number of homesites sold varied each period due to the timing of homebuilder contractual closing obligations in our residential communities.
Previous wording
During the six months ended June 30, 2024, we had three commercial and forestry real estate sales totaling approximately 243 acres for $2.1 million, resulting in a gross profit of $1.8 million (or gross margin of 85.7%). During the six months ended June 30, 2023, we had sixteen commercial and forestry real estate sales totaling approximately 183 acres for $10.8 million and land improvement services of $0.3 million, together resulting in a gross profit of $6.4 million (or gross margin of 57.7%).
Current wording
During the nine months ended September 30, 2024, we had six commercial and forestry real estate sales totaling approximately 268 acres for $9.4 million, resulting in a gross profit of $5.8 million (or gross margin of 61.7%). During the nine months ended September 30, 2023, we had twenty-one commercial and forestry real estate sales totaling approximately 212 acres for $13.9 million and land improvement services of $0.3 million, together resulting in a gross profit of $8.2 million (or gross margin of 57.7%).
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, 2024, as compared to $1.3 million in the same period in 2023. The decrease was primarily due to a decrease in tons of wood products sold and prices in the current period. There were 67,000 tons of wood products sold at an average price per ton of $14.09 during the three months ended June 30, 2024, as compared to 72,000 tons of wood products sold at an average price per ton of $16.08, during the same period in 2023. Timber gross margin was 72.7% during the three months ended June 30, 2024, as compared to 84.6% during the same period in 2023. The decrease was primarily due to less tons of wood products sold and lower prices in the current period.
Current wording
Timber Revenue and Gross Profit. Timber revenue decreased $0.3 million, or 30.0%, to $0.7 million during the three months ended September 30, 2024, as compared to $1.0 million in the same period in 2023. The decrease was primarily due to a decrease in tons of wood products sold and prices in the current period. There were 45,000 tons of wood products sold at an average price per ton of $13.35 during the three months ended September 30, 2024, as compared to 48,000 tons of wood products sold at an average price per ton of $17.77, during the same period in 2023. Timber gross margin was 71.4% during the three months ended September 30, 2024, as compared to 80.0% during the same period in 2023. The decrease was primarily due to less tons of wood products sold and lower prices in the current period.
Previous wording
Timber revenue decreased $0.7 million, or 23.3%, to $2.3 million during the six months ended June 30, 2024, as compared to $3.0 million in the same period in 2023. The decrease was primarily due to a decrease in tons of wood products sold and prices in the current period. There were 142,000 tons of wood products sold at an average price per ton of $14.48 during the six months ended June 30, 2024, as compared to 167,000 tons of wood products sold at an average price per ton of $16.28, during the same period in 2023. Timber gross margin was 82.6% during the six months ended June 30, 2024, as compared to 86.7% during the same period in 2023. The decrease was primarily due to less tons of wood products sold and lower prices in the current period.
Current wording
Timber revenue decreased $1.1 million, or 27.5%, to $2.9 million during the nine months ended September 30, 2024, as compared to $4.0 million in the same period in 2023. The decrease was primarily due to a decrease in tons of wood products sold and prices in the current period. There were 186,000 tons of wood products sold at an average price per ton of $14.21 during the nine months ended September 30, 2024, as compared to 216,000 tons of wood products sold at an average price per ton of $16.62, during the same period in 2023. Timber gross margin was 79.3% during the nine months ended September 30, 2024, as compared to 85.0% during the same period in 2023. The decrease was primarily due to less tons of wood products sold and lower prices in the current period.
Previous wording
Hospitality revenue increased $17.2 million, or 38.1%, to $62.3 million during the three months ended June 30, 2024, as compared to $45.1 million in the same period in 2023. The increase in hospitality revenue was primarily related to the continued increase of club members and opening of new Camp Creek amenities in April 2023, as well as an increase in lodging revenue. The increase in lodging revenue was primarily related to Embassy Suites by Hilton Panama City Beach Resort, which opened in April 2023; and the Home2 Suites by Hilton Santa Rosa Beach, Hotel Indigo Panama City Marina and Camp Creek Inn, which all opened in June 2023. Hospitality had a gross margin of 39.2% during the three months ended June 30, 2024, compared to 26.2% during the same period in 2023. The increase in gross margin was primarily due to new assets being operational throughout the current period.
Current wording
Hospitality revenue increased $8.0 million, or 16.9%, to $55.4 million during the three months ended September 30, 2024, as compared to $47.4 million in the same period in 2023. The increase in hospitality revenue was primarily related to the growth in membership dues and membership ancillary spend, opening of new Camp Creek amenities in April 2023, as well as an increase in lodging revenue. The increase in lodging revenue was primarily related to Embassy Suites by Hilton Panama City Beach Resort, which opened in April 2023; and the Home2 Suites by Hilton Santa Rosa Beach, Hotel Indigo Panama City Marina and Camp Creek Inn, which all opened in June 2023. Hospitality
Previous wording
Hospitality revenue increased $32.0 million, or 46.0%, to $101.6 million during the six months ended June 30, 2024, as compared to $69.6 million in the same period in 2023. The increase in hospitality revenue was primarily related to the continued increase of club members and opening of new Camp Creek amenities in April 2023, as well as an increase in lodging revenue. The increase in lodging revenue was related to Embassy Suites by Hilton Panama City Beach Resort, which opened in April 2023; The Lodge 30A, which opened in February 2023; and Home2 Suites by Hilton Santa Rosa Beach, Hotel Indigo Panama City Marina and Camp Creek Inn, which all opened in June 2023. As of June 30, 2024, Watersound Club had 3,571 members, compared with 2,853 members as of June 30, 2023, an increase of 718 members. As of both June 30, 2024 and 2023, we had 1,053 operational hotel rooms (excluding 245 hotel rooms related to unconsolidated JVs). Hospitality had a gross margin of 32.9% during the six months ended June 30, 2024, compared to 19.3% during the same period in 2023. The increase in gross margin was primarily due to new assets being operational throughout the current period.
Current wording
Hospitality revenue increased $40.0 million, or 34.2%, to $157.0 million during the nine months ended September 30, 2024, as compared to $117.0 million in the same period in 2023. The increase in hospitality revenue was primarily related to the growth in membership dues and membership ancillary spend, opening of new Camp Creek amenities in April 2023, as well as an increase in lodging revenue. The increase in lodging revenue was related to Embassy Suites by Hilton Panama City Beach Resort, which opened in April 2023; The Lodge 30A, which opened in February 2023; and Home2 Suites by Hilton Santa Rosa Beach, Hotel Indigo Panama City Marina and Camp Creek Inn, which all opened in June 2023. As of September 30, 2024, Watersound Club had 3,532 members, compared with 3,088 members as of September 30, 2023, an increase of 444 members. As of both September 30, 2024 and 2023, we had 1,053 operational hotel rooms (excluding 245 hotel rooms related to unconsolidated JVs). Hospitality had a gross margin of 33.3% during the nine months ended September 30, 2024, compared to 21.0% during the same period in 2023. The increase in gross margin was primarily due to new assets being operational throughout the current period.
Previous wording
Leasing revenue increased $2.4 million, or 19.4%, to $14.8 million during the three months ended June 30, 2024, as compared to $12.4 million in the same period in 2023. The increase was primarily due to new multi-family and marina leases, as well as other new leases. Leasing gross margin was 50.7% during the three months ended June 30, 2024, as compared to 47.6% during the same period in 2023. The increase in leasing gross margin was primarily due to new leases, as well as new assets being operational throughout the current period.
Current wording
Leasing revenue increased $2.5 million, or 19.1%, to $15.6 million during the three months ended September 30, 2024, as compared to $13.1 million in the same period in 2023. The increase was primarily due to new multi-family and commercial property leases, as well as other new leases. Leasing gross margin was 50.0% during the three months ended September 30, 2024, as compared to 48.1% during the same period in 2023. The increase in leasing gross margin was primarily due to new leases, as well as new assets being operational throughout the current period.
Previous wording
Leasing revenue increased $4.9 million, or 20.2%, to $29.1 million during the six months ended June 30, 2024, as compared to $24.2 million in the same period in 2023. The increase was primarily due to new multi-family and marina leases, as well as other new leases. Leasing gross margin was 50.2% during the six months ended June 30, 2024, as compared to 50.8% during the same period in 2023.
Current wording
Leasing revenue increased $7.5 million, or 20.2%, to $44.7 million during the nine months ended September 30, 2024, as compared to $37.2 million in the same period in 2023. The increase was primarily due to new multi-family, commercial property and marina leases, as well as other new leases. Leasing gross margin was 50.3% during the nine months ended September 30, 2024, as compared to 49.7% during the same period in 2023.
Previous wording
Corporate and other operating expenses increased $0.4 million to $5.9 million during the three months ended June 30, 2024, as compared to $5.5 million in the same period in 2023. Corporate and other operating expenses increased $1.6 million to $12.9 million during the six months ended June 30, 2024, as compared to $11.3 million in the same period in 2023. The increases were primarily due to employee costs for bonuses and restricted stock awards. See Note 14.Stockholders’ Equity for additional information related to the issuance of common stock for employee compensation.
Current wording
Corporate and other operating expenses decreased $0.2 million to $6.0 million during the three months ended September 30, 2024, as compared to $6.2 million in the same period in 2023. Corporate and other operating expenses increased $1.5 million to $18.9 million during the nine months ended September 30, 2024, as compared to $17.4 million in the same period in 2023. The increases were primarily due to employee costs for bonuses and restricted stock awards. See Note 14.Stockholders’ Equity for additional information related to the issuance of common stock for employee compensation.
Previous wording
Depreciation, depletion and amortization expense increased $1.8 million and $5.7 million during the three and six months ended June 30, 2024, respectively, as compared to the same periods in 2023, primarily due to new hospitality and commercial assets placed in service.
Current wording
Depreciation, depletion and amortization expense increased $1.1 million and $6.8 million during the three and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023, primarily due to new hospitality and commercial assets placed in service.
Previous wording
Investment income, net increased $0.2 million to $3.4 million for the three months ended June 30, 2024, as compared to $3.2 million in the same period in 2023. Investment income, net increased $0.7 million to $6.8 million for the six months ended June 30, 2024, as compared to $6.1 million in the same period in 2023. The increases were primarily due to the change in cash and cash equivalents held and higher interest rates earned in the current period. See Note 16.Other Income, Net* *for additional information.
Current wording
Investment income, net was $3.5 million for the three months ended September 30, 2024, as compared to $3.6 million in the same period in 2023. Investment income, net increased $0.5 million to $10.3 million for the nine months ended September 30, 2024, as compared to $9.8 million in the same period in 2023. The increase was primarily due to the change in cash and cash equivalents held and higher interest rates earned in the current period. See Note 16.Other Income, Net* *for additional information.
Previous wording
Interest expense increased $1.3 million, or 18.1%, to $8.5 million during the three months ended June 30, 2024, as compared to $7.2 million in the same period in 2023. Interest expense increased $3.7 million, or 27.6%, to $17.1 million during the six months ended June 30, 2024, as compared to $13.4 million in the same period in 2023. The increase in interest expense is primarily related to completion of projects where interest expense is no longer capitalized and the increase in project financing. See Note 9.Debt, Net and Note 16.Other Income, Net for additional information regarding project financing.
Current wording
Interest expense for the three months ended September 30, 2024 and 2023 were comparable. Interest expense increased $3.7 million, or 17.0%, to $25.5 million during the nine months ended September 30, 2024, as compared to $21.8 million in the same period in 2023. The increase in interest expense is primarily related to completion of projects where interest expense is no longer capitalized and the increase in project financing. See Note 9.Debt, Net and Note 16.Other Income, Net for additional information regarding project financing.
Previous wording
Other (expense) income, net decreased $1.6 million to expense of $0.1 million during the three months ended June 30, 2024, as compared to $1.5 million of income in the same period in 2023. Other (expense) income, net decreased $2.6 million to expense of $0.5 million during the six months ended June 30, 2024, as compared to $2.1 million of income in the same period in 2023. Accretion income from retained interest investments includes accretion of investment income over the life of the retained interest using the effective yield method, prior to optional prepayment, in full, of the installment notes in August 2023. Miscellaneous (expense) income, net during the six months ended June 30, 2024, includes a $0.5 million net loss on disposal of assets. Miscellaneous (expense) income, net during the three and six months ended June 30, 2023, includes $0.5 million of income received from the Florida Division of Emergency
Current wording
accretion of investment income over the life of the retained interest using the effective yield method, prior to optional prepayment, in full, of the installment notes in August 2023. Miscellaneous (expense) income, net during the nine months ended September 30, 2024, includes a $0.6 million net loss on disposal of assets. Miscellaneous (expense) income, net during the three and nine months ended September 30, 2023, includes $0.5 million and $1.1 million, respectively, of income received from the Florida Division of Emergency Management’s TRBG program for recovery of lost income related to timber crop that was destroyed as a result of Hurricane Michael in 2018. Miscellaneous (expense) income, net during the nine months ended September 30, 2023, also includes a $0.4 million gain on retained interest investment. Miscellaneous (expense) income, net during the three and nine months ended September 30, 2023, includes $0.4 million and $0.6 million, respectively, of expense for cleanup of damaged timber as a result of Hurricane Michael. See Note 16.Other Income, Net for additional information.
Previous wording
Income tax expense was $8.3 million during the three months ended June 30, 2024, as compared to $11.5 million during the same period in 2023. Our effective tax rate was 25.3% for the three months ended June 30, 2024, as compared to 24.9% during the same period in 2023.
Current wording
Income tax expense was $6.4 million during the three months ended September 30, 2024, as compared to $6.8 million during the same period in 2023. Our effective tax rate was 27.6% for the three months ended September 30, 2024, as compared to 25.8% during the same period in 2023.
Previous wording
Income tax expense was $13.0 million during the six months ended June 30, 2024, as compared to $14.9 million during the same period in 2023. Our effective tax rate was 25.2% for the six months ended June 30, 2024, as compared to 24.9% during the same period in 2023.
Current wording
Income tax expense was $19.3 million during the nine months ended September 30, 2024, as compared to $21.7 million during the same period in 2023. Our effective tax rate was 25.9% for the nine months ended September 30, 2024, as compared to 25.2% during the same period in 2023.
Previous wording
Our effective rate for the three and six months ended June 30, 2024 and 2023, differed from the federal statutory rate of 21.0% primarily due to state income taxes, tax credits and other permanent differences. See Note 12.Income Taxes for additional information.
Current wording
Our effective rate for the three and nine months ended September 30, 2024 and 2023, differed from the federal statutory rate of 21.0% primarily due to state income taxes, tax credits and other permanent differences. See Note 12.Income Taxes for additional information.
Previous wording
Homesites. Revenue from homesite sales decreased $31.6 million, or 52.8%, during the three months ended June 30, 2024, as compared to the same period in 2023, 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, 2024 and 2023, the average base revenue, excluding homesite residuals, per homesite sold was approximately $140,000 and $153,000, respectively, due to the mix of sales from different communities. Revenue includes estimated homesite residuals of $0.5 million and $11.9 million during the three months ended June 30, 2024 and 2023, respectively. The decrease in estimated homesite residuals was due to themix and number of homesites sold per community in the current period. Gross margin decreased to 52.3% during the three months ended June 30, 2024, as compared to 53.8% during the same period in 2023, primarily due to the cost, mix and number of homesites sold from different communities during each respective period. Gross margin may vary each period depending on the location of homesite sales.
Current wording
Homesites. Revenue from homesite sales decreased $15.6 million, or 48.0%, during the three months ended September 30, 2024, as compared to the same period in 2023, 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, 2024 and 2023, the average base revenue, excluding homesite residuals, per homesite sold was approximately $86,000 and $103,000, respectively, due to the mix of sales from different communities. Revenue does not include any estimated homesite residuals during the three months ended September 30, 2024. Revenue includes estimated homesite residuals of $4.9 million during the three months ended September 30, 2023. Estimated homesite residuals vary based on themix and number of homesites sold in specific communities during the period. Gross margin decreased to 39.1% during the three months ended September 30, 2024, as compared to 44.6% during the same period in 2023, 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
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 $0.9 million and $1.8 million, during the three months ended June 30, 2024 and 2023, respectively.
Current wording
Other revenue includes tap and impact fee credits sold, marketing fees and other fees. Other revenue includes estimated fees related to homebuilder homesite sales of $0.6 million and $1.5 million, during the three months ended September 30, 2024 and 2023, respectively.
Previous wording
Equity in income from unconsolidated joint ventures includes our proportionate share of earnings or losses of an unconsolidated JV accounted for by the equity method. Equity in income from unconsolidated joint ventures increased $0.6 million during the three months ended June 30, 2024, as compared to the same period in 2023. The increase was due to a higher average margin per home sold during the current period related to our unconsolidated Latitude Margaritaville Watersound JV. The Latitude Margaritaville Watersound JV completed 163 home sale transactions during the three months ended June 30, 2024, compared to 164 home sale transactions during the same period in 2023. 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 by the equity method. Equity in income from unconsolidated joint ventures decreased $0.4 million during the three months ended September 30, 2024, as compared to the same period in 2023. The decrease was due to additional costs for warranties, construction supervision and higher Margaritaville trademark licensing fees in the current period, partially offset by a higher average margin per home sold during the current period related to our unconsolidated Latitude Margaritaville Watersound JV. The Latitude Margaritaville Watersound JV completed 189 home sale transactions during each of the three months ended September 30, 2024 and 2023. See Note 4.Joint Venturesfor additional information.
Previous wording
Homesites. Revenue from homesite sales decreased $28.4 million, or 33.2%, during the six months ended June 30, 2024, as compared to the same period in 2023, primarily due to the mix and number of homesites sold per community and the timing of homebuilder contractual closing obligations in our residential communities. During the six months ended June 30, 2024 and 2023, the average base revenue, excluding homesite residuals, per homesite sold was approximately $128,000 and $105,000, respectively, due to the mix of sales from different communities. Homesite sales in the prior period include the sale of 100 entitled but undeveloped homesites sold within the SouthWood community, which reduced the average price per homesite. Revenue includes estimated homesite residuals of $2.6 million and $15.1 million during the six months ended June 30, 2024 and 2023, respectively. The decrease in estimated homesite residuals was due to themix and number of homesites sold per community in the current period. Gross margin increased to 51.1% during the six months ended June 30, 2024, as compared to 49.9% during the same period in 2023, primarily due to the cost, mix and number of homesites sold from different communities during each respective period. Gross margin may vary each period depending on the location of homesite sales.
Current wording
Homesites. Revenue from homesite sales decreased $44.0 million, or 37.3%, during the nine months ended September 30, 2024, as compared to the same period in 2023, primarily due to the mix and number of homesites sold per community and the timing of homebuilder contractual closing obligations in our residential communities. During the nine months ended September 30, 2024 and 2023, the average base revenue, excluding homesite residuals, per homesite sold was approximately $115,000 and $105,000, respectively, due to the mix of sales from different communities. Homesite sales in the prior period include the sale of 100 entitled but undeveloped homesites sold within the SouthWood community, which reduced the average price per homesite. Revenue includes estimated homesite residuals of $2.6 million and $20.0 million during the nine months ended September 30, 2024 and 2023, respectively. The decrease in estimated homesite residuals was due to themix and number of homesites sold in specific communities during the current period. Gross margin was 48.4% during both the nine months ended September 30, 2024 and 2023. Gross margin may vary each period depending on the location of homesite sales.
Previous wording
*Land sales.*During the six months ended June 30, 2024, we did not have any unimproved land sales. During the six months ended June 30, 2023, we had unimproved residential land sales of $0.6 million, resulting in a gross margin of approximately 83.3%.
Current wording
*Land sales.*During the nine months ended September 30, 2024, we did not have any unimproved land sales. During the nine months ended September 30, 2023, we had unimproved residential land sales of $0.6 million, resulting in a gross margin of approximately 83.3%.
Previous wording
Other revenue includes tap and impact fee credits sold, marketing fees and other fees. Other revenue includes estimated fees related to homebuilder homesite sales of $1.6 million and $2.9 million, during the six months ended June 30, 2024 and 2023, 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 $2.2 million and $4.4 million, during the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
Gain on contributions to unconsolidated joint ventures for the six months ended June 30, 2024 and 2023, includes a gain of less than $0.1 million and $0.6 million, respectively, on additional infrastructure improvements contributed to our unconsolidated Latitude Margaritaville Watersound JV. See Note 4.Joint Ventures for additional information.
Current wording
Gain on contributions to unconsolidated joint ventures for the nine months ended September 30, 2024 and 2023, include a gain of less than $0.1 million and $0.6 million, respectively, on additional infrastructure improvements contributed to our unconsolidated Latitude Margaritaville Watersound JV. See Note 4.Joint Ventures 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 by the equity method. Equity in income from unconsolidated joint ventures increased $5.0 million during the six months ended June 30, 2024, as compared to the same period in 2023. The increase was due to a higher average margin per home sold and the increased volume of home sale transactions during the current period related to our unconsolidated Latitude Margaritaville Watersound JV. The Latitude Margaritaville Watersound JV completed 340 home sale transactions during the six months ended June 30, 2024, compared to 313 home sale transactions during the same period in 2023. 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 by the equity method. Equity in income from unconsolidated joint ventures increased $4.6 million during the nine months ended September 30, 2024, as compared to the same period in 2023. The increase was due to a higher average margin per home sold and the increased volume of home sale transactions during the current period related to our unconsolidated Latitude Margaritaville Watersound JV. The Latitude Margaritaville Watersound JV completed 529 home sale transactions during the nine months ended September 30, 2024, compared to 502 home sale transactions during the same period in 2023. See Note 4.Joint Venturesfor additional information.
Previous wording
Revenue from our clubs increased $8.3 million, or 62.4%, during the three months ended June 30, 2024, as compared to the same period in 2023. The increase in revenue in the current period was due to increases in the number of club members and membership revenue, as well as the opening of new Camp Creek amenities in April 2023 and
Current wording
Revenue from our clubs increased $5.6 million, or 38.1%, during the three months ended September 30, 2024, as compared to the same period in 2023. The increase in revenue in the current period was due to growth in membership
Previous wording
Camp Creek Inn in June 2023. Our clubs gross margin was 44.9% during the three months ended June 30, 2024, compared to 27.8% during the same period in 2023. The increase in gross margin was primarily due to new assets being operational throughout the current period.
Current wording
dues and membership ancillary spend, as well as the opening of new Camp Creek amenities in April 2023 and Camp Creek Inn in June 2023. Our clubs gross margin was 43.3% during the three months ended September 30, 2024, compared to 21.8% during the same period in 2023. The increase in gross margin was primarily due to new assets being stabilized during the current period.
Showing the first 40 of 85 pairs. Open the source sections for the rest.
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Current report — wording carried from elsewhere
revenue primarily from open market sales of timber on site without the associated delivery costs. Some of our JV assets and other assets incur interest and financing expenses related to loans as described in Note 9.Debt, Net.
Current report — wording carried from elsewhere
reasonable under the circumstances. Additionally, we evaluate the results of these estimates on an on-going basis. Management’s estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions and our accounting estimates are subject to change.
Current report — wording carried from elsewhere
Other (expense) income, net decreased $1.3 million to expense of $0.1 million during the three months ended September 30, 2024, as compared to $1.2 million of income in the same period in 2023. Other (expense) income, net decreased $3.9 million to expense of $0.6 million during the nine months ended September 30, 2024, as compared to $3.3 million of income in the same period in 2023. Accretion income from retained interest investments includes
Current report — wording carried from elsewhere
We did not have any gain on contributions to unconsolidated joint ventures for the three months ended September 30, 2024. Gain on contributions to unconsolidated joint ventures for the three months ended September 30, 2023, includes a gain of $0.1 million on additional infrastructure improvements contributed to our unconsolidated Latitude Margaritaville Watersound JV. See Note 4.Joint Ventures for additional information.
Current report — wording carried from elsewhere
Interest expense primarily includes interest incurred from our hospitality project financing. See Note 9.Debt, Net for additional information.
Current report — wording carried from elsewhere
Leasing revenue includes marina boat slip and dry storage rental, as well as leases of other hospitality assets. Leasing revenue increased $1.2 million, or 80.0%, during the nine months ended September 30, 2024, as compared to the same period in 2023, primarily due to increased occupancy at our marinas and other hospitality assets.
Current report — wording carried from elsewhere
The increase of $0.8 million in depreciation, depletion and amortization expense during the three months ended September 30, 2024, as compared to the same period in 2023, was primarily due to new properties placed in service.
Current report — wording carried from elsewhere
Interest expense primarily includes interest incurred from our commercial project financing and CDD debt. See Note 9.Debt, Net for additional information.
Current report — wording carried from elsewhere
In 2020, a wholly-owned subsidiary of ours entered into a $5.8 million loan, which is guaranteed by us. As of both September 30, 2024 and December 31, 2023, $4.7 million was outstanding on the Self-Storage Facility Loan. The loan
Current report — wording carried from elsewhere
As of September 30, 2024 and December 31, 2023, 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
$69.0 million, capital distributions from unconsolidated joint ventures of $0.2 million and maturities of assets held by SPEs of $0.8 million.
Current report — wording carried from elsewhere
population expansion in our regions of development, particularly Northwest Florida; our ability to fully recover from natural disasters and severe weather conditions; the actual or perceived threat of climate change; the seasonality of our business; our ability to obtain adequate insurance for our properties or rising insurance costs; our dependence on certain third party providers; the inability of minority shareholders to influence corporate matters, due to concentrated ownership of largest shareholder; the impact of unfavorable legal proceedings or government investigations; the impact of complex and changing laws and regulations in the areas we operate; changes in tax rates, the adoption of new U.S. tax legislation, and exposure to additional tax liabilities, including with respect to Qualified Opportunity Zone program; new litigation; our ability to attract and retain qualified employees, particularly in our hospitality business; our ability to protect our information technology infrastructure and defend against cyber-attacks; increased media, political, and regulatory scrutiny negatively impacting our reputation; our ability to maintain adequate internal controls; risks associated with our financing arrangements, including our compliance with certain restrictions and limitations; our ability to pay our quarterly dividend; the potential volatility of our common stock; and the other risks and uncertainties discussed in “Risk Factors” beginning on page 7 of our most recent annual report on Form 10-K and from time to time in our subsequent filings with the SEC. We assume no obligation to revise or publicly released any revision to any forward-looking statements contained in this quarterly report on Form 10-Q unless required by law.
Rearranged previous paragraphs (13)
Previous report — wording carried elsewhere
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 report — wording carried elsewhere
Our hospitality segment features a private membership club (the “Watersound Club”), hotel operations, food and beverage operations, golf courses, beach clubs, retail outlets, gulf-front vacation rentals, marinas and other entertainment assets. The hospitality segment generates revenue from membership sales, golf courses, lodging at our hotels, short-term
Previous report — wording carried elsewhere
not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions and our accounting estimates are subject to change.
Previous report — wording carried elsewhere
Management’s TRBG program for recovery of lost income related to timber crop that was destroyed as a result of Hurricane Michael. Miscellaneous (expense) income, net during the six months ended June 30, 2023, also includes a $0.5 million gain on retained interest investment. See Note 16.Other Income, Net for additional information.
Previous report — wording carried elsewhere
The increase of $1.1 million in depreciation, depletion and amortization expense during the three months ended June 30, 2024, as compared to the same period in 2023, was primarily due to new properties placed in service.
Previous report — wording carried elsewhere
Revenue from our hotel operations increased $14.1 million, or 34.9%, during the six months ended June 30, 2024, as compared to the same period in 2023. The increase was primarily due to an increase in lodging revenue from Embassy
Previous report — wording carried elsewhere
Leasing revenue includes marina boat slip and dry storage rental, as well as leases of other hospitality assets.
Previous report — wording carried elsewhere
Interest expense primarily includes interest incurred from our hospitality project financing. The increase of $2.6 million in interest expense during the six months ended June 30, 2024, as compared to the same period in 2023, was primarily due to completion of projects where interest expense is no longer capitalized and the increase in project financing. See Note 9.Debt, Net for additional information.
Previous report — wording carried elsewhere
Interest expense primarily includes interest incurred from our commercial project financing and CDD debt. The increase of $1.0 million in interest expense during the six months ended June 30, 2024, as compared to the same period in 2023, was primarily due to completion of projects where interest expense is no longer capitalized and the increase in project financing. See Note 9.Debt, Net for additional information.
Previous report — wording carried elsewhere
9% for any additional principal that is prepaid through August 2031. The loan is secured by the real property and certain other Security Interests. See Note 9.Debt, Net for additional information.
Previous report — wording carried elsewhere
any additional fees, with the project maintaining a certain debt service coverage. See Note 9.Debt, Net for additional information.
Previous report — wording carried elsewhere
for escrow deposits in connection with our title insurance agencies for real estate transactions were $9.8 million and $10.0 million as of June 30, 2024 and December 31, 2023, respectively. These escrow funds are not available for regular operations.
Previous report — wording carried elsewhere
regulatory scrutiny negatively impacting our reputation; our ability to maintain adequate internal controls; risks associated with our financing arrangements, including our compliance with certain restrictions and limitations; our ability to pay our quarterly dividend; the potential volatility of our common stock; and the other risks and uncertainties discussed in “Risk Factors” beginning on page 7 of our most recent annual report on Form 10-K and from time to time in our subsequent filings with the SEC. We assume no obligation to revise or publicly released any revision to any forward-looking statements contained in this quarterly report on Form 10-Q unless required by law.