A Modest Trim From Fairholme — Here's why JOE Is Still Worth a Look

The Fairholme Fund, a concentrated mutual fund managed by Bruce Berkowitz, sold 377,800 shares of The St. Joe Company (NYSE:JOE)across three open-market transactions between May 5 and May 7, 2026, for aggregate proceeds of approximately $24.84 million, according to a Form 4 filed with the SEC.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($65.75); post-transaction value based on May 7, 2026 market close ($65.05).

Key questions

• How does the transaction compare to Berkowitz's prior selling activity?
  This sale ranks in the upper decile by size among the Fairholme Fund's 35 JOE sell transactions since June 2023, with only one larger disposition (436,500 shares on May 7, 2024) and a mean historical sale size of ~145,400 shares.
• Did the transaction meaningfully alter Berkowitz’s stake in The St. Joe Company?
  The sale reduced the fund’s direct position by 2.35%, modest relative to his remaining 15.7 million shares, which continue to represent a sizable ownership interest.
• Was this activity related to options, derivatives, or indirect holdings?
  No derivative securities or indirect entities were involved; all shares sold were held directly by the Fairholme Fund, which retains no reported derivative interests post-transaction.
• What does the sale imply for future liquidity potential?
  Despite repeated sizable sales, the fund holds approximately 75.5% of his June 2023 position, indicating ongoing capacity for future liquidity events should market or portfolio conditions warrant.

Company overview

* 1-year performance calculated using May 22, 2026 as the reference date.

Company snapshot

• St. Joe Offers residential land development, hospitality operations (including hotels, clubs, and marinas), and commercial property leasing and sales.
• The company generates revenue through the sale of developed homesites and land, hospitality services, and commercial leasing and land sales.
• It serves homebuilders, retail homebuyers, vacationers, and commercial tenants primarily in Northwest Florida.

The St. Joe Company is a diversified real estate operator with a focus on large-scale land development, hospitality, and commercial asset management in Northwest Florida. The company leverages its substantial land holdings—approximately 170,000 acres—to drive recurring revenue across residential, hospitality, and commercial segments.

What this transaction means for investors

The Fairholme Fund trimmed a small slice of a position it has held for years — not an exit, and not obviously a statement about the stock. The more useful question for investors is whether JOE is worth their attention on its own terms. St. Joe is a long-duration land play at its core. The investment case has always rested on the idea that Northwest Florida is underdeveloped relative to the rest of the state, and that a company sitting on roughly 170,000 acres there is well-positioned as that gap closes — slowly, but steadily. The business isn't a growth rocket. Revenue tied to homesite sales and hospitality demand moves with interest rates and consumer confidence, and the commercial segment, while useful, doesn't anchor the story on its own. What you're really buying is the land bank and the development optionality it carries — which means your time horizon matters more than almost anything else here. If you want a near-term catalyst, this probably isn't it. If you're patient and believe in the Panhandle's trajectory, the asset base is real and the story is coherent.

To learn more about real estate investing, check out this guide to commercial real estate.

Seena Hassouna has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.