St. Joe (JOE, Financial) common stock composes the lion’s share of the Fund. Joe has made considerable progress over the past six years in building recurring cash flows by making every inch of owned-property count. Homesite unit sales have increased by ten times. Subdivisions sell when platted. The Latitude Margaritaville Watersound retirement community sold 1,000 homes in its first nineteen months! Hospitality operations expanded at the Watersound Beach Club, Watercolor Inn, Camp Creek Club, Sharks Tooth Club on Lake Powell, and Pearl in Rosemary Beach. Commercial operations diversified into apartment rentals, flagged-hotels, and commercial centers. Camp Creek Inn, Embassy Suites at Pier Park, The Lodge on Historic Route 30A, Hotel Indigo on Panama City’s St. Andrews Bay, Home2Suites, Watersound Fountains, Mexico Beach Crossings, and West Bay Center are all expected to open this year. The FSU Health Campus has been under construction since August. An 80,000 square foot facility for primary and urgent care should open next year. The first 100 beds of a teaching hospital are expected in 2027. Joe is growing with Florida. Florida is now the third most populous state and has the largest population growth rate.1 Supply delays that slowed last year’s progress are beginning to ease. Dozens of residential, hospitality, and commercial projects are in various planning stages.
From Bruce Berkowitz (Trades, Portfolio)'s Fairholme Fund (Trades, Portfolio) 2022 annual report.
