The St. Joe Company reported higher operating income and nine-month profit, alongside record hospitality revenue for both the third quarter and first nine months of 2026. It also raised its quarterly dividend 13% to 18 cents per share.
Quarterly revenue and net income were lower than a year earlier, but the comparison was affected by a property sale that boosted the prior-year quarter. The company also highlighted continued investment in residential communities and commercial development, as well as substantial stock repurchases.
Key details
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Quarterly results: Third-quarter revenue fell 3% to $156.2 million, while net income declined 5% to $36.9 million, or 65 cents per share. Operating income rose 16% to $61.5 million.
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Prior-year comparison: Third-quarter 2025 included the sale of a senior-living community property held through the Watercrest joint venture. That sale contributed $41 million of real estate revenue and $19.4 million of gross profit, weighing on comparisons with this year’s quarter.
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Nine-month results: For the first nine months of 2026, revenue rose 8% to $414.1 million and net income increased 7% to $91.3 million, or $1.60 per share. Operating income was up 26% to $134.5 million.
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Hospitality growth: Third-quarter hospitality revenue increased 9% to a record $66 million. Hotel revenue rose 7% and club revenue increased 14%; hospitality gross margin improved to 37% from 35%. For the first nine months, hospitality revenue reached a company record of $184.9 million, up 9%.
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Real estate revenue: Revenue from real estate declined 9% in the third quarter to $76.1 million, but rose 12% for the first nine months to $185.4 million.
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Residential development: St. Joe advanced a second phase of the Latitude Margaritaville Watersound joint venture, which is planned to add about 3,500 homes and bring the community to approximately 7,200 planned homes. Sales at the community increased 24% in the first nine months compared with the same period of 2025.
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Pigeon Creek and commercial development: A previously announced PulteGroup master-planned community in the Pigeon Creek development area is planned for about 3,000 homes, with groundbreaking expected in early 2027. St. Joe said the residential projects are expected to support demand at Watersound West Bay Center, its planned commercial town center, which is intended to include at least 500,000 square feet of leasable space. About 69,134 square feet is under construction, in addition to 33,182 square feet already at the center.
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Capital allocation: In the third quarter, the company spent $27.2 million to repurchase 412,800 shares, invested $22.8 million in capital expenditures, repaid $8.8 million of debt and paid $9.1 million in cash dividends. It said its third-quarter capital allocation was 40% stock repurchases, 34% growth capital expenditures, 13% debt repayment and 13% dividends.
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Nine-month capital returns and investment: Through September, St. Joe repurchased $64.9 million of stock, or 988,637 shares, up from $24.9 million in the same period of 2025. It also funded $67.5 million in capital expenditures, repaid $30.6 million of debt and paid $27.4 million in dividends. The company reported 56,578,851 shares outstanding at September 30, its lowest count since 1997.
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Dividend: The new quarterly dividend is $0.18 per share, payable December 11 to shareholders of record at the close of business November 12.
Plain-English implications
The dividend increase raises the company’s regular cash payout to shareholders. Meanwhile, St. Joe’s reported capital use combines investment in growth projects with debt reduction and share repurchases; the repurchases have also reduced its share count.