St. Joe Q4 2025 Earnings Report

St. Joe EPS Results

• Actual EPS: $0.52
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

St. Joe Revenue Results

• Actual Revenue: $128.89 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

St. Joe Announcement Details

• Quarter: Q4 2025
• Date: 2/25/2026
• Time: After Market Closes
• Conference Call Date: Friday, February 27, 2026
• Conference Call Time: 11:00AM ET

The St. Joe (NYSE:JOE) Company (NYSE: JOE) is a real estate development, asset management and operating company focused primarily on Northwest Florida. The company develops residential communities, commercial properties, resorts and other lifestyle-oriented destinations, with activities concentrated in Bay, Gulf, Walton and surrounding counties.

St. Joe’s residential development business includes master-planned communities and housing-related projects such as Watersound Origins and other Watersound-branded developments. Its commercial real estate activities include office, retail, healthcare and industrial properties, while its leasing operations manage commercial and residential assets. The company also owns and operates hospitality properties, including hotels, golf courses and related amenities in the Florida Panhandle.

Founded in 1936 as St. Joe Paper Company, the business historically operated in the paper and timber industries before transitioning toward real estate development and related operations. Today, St. Joe manages substantial land holdings and focuses on creating communities and destinations connected to Northwest Florida’s residential, tourism and economic growth. The company is led by Jorge Gonzalez, who serves as president and chief executive officer.

St. Joe Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Strong FY2025 results: Revenue rose 27% to $513.2M, net income increased 56% to $115.6M, and EPS reached $2.00 — milestones management says they haven't hit in two decades.
• Positive Sentiment: Active capital allocation + buybacks: Management deployed capital across growth (capex), dividends and repurchases (largest quarterly repurchase $15.1M) and paid down debt, noting continued share repurchases as a component of strategy.
• Positive Sentiment: Large development runway: The company has 10 approved DSAPs (each ≥1,000 acres), only 3 started, ~23,900 home sites in the pipeline (up 2,200 YoY), and 94,500 sq ft commercial under construction (~76% pre-leased) with more projects planned for 2026.
• Neutral Sentiment: Mixed margin performance: Homesite gross margin rose to 51% and leasing to 57%, while hospitality margin dipped to 31% due to new golf and clubhouse openings, although hospitality is still significantly improved versus 2023.
• Positive Sentiment: Conservative balance-sheet posture: Income-producing asset LTV is under 25% with low single-digit cost of debt; management is selectively paying down higher-rate project debt while retaining long-term HUD financing where favorable.

Presentation

[Operator]

Good day, thank you for standing by. Welcome to The St. Joe Company Q4 2025 Earnings Conference. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link at any time during the conference. Please be advised that today's conference is being recorded. I'd now like to hand the conference over to your speaker today, Jorge Gonzalez, Chairman and CEO of The St. Joe Company. Please go ahead.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Thank you, good morning. I'm Jorge Gonzalez, President, CEO, and Chairman of The St. Joe Company. It is my pleasure to welcome you to our quarterly earnings call. I'm joined today by Marek Bakun, our Chief Financial Officer. On Wednesday, after the market closed, we issued our Q4 and full year 2025 earnings press release, which can be found in the investor section of our corporate website at joe.com. If you want to send us questions for later in the call, you may do so by visiting the top right-hand corner of your screen, where the words "Submit a Question" are visible. Clicking on that text will take you to the text entry box, where you can type in your question and then click Submit for later in the call.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Before we begin discussing our results and answering your questions, I would like to remind everyone that Wednesday's press release and the statements made during this call include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties that can cause actual results to differ materially from our expectations and projections. Such risks and uncertainties include the factors set forth in the earnings release and in our filings with the Securities and Exchange Commission. Additionally, during today's call, we will discuss non-GAAP measures, which we believe can be useful in evaluating our performance. A reconciliation of these measures can be found in our earnings release. This morning, we are continuing our commitment to quarterly earnings calls to provide our shareholders and the investor community with an opportunity to ask questions about our business and performance.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We have always been an open and transparent company that welcomes all feedback and opinions. Because of the types of assets that we own, we encourage shareholders to visit us in person so they may assess firsthand the progress of the region and of our assets. Let's go ahead and get started. We assume everyone has already carefully reviewed our earnings release, which provides comprehensive details about our performance, we are only going to mention a few key highlights of both the Q4 and full year before we move on to your questions. For the Q4, we continued the year-over-year growth of the previous three quarters, with a 24% increase in revenue and a 58% increase in net income.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Capital allocation in the Q4 was $18.5 million in capital expenditures, primarily for growth, $15.1 million for stock repurchase, $9.2 million for dividends, and $8 million for debt reduction. The $15.1 million in stock repurchase was the highest of any quarter in 2025. For the full year, revenue increased by 27% to $513.2 million from $402.7 million, and net income increased by 56% to $115.6 million from $74.2 million. Earnings per share increased to $2 from $1.27.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Not including the one-time large timberland sale in 2014, we surpassed $500 million in revenue for the first time in 20 years and reached $2 per share for the first time in 23 years. We are now a different company than we were 20 years ago. Back then, the company's financial performance was achieved primarily as a bulk seller of assets, with only 15% recurring revenue. Today, the company is a diversified real estate operating company with 56% recurring revenue. The company now has a more sustainable and diverse business model, with a demonstrated ability to grow multiple revenue streams, all while simultaneously increasing the value of the underlying land assets in what we call the virtuous circle of value creation, where an investment in one segment creates value for the other segments.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

In addition to the growth we had for the full year, we continued to refine our operations and improve profitability. Homesite gross margins increased to 51% from 47%. Leasing gross margins increased to 57% from 54%. Hospitality gross margins had a slight decrease to 31% from 32%, which was primarily due to opening expenses associated with the new golf course, The Third, and the renovation of the Shark's Tooth clubhouse. It is important to note that the hospitality gross margin of 32% in 2024 was a significant increase from 20% in 2023. For the full year, we continued a measured and multifaceted capital allocation strategy, with 47% for capital expenditures, primarily for growth, 33% for dividend payments and stock repurchases, and 20% for project debt reduction.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We accelerated stock repurchases with the repurchase of 798,622 shares, as compared with a repurchase of 70,985 shares in 2024. The average price of shares repurchased in 2025 was $50.10, which, considering the share price as of the close of the market yesterday, it was a good value for our shareholders. Since 2015, the company has used $653.6 million to repurchase 34.900,000 shares of the company stock, representing 37.8% of the original shares, bringing the outstanding share balance below 58,000,000 for the first time in nearly 30 years. Outside of the financial numbers, we continue to fill the pipeline for potential future growth.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We have local and state government approval for 10 Detailed Specific Area Plans, or DSAPs, each with at least 1,000 acres of fully entitled mixed-use projects. We have only started to develop three of the 10 approved DSAPs, so we have a long runway for future growth. An encouraging sign is that we continue to receive inquiries from new potential home builders from outside of this market who want to join our home builder program. We plan on breaking ground on two more DSAPs in 2026 to accommodate our growing home builder demand. At the end of the year, our residential home site pipeline had approximately 23,900 home sites in various stages of planning, engineering, permitting, or development, which is an increase of 2,200 home sites as compared to the end of 2024.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

At the end of the year, our commercial segment had 94,500 sq ft under construction in the Watersound Town Center and Watersound West Bay Center, of which approximately 76% is pre-leased. We continue to receive inquiries from national and regional tenants who are noticing the growth of this market and are interested in leasing space from us. In order to continue to meet this growing demand, in 2026, we plan on breaking ground on new commercial buildings in the Watersound Town Center and Watersound West Bay Center, totaling approximately 54,000 sq ft. We're also planning on breaking ground in a new apartment complex and executing several new commercial ground leases.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

In our hospitality segment, we continue to increase our club membership program, and we continue to be focused on increasing occupancy and margins in our hotels, while continuing to assess and plan for opportunities for new hotels, marinas, and club amenities. Marek and I are going to answer your questions. As a reminder, in the top right-hand corner of your screen, the words "Submit a Question" are visible. Clicking that text will take you to the text entry box, where you can type your question and click Submit. We're going to do this in the same way that we've done the last several calls. Marek is going to read the questions, and then we're going to answer them. Marek?

[Marek Bakun, CFO at The St. Joe Company]

Thank you, Jorge. We have a few questions. The first one: are there any new multifamily units on the horizon for 2026 or 2027? Any new hotel operations or acquisitions planned?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

In my opening remarks, I mentioned that we do have plans on breaking ground in a new apartment complex. The location of it is really focused on the potential of the FSU Health campus, so it's in that vicinity. In terms of new hotels, we're constantly planning and getting prepared for the right timing of when we may move forward with new hotels. Similar with acquisitions, we're always looking at the market, and if the timing is good and there's an opportunity for us to gain value, we will execute those opportunities.

[Marek Bakun, CFO at The St. Joe Company]

Next question: After the opening of Topgolf at the Pier Park, any new developments coming in the near future for the area?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Pier Park East is a, an important project for us. We believe that is going to be the city center of the Pier Park area. We are being very thoughtful in planning that property and in choosing tenants. We've always wanted to have two major anchors for Pier Park East. We have one, as the questioner asked, in Topgolf. The second anchor, we're pleased to report that we finalized a ground lease with a really exciting, family-oriented surf park concept. That's going to be the second anchor for Pier Park East. We're currently in the process of planning the balance of that property, including potentially breaking ground on infrastructure in 2026.

[Marek Bakun, CFO at The St. Joe Company]

Share prices have climbed nearly 40% since the last quarter. Does management still view buybacks as a prudent allocation of capital at this price?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Capital allocation, as we've said many times, is multifaceted for us, and buying shares back is always a component of capital allocation. Also, as we've said many times, there's a facts and circumstances context to that, depending on what's happening in the quarter at the macro and micro level. The short answer to the question is yes.

[Marek Bakun, CFO at The St. Joe Company]

Awesome year. Why pay down debt here when the stock seems unusually priced relative to the per acre implied value? Interest is a real dollar expense. Minimizing interest and increasing earnings is always a positive. As Jorge just mentioned, in 2025, 47% of our capital was allocated for dividends and repurchases. At the same time, we were able to pay down debt. Some of the debt that was paid down was related to the Watercrest sale, we feel that lowering interest is always a positive.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

I think if I can just add, anybody that has owned or run a business before, understands the importance of paying down project debt because it is not a GAAP expense, it's a real cash expense.

[Marek Bakun, CFO at The St. Joe Company]

Can you help break down the 47% year-over-year increase in real estate revenue in Q4? The higher average price in home site sales and the sale of the 136 North Splash Drive, plus Watersound Villas, make up some of the lower home site sales number. What accounts for the rest of the delta? Higher residuals?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Specifically to the residuals, we do disclose in our 10-K, the flow-through of the residuals. Just for the full year, there was $13.6 million of new residuals that did go across all four quarters. Yes, there were residuals, in addition to the average sales price, the villas of the town home sales, there are also normal land sales that we have had and will continue to have within the company. That really details it out just through normal activity that we have.

[Marek Bakun, CFO at The St. Joe Company]

How are you thinking about replacing the high-value home sites at Camp Creek as we start running out of lots? Are there plans for other similar high price point neighborhoods, more commercial land sales?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We always think about having a higher-end retail custom home site product. It's not just Camp Creek, we've also done that in Origins. As an example, Powell Landing West, where we sold quite a few retail custom home sites at a very high value. We are in the process of planning and permitting a replacement product, and they're not exact replacements. There is some overlap in terms of pricing and so forth. This one is gonna be in Origins West, right next to a very exciting art park that we think is gonna be very attractive to residents. We don't have an exact time frame for this new product, but we are pretty far along in the planning and permitting of this neighborhood.

[Marek Bakun, CFO at The St. Joe Company]

Do you have any updates on the Lake amenity or Pigeon Creek neighborhood?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

The Lake amenity is, I believe, referencing an amenity that we have been planning on Lake Powell for the Watersound Club. We are pretty far along in planning that concept. We're spending a lot of time thinking about the right programming, and it's a project that we feel really good about, but we're still in the planning phase, programming phase. Pigeon Creek is one of the DSAPs that we have talked about before. We have been in discussion with one builder that's gonna be new to the market for this project. We are pretty far along in those discussions, and we feel cautiously optimistic about executing those discussions into action relatively soon.

[Marek Bakun, CFO at The St. Joe Company]

With a relative question, what is the status and current timing around Pigeon Creek? At the annual meeting and prior calls, it was mentioned that the lots could possibly be sold outright to a single developer. Is this still on the table, and is there any update or timing?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

First, what we said at the annual meeting was that Pigeon Creek, even though it's sizable, over 3,000 potential units, what we said is that we're in discussion with just one builder. We never indicated that we had a particular preference for a business structure on that project. That still holds true. We're in discussion with one home builder who is new to the market for all of Pigeon Creek, which is over 3,000 units. Like I said in the previous answer to the previous question, we're pretty far along in those discussions, and we're cautiously optimistic that we'll be able to execute those discussions into action relatively soon.

[Marek Bakun, CFO at The St. Joe Company]

Could you talk about the progress of some of the big projects along State Road 79 corridor, FSU Health Campus, potential commercial around it, and potential new residential builders along the corridor?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

State Road 79, as I mentioned in our last annual meeting, is an area of our land holdings that currently has a lot of energy, a lot of interest. In fact, we created a video. In case the listeners want to take a look at it, you can go to our webpage about the State Road 79 corridor. Ward Creek is moving along very nicely with our four home builders constructing homes with a pretty wide range of price and product types. The FSU Health Campus is very exciting. It is progressing very well. The first phase of that campus, as most listeners know, a medical office building, 80,000 sq ft, has been finished for a couple of years. It is essentially full with clinical practitioners.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

The second phase is a teaching hospital, an academic health center, that takes advantage of the synergies between research, teaching, and clinical delivery. It's gonna be under the FSU Health concept. That hospital is progressing well. We believe it's gonna be a pretty significant catalyst, not only for the State Road 79 corridor, but for the region. Not just because the fact that it's a hospital and there's clinical delivery that will occur there, but because of the academic health center model, where research and teaching are also gonna add a significant amount of value to that region, to that part of our holdings in the region.

[Marek Bakun, CFO at The St. Joe Company]

Your LTV is under 25% when looking at your income-producing assets. Your LTV is well below 25%, and your cost of debt is in the low single digits. Why do you believe that paying down debt is a good use of capital? Why isn't the ideal debt level a lot higher than where you are today?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Like I said before, anybody that has owned a business, has run a business, they understand the importance of managing debt. At the end of the day, cash is king. Cash is what matters. Free cash flow is what matters. When you have real expense associated with debt, it makes sense for that to be part of a capital allocation strategy. We've been very thoughtful, very methodical in how we pay down debt. We feel pretty good about what we've done so far, and we intend to continue the same strategy.

[Marek Bakun, CFO at The St. Joe Company]

Yep. Jorge, if I may add, I want to say that not all debt that we have is equal. If I look at the apartment debt, which is long-term HUD-insured, up to 42 years, at a very low fixed rate, that's the type of debt that we're not paying down. It's just amortizing over normal life. It's the debt that's shorter life that we may choose to pay down and to save interest. As far as the debt, as you mentioned, the new apartment community, it would be normal and consistent with our strategy to have debt on the new apartment community, especially if we could continue to obtain long-term HUD-insured financing.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Absolutely. That's what we mean about us being thoughtful in how we pay down our project debt. We're not doing that randomly and across from a top-line perspective. We're looking at each project, we're looking at the specifics of the debt of each project, and the ones that we believe are gonna create a savings for the company, we're gonna pay down that debt. Generally speaking, as Marek said, the debt we have, the HUD loans we have for our apartments are terrific. We have yet to find any program as good as the HUD loan program for apartments. We do intend to continue, when we have apartments, to follow that loan program. We're also not paying down the debt for the apartments. We're paying the debt down for projects that have higher interest rates and kind of present more challenges for us.

[Marek Bakun, CFO at The St. Joe Company]

Thank you for all the hard work. Greatly appreciate this call and management continued execution in recent years. Over the past 10 years, there appears to be a high correlation between return on investment capital, earnings per share, and the stock price. In 2023 and 2024, the company's recurring income grew significantly, but earnings per share, return on invested capital declined as a result of lower lot income and land or asset sales. During this period, Joe's stock price underperformed. Over the past 12 months, earnings per share and return on invested capital have increased meaningfully, heavily driven by increase in income and asset sales, and the stock price has gone up considerably.

[Marek Bakun, CFO at The St. Joe Company]

Assuming we all agree the company's NAV is meaningfully higher than the current stock price, does the company agree that future stock appreciation is highly dependent on the company's ability to continue growing EPS and increasing return on investment capital from its current levels? Is the company aware of the importance of driving return on investment capital growth when it comes to long-term stock performance? Thank you again.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

That's a very insightful, detailed, and well-thought-through, question, and the best way we can answer that is with a simple yes.

[Marek Bakun, CFO at The St. Joe Company]

Over the past year, in areas surrounding St. Joe's land, as well as areas immediately adjacent to our developments, there have been numerous lot sales transactions at significant premiums to where we have been selling lots. Just last year, D.R. Horton, Inc. appeared to have paid $146,000 per lot near Breakfast Point. Lots in Sweet Bay in Panama City were recently sold for over $130,000 per lot. Even at lowest entry level in Freeport, lots have been selling to close to $100,000 each. These lot prices appear to be significantly higher than what St. Joe has been transacting, even as recently as this year, i.e., low to high $80s, $90s at Breakfast Point or around $90,000 at Breakfast Point East. Futhermore these transactions seem to be at typical market rates of 20% or more of the eventual home price, and we seem to be selling our lots at a discount to these rates. In some cases, low teens, if I'm willing to be correctly. My belief is that some of the lowest hanging fruit as it relates to materially growing our cash flows in the coming years, especially more DSAPs come online, is to bring MPC low prices to level that most appropriately reflects market value, i.e., 20%-25% of finished home price. Given our competitive positioning in the area, it's hard to understand why we would not be more of a price maker than a price taker. Is this something you can elaborate on? Thank you.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Again, another long and thoughtful and detailed question. I can assure the individual who submitted the question, this is something that we monitor very closely, literally every day. We have a pretty good handle on what's happening in the market with direct competitors. Not all communities are direct competitors to our communities. I can also assure the questioner that we don't sell lots at a discount. One of the things that may not be obvious to folks is we believe we're the only developer that has a back-end participation when we sell home sites to builders. We don't believe anybody else in the market has that.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

When you just go on the property appraiser webpage and just take a quick, simple look at comps, you have to be careful, and I caution readers not to assume that that's an apple to an apple with our transactions with home builders. Cause again, we're the only developer, to our knowledge, that has a back-end participation where we get a part of the profit of the sales price of the home that the builder sells. Our back-end participation is also not uniformed. It's not one size fits all. They're all different based on the home builder, based on the price point, based on the community. Again, I would caution folks when they go on the property appraiser webpage to take a look at comps, that there's a couple of layers deeper than that, particularly with us, because of the back-end participation. I will also assure the questioner that we don't sell lots at a discount.

[Marek Bakun, CFO at The St. Joe Company]

What is the company's short and long-term goals for the percent of revenue that is recurring?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Probably, we have several different important parts of our business strategy, and as most everybody knows, the, arguably, the most important one is to continue to grow our recurring revenue. That is going to continue to be an important part of our business strategy, and we want to continue to grow our recurring revenue because that is a more sustainable and scalable revenue stream than just pure transactions.

[Marek Bakun, CFO at The St. Joe Company]

How is AI going to be implemented into the infrastructure of operations inside of St. Joe?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Like every operating company and business in, really, not just the country, but the world, we continue to explore AI as a tool to improve our operations like everybody else is doing. It's an emerging technology. It's very dynamic. It changes literally day to day. We continue to explore how we can use those tools to improve the efficiency of our operations.

[Marek Bakun, CFO at The St. Joe Company]

What is the company's estimate of the average value per unused acre of land in the portfolio? If answered per developable, acre of land, then please disclose how many acres of land will not be able to be developed. Thank you.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

That's a question that requires a lot of time to respond to because there are many different layers of what makes an acre developable, not developable. There's a lot of different layers of different types of development, different types of open space, green space conservation. We don't have a one-size-fits-all number. We have, if you look at our previous disclosures, we do have a lot of different information in our tables and in our footnotes that perhaps if somebody just read those and put them together, they can start making some assumptions. But there's not a one-size-fits-all headline number to answer the question.

[Marek Bakun, CFO at The St. Joe Company]

Jorge, just on the disclosure, as you mentioned, we have also disclosed, including in last year's shareholder meeting presentation, how many acres we have been using on an annual basis to generate the revenue that we have been generating. That data is also available for a number of years back. That would be a good way to think about it. Based on the current market demand and pricing, what you're planning to develop, do you think you can achieve $750,000+ lot prices on our future premium communities?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Like I said to an earlier question, our goal is always to have a high-end, premium, retail, custom lot product. It's gonna ebb and flow over time, in terms of location, in terms of what the actual price is. Yes, we're always working at trying to create the highest, premium, the highest value communities in the region.

[Marek Bakun, CFO at The St. Joe Company]

I've noticed you guys typically transfer land to LLCs when a monetization event is on the horizon. In this slide, you recently transferred land at Topsail, the parcel across from Powder Room and the Pier Park City Center into such entities. You mentioned the Surf Park at City Center. Would you care to detail the other two locations and how, when you envision the monetization occurring?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

When we create LLCs, or special purpose entities for our projects or land holdings, it's not exclusively because we intend to transact or sell that asset. There's a couple of different reasons why we do that. I wouldn't just assume that just because we create an LLC, it means that we're anticipating selling an asset. As I mentioned during the last earnings call, we are looking at all of our assets because we consider particularly all of our operating assets as piggy banks. I have said that many times before. We have said that many times before.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We're constantly looking at the piggy banks and making assessments about how those piggy banks fit in to the broader strategy of the company, how accretive they are to our other segments, and what return they provide to us, and what would be the price if we monetize them right now. When we look at all those factors, we get conclusions, where some assets, we believe, they're in the best interest of the company to monetize and sell, others are not.

[Marek Bakun, CFO at The St. Joe Company]

Any color you can provide on how the nonstop flight from New York has been performing for Delta? Do you think the flight is here to stay?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

To answer the last question first, time will tell. It's still early, so it's very difficult for Delta or anybody to say definitively, what the long-term plans are. I can tell you, preliminarily, we believe, it's been performing well. We have started a campaign to increase awareness in that market, and so far, we're pleased with the early results of that campaign in terms of how many folks from that market go to our web pages to look at hospitality offerings. Also, that has translated and has started to translate into higher occupancies and reservations from that market. Early preliminary results are, we're encouraged, we're cautiously optimistic, and we hope that not only is the flight here to stay, but our hope is that Delta will add flights because the demand is so great.

[Marek Bakun, CFO at The St. Joe Company]

One more question: Great to see the brokerage business growing. Could you talk about the progress there and anything that surprised you with how it's been received in the market?

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

The biggest surprise is the reception from the agent community. We have been very surprised in a positive way about how many agents call us, expressing an interest in joining our brokerage. We had anticipated some of that would happen, but not to the scale that we have. Yes, we're pretty pleased with the start of the brokerage business. It's still in its infancy, so we're still have a lot of way to go in terms of achieving our business goals with it. So far, we have been very pleased with the reception of the agent community and the way that business is progressing.

[Marek Bakun, CFO at The St. Joe Company]

Okay. Is there any new info on West Bay Parkway, Walton segment? It is good to see that at least part of the road is underway.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

We 100% agree. We also are very happy to see that that part of the road is underway. We continue to work very closely with the transportation planning organizations, with the FDOT, in moving forward with the next step in the process, which is in civil engineering and permitting of the road. There's been good progress made on that end, and we are cautiously optimistic about the road and the potential timing.

[Marek Bakun, CFO at The St. Joe Company]

There are no more questions.

[Jorge Gonzalez, President, CEO, and Chairman at The St. Joe Company]

Okay. We'll wait just one more second in case there's a last-minute question. Okay, I think then that's the last question. Thank you again for joining us today. Your interest in The St. Joe Company, and look forward to speaking with you again next quarter. Again, we welcome anybody and everybody to come to our market and look at the area and look at our assets. Thank you.

[Marek Bakun, CFO at The St. Joe Company]

Thank you.

[Operator]

This concludes today's conference. Thank you for participating. You may now disconnect.

Participants

Executives

• Jorge Gonzalez, President, CEO, and Chairman
• Marek Bakun, CFO