St. Joe (JOE) Q4 2025 Earnings Call Transcript

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DATE

Friday, February 27, 2026 at 11:00 a.m. ET

CALL PARTICIPANTS

• Chairman, President, and Chief Executive Officer — Jorge Gonzalez
• Chief Financial Officer — Marek Bakun

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TAKEAWAYS

• Revenue Growth -- Reported a 24% increase in revenue year over year for the quarter, and a 27% increase to $513.2 million for the full year, surpassing $500 million for the first time since 2004 (excluding a one-time event).
• Net Income -- Achieved a 58% increase in quarterly net income, and 56% rise in full-year net income to $115.6 million.
• Earnings Per Share (EPS) -- EPS increased to $2 compared to $1.27, the first $2-per-share result in 23 years.
• Recurring Revenue -- Recurring revenue rose to 56% of the total, up from 15% two decades ago.
• Homesite Gross Margin -- Improved to 51% from 47% year over year.
• Leasing Gross Margin -- Margin increased to 57% from 54%.
• Hospitality Gross Margin -- Slightly declined to 31% from 32%, attributed to expenses from a new golf course opening and clubhouse renovation.
• Capital Allocation -- Allocated $18.5 million in the quarter: $15.1 million for stock repurchase (highest quarterly repurchase in 2025), $9.2 million for dividends, and $8 million for debt reduction.
• Share Repurchases -- Repurchased 798,602 shares in the year, with an average price of $50.10; total buybacks since 2015 reached $653.6 million and 34.9 million shares, reducing outstanding shares below 58 million for the first time in nearly 30 years.
• Residential Pipeline -- Ended the year with approximately 23,900 homesites in development or planning, up by 2,200 compared to the prior year.
• Commercial Segment -- Had 94,500 square feet under construction, 76% of which was preleased, with 54,000 square feet of new projects slated to break ground in 2026.
• DSAP Entitlements -- Secured approvals for 10 Detailed Specific Area Plans (DSAPs), each with at least 1,000 acres, with only 3 developed to date and plans to start 2 more in 2026.

SUMMARY

The St. Joe Company (NYSE:JOE) delivered historically high full-year revenue and earnings milestones, transitioning from a transaction-focused model to a diversified real estate operating business with a majority of recurring revenue streams. Operational initiatives are proceeding on multiple fronts, with pending expansion in residential, commercial, and hospitality assets supported by robust planning pipeline and approved entitlements. Capital allocation reflects management's simultaneous commitment to growth investment, debt reduction, and aggressively scaled share repurchases, with management reaffirming buybacks as a continuing strategy even after significant share price appreciation, stating, "the short answer to the question is yes." Forward development includes breaking ground on new DSAPs, expanded membership and hospitality initiatives, and continued focus on capturing value from large, entitled land holdings, all while closely monitoring market participation mechanisms such as builder residuals and back-end profit sharing unique to JOE's lot sales model.

• Management reported, "We are in discussion with one homebuilder who is new to the market for all of Pigeon Creek, which is over 3,000 units," signaling concentrated builder participation for a sizable future community.
• The CFO detailed plans for a new apartment complex near the FSU Health Campus, aligning residential expansion with adjacent large-scale institutional developments.
• Hospitality outlook includes increased club memberships, targeted operational margin enhancements, and assessment of new hotel, marina, and amenity rollouts.
• The finalized second anchor lease for Pier Park East, a "family-oriented surf park concept," positions the area for future traffic and tenant diversification.
• The company underscored strategic priority to grow recurring revenue as a core business objective, directly stating, "arguably, the most important one is continue to grow recurring revenue."

INDUSTRY GLOSSARY

• DSAP (Detailed Specific Area Plan): A land entitlement plan for large-scale mixed-use projects (1,000+ acres each), establishing approved uses and density for major developments.
• Back-end participation: A profit-sharing arrangement whereby the developer receives a portion of the builder’s profit on the eventual home sale, in addition to the initial lot sale price.

Full Conference Call Transcript

Operator: Good day, and thank you for standing by. Welcome to The St. Joe Company Fourth Quarter 2025 Earnings Conference. At this time, participants are in a listen-only mode. After the speakers' 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 would 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: Thank you, and good morning. I am Jorge Gonzalez, President, CEO, and Chairman of The St. Joe Company. It is my pleasure to welcome you to our quarterly earnings call. I am joined today by Marek Bakun, our Chief Financial Officer. On Wednesday, after the market closed, we issued our fourth quarter and full-year 2025 earnings press release, which can be found in the investor section of our corporate website at www.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 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.

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. 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 us go ahead and get started. We assume everyone has already carefully reviewed our earnings release, which provides comprehensive details about our performance, so we are only going to mention a few key highlights of both the fourth quarter and full year before we move on to your questions. For the fourth quarter, 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. Capital allocation in the fourth quarter was $18.5 million and capital expenditures, primarily for growth, $15,100,000.0 for stock repurchase, $9,200,000.0 for dividends, and $8,000,000 for debt reduction. The $15,100,000.0 in stock repurchase was the highest of any quarter in 2025.

For the full year, revenue increased by 27% to $513,200,000.0 from $402,700,000.0 and net income increased by 56% to $115,600,000.0 from $74,200,000.0. Earnings per share increased to $2 from $1.27. Not including the one-time large timberland sale in 2014, we surpassed $500,000,000 in revenue for the first time in 20 years and reached $2 per share for the first time in 23 years. However, 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.

In addition to the growth we had for the full year, we continue 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 decline 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 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. We accelerated stock repurchases with the repurchase of 798,602 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, was a good value for our shareholders. Since 2015, the company has used $653,600,000 to repurchase 34,900,000.0 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. 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 homebuilders from outside of this market who want to join our homebuilder program. So we plan on breaking ground on two more DSAPs in 2026 to accommodate our growing homebuilder demand.

At the end of the year, our residential homesite pipeline had approximately 23,900 homesites in various stages of planning, engineering, permitting, or development, which is an increase of 2,200 homesites as compared to the end of 2024. At the end of the year, our commercial segment had 94,500 square feet under construction in the Watersound Town Center and West Bay Center, of which approximately 76% is preleased. 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 West Bay Center totaling approximately 54,000 square feet. We are also planning on breaking ground on a new apartment complex and executing several new commercial ground leases.

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. We will now open for questions. Now Marek and I are going to answer your questions. As a reminder, in the top right-hand corner of your screen, the words “submit question” are visible. Clicking that text will take you to the text entry box where you can type your question and click submit. We are going to do this in the same way that we have done the last several calls.

Marek is going to read the questions, and then we are going to answer them. Marek?

Marek Bakun: 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?

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

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

Jorge Gonzalez: Pier Park East is an important project for us. We believe that it 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 have always wanted to have two major anchors for Pier Park East. We have one, as the questioner asked, in Topgolf. The second anchor, we are pleased to report that we finalized a ground lease with a really exciting family-oriented surf park concept. So that is going to be the second anchor for Pier Park East. We are currently in the process of planning the balance of that property including potentially breaking ground on infrastructure in 2026.

Marek Bakun: Share price has climbed nearly 40% since last quarter. Does management still view buybacks as a prudent allocation of capital at this price?

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

Marek Bakun: Awesome year. Why pay down debt here when the stock seems unusually priced relative to the per acre implied value?

Marek Bakun: So interest is a real dollar expense. Minimizing interest and increasing earnings is always a positive. As Jorge has mentioned, in 2025, 40 per 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 47% year-over-year increase in real estate revenue in Q4.

Marek Bakun: The higher average price on homesite sales and the sale of the 136 North Splash Drive plus Watersound Villas make up some of the lower homesite sales number. But what accounts for the rest of delta? Higher residuals?

Marek Bakun: Specifically to the residuals, we do disclose in our 10-K the flow-through of the residuals. And just for the full year, there was $13,600,000 of new residuals that did go across all four quarters. But, yes, there were residuals. But in addition to the average sales price, the Villas or the townhome sales, there are also normal land sales that we have had and will continue to have within the company. So that is really details that I will just through normal activity that we have.

Marek Bakun: How are you thinking about replacing the high value homesites 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: We always think about having a higher-end retail custom homesite product. It is not just Camp Creek. We have also done that in Origins, as an example, Powell Landing West, where we sold quite a few retail custom homesites at a very high value. We are in the process of planning and permitting a replacement product, and they are not exact replacements. There is some overlap in terms of pricing and so forth. This one is going to be in Origins West, right next to a very exciting art park that we think is going to be very attractive to residents.

I do not 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: Do you have any updates on the lake amenity or Pigeon Creek neighborhood?

Jorge Gonzalez: 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, spending a lot of time thinking about the right programming and it is a project that we feel really good about, but we are 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 is going to 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: And with a related 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: First, what we said at the annual meeting was that Pigeon Creek, even though it is sizable, over 3,000 potential units, we are in discussion with just one builder. We never indicated that we had a particular preference for a business structure on that project. So that still holds true. We are in discussion with one homebuilder who is new to the market for all of Pigeon Creek, which is over 3,000 units. And like I said in the previous answer to the previous question, we are pretty far along in those discussions, and we are cautiously optimistic that we will be able to execute those discussions into action relatively soon.

Marek Bakun: 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: State Road 79, as I mentioned in our last annual meeting, is an area of our landholdings 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 web page about the State Road 79 corridor. Ward Creek is moving along very nicely with our four homebuilders 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, an office building, 80,000 square feet, has been finished for a couple years.

It is essentially full with clinical practitioners. The second phase is a teaching hospital, an academic health center that takes advantage of the synergies between research, teaching, and clinical delivery. It is going to be under the FSU Health concept. That hospital is progressing well.

We believe it is going to be a pretty significant catalyst not only for the State Road 79 corridor, for the region, not just because of the fact that it is a hospital and there is clinical delivery that will occur there, but because of the academic health center model, where research and teaching are also going to add a significant amount of value to that region, to that part of our holdings in the region.

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

Marek Bakun: Yep. And, Jorge, if I may add, I want to say that not all debt that we have is equal. So if I look at the apartments’ debt, which is long term HUD insured up to 42 years, at a very low fixed rate, that is the type of debt that we are not paying down. It is just amortizing over normal life. It is the debt that is shorter life that we may choose to pay down and to save interest.

But as far as the debt, as you mentioned, the new apartment community, it would be normal and consistent with our strategy to have that on the new apartment community, especially if we could continue to obtain long-term HUD insured financing.

Jorge Gonzalez: Absolutely. And that is what we mean about us being thoughtful in how we pay down our project debt. We are not doing that randomly from a top-line perspective. We are looking at each project. We are looking at the specifics of the debt of each project. And the ones that we believe are going to create a savings for the company, we are going to pay down that debt. And 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.

So we do intend to continue when we have apartments to follow that loan program. And we are also not paying down the debt for the apartments. We are paying the debt down for projects that have higher interest rates and kind of present more challenges for us.

Marek Bakun: Thank you for all the hard work. Greatly appreciate this call, and management continued execution in recent years. Over the past ten 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 and return on invested capital declined as a result of lower lot income and land or asset sales. During this period, The St. Joe Company’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.

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, and is the company aware of the importance of driving return on investment capital growth when it comes to long-term stock performance?

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

Marek Bakun: Over the past year, in areas surrounding The St. Joe Company’s land as well as areas immediately adjacent to our development, there have been numerous lot sales transactions at significant premiums to where we have been selling lots. Just last year, D.R. Horton appeared to have paid $146,000 per lot near Breakfast Point. Lots in SweetBay in Panama City were recently sold for over $130,000 per lot. Even at lowest entry level in Freeport, lots have been selling close to $100,000 each. These lot prices appear to be significantly higher than what The St.

Joe Company has been transacting even as recently as this year, i.e., low to high eighties, nineties at Breakfast Point, or around $90,000 at Breakfast Point East. Furthermore, these transactions seem to be at a typical market rate 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 am recalling 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 as more DSAPs come online, is to bring MPC lot prices to levels that most appropriately reflect market value, i.e., 20% to 25% of finished home price. Furthermore, given our competitive positioning in the area, it is hard to understand why we would not be more of a price maker than a price taker. Is this something you can elaborate on?

Jorge Gonzalez: Again, another long and thoughtful and detailed question, and 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 is happening in the market with direct competitors. Not all communities are direct competitors to our communities. I can also assure the questioner that we do not sell lots at a discount. One of the things that may not be obvious to folks is, we believe we are the only developer that has a back-end participation when we sell homesites to builders. We do not believe anybody else in the market has that.

So when you just go on the property appraiser web page and just take a quick simple look at comps, you have to be careful, and I caution readers not to assume that is an apple-to-apple with our transactions with homebuilders. Because, again, we are 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 uniform. It is not one size fits all. They are all different based on the homebuilder, based on the price point, based on the community.

So, again, I would caution folks when they go on the property appraiser web page to take a look at comps that there are a couple layers deeper than that, particularly with us because of the back-end participation. I will also assure the questioner that we do not sell lots at a discount.

Marek Bakun: What is the company’s short and long-term goals for the percent of revenue that is recurring?

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

Marek Bakun: How is AI going to be implemented into the infrastructure of operations inside of The St. Joe Company?

Jorge Gonzalez: Like every operating company and business and, 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 is an emerging technology. It is very dynamic. It changes literally day to day. And we continue to explore how we can use those tools to improve the efficiency of our operations.

Marek Bakun: What is the company’s estimate of the average value per unused acre of land in the portfolio? And 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: That is 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 are a lot of different layers of different types of development, different types of open space, green space, conservation. We do not 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 is not a one-size-fits-all headline number to answer the question.

Marek Bakun: And, 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. So that data is also available from 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 are planning to develop, do you think you can achieve $750,000-plus lot prices on our future premium communities?

Jorge Gonzalez: Like I said to an earlier question, our goal is always to have a high-end premium retail custom lot product. It is going to ebb and flow over time in terms of location, in terms of what the actual price is. So, yes, we are always working at trying to create the highest premium, the highest value communities in the region.

Marek Bakun: I have 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 in 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: When we create LLCs, or special purpose entities, for our projects or landholdings, it is not exclusively because we intend to transact or sell that asset. There are a couple different reasons why we do that. So I would not just assume that just because we create an LLC, it means that we are 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.

We are constantly looking at the piggy banks and making assessments about how those piggy banks fit into 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. So when we look at all those factors, we will get conclusions where some assets, we believe, it is in the best interest of the company to monetize and sell, others are not.

Marek Bakun: 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: To answer the last question first, time will tell. It is still early. So it is very difficult for Delta or anybody to say definitively what the long-term plans are. But I can tell you, preliminarily, we believe it has been performing well. We have started a campaign to increase awareness in that market. And so far, we are pleased with the early results of that campaign in terms of how many folks in 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.

So early preliminary results are we are encouraged, 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: 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 has been received in the market?

Jorge Gonzalez: 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 are pretty pleased with the start of the brokerage business. It is still in its infancy, so we still have a long way to go in terms of achieving our business goals with it. But so far, we have been very pleased with the reception of the agent community and the way that business is progressing.

Marek Bakun: 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: We 100% agree. We also are very happy to see 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 civil engineering and permitting of the road. There has been good progress made on that end. And we are cautiously optimistic about the road and the potential timing.

Marek Bakun: There are no more questions.

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

Operator: Thank you. This concludes today’s conference. Thank you for participating. You may now disconnect.

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