On this page of StockholderLetter.com we present the latest annual shareholder letter from ST JOE Co — ticker symbol JOE. Reading current and past JOE letters to shareholders can bring important insights into the investment thesis.
202
March 27, 2026 Dear Fellow Owners, In 2025, we continued to demonstrate solid progress with growth in every segment and in every quarter compared to the previous year. Overall, revenue increased by 27%, net income increased by 56%, and earnings per share increased by 57%. For the second year in a row, we had a record year in hospitality and leasing revenue while our real estate revenue increased by 64%. This progress was not random or a one-off event. We have been on an upward trajectory consistently executing a deliberate strategy and building a foundation for future growth. WHO WE ARE We are not just a developer, owner, and operator of residential communities, commercial village centers, office and commerce parks, hotels and resorts, marinas, or a private membership club. We are all of those. We are a diversified real estate operating company that is growing earnings today while continuing to build a foundation for tomorrow. In 2025, 32% of our revenue was generated from our residential segment; 43% from our hospitality segment; and 23% from our commercial segment. This balance is a formula that is well suited for sustainable, continued growth. Perhaps even more importantly, unlike many other real estate companies or homebuilders, we already possess the raw material for future growth. We own 165,000 acres of entitled land in a desirable part of Florida that is experiencing in-migration. We don t have the risk and uncertainty of needing to acquire and entitle land and we have demonstrated an ability to create and grow diversified and sustainable revenue streams in an efficient way. OUR APPROACH I recall being a guest of an investment podcast in 2021 where I mentioned how an investment in our hotels would attract visitors, who join our club, who move into our communities, and who become consumers for our commercial leasing tenants. Of course, I was describing how our business diversification enables us to create a virtuous and synergistic circle of value creation and growth in ways that more narrowly based real estate companies cannot achieve. When most other real estate companies make an investment, it benefits other companies. When we make an investment in one of our segments it benefits our other segments and the surrounding land we own. The approach is working and is one of the reasons why we have been on a growth trajectory. It is an ecosystem approach that is well suited for continued growth and value creation, especially since we already possess the raw material for growth. CORE SEGMENTS We plan on continuing to grow our core segments of residential, hospitality, and commercial in synergistic ways. In April of last year, we obtained approval from Bay County for our latest Detailed Specific Area Plan (DSAP), Pigeon Creek, located along the SR 79 corridor. In March of this year, we announced the execution of a contract with PulteGroup, the nation s third largest homebuilder, to potentially develop over 2,600 homesites in this DSAP. PulteGroup is now our nineteenth homebuilder and our third national homebuilder in our residential communities. We intend to break ground in this DSAP later this year. We continue to receive inquiries from homebuilders outside of this market who want to do business with us. In selecting homebuilders and placing them in our communities, our objective is to increase product, lifestyle, and price choices so we can continue to attract a wide range of consumers. We also continue to receive more interest from commercial tenants who want to lease space in our commercial village centers. To meet this growing demand, this year, we plan on breaking ground on multiple commercial buildings in the Watersound Town Center and in the Watersound West Bay Center. We also plan on breaking ground on a new apartment complex on the SR 79 corridor in anticipation of the growth near the emerging medical campus. In our hospitality segment, we opened our third golf course last year, and in March of this year, we completed an expansion of the Watersound Beach Club, creating more capacity for our growing membership. We are in the planning phase for additional club amenities and increasing our lodging portfolio. 1
DIVERSIFICATION In addition to growing our core business segments, we continue to explore opportunities to increase our diversified revenue streams, especially revenue streams that are created from investments we make in our core business segments. A couple of years ago, we started a title agency and an insurance agency to accomplish those objectives. At our Annual Meeting last year, we announced that we were launching a real estate brokerage business. Watersound Real Estate began operations in 2025. We started in one location and quickly expanded to a second location with plans to open a third location later this year. With additional locations planned, Watersound Real Estate is poised to be the exclusive brokerage in some of the most attractive locations in our region like the Watercolor Town Center, Watersound Town Center, and soon, the emerging Watersound West Bay Center at the entrance to the Latitude Margaritaville Watersound community. Our title agency, insurance agency, and real estate brokerage not only create revenue streams from investments we make in our core business segments, but they are also asset light businesses that require minimal capital investment which are synergistic and help us to offer efficient services to our customers. We are cautiously optimistic about the potential of these businesses in contributing to our overall growth. We continue to explore other opportunities to diversify our revenue streams. MEDICAL CAMPUS There are few things more important to quality of life in a community than health care. We know that as our region grows, health care needs to keep up with that growth, so we collaboratively created a long-term vision for a master planned medical campus anchored by an academic health center with research, teaching, and clinical delivery. The vision involved thinking several steps ahead and the outcome was not guaranteed because it required willing partners that shared in our vision. The first phase opened in 2024 with a 79,000 square foot medical office building that currently has a wide range of clinical practices and an outpatient surgery center. Since that time, the construction of the second phase of the medical campus started, which is a state-of-the art $400 million teaching hospital that is expected to open in 2028. Academic health centers are dominant economic engines in their respective regions. We believe this campus has the potential to not only increase the quality of health care, but we also believe that it has the potential to become an economic engine in our region. CONNECT. PEOPLE. PLACE. Despite the growth trajectory we ve been on, we are just getting started. As a reminder, most of our revenue is derived from less than 2% of our land holdings. Anecdotally, I continue to be amazed at how often I meet people in our area who recently moved here from a different part of the country. They each have a slightly different story about how they got here, but they all share in one thing - they want to be here. They also tell their friends and family. Beyond demographic statistics and charts, that is how regions grow. People tell people. We are in the middle of it. In many ways, we like to think the essence of what we do is connecting people to place. That is broader than placemaking which has a narrower architectural design connotation. We not only design places, but we build and connect people to those places. Places to play, live, shop, and work. That is the essence of our business and of our future. As I always like to end my annual letters, I want to thank our team of hard-working professionals who think and act like owners and who voted us a Great Place to Work for the second year in a row. It is an honor and a privilege to be part of the journey with them. With respect, Jorge Gonzalez President, Chief Executive Officer, and Chairman of the Board 2
 • shareholder letter icon 3/31/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/6/2023 JOE Stockholder Letter
 • stockholder letter icon 4/4/2024 JOE Stockholder Letter
 • stockholder letter icon 4/1/2025 JOE Stockholder Letter
 • stockholder letter icon More "Real Estate" Category Stockholder Letters
 • Benford's Law Stocks icon JOE Benford's Law Stock Score = 96


JOE Shareholder/Stockholder Letter Transcript:

202 


March 27, 2026
Dear Fellow Owners,
In 2025, we continued to demonstrate solid progress with growth in every segment and in every quarter compared to the
previous year. Overall, revenue increased by 27%, net income increased by 56%, and earnings per share increased by
57%. For the second year in a row, we had a record year in hospitality and leasing revenue while our real estate revenue
increased by 64%. This progress was not random or a       one-off       event. We have been on an upward trajectory
consistently executing a deliberate strategy and building a foundation for future growth.
WHO WE ARE
We are not just a developer, owner, and operator of residential communities, commercial village centers, office and
commerce parks, hotels and resorts, marinas, or a private membership club. We are all of those. We are a diversified real
estate operating company that is growing earnings today while continuing to build a foundation for tomorrow. In 2025,
32% of our revenue was generated from our residential segment; 43% from our hospitality segment; and 23% from our
commercial segment. This balance is a formula that is well suited for sustainable, continued growth. Perhaps even more
importantly, unlike many other real estate companies or homebuilders, we already possess the raw material for future
growth. We own 165,000 acres of entitled land in a desirable part of Florida that is experiencing in-migration. We don   t
have the risk and uncertainty of needing to acquire and entitle land and we have demonstrated an ability to create and
grow diversified and sustainable revenue streams in an efficient way.
OUR APPROACH
I recall being a guest of an investment podcast in 2021 where I mentioned how an investment in our hotels would attract
visitors, who join our club, who move into our communities, and who become consumers for our commercial leasing
tenants. Of course, I was describing how our business diversification enables us to create a virtuous and synergistic
circle of value creation and growth in ways that more narrowly based real estate companies cannot achieve. When most
other real estate companies make an investment, it benefits other companies. When we make an investment in one of our
segments it benefits our other segments and the surrounding land we own. The approach is working and is one of the
reasons why we have been on a growth trajectory. It is an ecosystem approach that is well suited for continued growth
and value creation, especially since we already possess the raw material for growth.
CORE SEGMENTS
We plan on continuing to grow our core segments of residential, hospitality, and commercial in synergistic ways.
In April of last year, we obtained approval from Bay County for our latest Detailed Specific Area Plan (DSAP), Pigeon
Creek, located along the SR 79 corridor. In March of this year, we announced the execution of a contract with
PulteGroup, the nation   s third largest homebuilder, to potentially develop over 2,600 homesites in this DSAP.
PulteGroup is now our nineteenth homebuilder and our third national homebuilder in our residential communities. We
intend to break ground in this DSAP later this year.
We continue to receive inquiries from homebuilders outside of this market who want to do business with us. In selecting
homebuilders and placing them in our communities, our objective is to increase product, lifestyle, and price choices so
we can continue to attract a wide range of consumers.
We also continue to receive more interest from commercial tenants who want to lease space in our commercial village
centers. To meet this growing demand, this year, we plan on breaking ground on multiple commercial buildings in the
Watersound Town Center and in the Watersound West Bay Center. We also plan on breaking ground on a new apartment
complex on the SR 79 corridor in anticipation of the growth near the emerging medical campus.
In our hospitality segment, we opened our third golf course last year, and in March of this year, we completed an
expansion of the Watersound Beach Club, creating more capacity for our growing membership. We are in the planning
phase for additional club amenities and increasing our lodging portfolio.
1

DIVERSIFICATION
In addition to growing our core business segments, we continue to explore opportunities to increase our diversified
revenue streams, especially revenue streams that are created from investments we make in our core business segments.
A couple of years ago, we started a title agency and an insurance agency to accomplish those objectives. At our Annual
Meeting last year, we announced that we were launching a real estate brokerage business. Watersound Real Estate began
operations in 2025. We started in one location and quickly expanded to a second location with plans to open a third
location later this year. With additional locations planned, Watersound Real Estate is poised to be the exclusive
brokerage in some of the most attractive locations in our region like the Watercolor Town Center, Watersound Town
Center, and soon, the emerging Watersound West Bay Center at the entrance to the Latitude Margaritaville Watersound
community. Our title agency, insurance agency, and real estate brokerage not only create revenue streams from
investments we make in our core business segments, but they are also       asset light       businesses that require minimal
capital investment which are synergistic and help us to offer efficient services to our customers. We are cautiously
optimistic about the potential of these businesses in contributing to our overall growth. We continue to explore other
opportunities to diversify our revenue streams.
MEDICAL CAMPUS
There are few things more important to quality of life in a community than health care. We know that as our region
grows, health care needs to keep up with that growth, so we collaboratively created a long-term vision for a master
planned medical campus anchored by an academic health center with research, teaching, and clinical delivery. The
vision involved thinking several steps ahead and the outcome was not guaranteed because it required willing partners
that shared in our vision. The first phase opened in 2024 with a 79,000 square foot medical office building that currently
has a wide range of clinical practices and an outpatient surgery center. Since that time, the construction of the second
phase of the medical campus started, which is a state-of-the art $400 million teaching hospital that is expected to open
in 2028. Academic health centers are dominant economic engines in their respective regions. We believe this campus
has the potential to not only increase the quality of health care, but we also believe that it has the potential to become an
economic engine in our region.
CONNECT. PEOPLE. PLACE.
Despite the growth trajectory we   ve been on, we are just getting started. As a reminder, most of our revenue is derived
from less than 2% of our land holdings. Anecdotally, I continue to be amazed at how often I meet people in our area who
recently moved here from a different part of the country. They each have a slightly different story about how they got
here, but they all share in one thing - they want to be here. They also tell their friends and family. Beyond demographic
statistics and charts, that is how regions grow. People tell people. We are in the middle of it. In many ways, we like to
think the essence of what we do is connecting people to place. That is broader than placemaking which has a narrower
architectural design connotation. We not only design places, but we build and connect people to those places. Places to
play, live, shop, and work. That is the essence of our business and of our future.
As I always like to end my annual letters, I want to thank our team of hard-working professionals who think and act like
owners and who voted us a Great Place to Work   for the second year in a row. It is an honor and a privilege to be part
of the journey with them.
With respect,
Jorge Gonzalez
President, Chief Executive Officer, and Chairman of the Board
2


shareholder letter icon 3/31/2026 Letter Continued (Full PDF)
 

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