10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2022

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     .

Commission file number: 1-10466

The St. Joe Company

(Exact name of registrant as specified in its charter)

Florida	59-0432511
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
130 Richard Jackson Boulevard, Suite 200
Panama City Beach, Florida	32407
(Address of principal executive offices)	(Zip Code)

(850) 231-6400

(Registrant’s telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Exchange on Which Registered
Common Stock, no par value	JOE	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   YES  ☑    NO  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   YES  ☑    NO  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   YES  ☐    NO  ☑

As of October 24, 2022, there were 58,335,541 shares of common stock, no par value, outstanding.

THE ST. JOE COMPANY

INDEX

	Page No.
PART I
Item 1. Financial Statements (Unaudited)	3
Condensed Consolidated Balance Sheets - September 30, 2022 and December 31, 2021	3
Condensed Consolidated Statements of Income - Three and Nine Months Ended September 30, 2022 and 2021	5
Condensed Consolidated Statements of Comprehensive Income - Three and Nine Months Ended September 30, 2022 and 2021	6
Condensed Consolidated Statements of Changes in Stockholders’ Equity - Three and Nine Months Ended September 30, 2022 and 2021	7
Condensed Consolidated Statements of Cash Flows - Nine Months Ended September 30, 2022 and 2021	9
Notes to the Condensed Consolidated Financial Statements	11
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	49
Item 3. Quantitative and Qualitative Disclosures About Market Risk	79
Item 4. Controls and Procedures	79
PART II
Item 1. Legal Proceedings	80
Item 1A. Risk Factors	80
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	80
Item 3. Defaults Upon Senior Securities	80
Item 4. Mine Safety Disclosures	80
Item 5. Other Information	81
Item 6. Exhibits	81
SIGNATURES	82

2

PART I - FINANCIAL INFORMATION

Item 1.         Financial Statements

THE ST. JOE COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

	September 30,		December 31,
	2022		2021
ASSETS
Investment in real estate, net	$	883,796	$	690,113
Investment in unconsolidated joint ventures		58,865		52,027
Cash and cash equivalents		18,846		70,162
Investments - debt securities		74,033		88,956
Other assets		62,190		70,235
Property and equipment, net of accumulated depreciation of $64,666 and $64,251 as of September 30, 2022 and December 31, 2021, respectively		36,981		31,145
Investments held by special purpose entities		204,829		205,513
Total assets	$	1,339,540	$	1,208,151
LIABILITIES AND EQUITY
Liabilities:
Debt, net	$	321,085	$	223,034
Other liabilities		83,338		67,985
Deferred revenue		39,311		36,207
Deferred tax liabilities, net		81,558		77,259
Senior Notes held by special purpose entity		177,783		177,566
Total liabilities		703,075		582,051
Commitments and contingencies (Note 19)
Equity:
Common stock, no par value; 180,000,000 shares authorized; 58,912,504 and 58,882,549 issued at September 30, 2022 and December 31, 2021, respectively; and 58,335,541 and 58,882,549 outstanding at September 30, 2022 and December 31, 2021, respectively		297,129		296,873
Retained earnings		336,049		310,925
Accumulated other comprehensive income (loss)		2,047		(389)
Treasury stock at cost, 576,963 shares held at September 30, 2022		(19,972)		—
Total stockholders’ equity		615,253		607,409
Non-controlling interest		21,212		18,691
Total equity		636,465		626,100
Total liabilities and equity	$	1,339,540	$	1,208,151

See accompanying notes to the condensed consolidated financial statements.

3

THE ST. JOE COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

The following presents the portion of the condensed consolidated balances attributable to the Company’s consolidated joint ventures, which, as of September 30, 2022 and December 31, 2021, include the Pier Park North joint venture (“Pier Park North JV”), Pier Park Crossings LLC (“Pier Park Crossings JV”), Origins Crossings, LLC (“Watersound Origins Crossings JV”), SJWCSL, LLC (“Watercrest JV”), Watersound Closings & Escrow, LLC (“Watersound Closings JV”), Pier Park Crossings Phase II LLC (“Pier Park Crossings Phase II JV”), Pier Park Resort Hotel, LLC (“Pier Park Resort Hotel JV”), the 30A Greenway Hotel, LLC (“The Lodge 30A JV”), Panama City Timber Finance Company, LLC and Northwest Florida Timber Finance, LLC. As of September 30, 2022, condensed consolidated balances attributable to the Company’s consolidated joint ventures also includes Mexico Beach Crossings, LLC (“Mexico Beach Crossings JV”). See Note 2. Summary of Significant Accounting Policies. Basis of Presentation and Principles of Consolidation and Note 4. Joint Ventures for additional information. The following assets may only be used to settle obligations of the consolidated joint ventures and the following liabilities are only obligations of the consolidated joint ventures and do not have recourse to the general credit of the Company, except for covenants and guarantees discussed in Note 10. Debt, Net.

	September 30,		December 31,
	2022		2021
ASSETS
Investment in real estate, net	$	257,697	$	206,565
Cash and cash equivalents		7,539		10,564
Other assets		22,942		17,392
Investments held by special purpose entities		204,829		205,513
Total assets	$	493,007	$	440,034
LIABILITIES
Debt, net	$	226,893	$	173,531
Other liabilities		17,868		17,602
Deferred revenue		310		234
Senior Notes held by special purpose entity		177,783		177,566
Total liabilities	$	422,854	$	368,933

See accompanying notes to the condensed consolidated financial statements.

4

THE ST. JOE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands except per share amounts)

(Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Revenue:
Real estate revenue	$	17,330	$	23,500	$	82,132	$	85,615
Hospitality revenue		29,035		22,292		74,912		57,986
Leasing revenue		10,049		7,146		28,215		19,112
Timber revenue		1,162		1,058		5,438		4,827
Total revenue		57,576		53,996		190,697		167,540
Expenses:
Cost of real estate revenue		7,229		8,471		35,324		33,067
Cost of hospitality revenue		21,959		16,536		58,238		43,469
Cost of leasing revenue		4,946		3,106		12,596		8,297
Cost of timber revenue		172		118		577		502
Corporate and other operating expenses		5,322		4,987		16,493		17,161
Depreciation, depletion and amortization		5,771		4,617		16,263		12,594
Total expenses		45,399		37,835		139,491		115,090
Operating income		12,177		16,161		51,206		52,450
Other income (expense):
Investment income, net		2,735		2,331		7,531		4,813
Interest expense		(4,727)		(4,114)		(12,951)		(11,639)
Gain on contributions to unconsolidated joint ventures		1,430		—		2,001		3,290
Other income, net		2,128		7,329		6,045		9,595
Total other income, net		1,566		5,546		2,626		6,059
Income before equity in income (loss) from unconsolidated joint ventures and income taxes		13,743		21,707		53,832		58,509
Equity in income (loss) from unconsolidated joint ventures		2,481		(501)		3,415		(1,570)
Income tax expense		(4,163)		(6,429)		(14,643)		(15,180)
Net income		12,061		14,777		42,604		41,759
Net loss attributable to non-controlling interest		286		419		194		857
Net income attributable to the Company	$	12,347	$	15,196	$	42,798	$	42,616
NET INCOME PER SHARE ATTRIBUTABLE TO THE COMPANY
Basic	$	0.21	$	0.26	$	0.73	$	0.72
Diluted	$	0.21	$	0.26	$	0.73	$	0.72
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic		58,814,972		58,882,549		58,859,723		58,882,549
Diluted		58,814,972		58,882,549		58,861,440		58,882,549

See accompanying notes to the condensed consolidated financial statements.

5

THE ST. JOE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

(Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Net income:	$	12,061	$	14,777	$	42,604	$	41,759
Other comprehensive (loss) income:
Net unrealized (loss) gain on available-for-sale investments		(31)		3		(686)		(1)
Interest rate swaps		1,427		301		4,540		410
Interest rate swap - unconsolidated joint venture		307		(1)		615		133
Reclassification of net realized loss included in earnings		15		154		150		251
Total before income taxes		1,718		457		4,619		793
Income tax expense		(327)		(116)		(828)		(201)
Total other comprehensive income, net of tax		1,391		341		3,791		592
Total comprehensive income, net of tax		13,452		15,118		46,395		42,351
Total comprehensive (income) loss attributable to non-controlling interest		(142)		419		(1,161)		857
Total comprehensive income attributable to the Company	$	13,310	$	15,537	$	45,234	$	43,208

See accompanying notes to the condensed consolidated financial statements.

6

THE ST. JOE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Dollars in thousands)

(Unaudited)

							Accumulated
	Common Stock						Other
	Outstanding				Retained		Comprehensive		Treasury		Non-controlling
	Shares		Amount		Earnings		Income		Stock		Interest		Total
Balance at June 30, 2022	58,907,744	$	297,021	$	329,593	$	1,084	$	(180)	$	19,922	$	647,440
Capital contribution from non-controlling interest	—		—		—		—		—		1,579		1,579
Capital distribution to non-controlling interest	—		—		—		—		—		(431)		(431)
Stock based compensation expense	—		108		—		—		—		—		108
Repurchase of common shares	(572,203)		—		—		—		(19,792)		—		(19,792)
Dividends ($0.10 per share)	—		—		(5,891)		—		—		—		(5,891)
Other comprehensive income, net of tax	—		—		—		963		—		428		1,391
Net income	—		—		12,347		—		—		(286)		12,061
Balance at September 30, 2022	58,335,541	$	297,129	$	336,049	$	2,047	$	(19,972)	$	21,212	$	636,465

							Accumulated
	Common Stock						Other
	Outstanding				Retained		Comprehensive		Treasury		Non-controlling
	Shares		Amount		Earnings		(Loss) Income		Stock		Interest		Total
Balance at June 30, 2021	58,882,549	$	296,873	$	273,214	$	(1,221)	$	—	$	19,649	$	588,515
Capital distribution to non-controlling interest	—		—		—		—		—		(304)		(304)
Dividends ($0.08 per share)	—		—		(4,711)		—		—		—		(4,711)
Other comprehensive income, net of tax	—		—		—		341		—		—		341
Net income	—		—		15,196		—		—		(419)		14,777
Balance at September 30, 2021	58,882,549	$	296,873	$	283,699	$	(880)	$	—	$	18,926	$	598,618

See accompanying notes to the condensed consolidated financial statements.

7

THE ST. JOE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Dollars in thousands)

(Unaudited)

	Common Stock						Accumulated Other
	Outstanding				Retained		Comprehensive		Treasury		Non-controlling
	Shares		Amount		Earnings		(Loss) Income		Stock		Interest		Total
Balance at December 31, 2021	58,882,549	$	296,873	$	310,925	$	(389)	$	—	$	18,691	$	626,100
Capital contributions from non-controlling interest	—		—		—		—		—		3,613		3,613
Capital distributions to non-controlling interest	—		—		—		—		—		(2,253)		(2,253)
Issuance of restricted stock	29,955		—		—		—		—		—		—
Stock based compensation expense	—		256		—		—		—		—		256
Repurchase of common shares	(576,963)		—		—		—		(19,972)		—		(19,972)
Dividends ($0.30 per share)	—		—		(17,674)		—		—		—		(17,674)
Other comprehensive income, net of tax	—		—		—		2,436		—		1,355		3,791
Net income	—		—		42,798		—		—		(194)		42,604
Balance at September 30, 2022	58,335,541	$	297,129	$	336,049	$	2,047	$	(19,972)	$	21,212	$	636,465

	Common Stock						Accumulated Other
	Outstanding				Retained		Comprehensive		Treasury		Non-controlling
	Shares		Amount		Earnings		(Loss) Income		Stock		Interest		Total
Balance at December 31, 2020	58,882,549	$	296,873	$	255,216	$	(1,472)	$	—	$	17,553	$	568,170
Capital contributions from non-controlling interest	—		—		—		—		—		3,188		3,188
Capital distributions to non-controlling interest	—		—		—		—		—		(958)		(958)
Dividends ($0.24 per share)	—		—		(14,133)		—		—		—		(14,133)
Other comprehensive income, net of tax	—		—		—		592		—		—		592
Net income	—		—		42,616		—		—		(857)		41,759
Balance at September 30, 2021	58,882,549	$	296,873	$	283,699	$	(880)	$	—	$	18,926	$	598,618

See accompanying notes to the condensed consolidated financial statements.

8

THE ST. JOE COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Nine Months Ended
	September 30,
	2022		2021
Cash flows from operating activities:
Net income	$	42,604	$	41,759
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization		16,263		12,594
Stock based compensation		256		—
Gain on sale of investments		—		(17)
Unrealized (gain) loss on investments, net		(91)		1,947
Equity in (income) loss from unconsolidated joint ventures, net of distributions		(3,114)		1,770
Deferred income tax expense		3,471		11,464
Cost of real estate sold		32,564		30,105
Expenditures for and acquisition of real estate to be sold		(69,699)		(28,288)
Accretion income and other		(1,069)		(614)
Loss on disposal of property and equipment		181		270
Gain on contributions to unconsolidated joint ventures		(2,001)		(3,290)
Gain on insurance for damage to property and equipment, net		(4,186)		(3,924)
Loss on extinguishment of debt		130		—
Changes in operating assets and liabilities:
Other assets		15,755		(6,186)
Deferred revenue		3,039		7,337
Other liabilities		(3,845)		206
Net cash provided by operating activities		30,258		65,133
Cash flows from investing activities:
Expenditures for operating property		(156,478)		(109,215)
Expenditures for property and equipment		(3,384)		(3,135)
Proceeds from the disposition of assets		17		34
Proceeds from insurance claims		4,186		3,924
Purchases of investments - debt securities		(97,133)		(127,958)
Maturities of investments - debt securities		99,000		73,000
Sales of investments - debt securities		12,980		36
Sales of investments - equity securities		207		325
Sales of restricted investments		—		1,173
Capital contributions to unconsolidated joint ventures		(2,505)		(9,213)
Capital distributions from unconsolidated joint ventures		3,203		—
Payments for interest in unconsolidated joint venture		—		(495)
Maturities of assets held by special purpose entities		785		788
Net cash used in investing activities		(139,122)		(170,736)
Cash flows from financing activities:
Capital contributions from non-controlling interest		3,613		3,188
Capital distributions to non-controlling interest		(2,253)		(958)
Repurchase of common shares		(19,972)		—
Dividends paid		(17,666)		(14,133)
Borrowings on debt		119,043		39,812
Principal payments for debt		(19,535)		(1,536)
Principal payments for finance leases		(89)		(75)
Debt issuance costs		(1,876)		(1,087)
Net cash provided by financing activities		61,265		25,211
Net decrease in cash, cash equivalents and restricted cash		(47,599)		(80,392)
Cash, cash equivalents and restricted cash at beginning of the period		74,400		110,119
Cash, cash equivalents and restricted cash at end of the period	$	26,801	$	29,727

See accompanying notes to the condensed consolidated financial statements.

9

THE ST. JOE COMPANY

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

(Dollars in thousands)

(Unaudited)

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the amounts shown in the condensed consolidated statements of cash flows.

	September 30,		September 30,
	2022		2021
Cash and cash equivalents	$	18,846	$	27,260
Restricted cash included in other assets		7,955		2,467
Total cash, cash equivalents and restricted cash shown in the accompanying condensed consolidated statements of cash flows	$	26,801	$	29,727

Restricted cash includes amounts reserved as a requirement of financing and development for certain of the Company’s projects.

	Nine Months Ended
	September 30,
		2022	2021
Cash paid during the period for:
Interest, net of amounts capitalized	$	14,260	$	11,949
Income taxes	$	13,411	$	6,570
Non-cash investing and financing activities:
Non-cash contributions to unconsolidated joint ventures	$	(3,707)	$	(4,616)
Decrease in Community Development District debt	$	(177)	$	(800)
Transfers of operating property to property and equipment	$	8,671	$	12,711
Increase in expenditures for operating properties and property and equipment financed through accounts payable	$	12,302	$	10,277
Unrealized gain on cash flow hedges	$	5,155	$	543

See notes to the condensed consolidated financial statements.

10

THE ST. JOE COMPANY

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, unless otherwise stated)

(Unaudited)

1. Nature of Operations

The St. Joe Company together with its consolidated subsidiaries (“St. Joe” or the “Company”) is a Florida real estate development, asset management and operating company with all of its real estate assets and operations in Northwest Florida. Approximately 86% of the Company’s real estate is located in Florida’s Bay, Gulf, and Walton counties. Approximately 90% of the Company’s real estate land holdings are located within fifteen miles of the Gulf of Mexico.

The Company conducts primarily all of its business in the following three reportable segments: 1) residential, 2) hospitality and 3) commercial. See Note 18. Segment Information.

2. Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its majority-owned and controlled subsidiaries, voting interest entities where the Company has a majority voting interest or control and variable interest entities where the Company deems itself the primary beneficiary. Investments in joint ventures (“JV”) and limited partnerships in which the Company is not the primary beneficiary, or a voting interest entity where the Company does not have a majority voting interest or control, are accounted for by the equity method. All significant intercompany transactions and balances have been eliminated in consolidation. The December 31, 2021 condensed consolidated balance sheet amounts have been derived from the Company’s December 31, 2021 audited consolidated financial statements. Certain prior period amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on the Company’s previously reported total assets and liabilities, stockholders’ equity or net income. Operating results for the nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022.

A variable interest entity (“VIE”) is an entity in which a controlling financial interest may be achieved through arrangements that do not involve voting interests. A VIE is required to be consolidated by its primary beneficiary, which is the entity that possesses the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to the VIE. The Company consolidates VIEs when it is the primary beneficiary of the VIE, including real estate JVs determined to be VIEs. The Company continues to evaluate whether it is the primary beneficiary as needed when assessing reconsideration events. See Note 4. Joint Ventures.

The unaudited interim condensed consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for fair presentation of the information contained herein. The unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The Company adheres to the same accounting policies in preparation of its unaudited interim condensed consolidated financial statements as the Company’s December 31, 2021 annual financial statements, except for any recently adopted accounting pronouncements. As required under GAAP, interim accounting for certain expenses, including income taxes, are based on full year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual income tax rates.

11

Concentration of Risks and Uncertainties

All of the Company’s real estate investments are concentrated in Northwest Florida. Uncertain economic conditions could have an adverse impact on the Company’s operations and asset values.

Throughout the first nine months of 2022, the Company continued to generate positive financial results. While macro-economic factors such as inflation, rising interest rates, supply chain disruptions, geopolitical conflicts and the continuing recovery from the COVID-19 pandemic, among other things, have created economic headwinds and impacted buyer sentiment, demand across the Company’s segments remains strong. The Company believes this is primarily the result of the continued growth of Northwest Florida, which the Company attributes to the region’s high quality of life, natural beauty and outstanding amenities, as well as the evolving flexibility in the workplace.

Despite the strong demand across the Company’s segments, the Company also continues to feel the impact from the aforementioned macro-economic factors, including supply chain disruptions and cost increases, which, for example, have extended homesite and home deliveries in certain residential communities and increased operating costs. However, these delays generally have not resulted in increased cancellation rates, and therefore only impact the timing of revenue recognition. In addition, given the diverse portfolio of residential holdings, the mix of sales from different communities may impact revenue and margins period over period.

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investments, other receivables, investments held by special purpose entity or entities (“SPE”) and investments in retained interests. The Company deposits and invests cash with local, regional and national financial institutions, and as of September 30, 2022, these balances exceeded the amount of F.D.I.C. insurance provided on such deposits. In addition, as of September 30, 2022 the Company had $1.1 million invested in U.S. Treasury Money Market Funds, $74.0 million invested in U.S. Treasury Bills classified as investments – debt securities, and $0.3 million invested in two issuers of preferred stock that are non-investment grade.

Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the Company by the basic weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income attributable to the Company by the weighted average number of shares of common stock outstanding for the period, including potential dilutive common shares. The treasury stock method is used to determine the effect on diluted earnings. For each the three and nine months ended September 30, 2022, the Company had 29,955 unvested shares of restricted stock. For the three months ended September 30, 2022, 29,955 potentially dilutive common shares were excluded from the calculation of diluted income per share, since the effect would have been anti-dilutive based on the application of the treasury stock method. As of September 30, 2021, there were no outstanding common stock equivalents. For the three and nine months ended September 30, 2021, the Company did not have any potential dilutive instruments, therefore, basic and diluted weighted average shares outstanding were equal. See Note 15. Stockholders’ Equity for additional information related to the issuance of common stock for employee compensation.

12

The computation of basic and diluted earnings per share are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands except per share amounts)
Income
Net income attributable to the Company	$	12,347	$	15,196	$	42,798	$	42,616
Shares
Weighted average shares outstanding - basic		58,814,972		58,882,549		58,859,723		58,882,549
Incremental shares from restricted stock		—		—		1,717		—
Weighted average shares outstanding - diluted		58,814,972		58,882,549		58,861,440		58,882,549
Net income per share attributable to the Company
Basic income per share	$	0.21	$	0.26	$	0.73	$	0.72
Diluted income per share	$	0.21	$	0.26	$	0.73	$	0.72

Recently Adopted Accounting Pronouncements

There were no recently adopted accounting pronouncements which would have a material effect on the Company’s financial condition, results of operations and cash flows.

Recently Issued Accounting Pronouncements

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting that provides temporary optional guidance to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The new guidance provides expedients and exceptions for applying GAAP to contract modifications and hedging relationships affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or another reference rate that is expected to be discontinued due to reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) which clarifies the original guidance that certain optional expedients and exceptions in contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This new guidance was effective upon issuance and may be applied prospectively through December 31, 2022, as reference rate activities occur. In June 2022, one of the Company’s debt agreements that referenced LIBOR was amended to an alternative rate, ASU 2020-04 was applied at the time of this modification and there was no impact on the Company’s financial condition, results of operations and cash flows. See Note 10. Debt, Net for additional information. There is no current additional impact to the Company from this guidance and the Company will consider the impact on its financial condition, results of operations and cash flows if there are additional modifications to existing agreements.

13

3. Investment in Real Estate

Real estate, excluding unconsolidated JVs, by property type and segment includes the following:

	September 30,		December 31,
	2022		2021
Development property:
Residential	$	153,299	$	122,404
Hospitality		187,406		137,089
Commercial		123,059		85,931
Other		3,451		3,232
Total development property		467,215		348,656
Operating property:
Residential		7,854		7,854
Hospitality		161,439		124,449
Commercial		339,096		296,193
Other		127		127
Total operating property		508,516		428,623
Less: Accumulated depreciation		91,935		87,166
Total operating property, net		416,581		341,457
Investment in real estate, net	$	883,796	$	690,113

Investment in real estate is carried at cost, net of depreciation and timber depletion, unless circumstances indicate that the carrying value of the assets may not be recoverable.

Development property consists of land the Company is developing or intends to develop for sale or future operations and includes direct costs associated with the land, as well as development, construction and indirect costs. Residential development property includes existing and planned residential homesites and related infrastructure. Hospitality development property consists of land, improvements and construction and development costs primarily related to uncompleted hotels, resorts, club amenities and a marina. Commercial development property primarily consists of land and construction and development costs for planned commercial, multi-family and industrial uses. Development property in the hospitality and commercial segments will be reclassified as operating property as it is placed into service.

Operating property includes property that the Company uses for operations and activities. Residential operating property consists primarily of residential utility assets and certain rental properties. Hospitality operating property primarily consists of existing hotels, resorts, clubs, vacation rentals, a marina and other operations. Commercial operating property includes property developed or purchased by the Company and used for retail, office, self-storage, light industrial, multi-family, senior living, commercial rental, vacation rental and timber purposes. Operating property may be sold in the future as part of the Company’s principal real estate business. As of September 30, 2022 and December 31, 2021, operating property, net related to operating leases was $260.0 million and $230.0 million, respectively.

4. Joint Ventures

The Company enters into JVs, from time to time, for the purpose of developing real estate and other business activities in which the Company may or may not have a controlling financial interest. GAAP requires consolidation of voting interest entities where the Company has a majority voting interest or control and VIEs in which an enterprise has a controlling financial interest and is the primary beneficiary. A controlling financial interest will have both of the following characteristics: (i) the power to direct the VIE activities that most significantly impact economic performance and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company examines specific criteria and uses judgment when determining whether the Company is the primary beneficiary and must consolidate a VIE. The Company continues to evaluate whether it is the primary

14

beneficiary as needed when assessing reconsideration events. Investments in JVs and limited partnerships in which the Company is not the primary beneficiary, or a voting interest entity where the Company does not have a majority voting interest or control, are accounted for by the equity method.

The timing of cash flows for additional required capital contributions related to the Company’s JVs varies by agreement. Some of the Company’s consolidated and unconsolidated JVs have entered into financing agreements where the Company or its JV partners have provided guarantees. See Note 9. Other Assets, Note 10. Debt, Net and Note 19. Commitments and Contingencies for additional information.

Consolidated Joint Ventures

Mexico Beach Crossings JV

Mexico Beach Crossings JV was formed in January 2022, when the Company entered into a JV agreement to develop, manage and lease apartments in Mexico Beach, Florida. The JV parties are working together to develop and construct the 216-unit apartment community. The community is located on land that was contributed to the JV by the Company. As of September 30, 2022, the Company owned a 75.0% interest in the consolidated JV. The Company’s partner is currently responsible for the construction activities of the JV, but once operational, Watersound Management, LLC (“Watersound Management JV”), the Company’s unconsolidated JV, will be responsible for the day-to-day activities of the JV. The Company approves all major decisions, including project development, annual budgets and financing. The Company determined Mexico Beach Crossings JV is a voting interest entity and that the Company has a majority voting interest as of September 30, 2022.

The Lodge 30A JV

The Lodge 30A JV was formed in July 2020, when the Company entered into a JV agreement to develop and operate a boutique hotel on Scenic County Highway 30A in Seagrove Beach, Florida. The JV parties are working together to develop and construct the 85-room hotel. As of September 30, 2022 and December 31, 2021, the Company owned a 52.8% interest in the consolidated JV. The Company’s partner is currently responsible for the construction activities of the JV, but once operational, a wholly-owned subsidiary of the Company will manage the day-to-day operations of the hotel. The Company has significant involvement in the project design and development and approves all major decisions, including annual budgets and financing. The Company determined The Lodge 30A JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Pier Park Resort Hotel JV

Pier Park Resort Hotel JV was formed in April 2020, when the Company entered into a JV agreement to develop and operate an Embassy Suites by Hilton hotel in the Pier Park area of Panama City Beach, Florida. The JV parties are working together to develop and construct the 255-room hotel. As of September 30, 2022 and December 31, 2021, the Company owned a 70.0% interest in the consolidated JV. The Company’s partner is currently responsible for the construction activities of the JV, but once operational, a wholly-owned subsidiary of the Company will manage the day-to-day operations of the hotel. The Company has significant involvement in the project design and development, annual budgets and financing. The Company determined Pier Park Resort Hotel JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Pier Park Crossings Phase II JV

Pier Park Crossings Phase II JV was formed in 2019, when the Company entered into a JV agreement to develop, manage and lease a 120-unit apartment community in the Pier Park area of Panama City Beach, Florida. As of September 30, 2022 and December 31, 2021, the Company owned a 75.0% interest in the consolidated JV. The Company’s unconsolidated Watersound Management JV is responsible for the day-to-day activities of the JV. The Company approves all major decisions, including project development, annual budgets and financing. The Company determined Pier Park Crossings Phase II JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

15

Watersound Closings JV

Watersound Closings JV was formed in 2019, when the Company entered into a JV agreement to own, operate and manage a real estate title insurance agency business. As of September 30, 2022 and December 31, 2021, the Company owned a 58.0% interest in the consolidated JV. A wholly-owned subsidiary of the Company is the managing member of Watersound Closings JV and is responsible for the day-to-day activities of the business. As the manager of the JV, as well as the majority member, the Company has the power to direct all of the activities of the JV that most significantly impact economic performance. The Company determined Watersound Closings JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Watercrest JV

Watercrest JV was formed in 2019, when the Company entered into a JV agreement to develop and operate a 107-unit senior living community in Santa Rosa Beach, Florida. As of September 30, 2022 and December 31, 2021, the Company owned an 87.0% interest in the consolidated JV. A wholly-owned subsidiary of the Company’s JV partner is responsible for the day-to-day activities of the community. However, the Company approves all major decisions, including project development, annual budgets and financing. The Company determined Watercrest JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Watersound Origins Crossings JV

Watersound Origins Crossings JV was formed in 2019, when the Company entered into a JV agreement to develop, manage and lease apartments near the entrance to the Watersound Origins residential community. Construction of the 217-unit apartment community was completed in the fourth quarter of 2021. As of September 30, 2022 and December 31, 2021, the Company owned a 75.0% interest in the consolidated JV. The Company’s unconsolidated Watersound Management JV is responsible for the day-to-day activities of the community. The Company approves all major decisions, including project development, annual budgets and financing. The Company determined Watersound Origins Crossings JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Pier Park Crossings JV

Pier Park Crossings JV was formed in 2017, when the Company entered into a JV agreement to develop, manage and lease a 240-unit apartment community in the Pier Park area of Panama City Beach, Florida. As of September 30, 2022 and December 31, 2021, the Company owned a 75.0% interest in the consolidated JV. The Company’s unconsolidated Watersound Management JV is responsible for the day-to-day activities of the community. The Company approves all major decisions, including project development, annual budgets and financing. The Company determined Pier Park Crossings JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Pier Park North JV

During 2012, the Company entered into a JV agreement with a partner to develop a retail center at Pier Park North. As of September 30, 2022 and December 31, 2021, the Company owned a 60.0% interest in the consolidated JV. A wholly-owned subsidiary of the Company’s JV partner is responsible for the day-to-day activities of the retail center. However, the Company approves all major decisions, including project development, annual budgets and financing. The Company determined the Pier Park North JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

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Unconsolidated Joint Ventures

Investment in unconsolidated joint ventures includes the Company’s investment accounted for using the equity method. The following table presents detail of the Company’s investment in unconsolidated joint ventures and total outstanding debt of unconsolidated JVs:

	September 30,		December 31,
	2022		2021
Investment in unconsolidated joint ventures
Latitude Margaritaville Watersound JV	$	32,468	$	30,040
Sea Sound JV		9,454		10,333
Watersound Fountains Independent Living JV		7,508		7,508
Pier Park TPS JV		1,714		1,961
Pier Park RI JV (a)		4,263		—
Busy Bee JV		2,238		1,621
Electric Cart Watersound JV (b)		682		—
Watersound Management JV		538		564
Total investment in unconsolidated joint ventures	$	58,865	$	52,027
Outstanding debt of unconsolidated JVs
Latitude Margaritaville Watersound JV (c) (d)	$	11,795	$	7,147
Sea Sound JV		38,742		35,047
Watersound Fountains Independent Living JV (d)		18,755		66
Pier Park TPS JV (d)		13,898		14,124
Busy Bee JV		6,088		6,317
Electric Cart Watersound JV (d)		634		—
Total outstanding debt of unconsolidated JVs	$	89,912	$	62,701

(a) JV was formed in May 2022.

(b) JV was formed in February 2022.

(c) See Note 9. Other Assets for additional information on the $10.0 million secured revolving promissory note the Company entered into with the unconsolidated Latitude Margaritaville Watersound JV.

(d) See Note 19. Commitments and Contingencies for additional information.

The Company's maximum exposure to loss due to involvement in the unconsolidated joint ventures as of September 30, 2022 was $86.9 million, which includes the carrying amounts of the investments, guarantees, promissory note receivable, other receivables, contribution requirements and derivative instruments.

The following table presents detail of the Company’s equity in income (loss) from unconsolidated JVs:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Equity in income (loss) from unconsolidated joint ventures
Latitude Margaritaville Watersound JV	$	2,181	$	(896)	$	2,504	$	(2,497)
Sea Sound JV		(59)		(71)		21		(104)
Pier Park TPS JV		114		279		217		651
Busy Bee JV		210		180		617		372
Electric Cart Watersound JV (a)		17		—		(3)		—
Watersound Management JV		18		7		59		8
Total equity in income (loss) from unconsolidated joint ventures	$	2,481	$	(501)	$	3,415	$	(1,570)

(a) JV was formed in February 2022.

17

Summarized balance sheets for the Company’s unconsolidated JVs are as follows:

	September 30, 2022
	Latitude Margaritaville Watersound JV			Sea Sound JV		Watersound Fountains Independent Living JV		Pier Park TPS JV		Pier Park RI JV		Busy Bee JV		Electric Cart Watersound JV		Watersound Management JV		Total
ASSETS
Investment in real estate	$	110,144	(a)	$	53,224	$	34,691	$	15,468	$	5,580	$	7,705	$	1,630	$	—	$	228,442
Cash and cash equivalents		4,185			1,508		279		1,092		2,953		1,231		232		87		11,567
Other assets		2,425			451		8		734		—		2,006		295		—		5,919
Total assets	$	116,754		$	55,183	$	34,978	$	17,294	$	8,533	$	10,942	$	2,157	$	87	$	245,928
LIABILITIES AND EQUITY
Debt, net	$	11,610		$	38,676	$	18,133	$	13,615	$	—	$	6,042	$	553	$	—	$	88,629
Other liabilities		74,785			713		2,889		251		7		424		267		—		79,336
Equity		30,359			15,794		13,956		3,428		8,526		4,476		1,337		87		77,963
Total liabilities and equity	$	116,754		$	55,183	$	34,978	$	17,294	$	8,533	$	10,942	$	2,157	$	87	$	245,928

(a) Investment in real estate includes the land contributed to the Latitude Margaritaville Watersound JV at the Company’s historical cost basis and additional completed infrastructure improvements.

	December 31, 2021
	Latitude Margaritaville Watersound JV			Sea Sound JV		Watersound Fountains Independent Living JV		Pier Park TPS JV		Pier Park RI JV (b)		Busy Bee JV		Electric Cart Watersound JV (c)		Watersound Management JV		Total
ASSETS
Investment in real estate	$	54,034	(a)	$	53,775	$	17,003	$	16,561	$	—	$	8,005	$	—	$	—	$	149,378
Cash and cash equivalents		12,541			760		240		1,913		—		855		—		138		16,447
Other assets		1,761			210		187		433		—		1,044		—		—		3,635
Total assets	$	68,336		$	54,745	$	17,430	$	18,907	$	—	$	9,904	$	—	$	138	$	169,460
LIABILITIES AND EQUITY
Debt, net	$	7,147		$	34,834	$	66	$	13,839	$	—	$	6,256	$	—	$	—	$	62,142
Other liabilities		36,419			2,653		3,408		1,147		—		405		—		—		44,032
Equity		24,770			17,258		13,956		3,921		—		3,243		—		138		63,286
Total liabilities and equity	$	68,336		$	54,745	$	17,430	$	18,907	$	—	$	9,904	$	—	$	138	$	169,460

(a) Investment in real estate includes the land contributed to the Latitude Margaritaville Watersound JV at the Company’s historical cost basis and additional completed infrastructure improvements.

(b) JV was formed in May 2022.

(c) JV was formed in February 2022.

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Summarized statements of operations for the Company’s unconsolidated JVs are as follows:

	Three Months Ended September 30, 2022
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (a)		Busy Bee JV		Electric Cart Watersound JV		Watersound Management JV			Total
Total revenue	$	50,784	$	1,614	$	—	$	1,664	$	—	$	5,090	$	226	$	320	$	59,698
Expenses:
Cost of revenue		42,928		694		—		884		—		4,799		189		283		49,777
Other operating expenses		3,561		—		—		—		—		—		4		—		3,565
Depreciation and amortization		79		546		—		362		—		115		—		—		1,102
Total expenses		46,568		1,240		—		1,246		—		4,914		193		283		54,444
Operating income		4,216		374		—		418		—		176		33		37		5,254
Other (expense) income:
Interest expense		(56)		(470)		—		(189)		—		(41)		—		—		(756)
Other income (expense), net		4		(2)		—		7		—		293		—		—		302
Total other (expense) income		(52)		(472)		—		(182)		—		252		—		—		(454)
Net income (loss)	$	4,164	$	(98)	$	—	$	236	$	—	$	428	$	33	$	37	$	4,800

(a) The project is under construction with no income or loss for the three months ended September 30, 2022.

	Three Months Ended September 30, 2021
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (b)		Busy Bee JV		Electric Cart Watersound JV (c)		Watersound Management JV		Total
Total revenue	$	—	$	143	$	—	$	2,252	$	—	$	4,918	$	—	$	201	$	7,514
Expenses:
Cost of revenue		—		147		—		902		—		4,386		—		187		5,622
Other operating expenses		1,572		—		—		—		—		—		—		—		1,572
Depreciation and amortization		75		75		—		358		—		116		—		—		624
Total expenses		1,647		222		—		1,260		—		4,502		—		187		7,818
Operating (loss) income		(1,647)		(79)		—		992		—		416		—		14		(304)
Other expense:
Interest expense		(40)		(45)		—		(193)		—		(48)		—		—		(326)
Other income (expense), net		—		—		—		1		—		(51)		—		—		(50)
Total other expense		(40)		(45)		—		(192)		—		(99)		—		—		(376)
Net (loss) income	$	(1,687)	$	(124)	$	—	$	800	$	—	$	317	$	—	$	14	$	(680)

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(a) The project was under construction with no income or loss for the three months ended September 30, 2021.

(b) The JV was formed in May 2022.

(c) The JV was formed in February 2022.

	Nine Months Ended September 30, 2022
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (a)		Busy Bee JV		Electric Cart Watersound JV		Watersound Management JV			Total
Total revenue	$	82,528	$	4,312	$	—	$	4,577	$	—	$	14,399	$	226	$	864	$	106,906
Expenses:
Cost of revenue		68,468		1,629		—		2,501		—		13,661		218		746		87,223
Other operating expenses		8,949		—		—		—		—		—		13		—		8,962
Depreciation and amortization		229		1,509		—		1,087		—		344		—		—		3,169
Total expenses		77,646		3,138		—		3,588		—		14,005		231		746		99,354
Operating income (loss)		4,882		1,174		—		989		—		394		(5)		118		7,552
Other (expense) income:
Interest expense		(166)		(1,131)		—		(566)		—		(132)		—		—		(1,995)
Other income (expense), net		4		(7)		—		11		—		995		—		—		1,003
Total other (expense) income		(162)		(1,138)		—		(555)		—		863		—		—		(992)
Net income (loss)	$	4,720	$	36	$	—	$	434	$	—	$	1,257	$	(5)	$	118	$	6,560

(a) The project is under construction with no income or loss for the nine months ended September 30, 2022.

20

	Nine Months Ended September 30, 2021
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (b)		Busy Bee JV		Electric Cart Watersound JV (c)		Watersound Management JV		Total
Total revenue	$	—	$	164	$	—	$	5,473	$	—	$	12,452	$	—	$	263	$	18,352
Expenses:
Cost of revenue		—		217		—		2,311		—		11,365		—		247		14,140
Other operating expenses		4,508		—		—		—		—		—		—		—		4,508
Depreciation and amortization		135		76		—		1,075		—		347		—		—		1,633
Total expenses		4,643		293		—		3,386		—		11,712		—		247		20,281
Operating (loss) income		(4,643)		(129)		—		2,087		—		740		—		16		(1,929)
Other (expense) income:
Interest expense		(120)		(45)		—		(546)		—		(145)		—		—		(856)
Other income, net		—		—		—		4		—		205		—		—		209
Total other (expense) income		(120)		(45)		—		(542)		—		60		—		—		(647)
Net (loss) income	$	(4,763)	$	(174)	$	—	$	1,545	$	—	$	800	$	—	$	16	$	(2,576)

(a) The project was under construction with no income or loss for the nine months ended September 30, 2021.

(b) The JV was formed in May 2022.

(c) The JV was formed in February 2022.

Latitude Margaritaville Watersound JV

LMWS, LLC (“Latitude Margaritaville Watersound JV”) was formed in 2019, when the Company entered into a JV agreement to develop a 55+ active adult residential community in Bay County, Florida. Construction is underway on customer homes and town center amenities. As of September 30, 2022, the Latitude Margaritaville Watersound JV had 641 homes under contract and has completed 247 home sale transactions of the total estimated 3,500 homes in the community. The community is located on land that was contributed to the JV by the Company in June 2020. As part of the land contribution, the Company agreed to make certain infrastructure improvements, such that the total contractual value of the land and its improvements total $35.0 million. As of September 30, 2022 and December 31, 2021, the Company’s investment in the unconsolidated Latitude Margaritaville Watersound JV was $32.5 million and $30.0 million, respectively, which includes the net present value of the land contribution, cash contributions, additional completed infrastructure improvements, equity in income and return of land contribution. The initial present value of the land contribution of $16.6 million, was based on the Company’s best estimate of the prevailing market rates for the source of credit using an imputed interest rate of 5.8% and timing of home sales. The Company continues to have a performance obligation to provide agreed upon infrastructure improvements in the vicinity of the contributed land, which will be recognized over time as improvements are completed. As of September 30, 2022, the Company completed $6.0 million of the agreed upon infrastructure improvements. The transaction price was allocated based on the stand-alone selling prices of the land and agreed upon improvements. As of September 30, 2022 and December 31, 2021, the Company owned a 50.0% voting interest in the JV. Each JV member will continue to contribute an equal amount of cash towards the development and construction of the main spine infrastructure and amenities. The Company’s unimproved land contribution and agreed upon infrastructure improvements are being returned at an average of $10,000 per home, as each home is sold by the JV.

Per the JV agreement, the Company, as lender, has provided interest-bearing financing in the form of a $10.0 million secured revolving promissory note (the “Latitude JV Note”) to the Latitude Margaritaville Watersound JV, as borrower, to finance the development of the pod-level, non-spine infrastructure. As of September 30, 2022, there was no

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balance outstanding on the Latitude JV Note. As of December 31, 2021, $7.1 million was outstanding on the Latitude JV Note. Future advances, if any, will be repaid by the JV as each home is sold. See Note 9. Other Assets for additional information related to the revolving promissory note. The day-to-day activities of the JV are being managed through a board of managers, with each JV partner having equal voting rights. The Company has determined that Latitude Margaritaville Watersound JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in the Latitude Margaritaville Watersound JV is accounted for using the equity method. See Note 19. Commitments and Contingencies for additional information related to the guaranty by the Company.

Sea Sound JV

FDSJ Eventide, LLC (“Sea Sound JV”) was formed in January 2020. The Company entered into a JV agreement to develop, construct and manage a 300-unit apartment community near the Breakfast Point residential community in Panama City Beach, Florida. Construction of the community was completed in the first quarter of 2022. As of September 30, 2022 and December 31, 2021, the Company owned a 60.0% interest in the JV. The Company’s partner is responsible for the day-to-day activities of the JV. The Company has determined that Sea Sound JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in Sea Sound JV is accounted for using the equity method. In January 2020, the JV entered into a $40.3 million loan (the “Sea Sound JV Loan”). The Sea Sound JV Loan bears interest at LIBOR plus 2.2% and matures in January 2024. The loan is secured by the real property and certain other security interests. The Company’s JV partner is the sole guarantor of the Sea Sound JV Loan. As of September 30, 2022 and December 31, 2021, $38.7 million and $35.0 million, respectively, was outstanding on the Sea Sound JV Loan.

Watersound Fountains Independent Living JV

WOSL, LLC (“Watersound Fountains Independent Living JV”) was formed in April 2021. The Company entered into a JV agreement to develop, construct and manage a 148-unit independent senior living community near the Watersound Origins residential community. The three JV parties are working together to develop and construct the project. The community is located on land that was contributed to the JV by the Company in April 2021, with a fair value of $3.2 million. In addition, during 2021, the Company contributed cash of $4.3 million and the JV partners contributed $6.4 million. As of September 30, 2022 and December 31, 2021, the Company owned a 53.8% interest in the JV. The Company’s partners are responsible for the day-to-day activities of the JV. The Company has determined that Watersound Fountains Independent Living JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in Watersound Fountains Independent Living JV is accounted for using the equity method. See Note 19. Commitments and Contingencies for additional information related to debt guaranteed by the Company.

Pier Park TPS JV

Pier Park TPS, LLC (“Pier Park TPS JV”) was formed in 2018. The Company entered into a JV agreement to develop and operate a 124-room hotel in Panama City Beach, Florida. As of September 30, 2022 and December 31, 2021, the Company owned a 50.0% interest in the JV. The Company’s partner is responsible for the day-to-day activities of the JV. The Company has determined that Pier Park TPS JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in Pier Park TPS JV is accounted for using the equity method. See Note 19. Commitments and Contingencies for additional information related to debt guaranteed by the Company.

Pier Park JV

Pier Park RI, LLC (“Pier Park RI JV”) was formed in May 2022. The Company entered into a JV agreement to develop and operate a 121-room hotel in Panama City Beach, Florida. The JV parties are working together to develop and construct the project. The hotel is located on land that was contributed to the JV by the Company in September 2022, with a fair value of $1.8 million. In addition, during the nine months ended September 30, 2022, the Company

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contributed cash and impact fees of $2.5 million, and the JV partner contributed cash of $4.3 million. As of September 30, 2022, the Company owned a 50.0% interest in the JV. The Company’s partner is responsible for the day-to-day activities of the JV. The Company has determined that Pier Park RI JV is a voting interest entity, but that the Company does not have a majority voting interest. The Company’s investment in Pier Park TPS JV is accounted for using the equity method. In September 2022, the JV entered into a $25.0 million loan (the “Pier Park RI JV Loan”). The Pier Park RI JV Loan bears interest at SOFR plus 2.5% and matures in August 2025. The Pier Park RI JV Loan includes an option for a fixed rate conversion and two options to extend the maturity date by twenty-four months each, upon satisfaction of certain terms and conditions. The loan is secured by the real property and certain other security interests. The Company’s JV partner is the sole guarantor and receives a fee related to the guarantee from the Company based on the Company’s ownership percentage. As of September 30, 2022, there was no principal balance outstanding on the Pier Park RI JV Loan.

Busy Bee JV

SJBB, LLC (“Busy Bee JV”) was formed in 2019, when the Company entered into a JV agreement to construct, own and manage a Busy Bee branded fuel station and convenience store in Panama City Beach, Florida. As of September 30, 2022 and December 31, 2021, the Company owned a 50.0% interest in the JV. The Company’s partner is responsible for the day-to-day activities of the JV. The Company has determined that Busy Bee JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in the Busy Bee JV is accounted for using the equity method. In November 2019, the JV, entered into a $5.4 million construction loan (the “Busy Bee JV Construction Loan”) and a $1.2 million equipment loan (the “Busy Bee JV Equipment Loan”). The Busy Bee JV Construction Loan and the Busy Bee JV Equipment Loan bear interest at LIBOR plus 1.5%. The Busy Bee JV Construction Loan provides for monthly principal and interest payments with a final balloon payment at maturity in November 2035. The Busy Bee JV Equipment Loan provides for monthly principal and interest payments through maturity in November 2027. The loans are secured by the real and personal property and certain other security interests. The Company’s JV partner is the sole guarantor and receives a fee related to the guarantee from the Company based on the Company’s ownership percentage. The Busy Bee JV entered into an interest rate swap to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR for the Busy Bee JV Construction Loan and the Busy Bee JV Equipment Loan. The Busy Bee JV Construction Loan interest rate swap matures on November 12, 2035 and fixed the variable rate debt, initially at $5.4 million amortizing to $2.8 million at swap maturity, to a rate of 2.7%. The Busy Bee JV Equipment Loan interest rate swap matures on November 12, 2027 and fixed the variable rate debt, initially at $1.2 million to maturity, to a rate of 2.1%. As of September 30, 2022 and December 31, 2021, $5.2 million and $5.3 million, was outstanding on the Busy Bee JV Construction Loan. As of September 30, 2022 and December 31, 2021, $0.9 million and $1.1 million, respectively, was outstanding on the Busy Bee JV Equipment Loan.

Electric Cart Watersound JV

SJECC, LLC (“Electric Cart Watersound JV”) was formed in February 2022, when the Company entered into a JV agreement to develop, construct, lease, manage and operate a golf cart and low speed vehicle “LSV” business at the new Watersound West Bay Center adjacent to the Latitude Margaritaville Watersound residential community in Bay County, Florida. This land was contributed to the JV by the Company in February 2022, with a fair value of $0.5 million. In addition, during 2022 the Company contributed cash of $0.2 million and the JV partner contributed cash of $0.6 million. The Watersound West Bay Center location is currently under development. The JV is operating from temporary facilities. An additional sales showroom will be located at the Watersound Town Center near the Watersound Origins residential community on property to be leased to the JV by the Company. As of September 30, 2022, the Company owned a 51% interest in the JV. The Company is currently responsible for the construction activities of the JV and the Company’s JV partner manages the day-to-day operations of the business. The Company has determined Electric Cart Watersound JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in Electric Cart Watersound JV is accounted for using the equity method. See Note 19. Commitments and Contingencies for additional information related to debt guaranteed by the Company.

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Watersound Management JV

Watersound Management, LLC was formed in June 2021. During 2021, the Company purchased an interest in Watersound Management, LLC for $0.5 million to form a JV to lease, manage and operate multi-family housing developments for which the JV is the exclusive renting and management agent. In addition, the Company and its JV partner each contributed cash of less than $0.1 million. As of September 30, 2022 and December 31, 2021, the Company owned a 50.0% interest in the JV. The day-to-day activities of the JV are being managed through a board of managers, with each JV partner having equal voting rights. The Company has determined that Watersound Management JV is a voting interest entity, but that the Company does not have a majority voting interest. The Company’s investment in Watersound Management JV is accounted for using the equity method.

5. Investments

Available-For-Sale Investments

Investments classified as available-for-sale securities were as follows:

	September 30, 2022
			Gross Unrealized		Gross Unrealized
	Amortized Cost		Gains		(Losses)		Fair Value
Investments - debt securities:
U.S. Treasury Bills	$	74,731	$	—	$	(698)	$	74,033

	December 31, 2021
			Gross Unrealized		Gross Unrealized
	Amortized Cost		Gains		(Losses)		Fair Value
Investments - debt securities:
U.S. Treasury Bills	$	88,966	$	1	$	(11)	$	88,956

During the three and nine months ended September 30, 2022, the Company did not have any realized gains or losses from the sale of available-for-sale securities. During the nine months ended September 30, 2022, proceeds from the sale of available-for-sale securities were $13.0 million, maturities of available-for-sale securities were $99.0 million and purchases of available-for-sale securities were $97.1 million.

During the three months ended September 30, 2021, the Company did not have any realized gains or losses from the sale of available-for-sale securities. During the nine months ended September 30, 2021, net realized gains from the sale of available-for-sale securities were less than $0.1 million, proceeds from the sale of available-for-sale securities were $1.2 million, maturities of available-for-sale securities were $73.0 million and purchases of available-for sale securities were $127.9 million.

The following table provides the available-for-sale investments with an unrealized loss position and their related fair values:

	September 30, 2022								December 31, 2021
	Less Than 12 Months				12 Months or Greater				Less Than 12 Months				12 Months or Greater
			Unrealized				Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investments - debt securities:
U.S. Treasury Bills	$	74,033	$	698	$	—	$	—	$	43,959	$	11	$	—	$	—

As of September 30, 2022, the Company had unrealized losses of $0.7 million related to U.S. Treasury Bills. As of December 31, 2021, the Company had de minimis unrealized losses related to U.S. Treasury Bills. As of September 30, 2022 and December 31, 2021, the Company determined the unrealized losses related to U.S. Treasury Bills were not due to credit impairment and did not record an allowance for credit losses related to available-for-sale

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debt securities. In addition, the Company did not intend to sell the investments with a material unrealized loss and it is more likely than not that the Company will not be required to sell any of these securities prior to their anticipated recovery.

The amortized cost and estimated fair value of investments - debt securities classified as available-for-sale, by contractual maturity are shown in the following table.

	September 30, 2022
	Amortized Cost		Fair Value
Due in one year or less	$	74,731	$	74,033

Investment Management Agreement

Mr. Bruce R. Berkowitz is the Chairman of the Company’s Board of Directors (the “Board”). He is the Manager of, and controls entities that own and control, Fairholme Holdings, LLC, which wholly owns Fairholme Capital Management, L.L.C. (“FCM”), an investment advisor registered with the SEC. Mr. Berkowitz is the Chief Investment Officer of FCM, which has provided investment advisory services to the Company since April 2013. FCM does not receive any compensation for services as the Company’s investment advisor. As of September 30, 2022, clients of FCM, including Mr. Berkowitz, beneficially owned approximately 42.0% of the Company’s common stock. FCM and its client, The Fairholme Fund, (“Fairholme”) a series of investments originating from the Fairholme Funds, Inc., may be deemed affiliates of the Company.

Pursuant to the terms of an Investment Management Agreement, as amended, (the “Investment Management Agreement”) with the Company, FCM agreed to supervise and direct the Company’s investment accounts in accordance with the investment guidelines and restrictions approved by the Company. The investment guidelines are set forth in the Investment Management Agreement and require that any new securities for purchase must be issues of the U.S. Treasury or U.S. Treasury Money Market Funds.

6. Financial Instruments and Fair Value Measurements

Fair Value Measurements

The financial instruments measured at fair value on a recurring basis are as follows:

	September 30, 2022
							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents:
Money market funds	$	1,079	$	—	$	—	$	1,079
		1,079		—		—		1,079
Investments - debt securities:
U.S. Treasury Bills		74,033		—		—		74,033
		74,033		—		—		74,033
Investments - equity securities:
Preferred stock		—		334		—		334
		—		334		—		334
	$	75,112	$	334	$	—	$	75,446

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	December 31, 2021
							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents:
Money market funds	$	40,412	$	—	$	—	$	40,412
U.S. Treasury Bills		4,000		—		—		4,000
		44,412		—		—		44,412
Investments - debt securities:
U.S. Treasury Bills		88,956		—		—		88,956
		88,956		—		—		88,956
Investments - equity securities:
Preferred stock		—		450		—		450
		—		450		—		450
	$	133,368	$	450	$	—	$	133,818

Money market funds and U.S. Treasury Bills are measured based on quoted market prices in an active market and categorized within Level 1 of the fair value hierarchy. Money market funds and short-term U.S. Treasury Bills with a maturity date of 90 days or less from the date of purchase are classified as cash equivalents in the Company’s condensed consolidated balance sheets.

The Company’s preferred stock investments are not traded on a nationally recognized exchange but are traded in the U.S. over-the-counter market where there is less trading activity and the investments are measured primarily using pricing data from external pricing services that report prices observed for recently executed market transactions. For these reasons, the Company has determined that preferred stock investments are categorized as Level 2 financial instruments since their fair values were determined from market inputs in an inactive market.

Assets and liabilities measured at fair value on a recurring basis related to interest rate swap agreements designated as cash flow hedges are as follows:

			Fixed		Notional					Fair	Location in
	Effective	Maturity	Interest		Amount as of	Derivative Asset (Liability) Fair Value				Value	Consolidated
Description	Date	Date	Rate		September 30, 2022	September 30, 2022		December 31, 2021		Level	Balance Sheets
					In Millions	In Thousands
Pier Park Resort Hotel JV Loan (a)	12/10/2022	4/12/2027	3.2%	$	42.0	$	4,517	$	558	2	Other assets
Watercrest JV Loan (a) (b)	6/1/2021	6/1/2024	4.4%	$	—	$	—	$	(634)	2	Other liabilities
Pier Park TPS JV Loan (c)	1/14/2021	1/14/2026	5.2%	$	13.9	$	277	$	(436)	2	Investment in unconsolidated joint ventures

(a) See Note 10. Debt, Net for additional information.

(b) In April 2022, the swap was terminated resulting in a gain of $0.1 million, included in interest expense on the condensed consolidated statements of income for the nine months ended September 30, 2022.

(c) Interest rate swap was entered into by the Pier Park TPS JV, which is unconsolidated and accounted for using the equity method. The derivative asset has been recorded at the Company’s proportionate share of its estimated fair value. The Company’s proportionate share of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into equity in income (loss) from unconsolidated joint ventures in the period during which the hedged transaction affects earnings. See Note 4. Joint Ventures and Note 19. Commitments and Contingencies for additional information.

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The following is a summary of the effect of derivative instruments on the Company’s condensed consolidated statements of income and condensed consolidated statements of comprehensive income:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Amount of gain recognized in other comprehensive income on derivatives	$	1,734	$	300	$	5,155	$	543
Amount of loss reclassified into interest expense	$	—	$	106	$	52	$	140
Amount of loss reclassified into equity in income (loss) from unconsolidated joint ventures	$	15	$	48	$	98	$	126

As of September 30, 2022, based on current value, the Company expects to reclassify $0.4 million of derivative instruments from accumulated other comprehensive income (loss) to earnings during the next twelve months.

Investment in Unconsolidated Joint Ventures

The Company evaluates its investment in unconsolidated JVs for impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in the value of the Company’s investment in the unconsolidated JV has occurred. The amount of impairment recognized is the excess of the investment’s carrying value over its estimated fair value. The fair value of the Company’s investment in unconsolidated JVs is determined primarily using a discounted cash flow model to value the underlying net assets of the respective JV. The fair value of investment in unconsolidated JVs required to be assessed for impairment is determined using Level 3 inputs in the fair value hierarchy. No impairment for unconsolidated JVs was recorded during the three and nine months ended September 30, 2022 and 2021. See Note 4. Joint Ventures for additional information.

Fair Value of Financial Instruments

The Company uses the following methods and assumptions in estimating fair value for financial instruments:

● The fair value of the investments held by SPEs - time deposit is based on the present value of future cash flows at the current market rate.

● The fair value of the investments held by SPEs - U.S. Treasury Bills are measured based on quoted market prices in an active market.

● The fair value of debt is based on discounted future expected cash flows based on current market rates for financial instruments with similar risks, terms and maturities.

● The fair value of the senior notes held by SPE is based on the present value of future cash flows at the current market rate.

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The carrying amount and estimated fair value, measured on a nonrecurring basis, of the Company’s financial instruments were as follows:

	September 30, 2022					December 31, 2021
	Carrying		Estimated			Carrying		Estimated
	value		Fair value		Level	value		Fair value		Level
Investments held by SPEs:
Time deposit	$	200,000	$	200,000	3	$	200,000	$	200,000	3
U.S. Treasury Bills	$	4,452	$	4,321	1	$	5,132	$	5,475	1
Senior Notes held by SPE	$	177,783	$	178,887	3	$	177,566	$	204,802	3
Debt
Fixed-rate debt	$	131,809	$	110,959	2	$	129,532	$	126,722	2
Variable-rate debt		194,995		194,995	2		97,942		97,942	2
Total debt	$	326,804	$	305,954		$	227,474	$	224,664

Investments and Senior Notes Held by Special Purpose Entities

In connection with a real estate sale in 2014, the Company received consideration including a $200.0 million fifteen-year installment note (the “Timber Note”) issued by Panama City Timber Finance Company, LLC. The Company contributed the Timber Note and assigned its rights as a beneficiary under a letter of credit to Northwest Florida Timber Finance, LLC. Northwest Florida Timber Finance, LLC monetized the Timber Note by issuing $180.0 million aggregate principal amount of its 4.8% Senior Secured Notes due in 2029 (the “Senior Notes”) at an issue price of 98.5% of face value to third party investors. The investments held by Panama City Timber Finance Company, LLC as of September 30, 2022, consist of a $200.0 million time deposit that, subsequent to April 2, 2014, pays interest at 4.0% and matures in March 2029, U.S. Treasuries of $4.4 million and cash of $0.4 million. The Senior Notes held by Northwest Florida Timber Finance, LLC as of September 30, 2022 consist of $177.8 million, net of the $2.2 million discount and debt issuance costs. Panama City Timber Finance Company, LLC and Northwest Florida Timber Finance, LLC are VIEs, which the Company consolidates as the primary beneficiary of each entity.

7. Hurricane Michael

On October 10, 2018, Hurricane Michael made landfall in the Florida Panhandle. The majority of the Company’s properties incurred minimal or no damage; however, the Company’s Point South Marina Bay Point in Bay County and Point South Marina Port St. Joe in Gulf County, as well as certain timber, commercial and multi-family leasing assets were impacted. The marinas suffered significant damage requiring long-term restoration and have remained closed during the reconstruction of significant portions of these assets. The Point South Marina Bay Point fully reopened in the third quarter of 2022 and a portion of the Point South Marina Port St. Joe is expected to open in 2022.

The Company maintains property and business interruption insurance, subject to certain deductibles, and is continuing to assess claims under such policies; however, the timing and amount of insurance proceeds are uncertain and may not be sufficient to cover all losses. Timing differences exist between the impairment losses, capital expenditures made to repair or restore properties and recognition and receipt of insurance proceeds reflected in the Company’s financial statements. During the three and nine months ended September 30, 2022, no insurance proceeds were received related to business interruption. During the three and nine months ended September 30, 2021, $0.2 million and $0.6 million, respectively, of business interruption proceeds were received related to the marinas, which are included within the cost of hospitality revenue on the condensed consolidated statements of income.

During the three months ended September 30, 2022 and 2021, the Company recognized $0.9 million and $2.5 million, respectively, of gain on insurance recovery and incurred loss from hurricane damage of less than $0.1 million during each period. During the nine months ended September 30, 2022 and 2021, the Company recognized $4.2 million and $3.9 million, respectively, of gain on insurance recovery and incurred loss from hurricane damage of less than $0.1

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million during each period. The gain on insurance recovery and loss from hurricane damage were included in other income, net on the condensed consolidated statements of income.

8. Leases

The Company as Lessor

Leasing revenue consists of rental revenue from multi-family, senior living, self-storage, retail, office and commercial property, cell towers and other assets, which is recognized as earned, using the straight-line method over the life of each lease. The Company’s leases have remaining lease terms up to the year 2042, some of which include options to terminate or extend.

The components of leasing revenue are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Leasing revenue
Lease payments	$	8,765	$	5,904	$	24,131	$	15,541
Variable lease payments		1,284		1,242		4,084		3,571
Total leasing revenue	$	10,049	$	7,146	$	28,215	$	19,112

Minimum future base rental revenue on non-cancelable leases subsequent to September 30, 2022, for the years ending December 31 are:

2022	$	6,727
2023		18,153
2024		12,100
2025		9,004
2026		7,281
Thereafter		32,485
	$	85,750

The Company as Lessee

As of September 30, 2022, the Company leased certain office and other equipment under finance leases and had operating leases for property and equipment used in corporate, hospitality and commercial operations with remaining lease terms up to the year 2049. Certain leases include options to purchase, terminate or renew for one or more years, which are included in the lease term used to establish right-of-use assets and lease liabilities when it is reasonably certain that the option will be exercised. Finance lease right-of-use assets are included within property, plant and equipment and operating lease right-of-use assets are included within other assets on the condensed consolidated balance sheets, which represent the Company’s right to use an underlying asset during a lease term for leases in excess of one year. Corresponding finance lease liabilities and operating lease liabilities are included within other liabilities on the condensed consolidated balance sheets and are related to the Company’s obligation to make lease payments for leases in excess of one year. The Company uses its incremental borrowing rate to determine the present value of the lease payments since the rate implicit in each lease is not readily determinable. The Company recognizes short-term (twelve months or less) lease payments in profit or loss on a straight-line basis over the term of the lease and variable lease payments in the period in which the obligation for those payments is incurred.

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The components of lease expense are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022			2021
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	30	$	29	$	90		$	85
Interest on lease liability		3		5		11			14
Operating lease cost		92		80		286			236
Variable and short-term lease cost		576		518		1,401			1,262
Total lease cost	$	701	$	632	$	1,788		$	1,597
Other information
Weighted-average remaining lease term - finance lease (in years)						3.2			3.8
Weighted-average remaining lease term - operating leases (in years)						3.0			3.4
Weighted-average discount rate - finance lease						4.9	%		4.6	%
Weighted-average discount rate - operating leases						4.8	%		4.9	%

The aggregate payments of finance and operating lease liabilities subsequent to September 30, 2022, for the years ending December 31 are:

	Finance Leases		Operating Leases
2022	$	34	$	92
2023		136		329
2024		89		178
2025		52		55
2026		8		12
Thereafter		1		269
Total		320		935
Less imputed interest		(19)		(174)
Total lease liabilities	$	301	$	761

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9. Other Assets

Other assets consist of the following:

	September 30,		December 31,
	2022		2021
Investments - equity securities	$	334	$	450
Accounts receivable, net		9,763		13,813
Homesite sales receivable		9,089		7,651
Notes receivable, net		2,908		12,377
Income tax receivable		1,558		—
Inventory		3,692		2,797
Prepaid expenses		9,209		7,175
Straight-line rent		2,625		2,489
Operating lease right-of-use assets		761		732
Other assets		13,484		5,987
Retained interest investments		7,832		13,826
Accrued interest receivable for Senior Notes held by SPE		935		2,938
Total other assets	$	62,190	$	70,235

Investments - Equity Securities

As of September 30, 2022 and December 31, 2021, investments - equity securities included $0.3 million and $0.5 million, respectively, of preferred stock investments recorded at fair value. During each the three and nine months ended September 30, 2022, the Company recognized unrealized gain of less than $0.1 million on investments related to equity securities still held as of September 30, 2022. During the three and nine months ended September 30, 2021, the Company recognized unrealized gain of $0.1 million and unrealized loss of $0.9 million, respectively, on investments related to equity securities still held as of September 30, 2021. These amounts were included within investment income, net on the condensed consolidated statements of income.

Accounts Receivable, Net

The Company’s accounts receivable, net primarily includes leasing receivables, membership initiation fees, hospitality receivables and other receivables. At each reporting period, accounts receivable in the scope of Topic 326 are pooled by type and judgements are made based on historical losses and expected credit losses based on economic trends to determine the allowance for credit losses primarily using the aging method. Actual losses could differ from those estimates. Write-offs are recorded when the Company concludes that all or a portion of the receivable is no longer collectible and recoveries on receivables previously charged-off are credited to the allowance. As of September 30, 2022 and December 31, 2021, accounts receivable were presented net of allowance for credit losses of $0.3 million and $0.4 million, respectively, and net of allowance for lease related receivables of $0.1 million as of each period. During the nine months ended September 30, 2022, allowance for credit losses related to accounts receivable, net decreased $0.1 million.

Homesite Sales Receivable

Homesite sales receivable from contracts with customers include estimated homesite residuals and certain estimated fees that are recognized as revenue at the time of sale to homebuilders, subject to constraints. Any change in circumstances from the estimated amounts will be updated at each reporting period. The receivable will be collected as the homebuilders build the homes and sell to retail consumers, which can occur over multiple years.

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The following table presents the changes in homesite sales receivable:

	September 30, 2022		September 30, 2021
Balance at beginning of period	$	7,651	$	5,675
Increases due to revenue recognized for homesites sold		4,678		3,670
Decreases due to amounts received		(3,240)		(3,376)
Balance at end of period	$	9,089	$	5,969

Notes Receivable, Net

Notes receivable, net consists of the following:

	September 30,		December 31,
	2022		2021
Interest bearing revolving promissory note with the unconsolidated Latitude Margaritaville Watersound JV, secured by the JV's real property — bearing interest at a rate of 5.0%, matures June 2025	$	—	$	7,075
Various interest bearing homebuilder notes, secured by the real estate sold — bearing interest at a rate of 5.5%, due November 2022 through May 2023		2,455		4,824
Interest bearing notes with JV partner, secured by the partner's membership interest in the JV — bearing interest at a rate of 8.0%, due May 2039		359		359
Non-interest bearing note with a tenant for tenant improvements, due October 2025		70		76
Mortgage note, secured by certain real estate, bearing interest at a rate of 4.8% due November 2023		24		43
Total notes receivable, net	$	2,908	$	12,377

In June 2020, the Company entered into a $10.0 million secured revolving promissory note with the unconsolidated Latitude Margaritaville Watersound JV. The Latitude JV Note was provided to finance the development of the pod-level, non-spine infrastructure. Future advances, if any, will be repaid by the JV as each home is sold by the JV, with the aggregate unpaid principal and all accrued and unpaid interest due at maturity in June 2025. The note is secured by a mortgage and security interest in and on the real property and improvements located on the real property of the JV. See Note 4. Joint Ventures for additional information.

The Company may allow homebuilders to pay for homesites during the home construction period in the form of homebuilder notes. The Company evaluates the carrying value of all notes receivable and the need for an allowance for credit losses at each reporting period. As of both September 30, 2022 and December 31, 2021, notes receivable were presented net of allowance for credit losses of $0.1 million. As of September 30, 2022 and December 31, 2021, accrued interest receivable related to notes receivable was $0.2 million and $0.1 million, which is included within other assets on the condensed consolidated balance sheets.

Other Assets

Other assets as of September 30, 2022 and December 31, 2021, include $7.7 million and $3.9 million, respectively, of escrow deposits primarily related to financing and development requirements for certain of the Company’s projects. Other assets as of September 30, 2022 and December 31, 2021, also include $4.5 million and $0.6 million, respectively, for the fair value of derivative assets. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

Retained Interest Investments

The Company has a beneficial interest in certain bankruptcy-remote qualified SPEs used in the installment sale monetization of certain sales of timberlands in 2008. The SPEs’ assets are not available to satisfy the Company’s liabilities or obligations and the liabilities of the SPEs are not the Company’s liabilities or obligations. Therefore, the SPEs’ assets and liabilities are not consolidated in the Company’s condensed consolidated financial statements as of

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September 30, 2022 and December 31, 2021. The Company’s continuing involvement with the SPEs is the receipt of the net interest payments and the remaining principal of approximately $10.1 million to be received at the end of the installment notes’ fifteen-year maturity period, in 2023 through 2024. During the nine months ended September 30, 2022, two installment notes matured and the Company received $6.9 million of remaining principal. The Company has a beneficial or retained interest investment related to these SPEs of $7.8 million and $13.8 million as of September 30, 2022 and December 31, 2021, respectively, recorded in other assets on the Company’s condensed consolidated balance sheets.

10. Debt, Net

Debt consists of the following:

	Maturity Date	Interest Rate Terms	Effective Rate September 30, 2022		September 30, 2022		December 31, 2021
Watersound Origins Crossings JV Loan	May 2024	SOFR plus 2.8, floor 3.3% (a)	5.7	%	$	44,015	$	37,897
PPN JV Loan	November 2025	Fixed	4.1	%		42,816		43,582
Pier Park Resort Hotel JV Loan (b)	April 2027	LIBOR plus 2.2%	5.3	%		38,333		14,650
PPC JV Loan (insured by HUD)	June 2060	Fixed	3.1	%		35,304		35,670
PPC II JV Loan (insured by HUD) (c)	May 2057	Fixed	2.7	%		22,723		17,374
Watercrest JV Loan	June 2047	LIBOR plus 2.2% (d)	5.3	%		21,150		20,053
Breakfast Point Hotel Loan	November 2042	LIBOR plus 2.8%, floor 3.8%	5.9	%		16,413		11,843
North Bay Landing Apartments Loan	September 2024	LIBOR plus 2.5%, floor 3.2%	5.6	%		15,693		1,342
Airport Hotel Loan	March 2025	LIBOR plus 2.0%, floor 3.0%	5.1	%		14,642		14,642
Mexico Beach Crossings JV Loan (insured by HUD)	March 2064	Fixed	3.0	%		13,678		—
Watersound Camp Creek Loan	December 2047	LIBOR plus 2.1%, floor 2.6%	5.2	%		13,131		3,437
Lodge 30A JV Loan	January 2028	Fixed	3.8	%		13,039		7,474
Watersound Town Center Grocery Loan	August 2031	LIBOR plus 2.0%, floor 2.2%	5.1	%		9,586		620
Hotel Indigo Loan	October 2028	SOFR plus 2.7%, floor 2.7%	5.7	%		6,245		—
Beckrich Building III Loan	August 2029	LIBOR plus 1.7%	4.8	%		5,038		5,188
Self-Storage Facility Loan	November 2025	LIBOR plus 2.4%, floor 2.9%	5.5	%		4,666		4,666
Community Development District debt	May 2023-May 2039	Fixed	3.6 to 6.0	%		4,249		4,909
Topsail Hotel Loan	July 2027	SOFR plus 2.1%, floor 3.0%	5.1	%		2,107		—
Beach Homes Loan	May 2029	LIBOR plus 1.7%	4.8	%		1,455		1,492
Pier Park Outparcel Loan	March 2027	LIBOR plus 1.7%	4.8	%		1,312		1,370
WaterColor Crossings Loan	February 2029	LIBOR plus 1.7%	4.8	%		1,209		1,265
Total principal outstanding						326,804		227,474
Unamortized discount and debt issuance costs						(5,719)		(4,440)
Total debt, net					$	321,085	$	223,034

(a) In January 2022, the Watersound Origins Crossings JV Loan interest rate was modified from a fixed rate of 5.0%.

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(b) The Pier Park Resort Hotel JV entered into an interest rate swap that is effective December 10, 2022 and matures on April 12, 2027 and fixed the variable rate on the notional amount of related debt of $42.0 million to a rate of 3.2%. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

(c) In April 2022, the PPC II JV Loan was amended from a rate of LIBOR plus 2.1% and maturity date of October 2024.

(d) As of December 31, 2021, the interest rate was swapped to a fixed rate of 4.4% on the notional amount of related debt of $20.0 million. The interest rate swap was terminated in April 2022. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

The Company’s indebtedness consists of various loans on real and leasehold property. These loans are typically secured by various interests in the property such as assignment of rents, leases, deposits, permits, plans, specifications, fees, agreements, approvals, contracts, licenses, construction contracts, development contracts, service contracts, franchise agreements, the borrower’s assets, improvements, and security interests in the rents, personal property, management agreements, construction agreements, improvements, accounts, profits, leases, accounts and fixtures (collectively, “Security Interests”). The specific Security Interests vary from loan to loan. As of September 30, 2022, the weighted average effective interest rate of outstanding debt was 4.6%, of which 40.3% of the debt outstanding includes fixed interest rates, and the average remaining life of debt outstanding was 14.2 years.

In 2019, the Watersound Origins Crossings JV entered into a $37.9 million loan (the “Watersound Origins Crossings JV Loan”) to finance the construction of apartments located near the entrance to the Watersound Origins residential community. In January 2022, the Watersound Origins Crossings JV entered into a modification of the loan that increased the principal amount of the loan to $44.0 million, modified the interest rate from 5.0% to the Secured Overnight Financing Rate (“SOFR”) plus 2.8%, with a floor of 3.3%, and provides for payments of interest only with a final balloon payment at maturity in May 2024. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Watersound Origins Crossings JV Loan. As guarantor, the Company’s liability has been reduced to 25% of the outstanding principal amount, based on meeting certain debt service coverage and loan to value requirements. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation or failure to abide by other certain obligations on the part of such guarantor. The Company is the sole guarantor and receives a monthly fee related to the guarantee from its JV partner based on the JV partner’s ownership percentage. As of September 30, 2022, the Company incurred less than $0.1 million of additional loan cost due to the loan modification.

In 2015, the Pier Park North JV entered into a $48.2 million loan (the “PPN JV Loan”), secured by a first lien on, and Security Interest in, a majority of the Pier Park North JV’s property. The loan provides for principal and interest payments with a final balloon payment at maturity in November 2025. In connection with the loan, the Company entered into a limited guarantee in favor of the lender, based on its percentage ownership of the JV. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation by the Pier Park North JV; any voluntary transfer or encumbrance of the property in violation of the due-on-sale clause in the security instrument; upon commencement of voluntary bankruptcy or insolvency proceedings and upon breach of covenants in the security instrument.

In April 2020, the Pier Park Resort Hotel JV entered into a loan with an initial amount of $52.5 million and up to a maximum of $60.0 million through additional earn-out requests (the “Pier Park Resort Hotel JV Loan”). The loan was entered into to finance the construction of an Embassy Suites by Hilton hotel in the Pier Park area of Panama City Beach, Florida. The loan provides for interest only payments for the first thirty-six months and principal and interest payments thereafter with a final balloon payment at maturity in April 2027. The loan is secured by the real property and certain other Security Interests. In connection with the loan, as guarantors, the Company and the Company’s JV partner entered into a guarantee based on each partner’s ownership interest in favor of the lender, to guarantee the payment and performance of the borrower. As guarantor, the Company’s liability under the Pier Park Resort Hotel JV Loan will be released upon reaching and maintaining certain debt service coverage for twelve months. In addition, the guarantee can become full recourse in the case of the failure of the guarantors to abide by or perform any of the covenants or warranties to be performed on the part of such guarantor. The Pier Park Resort Hotel JV entered into an interest rate swap to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR. The interest rate swap is effective December 10, 2022 and matures on April 12, 2027 and fixed the variable rate on the notional amount of related debt of $42.0 million to a rate of 3.2%. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

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In 2018, the Pier Park Crossings JV entered into a $36.6 million loan, insured by the U.S. Department of Housing and Urban Development (“HUD”), to finance the construction of apartments in Panama City Beach, Florida (the “PPC JV Loan”). The loan provides for monthly principal and interest payments through maturity in June 2060. The loan includes a prepayment premium due to the lender of 2% - 10% for any additional principal that is prepaid through August 31, 2031. The loan is secured by the real property and certain other Security Interests.

In 2019, the Pier Park Crossings Phase II JV entered into a $17.5 million loan (the “PPC II JV Loan”) to finance the construction of apartments in Panama City Beach, Florida. In April 2022, the Pier Park Crossings Phase II JV entered into an amendment of the PPC II JV Loan that increased the principal amount of the loan, which had a balance of $17.3 million at the time of the amendment, to $22.9 million, fixed the interest rate to 2.7% and provides for monthly payments of principal and interest through maturity in May 2057. The amended loan terms include a prepayment premium due to the lender of 1% - 10% for any additional principal that is prepaid through May 31, 2032. The amended loan is insured by HUD and is secured by the real property and certain other Security Interests. As of September 30, 2022, the Company incurred $0.2 million of additional loan cost. As a result of the amendment, the nine months ended September 30, 2022 include a $0.1 million loss on early extinguishment of debt related to unamortized debt issuance costs, included within other income, net on the condensed consolidated statements of income.

In 2019, the Watercrest JV entered into a $22.5 million loan (the “Watercrest JV Loan”) to finance the construction of a senior living facility in Santa Rosa Beach, Florida. The loan provides for monthly principal and interest payments through maturity in June 2047. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Watercrest JV Loan. The Company is the sole guarantor and receives a quarterly fee related to the guarantee from its JV partner based on the JV partner’s ownership percentage. The Watercrest JV entered into an interest rate swap to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR. The interest rate swap was effective June 1, 2021 and matures on June 1, 2024 and fixed the variable rate on the notional amount of related debt of $20.0 million to a rate of 4.4%. In April 2022, the swap was terminated resulting in a gain of $0.1 million, included in interest expense on the condensed consolidated statements of income for the nine months ended September 30, 2022. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

In November 2020, a wholly-owned subsidiary of the Company entered into a $16.8 million loan to finance the construction of a Homewood Suites by Hilton hotel in the Breakfast Point area of Panama City Beach, Florida (the “Breakfast Point Hotel Loan”). The loan provides for interest only payments for the first twenty-four months and principal and interest payments thereafter through maturity in November 2042. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Breakfast Point Hotel Loan.

In March 2021, a wholly-owned subsidiary of the Company entered into a $26.8 million construction loan to finance the construction of apartments in Panama City, Florida (the “North Bay Landing Apartments Loan”). The loan provides for interest only payments and a principal balloon payment at maturity in September 2024. The loan includes an option for an extension of the maturity date by eighteen months, subject to certain conditions, which would provide for principal and interest payments commencing on the original maturity date with a final balloon payment at the extended maturity date. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee completion of the project and the payment and performance of the borrower under the North Bay Landing Apartments Loan. As guarantor, the Company’s liability under the loan will be reduced to 50% of the principal amount upon satisfaction of final advance conditions and reduced to 25% of the outstanding principal amount upon reaching and maintaining a certain debt service coverage ratio. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation or failure to abide by other certain obligations on the part of such guarantor.

In March 2020, a wholly-owned subsidiary of the Company entered into a $15.3 million loan (the “Airport Hotel Loan”) to finance construction of the Hilton Garden Inn Panama City Airport. The loan provides for interest only payments for the first thirty-six months and principal and interest payments thereafter with a final balloon payment at maturity in March 2025. The loan is secured by the real property and certain other Security Interests. In connection with

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the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Airport Hotel Loan.

In January 2022, the Mexico Beach Crossings JV entered into a $43.5 million loan, insured by HUD, to finance the construction of apartments in Mexico Beach, Florida (the “Mexico Beach Crossings JV Loan”). The loan provides for interest only payments for the first twenty-seven months and principal and interest payments thereafter through maturity in March 2064. The loan may not be prepaid prior to April 1, 2024 and if any additional principal is prepaid from April 1, 2024 through March 31, 2034 a premium is due to the lender of 1% - 10%. The loan is secured by the real property and certain other Security Interests.

In June 2021, a wholly-owned subsidiary of the Company entered into a $28.0 million loan to finance the construction of Watersound Camp Creek, which includes an inn and amenity center near the Watersound Camp Creek residential community (the “Watersound Camp Creek Loan”). The loan provides for interest only payments for the first eighteen months and principal and interest payments thereafter through maturity in December 2047. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee completion of the project and the payment of the borrower under the Watersound Camp Creek Loan. As guarantor, the Company’s liability under the loan will be reduced to 50% of the outstanding principal amount upon the project reaching and maintaining a trailing six months of operations with a certain debt service coverage ratio and reduced to 25% of the outstanding principal amount upon reaching and maintaining a trailing twelve months of operations of a certain debt service coverage ratio. In addition, the guarantee can become full recourse in the case of the failure of guarantor to abide by or perform any of the covenants, warranties or other certain obligations to be performed on the part of such guarantor.

In January 2021, The Lodge 30A JV entered into a $15.0 million loan to finance the construction of a boutique hotel in Seagrove Beach, Florida (the “Lodge 30A JV Hotel Loan”). The loan provides for interest only payments for the first twenty-four months and principal and interest payments thereafter with a final balloon payment at maturity in January 2028. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company, wholly-owned subsidiaries of the Company and the Company’s JV partner entered into a joint and several payment and performance guarantee in favor of the lender. Upon reaching a certain debt service coverage ratio for a minimum of twenty-four months, the Company’s liability as guarantor will be reduced to 75% of the outstanding principal amount for a twelve-month period. The debt service coverage ratio will be tested annually thereafter and the Company’s liability will be reduced to 50% in year four and 25% in year five. The Company receives a monthly fee related to the guarantee from its JV partner based on the JV partner’s ownership percentage.

In August 2021, a wholly-owned subsidiary of the Company entered into a $12.0 million loan to finance the construction of a building in the Watersound Town Center near the Watersound Origins residential community (the “Watersound Town Center Grocery Loan”). The loan provides for interest only payments for the first twenty-four months and principal and interest payments thereafter with a final balloon payment at maturity in August 2031. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the performance of the borrower under the Watersound Town Center Grocery Loan. As guarantor, the Company’s liability under the loan will be reduced to 50% of the outstanding principal amount upon satisfaction of final advance conditions, issuance of the certificate of occupancy for the project and receipt of the initial base rent payment and reduced to 25% of the outstanding principal amount upon reaching a certain debt service coverage ratio and the project maintaining 93% occupancy for ninety consecutive days.

In October 2021, a wholly-owned subsidiary of the Company entered into a $21.2 million loan to finance the construction of a hotel in Panama City, Florida (the “Hotel Indigo Loan”). The loan provides for interest only payments for the first twenty-four months and principal and interest payments thereafter with a final balloon payment at maturity in October 2028. The loan includes an option for an extension of the maturity date by sixty months, subject to certain conditions, which would provide for continued principal and interest payments with a final balloon payment at the extended maturity date. In June 2022, the loan was amended to revise the interest rate to SOFR plus 2.7%, with a floor of 2.7%, through October 2023 and SOFR plus 2.5%, with a floor of 2.5%, from November 2023 through maturity. The loan is secured by the leasehold property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee completion of the project and the payment and performance of the borrower under the Hotel Indigo Loan.

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In 2019, a wholly-owned subsidiary of the Company entered into a $5.5 million loan (the “Beckrich Building III Loan”) to finance the construction of an office building in Panama City Beach, Florida. The loan provides for monthly principal and interest payments with a final balloon payment at maturity in August 2029. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Beckrich Building III Loan.

In November 2020, a wholly-owned subsidiary of the Company entered into a $5.8 million loan to finance the construction of a self-storage facility in Santa Rosa Beach, Florida (the “Self-Storage Facility Loan”). The loan provides for interest only payments for the first forty-eight months and principal and interest payments thereafter with a final balloon payment at maturity in November 2025. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Self-Storage Facility Loan. The Company’s liability as guarantor under the loan shall not exceed $2.9 million, plus any additional fees, upon reaching and maintaining certain debt service coverage.

Community Development District (“CDD”) bonds financed the construction of infrastructure improvements at some of the Company’s projects. The principal and interest payments on the bonds are paid by assessments on the properties benefited by the improvements financed by the bonds. CDD debt is secured by certain real estate or other collateral. The Company has recorded a liability for CDD debt that is associated with platted property, which is the point at which it becomes fixed and determinable. Additionally, the Company has recorded a liability for the portion of the CDD debt that is associated with unplatted property if it is probable and reasonably estimable that the Company will ultimately be responsible for repayment. The Company’s total CDD debt assigned to property it owns was $13.2 million and $14.1 million as of September 30, 2022 and December 31, 2021, respectively. The Company pays interest on this total outstanding CDD debt.

In July 2022, a wholly-owned subsidiary of the Company entered into a $13.7 million loan to finance the construction of a hotel in Santa Rosa Beach, Florida (the “Topsail Hotel Loan”). The loan provides for interest only payments for the first thirty-six months and principal and interest payments thereafter with a final balloon payment at maturity in July 2027. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Topsail Hotel Loan.

In 2018, a wholly-owned subsidiary of the Company entered into a $1.7 million loan to finance the construction of two beach homes located in Panama City Beach, Florida (the “Beach Homes Loan”). The loan provides for monthly principal and interest payments with a final balloon payment at maturity in May 2029. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Beach Homes Loan.

In 2017, a wholly-owned subsidiary of the Company entered into a $1.6 million loan to finance the construction of a commercial leasing property located in Panama City Beach, Florida (the “Pier Park Outparcel Loan”). The loan provides for monthly principal and interest payments with a final balloon payment at maturity in March 2027. The loan is secured by the real property and certain other Security Interests.

In 2018, a wholly-owned subsidiary of the Company entered into a $1.9 million loan to finance the construction of a commercial leasing property located in Santa Rosa Beach, Florida (the “WaterColor Crossings Loan”). The loan provides for monthly principal and interest payments with a final balloon payment at maturity in February 2029. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the WaterColor Crossings Loan.

The Company’s financing agreements are subject to various customary debt covenants and as of both September 30, 2022 and December 31, 2021, the Company was in compliance with the financial debt covenants.

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As of September 30, 2022, assets that were pledged as collateral related to the Company’s debt agreements, including unfunded commitments, had an approximate carrying amount of $469.3 million. These assets are included within investment in real estate, net and property and equipment, net on the condensed consolidated balance sheets.

The aggregate maturities of debt subsequent to September 30, 2022, for the years ending December 31 are:

2022	$	716
2023		5,268
2024		66,599
2025		64,377
2026		5,490
Thereafter		184,354
	$	326,804

11. Other Liabilities

Other liabilities consist of the following:

	September 30,		December 31,
	2022		2021
Accounts payable	$	61,249	$	48,597
Income tax payable		—		681
Finance lease liabilities		301		380
Operating lease liabilities		761		732
Accrued compensation		5,138		4,877
Other accrued liabilities		8,367		4,126
Club membership deposits		3,485		3,602
Advance deposits		3,324		2,140
Accrued interest expense for Senior Notes held by SPE		713		2,850
Total other liabilities	$	83,338	$	67,985

Accounts payable as of September 30, 2022 and December 31, 2021, includes payables for projects under development and construction such as the Embassy Suites by Hilton hotel, the Camp Creek Inn and amenity center, Watersound Town Center, the Watersound Origins residential community and Mexico Beach Crossings.

Other accrued liabilities include $5.2 million and $0.2 million of accrued property taxes as of September 30, 2022 and December 31, 2021, respectively, which are generally paid annually in November.

Advance deposits consist of deposits received on hotel rooms and related hospitality activities. Advance deposits are recorded as other liabilities in the condensed consolidated balance sheets without regard to whether they are refundable and are recognized as income at the time the service is provided for the related deposit.

12. Deferred Revenue

As of September 30, 2022 and December 31, 2021, deferred revenue includes club initiation fees of $25.0 million and $22.9 million, respectively, and other deferred revenue of $14.3 million and $13.4 million, respectively.

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Club initiation fees are recognized as revenue over the estimated average duration of membership, which is evaluated periodically. The following table presents the changes in club initiation fees related to contracts with customers:

	September 30, 2022		September 30, 2021
Balance at beginning of period	$	22,850	$	10,716
New club memberships		7,335		12,283
Revenue from amounts included in contract liability opening balance		(4,663)		(2,310)
Revenue from current period new memberships		(535)		(866)
Balance at end of period	$	24,987	$	19,823

Remaining performance obligations represent contracted revenue that has not been recognized related to club initiation fees. As of September 30, 2022, remaining performance obligations were $25.0 million, of which the Company expects to recognize as revenue $1.5 million in 2022, $11.2 million in 2023 through 2024, $9.3 million in 2025 through 2026 and $3.0 million thereafter.

Other deferred revenue as of both September 30, 2022 and December 31, 2021, includes $10.9 million related to a 2006 agreement pursuant to which the Company agreed to sell land to the Florida Department of Transportation. Revenue is recognized when title to a specific parcel is legally transferred.

13. Income Taxes

Income tax expense attributable to income from operations differed from the amount computed by applying the statutory federal income tax rate of 21% as of September 30, 2022 and 2021 to pre-tax income as a result of the following:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Tax at the federal statutory rate	$	3,467	$	4,543	$	12,063	$	12,139
State income taxes (net of federal benefit)		799		340		2,703		1,614
Change in state tax rate		—		1,392		—		1,308
Tax credits		(70)		(63)		(179)		(156)
Other		(33)		217		56		275
Total income tax expense	$	4,163	$	6,429	$	14,643	$	15,180

As of September 30, 2022, the Company had income tax receivable of $1.6 million included within other assets on the condensed consolidated balance sheets. As of December 31, 2021, the Company had income tax payable of $0.7 million included within other liabilities on the condensed consolidated balance sheets.

On September 14, 2021, the State of Florida announced the reduction of the 2021 corporate tax rate from 4.5% to 3.5% retroactive to the beginning of 2021. The corporate income tax rate has reverted to 5.5% for tax year 2022 and years forward.

The Inflation Reduction Act (“IRA”) was signed into law on August 16, 2022. The IRA extended the Internal Revenue Code Section 45L credit, a credit related to energy efficiency in both single family and multi-family homes, to tax year 2032 with retroactive effect to tax year 2022. While the tax year 2022 credit is the same as in years prior on a per unit basis, the credit is increased marginally for tax years 2023 forward.

In general, a valuation allowance is recorded if, based on all available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of the Company’s deferred tax assets is dependent upon the Company generating sufficient taxable income in future years in the appropriate tax jurisdictions to obtain a benefit from the reversal of deductible temporary differences and from loss

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carryforwards. As of both September 30, 2022 and December 31, 2021, the Company’s valuation allowance was $0.3 million.

Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. The Company regularly assesses the likelihood of adverse outcomes resulting from potential examinations to determine the adequacy of its provision for income taxes and applies a “more-likely-than-not” in determining the financial statement recognition and measurement of a tax position taken or expected to be taken in the tax returns. The Company has not identified any material unrecognized tax benefits as of either September 30, 2022 or December 31, 2021.

14. Accumulated Other Comprehensive Income (Loss)

Following is a summary of the changes in the balances of accumulated other comprehensive (loss) income, which is presented net of tax:

	Unrealized Loss		Unrealized
	on Available-for-		(Loss) Gain
	Sale Securities		Cash Flow Hedges		Total
Accumulated other comprehensive loss as of December 31, 2021	$	(7)	$	(382)	$	(389)
Other comprehensive (loss) income before reclassifications		(512)		4,191		3,679
Amounts reclassified from accumulated other comprehensive income		—		112		112
Other comprehensive (loss) income		(512)		4,303		3,791
Less: Other comprehensive income attributable to non-controlling interest		—		(1,355)		(1,355)
Accumulated other comprehensive (loss) income as of September 30, 2022	$	(519)	$	2,566	$	2,047

Following is a summary of the tax effects allocated to other comprehensive income:

	Three Months Ended September 30, 2022
	Before-		Tax Benefit or		Net-of-
	Tax Amount		(Expense)		Tax Amount
Unrealized loss on available-for-sale investments	$	(31)	$	8	$	(23)
Interest rate swap		1,427		(253)		1,174
Interest rate swap - unconsolidated affiliate		307		(78)		229
Reclassification adjustment for net loss included in earnings		15		(4)		11
Net unrealized gain		1,718		(327)		1,391
Other comprehensive income	$	1,718	$	(327)	$	1,391

	Three Months Ended September 30, 2021
	Before-		Tax		Net-of-
	Tax Amount		Expense		Tax Amount
Unrealized gain on available-for-sale investments	$	3	$	(1)	$	2
Interest rate swap		301		(76)		225
Interest rate swap - unconsolidated affiliate		(1)		—		(1)
Reclassification adjustment for net loss included in earnings		154		(39)		115
Net unrealized gain		457		(116)		341
Other comprehensive income	$	457	$	(116)	$	341

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	Nine Months Ended September 30, 2022
	Before-		Tax Benefit		Net-of-
	Tax Amount		(Expense)		Tax Amount
Unrealized loss on available-for-sale investments	$	(686)	$	174	$	(512)
Interest rate swaps		4,540		(808)		3,732
Interest rate swap - unconsolidated joint venture		615		(156)		459
Reclassification adjustment for net loss included in earnings		150		(38)		112
Net unrealized gain		4,619		(828)		3,791
Other comprehensive income	$	4,619	$	(828)	$	3,791

	Nine Months Ended September 30, 2021
	Before-		Tax		Net-of-
	Tax Amount		Expense		Tax Amount
Unrealized loss on available-for-sale investments	$	(1)	$	—	$	(1)
Interest rate swaps		410		(104)		306
Interest rate swap - unconsolidated joint venture		133		(34)		99
Reclassification adjustment for net loss included in earnings		251		(63)		188
Net unrealized gain		793		(201)		592
Other comprehensive income	$	793	$	(201)	$	592

15. Stockholders’ Equity

Dividends

During the three months ended September 30, 2022 and 2021, the Company paid cash dividends of $0.10 and $0.08, respectively, per share on the Company’s common stock for a total of $5.9 million and $4.7 million, respectively. During the nine months ended September 30, 2022 and 2021, the Company paid cash dividends of $0.30 and $0.24, respectively, per share on the Company’s common stock for a total of $17.7 million and $14.1 million, respectively.

Stock Repurchase Program

The Company’s Board approved a stock repurchase program (the “Stock Repurchase Program”) pursuant to which the Company is authorized to repurchase shares of its common stock. The program has no expiration date.

During the three months ended September 30, 2022, the Company repurchased 572,203 shares of its common stock outstanding at an average purchase price of $34.78, per share for an aggregate purchase price of $19.8 million. During the nine months ended September 30, 2022, the Company repurchased 576,963 shares of its common stock outstanding at an average purchase price of $34.81, per share for an aggregate purchase price of $20.0 million. During the three and nine months ended September 30, 2021, the Company did not repurchase shares of its common stock outstanding. As of September 30, 2022, the Company had a total authority of $80.0 million available for purchase of shares of its common stock. The Company may repurchase its common stock in open market purchases from time to time, in privately negotiated transactions or otherwise, pursuant to Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing and amount of any additional shares to be repurchased will depend upon a variety of factors. Repurchases may be commenced or suspended at any time or from time to time without prior notice. The Stock Repurchase Program will continue until otherwise modified or terminated by the Company’s Board at any time in its sole discretion.

Issuance of Common Stock for Employee Compensation

On February 22, 2022, the Company granted 25,594 restricted stock awards to certain employees pursuant to the 2015 Performance and Equity Incentive Plan (the “2015 Plan”). The restricted shares will vest in equal annual installments on the first, second and third annual anniversary of the grant date, subject to the recipient’s continued

41

employment through and on the applicable vesting date. The weighted average grant date fair value of the restricted shares during the nine months ended September 30, 2022 was $46.73.

On April 8, 2022, the Company granted 4,361 restricted stock awards to an employee pursuant to the 2015 Plan. The restricted shares will vest in January 2030, subject to the recipient’s continued employment through and on the applicable vesting date. The weighted average grant date fair value of the restricted shares during the nine months ended September 30, 2022 was $55.73.

Stock based compensation cost is measured at the grant date based on the fair value of the award and is typically recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. Forfeitures are accounted for as they occur. During the three and nine months ended September 30, 2022, the Company recorded expense of $0.1 million and $0.3 million, respectively, related to restricted stock awards. During the three and nine months ended September 30, 2021, the Company did not have expense related to restricted stock awards. During the three and nine months ended September 30, 2022 and 2021, there were no restricted shares vested or forfeited.

As of September 30, 2022, there was $1.2 million of unrecognized compensation cost, related to non-vested restricted shares which will be recognized over a weighted average period of 3.4 years.

16. Revenue Recognition

Revenue consists primarily of real estate sales, hospitality operations, leasing operations and timber sales. Taxes collected from customers and remitted to governmental authorities (e.g., sales tax) are excluded from revenue, costs and expenses. The following represents revenue disaggregated by segment, good or service and timing:

	Three Months Ended September 30, 2022
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	15,045	$	—	$	1,464	$	821	$	17,330
Hospitality revenue		—		28,843		192		—		29,035
Leasing revenue		5		204		9,800		40		10,049
Timber revenue		—		—		1,162		—		1,162
Total revenue	$	15,050	$	29,047	$	12,618	$	861	$	57,576
Timing of Revenue Recognition:
Recognized at a point in time	$	15,045	$	21,573	$	2,818	$	821	$	40,257
Recognized over time		—		7,270		—		—		7,270
Over lease term		5		204		9,800		40		10,049
Total revenue	$	15,050	$	29,047	$	12,618	$	861	$	57,576

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	Three Months Ended September 30, 2021
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	21,603	$	—	$	1,560	$	337	$	23,500
Hospitality revenue		—		21,937		355		—		22,292
Leasing revenue		45		20		7,076		5		7,146
Timber revenue		—		—		1,058		—		1,058
Total revenue	$	21,648	$	21,957	$	10,049	$	342	$	53,996
Timing of Revenue Recognition:
Recognized at a point in time	$	21,603	$	16,729	$	2,973	$	337	$	41,642
Recognized over time		—		5,208		—		—		5,208
Over lease term		45		20		7,076		5		7,146
Total revenue	$	21,648	$	21,957	$	10,049	$	342	$	53,996

	Nine Months Ended September 30, 2022
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	70,724	$	—	$	9,581	$	1,827	$	82,132
Hospitality revenue		—		74,391		521		—		74,912
Leasing revenue		50		263		27,800		102		28,215
Timber revenue		—		—		5,438		—		5,438
Total revenue	$	70,774	$	74,654	$	43,340	$	1,929	$	190,697
Timing of Revenue Recognition:
Recognized at a point in time	$	70,724	$	53,563	$	15,540	$	1,827	$	141,654
Recognized over time		—		20,828		—		—		20,828
Over lease term		50		263		27,800		102		28,215
Total revenue	$	70,774	$	74,654	$	43,340	$	1,929	$	190,697

	Nine Months Ended September 30, 2021
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	74,670	$	—	$	9,771	$	1,174	$	85,615
Hospitality revenue		—		57,374		612		—		57,986
Leasing revenue		129		39		18,920		24		19,112
Timber revenue		—		—		4,827		—		4,827
Total revenue	$	74,799	$	57,413	$	34,130	$	1,198	$	167,540
Timing of Revenue Recognition:
Recognized at a point in time	$	74,670	$	43,610	$	15,210	$	1,174	$	134,664
Recognized over time		—		13,764		—		—		13,764
Over lease term		129		39		18,920		24		19,112
Total revenue	$	74,799	$	57,413	$	34,130	$	1,198	$	167,540

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17. Other Income, Net

Other income (expense), net consists of the following:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Investment income, net
Interest, dividend and accretion income	$	355	$	52	$	732	$	103
Net realized gain on the sale of investments		—		—		—		17
Unrealized gain (loss) on investments, net		31		63		91		(1,947)
Interest income from investments in SPEs		2,003		2,003		6,009		6,075
Interest earned on notes receivable and other interest		346		213		699		565
Total investment income, net		2,735		2,331		7,531		4,813
Interest expense
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE		(2,211)		(2,207)		(6,629)		(6,619)
Other interest expense		(2,516)		(1,907)		(6,322)		(5,020)
Total interest expense		(4,727)		(4,114)		(12,951)		(11,639)
Gain on contributions to unconsolidated joint ventures		1,430		—		2,001		3,290
Other income (expense), net
Accretion income from retained interest investments		412		392		1,262		1,129
Gain on insurance recovery		875		2,540		4,186		3,924
Loss from hurricane damage		(7)		(11)		(51)		(26)
Miscellaneous income, net		848		4,408		648		4,568
Other income, net		2,128		7,329		6,045		9,595
Total other income, net	$	1,566	$	5,546	$	2,626	$	6,059

Investment Income, Net

Interest, dividend and accretion income includes interest income accrued or received on the Company’s investments and amortization of the premium or accretion of discount related to the Company’s available-for-sale securities, which is amortized based on an effective interest rate method over the term of the available-for-sale securities. Net realized gain on the sale of investments include the gains or losses recognized on the sale of available-for-sale and equity securities prior to maturity. Unrealized gain (loss) on investments, net includes unrealized gains or losses on investments - equity securities.

Interest income from investments in SPEs primarily includes interest earned on the investments held by Panama City Timber Finance Company, LLC, which is used to pay the interest expense for Senior Notes held by Northwest Florida Timber Finance, LLC.

Interest Expense

Interest expense includes interest incurred related to the Company’s Senior Notes issued by Northwest Florida Timber Finance, LLC, project financing, CDD debt and finance leases. Interest expense also includes amortization of debt discount and premium and debt issuance costs. Discount and issuance costs for the Senior Notes issued by Northwest Florida Timber Finance, LLC, are amortized based on the effective interest method at an effective rate of 4.9%.

During the three months ended September 30, 2022 and 2021, the Company capitalized $0.9 million and $0.2 million, respectively, in interest related to projects under development or construction. During the nine months ended September 30, 2022 and 2021, the Company capitalized $1.8 million and $0.9 million, respectively, in interest related to projects under development or construction. These amounts are included within investment in real estate, net on the Company’s condensed consolidated balance sheets.

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Gain on Contributions to Unconsolidated Joint Ventures

Gain on contributions to unconsolidated joint ventures for the three and nine months ended September 30, 2022, include a gain of $1.4 million on land and impact fees contributed to the Company’s unconsolidated Pier Park RI JV. The three and nine months ended September 30, 2022, also include a gain of $0.1 million and $0.2 million, respectively, on additional infrastructure improvements contributed to the Company’s unconsolidated Latitude Margaritaville Watersound JV. The nine months ended September 30, 2022, also include a gain of $0.4 million on land contributed to the Company’s unconsolidated Electric Cart Watersound JV. The Company did not have any gain on contributions to unconsolidated joint ventures during the three months ended September 30, 2021. The nine months ended September 30, 2021, include a gain of $3.1 million on land contributed to the Company’s unconsolidated Watersound Fountains Independent Living JV. The nine months ended September 30, 2021, also include a gain of $0.2 million on additional infrastructure improvements contributed to the Company’s unconsolidated Latitude Margaritaville Watersound JV. See Note 4. Joint Ventures for additional information.

Other Income, Net

Other income, net primarily includes income from the Company’s retained interest investments, gain on insurance recovery, loss from hurricane damage and other income and expense items. The Company records the accretion of investment income from its retained interest investment over the life of the retained interest using the effective yield method with rates ranging from 4.8% to 12.7%. During the three and nine months ended September 30, 2022, the Company had a gain on insurance recovery of $0.9 million and $4.2 million, respectively, and incurred loss from hurricane damage of less than $0.1 million, during each period, related to Hurricane Michael. During the three and nine months ended September 30, 2021, the Company had a gain on insurance recovery of $2.5 million and $3.9 million, respectively, and incurred loss from hurricane damage of less than $0.1 million, during each period, related to Hurricane Michael. See Note 7. Hurricane Michael for additional information.

Miscellaneous income, net during the three and nine months ended September 30, 2022, includes income of $0.3 million and $1.0 million, respectively, related to a gain on retained interest investment. Miscellaneous income, net includes $0.8 million and $0.9 million during the three months ended September 30, 2022 and 2021, respectively, and $1.8 million and $0.9 million during the nine months ended September 30, 2022 and 2021, respectively, received from the Pier Park CDD for repayment of subordinated notes. Miscellaneous income, net during the nine months ended September 30, 2022, also includes expenses of $1.1 million for design costs no longer pursued and $0.6 million for a homeowner’s association special assessment. Miscellaneous income, net during the three and nine months ended September 30, 2021, includes $3.6 million the Company received from the Florida Division of Emergency Management’s Florida Timber Recovery Block Grant Program (“TRBG”) for recovery of lost income related to timber crop that was destroyed as a result of Hurricane Michael. See Note 7. Hurricane Michael for additional information.

18. Segment Information

The Company conducts primarily all of its business in the following three reportable segments: (1) residential, (2) hospitality and (3) commercial. The Company’s reportable segments are strategic business units that offer different products and services. They are each managed separately and decisions about allocations of resources are determined by management based on these strategic business units. The Company uses income before equity in income (loss) from unconsolidated joint ventures, income taxes and non-controlling interest and other qualitative measures for purposes of making decisions about allocating resources to each segment and assessing each segment’s performance, which the Company believes represents current performance measures.

The accounting policies of the segments are set forth in Note 2 to the Company’s consolidated financial statements contained in Item 15 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Total revenue represents sales to unaffiliated customers, as reported in the Company’s condensed consolidated statements of income. All significant intercompany transactions have been eliminated in consolidation. The caption entitled “Other” consists of mitigation credit, title and insurance business revenue and cost of revenue; corporate operating expenses; corporate depreciation and amortization and corporate other income and expense items.

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Information by business segment is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Operating revenue:
Residential	$	15,050	$	21,648	$	70,774	$	74,799
Hospitality		29,047		21,957		74,654		57,413
Commercial		12,618		10,049		43,340		34,130
Other		861		342		1,929		1,198
Consolidated operating revenue	$	57,576	$	53,996	$	190,697	$	167,540
Income (loss) before equity in income (loss) from unconsolidated joint ventures and income taxes:
Residential	$	8,473	$	12,817	$	36,073	$	41,014
Hospitality		4,404		4,195		9,187		9,901
Commercial (a) (b) (c) (d)		1,992		4,623		11,533		14,867
Other (e)		(1,126)		72		(2,961)		(7,273)
Consolidated income before equity in income (loss) from unconsolidated joint ventures and income taxes	$	13,743	$	21,707	$	53,832	$	58,509

(a) The three and nine months ended September 30, 2022, includes a gain of $1.4 million on land and impact fees contributed to the unconsolidated Pier Park RI JV. See Note 4. Joint Ventures and Note 17. Other Income, Net for additional information.

(b) The nine months ended September 30, 2022, includes a gain of $0.4 million on land contributed to the unconsolidated Electric Cart Watersound JV. See Note 4. Joint Ventures and Note 17. Other Income, Net for additional information.

(c) The three and nine months ended September 30, 2021, includes $3.6 million the Company received from the Florida Division of Emergency Management’s TRBG program. See Note 7. Hurricane Michael for additional information.

(d) The nine months ended September 30, 2021, includes a gain of $3.1 million on land contributed to the Watersound Fountains Independent Living JV. See Note 4. Joint Ventures and Note 17. Other Income, Net for additional information.

(e) Includes gain on insurance recovery of $0.9 million and $2.5 million during the three months ended September 30, 2022 and 2021, respectively, and gain on insurance recovery of $4.2 million and $3.9 million during the nine months ended September 30, 2022 and 2021, respectively, related to Hurricane Michael. See Note 7. Hurricane Michael for additional information.

	September 30,		December 31,
	2022		2021
Total assets:
Residential	$	213,301	$	192,290
Hospitality		347,330		256,751
Commercial		457,538		378,118
Other		321,371		380,992
Total assets	$	1,339,540	$	1,208,151

19. Commitments and Contingencies

The Company establishes an accrued liability when it is both probable that a material loss has been incurred and the amount of the loss can be reasonably estimated. The Company will evaluate the range of reasonably estimated losses and record an accrued liability based on what it believes to be the minimum amount in the range, unless it believes an amount within the range is a better estimate than any other amount. In such cases, there may be an exposure to loss in excess of the amounts accrued. The Company evaluates quarterly whether further developments could affect the amount of the accrued liability previously established or would make a loss contingency both probable and reasonably estimable.

The Company also provides disclosure when it believes it is reasonably possible that a material loss will be incurred or when it believes it is reasonably possible that the amount of a loss will exceed the recorded liability. The Company reviews loss contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or range of loss can be made. This estimated range of possible losses is based

46

upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate.

The Company is subject to a variety of litigation, claims, other disputes and governmental proceedings that arise from time to time in the ordinary course of its business, including litigation related to its prior homebuilding and development activities. The Company cannot make assurances that it will be successful in defending these matters. Based on current knowledge, the Company does not believe that loss contingencies arising from pending litigation, claims, other disputes and governmental proceedings, including those described herein, will have a material adverse effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period.

The Company is subject to costs arising out of environmental laws and regulations, which include obligations to remove or limit the effects on the environment of the disposal or release of certain wastes or substances at various sites, including sites which have been previously sold. It is the Company’s policy to accrue and charge against earnings environmental cleanup costs when it is probable that a liability has been incurred and a range of loss can be reasonably estimated. As assessments and cleanups proceed, these accruals are reviewed and adjusted, if necessary, as additional information becomes available. The Company is in the process of assessing certain properties in regard to the effects, if any, on the environment from the disposal or release of wastes or substances. Management is unable to quantify future rehabilitation costs above present accruals at this time or provide a reasonably estimated range of loss.

Other litigation, claims and disputes, including environmental matters, are pending against the Company. Accrued aggregate liabilities related to the matters described above and other litigation matters were $0.4 million as of both September 30, 2022 and December 31, 2021. Significant judgment is required in both the determination of probability and whether the amount of an exposure is reasonably estimable. Due to uncertainties related to these matters, accruals are based only on the information available at the time. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates, which could materially affect the Company’s results of operations for any particular reporting period.

The Company has retained certain self-insurance risks with respect to losses for third party liability and property damage, including its timber assets.

In June 2020, the Company, as lender, entered into a $10.0 million secured revolving promissory note with the unconsolidated Latitude Margaritaville Watersound JV, as borrower. As of September 30, 2022, there was no balance outstanding on the Latitude JV Note. As of December 31, 2021, $7.1 million was outstanding on the Latitude JV Note. The Latitude JV Note was provided by the Company to finance the development of the pod-level, non-spine infrastructure. Future advances, if any, will be repaid by the JV as each home is sold by the JV, with the aggregate unpaid principal and all accrued and unpaid interest due at maturity in June 2025. The note is secured by a mortgage and security interest in and on the real property and improvements located on the real property of the JV. See Note 4. Joint Ventures and Note 9. Other Assets for additional information.

As of September 30, 2022 and December 31, 2021, the Company was required to provide surety bonds that guarantee completion and maintenance of certain infrastructure in certain development projects and mitigation banks, as well as other financial guarantees of $36.7 million and $36.9 million, respectively, as well as standby letters of credit in the amount of $19.4 million and $12.9 million, respectively, which may potentially result in liability to the Company if certain obligations of the Company are not met.

As of September 30, 2022, the Company had a total of $169.0 million in construction and development related contractual obligations, of which a significant portion will be funded through committed or new financing arrangements.

In 2019, the Company’s unconsolidated Pier Park TPS JV, entered into a $14.4 million loan (the “Pier Park TPS JV Loan”). The loan bears interest at LIBOR plus 2.5% and provides for monthly principal and interest payments with a final balloon payment at maturity in January 2026. The loan is secured by the real and personal property and certain

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other Security Interests. In connection with the loan, the Company, a wholly-owned subsidiary of the Company and the Company’s JV partner entered into a joint and several payment and performance guarantee in favor of the lender. The Company’s liability as guarantor under the Pier Park TPS JV Loan has been reduced to 25% of the outstanding principal amount, which requires maintaining a certain debt service coverage. The guarantee contains customary provisions providing for full recourse upon the occurrence of certain events. The Pier Park TPS JV entered into an interest rate swap to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR. The interest rate swap matures on January 14, 2026 and fixed the variable rate on the related debt, initially at $14.4 million to a rate of 5.2%. As of September 30, 2022 and December 31, 2021, $13.9 million and $14.1 million, respectively, was outstanding on the Pier Park TPS JV Loan. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

In November 2020, the Company’s unconsolidated Latitude Margaritaville Watersound JV, entered into a $25.0 million loan (the “Latitude Margaritaville Watersound JV Loan”). The loan bears interest at LIBOR plus 2.5%, with a floor of 3.3%. The loan provides for monthly interest payments with a final balloon payment at maturity in November 2023 and includes annual maturity extension rights for a total of three additional years, subject to bank approval. The loan is secured by the real and personal property and certain other Security Interests. In connection with the loan, the Company and the Company’s JV partner entered into an unconditional guaranty of completion of certain homes in favor of the lender. As of September 30, 2022, $11.8 million was outstanding on the Latitude Margaritaville Watersound JV Loan. As of December 31, 2021, there was no principal balance outstanding on the Latitude Margaritaville Watersound JV Loan.

In April 2021, the Company’s unconsolidated Watersound Fountains Independent Living JV, entered into a $41.9 million loan (the “Watersound Fountains JV Loan”). The loan bears interest at LIBOR plus 2.0%, with a floor of 2.5%. The loan provides for interest only payments for the first forty-eight months and principal and interest payments thereafter with a final balloon payment at maturity in April 2026. The loan includes an option for an extension of the maturity date by twelve months, subject to certain conditions, which would provide for continued monthly principal and interest payments with a final balloon payment at the extended maturity date. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the completion of the project and payment and performance of the borrower under the Watersound Fountains JV Loan. The Company’s liability as guarantor under the loan will be reduced to 50% of the outstanding principal amount upon issuance of the certificate of occupancy and reduced to 25% and a further 0% of the outstanding principal balance upon reaching and maintaining certain debt service coverage. The guarantee contains customary provisions providing for full recourse upon the occurrence of certain events. The Company is the sole guarantor and receives a quarterly fee related to the guarantee from its JV partners based on the JV partners’ ownership percentage. As of September 30, 2022 and December 31, 2021, $18.8 million and $0.1 million, respectively, was outstanding on the Watersound Fountains JV Loan.

In September 2022, the Company’s unconsolidated Electric Cart Watersound JV, entered into a $5.4 million loan (the “Electric Cart Watersound JV Loan”). The loan bears interest at SOFR plus 1.8%, with a floor of 2.1%. The loan provides for interest only payments for the first twenty-four months and principal and interest payments thereafter with a final balloon payment at maturity in September 2032. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company, a wholly-owned subsidiary of the Company and the Electric Cart Watersound JV entered into a joint and several payment and performance guarantee in favor of the lender. After the initial forty-eight months of the loan, the Company’s liability as guarantor under the loan will be reduced to 50% of the outstanding principal balance upon reaching a certain debt service coverage and other conditions. The Company is the sole guarantor and receives a quarterly fee related to the guarantee from its JV partner based on the JV partner’s ownership percentage. As of September 30, 2022, $0.6 million was outstanding on the Electric Cart Watersound JV Loan.

The Company has assessed the need to record a liability for the guarantees related to the Company’s unconsolidated JVs and did not record an obligation as of both September 30, 2022 and December 31, 2021. As of both September 30, 2022 and December 31, 2021, allowance for credit losses related to the contingent aspect of these guarantees, based on historical experience and economic trends, was $0.1 million and is included within other liabilities on the condensed consolidated balance sheets.

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20. Subsequent Event

On October 26, 2022, the Company’s Board of Directors declared a cash dividend of $0.10 per share on the Company’s common stock, payable on December 9, 2022 to shareholders of record at the close of business on November 10, 2022.

Item 2.         Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and related notes in Item 1 and with the audited consolidated financial statements and the related notes included in our annual report on Form 10-K. The statements regarding industry outlook, our expectations regarding our future performance, liquidity and capital resources and other non-historical statements in this discussion are forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including the risks and uncertainties described in “Forward-Looking Statements” below and “Risk Factors” on page 6 of our annual report on Form 10-K. Our actual results may differ materially from those contained in or implied by any forward-looking statements. We assume no obligation to revise or publicly release any revision to any forward-looking statements contained in this quarterly report on Form 10-Q, unless required by law.

Business Overview

St. Joe is a real estate development, asset management and operating company with all of its real estate assets and operations in Northwest Florida. We intend to use existing assets for residential, hospitality and commercial ventures. We have significant residential and commercial land-use entitlements. We actively seek higher and better uses for our real estate assets through a range of development activities. We may partner with or explore the sale of discrete assets when we and/or others can better deploy resources. We seek to enhance the value of our owned real estate assets by developing residential, commercial and hospitality projects to meet market demand. Approximately 86% of our real estate is located in Florida’s Bay, Gulf, and Walton counties. Approximately 90% of our real estate land holdings are located within fifteen miles of the Gulf of Mexico.

We believe our present capital structure, liquidity and land provide us with years of opportunities to increase recurring revenue and long-term value for our shareholders. We intend to focus on our core business activity of real estate development, asset management and operations. We continue to develop a broad range of asset types that we believe will provide acceptable rates of return, grow recurring revenues and support future business. Capital commitments will be funded with cash proceeds from completed projects, existing cash, owned-land, partner capital and financing arrangements. We do not anticipate immediate benefits from investments. Timing of projects may be subject to delays caused by factors beyond our control.

Our real estate investment strategy focuses on projects that meet long-term risk-adjusted return criteria. Our practice is to only incur such expenditures when our analysis indicates that a project will generate a return equal to or greater than the threshold return over its life.

Market Conditions

Throughout the nine months of 2022, we continued to generate positive financial results. While macro-economic factors such as inflation, rising interest rates, supply chain disruptions, geopolitical conflicts and the continuing recovery from the COVID-19 pandemic, among other things, have created economic headwinds and impacted buyer sentiment, demand across our segments remains strong. We believe this is primarily the result of the continued growth of Northwest Florida, which we attribute to the region’s high quality of life, natural beauty and outstanding amenities, as well as the evolving flexibility in the workplace.

Despite the strong demand across our segments, we also continue to feel the impact from the aforementioned macro-economic factors, including supply chain disruptions and cost increases, which, for example, have extended homesite

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and home deliveries in certain residential communities and increased operating costs. However, these delays generally have not resulted in increased cancellation rates, and therefore only impact the timing of revenue recognition. In addition, given our diverse portfolio of residential holdings, the mix of sales from different communities may impact revenue and margins period over period, as discussed in more detail below.

Reportable Segments

We conduct primarily all of our business in the following three reportable segments: (1) residential, (2) hospitality and (3) commercial.

The following table sets forth the relative contribution of these reportable segments to our consolidated operating revenue:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Segment Operating Revenue
Residential	26.1	%	40.1	%	37.1	%	44.6	%
Hospitality	50.5	%	40.7	%	39.2	%	34.3	%
Commercial	21.9	%	18.6	%	22.7	%	20.4	%
Other	1.5	%	0.6	%	1.0	%	0.7	%
Consolidated operating revenue	100.0	%	100.0	%	100.0	%	100.0	%

For more information regarding our reportable segments see Note 18. Segment Information.

Residential Segment

Our residential segment typically plans and develops residential communities of various sizes across a wide range of price points and sells homesites to homebuilders or retail consumers. Our residential segment also evaluates opportunities to enter into JV agreements for specific communities such as Latitude Margaritaville Watersound.

The Watersound Origins, Watersound Origins West, Watersound Camp Creek, Breakfast Point East, Titus Park, Ward Creek, College Station, Park Place, Mexico Beach, WindMark Beach and SouthWood communities are large scale, multi-phase communities with current development activity, sales activity or future phases. Homesites in these communities are developed based on market demand and sold primarily to homebuilders and on a limited basis to retail customers.

The East Lake Creek, East Lake Powell, Lake Powell, Teachee and West Laird communities have phases of homesites in preliminary planning. Homesites in these communities will be developed based on market demand and sold primarily to homebuilders and on a limited basis to retail customers.

The SummerCamp Beach community has homesites available for sale and along with the RiverCamps community, both have additional lands for future development.

The Latitude Margaritaville Watersound community is a planned 55+ active adult residential community in Bay County, Florida. The community is located near the Intracoastal Waterway with convenient access to the Northwest Florida Beaches International Airport. The community is being developed through an unconsolidated JV with our partner Minto Communities USA, a homebuilder and community developer, and is estimated to include approximately 3,500 residential homes, which will be developed in smaller increments of discrete neighborhoods. As of September 30, 2022, the unconsolidated Latitude Margaritaville Watersound JV had 641 homes under contract, which are expected to result in a sales value of approximately $316.5 million at closing of the homes. See Note 4. Joint Ventures for additional information.

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The residential homesite pipeline by community/project is as follows:

		Residential Homesite Pipeline (a)
				Additional
		Platted or	Engineering or	Entitlements with
Community/Project	Location	Under Development	Permitting	Concept Plan	Total
Breakfast Point East (b)	Bay County, FL	250	266	104	620
College Station	Bay County, FL	—	58	265	323
East Lake Creek (b)	Bay County, FL	—	—	200	200
East Lake Powell (c)	Bay County, FL	—	—	360	360
Lake Powell (d)	Bay County, FL	—	—	1,352	1,352
Latitude Margaritaville Watersound (d) (e)	Bay County, FL	891	340	2,022	3,253
Mexico Beach (b)	Bay County, FL	32	60	275	367
Mexico Beach Townhomes (b)	Bay County, FL	42	36	82	160
Park Place	Bay County, FL	96	—	191	287
RiverCamps (c)	Bay County, FL	—	—	149	149
SouthWood (f)	Leon County, FL	84	180	920	1,184
SummerCamp Beach (b)	Franklin County, FL	37	—	273	310
Teachee (d)	Bay County, FL	—	—	1,750	1,750
Titus Park	Bay County, FL	265	144	560	969
Ward Creek (d)	Bay County, FL	938	263	399	1,600
Watersound Camp Creek (f)	Walton County, FL	104	—	—	104
Watersound Origins (f)	Walton County, FL	602	—	—	602
Watersound Origins West (d)	Walton County, FL	103	249	1,679	2,031
West Laird (d)	Bay County, FL	—	1,068	1,117	2,185
WindMark Beach (f)	Gulf County, FL	128	549	317	994
Total Homesites		3,572	3,213	12,015	18,800

(a) The number of homesites are preliminary and are subject to change. Includes homesites platted or currently in concept planning, engineering, permitting or development. We have significant additional entitlements for future residential homesites on our land holdings.

(b) Planned Unit Development (“PUD”).

(c) Development Agreement (“DA”).

(d) Detailed Specific Area Plan (“DSAP”).

(e) The unconsolidated Latitude Margaritaville Watersound JV builds and sells homes in this community.

(f) Development of Regional Impact (“DRI”).

In addition to the communities listed above, we have a number of other residential project concepts in various stages of planning and evaluation.

As of September 30, 2022, we had 18 different homebuilders within our residential communities. As of September 30, 2022, we had 2,376 residential homesites under contract, which are expected to result in revenue of approximately $186.3 million, plus residuals, at closing of the homesites over the next several years. By comparison, as of September 30, 2021, we had 1,661 residential homesites under contract, with an expected revenue of approximately $160.7 million, plus residuals. The increase in homesites under contract is due to the development of additional homesites and increased homebuilder contracts for residential homesites. The number of homesites under contract are subject to change based on homesite closings and homebuilder interest in each community. As of September 30, 2022, in addition to the 2,376 homesites under contract in other residential communities, our unconsolidated Latitude Margaritaville Watersound JV had 641 homes under contract, which together with the 2,376 homesites are expected to result in a sales value of approximately $502.8 million at closing of the homesites and homes.

Hospitality Segment

Our hospitality segment features a private membership club, (the “Watersound Club”), hotel operations, food and beverage operations, golf courses, beach clubs, retail outlets, gulf-front vacation rentals, management services, marinas and other entertainment assets. The hospitality segment generates revenue and incurs costs from membership sales, membership reservations, golf courses, lodging, short-term vacation rentals, management of The Pearl Hotel, food and

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beverage operations, merchandise sales, marina operations, charter flights, other resort and entertainment activities and beach clubs, which includes operation of the WaterColor Beach Club. Hospitality revenue is generally recognized at the point in time services are provided and represent a single performance obligation with a fixed transaction price. Hospitality revenue recognized over time includes non-refundable club membership initiation fees, club membership dues, management fees and other membership fees. From time to time, we may explore the sale of certain hospitality properties, the development of new hospitality properties, as well as new entertainment and management opportunities. Some of our JV assets and other assets incur interest and financing expenses related to the loans as described in Note 10. Debt, Net.

Watersound Club provides club members and guests of some of our hotels access to our member facilities, which include the Camp Creek golf course, Shark’s Tooth golf course, Watersound Beach Club and a Pilatus PC-12 NG aircraft (“N850J”). Watersound Club offers different types of club memberships, each with different access rights and associated fee structures. Watersound Club is focused on creating an outstanding membership experience combined with the luxurious aspects of a destination resort. Club operations include our golf courses, beach club and facilities that generate revenue from membership sales, membership reservations, daily play at the golf courses, merchandise sales, charter flights and food and beverage sales and incur expenses from the services provided, maintenance of the golf courses, aircraft, beach club and facilities and personnel costs. Watersound Origins includes an executive golf course, resort-style pool, fitness center, two tennis courts and a private dock located in the community. Access to amenities is reserved to Watersound Origins members consisting of the community residents. The golf course is available for public play.

Watersound Club has a private beach club located on Scenic Highway 30A, which includes over one mile of Gulf of Mexico frontage, two resort-style pools, two restaurants, three bars, kid’s room and a recreation area. Shark’s Tooth includes an 18-hole golf course, a full club house, a pro shop, as well as two food and beverage operations. In addition to the golf course, Watersound Club’s tennis center is located in the Wild Heron community near the Shark’s Tooth golf course. Camp Creek is an 18-hole golf course located near the new Watersound Camp Creek residential community and near the Watersound Origins residential community. We have commenced construction on new club amenities adjacent to the Camp Creek golf course. Amenities are planned to include a health and wellness center, restaurants, a tennis and pickle ball center, a resort-style pool complex with separate adult pool, a golf teaching academy, pro shop and multi-sport fields. Once complete, these amenities will be available to Watersound Club members and guests of some of our hotels.

We own and operate the award-winning WaterColor Inn (which includes the Fish Out of Water restaurant), the Hilton Garden Inn Panama City Airport, the Homewood Suites by Hilton Panama City Beach, the WaterSound Inn and two gulf-front vacation rental houses. We own and operate retail and commercial outlets near our hospitality facilities. We also operate the award-winning The Pearl Hotel and Havana Beach Bar & Grill restaurant and the WaterColor Beach Club, which includes food and beverage operations and other hospitality related activities, such as beach chair rentals. Revenue is generated from (i) lodging, (ii) operation of the WaterColor Beach Club, (iii) management of The Pearl Hotel, (iv) short-term vacation rentals, (v) food and beverage operations and (vi) merchandise sales. Lodging and operation of the WaterColor Beach Club generate revenue from service and/or daily rental fees and incur expenses from the cost of services and goods provided, maintenance of the facilities and personnel costs. Revenue generated from our management services include management fees and expenses consist primarily of internal administrative costs. Lodging and short-term vacation rentals generate revenue from rental fees and incur expenses from the holding cost of assets we own and standard lodging personnel, such as front desk, reservations and marketing personnel. Our food and beverage operations generate revenue from food and beverage sales and incur expenses from the cost of services and goods provided and standard personnel costs. Our retail outlets generate revenue from merchandise sales and incur expenses from the cost of goods provided, personnel costs and facility costs.

We are in the process of constructing an Embassy Suites by Hilton hotel, with our JV partner, in the Pier Park area of Panama City Beach, Florida; the waterfront Hotel Indigo in Panama City, Florida’s downtown waterfront district; a Home2 Suites by Hilton hotel in Santa Rosa Beach, Florida; The Lodge 30A, with our JV partner, a boutique hotel on Scenic Highway 30A in Seagrove Beach, Florida; and an upscale boutique inn located adjacent to the Camp Creek golf course near the highly desirable Scenic Highway 30A corridor. Once complete, we intend to manage the day-to-day operations of these hotels. We are also in the process of constructing a Residence Inn by Marriott, with our JV partner, in Panama City Beach, Florida. Once complete, the hotel will be operated by our JV partner.

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Our hotel portfolio by property is as follows:

		Rooms (a)
	Location	Completed	Planned	Total
Operational
WaterColor Inn (b)	Walton County, FL	67	—	67
WaterSound Inn	Walton County, FL	11	—	11
Hilton Garden Inn Panama City Airport (c)	Bay County, FL	143	—	143
Homewood Suites by Hilton Panama City Beach (d)	Bay County, FL	131	—	131
TownePlace Suites by Marriott Panama City Beach Pier Park (e)	Bay County, FL	124	—	124
Total operational rooms		476	—	476
Managed
The Pearl Hotel (f)	Walton County, FL	55	—	55
Total managed rooms		55	—	55
Under Development/Construction
Embassy Suites by Hilton Panama City Beach (g)	Bay County, FL	—	255	255
Hotel Indigo	Bay County, FL	—	124	124
Residence Inn by Marriott, Panama City Beach, Florida (h)	Bay County, FL	—	121	121
Home2 Suites by Hilton Santa Rosa Beach	Walton County, FL	—	107	107
The Lodge 30A (g)	Walton County, FL	—	85	85
Camp Creek Inn	Walton County, FL	—	75	75
Total rooms under development/construction		—	767	767
Total rooms		531	767	1,298

(a) Includes hotels currently in operation, under management or under development and construction. We have significant additional entitlements for future hotel projects on our land holdings.

(b) Seven additional rooms were completed in June 2022.

(c) The hotel opened in July 2021.

(d) The hotel opened on March 24, 2022.

(e) The hotel is operated by our JV partner. The Pier Park TPS JV is unconsolidated and is accounted for under the equity method of accounting, which is included within our commercial segment.

(f) The hotel is owned by a third party but is operated by us.

(g) Under development with JV partners.

(h) The hotel is under development with our JV partner. Once complete, the hotel will be operated by our JV partner. The Pier Park RI JV is unconsolidated and is accounted for under the equity method of accounting, which is included within our commercial segment.

We own and operate two marinas consisting of the Point South Marina Bay Point in Bay County, Florida and Point South Marina Port St. Joe in Gulf County, Florida. We are planning new marinas along the Intracoastal Waterway. Our marinas generate revenue from boat slip rentals, boat storage fees and fuel sales, and incur expenses from cost of services provided, maintenance of the marina facilities and personnel costs. At present, we are reconstructing the Point South Marina Port St. Joe and expect a portion to be open in 2022. The Point South Marina Bay Point fully reopened in the third quarter of 2022. See Note 7. Hurricane Michael for additional information.

We own and operate the WaterColor and WaterColor Kids retail stores that generate revenue from merchandise sales, which are recognized at the point of sale, and incur expenses from the cost of goods provided, personnel costs and facility costs. We own and operate The Powder Room Shooting Range and Training Center (“The Powder Room”) in Panama City Beach, Florida. The approximately 17,000 square feet facility includes a retail store with firearms and ammunition, as well as training and educational space and 14 shooting lanes. The Powder Room generates revenue from service fees and merchandise sales, which are recognized at the point of sale, and incurs expenses from the cost of services and goods provided, personnel costs and facility costs. We own and operate Harrison’s Kitchen & Bar, a standalone restaurant, in Panama City, Florida’s downtown waterfront district and Bruno’s Pizza, a standalone restaurant, in WindMark Beach. These standalone restaurants generate revenue from food and beverage sales and incur expenses from the cost of services and goods provided and standard personnel costs.

In addition to the properties listed above, we have a number of hospitality projects in various stages of planning.

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Commercial Segment

Our commercial segment includes leasing of commercial property, multi-family, senior living, self-storage and other assets. The commercial segment also oversees the planning, development, entitlement, management and sale of our commercial and rural land holdings for a variety of uses, including a broad range of retail, office, hotel, senior living, multi-family, self-storage and industrial properties. We provide development opportunities for national, regional and local retailers and other strategic partners in Northwest Florida. We own and manage retail shopping centers and develop commercial parcels. We have large land holdings near the Pier Park retail center, adjacent to the Northwest Florida Beaches International Airport, near or within business districts in the region and along major roadways. We also lease land for hunting, rock quarrying and other uses. The commercial segment also manages our timber holdings in Northwest Florida which includes growing and selling pulpwood, sawtimber and other products, such as fill dirt.

The commercial segment generates leasing revenue and incurs leasing expenses primarily from maintenance and management of our properties, personnel costs and asset holding costs. Our commercial segment also generates revenue from the sale of developed and undeveloped land, timber holdings or land with limited development and/or entitlements and the sale of commercial operating properties. Real estate sales in our commercial segment incur costs of revenue directly associated with the land, development, construction, timber and selling costs. Our commercial segment generates timber revenue primarily from open market sales of timber on site without the associated delivery costs. Some of our JV assets and other assets incur interest and financing expenses related to the loans as described in Note 10. Debt, Net.

The commercial segment’s portfolio of leasable properties continues to expand and diversify. Through wholly-owned subsidiaries and consolidated and unconsolidated joint ventures we are in the process of constructing 428 multi-family units and 148 senior living units, in addition to the 1,000 multi-family units and 107 senior living units that have been completed.

Total units and percentage leased/occupied for multi-family and senior living communities by location are as follows:

			September 30, 2022			December 31, 2021
					Percentage			Percentage
					Leased			Leased
		Units	Units	Units	of Units	Units	Units	of Units
	Location	Planned	Completed	Leased	Completed	Completed	Leased	Completed
Multi-family
Pier Park Crossings	Bay County, FL	240	240	231	96%	240	234	98%
Pier Park Crossings Phase II	Bay County, FL	120	120	114	95%	120	113	94%
Watersound Origins Crossings (a)	Walton County, FL	217	217	207	95%	217	207	95%
Sea Sound (b)	Bay County, FL	300	300	280	93%	214	203	95%
North Bay Landing (c)	Bay County, FL	240	48	37	77%	—	—	N/A
Mexico Beach Crossings (d)	Bay County, FL	216	—	—	N/A	—	—	N/A
Origins Crossings Townhomes (e)	Walton County, FL	64	44	27	61%	—	—	N/A
WindMark Beach (f)	Gulf County, FL	31	31	30	97%	31	31	100%
Total multi-family units		1,428	1,000	926	93%	822	788	96%
Senior living communities
Watercrest	Walton County, FL	107	107	72	67%	107	47	44%
Watersound Fountains (g)	Walton County, FL	148	—	—	N/A	—	—	N/A
Total senior living units		255	107	72	67%	107	47	44%
Total units		1,683	1,107	998	90%	929	835	90%

(a) Construction was completed in the fourth quarter of 2021.

(b) Construction was completed in the first quarter of 2022. The Sea Sound JV is unconsolidated and is accounted for under the equity method of accounting.

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(c) Construction began in the fourth quarter of 2020 and is ongoing.

(d) Construction began in the first quarter of 2022 and is ongoing.

(e) Vertical construction began in the third quarter of 2021 and is ongoing.

(f) Includes 19 units for short-term lease in a vacation rental program. We are in the process of converting these 19 units to long-term rental units.

(g) Construction began in the second quarter of 2021 and is ongoing. The Watersound Fountains Independent Living JV is unconsolidated and is accounted for under the equity method of accounting.

Pier Park Crossings, which was developed in two phases, includes 360 completed apartment units in Panama City Beach, Florida. Watersound Origins Crossings includes 217 completed apartment units adjacent to the Watersound Town Center. Sea Sound, an unconsolidated JV, includes 300 completed apartment units in Panama City Beach, Florida near the Breakfast Point residential community. WindMark Beach includes 31 completed long-term and short-term rental units in Port St. Joe, Florida. Watercrest includes 107 completed senior living units in Santa Rosa Beach, Florida. In addition, we have three multi-family communities and one senior living community under construction. North Bay Landing, planned for 240 apartment units, with 48 units completed as of September 30, 2022, is located in Panama City, Florida. Mexico Beach Crossings, planned for 216 apartment units, is located in Mexico Beach, Florida. Origins Crossings Townhomes, planned for 64 units, with 44 units completed as of September 30, 2022, is located near the Watersound Town Center. Watersound Fountains, an unconsolidated JV, planned for 148 independent living units, is located near the Watersound Origins residential community.

Our leasing portfolio consists of approximately 1,043,000 square feet of leasable space for mixed-use, retail, industrial, office, self-storage and medical uses. This includes our consolidated Pier Park North JV. Through separate unconsolidated JVs, other commercial properties include a 124-room TownePlace Suites by Marriott operated by our JV partner and a Busy Bee branded fuel station and convenience store operated by our JV partner, both located in Panama City Beach, Florida.

The total net rentable square feet and percentage leased of leasing properties by location are as follows:

		September 30, 2022			December 31, 2021
		Net			Net
		Rentable			Rentable
		Square	Percentage		Square	Percentage
	Location	Feet*	Leased		Feet*	Leased
Pier Park North	Bay County, FL	320,310	97	%	320,310	95	%
VentureCrossings	Bay County, FL	303,605	92	%	303,605	88	%
Watersound Town Center (a)	Walton County, FL	86,316	96	%	24,764	100	%
Beckrich Office Park (b) (c)	Bay County, FL	77,613	100	%	81,065	85	%
Watersound Self-Storage (d)	Walton County, FL	67,694	89	%	67,694	50	%
WindMark Beach Town Center (b) (e)	Gulf County, FL	44,748	71	%	44,748	67	%
WaterColor Town Center (b)	Walton County, FL	22,199	100	%	22,199	100	%
Cedar Grove Commerce Park	Bay County, FL	19,389	100	%	19,389	100	%
Port St. Joe Commercial	Gulf County, FL	16,964	100	%	16,964	100	%
Beach Commerce Park (b)	Bay County, FL	14,800	100	%	14,800	100	%
SummerCamp Commercial	Franklin County, FL	13,000	0	%	13,000	0	%
South Walton Commerce Park (f)	Walton County, FL	11,570	100	%	11,570	88	%
WaterSound Gatehouse (b)	Walton County, FL	10,271	100	%	10,271	100	%
WaterColor Crossings	Walton County, FL	7,135	100	%	7,135	100	%
395 Office building	Walton County, FL	6,700	100	%	6,700	100	%
Pier Park outparcel	Bay County, FL	5,565	100	%	5,565	100	%
Topsail West Commercial	Walton County, FL	3,500	100	%	3,500	100	%
Bank building	Bay County, FL	3,346	100	%	3,346	100	%
Bank building	Gulf County, FL	3,346	100	%	3,346	100	%
WaterColor HOA Office	Walton County, FL	2,520	100	%	2,520	100	%
RiverCamps	Bay County, FL	2,112	100	%	2,112	100	%
		1,042,703	93	%	984,603	87	%

* Net Rentable Square Feet is designated as the current square feet available for lease as specified in the applicable lease agreements plus management’s estimate of space available for lease based on construction drawings.

(a) Construction of additional leasing space was completed in the third quarter of 2022.

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(b) In addition to net rentable square feet there is also space that we occupy or that serves as common area.

(c) Included in net rentable square feet as of September 30, 2022 and December 31, 2021, is 1,500 square feet leased to a consolidated JV.

(d) Construction was completed in the third quarter of 2021.

(e) Included in net rentable square feet as of September 30, 2022 and December 31, 2021, is 13,808 square feet of unfinished space.

(f) Included in net rentable square feet as of September 30, 2022 and December 31, 2021, is 1,364 square feet leased to a consolidated JV.

We have other commercial projects under development and construction. This includes approximately 54,000 square feet of leasable space at Watersound Town Center. We have commenced development of Watersound West Bay Center, a lifestyle shopping center adjacent to Latitude Margaritaville Watersound residential community in Panama City Beach, Florida. Watersound West Bay Center has potential to include approximately 350,000 square feet of leasable space at build out, featuring a mix of retail, restaurant, office and medical space. In addition to the properties listed above, we have a number of projects in various stages of planning, including additional commercial buildings and apartment communities.

Critical Accounting Estimates

The discussion and analysis of our financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures of contingent assets and liabilities. We base these estimates on historical experience, available current market information and on various other assumptions that management believes are reasonable under the circumstances. Additionally, we evaluate the results of these estimates on an on-going basis. Management’s estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions and our accounting estimates are subject to change.

Critical accounting policies that we believe reflect our more significant judgments and estimates used in the preparation of our condensed consolidated financial statements are set forth in Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2021. There have been no significant changes in these policies during the first nine months of 2022, however we cannot assure you that these policies will not change in the future.

Recently Adopted and Issued Accounting Pronouncements

See Note 2. Summary of Significant Accounting Policies to our condensed consolidated financial statements included in this report for recently issued or adopted accounting standards, including the date of adoption and effect on our condensed consolidated financial statements.

Seasonality and Market Variability

Our operations may be affected by seasonal fluctuations. Hospitality revenues have historically been lower in the first and fourth quarters and are normally higher in the second and third quarters, but may vary period-to-period with the timing of holidays and extraordinary events such as the COVID-19 pandemic. Homesites sell in sporadic transactions in various communities that may impact quarterly results. Commercial sales may vary from period-to-period.

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Results of Operations

Consolidated Results

The following table sets forth a comparison of the results of our operations:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
	In millions
Revenue:
Real estate revenue	$	17.3	$	23.5	$	82.1	$	85.6
Hospitality revenue		29.0		22.3		74.9		58.0
Leasing revenue		10.1		7.1		28.2		19.1
Timber revenue		1.2		1.0		5.5		4.8
Total revenue		57.6		53.9		190.7		167.5
Expenses:
Cost of real estate revenue		7.2		8.5		35.3		33.1
Cost of hospitality revenue		22.0		16.5		58.2		43.5
Cost of leasing revenue		4.9		3.1		12.6		8.3
Cost of timber revenue		0.2		0.1		0.6		0.5
Corporate and other operating expenses		5.3		5.0		16.5		17.1
Depreciation, depletion and amortization		5.8		4.6		16.3		12.6
Total expenses		45.4		37.8		139.5		115.1
Operating income		12.2		16.1		51.2		52.4
Other income (expense):
Investment income, net		2.7		2.3		7.5		4.8
Interest expense		(4.7)		(4.1)		(13.0)		(11.6)
Gain on contributions to unconsolidated joint ventures		1.4		—		2.0		3.3
Other income, net		2.1		7.4		6.1		9.6
Total other income, net		1.5		5.6		2.6		6.1
Income before equity in income (loss) from unconsolidated joint ventures and income taxes		13.7		21.7		53.8		58.5
Equity in income (loss) from unconsolidated joint ventures		2.5		(0.5)		3.4		(1.6)
Income tax expense		(4.1)		(6.4)		(14.6)		(15.2)
Net income	$	12.1	$	14.8	$	42.6	$	41.7

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Real Estate Revenue and Gross Profit

The following table sets forth a comparison of our total consolidated real estate revenue and gross profit:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2022		% (a)		2021		% (a)		2022		% (a)		2021		% (a)
	Dollars in millions
Revenue:
Residential real estate revenue	$	15.0	86.7	%	$	21.6	91.9	%	$	70.7	86.1	%	$	74.7	87.3	%
Commercial and rural real estate revenue		1.5	8.7	%		1.6	6.8	%		9.6	11.7	%		9.8	11.4	%
Other revenue		0.8	4.6	%		0.3	1.3	%		1.8	2.2	%		1.1	1.3	%
Real estate revenue	$	17.3	100.0	%	$	23.5	100.0	%	$	82.1	100.0	%	$	85.6	100.0	%
Gross profit:
Residential real estate	$	9.1	60.7	%	$	13.5	62.5	%	$	39.1	55.3	%	$	44.2	59.2	%
Commercial and rural real estate		0.7	46.7	%		1.4	87.5	%		7.2	75.0	%		8.0	81.6	%
Other		0.3	37.5	%		0.1	33.3	%		0.5	27.8	%		0.3	27.3	%
Gross profit	$	10.1	58.4	%	$	15.0	63.8	%	$	46.8	57.0	%	$	52.5	61.3	%

(a) Calculated percentage of total real estate revenue and the respective gross margin percentage.

Residential Real Estate Revenue and Gross Profit. During the three months ended September 30, 2022, residential real estate revenue decreased $6.6 million, or 30.6%, to $15.0 million, as compared to $21.6 million during the same period in 2021. During the three months ended September 30, 2022, residential real estate gross profit decreased $4.4 million to $9.1 million (or gross margin of 60.7%), as compared to $13.5 million (or gross margin of 62.5%) during the same period in 2021. During the three months ended September 30, 2022, we sold 78 homesites and had an unimproved residential land sale of $0.9 million, compared to 119 homesites and no unimproved residential land sales during the same period in 2021. During the three months ended September 30, 2022 and 2021, the average revenue, excluding homesite residuals, per homesite sold was approximately $141,000 and $159,000, respectively. The difference in average revenue per homesite was due to the mix of sales from different communities, primarily from sales in the WaterColor community during the prior period.

During the nine months ended September 30, 2022, residential real estate revenue decreased $4.0 million, or 5.4%, to $70.7 million, as compared to $74.7 million during the same period in 2021. During the nine months ended September 30, 2022, residential real estate gross profit decreased $5.1 million to $39.1 million (or gross margin of 55.3%), as compared to $44.2 million (or gross margin of 59.2%) during the same period in 2021. During the nine months ended September 30, 2022, we sold 490 homesites and had unimproved residential land sales of $1.1 million, compared to 494 homesites, two homes and had unimproved residential land sales of $0.1 million during the same period in 2021. During the nine months ended September 30, 2022 and 2021, the average revenue, excluding homesite residuals, per homesite sold was approximately $117,000 and $125,000, respectively, due to the mix of sales from different communities. The revenue, gross profit and margin for each period was impacted by the volume of sales within each of the communities, the difference in pricing among the communities and the difference in the cost of the homesite development. The number of homesites sold varied each period due to the timing of homebuilder contractual closing obligations and the timing of development of completed homesites in our residential communities.

Commercial and Rural Real Estate Revenue and Gross Profit. During the three months ended September 30, 2022, we had nine commercial and rural real estate sales totaling approximately 18 acres for $1.4 million and land improvement services of $0.1 million, together resulting in a gross profit of $0.7 million (or gross margin of 46.7%). During the three months ended September 30, 2021, we had five commercial and rural real estate sales totaling approximately 423 acres for $1.6 million, resulting in a gross profit of $1.4 million (or gross margin of 87.5%).

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During the nine months ended September 30, 2022, we had twenty-one commercial and rural real estate sales totaling approximately 194 acres for $8.7 million and land improvement services of $0.9 million, together resulting in a gross profit of $7.2 million (or gross margin of 75.0%). During the nine months ended September 30, 2021, we had thirteen commercial and rural real estate sales totaling approximately 536 acres for $9.8 million, resulting in a gross profit of $8.0 million (or gross margin of 81.6%). Revenue from commercial and rural real estate can vary significantly from period-to-period depending on the proximity to developed areas and mix of real estate sold in each period, with varying compositions of retail, office, industrial and other commercial uses.

Our gross margin can vary significantly from period-to-period depending on the characteristics of property sold. Sales of rural and timber land typically have a lower cost basis than residential and commercial real estate sales. In addition, our cost basis in residential and commercial real estate can vary depending on the amount of development or other costs incurred on the property.

Other Revenue. Other revenue primarily consists of mitigation bank credit sales and title business revenue.

Hospitality Revenue and Gross Profit

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	In millions
Hospitality revenue	$	29.0		$	22.3		$	74.9		$	58.0
Gross profit	$	7.0		$	5.8		$	16.7		$	14.5
Gross margin		24.1	%		26.0	%		22.3	%		25.0	%

Hospitality revenue increased $6.7 million, or 30.0%, to $29.0 million during the three months ended September 30, 2022, as compared to $22.3 million in the same period in 2021. The increase in hospitality revenue was primarily related to the continued increase of club members from new markets, as well as an increase in lodging revenue from the Homewood Suites by Hilton Panama City Beach, which opened in March 2022 and new WaterColor Inn suites, which opened in June 2022. The increase in hospitality revenue was also due to the opening of a new retail store, standalone restaurants and a marina. Hospitality had a gross margin of 24.1% during the three months ended September 30, 2022, compared to 26.0% during the same period in 2021. The decrease in gross margin was due to pre-opening expenses and onboarding of staff associated with these new assets, and an increase in cost of labor and products in the current period.

Hospitality revenue increased $16.9 million, or 29.1%, to $74.9 million during the nine months ended September 30, 2022, as compared to $58.0 million in the same period in 2021. The increase in hospitality revenue was primarily related to the continued increase of club members from new markets, as well as an increase in lodging revenue from the Hilton Garden Inn Panama City Airport, which opened in July 2021, the Homewood Suites by Hilton Panama City Beach, which opened in March 2022 and new WaterColor Inn suites, which opened in June 2022. The increase in hospitality revenue was also due to the opening of a new retail store, standalone restaurants and a marina. As of September 30, 2022, Watersound Club had 2,573 members, compared with 2,158 members as of September 30, 2021, an increase of 415 members. Hospitality had a gross margin of 22.3% during the nine months ended September 30, 2022, compared to 25.0% during the same period in 2021. The decrease in gross margin was due to pre-opening expenses and onboarding of staff associated with these new assets, and an increase in cost of labor and products in the current period.

Leasing Revenue and Gross Profit

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	In millions
Leasing revenue	$	10.1		$	7.1		$	28.2		$	19.1
Gross profit	$	5.2		$	4.0		$	15.6		$	10.8
Gross margin		51.5	%		56.3	%		55.3	%		56.5	%

Leasing revenue increased $3.0 million, or 42.3%, to $10.1 million during the three months ended September 30, 2022, as compared to $7.1 million in the same period in 2021. Leasing revenue increased $9.1 million, or

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47.6%, to $28.2 million during the nine months ended September 30, 2022, as compared to $19.1 million in the same period in 2021. The increase was primarily due to new multi-family and senior living leases, as well as other new leases. Leasing gross margin decreased during the three months ended September 30, 2022 to 51.5%, as compared to 56.3% during the same period in 2021, primarily due to start-up and lease-up expenses for new assets in the current period. Leasing gross margin was 55.3% during the nine months ended September 30, 2022, as compared to 56.5% during the same period in 2021.

Timber Revenue and Gross Profit

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
	In millions
Timber revenue	$	1.2		$	1.0		$	5.5		$	4.8
Gross profit	$	1.0		$	0.9		$	4.9		$	4.3
Gross margin		83.3	%		90.0	%		89.1	%		89.6	%

Timber revenue increased $0.2 million, or 20.0%, to $1.2 million during the three months ended September 30, 2022, as compared to $1.0 million in the same period in 2021. The increase was primarily due to an increase in the tons of wood products sold and the sales mix of different wood products. There were 60,000 tons of wood products sold during the three months ended September 30, 2022, as compared to 50,000 tons of wood products sold during the same period in 2021. Timber gross margin decreased during the three months ended September 30, 2022 to 83.3%, as compared to 90.0% during the same period in 2021, primarily due to additional maintenance expenses in the current period.

Timber revenue increased $0.7 million, or 14.6%, to $5.5 million during the nine months ended September 30, 2022, as compared to $4.8 million in the same period in 2021. The increase was primarily due to an increase in prices and the sales mix of different wood products, partially offset by a decrease in the tons of wood products sold in the current period. There were 213,000 tons of wood products sold during the nine months ended September 30, 2022, as compared to 223,000 tons of wood products sold during the same period in 2021. Timber gross margin was 89.1% during the nine months ended September 30, 2022, as compared to 89.6% during the same period in 2021.

Corporate and Other Operating Expenses

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	In millions
Employee costs	$	2.3	$	2.0	$	7.1	$	7.8
Property taxes and insurance		1.6		1.4		4.2		4.1
Professional fees		0.8		0.7		2.7		2.3
Marketing and owner association costs		0.2		0.3		0.7		1.3
Occupancy, repairs and maintenance		0.1		0.3		0.6		0.5
Other miscellaneous		0.3		0.3		1.2		1.1
Total corporate and other operating expenses	$	5.3	$	5.0	$	16.5	$	17.1

Corporate and other operating expenses increased $0.3 million to $5.3 million for the three months ended September 30, 2022, as compared to $5.0 million in the same period in 2021. Corporate and other operating expenses decreased $0.6 million during the nine months ended September 30, 2022, as compared to the same period in 2021. The decrease is primarily due to $1.2 million of expense during the three months ended June 30, 2021 to 401(k) plan participants related to the final allocation of surplus assets from the pension plan termination in 2014.

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Depreciation, Depletion and Amortization

Depreciation, depletion and amortization expense increased $1.2 million and $3.7 million during the three and nine months ended September 30, 2022, respectively, as compared to the same periods in 2021, primarily due to new hospitality and commercial assets placed in service.

Investment Income, Net

Investment income, net primarily includes (i) interest and dividends earned and accretion of the net discount (ii) net unrealized gain or loss related to investments - equity securities, (iii) interest income earned on the time deposit held by SPE and (iv) interest earned on mortgage notes receivable and other receivables as detailed in the table below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	In millions
Interest, dividend and accretion income	$	0.4	$	—	$	0.7	$	0.1
Unrealized gain (loss) on investments, net		—		0.1		0.1		(1.9)
Interest income from investments in special purpose entities		2.0		2.0		6.0		6.1
Interest earned on notes receivable and other interest		0.3		0.2		0.7		0.5
Total investment income, net	$	2.7	$	2.3	$	7.5	$	4.8

Investment income, net increased $0.4 million to $2.7 million for the three months ended September 30, 2022, as compared to $2.3 million in the same period in 2021. Investment income, net increased $2.7 million to $7.5 million for the nine months ended September 30, 2022, as compared to $4.8 million in the same period in 2021. The nine months ended September 30, 2022 includes unrealized gains related to preferred stock of $0.1 million, compared to unrealized losses related to preferred stock of $1.9 million during the prior period.

Interest Expense

Interest expense primarily includes interest incurred on the Senior Notes issued by Northwest Florida Timber Finance, LLC, project financing, CDD debt and finance leases, as well as amortization of debt discount and premium and debt issuance costs as detailed in the table below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	In millions
Interest expense and amortization of discount and issuance costs for Senior Notes issued by special purpose entity	$	2.2	$	2.2	$	6.6	$	6.6
Other interest expense		2.5		1.9		6.4		5.0
Total interest expense	$	4.7	$	4.1	$	13.0	$	11.6

Interest expense increased $0.6 million, or 14.6%, to $4.7 million during the three months ended September 30, 2022, as compared to $4.1 million in the same period in 2021. Interest expense increased $1.4 million, or 12.1%, to $13.0 million during the nine months ended September 30, 2022, as compared to $11.6 million in the same period in 2021. The increase in interest expense is primarily related to the increase in project financing and higher interest rates. See Note 10. Debt, Net for additional information regarding project financing.

Gain on Contributions to Unconsolidated Joint Ventures

Gain on contributions to unconsolidated joint ventures during the three and nine months ended September 30, 2022, were $1.4 million and $2.0 million, respectively. Gain on contributions to unconsolidated joint ventures for the three and nine months ended September 30, 2022, include a gain of $1.4 million on land and impact fees contributed to our

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unconsolidated Pier Park RI JV. The nine months ended September 30, 2022, includes a gain of $0.4 million on land contributed to our unconsolidated Electric Cart Watersound JV. The three and nine months ended September 30, 2022, also include a gain of $0.1 million and $0.2 million, respectively, on additional infrastructure improvements contributed to our unconsolidated Latitude Margaritaville Watersound JV.

During the three months ended September 30, 2021, we did not have any gain on contributions to unconsolidated joint ventures. Gain on contributions to unconsolidated joint ventures during the nine months ended September 30, 2021, were $3.3 million. The nine months ended September 30, 2021, includes a gain of $3.1 million on land contributed to our unconsolidated Watersound Fountains Independent Living JV. The nine months ended September 30, 2021, also includes a gain of $0.2 million on additional infrastructure improvements contributed to our unconsolidated Latitude Margaritaville Watersound JV. See Note 4. Joint Ventures for additional information.

Other Income, Net

Other income, net primarily includes income from our retained interest investments, gain on insurance recovery, loss from hurricane damage and other income and expense items as detailed in the table below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	In millions
Accretion income from retained interest investments	$	0.4	$	0.4	$	1.3	$	1.1
Gain on insurance recovery		0.9		2.5		4.2		3.9
Loss from hurricane damage		—		—		(0.1)		—
Miscellaneous income, net		0.8		4.5		0.7		4.6
Other income, net	$	2.1	$	7.4	$	6.1	$	9.6

Other income, net decreased $5.3 million to $2.1 million during the three months ended September 30, 2022, as compared to $7.4 million in the same period in 2021. Other income, net decreased $3.5 million to $6.1 million during the nine months ended September 30, 2022, as compared to $9.6 million in the same period in 2021. The three months ended September 30, 2022 and 2021, includes a gain on insurance recovery of $0.9 million and $2.5 million, respectively, and loss from hurricane damage of less than $0.1 million during each period related to Hurricane Michael. The nine months ended September 30, 2022 and 2021, includes a gain on insurance recovery of $4.2 million and $3.9 million, respectively, and loss from hurricane damage of less than $0.1 million during each period related to Hurricane Michael. See Note 7. Hurricane Michael for additional information.

Miscellaneous income, net during the three and nine months ended September 30, 2022, includes income of $0.3 million and $1.0 million, respectively, related to a gain on retained interest investment. Miscellaneous income, net includes $0.8 million and $0.9 million during the three months ended September 30, 2022 and 2021, respectively, and $1.8 million and $0.9 million during the nine months ended September 30, 2022 and 2021, respectively, received from the Pier Park CDD for repayment of subordinated notes. Miscellaneous income, net during the nine months ended September 30, 2022, also includes expenses of $1.1 million for design costs no longer pursued and $0.6 million for a homeowner’s association special assessment. Miscellaneous income, net during the three and nine months ended September 30, 2021, includes $3.6 million received from the Florida Division of Emergency Management’s TRBG program for recovery of lost income related to timber crop that was destroyed as a result of Hurricane Michael. See Note 7. Hurricane Michael and Note 17. Other Income, Net for additional information.

Income Tax Expense

Income tax expense was $4.1 million during the three months ended September 30, 2022, as compared to $6.4 million during the same period in 2021. Our effective tax rate was 25.2% for the three months ended September 30, 2022, as compared to 29.7% during the same period in 2021.

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Income tax expense was $14.6 million during the nine months ended September 30, 2022, as compared to $15.2 million during the same period in 2021. Our effective tax rate was 25.5% for the nine months ended September 30, 2022, as compared to 26.3% during the same period in 2021.

Our effective rate for the three and nine months ended September 30, 2022, differed from the federal statutory rate of 21.0% primarily due to state income taxes and other permanent items. Our effective rate for the three and nine months ended September 30, 2021, differed from the federal statutory rate of 21.0% primarily due to state income taxes, the change in the 2021 Florida income tax rate from 4.5% to 3.5%, tax credits and other permanent differences. See Note 13. Income Taxes for additional information.

Segment Results

Residential

The table below sets forth the consolidated results of operations of our residential segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	In millions
Revenue:
Real estate revenue	$	13.8	$	20.6	$	65.0	$	70.3
Leasing revenue		—		—		0.1		0.1
Other revenue		1.2		1.0		5.7		4.4
Total revenue		15.0		21.6		70.8		74.8
Expenses:
Cost of real estate and other revenue		6.0		8.0		31.6		30.5
Other operating expenses		0.9		1.1		3.0		3.9
Depreciation, depletion and amortization		—		—		0.1		0.1
Total expenses		6.9		9.1		34.7		34.5
Operating income		8.1		12.5		36.1		40.3
Other income (expense):
Investment income, net		0.3		0.2		0.7		0.5
Interest expense		(0.1)		(0.1)		(0.4)		(0.4)
Gain on contributions to unconsolidated joint ventures		0.1		—		0.2		0.2
Other income (expense), net		—		0.2		(0.5)		0.4
Total other income, net		0.3		0.3		—		0.7
Income before equity in income (loss) from unconsolidated joint ventures and income taxes	$	8.4	$	12.8	$	36.1	$	41.0

Real estate revenue includes sales of homesites, homes and other residential land and certain homesite residuals from homebuilder sales that provide us a percentage of the sale price of the completed home if the home price exceeds a negotiated threshold. Leasing revenue includes long-term leases of residential assets. Other revenue includes tap and impact fee credits sold and marketing fees. Certain homesite residuals and other revenue related to homebuilder homesite sales are recognized in revenue at the point in time of the closing of the sale. For the three months ended September 30, 2022, real estate revenue includes estimated homesite residuals of $1.0 million. For the three months ended September 30, 2021, real estate revenue did not include any estimated homesite residuals. For the three months ended September 30, 2022 and 2021, other revenue includes estimated fees related to homebuilder homesite sales of $0.3 million and $0.2 million, respectively. For the nine months ended September 30, 2022 and 2021, real estate revenue includes estimated homesite residuals of $3.6 million and $2.2 million, respectively, and other revenue includes estimated fees related to homebuilder homesite sales of $1.1 million and $1.5 million, respectively. Cost of real estate revenue includes direct costs (e.g., development and construction costs), selling costs and other indirect costs.

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Three months ended September 30, 2022 compared to the three months ended September 30, 2021

The following table sets forth our consolidated residential real estate revenue and cost of revenue activity:

	Three Months Ended September 30, 2022									Three Months Ended September 30, 2021
	Unit			Cost of		Gross		Gross		Units			Cost of		Gross		Gross
	Sold	Revenue		Revenue		Profit		Margin		Sold	Revenue		Revenue		Profit		Margin
	Dollars in millions
Consolidated
Homesites	78	$	12.9	$	5.5	$	7.4	57.4	%	119	$	20.6	$	7.4	$	13.2	64.1	%
Land sale	N/A		0.9		—		0.9	100.0	%	N/A		—		—		—	—	%
Total consolidated	78	$	13.8	$	5.5	$	8.3	60.1	%	119	$	20.6	$	7.4	$	13.2	64.1	%
Unconsolidated
Homes (a)	117									—
Total	195									119

(a) Includes homes sold by the Latitude Margaritaville Watersound JV, which is unconsolidated and is accounted for under the equity method of accounting. See Note 4. Joint Ventures for additional information.

Homesites. Revenue from homesite sales decreased $7.7 million, or 37.4%, during the three months ended September 30, 2022, as compared to the same period in 2021, primarily due to the mix and number of homesites sold per community, the timing of homebuilder contractual closing obligations and the timing of development of completed homesites in our residential communities. During the three months ended September 30, 2022 and 2021, the average revenue, excluding homesite residuals, per homesite sold was approximately $141,000 and $159,000, respectively. The difference in average revenue per homesite was due to the mix of sales from different communities, primarily from sales in the WaterColor community during the prior period. Gross margin decreased to 57.4% during the three months ended September 30, 2022, as compared to 64.1% during the same period in 2021, primarily due to the mix and number of homesites sold from different communities during each respective period. Gross margin may vary each period depending on the location of homesite sales.

Land sales. During the three months ended September 30, 2022, we had an unimproved residential land sale for $0.9 million, with de minimis cost of revenue. During the three months ended September 30, 2021, we did not have any unimproved residential land sales.

Other operating expenses include salaries and benefits, property taxes, marketing, professional fees, project administration, owner association and CDD assessments and other administrative expenses.

Investment income, net primarily consists of interest earned on our notes receivable and unimproved land contribution to our unconsolidated Latitude Margaritaville Watersound JV. See Note 9. Other Assets and Note 4. Joint Ventures for additional information. Interest expense primarily consists of interest incurred on our portion of the total outstanding CDD debt. See Note 10. Debt, Net for additional information.

Gain on contributions to unconsolidated joint ventures for the three months ended September 30, 2022, includes a gain of $0.1 million on additional infrastructure improvements contributed to our unconsolidated Latitude Margaritaville Watersound JV. During the three months ended September 30, 2021, we did not have any gain on contributions to unconsolidated joint ventures. See Note 4. Joint Ventures for additional information.

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Nine months ended September 30, 2022 compared to the nine months ended September 30, 2021

The following table sets forth our consolidated residential real estate revenue and cost of revenue activity:

	Nine Months Ended September 30, 2022									Nine Months Ended September 30, 2021
	Units			Cost of		Gross		Gross		Units			Cost of		Gross		Gross
	Sold	Revenue		Revenue		Profit		Margin		Sold	Revenue		Revenue		Profit		Margin
	Dollars in millions
Consolidated
Homesites	490	$	63.9	$	29.5	$	34.4	53.8	%	494	$	69.2	$	27.5	$	41.7	60.3	%
Homes	—		—		—		—	—	%	2		1.0		0.9		0.1	10.0	%
Land sales	N/A		1.1		—		1.1	100.0	%	N/A		0.1		—		0.1	100.0	%
Total consolidated	490	$	65.0	$	29.5	$	35.5	54.6	%	496	$	70.3	$	28.4	$	41.9	59.6	%
Unconsolidated
Homes (a)	200									—
Total	690									496

(a) Includes homes sold by the Latitude Margaritaville Watersound JV, which is unconsolidated and is accounted for under the equity method of accounting. See Note 4. Joint Ventures for additional information.

Homesites. Revenue from homesite sales decreased $5.3 million, or 7.7%, during the nine months ended September 30, 2022, as compared to the same period in 2021, primarily due to the mix and number of homesites sold per community, the timing of homebuilder contractual closing obligations and the timing of development of completed homesites in our residential communities. During the nine months ended September 30, 2022 and 2021, the average revenue, excluding homesite residuals, per homesite sold was approximately $117,000 and $125,000, respectively. The decrease in average revenue per homesite sold during the current period, was due to the mix of sales from different communities. Gross margin decreased to 53.8% during the nine months ended September 30, 2022, as compared to 60.3% during the same period in 2021, primarily due to the mix and number of homesites sold from different communities during each respective period. Gross margin may vary each period depending on the location of homesite sales.

Homes. During the nine months ended September 30, 2022, we did not have any home sales. During the nine months ended September 30, 2021, we sold two completed homes within our RiverCamps community for a total of $1.0 million, resulting in a gross profit margin of 10.0%.

Land sales. During the nine months ended September 30, 2022, we had unimproved residential land sales for $1.1 million, with de minimis cost of revenue. During the nine months ended September 30, 2021, we had unimproved residential land sales for $0.1 million, with de minimis cost of revenue.

Other operating expenses include salaries and benefits, property taxes, marketing, professional fees, project administration, owner association and CDD assessments and other administrative expenses.

Investment income, net primarily consists of interest earned on our notes receivable and unimproved land contribution to our unconsolidated Latitude Margaritaville Watersound JV. See Note 9. Other Assets and Note 4. Joint Ventures for additional information. Interest expense primarily consists of interest incurred on our portion of the total outstanding CDD debt. See Note 10. Debt, Net for additional information.

Gain on contributions to unconsolidated joint ventures for each of the nine months ended September 30, 2022 and 2021, includes a gain of $0.2 million on additional infrastructure improvements contributed to our unconsolidated Latitude Margaritaville Watersound JV. See Note 4. Joint Ventures for additional information.

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Other income (expense), net for the nine months ended September 30, 2022 includes $1.0 million of design costs no longer pursued.

Hospitality

The table below sets forth the consolidated results of operations of our hospitality segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	In millions
Revenue:
Hospitality revenue	$	28.8	$	22.0	$	74.4	$	57.4
Leasing revenue		0.2		—		0.3		—
Total revenue		29.0		22.0		74.7		57.4
Expenses:
Cost of hospitality revenue		21.8		16.3		57.7		42.9
Cost of leasing revenue		0.3		—		0.5		—
Other operating expenses		0.2		0.2		0.8		0.5
Depreciation, depletion and amortization		2.4		1.7		6.5		4.4
Total expenses		24.7		18.2		65.5		47.8
Operating income		4.3		3.8		9.2		9.6
Other expense:
Interest expense		(0.5)		(0.2)		(1.0)		(0.3)
Other income, net		0.6		0.6		1.0		0.6
Total other income, net		0.1		0.4		—		0.3
Income before equity in income (loss) from unconsolidated joint ventures and income taxes	$	4.4	$	4.2	$	9.2	$	9.9

Three months ended September 30, 2022 compared to the three months ended September 30, 2021

The following table sets forth details of our hospitality segment consolidated revenue and cost of revenue:

	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
			Gross		Gross				Gross		Gross
	Revenue		Profit (Deficit)		Margin		Revenue		Profit		Margin
	In millions
Clubs	$	10.8	$	3.5	32.4	%	$	8.2	$	2.0	24.4	%
Hotel operations, certain food and beverage operations, short-term vacation rentals and other management services		15.3		3.6	23.5	%		12.3		3.1	25.2	%
Other		2.7		(0.1)	(3.7)	%		1.5		0.5	33.3	%
Total	$	28.8	$	7.0	24.3	%	$	22.0	$	5.6	25.5	%

Revenue from our clubs increased $2.6 million, or 31.7%, during the three months ended September 30, 2022, as compared to the same period in 2021. The increase in revenue in the current period was primarily due to increases in the number of club members and membership revenue. Our clubs gross margin increased to 32.4% during the three months ended September 30, 2022, compared to 24.4% during the same period in 2021. The increase in gross margin in the current period was due to the additional growth in membership, as well as more local full-time members utilizing club amenities.

Revenue from our hotel operations, certain food and beverage operations, short-term vacation rentals and other management services increased $3.0 million, or 24.4%, during the three months ended September 30, 2022, as compared

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to the same period in 2021. The increase was primarily due to an increase in lodging revenue from the Homewood Suites by Hilton Panama City Beach, which opened in March 2022 and new WaterColor Inn suites, which opened in June 2022. The three months ended September 30, 2022 had a gross margin of 23.5%, compared to 25.2% during the same period in 2021.

Revenue from other hospitality operations increased $1.2 million, or 80.0%, during the three months ended September 30, 2022, as compared to the same period in 2021. The increase in other hospitality revenue was primarily related to revenue from Harrison’s Kitchen & Bar, which opened in August 2022, WindMark Beach Bruno’s Pizza, which opened in December 2021 and Point South Marina Bay Point, which fully reopened in the third quarter of 2022. Our other hospitality operations had a negative gross margin of 3.7% during the three months ended September 30, 2022, compared to a gross margin of 33.3% during the same period in 2021. The decrease in gross margin was due to opening expenses and onboarding of staff for these new assets. The gross margin was also impacted by $0.2 million of business interruption proceeds received for the marinas in the prior period. We did not have revenue from our Point South Marina Port St. Joe during the three months ended September 30, 2022 and 2021, due to the impact of Hurricane Michael. See Note 7. Hurricane Michael for additional information.

Leasing revenue includes marina boat slip rentals.

Other operating expenses include salaries and benefits, professional fees and other administrative expenses.

The increase of $0.7 million in depreciation, depletion and amortization expense during the three months ended September 30, 2022, as compared to the same period in 2021, was primarily due to new properties placed in service.

Interest expense primarily includes interest incurred from our hospitality project financing. See Note 10. Debt, Net for additional information.

Other income, net for the three months ended September 30, 2022 and 2021 includes $0.8 million and $0.9 million, respectively, received from the Pier Park CDD for repayment of subordinated notes.

Nine months ended September 30, 2022 compared to the nine months ended September 30, 2021

The following table sets forth details of our hospitality segment consolidated revenue and cost of revenue:

	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
			Gross		Gross				Gross		Gross
	Revenue		Profit		Margin		Revenue		Profit		Margin
	In millions
Clubs	$	30.5	$	9.0	29.5	%	$	23.1	$	6.5	28.1	%
Hotel operations, certain food and beverage operations, short-term vacation rentals and other management services		37.7		7.7	20.4	%		29.9		6.7	22.4	%
Other		6.2		—	—	%		4.4		1.3	29.5	%
Total	$	74.4	$	16.7	22.4	%	$	57.4	$	14.5	25.3	%

Revenue from our clubs increased $7.4 million, or 32.0%, during the nine months ended September 30, 2022, as compared to the same period in 2021. The increase in revenue in the current period was due to increases in the number of club members and membership revenue. As of September 30, 2022, Watersound Club had 2,573 members, compared with 2,158 members as of September 30, 2021, an increase of 415 members. Our clubs gross margin was 29.5% during the nine months ended September 30, 2022, compared to 28.1% during the same period in 2021.

Revenue from our hotel operations, certain food and beverage operations, short-term vacation rentals and other management services increased $7.8 million, or 26.1%, during the nine months ended September 30, 2022, as compared to the same period in 2021. The increase was primarily due to an increase in lodging revenue from the Hilton Garden Inn Panama City Airport, which opened in July 2021, Homewood Suites by Hilton Panama City Beach, which opened in

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March 2022 and new WaterColor Inn suites, which opened in June 2022. The nine months ended September 30, 2022 had a gross margin of 20.4%, compared to 22.4% during the same period in 2021. The decrease in gross margin was due to pre-opening expenses associated with these assets, onboarding of staff for future assets currently under construction and an increase in cost of labor and products.

Revenue from other hospitality operations increased $1.8 million, or 40.9%, during the nine months ended September 30, 2022, as compared to the same period in 2021. The increase in other hospitality revenue was primarily related to revenue from Harrison’s Kitchen & Bar, which opened in August 2022, WindMark Beach Bruno’s Pizza, which opened in December 2021, WaterColor Kids retail store, which opened in March 2022 and Point South Marina Bay Point, which fully reopened in the third quarter of 2022. Our other hospitality operations had a gross margin of 0.0% during the nine months ended September 30, 2022, compared to 29.5% during the same period in 2021. The decrease in gross margin was due to opening expenses and onboarding of staff for these new assets. The gross margin was also impacted by $0.6 million of business interruption proceeds received for the marinas in the prior period. We did not have revenue from our Point South Marina Port St. Joe during the nine months ended September 30, 2022 and 2021, due to the impact of Hurricane Michael. See Note 7. Hurricane Michael for additional information.

Leasing revenue includes marina boat slip rentals.

Other operating expenses include salaries and benefits, professional fees and other administrative expenses.

The increase of $2.1 million in depreciation, depletion and amortization expense during the nine months ended September 30, 2022, as compared to the same period in 2021, was primarily due to new properties placed in service.

Interest expense primarily includes interest incurred from our hospitality project financing. The increase of $0.7 million in interest expense during the nine months ended September 30, 2022, as compared to the same period in 2021, was primarily due to an increase in project financing and higher interest rates. See Note 10. Debt, Net for additional information.

Other income, net for the nine months ended September 30, 2022 and 2021, includes $1.8 million and $0.9 million, respectively, received from the Pier Park CDD for repayment of subordinated notes, partially offset by $0.6 million of expense for a homeowner’s association special assessment in the current period.

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Commercial

The table below sets forth the consolidated results of operations of our commercial segment:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	In millions
Revenue:
Leasing revenue
Commercial leasing revenue	$	4.9	$	4.1	$	14.3	$	11.6
Multi-family leasing revenue		3.6		2.4		10.2		6.1
Senior living leasing revenue		1.3		0.6		3.3		1.2
Total leasing revenue		9.8		7.1		27.8		18.9
Commercial and rural real estate revenue		1.5		1.6		9.6		9.8
Timber revenue		1.2		1.0		5.5		4.8
Hospitality revenue		0.2		0.4		0.5		0.6
Total revenue		12.7		10.1		43.4		34.1
Expenses:
Cost of leasing revenue		4.5		3.0		11.9		8.1
Cost of commercial and rural real estate revenue		0.7		0.2		2.4		1.8
Cost of timber revenue		0.2		0.1		0.6		0.5
Cost of hospitality revenue		0.1		0.3		0.5		0.6
Other operating expenses		1.2		1.1		3.3		3.0
Depreciation, depletion and amortization		3.3		2.8		9.3		7.8
Total expenses		10.0		7.5		28.0		21.8
Operating income		2.7		2.6		15.4		12.3
Other (expense) income:
Interest expense		(1.9)		(1.6)		(5.0)		(4.2)
Gain on contributions to unconsolidated joint ventures		1.3		—		1.8		3.1
Other (expense) income, net		(0.1)		3.6		(0.7)		3.7
Total other (expense) income, net		(0.7)		2.0		(3.9)		2.6
Income before equity in income (loss) from unconsolidated joint ventures and income taxes	$	2.0	$	4.6	$	11.5	$	14.9

Three months ended September 30, 2022 compared to the three months ended September 30, 2021

The following table sets forth details of our commercial segment consolidated revenue and cost of revenue:

	Three Months Ended September 30, 2022						Three Months Ended September 30, 2021
			Gross		Gross				Gross		Gross
	Revenue		Profit		Margin		Revenue		Profit (Deficit)		Margin
	In millions
Leasing
Commercial leasing	$	4.9	$	3.0	61.2	%	$	4.1	$	2.8	68.3	%
Multi-family leasing		3.6		2.1	58.3	%		2.4		1.5	62.5	%
Senior living leasing		1.3		0.2	15.4	%		0.6		(0.2)	(33.3)	%
Total leasing		9.8		5.3	54.1	%		7.1		4.1	57.7	%
Commercial and rural real estate		1.5		0.8	53.3	%		1.6		1.4	87.5	%
Timber		1.2		1.0	83.3	%		1.0		0.9	90.0	%
Hospitality		0.2		0.1	50.0	%		0.4		0.1	25.0	%
Total	$	12.7	$	7.2	56.7	%	$	10.1	$	6.5	64.4	%

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Total leasing revenue increased $2.7 million, or 38.0%, during the three months ended September 30, 2022, as compared to the same period in 2021. The increase was primarily due to new multi-family and senior living leases, as well as other new leases. Total leasing gross margin was 54.1% during the three months ended September 30, 2022, as compared to 57.7% during the same period in 2021.

During the three months ended September 30, 2022, we had nine commercial and rural real estate sales of approximately 18 acres for $1.4 million and land improvement services of $0.1 million, together resulting in a gross margin of approximately 53.3%. During the three months ended September 30, 2021, we had five commercial and rural real estate sales totaling approximately 423 acres for $1.6 million, resulting in gross margin of approximately 87.5%.

Timber revenue increased $0.2 million, or 20.0%, to $1.2 million during the three months ended September 30, 2022, as compared to $1.0 million during the same period in 2021. The increase was primarily due to an increase in the tons of wood products sold and the sales mix of different wood products. There were 60,000 tons of wood products sold during the three months ended September 30, 2022, as compared to 50,000 tons of wood products sold during the same period in 2021. The average price of wood product sold increased to $17.43 per ton during the three months ended September 30, 2022, as compared to $17.32 per ton during the same period in 2021. Timber gross margin decreased during the three months ended September 30, 2022 to 83.3%, as compared to 90.0% during the same period in 2021, primarily due to additional maintenance expenses in the current period.

Hospitality revenue includes some of our short-term vacation rentals.

Other operating expenses include salaries and benefits, property taxes, CDD assessments, professional fees, marketing, project administration and other administrative expenses.

The increase of $0.5 million in depreciation, depletion and amortization expense during the three months ended September 30, 2022, as compared to the same period in 2021, was primarily due to new properties placed in service.

Interest expense primarily includes interest incurred from our commercial project financing and CDD debt. See Note 10. Debt, Net for additional information.

Gain on contributions to unconsolidated joint ventures for the three months ended September 30, 2022, includes a gain of $1.4 million on land and impact fees contributed to our unconsolidated Pier Park RI JV. See Note 4. Joint Ventures for additional information. During the three months ended September 30, 2021, we did not have any gain on contributions to unconsolidated joint ventures.

Other (expense) income, net during the three months ended September 30, 2021, includes $3.6 million received from the Florida Division of Emergency Management’s TRBG program for recovery of lost income related to timber crop that was destroyed as a result of Hurricane Michael. See Note 7. Hurricane Michael and Note 17. Other Income, Net for additional information.

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Nine months ended September 30, 2022 compared to the nine months ended September 30, 2021

The following table sets forth details of our commercial segment consolidated revenue and cost of revenue:

	Nine Months Ended September 30, 2022						Nine Months Ended September 30, 2021
			Gross		Gross				Gross		Gross
	Revenue		Profit		Margin		Revenue		Profit (Deficit)		Margin
	In millions
Leasing
Commercial leasing	$	14.3	$	9.2	64.3	%	$	11.6	$	7.9	68.1	%
Multi-family leasing		10.2		6.4	62.7	%		6.1		4.0	65.6	%
Senior living leasing		3.3		0.3	9.1	%		1.2		(1.1)	(91.7)	%
Total leasing		27.8		15.9	57.2	%		18.9		10.8	57.1	%
Commercial and rural real estate		9.6		7.2	75.0	%		9.8		8.0	81.6	%
Timber		5.5		4.9	89.1	%		4.8		4.3	89.6	%
Hospitality		0.5		—	—	%		0.6		—	—	%
Total	$	43.4	$	28.0	64.5	%	$	34.1	$	23.1	67.7	%

Total leasing revenue increased $8.9 million, or 47.1%, during the nine months ended September 30, 2022, as compared to the same period in 2021. The increase was primarily due to new multi-family and senior living leases, as well as other new leases. Total leasing gross margin was 57.2% during the nine months ended September 30, 2022, as compared to 57.1% during the same period in 2021. As of September 30, 2022, we had net rentable square feet of approximately 1,043,000, of which approximately 971,000 square feet was under lease. As of September 30, 2021, we had net rentable square feet of approximately 986,000, of which approximately 821,000 square feet was under lease. As of September 30, 2022, we had 998 multi-family and senior living units leased, compared to 657 multi-family and senior living units leased as of September 30, 2021.

We believe the diversity of our commercial segment complements the growth of our residential and hospitality segments. Commercial and rural real estate revenue can vary depending on the proximity to developed areas and the mix and characteristics of commercial and rural real estate sold in each period, with varying compositions of retail, office, industrial and other commercial uses. During the nine months ended September 30, 2022, we had twenty-one commercial and rural real estate sales of approximately 194 acres for $8.7 million and land improvement services of $0.9 million, together resulting in a gross margin of approximately 75.0%. During the nine months ended September 30, 2021, we had thirteen commercial and rural real estate sales totaling approximately 536 acres for $9.8 million, resulting in a gross margin of approximately 81.6%. As our focus continues to evolve more towards recurring revenue from leasing operations, we expect to have limited commercial and rural real estate sales. Further, we may continue to transform and operate commercial properties for higher and better use. This may result in certain assets moving from the commercial segment to the hospitality segment.

Timber revenue increased $0.7 million, or 14.6%, to $5.5 million during the nine months ended September 30, 2022, as compared to $4.8 million during the same period in 2021. The increase was primarily due to an increase in prices and the sales mix of different wood products, partially offset by a decrease in the tons of wood products sold in the current period. There were 213,000 tons of wood products sold during the nine months ended September 30, 2022, as compared to 223,000 tons of wood products sold during the same period in 2021. The average price of wood product sold increased to $23.71 per ton during the nine months ended September 30, 2022, as compared to $19.28 per ton during the same period in 2021. Timber gross margin was 89.1% during the nine months ended September 30, 2022, as compared to 89.6% during the same period in 2021.

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The total tons sold and relative percentage of total tons sold by major type of wood product are as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Pine pulpwood	33,000	55.0	%	33,000	66.0	%	113,000	53.1	%	124,000	55.6	%
Pine sawtimber	27,000	45.0	%	16,000	32.0	%	95,000	44.6	%	89,000	39.9	%
Pine grade logs	—	—	%	1,000	2.0	%	2,000	0.9	%	8,000	3.6	%
Other	—	—	%	—	—	%	3,000	1.4	%	2,000	0.9	%
Total	60,000	100.0	%	50,000	100.0	%	213,000	100.0	%	223,000	100.0	%

Hospitality revenue includes some of our short-term vacation rentals.

Other operating expenses include salaries and benefits, property taxes, CDD assessments, professional fees, marketing, project administration and other administrative expenses.

The increase of $1.5 million in depreciation, depletion and amortization expense during the nine months ended September 30, 2022, as compared to the same period in 2021, was primarily due to new properties placed in service.

Interest expense primarily includes interest incurred from our commercial project financing and CDD debt. The increase of $0.8 million in interest expense during the nine months ended September 30, 2022, as compared to the same period in 2021, was primarily due to an increase in project financing and higher interest rates. See Note 10. Debt, Net for additional information.

Gain on contributions to unconsolidated joint ventures for the nine months ended September 30, 2022, includes a gain of $1.4 million on land and impact fees contributed to our unconsolidated Pier Park RI JV and a gain of $0.4 million on land contributed to our unconsolidated Electric Cart Watersound JV. Gain on contributions to unconsolidated joint ventures for the nine months ended September 30, 2021, includes a gain of $3.1 million on land contributed to our unconsolidated Watersound Fountains Independent Living JV. See Note 4. Joint Ventures for additional information.

Other (expense) income, net during the nine months ended September 30, 2021, includes $3.6 million received from the Florida Division of Emergency Management’s TRBG program for recovery of lost income related to timber crop that was destroyed as a result of Hurricane Michael. See Note 7. Hurricane Michael and Note 17. Other Income, Net for additional information.

Liquidity and Capital Resources

As of September 30, 2022, we had cash and cash equivalents and U.S. Treasury Bills classified as investments – debt securities of $92.9 million, compared to $159.1 million as of December 31, 2021. As of September 30, 2022, we also had investments - equity securities in preferred stock investments of $0.3 million. In addition to cash and cash equivalents, we consider our investments classified as available-for-sale securities and equity securities (“Securities”), as being generally available to meet our liquidity needs. Securities are not as liquid as cash and cash equivalents, but they are generally convertible into cash within a relatively short period of time. See Note 5. Investments for additional information regarding our investments.

We believe that our current cash position, financing arrangements and cash generated from operations will provide us with sufficient liquidity to satisfy our anticipated working capital needs, expected capital expenditures, principal and interest payments on our long-term debt, capital contributions to JVs, Latitude JV Note commitment, authorized stock repurchases and authorized dividends for the next twelve months.

During the nine months ended September 30, 2022, we invested a total of $229.6 million for capital expenditures, which includes $66.0 million for our residential segment, $70.0 million for our commercial segment, $93.3 million for our hospitality segment and $0.3 million for corporate expenditures. As of September 30, 2022, we had a total of $169.0 million in construction and development related contractual obligations, of which a portion will be funded through committed or new financing arrangements.

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As of September 30, 2022 and December 31, 2021, we had various loans outstanding totaling $326.8 million and $227.5 million, respectively, with maturities from May 2023 through March 2064. The weighted average rate on our variable rate loans as of September 30, 2022 was 5.4%. See Item 3. Quantitative and Qualitative Disclosures about Market Risk for additional information regarding LIBOR related risks. See Note 10. Debt, Net for additional information.

In 2015, the Pier Park North JV entered into a $48.2 million loan. As of September 30, 2022 and December 31, 2021, $42.8 million and $43.6 million, respectively, was outstanding on the PPN JV Loan. The loan accrues interest at a rate of 4.1% per annum and matures in November 2025. In connection with the loan, we entered into a limited guarantee in favor of the lender, based on our percentage ownership of the JV. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation by the Pier Park North JV; any voluntary transfer or encumbrance of the property in violation of the due-on-sale clause in the security instrument; upon commencement of voluntary bankruptcy or insolvency proceedings and upon breach of covenants in the security instrument. See Note 10. Debt, Net for additional information.

In 2018, the Pier Park Crossings JV entered into a $36.6 million loan, insured by HUD, to finance the construction of apartments in Panama City Beach, Florida. As of September 30, 2022 and December 31, 2021, $35.3 million and $35.7 million, respectively, was outstanding on the PPC JV Loan. The loan bears interest at a rate of 3.1% and matures in June 2060. The loan includes a prepayment premium due to the lender of 2% - 10% for any additional principal that is prepaid through August 31, 2031. The loan is secured by the real property and certain other Security Interests. See Note 10. Debt, Net for additional information.

In 2019, the Watersound Origins Crossings JV entered into a $37.9 million loan. In January 2022, the Watersound Origins Crossings JV entered into a modification that increased the principal amount of the loan to $44.0 million, modified the interest rate from 5.0% to SOFR plus 2.8%, with a floor of 3.3%, and provides for payments of interest only with a final balloon payment at maturity in May 2024. As of September 30, 2022 and December 31, 2021, $44.0 million and $37.9 million, respectively, was outstanding on the Watersound Origins Crossings JV Loan. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Watersound Origins Crossings JV Loan. As guarantor, our liability has been reduced to 25% of the outstanding principal amount, based on meeting certain debt service coverage and loan to value requirements. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation or failure to abide by other certain obligations on the part of such guarantor. We are the sole guarantor and receive a monthly fee related to the guarantee from our JV partner based on the JV partner’s ownership percentage. See Note 10. Debt, Net for additional information.

In 2019, the Watercrest JV entered into a $22.5 million loan. As of September 30, 2022 and December 31, 2021, $21.2 million and $20.1 million, respectively, was outstanding on the Watercrest JV Loan. The loan bears interest at a rate of LIBOR plus 2.2% and matures in June 2047. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Watercrest JV Loan. We are the sole guarantor and receive a quarterly fee related to the guarantee from our JV partner based on the JV partner’s ownership percentage. The Watercrest JV entered into an interest rate swap to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR. The interest rate swap was effective June 1, 2021 and matures on June 1, 2024 and fixed the variable rate on the notional amount of related debt of $20.0 million to a rate of 4.4%. In April 2022, the swap was terminated resulting in a gain of $0.1 million, included in interest expense on the condensed consolidated statements of income for the nine months ended September 30, 2022. See Note 6. Financial Instruments and Fair Value Measurements and Note 10. Debt, Net for additional information.

In 2019, a wholly-owned subsidiary of ours entered into a $5.5 million loan. As of September 30, 2022 and December 31, 2021, $5.0 million and $5.2 million, respectively, was outstanding on the Beckrich Building III Loan. The loan bears interest at a rate of LIBOR plus 1.7% and matures in August 2029. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Beckrich Building III Loan. See Note 10. Debt, Net for additional information.

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In 2019, the Pier Park Crossings Phase II JV entered into a $17.5 million loan. As of September 30, 2022 and December 31, 2021, $22.7 million and $17.4 million, respectively, was outstanding on the PPC II JV Loan. In April 2022, the Pier Park Crossings Phase II JV entered into an amendment of the PPC II JV Loan that increased the principal amount of the loan, which had a balance of $17.3 million at the time of the amendment, to $22.9 million, fixed the interest rate to 2.7% and provides for monthly payments of principal and interest through maturity in May 2057. The amended loan terms include a prepayment premium due to the lender of 1% - 10% for any principal that is prepaid through May 31, 2032. The amended loan is insured by HUD and is secured by the real property and certain other Security Interests. As of September 30, 2022, we incurred $0.2 million of additional loan cost. As a result of the amendment, the nine months ended September 30, 2022 include a $0.1 million loss on early extinguishment of debt related to unamortized debt issuance costs, included within other income, net on the condensed consolidated statements of income. See Note 10. Debt, Net for additional information.

In March 2020, a wholly-owned subsidiary of ours entered into a $15.3 million loan. As of both September 30, 2022 and December 31, 2021, $14.6 million was outstanding on the Airport Hotel Loan. The loan bears interest at LIBOR plus 2.0%, with a floor of 3.0%, and matures in March 2025. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Airport Hotel Loan. See Note 10. Debt, Net for additional information.

In April 2020, the Pier Park Resort Hotel JV entered into a loan with an initial amount of $52.5 million and up to a maximum of $60.0 million through additional earn-out requests. As of September 30, 2022 and December 31, 2021, $38.3 million and $14.7 million, respectively, was outstanding on the Pier Park Resort Hotel JV Loan. The loan matures in April 2027 and bears interest at a rate of LIBOR plus 2.2% during construction and LIBOR plus 2.0% upon hotel opening. The loan is secured by the real property and certain other Security Interests. In connection with the loan, as guarantors, we and our JV partner entered into a guarantee based on each partner’s ownership interest in favor of the lender, to guarantee the payment and performance of the borrower. As guarantor, our liability under the loan will be released upon reaching and maintaining certain debt service coverage for twelve months. In addition, the guarantee can become full recourse in the case of the failure of the guarantors to abide by or perform any of the covenants or warranties to be performed on the part of such guarantor. The Pier Park Resort Hotel JV entered into an interest rate swap to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR. The interest rate swap is effective December 10, 2022 and matures on April 12, 2027 and fixed the variable rate on the notional amount of related debt of $42.0 million to a rate of 3.2%. See Note 6. Financial Instruments and Fair Value Measurements and Note 10. Debt, Net for additional information.

In November 2020, a wholly-owned subsidiary of ours entered into a $16.8 million loan. As of September 30, 2022 and December 31, 2021, $16.4 million and $11.8 million, respectively, was outstanding on the Breakfast Point Hotel Loan. The loan matures in November 2042 and bears interest at a rate of LIBOR plus 2.8% through November 2022, 3.3% over the 5-Year T-Bill Index from November 2022 through November 2027 and 3.3% over the 1-Year T-Bill Index from November 2027 through November 2042, with a minimum rate of 3.8% throughout the term of the loan. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Breakfast Point Hotel Loan. See Note 10. Debt, Net for additional information.

In November 2020, a wholly-owned subsidiary of ours entered into a $5.8 million loan. As of both September 30, 2022 and December 31, 2021, $4.7 million was outstanding on the Self-Storage Facility Loan. The loan matures in November 2025 and bears interest at a rate of LIBOR plus 2.4%, with a floor of 2.9%. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Self-Storage Facility Loan. Our liability as guarantor under the loan shall not exceed $2.9 million, plus any additional fees, upon reaching and maintaining certain debt service coverage. See Note 10. Debt, Net for additional information.

In January 2021, The Lodge 30A JV entered into a $15.0 million loan. As of September 30, 2022 and December 31, 2021, $13.0 million and $7.5 million, respectively, was outstanding on the Lodge 30A JV Hotel Loan. The loan bears interest at a rate of 3.8% and matures in January 2028. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we, wholly-owned subsidiaries of ours and our JV partner entered into a joint and several payment and performance guarantee in favor of the lender. Upon reaching a certain debt service coverage ratio

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for a minimum of twenty-four months, our liability as guarantor will be reduced to 75% of the outstanding principal amount for a twelve-month period. The debt service coverage ratio will be tested annually thereafter and will be reduced to 50% in year four and 25% in year five. We receive a monthly fee related to the guarantee from our JV partner based on the JV partner’s ownership percentage. See Note 10. Debt, Net for additional information.

In March 2021, a wholly-owned subsidiary of ours entered into a $26.8 million loan. As of September 30, 2022 and December 31, 2021, $15.7 million and $1.3 million, respectively, was outstanding on the North Bay Landing Apartments Loan. The loan bears interest at a rate of LIBOR plus 2.5%, with a floor of 3.2%. Upon reaching a certain debt service coverage ratio, the loan will bear interest at a rate of LIBOR plus 2.3%, with a floor of 3.0%. The loan matures in September 2024 and includes an option for an extension of the maturity date by eighteen months, subject to certain conditions. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee completion of the project and the payment and performance of the borrower under the North Bay Landing Apartments Loan. As guarantor, our liability under the loan will be reduced to 50% of the outstanding principal amount upon satisfaction of final advance conditions and reduced to 25% of the outstanding principal amount upon reaching and maintaining a certain debt service coverage ratio. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation or failure to abide by other certain obligations on the part of such guarantor. See Note 10. Debt, Net for additional information.

In June 2021, a wholly-owned subsidiary of ours entered into a $28.0 million loan. As of September 30, 2022 and December 31, 2021, $13.1 million and $3.4 million, respectively, was outstanding on the Watersound Camp Creek Loan. The loan bears interest at a rate of LIBOR plus 2.1%, with a floor of 2.6%, and matures in December 2047. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee completion of the project and the payment of the borrower under the Watersound Camp Creek Loan. As guarantor, our liability under the loan will be reduced to 50% of the outstanding principal amount upon the project reaching and maintaining a trailing six months of operations with a certain debt service coverage ratio and reduced to 25% of the outstanding principal amount upon reaching and maintaining a trailing twelve months of operations of a certain debt service coverage ratio. In addition, the guarantee can become full recourse in the case of the failure of guarantor to abide by or perform any of the covenants, warranties or other certain obligations to be performed on the part of such guarantor. See Note 10. Debt, Net for additional information.

In August 2021, a wholly-owned subsidiary of ours entered into a $12.0 million loan. As of September 30, 2022 and December 31, 2021, $9.6 million and $0.6 million, respectively, was outstanding on the Watersound Town Center Grocery Loan. The loan bears interest at LIBOR plus 2.0%, with a floor of 2.2%, and matures in August 2031. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee the performance of the borrower under the Watersound Town Center Grocery Loan. As guarantor, our liability under the loan will be reduced to 50% of the outstanding principal amount upon satisfaction of final advance conditions, issuance of the certificate of occupancy for the project and receipt of the initial base rent payment and reduced to 25% of the outstanding principal amount upon reaching a certain debt service coverage ratio and the project maintaining 93% occupancy for ninety consecutive days. See Note 10. Debt, Net for additional information.

In October 2021, a wholly-owned subsidiary of ours entered into a $21.2 million loan. As of September 30, 2022, $6.2 million was outstanding on the Hotel Indigo Loan. As of December 31, 2021, there was no principal balance outstanding on the Hotel Indigo Loan. In June 2022, the Hotel Indigo Loan was amended to revise the interest rate to SOFR plus 2.7%, with a floor of 2.7%, through October 2023 and SOFR plus 2.5%, with a floor of 2.5%, from November 2023 through maturity. The loan matures in October 2028 and includes an option for an extension of the maturity date by sixty months, subject to certain conditions. The loan is secured by the leasehold property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee completion of the project and the payment and performance of the borrower under the Hotel Indigo Loan. See Note 10. Debt, Net for additional information.

In January 2022, the Mexico Beach Crossings JV entered into a $43.5 million loan, insured by HUD, to finance the construction of apartments in Mexico Beach, Florida. As of September 30, 2022, $13.7 million was outstanding on the Mexico Beach Crossings JV Loan. The loan bears interest at a rate of 3.0% and matures in March 2064. The loan may not be prepaid prior to April 1, 2024 and if any additional principal is prepaid from April 1, 2024 through March 31,

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2034 a premium is due to the lender of 1% - 10%. The loan is secured by the real and certain other Security Interests. See Note 10. Debt, Net for additional information.

In July 2022, a wholly-owned subsidiary of ours entered into a $13.7 million loan. As of September 30, 2022, $2.1 million was outstanding on the Topsail Hotel Loan. The loan bears interest at a rate of SOFR plus 2.1%, with a floor of 3.0% and matures in July 2027. The loan is secured by the real property and certain other Security Interests. In connection with the loan, we executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Topsail Hotel Loan. See Note 10. Debt, Net for additional information.

CDD bonds financed the construction of infrastructure improvements in some of our communities. The principal and interest payments on the bonds are paid by assessments on the properties benefited by the improvements financed by the bonds. We have recorded a liability for CDD debt that is associated with platted property, which is the point at which it becomes fixed and determinable. Additionally, we have recorded a liability for the balance of the CDD debt that is associated with unplatted property if it is probable and reasonably estimable that we will ultimately be responsible for repayment. We have recorded CDD related debt of $4.2 million as of September 30, 2022. Total outstanding CDD debt related to our land holdings was $13.2 million as of September 30, 2022, which was comprised of $11.1 million at SouthWood, $2.0 million at the existing Pier Park retail center and less than $0.1 million at Wild Heron. We pay interest on this total outstanding CDD debt.

As of September 30, 2022, our unconsolidated Watersound Fountains Independent Living JV, Sea Sound JV, Latitude Margaritaville Watersound JV, Pier Park TPS JV, Pier Park RI JV, Busy Bee JV and Electric Cart Watersound JV had various loans outstanding, some of which we have entered into guarantees. See Note 4. Joint Ventures and Note 19. Commitments and Contingencies for additional information.

In June 2020, we, as lender, entered into a $10.0 million secured revolving promissory note with the unconsolidated Latitude Margaritaville Watersound JV, as borrower. As of September 30, 2022, there was no principal balance outstanding on the Latitude JV Note. As of December 31, 2021, $7.1 million was outstanding on the Latitude JV Note. The note was provided by us to finance the development of the pod-level, non-spine infrastructure. Future advances, if any, will be repaid by the JV as each home is sold by the JV, with the aggregate unpaid principal and all accrued and unpaid interest due at maturity in June 2025. The note is secured by a mortgage and security interest in and on the real property and improvements located on the real property of the JV. See Note 4. Joint Ventures and Note 9. Other Assets for additional information.

During the three months ended September 30, 2022, we repurchased 572,203 shares of our common stock outstanding at an average purchase price of $34.78, per share for an aggregate purchase price of $19.8 million. During the nine months ended September 30, 2022, we repurchased 576,963 shares of our common stock outstanding at an average purchase price of $34.81, per share for an aggregate purchase price of $20.0 million. During the three and nine months ended September 30, 2021, we did not repurchase shares of our common stock outstanding. See Note 15. Stockholders’ Equity for additional information regarding the Stock Repurchase Program.

As part of a timberland sale in 2008, we have recorded a retained interest with respect to notes contributed to bankruptcy-remote qualified SPEs of $7.8 million for the installment notes monetized through September 30, 2022. This balance represents the present value of future cash flows to be received over the life of the installment notes, using management’s best estimates of underlying assumptions, including credit risk and interest rates as of the date of the monetization, plus the accretion of investment income based on an effective yield, which is recognized over the term of the notes, less actual cash receipts. See Note 9. Other Assets for additional information.

As of September 30, 2022 and December 31, 2021, we were required to provide surety bonds that guarantee completion and maintenance of certain infrastructure in certain development projects and mitigation banks, as well as other financial guarantees of $36.7 million and $36.9 million, respectively, as well as standby letters of credit in the amount of $19.4 million and $12.9 million, respectively, which may potentially result in a liability to us if certain obligations are not met.

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In conducting our operations, we routinely hold customers’ assets in escrow pending completion of real estate transactions and are responsible for the proper disposition of these balances for our customers. These amounts are maintained in segregated bank accounts and have not been included in the accompanying condensed consolidated balance sheets, consistent with GAAP and industry practice. The cash deposit accounts and offsetting liability balances for escrow deposits in connection with our title agencies for real estate transactions were $11.2 million and $9.3 million as of September 30, 2022 and December 31, 2021, respectively, these escrow funds are not available for regular operations.

Summary of Cash Flows

A summary of our cash flows from operating, investing and financing activities are as follows:

	Nine Months Ended September 30,
	2022		2021
	In millions
Net cash provided by operating activities	$	30.2	$	65.1
Net cash used in investing activities		(139.1)		(170.7)
Net cash provided by financing activities		61.3		25.2
Net decrease in cash, cash equivalents and restricted cash		(47.6)		(80.4)
Cash, cash equivalents and restricted cash at beginning of the period		74.4		110.1
Cash, cash equivalents and restricted cash at end of the period	$	26.8	$	29.7

Cash Flows from Operating Activities

Cash flows provided by operating activities include net income, adjustments for non-cash items, changes in operating assets and liabilities and expenditures related to assets ultimately planned to be sold, including residential real estate development and related amenities, sales of timberlands or undeveloped and developed land and land developed by the commercial segment. Adjustments for non-cash items primarily include depreciation, depletion and amortization, unrealized (gain) loss on investments, net, equity in (income) loss from unconsolidated joint ventures, net of distributions, deferred income tax expense, cost of real estate sold and gain on contributions to unconsolidated joint ventures. Net cash provided by operations was $30.2 million during the nine months ended September 30, 2022, as compared to $65.1 million during the same period in 2021. The decrease in net cash provided by operating activities was primarily due to expenditures for and acquisition of real estate to be sold and the changes in deferred income tax expense, deferred revenue and other liabilities, partially offset by the changes in other assets during the period.

Cash Flows from Investing Activities

Cash flows used in investing activities primarily include capital expenditures for operating property and property and equipment used in our operations, purchases of investments and capital contributions to unconsolidated joint ventures, partially offset by proceeds from insurance claims, sales and maturities of investments, capital distributions from unconsolidated joint ventures and maturities of assets held by SPEs. During the nine months ended September 30, 2022, net cash used in investing activities was $139.1 million, which included capital expenditures for operating property and equipment, purchases of investments of U.S. Treasury Bills of $97.1 million and capital contributions to unconsolidated joint ventures of $2.5 million, partially offset by proceeds from insurance claims of $4.2 million, maturities of investments of $99.0 million, sales of investments of $13.2 million, capital distributions from unconsolidated joint venture of $3.2 million and maturities of assets held by SPEs of $0.8 million. During the nine months ended September 30, 2021, net cash used in investing activities was $170.7 million, which included capital expenditures for operating property and equipment, purchases of investments of U.S. Treasury Bills of $127.9 million, capital contributions to unconsolidated joint ventures of $9.2 million and payments for interest in unconsolidated joint venture of $0.5 million, partially offset by proceeds from insurance claims of $3.9 million, maturities of investments of $73.0 million, sales of investments of $1.5 million and maturities of assets held by SPEs of $0.8 million.

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Capital expenditures for operating property and property and equipment were $159.9 million and $112.3 million, during the nine months ended September 30, 2022 and 2021, respectively, which were primarily for our commercial and hospitality segments.

Cash Flows from Financing Activities

Net cash provided by financing activities during the nine months ended September 30, 2022 was $61.3 million, compared to $25.2 million during the same period in 2021. Net cash provided by financing activities during the nine months ended September 30, 2022 included capital contribution from non-controlling interest of $3.6 million and borrowings on debt of $119.0 million, partially offset by capital distributions to non-controlling interest of $2.2 million, repurchase of common shares of $20.0 million, dividends paid of $17.7 million, principal payments for debt of $19.5 million, principal payments for finance leases of $0.1 million and debt issuance costs of $1.8 million. Net cash provided by financing activities during the nine months ended September 30, 2021 included capital contribution from non-controlling interest of $3.2 million and borrowings on debt of $39.8 million, partially offset by capital distributions to non-controlling interest of $1.0 million, dividends paid of $14.1 million, principal payments for debt of $1.5 million, principal payments for finance leases of $0.1 million and debt issuance costs of $1.1 million.

Contractual Obligations

There were no material changes outside the ordinary course of our business in our contractual obligations during the third quarter of 2022.

Forward-Looking Statements

This quarterly report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements include, among other things, information about possible or assumed future results of the business and our financial condition, liquidity, results of operations, plans, strategies, prospects and objectives. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue” or other similar expressions concerning matters that are not historical facts.

We caution you that all forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors, including: the continuing recovery from the COVID-19 pandemic; our ability to successfully implement our strategic objectives; new or increased competition across our business units; any decline in general economic conditions, particularly in our primary markets; interest rate fluctuations; supply chain disruptions; inflation; geopolitical conflicts and political uncertainty and the corresponding impact on the global economy; our ability to successfully execute or integrate new business endeavors and acquisitions; our ability to yield anticipated returns from our developments and projects; our ability to effectively manage our real estate assets, as well as the ability for us or our joint venture partners to effectively manage the day-to-day activities of our joint venture projects; the illiquidity of all real estate assets; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of our investment portfolio; any potential negative impact of our longer-term property development strategy, including losses and negative cash flows for an extended period of time if we continue with the self-development of granted entitlements; our dependence on homebuilders; reductions in travel and other risks inherent to the hospitality industry; the financial condition of our commercial tenants; regulatory and insurance risks associated with our senior living facilities; public health emergencies; any reduction in the supply of mortgage loans or tightening of credit markets; our dependence on strong migration and population expansion in our regions of development, particularly Northwest Florida; our ability to fully recover from natural disasters and severe weather conditions, including the recovery of insurance claims for losses related to Hurricane Michael; the actual or perceived threat of climate change; the seasonality of our business; our ability to obtain adequate insurance for our properties or rising insurance costs; our dependence on certain third party providers; the inability of minority shareholders to influence corporate matters, due to concentrated ownership of largest shareholder; the impact of unfavorable legal proceedings or government investigations; the impact of complex and changing laws and regulations in the areas we operate; changes in

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tax rates, the adoption of new U.S. tax legislation, and exposure to additional tax liabilities, including with respect to Qualified Opportunity Zone program; new litigation; our ability to attract and retain qualified employees, particularly in our hospitality business; our ability to protect our information technology infrastructure and defend against cyber-attacks; increased media, political, and regulatory scrutiny could negatively impact our reputation; our ability to maintain adequate internal controls; risks associated with our financing arrangements, including our compliance with certain restrictions and limitations; our ability to pay our quarterly dividend; the potential volatility of our common stock; and the other risks and uncertainties discussed in “Risk Factors” beginning on page 6 of our most recent annual report on Form 10-K and from time to time in our subsequent filings with the SEC. We assume no obligation to revise or publicly released any revision to any forward-looking statements contained in this quarterly report on Form 10-Q unless required by law.

Item 3.         Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risks primarily from interest rate risk fluctuations. We have investments in U.S. Treasury Bills that have fixed interest rates for which changes in interest rates generally affect the fair value of the investment, but not the earnings or cash flows. A hypothetical 100 basis point increase in interest rates would result in a decrease of $0.3 million in the market value of these investments as of September 30, 2022. Any realized gain or loss resulting from such interest rate changes would only occur if we sold the investments prior to maturity or if a decline in their value is determined to be related to credit loss.

We have exposure to credit risk associated with our Securities and these instruments are subject to price fluctuations as a result of changes in the financial market’s assessment of issuer credit quality, increases in delinquency and default rates, changes in prevailing interest rates and other economic factors. A downgrade of the U.S. government’s credit rating may also decrease the value of our Securities. As of September 30, 2022, approximately 99% of our total Securities were rated AA or better.

Our cash and cash equivalents are invested in money market instruments. Changes in interest rates related to these investments would not significantly impact our results of operations. The amount of interest earned on one of our retained interest investments is based on LIBOR. A 100-basis point change in the interest rate may result in an insignificant change in interest earned on the investment.

The amount of interest expense on some of our project financing is based on LIBOR and SOFR. Based on the outstanding balance of these loans as of September 30, 2022, a hypothetical 100 basis point increase in the applicable rate would result in an increase to our annual interest expense of $1.9 million.

The United Kingdom's Financial Conduct Authority, which regulates LIBOR, has publicly announced that it intends to stop persuading or compelling banks to submit LIBOR rates and will cease publication of U.S. dollar LIBOR as of June 30, 2023, and U.S. regulators have issued supervisory guidance encouraging banks to cease entering into new contracts that use U.S. dollar LIBOR as a reference rate by December 31, 2021. Accordingly, LIBOR is expected to be discontinued in the near future. Many of our current debt agreements have an interest rate tied to LIBOR, but these agreements provide for an alternative base rate in the event that LIBOR is discontinued. There can be no assurances as to what alternative base rates may be and whether such base rate will be more or less favorable than LIBOR and any other unforeseen impacts of the potential discontinuation of LIBOR. We intend to continue monitoring the developments with respect to the potential phasing out of LIBOR and work with our lenders to ensure any transition away from LIBOR will have minimal impact on our financial condition.

Item 4.         Controls and Procedures

Evaluation of Disclosure Controls and Procedures. Our Chief Executive Officer and Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective.

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Changes in Internal Control Over Financial Reporting. During the quarter ended September 30, 2022, there were no changes in our internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

PART II - OTHER INFORMATION

Item 1.         Legal Proceedings

We are subject to a variety of litigation, claims, other disputes and governmental proceedings that arise from time to time in the ordinary course of our business, none of which we believe will have a material adverse effect on our consolidated financial position, results of operations or liquidity. In addition, we are subject to environmental laws and regulations, which include obligations to remove or limit the effects on the environment of the disposal or release of certain wastes or substances at various sites, including sites which have been previously sold. Refer to Note 19. Commitments and Contingencies, for further discussion.

Item 1A.         Risk Factors

A description of the risk factors associated with our business is contained in the “Risk Factors” section of our annual report on Form 10-K for the fiscal year ended December 31, 2021. There have been no material changes to our Risk Factors as previously reported.

Item 2.         Unregistered Sales of Equity Securities and Use of Proceeds

Our Board approved the Stock Repurchase Program pursuant to which we are authorized to repurchase shares of our common stock. The program has no expiration date.

As of September 30, 2022, we had a total authority of $80.0 million available for purchase of shares of our common stock. We may repurchase our common stock in open market purchases from time to time, in privately negotiated transactions or otherwise, pursuant to Rule 10b-18 under the Exchange Act. The timing and amount of any additional shares to be repurchased will depend upon a variety of factors. Repurchases may be commenced or suspended at any time or from time to time without prior notice. The Stock Repurchase Program will continue until otherwise modified or terminated by our Board at any time in its sole discretion.

The following table provides information regarding repurchases of our common stock during each of the three months in the quarter ended September 30, 2022:

				Total Number of Shares	Maximum Dollar Value of
				Purchased as Part of	Shares that May Yet Be
	Total Number of	Average Price		Publicly Announced	Purchased Under the
Period	Shares Purchased	Paid per Share		Plans or Programs	Plans or Programs
					In Millions
July 1-31, 2022	—	$	—	—	$	—
August 1-31, 2022	—		—	—		—
September 1-30, 2022	572,203		34.78	572,203		80.0
Total	572,203	$	34.78	572,203	$	80.0

Item 3.         Defaults upon Senior Securities

None.

Item 4.         Mine Safety Disclosures

Not applicable.

80

Item 5.         Other Information

None.

Item 6.         Exhibits

Index to Exhibits

Exhibit
Number	Description
3.1	Restated and Amended Articles of Incorporation of the registrant (incorporated by reference to Exhibit 3.1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2010).
3.2	Amended and Restated Bylaws of the registrant (incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed on March 4, 2011).
*31.1	Certification of Principal Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2	Certification of Principal Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
**32.1	Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
**32.2	Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*101.INS	Inline XBRL Instance Document.
*101.SCH	Inline XBRL Taxonomy Extension Schema Document.
*101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
*101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
*101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*     Filed herewith.

**   Furnished herewith.

81

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		THE ST. JOE COMPANY
		(Registrant)
Date:	October 26, 2022	/s/ Jorge Gonzalez
		Jorge Gonzalez
		President, Chief Executive Officer and Director
		(Principal Executive Officer)
Date:	October 26, 2022	/s/ Marek Bakun
		Marek Bakun
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

82

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Jorge Gonzalez, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2022 of The St. Joe Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 26, 2022

/s/ Jorge Gonzalez

Jorge Gonzalez

President, Chief Executive Officer and Director

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Marek Bakun, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the period ended September 30, 2022 of The St. Joe Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 26, 2022

/s/ Marek Bakun

Marek Bakun

Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to 18 USC §1350, the undersigned officer of The St. Joe Company (the “Company”) hereby certifies that the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jorge Gonzalez

Jorge Gonzalez

President, Chief Executive Officer and Director

Dated: October 26, 2022

EX-32.2

Exhibit 32.2

CERTIFICATION

Pursuant to 18 USC §1350, the undersigned officer of The St. Joe Company (the “Company”) hereby certifies that the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2022 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Marek Bakun

Marek Bakun

Executive Vice President and Chief Financial Officer

Dated: October 26, 2022

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 24, 2022
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	1-10466
Entity Registrant Name	The St. Joe Company
Entity Incorporation, State or Country Code	FL
Entity Tax Identification Number	59-0432511
Entity Address, Address Line One	130 Richard Jackson Boulevard
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	Panama City Beach
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32407
City Area Code	850
Local Phone Number	231-6400
Title of 12(b) Security	Common Stock
Trading Symbol	JOE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		58,335,541
Entity Central Index Key	0000745308
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Investment in real estate, net	$ 883,796	$ 690,113
Investment in unconsolidated joint ventures	58,865	52,027
Cash and cash equivalents	18,846	70,162
Investments - debt securities	74,033	88,956
Other assets	62,190	70,235
Property and equipment, net of accumulated depreciation of $64,666 and $64,251 as of September 30, 2022 and December 31, 2021, respectively	36,981	31,145
Investments held by special purpose entities	204,829	205,513
Total assets	1,339,540	1,208,151
Liabilities:
Debt, net	321,085	223,034
Other liabilities	83,338	67,985
Deferred revenue	39,311	36,207
Deferred tax liabilities, net	81,558	77,259
Senior Notes held by special purpose entity	177,783	177,566
Total liabilities	703,075	582,051
Commitments and contingencies (Note 19)
Equity:
Common stock, no par value; 180,000,000 shares authorized; 58,912,504 and 58,882,549 issued at September 30, 2022 and December 31, 2021, respectively; and 58,335,541 and 58,882,549 outstanding at September 30, 2022 and December 31, 2021, respectively	297,129	296,873
Retained earnings	336,049	310,925
Accumulated other comprehensive income (loss)	2,047	(389)
Treasury stock at cost, 576,963 shares held at September 30, 2022	(19,972)
Total stockholders' equity	615,253	607,409
Non-controlling interest	21,212	18,691
Total equity	636,465	626,100
Total liabilities and equity	$ 1,339,540	$ 1,208,151

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
CONDENSED CONSOLIDATED BALANCE SHEETS
Property and equipment, Accumulated depreciation	$ 64,666	$ 64,251
Common stock, par value	$ 0	$ 0
Common stock, shares authorized (in shares)	180,000,000	180,000,000
Common stock, issued (in shares)	58,912,504	58,882,549
Common stock, outstanding (in shares)	58,335,541	58,882,549
Treasury stock (shares)	576,963

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - VIEs - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Investment in real estate	$ 883,796	$ 690,113
Cash and cash equivalents	18,846	70,162
Other assets	62,190	70,235
Investments held by special purpose entities	204,829	205,513
Total assets	1,339,540	1,208,151
LIABILITIES
Debt, net	321,085	223,034
Other liabilities	83,338	67,985
Deferred revenue	39,311	36,207
Senior Notes held by special purpose entity	177,783	177,566
Total liabilities	703,075	582,051
Variable Interest Entity, Primary Beneficiary
ASSETS
Investment in real estate	257,697	206,565
Cash and cash equivalents	7,539	10,564
Other assets	22,942	17,392
Investments held by special purpose entities	204,829	205,513
Total assets	493,007	440,034
LIABILITIES
Debt, net	226,893	173,531
Other liabilities	17,868	17,602
Deferred revenue	310	234
Senior Notes held by special purpose entity	177,783	177,566
Total liabilities	$ 422,854	$ 368,933

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue:
Leasing revenue	$ 10,049	$ 7,146	$ 28,215	$ 19,112
Total revenue	57,576	53,996	190,697	167,540
Expenses:
Corporate and other operating expenses	5,322	4,987	16,493	17,161
Depreciation, depletion and amortization	5,771	4,617	16,263	12,594
Total expenses	45,399	37,835	139,491	115,090
Operating income (loss)	12,177	16,161	51,206	52,450
Other income (expense):
Investment income, net	2,735	2,331	7,531	4,813
Interest expense	(4,727)	(4,114)	(12,951)	(11,639)
Gain on contributions to unconsolidated joint ventures	1,430		2,001	3,290
Other income, net	2,128	7,329	6,045	9,595
Total other (expense) income, net	1,566	5,546	2,626	6,059
Income before equity in income (loss) from unconsolidated joint ventures and income taxes	13,743	21,707	53,832	58,509
Equity in income (loss) from unconsolidated joint ventures	2,481	(501)	3,415	(1,570)
Income tax expense	(4,163)	(6,429)	(14,643)	(15,180)
Net income (loss)	12,061	14,777	42,604	41,759
Net loss attributable to non-controlling interest	286	419	194	857
Net income attributable to the Company	$ 12,347	$ 15,196	$ 42,798	$ 42,616
NET INCOME PER SHARE ATTRIBUTABLE TO THE COMPANY
Basic (in dollars per share)	$ 0.21	$ 0.26	$ 0.73	$ 0.72
Diluted (in dollars per share)	$ 0.21	$ 0.26	$ 0.73	$ 0.72
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic (in shares)	58,814,972	58,882,549	58,859,723	58,882,549
Diluted (in shares)	58,814,972	58,882,549	58,861,440	58,882,549
Real Estate
Revenue:
Revenue	$ 17,330	$ 23,500	$ 82,132	$ 85,615
Expenses:
Cost of revenue	7,229	8,471	35,324	33,067
Hospitality
Revenue:
Revenue	29,035	22,292	74,912	57,986
Expenses:
Cost of revenue	21,959	16,536	58,238	43,469
Leasing
Expenses:
Cost of revenue	4,946	3,106	12,596	8,297
Timber
Revenue:
Revenue	1,162	1,058	5,438	4,827
Expenses:
Cost of revenue	$ 172	$ 118	$ 577	$ 502

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 12,061	$ 14,777	$ 42,604	$ 41,759
Other comprehensive (loss) income:
Net unrealized (loss) gain on available-for-sale investments	(31)	3	(686)	(1)
Interest rate swap	1,427	301	4,540	410
Interest rate swap - unconsolidated affiliate	307	(1)	615	133
Reclassification of net realized loss included in earnings	15	154	150	251
Total before income taxes	1,718	457	4,619	793
Income tax expense	(327)	(116)	(828)	(201)
Total other comprehensive income, net of tax	1,391	341	3,791	592
Total comprehensive income, net of tax	13,452	15,118	46,395	42,351
Total comprehensive (income) loss attributable to non-controlling interest	(142)	419	(1,161)	857
Total comprehensive income attributable to the Company	$ 13,310	$ 15,537	$ 45,234	$ 43,208

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Treasury Stock	Non-controlling Interest	Total
Beginning Balance at Dec. 31, 2020	$ 296,873	$ 255,216	$ (1,472)		$ 17,553	$ 568,170
Beginning Balance (in shares) at Dec. 31, 2020	58,882,549
Increase (Decrease) in Stockholders' Equity
Capital contributions from non-controlling interest					3,188	3,188
Capital distributions to non-controlling interest					(958)	(958)
Repurchase of common shares (in shares)	0
Dividends		(14,133)				(14,133)
Other comprehensive income, net of tax			592			592
Net income		42,616			(857)	41,759
Ending Balance at Sep. 30, 2021	$ 296,873	283,699	(880)		18,926	598,618
Ending Balance (in shares) at Sep. 30, 2021	58,882,549
Beginning Balance at Jun. 30, 2021	$ 296,873	273,214	(1,221)		19,649	588,515
Beginning Balance (in shares) at Jun. 30, 2021	58,882,549
Increase (Decrease) in Stockholders' Equity
Capital distributions to non-controlling interest					(304)	(304)
Repurchase of common shares (in shares)	0
Dividends		(4,711)				(4,711)
Other comprehensive income, net of tax			341			341
Net income		15,196			(419)	14,777
Ending Balance at Sep. 30, 2021	$ 296,873	283,699	(880)		18,926	598,618
Ending Balance (in shares) at Sep. 30, 2021	58,882,549
Beginning Balance at Dec. 31, 2021	$ 296,873	310,925	(389)		18,691	$ 626,100
Beginning Balance (in shares) at Dec. 31, 2021	58,882,549					58,882,549
Increase (Decrease) in Stockholders' Equity
Capital contributions from non-controlling interest					3,613	$ 3,613
Capital distributions to non-controlling interest					(2,253)	(2,253)
Issuance of restricted stock (in shares)	29,955
Stock based compensation expense	$ 256					256
Repurchase of common shares				$ (19,972)		(19,972)
Repurchase of common shares (in shares)	(576,963)
Dividends		(17,674)				(17,674)
Other comprehensive income, net of tax			2,436		1,355	3,791
Net income		42,798			(194)	42,604
Ending Balance at Sep. 30, 2022	$ 297,129	336,049	2,047	(19,972)	21,212	$ 636,465
Ending Balance (in shares) at Sep. 30, 2022	58,335,541					58,335,541
Beginning Balance at Jun. 30, 2022	$ 297,021	329,593	1,084	(180)	19,922	$ 647,440
Beginning Balance (in shares) at Jun. 30, 2022	58,907,744
Increase (Decrease) in Stockholders' Equity
Capital contributions from non-controlling interest					1,579	1,579
Capital distributions to non-controlling interest					(431)	(431)
Stock based compensation expense	$ 108					108
Repurchase of common shares				(19,792)		(19,792)
Repurchase of common shares (in shares)	(572,203)
Dividends		(5,891)				(5,891)
Other comprehensive income, net of tax			963		428	1,391
Net income		12,347			(286)	12,061
Ending Balance at Sep. 30, 2022	$ 297,129	$ 336,049	$ 2,047	$ (19,972)	$ 21,212	$ 636,465
Ending Balance (in shares) at Sep. 30, 2022	58,335,541					58,335,541

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Dividends (in dollars per share)	$ 0.10	$ 0.08	$ 0.30	$ 0.24

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities:
Net income	$ 42,604	$ 41,759
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	16,263	12,594
Stock based compensation	256
Gain on sale of investments		(17)
Unrealized (gain) loss on investments, net	(91)	1,947
Equity in (income) loss from unconsolidated joint ventures, net of distributions	(3,114)	1,770
Deferred income tax expense	3,471	11,464
Cost of real estate sold	32,564	30,105
Expenditures for and acquisition of real estate to be sold	(69,699)	(28,288)
Accretion income and other	(1,069)	(614)
Loss on disposal of property and equipment	181	270
Gain on contributions to unconsolidated joint ventures	(2,001)	(3,290)
Gain on insurance for damage to property and equipment, net	(4,186)	(3,924)
Loss on extinguishment of debt	130
Changes in operating assets and liabilities:
Other assets	15,755	(6,186)
Deferred revenue	3,039	7,337
Other liabilities	(3,845)	206
Net cash provided by operating activities	30,258	65,133
Cash flows from investing activities:
Expenditures for operating property	(156,478)	(109,215)
Expenditures for property and equipment	(3,384)	(3,135)
Proceeds from the disposition of assets	17	34
Proceeds from insurance claims	4,186	3,924
Purchases of investments - debt securities	(97,133)	(127,958)
Maturities of investments - debt securities	99,000	73,000
Sales of investments - debt securities	12,980	36
Sales of investments - equity securities	207	325
Sales of restricted investments		1,173
Capital contributions to unconsolidated joint ventures	(2,505)	(9,213)
Capital distributions from unconsolidated joint ventures	3,203
Payments for interest in unconsolidated joint venture		(495)
Maturities of assets held by special purpose entities	785	788
Net cash used in investing activities	(139,122)	(170,736)
Cash flows from financing activities:
Capital contributions from non-controlling interest	3,613	3,188
Capital distributions to non-controlling interest	(2,253)	(958)
Repurchase of common shares	(19,972)
Dividends paid	(17,666)	(14,133)
Borrowings on debt	119,043	39,812
Principal payments for debt	(19,535)	(1,536)
Principal payments for finance leases	(89)	(75)
Debt issuance costs	(1,876)	(1,087)
Net cash provided by financing activities	61,265	25,211
Net decrease in cash, cash equivalents and restricted cash	(47,599)	(80,392)
Cash, cash equivalents and restricted cash at beginning of the year	74,400	110,119
Cash, cash equivalents and restricted cash at end of the year	$ 26,801	$ 29,727

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash, cash equivalents and restricted cash:
Cash and cash equivalents	$ 18,846	$ 27,260
Restricted cash included in other assets	$ 7,955	$ 2,467
Restricted Cash and Cash Equivalents, Statement of Financial Position	Other assets	Other assets
Total cash, cash equivalents and restricted cash shown in the accompanying consolidated statements of cash flows	$ 26,801	$ 29,727
Cash paid during the period for:
Interest, net of amounts capitalized	14,260	11,949
Income taxes	13,411	6,570
Non-cash investing and financing activities:
Non-cash contributions to unconsolidated joint venture	(3,707)	(4,616)
Decrease in Community Development District debt	(177)	(800)
Transfers of operating property to property and equipment	8,671	12,711
Increase in expenditures for operating properties and property and equipment financed through accounts payable	12,302	10,277
Unrealized gain on cash flow hedges	$ 5,155	$ 543

XML

Nature of Operations

9 Months Ended

Sep. 30, 2022

Nature of Operations

Nature of Operations

1. Nature of Operations

The St. Joe Company together with its consolidated subsidiaries (“St. Joe” or the “Company”) is a Florida real estate development, asset management and operating company with all of its real estate assets and operations in Northwest Florida. Approximately 86% of the Company’s real estate is located in Florida’s Bay, Gulf, and Walton counties. Approximately 90% of the Company’s real estate land holdings are located within fifteen miles of the Gulf of Mexico.

The Company conducts primarily all of its business in the following three reportable segments: 1) residential, 2) hospitality and 3) commercial. See Note 18. Segment Information.

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2022

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its majority-owned and controlled subsidiaries, voting interest entities where the Company has a majority voting interest or control and variable interest entities where the Company deems itself the primary beneficiary. Investments in joint ventures (“JV”) and limited partnerships in which the Company is not the primary beneficiary, or a voting interest entity where the Company does not have a majority voting interest or control, are accounted for by the equity method. All significant intercompany transactions and balances have been eliminated in consolidation. The December 31, 2021 condensed consolidated balance sheet amounts have been derived from the Company’s December 31, 2021 audited consolidated financial statements. Certain prior period amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on the Company’s previously reported total assets and liabilities, stockholders’ equity or net income. Operating results for the nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022.

A variable interest entity (“VIE”) is an entity in which a controlling financial interest may be achieved through arrangements that do not involve voting interests. A VIE is required to be consolidated by its primary beneficiary, which is the entity that possesses the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to the VIE. The Company consolidates VIEs when it is the primary beneficiary of the VIE, including real estate JVs determined to be VIEs. The Company continues to evaluate whether it is the primary beneficiary as needed when assessing reconsideration events. See Note 4. Joint Ventures.

The unaudited interim condensed consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for fair presentation of the information contained herein. The unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The Company adheres to the same accounting policies in preparation of its unaudited interim condensed consolidated financial statements as the Company’s December 31, 2021 annual financial statements, except for any recently adopted accounting pronouncements. As required under GAAP, interim accounting for certain expenses, including income taxes, are based on full year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual income tax rates.

Concentration of Risks and Uncertainties

All of the Company’s real estate investments are concentrated in Northwest Florida. Uncertain economic conditions could have an adverse impact on the Company’s operations and asset values.

Throughout the first nine months of 2022, the Company continued to generate positive financial results. While macro-economic factors such as inflation, rising interest rates, supply chain disruptions, geopolitical conflicts and the continuing recovery from the COVID-19 pandemic, among other things, have created economic headwinds and impacted buyer sentiment, demand across the Company’s segments remains strong. The Company believes this is primarily the result of the continued growth of Northwest Florida, which the Company attributes to the region’s high quality of life, natural beauty and outstanding amenities, as well as the evolving flexibility in the workplace.

Despite the strong demand across the Company’s segments, the Company also continues to feel the impact from the aforementioned macro-economic factors, including supply chain disruptions and cost increases, which, for example, have extended homesite and home deliveries in certain residential communities and increased operating costs. However, these delays generally have not resulted in increased cancellation rates, and therefore only impact the timing of revenue recognition. In addition, given the diverse portfolio of residential holdings, the mix of sales from different communities may impact revenue and margins period over period.

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investments, other receivables, investments held by special purpose entity or entities (“SPE”) and investments in retained interests. The Company deposits and invests cash with local, regional and national financial institutions, and as of September 30, 2022, these balances exceeded the amount of F.D.I.C. insurance provided on such deposits. In addition, as of September 30, 2022 the Company had $1.1 million invested in U.S. Treasury Money Market Funds, $74.0 million invested in U.S. Treasury Bills classified as investments – debt securities, and $0.3 million invested in two issuers of preferred stock that are non-investment grade.

Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the Company by the basic weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income attributable to the Company by the weighted average number of shares of common stock outstanding for the period, including potential dilutive common shares. The treasury stock method is used to determine the effect on diluted earnings. For each the three and nine months ended September 30, 2022, the Company had 29,955 unvested shares of restricted stock. For the three months ended September 30, 2022, 29,955 potentially dilutive common shares were excluded from the calculation of diluted income per share, since the effect would have been anti-dilutive based on the application of the treasury stock method. As of September 30, 2021, there were no outstanding common stock equivalents. For the three and nine months ended September 30, 2021, the Company did not have any potential dilutive instruments, therefore, basic and diluted weighted average shares outstanding were equal. See Note 15. Stockholders’ Equity for additional information related to the issuance of common stock for employee compensation.

The computation of basic and diluted earnings per share are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands except per share amounts)
Income
Net income attributable to the Company	$	12,347	$	15,196	$	42,798	$	42,616
Shares
Weighted average shares outstanding - basic		58,814,972		58,882,549		58,859,723		58,882,549
Incremental shares from restricted stock		—		—		1,717		—
Weighted average shares outstanding - diluted		58,814,972		58,882,549		58,861,440		58,882,549
Net income per share attributable to the Company
Basic income per share	$	0.21	$	0.26	$	0.73	$	0.72
Diluted income per share	$	0.21	$	0.26	$	0.73	$	0.72

Recently Adopted Accounting Pronouncements

There were no recently adopted accounting pronouncements which would have a material effect on the Company’s financial condition, results of operations and cash flows.

Recently Issued Accounting Pronouncements

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting that provides temporary optional guidance to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The new guidance provides expedients and exceptions for applying GAAP to contract modifications and hedging relationships affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or another reference rate that is expected to be discontinued due to reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) which clarifies the original guidance that certain optional expedients and exceptions in contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This new guidance was effective upon issuance and may be applied prospectively through December 31, 2022, as reference rate activities occur. In June 2022, one of the Company’s debt agreements that referenced LIBOR was amended to an alternative rate, ASU 2020-04 was applied at the time of this modification and there was no impact on the Company’s financial condition, results of operations and cash flows. See Note 10. Debt, Net for additional information. There is no current additional impact to the Company from this guidance and the Company will consider the impact on its financial condition, results of operations and cash flows if there are additional modifications to existing agreements.

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Investment in Real Estate

9 Months Ended

Sep. 30, 2022

Investment in Real Estate

Investment in Real Estate

3. Investment in Real Estate

Real estate, excluding unconsolidated JVs, by property type and segment includes the following:

	September 30,		December 31,
	2022		2021
Development property:
Residential	$	153,299	$	122,404
Hospitality		187,406		137,089
Commercial		123,059		85,931
Other		3,451		3,232
Total development property		467,215		348,656
Operating property:
Residential		7,854		7,854
Hospitality		161,439		124,449
Commercial		339,096		296,193
Other		127		127
Total operating property		508,516		428,623
Less: Accumulated depreciation		91,935		87,166
Total operating property, net		416,581		341,457
Investment in real estate, net	$	883,796	$	690,113

Investment in real estate is carried at cost, net of depreciation and timber depletion, unless circumstances indicate that the carrying value of the assets may not be recoverable.

Development property consists of land the Company is developing or intends to develop for sale or future operations and includes direct costs associated with the land, as well as development, construction and indirect costs. Residential development property includes existing and planned residential homesites and related infrastructure. Hospitality development property consists of land, improvements and construction and development costs primarily related to uncompleted hotels, resorts, club amenities and a marina. Commercial development property primarily consists of land and construction and development costs for planned commercial, multi-family and industrial uses. Development property in the hospitality and commercial segments will be reclassified as operating property as it is placed into service.

Operating property includes property that the Company uses for operations and activities. Residential operating property consists primarily of residential utility assets and certain rental properties. Hospitality operating property primarily consists of existing hotels, resorts, clubs, vacation rentals, a marina and other operations. Commercial operating property includes property developed or purchased by the Company and used for retail, office, self-storage, light industrial, multi-family, senior living, commercial rental, vacation rental and timber purposes. Operating property may be sold in the future as part of the Company’s principal real estate business. As of September 30, 2022 and December 31, 2021, operating property, net related to operating leases was $260.0 million and $230.0 million, respectively.

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Joint Ventures

9 Months Ended

Sep. 30, 2022

Joint Ventures

Joint Ventures

4. Joint Ventures

The Company enters into JVs, from time to time, for the purpose of developing real estate and other business activities in which the Company may or may not have a controlling financial interest. GAAP requires consolidation of voting interest entities where the Company has a majority voting interest or control and VIEs in which an enterprise has a controlling financial interest and is the primary beneficiary. A controlling financial interest will have both of the following characteristics: (i) the power to direct the VIE activities that most significantly impact economic performance and (ii) the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company examines specific criteria and uses judgment when determining whether the Company is the primary beneficiary and must consolidate a VIE. The Company continues to evaluate whether it is the primary

beneficiary as needed when assessing reconsideration events. Investments in JVs and limited partnerships in which the Company is not the primary beneficiary, or a voting interest entity where the Company does not have a majority voting interest or control, are accounted for by the equity method.

The timing of cash flows for additional required capital contributions related to the Company’s JVs varies by agreement. Some of the Company’s consolidated and unconsolidated JVs have entered into financing agreements where the Company or its JV partners have provided guarantees. See Note 9. Other Assets, Note 10. Debt, Net and Note 19. Commitments and Contingencies for additional information.

Consolidated Joint Ventures

Mexico Beach Crossings JV

Mexico Beach Crossings JV was formed in January 2022, when the Company entered into a JV agreement to develop, manage and lease apartments in Mexico Beach, Florida. The JV parties are working together to develop and construct the 216-unit apartment community. The community is located on land that was contributed to the JV by the Company. As of September 30, 2022, the Company owned a 75.0% interest in the consolidated JV. The Company’s partner is currently responsible for the construction activities of the JV, but once operational, Watersound Management, LLC (“Watersound Management JV”), the Company’s unconsolidated JV, will be responsible for the day-to-day activities of the JV. The Company approves all major decisions, including project development, annual budgets and financing. The Company determined Mexico Beach Crossings JV is a voting interest entity and that the Company has a majority voting interest as of September 30, 2022.

The Lodge 30A JV

The Lodge 30A JV was formed in July 2020, when the Company entered into a JV agreement to develop and operate a boutique hotel on Scenic County Highway 30A in Seagrove Beach, Florida. The JV parties are working together to develop and construct the 85-room hotel. As of September 30, 2022 and December 31, 2021, the Company owned a 52.8% interest in the consolidated JV. The Company’s partner is currently responsible for the construction activities of the JV, but once operational, a wholly-owned subsidiary of the Company will manage the day-to-day operations of the hotel. The Company has significant involvement in the project design and development and approves all major decisions, including annual budgets and financing. The Company determined The Lodge 30A JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Pier Park Resort Hotel JV

Pier Park Resort Hotel JV was formed in April 2020, when the Company entered into a JV agreement to develop and operate an Embassy Suites by Hilton hotel in the Pier Park area of Panama City Beach, Florida. The JV parties are working together to develop and construct the 255-room hotel. As of September 30, 2022 and December 31, 2021, the Company owned a 70.0% interest in the consolidated JV. The Company’s partner is currently responsible for the construction activities of the JV, but once operational, a wholly-owned subsidiary of the Company will manage the day-to-day operations of the hotel. The Company has significant involvement in the project design and development, annual budgets and financing. The Company determined Pier Park Resort Hotel JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Pier Park Crossings Phase II JV

Pier Park Crossings Phase II JV was formed in 2019, when the Company entered into a JV agreement to develop, manage and lease a 120-unit apartment community in the Pier Park area of Panama City Beach, Florida. As of September 30, 2022 and December 31, 2021, the Company owned a 75.0% interest in the consolidated JV. The Company’s unconsolidated Watersound Management JV is responsible for the day-to-day activities of the JV. The Company approves all major decisions, including project development, annual budgets and financing. The Company determined Pier Park Crossings Phase II JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Watersound Closings JV

Watersound Closings JV was formed in 2019, when the Company entered into a JV agreement to own, operate and manage a real estate title insurance agency business. As of September 30, 2022 and December 31, 2021, the Company owned a 58.0% interest in the consolidated JV. A wholly-owned subsidiary of the Company is the managing member of Watersound Closings JV and is responsible for the day-to-day activities of the business. As the manager of the JV, as well as the majority member, the Company has the power to direct all of the activities of the JV that most significantly impact economic performance. The Company determined Watersound Closings JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Watercrest JV

Watercrest JV was formed in 2019, when the Company entered into a JV agreement to develop and operate a 107-unit senior living community in Santa Rosa Beach, Florida. As of September 30, 2022 and December 31, 2021, the Company owned an 87.0% interest in the consolidated JV. A wholly-owned subsidiary of the Company’s JV partner is responsible for the day-to-day activities of the community. However, the Company approves all major decisions, including project development, annual budgets and financing. The Company determined Watercrest JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Watersound Origins Crossings JV

Watersound Origins Crossings JV was formed in 2019, when the Company entered into a JV agreement to develop, manage and lease apartments near the entrance to the Watersound Origins residential community. Construction of the 217-unit apartment community was completed in the fourth quarter of 2021. As of September 30, 2022 and December 31, 2021, the Company owned a 75.0% interest in the consolidated JV. The Company’s unconsolidated Watersound Management JV is responsible for the day-to-day activities of the community. The Company approves all major decisions, including project development, annual budgets and financing. The Company determined Watersound Origins Crossings JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Pier Park Crossings JV

Pier Park Crossings JV was formed in 2017, when the Company entered into a JV agreement to develop, manage and lease a 240-unit apartment community in the Pier Park area of Panama City Beach, Florida. As of September 30, 2022 and December 31, 2021, the Company owned a 75.0% interest in the consolidated JV. The Company’s unconsolidated Watersound Management JV is responsible for the day-to-day activities of the community. The Company approves all major decisions, including project development, annual budgets and financing. The Company determined Pier Park Crossings JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Pier Park North JV

During 2012, the Company entered into a JV agreement with a partner to develop a retail center at Pier Park North. As of September 30, 2022 and December 31, 2021, the Company owned a 60.0% interest in the consolidated JV. A wholly-owned subsidiary of the Company’s JV partner is responsible for the day-to-day activities of the retail center. However, the Company approves all major decisions, including project development, annual budgets and financing. The Company determined the Pier Park North JV is a VIE and that the Company is the VIE’s primary beneficiary as of September 30, 2022 and December 31, 2021.

Unconsolidated Joint Ventures

Investment in unconsolidated joint ventures includes the Company’s investment accounted for using the equity method. The following table presents detail of the Company’s investment in unconsolidated joint ventures and total outstanding debt of unconsolidated JVs:

	September 30,		December 31,
	2022		2021
Investment in unconsolidated joint ventures
Latitude Margaritaville Watersound JV	$	32,468	$	30,040
Sea Sound JV		9,454		10,333
Watersound Fountains Independent Living JV		7,508		7,508
Pier Park TPS JV		1,714		1,961
Pier Park RI JV (a)		4,263		—
Busy Bee JV		2,238		1,621
Electric Cart Watersound JV (b)		682		—
Watersound Management JV		538		564
Total investment in unconsolidated joint ventures	$	58,865	$	52,027
Outstanding debt of unconsolidated JVs
Latitude Margaritaville Watersound JV (c) (d)	$	11,795	$	7,147
Sea Sound JV		38,742		35,047
Watersound Fountains Independent Living JV (d)		18,755		66
Pier Park TPS JV (d)		13,898		14,124
Busy Bee JV		6,088		6,317
Electric Cart Watersound JV (d)		634		—
Total outstanding debt of unconsolidated JVs	$	89,912	$	62,701

(a) JV was formed in May 2022.

(b) JV was formed in February 2022.

(c) See Note 9. Other Assets for additional information on the $10.0 million secured revolving promissory note the Company entered into with the unconsolidated Latitude Margaritaville Watersound JV.

(d) See Note 19. Commitments and Contingencies for additional information.

The Company's maximum exposure to loss due to involvement in the unconsolidated joint ventures as of September 30, 2022 was $86.9 million, which includes the carrying amounts of the investments, guarantees, promissory note receivable, other receivables, contribution requirements and derivative instruments.

The following table presents detail of the Company’s equity in income (loss) from unconsolidated JVs:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Equity in income (loss) from unconsolidated joint ventures
Latitude Margaritaville Watersound JV	$	2,181	$	(896)	$	2,504	$	(2,497)
Sea Sound JV		(59)		(71)		21		(104)
Pier Park TPS JV		114		279		217		651
Busy Bee JV		210		180		617		372
Electric Cart Watersound JV (a)		17		—		(3)		—
Watersound Management JV		18		7		59		8
Total equity in income (loss) from unconsolidated joint ventures	$	2,481	$	(501)	$	3,415	$	(1,570)

(a) JV was formed in February 2022.

Summarized balance sheets for the Company’s unconsolidated JVs are as follows:

	September 30, 2022
	Latitude Margaritaville Watersound JV			Sea Sound JV		Watersound Fountains Independent Living JV		Pier Park TPS JV		Pier Park RI JV		Busy Bee JV		Electric Cart Watersound JV		Watersound Management JV		Total
ASSETS
Investment in real estate	$	110,144	(a)	$	53,224	$	34,691	$	15,468	$	5,580	$	7,705	$	1,630	$	—	$	228,442
Cash and cash equivalents		4,185			1,508		279		1,092		2,953		1,231		232		87		11,567
Other assets		2,425			451		8		734		—		2,006		295		—		5,919
Total assets	$	116,754		$	55,183	$	34,978	$	17,294	$	8,533	$	10,942	$	2,157	$	87	$	245,928
LIABILITIES AND EQUITY
Debt, net	$	11,610		$	38,676	$	18,133	$	13,615	$	—	$	6,042	$	553	$	—	$	88,629
Other liabilities		74,785			713		2,889		251		7		424		267		—		79,336
Equity		30,359			15,794		13,956		3,428		8,526		4,476		1,337		87		77,963
Total liabilities and equity	$	116,754		$	55,183	$	34,978	$	17,294	$	8,533	$	10,942	$	2,157	$	87	$	245,928

(a) Investment in real estate includes the land contributed to the Latitude Margaritaville Watersound JV at the Company’s historical cost basis and additional completed infrastructure improvements.

	December 31, 2021
	Latitude Margaritaville Watersound JV			Sea Sound JV		Watersound Fountains Independent Living JV		Pier Park TPS JV		Pier Park RI JV (b)		Busy Bee JV		Electric Cart Watersound JV (c)		Watersound Management JV		Total
ASSETS
Investment in real estate	$	54,034	(a)	$	53,775	$	17,003	$	16,561	$	—	$	8,005	$	—	$	—	$	149,378
Cash and cash equivalents		12,541			760		240		1,913		—		855		—		138		16,447
Other assets		1,761			210		187		433		—		1,044		—		—		3,635
Total assets	$	68,336		$	54,745	$	17,430	$	18,907	$	—	$	9,904	$	—	$	138	$	169,460
LIABILITIES AND EQUITY
Debt, net	$	7,147		$	34,834	$	66	$	13,839	$	—	$	6,256	$	—	$	—	$	62,142
Other liabilities		36,419			2,653		3,408		1,147		—		405		—		—		44,032
Equity		24,770			17,258		13,956		3,921		—		3,243		—		138		63,286
Total liabilities and equity	$	68,336		$	54,745	$	17,430	$	18,907	$	—	$	9,904	$	—	$	138	$	169,460

(a) Investment in real estate includes the land contributed to the Latitude Margaritaville Watersound JV at the Company’s historical cost basis and additional completed infrastructure improvements.

(b) JV was formed in May 2022.

(c) JV was formed in February 2022.

Summarized statements of operations for the Company’s unconsolidated JVs are as follows:

	Three Months Ended September 30, 2022
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (a)		Busy Bee JV		Electric Cart Watersound JV		Watersound Management JV			Total
Total revenue	$	50,784	$	1,614	$	—	$	1,664	$	—	$	5,090	$	226	$	320	$	59,698
Expenses:
Cost of revenue		42,928		694		—		884		—		4,799		189		283		49,777
Other operating expenses		3,561		—		—		—		—		—		4		—		3,565
Depreciation and amortization		79		546		—		362		—		115		—		—		1,102
Total expenses		46,568		1,240		—		1,246		—		4,914		193		283		54,444
Operating income		4,216		374		—		418		—		176		33		37		5,254
Other (expense) income:
Interest expense		(56)		(470)		—		(189)		—		(41)		—		—		(756)
Other income (expense), net		4		(2)		—		7		—		293		—		—		302
Total other (expense) income		(52)		(472)		—		(182)		—		252		—		—		(454)
Net income (loss)	$	4,164	$	(98)	$	—	$	236	$	—	$	428	$	33	$	37	$	4,800

(a) The project is under construction with no income or loss for the three months ended September 30, 2022.

	Three Months Ended September 30, 2021
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (b)		Busy Bee JV		Electric Cart Watersound JV (c)		Watersound Management JV		Total
Total revenue	$	—	$	143	$	—	$	2,252	$	—	$	4,918	$	—	$	201	$	7,514
Expenses:
Cost of revenue		—		147		—		902		—		4,386		—		187		5,622
Other operating expenses		1,572		—		—		—		—		—		—		—		1,572
Depreciation and amortization		75		75		—		358		—		116		—		—		624
Total expenses		1,647		222		—		1,260		—		4,502		—		187		7,818
Operating (loss) income		(1,647)		(79)		—		992		—		416		—		14		(304)
Other expense:
Interest expense		(40)		(45)		—		(193)		—		(48)		—		—		(326)
Other income (expense), net		—		—		—		1		—		(51)		—		—		(50)
Total other expense		(40)		(45)		—		(192)		—		(99)		—		—		(376)
Net (loss) income	$	(1,687)	$	(124)	$	—	$	800	$	—	$	317	$	—	$	14	$	(680)

(a) The project was under construction with no income or loss for the three months ended September 30, 2021.

(b) The JV was formed in May 2022.

(c) The JV was formed in February 2022.

	Nine Months Ended September 30, 2022
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (a)		Busy Bee JV		Electric Cart Watersound JV		Watersound Management JV			Total
Total revenue	$	82,528	$	4,312	$	—	$	4,577	$	—	$	14,399	$	226	$	864	$	106,906
Expenses:
Cost of revenue		68,468		1,629		—		2,501		—		13,661		218		746		87,223
Other operating expenses		8,949		—		—		—		—		—		13		—		8,962
Depreciation and amortization		229		1,509		—		1,087		—		344		—		—		3,169
Total expenses		77,646		3,138		—		3,588		—		14,005		231		746		99,354
Operating income (loss)		4,882		1,174		—		989		—		394		(5)		118		7,552
Other (expense) income:
Interest expense		(166)		(1,131)		—		(566)		—		(132)		—		—		(1,995)
Other income (expense), net		4		(7)		—		11		—		995		—		—		1,003
Total other (expense) income		(162)		(1,138)		—		(555)		—		863		—		—		(992)
Net income (loss)	$	4,720	$	36	$	—	$	434	$	—	$	1,257	$	(5)	$	118	$	6,560

(a) The project is under construction with no income or loss for the nine months ended September 30, 2022.

	Nine Months Ended September 30, 2021
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (b)		Busy Bee JV		Electric Cart Watersound JV (c)		Watersound Management JV		Total
Total revenue	$	—	$	164	$	—	$	5,473	$	—	$	12,452	$	—	$	263	$	18,352
Expenses:
Cost of revenue		—		217		—		2,311		—		11,365		—		247		14,140
Other operating expenses		4,508		—		—		—		—		—		—		—		4,508
Depreciation and amortization		135		76		—		1,075		—		347		—		—		1,633
Total expenses		4,643		293		—		3,386		—		11,712		—		247		20,281
Operating (loss) income		(4,643)		(129)		—		2,087		—		740		—		16		(1,929)
Other (expense) income:
Interest expense		(120)		(45)		—		(546)		—		(145)		—		—		(856)
Other income, net		—		—		—		4		—		205		—		—		209
Total other (expense) income		(120)		(45)		—		(542)		—		60		—		—		(647)
Net (loss) income	$	(4,763)	$	(174)	$	—	$	1,545	$	—	$	800	$	—	$	16	$	(2,576)

(a) The project was under construction with no income or loss for the nine months ended September 30, 2021.

(b) The JV was formed in May 2022.

(c) The JV was formed in February 2022.

Latitude Margaritaville Watersound JV

LMWS, LLC (“Latitude Margaritaville Watersound JV”) was formed in 2019, when the Company entered into a JV agreement to develop a 55+ active adult residential community in Bay County, Florida. Construction is underway on customer homes and town center amenities. As of September 30, 2022, the Latitude Margaritaville Watersound JV had 641 homes under contract and has completed 247 home sale transactions of the total estimated 3,500 homes in the community. The community is located on land that was contributed to the JV by the Company in June 2020. As part of the land contribution, the Company agreed to make certain infrastructure improvements, such that the total contractual value of the land and its improvements total $35.0 million. As of September 30, 2022 and December 31, 2021, the Company’s investment in the unconsolidated Latitude Margaritaville Watersound JV was $32.5 million and $30.0 million, respectively, which includes the net present value of the land contribution, cash contributions, additional completed infrastructure improvements, equity in income and return of land contribution. The initial present value of the land contribution of $16.6 million, was based on the Company’s best estimate of the prevailing market rates for the source of credit using an imputed interest rate of 5.8% and timing of home sales. The Company continues to have a performance obligation to provide agreed upon infrastructure improvements in the vicinity of the contributed land, which will be recognized over time as improvements are completed. As of September 30, 2022, the Company completed $6.0 million of the agreed upon infrastructure improvements. The transaction price was allocated based on the stand-alone selling prices of the land and agreed upon improvements. As of September 30, 2022 and December 31, 2021, the Company owned a 50.0% voting interest in the JV. Each JV member will continue to contribute an equal amount of cash towards the development and construction of the main spine infrastructure and amenities. The Company’s unimproved land contribution and agreed upon infrastructure improvements are being returned at an average of $10,000 per home, as each home is sold by the JV.

Per the JV agreement, the Company, as lender, has provided interest-bearing financing in the form of a $10.0 million secured revolving promissory note (the “Latitude JV Note”) to the Latitude Margaritaville Watersound JV, as borrower, to finance the development of the pod-level, non-spine infrastructure. As of September 30, 2022, there was no

balance outstanding on the Latitude JV Note. As of December 31, 2021, $7.1 million was outstanding on the Latitude JV Note. Future advances, if any, will be repaid by the JV as each home is sold. See Note 9. Other Assets for additional information related to the revolving promissory note. The day-to-day activities of the JV are being managed through a board of managers, with each JV partner having equal voting rights. The Company has determined that Latitude Margaritaville Watersound JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in the Latitude Margaritaville Watersound JV is accounted for using the equity method. See Note 19. Commitments and Contingencies for additional information related to the guaranty by the Company.

Sea Sound JV

FDSJ Eventide, LLC (“Sea Sound JV”) was formed in January 2020. The Company entered into a JV agreement to develop, construct and manage a 300-unit apartment community near the Breakfast Point residential community in Panama City Beach, Florida. Construction of the community was completed in the first quarter of 2022. As of September 30, 2022 and December 31, 2021, the Company owned a 60.0% interest in the JV. The Company’s partner is responsible for the day-to-day activities of the JV. The Company has determined that Sea Sound JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in Sea Sound JV is accounted for using the equity method. In January 2020, the JV entered into a $40.3 million loan (the “Sea Sound JV Loan”). The Sea Sound JV Loan bears interest at LIBOR plus 2.2% and matures in January 2024. The loan is secured by the real property and certain other security interests. The Company’s JV partner is the sole guarantor of the Sea Sound JV Loan. As of September 30, 2022 and December 31, 2021, $38.7 million and $35.0 million, respectively, was outstanding on the Sea Sound JV Loan.

Watersound Fountains Independent Living JV

WOSL, LLC (“Watersound Fountains Independent Living JV”) was formed in April 2021. The Company entered into a JV agreement to develop, construct and manage a 148-unit independent senior living community near the Watersound Origins residential community. The three JV parties are working together to develop and construct the project. The community is located on land that was contributed to the JV by the Company in April 2021, with a fair value of $3.2 million. In addition, during 2021, the Company contributed cash of $4.3 million and the JV partners contributed $6.4 million. As of September 30, 2022 and December 31, 2021, the Company owned a 53.8% interest in the JV. The Company’s partners are responsible for the day-to-day activities of the JV. The Company has determined that Watersound Fountains Independent Living JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in Watersound Fountains Independent Living JV is accounted for using the equity method. See Note 19. Commitments and Contingencies for additional information related to debt guaranteed by the Company.

Pier Park TPS JV

Pier Park TPS, LLC (“Pier Park TPS JV”) was formed in 2018. The Company entered into a JV agreement to develop and operate a 124-room hotel in Panama City Beach, Florida. As of September 30, 2022 and December 31, 2021, the Company owned a 50.0% interest in the JV. The Company’s partner is responsible for the day-to-day activities of the JV. The Company has determined that Pier Park TPS JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in Pier Park TPS JV is accounted for using the equity method. See Note 19. Commitments and Contingencies for additional information related to debt guaranteed by the Company.

Pier Park JV

Pier Park RI, LLC (“Pier Park RI JV”) was formed in May 2022. The Company entered into a JV agreement to develop and operate a 121-room hotel in Panama City Beach, Florida. The JV parties are working together to develop and construct the project. The hotel is located on land that was contributed to the JV by the Company in September 2022, with a fair value of $1.8 million. In addition, during the nine months ended September 30, 2022, the Company

contributed cash and impact fees of $2.5 million, and the JV partner contributed cash of $4.3 million. As of September 30, 2022, the Company owned a 50.0% interest in the JV. The Company’s partner is responsible for the day-to-day activities of the JV. The Company has determined that Pier Park RI JV is a voting interest entity, but that the Company does not have a majority voting interest. The Company’s investment in Pier Park TPS JV is accounted for using the equity method. In September 2022, the JV entered into a $25.0 million loan (the “Pier Park RI JV Loan”). The Pier Park RI JV Loan bears interest at SOFR plus 2.5% and matures in August 2025. The Pier Park RI JV Loan includes an option for a fixed rate conversion and two options to extend the maturity date by twenty-four months each, upon satisfaction of certain terms and conditions. The loan is secured by the real property and certain other security interests. The Company’s JV partner is the sole guarantor and receives a fee related to the guarantee from the Company based on the Company’s ownership percentage. As of September 30, 2022, there was no principal balance outstanding on the Pier Park RI JV Loan.

Busy Bee JV

SJBB, LLC (“Busy Bee JV”) was formed in 2019, when the Company entered into a JV agreement to construct, own and manage a Busy Bee branded fuel station and convenience store in Panama City Beach, Florida. As of September 30, 2022 and December 31, 2021, the Company owned a 50.0% interest in the JV. The Company’s partner is responsible for the day-to-day activities of the JV. The Company has determined that Busy Bee JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in the Busy Bee JV is accounted for using the equity method. In November 2019, the JV, entered into a $5.4 million construction loan (the “Busy Bee JV Construction Loan”) and a $1.2 million equipment loan (the “Busy Bee JV Equipment Loan”). The Busy Bee JV Construction Loan and the Busy Bee JV Equipment Loan bear interest at LIBOR plus 1.5%. The Busy Bee JV Construction Loan provides for monthly principal and interest payments with a final balloon payment at maturity in November 2035. The Busy Bee JV Equipment Loan provides for monthly principal and interest payments through maturity in November 2027. The loans are secured by the real and personal property and certain other security interests. The Company’s JV partner is the sole guarantor and receives a fee related to the guarantee from the Company based on the Company’s ownership percentage. The Busy Bee JV entered into an interest rate swap to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR for the Busy Bee JV Construction Loan and the Busy Bee JV Equipment Loan. The Busy Bee JV Construction Loan interest rate swap matures on November 12, 2035 and fixed the variable rate debt, initially at $5.4 million amortizing to $2.8 million at swap maturity, to a rate of 2.7%. The Busy Bee JV Equipment Loan interest rate swap matures on November 12, 2027 and fixed the variable rate debt, initially at $1.2 million to maturity, to a rate of 2.1%. As of September 30, 2022 and December 31, 2021, $5.2 million and $5.3 million, was outstanding on the Busy Bee JV Construction Loan. As of September 30, 2022 and December 31, 2021, $0.9 million and $1.1 million, respectively, was outstanding on the Busy Bee JV Equipment Loan.

Electric Cart Watersound JV

SJECC, LLC (“Electric Cart Watersound JV”) was formed in February 2022, when the Company entered into a JV agreement to develop, construct, lease, manage and operate a golf cart and low speed vehicle “LSV” business at the new Watersound West Bay Center adjacent to the Latitude Margaritaville Watersound residential community in Bay County, Florida. This land was contributed to the JV by the Company in February 2022, with a fair value of $0.5 million. In addition, during 2022 the Company contributed cash of $0.2 million and the JV partner contributed cash of $0.6 million. The Watersound West Bay Center location is currently under development. The JV is operating from temporary facilities. An additional sales showroom will be located at the Watersound Town Center near the Watersound Origins residential community on property to be leased to the JV by the Company. As of September 30, 2022, the Company owned a 51% interest in the JV. The Company is currently responsible for the construction activities of the JV and the Company’s JV partner manages the day-to-day operations of the business. The Company has determined Electric Cart Watersound JV is a VIE, but that the Company is not the primary beneficiary since it does not have the power to direct the activities that most significantly impact the economic performance of the JV. The Company’s investment in Electric Cart Watersound JV is accounted for using the equity method. See Note 19. Commitments and Contingencies for additional information related to debt guaranteed by the Company.

Watersound Management JV

Watersound Management, LLC was formed in June 2021. During 2021, the Company purchased an interest in Watersound Management, LLC for $0.5 million to form a JV to lease, manage and operate multi-family housing developments for which the JV is the exclusive renting and management agent. In addition, the Company and its JV partner each contributed cash of less than $0.1 million. As of September 30, 2022 and December 31, 2021, the Company owned a 50.0% interest in the JV. The day-to-day activities of the JV are being managed through a board of managers, with each JV partner having equal voting rights. The Company has determined that Watersound Management JV is a voting interest entity, but that the Company does not have a majority voting interest. The Company’s investment in Watersound Management JV is accounted for using the equity method.

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Investments

9 Months Ended

Sep. 30, 2022

Investments

Investments

5. Investments

Available-For-Sale Investments

Investments classified as available-for-sale securities were as follows:

	September 30, 2022
			Gross Unrealized		Gross Unrealized
	Amortized Cost		Gains		(Losses)		Fair Value
Investments - debt securities:
U.S. Treasury Bills	$	74,731	$	—	$	(698)	$	74,033

	December 31, 2021
			Gross Unrealized		Gross Unrealized
	Amortized Cost		Gains		(Losses)		Fair Value
Investments - debt securities:
U.S. Treasury Bills	$	88,966	$	1	$	(11)	$	88,956

During the three and nine months ended September 30, 2022, the Company did not have any realized gains or losses from the sale of available-for-sale securities. During the nine months ended September 30, 2022, proceeds from the sale of available-for-sale securities were $13.0 million, maturities of available-for-sale securities were $99.0 million and purchases of available-for-sale securities were $97.1 million.

During the three months ended September 30, 2021, the Company did not have any realized gains or losses from the sale of available-for-sale securities. During the nine months ended September 30, 2021, net realized gains from the sale of available-for-sale securities were less than $0.1 million, proceeds from the sale of available-for-sale securities were $1.2 million, maturities of available-for-sale securities were $73.0 million and purchases of available-for sale securities were $127.9 million.

The following table provides the available-for-sale investments with an unrealized loss position and their related fair values:

	September 30, 2022								December 31, 2021
	Less Than 12 Months				12 Months or Greater				Less Than 12 Months				12 Months or Greater
			Unrealized				Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investments - debt securities:
U.S. Treasury Bills	$	74,033	$	698	$	—	$	—	$	43,959	$	11	$	—	$	—

As of September 30, 2022, the Company had unrealized losses of $0.7 million related to U.S. Treasury Bills. As of December 31, 2021, the Company had de minimis unrealized losses related to U.S. Treasury Bills. As of September 30, 2022 and December 31, 2021, the Company determined the unrealized losses related to U.S. Treasury Bills were not due to credit impairment and did not record an allowance for credit losses related to available-for-sale

debt securities. In addition, the Company did not intend to sell the investments with a material unrealized loss and it is more likely than not that the Company will not be required to sell any of these securities prior to their anticipated recovery.

The amortized cost and estimated fair value of investments - debt securities classified as available-for-sale, by contractual maturity are shown in the following table.

	September 30, 2022
	Amortized Cost		Fair Value
Due in one year or less	$	74,731	$	74,033

Investment Management Agreement

Mr. Bruce R. Berkowitz is the Chairman of the Company’s Board of Directors (the “Board”). He is the Manager of, and controls entities that own and control, Fairholme Holdings, LLC, which wholly owns Fairholme Capital Management, L.L.C. (“FCM”), an investment advisor registered with the SEC. Mr. Berkowitz is the Chief Investment Officer of FCM, which has provided investment advisory services to the Company since April 2013. FCM does not receive any compensation for services as the Company’s investment advisor. As of September 30, 2022, clients of FCM, including Mr. Berkowitz, beneficially owned approximately 42.0% of the Company’s common stock. FCM and its client, The Fairholme Fund, (“Fairholme”) a series of investments originating from the Fairholme Funds, Inc., may be deemed affiliates of the Company.

Pursuant to the terms of an Investment Management Agreement, as amended, (the “Investment Management Agreement”) with the Company, FCM agreed to supervise and direct the Company’s investment accounts in accordance with the investment guidelines and restrictions approved by the Company. The investment guidelines are set forth in the Investment Management Agreement and require that any new securities for purchase must be issues of the U.S. Treasury or U.S. Treasury Money Market Funds.

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Financial Instruments and Fair Value Measurements

9 Months Ended

Sep. 30, 2022

Financial Instruments and Fair Value Measurements

Financial Instruments and Fair Value Measurements

6. Financial Instruments and Fair Value Measurements

Fair Value Measurements

The financial instruments measured at fair value on a recurring basis are as follows:

	September 30, 2022
							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents:
Money market funds	$	1,079	$	—	$	—	$	1,079
		1,079		—		—		1,079
Investments - debt securities:
U.S. Treasury Bills		74,033		—		—		74,033
		74,033		—		—		74,033
Investments - equity securities:
Preferred stock		—		334		—		334
		—		334		—		334
	$	75,112	$	334	$	—	$	75,446

	December 31, 2021
							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents:
Money market funds	$	40,412	$	—	$	—	$	40,412
U.S. Treasury Bills		4,000		—		—		4,000
		44,412		—		—		44,412
Investments - debt securities:
U.S. Treasury Bills		88,956		—		—		88,956
		88,956		—		—		88,956
Investments - equity securities:
Preferred stock		—		450		—		450
		—		450		—		450
	$	133,368	$	450	$	—	$	133,818

Money market funds and U.S. Treasury Bills are measured based on quoted market prices in an active market and categorized within Level 1 of the fair value hierarchy. Money market funds and short-term U.S. Treasury Bills with a maturity date of 90 days or less from the date of purchase are classified as cash equivalents in the Company’s condensed consolidated balance sheets.

The Company’s preferred stock investments are not traded on a nationally recognized exchange but are traded in the U.S. over-the-counter market where there is less trading activity and the investments are measured primarily using pricing data from external pricing services that report prices observed for recently executed market transactions. For these reasons, the Company has determined that preferred stock investments are categorized as Level 2 financial instruments since their fair values were determined from market inputs in an inactive market.

Assets and liabilities measured at fair value on a recurring basis related to interest rate swap agreements designated as cash flow hedges are as follows:

			Fixed		Notional					Fair	Location in
	Effective	Maturity	Interest		Amount as of	Derivative Asset (Liability) Fair Value				Value	Consolidated
Description	Date	Date	Rate		September 30, 2022	September 30, 2022		December 31, 2021		Level	Balance Sheets
					In Millions	In Thousands
Pier Park Resort Hotel JV Loan (a)	12/10/2022	4/12/2027	3.2%	$	42.0	$	4,517	$	558	2	Other assets
Watercrest JV Loan (a) (b)	6/1/2021	6/1/2024	4.4%	$	—	$	—	$	(634)	2	Other liabilities
Pier Park TPS JV Loan (c)	1/14/2021	1/14/2026	5.2%	$	13.9	$	277	$	(436)	2	Investment in unconsolidated joint ventures

(a) See Note 10. Debt, Net for additional information.

(b) In April 2022, the swap was terminated resulting in a gain of $0.1 million, included in interest expense on the condensed consolidated statements of income for the nine months ended September 30, 2022.

(c) Interest rate swap was entered into by the Pier Park TPS JV, which is unconsolidated and accounted for using the equity method. The derivative asset has been recorded at the Company’s proportionate share of its estimated fair value. The Company’s proportionate share of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into equity in income (loss) from unconsolidated joint ventures in the period during which the hedged transaction affects earnings. See Note 4. Joint Ventures and Note 19. Commitments and Contingencies for additional information.

The following is a summary of the effect of derivative instruments on the Company’s condensed consolidated statements of income and condensed consolidated statements of comprehensive income:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Amount of gain recognized in other comprehensive income on derivatives	$	1,734	$	300	$	5,155	$	543
Amount of loss reclassified into interest expense	$	—	$	106	$	52	$	140
Amount of loss reclassified into equity in income (loss) from unconsolidated joint ventures	$	15	$	48	$	98	$	126

As of September 30, 2022, based on current value, the Company expects to reclassify $0.4 million of derivative instruments from accumulated other comprehensive income (loss) to earnings during the next twelve months.

Investment in Unconsolidated Joint Ventures

The Company evaluates its investment in unconsolidated JVs for impairment during each reporting period. A series of operating losses of an investee or other factors may indicate that a decrease in the value of the Company’s investment in the unconsolidated JV has occurred. The amount of impairment recognized is the excess of the investment’s carrying value over its estimated fair value. The fair value of the Company’s investment in unconsolidated JVs is determined primarily using a discounted cash flow model to value the underlying net assets of the respective JV. The fair value of investment in unconsolidated JVs required to be assessed for impairment is determined using Level 3 inputs in the fair value hierarchy. No impairment for unconsolidated JVs was recorded during the three and nine months ended September 30, 2022 and 2021. See Note 4. Joint Ventures for additional information.

Fair Value of Financial Instruments

The Company uses the following methods and assumptions in estimating fair value for financial instruments:

● The fair value of the investments held by SPEs - time deposit is based on the present value of future cash flows at the current market rate.

● The fair value of the investments held by SPEs - U.S. Treasury Bills are measured based on quoted market prices in an active market.

● The fair value of debt is based on discounted future expected cash flows based on current market rates for financial instruments with similar risks, terms and maturities.

● The fair value of the senior notes held by SPE is based on the present value of future cash flows at the current market rate.

The carrying amount and estimated fair value, measured on a nonrecurring basis, of the Company’s financial instruments were as follows:

	September 30, 2022					December 31, 2021
	Carrying		Estimated			Carrying		Estimated
	value		Fair value		Level	value		Fair value		Level
Investments held by SPEs:
Time deposit	$	200,000	$	200,000	3	$	200,000	$	200,000	3
U.S. Treasury Bills	$	4,452	$	4,321	1	$	5,132	$	5,475	1
Senior Notes held by SPE	$	177,783	$	178,887	3	$	177,566	$	204,802	3
Debt
Fixed-rate debt	$	131,809	$	110,959	2	$	129,532	$	126,722	2
Variable-rate debt		194,995		194,995	2		97,942		97,942	2
Total debt	$	326,804	$	305,954		$	227,474	$	224,664

Investments and Senior Notes Held by Special Purpose Entities

In connection with a real estate sale in 2014, the Company received consideration including a $200.0 million fifteen-year installment note (the “Timber Note”) issued by Panama City Timber Finance Company, LLC. The Company contributed the Timber Note and assigned its rights as a beneficiary under a letter of credit to Northwest Florida Timber Finance, LLC. Northwest Florida Timber Finance, LLC monetized the Timber Note by issuing $180.0 million aggregate principal amount of its 4.8% Senior Secured Notes due in 2029 (the “Senior Notes”) at an issue price of 98.5% of face value to third party investors. The investments held by Panama City Timber Finance Company, LLC as of September 30, 2022, consist of a $200.0 million time deposit that, subsequent to April 2, 2014, pays interest at 4.0% and matures in March 2029, U.S. Treasuries of $4.4 million and cash of $0.4 million. The Senior Notes held by Northwest Florida Timber Finance, LLC as of September 30, 2022 consist of $177.8 million, net of the $2.2 million discount and debt issuance costs. Panama City Timber Finance Company, LLC and Northwest Florida Timber Finance, LLC are VIEs, which the Company consolidates as the primary beneficiary of each entity.

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Hurricane Michael

9 Months Ended

Sep. 30, 2022

Hurricane Michael

Hurricane Michael

7. Hurricane Michael

On October 10, 2018, Hurricane Michael made landfall in the Florida Panhandle. The majority of the Company’s properties incurred minimal or no damage; however, the Company’s Point South Marina Bay Point in Bay County and Point South Marina Port St. Joe in Gulf County, as well as certain timber, commercial and multi-family leasing assets were impacted. The marinas suffered significant damage requiring long-term restoration and have remained closed during the reconstruction of significant portions of these assets. The Point South Marina Bay Point fully reopened in the third quarter of 2022 and a portion of the Point South Marina Port St. Joe is expected to open in 2022.

The Company maintains property and business interruption insurance, subject to certain deductibles, and is continuing to assess claims under such policies; however, the timing and amount of insurance proceeds are uncertain and may not be sufficient to cover all losses. Timing differences exist between the impairment losses, capital expenditures made to repair or restore properties and recognition and receipt of insurance proceeds reflected in the Company’s financial statements. During the three and nine months ended September 30, 2022, no insurance proceeds were received related to business interruption. During the three and nine months ended September 30, 2021, $0.2 million and $0.6 million, respectively, of business interruption proceeds were received related to the marinas, which are included within the cost of hospitality revenue on the condensed consolidated statements of income.

During the three months ended September 30, 2022 and 2021, the Company recognized $0.9 million and $2.5 million, respectively, of gain on insurance recovery and incurred loss from hurricane damage of less than $0.1 million during each period. During the nine months ended September 30, 2022 and 2021, the Company recognized $4.2 million and $3.9 million, respectively, of gain on insurance recovery and incurred loss from hurricane damage of less than $0.1

million during each period. The gain on insurance recovery and loss from hurricane damage were included in other income, net on the condensed consolidated statements of income.

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Leases

9 Months Ended

Sep. 30, 2022

Leases

Leases

8. Leases

The Company as Lessor

Leasing revenue consists of rental revenue from multi-family, senior living, self-storage, retail, office and commercial property, cell towers and other assets, which is recognized as earned, using the straight-line method over the life of each lease. The Company’s leases have remaining lease terms up to the year 2042, some of which include options to terminate or extend.

The components of leasing revenue are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Leasing revenue
Lease payments	$	8,765	$	5,904	$	24,131	$	15,541
Variable lease payments		1,284		1,242		4,084		3,571
Total leasing revenue	$	10,049	$	7,146	$	28,215	$	19,112

Minimum future base rental revenue on non-cancelable leases subsequent to September 30, 2022, for the years ending December 31 are:

2022	$	6,727
2023		18,153
2024		12,100
2025		9,004
2026		7,281
Thereafter		32,485
	$	85,750

The Company as Lessee

As of September 30, 2022, the Company leased certain office and other equipment under finance leases and had operating leases for property and equipment used in corporate, hospitality and commercial operations with remaining lease terms up to the year 2049. Certain leases include options to purchase, terminate or renew for one or more years, which are included in the lease term used to establish right-of-use assets and lease liabilities when it is reasonably certain that the option will be exercised. Finance lease right-of-use assets are included within property, plant and equipment and operating lease right-of-use assets are included within other assets on the condensed consolidated balance sheets, which represent the Company’s right to use an underlying asset during a lease term for leases in excess of one year. Corresponding finance lease liabilities and operating lease liabilities are included within other liabilities on the condensed consolidated balance sheets and are related to the Company’s obligation to make lease payments for leases in excess of one year. The Company uses its incremental borrowing rate to determine the present value of the lease payments since the rate implicit in each lease is not readily determinable. The Company recognizes short-term (twelve months or less) lease payments in profit or loss on a straight-line basis over the term of the lease and variable lease payments in the period in which the obligation for those payments is incurred.

The components of lease expense are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022			2021
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	30	$	29	$	90		$	85
Interest on lease liability		3		5		11			14
Operating lease cost		92		80		286			236
Variable and short-term lease cost		576		518		1,401			1,262
Total lease cost	$	701	$	632	$	1,788		$	1,597
Other information
Weighted-average remaining lease term - finance lease (in years)						3.2			3.8
Weighted-average remaining lease term - operating leases (in years)						3.0			3.4
Weighted-average discount rate - finance lease						4.9	%		4.6	%
Weighted-average discount rate - operating leases						4.8	%		4.9	%

The aggregate payments of finance and operating lease liabilities subsequent to September 30, 2022, for the years ending December 31 are:

	Finance Leases		Operating Leases
2022	$	34	$	92
2023		136		329
2024		89		178
2025		52		55
2026		8		12
Thereafter		1		269
Total		320		935
Less imputed interest		(19)		(174)
Total lease liabilities	$	301	$	761

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Other Assets

9 Months Ended

Sep. 30, 2022

Other Assets

Other Assets

9. Other Assets

Other assets consist of the following:

	September 30,		December 31,
	2022		2021
Investments - equity securities	$	334	$	450
Accounts receivable, net		9,763		13,813
Homesite sales receivable		9,089		7,651
Notes receivable, net		2,908		12,377
Income tax receivable		1,558		—
Inventory		3,692		2,797
Prepaid expenses		9,209		7,175
Straight-line rent		2,625		2,489
Operating lease right-of-use assets		761		732
Other assets		13,484		5,987
Retained interest investments		7,832		13,826
Accrued interest receivable for Senior Notes held by SPE		935		2,938
Total other assets	$	62,190	$	70,235

Investments - Equity Securities

As of September 30, 2022 and December 31, 2021, investments - equity securities included $0.3 million and $0.5 million, respectively, of preferred stock investments recorded at fair value. During each the three and nine months ended September 30, 2022, the Company recognized unrealized gain of less than $0.1 million on investments related to equity securities still held as of September 30, 2022. During the three and nine months ended September 30, 2021, the Company recognized unrealized gain of $0.1 million and unrealized loss of $0.9 million, respectively, on investments related to equity securities still held as of September 30, 2021. These amounts were included within investment income, net on the condensed consolidated statements of income.

Accounts Receivable, Net

The Company’s accounts receivable, net primarily includes leasing receivables, membership initiation fees, hospitality receivables and other receivables. At each reporting period, accounts receivable in the scope of Topic 326 are pooled by type and judgements are made based on historical losses and expected credit losses based on economic trends to determine the allowance for credit losses primarily using the aging method. Actual losses could differ from those estimates. Write-offs are recorded when the Company concludes that all or a portion of the receivable is no longer collectible and recoveries on receivables previously charged-off are credited to the allowance. As of September 30, 2022 and December 31, 2021, accounts receivable were presented net of allowance for credit losses of $0.3 million and $0.4 million, respectively, and net of allowance for lease related receivables of $0.1 million as of each period. During the nine months ended September 30, 2022, allowance for credit losses related to accounts receivable, net decreased $0.1 million.

Homesite Sales Receivable

Homesite sales receivable from contracts with customers include estimated homesite residuals and certain estimated fees that are recognized as revenue at the time of sale to homebuilders, subject to constraints. Any change in circumstances from the estimated amounts will be updated at each reporting period. The receivable will be collected as the homebuilders build the homes and sell to retail consumers, which can occur over multiple years.

The following table presents the changes in homesite sales receivable:

	September 30, 2022		September 30, 2021
Balance at beginning of period	$	7,651	$	5,675
Increases due to revenue recognized for homesites sold		4,678		3,670
Decreases due to amounts received		(3,240)		(3,376)
Balance at end of period	$	9,089	$	5,969

Notes Receivable, Net

Notes receivable, net consists of the following:

	September 30,		December 31,
	2022		2021
Interest bearing revolving promissory note with the unconsolidated Latitude Margaritaville Watersound JV, secured by the JV's real property — bearing interest at a rate of 5.0%, matures June 2025	$	—	$	7,075
Various interest bearing homebuilder notes, secured by the real estate sold — bearing interest at a rate of 5.5%, due November 2022 through May 2023		2,455		4,824
Interest bearing notes with JV partner, secured by the partner's membership interest in the JV — bearing interest at a rate of 8.0%, due May 2039		359		359
Non-interest bearing note with a tenant for tenant improvements, due October 2025		70		76
Mortgage note, secured by certain real estate, bearing interest at a rate of 4.8% due November 2023		24		43
Total notes receivable, net	$	2,908	$	12,377

In June 2020, the Company entered into a $10.0 million secured revolving promissory note with the unconsolidated Latitude Margaritaville Watersound JV. The Latitude JV Note was provided to finance the development of the pod-level, non-spine infrastructure. Future advances, if any, will be repaid by the JV as each home is sold by the JV, with the aggregate unpaid principal and all accrued and unpaid interest due at maturity in June 2025. The note is secured by a mortgage and security interest in and on the real property and improvements located on the real property of the JV. See Note 4. Joint Ventures for additional information.

The Company may allow homebuilders to pay for homesites during the home construction period in the form of homebuilder notes. The Company evaluates the carrying value of all notes receivable and the need for an allowance for credit losses at each reporting period. As of both September 30, 2022 and December 31, 2021, notes receivable were presented net of allowance for credit losses of $0.1 million. As of September 30, 2022 and December 31, 2021, accrued interest receivable related to notes receivable was $0.2 million and $0.1 million, which is included within other assets on the condensed consolidated balance sheets.

Other Assets

Other assets as of September 30, 2022 and December 31, 2021, include $7.7 million and $3.9 million, respectively, of escrow deposits primarily related to financing and development requirements for certain of the Company’s projects. Other assets as of September 30, 2022 and December 31, 2021, also include $4.5 million and $0.6 million, respectively, for the fair value of derivative assets. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

Retained Interest Investments

The Company has a beneficial interest in certain bankruptcy-remote qualified SPEs used in the installment sale monetization of certain sales of timberlands in 2008. The SPEs’ assets are not available to satisfy the Company’s liabilities or obligations and the liabilities of the SPEs are not the Company’s liabilities or obligations. Therefore, the SPEs’ assets and liabilities are not consolidated in the Company’s condensed consolidated financial statements as of

September 30, 2022 and December 31, 2021. The Company’s continuing involvement with the SPEs is the receipt of the net interest payments and the remaining principal of approximately $10.1 million to be received at the end of the installment notes’ fifteen-year maturity period, in 2023 through 2024. During the nine months ended September 30, 2022, two installment notes matured and the Company received $6.9 million of remaining principal. The Company has a beneficial or retained interest investment related to these SPEs of $7.8 million and $13.8 million as of September 30, 2022 and December 31, 2021, respectively, recorded in other assets on the Company’s condensed consolidated balance sheets.

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Debt, Net

9 Months Ended

Sep. 30, 2022

Debt, Net

Debt, Net

10. Debt, Net

Debt consists of the following:

	Maturity Date	Interest Rate Terms	Effective Rate September 30, 2022		September 30, 2022		December 31, 2021
Watersound Origins Crossings JV Loan	May 2024	SOFR plus 2.8, floor 3.3% (a)	5.7	%	$	44,015	$	37,897
PPN JV Loan	November 2025	Fixed	4.1	%		42,816		43,582
Pier Park Resort Hotel JV Loan (b)	April 2027	LIBOR plus 2.2%	5.3	%		38,333		14,650
PPC JV Loan (insured by HUD)	June 2060	Fixed	3.1	%		35,304		35,670
PPC II JV Loan (insured by HUD) (c)	May 2057	Fixed	2.7	%		22,723		17,374
Watercrest JV Loan	June 2047	LIBOR plus 2.2% (d)	5.3	%		21,150		20,053
Breakfast Point Hotel Loan	November 2042	LIBOR plus 2.8%, floor 3.8%	5.9	%		16,413		11,843
North Bay Landing Apartments Loan	September 2024	LIBOR plus 2.5%, floor 3.2%	5.6	%		15,693		1,342
Airport Hotel Loan	March 2025	LIBOR plus 2.0%, floor 3.0%	5.1	%		14,642		14,642
Mexico Beach Crossings JV Loan (insured by HUD)	March 2064	Fixed	3.0	%		13,678		—
Watersound Camp Creek Loan	December 2047	LIBOR plus 2.1%, floor 2.6%	5.2	%		13,131		3,437
Lodge 30A JV Loan	January 2028	Fixed	3.8	%		13,039		7,474
Watersound Town Center Grocery Loan	August 2031	LIBOR plus 2.0%, floor 2.2%	5.1	%		9,586		620
Hotel Indigo Loan	October 2028	SOFR plus 2.7%, floor 2.7%	5.7	%		6,245		—
Beckrich Building III Loan	August 2029	LIBOR plus 1.7%	4.8	%		5,038		5,188
Self-Storage Facility Loan	November 2025	LIBOR plus 2.4%, floor 2.9%	5.5	%		4,666		4,666
Community Development District debt	May 2023-May 2039	Fixed	3.6 to 6.0	%		4,249		4,909
Topsail Hotel Loan	July 2027	SOFR plus 2.1%, floor 3.0%	5.1	%		2,107		—
Beach Homes Loan	May 2029	LIBOR plus 1.7%	4.8	%		1,455		1,492
Pier Park Outparcel Loan	March 2027	LIBOR plus 1.7%	4.8	%		1,312		1,370
WaterColor Crossings Loan	February 2029	LIBOR plus 1.7%	4.8	%		1,209		1,265
Total principal outstanding						326,804		227,474
Unamortized discount and debt issuance costs						(5,719)		(4,440)
Total debt, net					$	321,085	$	223,034

(a) In January 2022, the Watersound Origins Crossings JV Loan interest rate was modified from a fixed rate of 5.0%.

(b) The Pier Park Resort Hotel JV entered into an interest rate swap that is effective December 10, 2022 and matures on April 12, 2027 and fixed the variable rate on the notional amount of related debt of $42.0 million to a rate of 3.2%. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

(c) In April 2022, the PPC II JV Loan was amended from a rate of LIBOR plus 2.1% and maturity date of October 2024.

(d) As of December 31, 2021, the interest rate was swapped to a fixed rate of 4.4% on the notional amount of related debt of $20.0 million. The interest rate swap was terminated in April 2022. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

The Company’s indebtedness consists of various loans on real and leasehold property. These loans are typically secured by various interests in the property such as assignment of rents, leases, deposits, permits, plans, specifications, fees, agreements, approvals, contracts, licenses, construction contracts, development contracts, service contracts, franchise agreements, the borrower’s assets, improvements, and security interests in the rents, personal property, management agreements, construction agreements, improvements, accounts, profits, leases, accounts and fixtures (collectively, “Security Interests”). The specific Security Interests vary from loan to loan. As of September 30, 2022, the weighted average effective interest rate of outstanding debt was 4.6%, of which 40.3% of the debt outstanding includes fixed interest rates, and the average remaining life of debt outstanding was 14.2 years.

In 2019, the Watersound Origins Crossings JV entered into a $37.9 million loan (the “Watersound Origins Crossings JV Loan”) to finance the construction of apartments located near the entrance to the Watersound Origins residential community. In January 2022, the Watersound Origins Crossings JV entered into a modification of the loan that increased the principal amount of the loan to $44.0 million, modified the interest rate from 5.0% to the Secured Overnight Financing Rate (“SOFR”) plus 2.8%, with a floor of 3.3%, and provides for payments of interest only with a final balloon payment at maturity in May 2024. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Watersound Origins Crossings JV Loan. As guarantor, the Company’s liability has been reduced to 25% of the outstanding principal amount, based on meeting certain debt service coverage and loan to value requirements. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation or failure to abide by other certain obligations on the part of such guarantor. The Company is the sole guarantor and receives a monthly fee related to the guarantee from its JV partner based on the JV partner’s ownership percentage. As of September 30, 2022, the Company incurred less than $0.1 million of additional loan cost due to the loan modification.

In 2015, the Pier Park North JV entered into a $48.2 million loan (the “PPN JV Loan”), secured by a first lien on, and Security Interest in, a majority of the Pier Park North JV’s property. The loan provides for principal and interest payments with a final balloon payment at maturity in November 2025. In connection with the loan, the Company entered into a limited guarantee in favor of the lender, based on its percentage ownership of the JV. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation by the Pier Park North JV; any voluntary transfer or encumbrance of the property in violation of the due-on-sale clause in the security instrument; upon commencement of voluntary bankruptcy or insolvency proceedings and upon breach of covenants in the security instrument.

In April 2020, the Pier Park Resort Hotel JV entered into a loan with an initial amount of $52.5 million and up to a maximum of $60.0 million through additional earn-out requests (the “Pier Park Resort Hotel JV Loan”). The loan was entered into to finance the construction of an Embassy Suites by Hilton hotel in the Pier Park area of Panama City Beach, Florida. The loan provides for interest only payments for the first thirty-six months and principal and interest payments thereafter with a final balloon payment at maturity in April 2027. The loan is secured by the real property and certain other Security Interests. In connection with the loan, as guarantors, the Company and the Company’s JV partner entered into a guarantee based on each partner’s ownership interest in favor of the lender, to guarantee the payment and performance of the borrower. As guarantor, the Company’s liability under the Pier Park Resort Hotel JV Loan will be released upon reaching and maintaining certain debt service coverage for twelve months. In addition, the guarantee can become full recourse in the case of the failure of the guarantors to abide by or perform any of the covenants or warranties to be performed on the part of such guarantor. The Pier Park Resort Hotel JV entered into an interest rate swap to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR. The interest rate swap is effective December 10, 2022 and matures on April 12, 2027 and fixed the variable rate on the notional amount of related debt of $42.0 million to a rate of 3.2%. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

In 2018, the Pier Park Crossings JV entered into a $36.6 million loan, insured by the U.S. Department of Housing and Urban Development (“HUD”), to finance the construction of apartments in Panama City Beach, Florida (the “PPC JV Loan”). The loan provides for monthly principal and interest payments through maturity in June 2060. The loan includes a prepayment premium due to the lender of 2% - 10% for any additional principal that is prepaid through August 31, 2031. The loan is secured by the real property and certain other Security Interests.

In 2019, the Pier Park Crossings Phase II JV entered into a $17.5 million loan (the “PPC II JV Loan”) to finance the construction of apartments in Panama City Beach, Florida. In April 2022, the Pier Park Crossings Phase II JV entered into an amendment of the PPC II JV Loan that increased the principal amount of the loan, which had a balance of $17.3 million at the time of the amendment, to $22.9 million, fixed the interest rate to 2.7% and provides for monthly payments of principal and interest through maturity in May 2057. The amended loan terms include a prepayment premium due to the lender of 1% - 10% for any additional principal that is prepaid through May 31, 2032. The amended loan is insured by HUD and is secured by the real property and certain other Security Interests. As of September 30, 2022, the Company incurred $0.2 million of additional loan cost. As a result of the amendment, the nine months ended September 30, 2022 include a $0.1 million loss on early extinguishment of debt related to unamortized debt issuance costs, included within other income, net on the condensed consolidated statements of income.

In 2019, the Watercrest JV entered into a $22.5 million loan (the “Watercrest JV Loan”) to finance the construction of a senior living facility in Santa Rosa Beach, Florida. The loan provides for monthly principal and interest payments through maturity in June 2047. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Watercrest JV Loan. The Company is the sole guarantor and receives a quarterly fee related to the guarantee from its JV partner based on the JV partner’s ownership percentage. The Watercrest JV entered into an interest rate swap to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR. The interest rate swap was effective June 1, 2021 and matures on June 1, 2024 and fixed the variable rate on the notional amount of related debt of $20.0 million to a rate of 4.4%. In April 2022, the swap was terminated resulting in a gain of $0.1 million, included in interest expense on the condensed consolidated statements of income for the nine months ended September 30, 2022. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

In November 2020, a wholly-owned subsidiary of the Company entered into a $16.8 million loan to finance the construction of a Homewood Suites by Hilton hotel in the Breakfast Point area of Panama City Beach, Florida (the “Breakfast Point Hotel Loan”). The loan provides for interest only payments for the first twenty-four months and principal and interest payments thereafter through maturity in November 2042. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Breakfast Point Hotel Loan.

In March 2021, a wholly-owned subsidiary of the Company entered into a $26.8 million construction loan to finance the construction of apartments in Panama City, Florida (the “North Bay Landing Apartments Loan”). The loan provides for interest only payments and a principal balloon payment at maturity in September 2024. The loan includes an option for an extension of the maturity date by eighteen months, subject to certain conditions, which would provide for principal and interest payments commencing on the original maturity date with a final balloon payment at the extended maturity date. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee completion of the project and the payment and performance of the borrower under the North Bay Landing Apartments Loan. As guarantor, the Company’s liability under the loan will be reduced to 50% of the principal amount upon satisfaction of final advance conditions and reduced to 25% of the outstanding principal amount upon reaching and maintaining a certain debt service coverage ratio. In addition, the guarantee can become full recourse in the case of any fraud or intentional misrepresentation or failure to abide by other certain obligations on the part of such guarantor.

In March 2020, a wholly-owned subsidiary of the Company entered into a $15.3 million loan (the “Airport Hotel Loan”) to finance construction of the Hilton Garden Inn Panama City Airport. The loan provides for interest only payments for the first thirty-six months and principal and interest payments thereafter with a final balloon payment at maturity in March 2025. The loan is secured by the real property and certain other Security Interests. In connection with

the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Airport Hotel Loan.

In January 2022, the Mexico Beach Crossings JV entered into a $43.5 million loan, insured by HUD, to finance the construction of apartments in Mexico Beach, Florida (the “Mexico Beach Crossings JV Loan”). The loan provides for interest only payments for the first twenty-seven months and principal and interest payments thereafter through maturity in March 2064. The loan may not be prepaid prior to April 1, 2024 and if any additional principal is prepaid from April 1, 2024 through March 31, 2034 a premium is due to the lender of 1% - 10%. The loan is secured by the real property and certain other Security Interests.

In June 2021, a wholly-owned subsidiary of the Company entered into a $28.0 million loan to finance the construction of Watersound Camp Creek, which includes an inn and amenity center near the Watersound Camp Creek residential community (the “Watersound Camp Creek Loan”). The loan provides for interest only payments for the first eighteen months and principal and interest payments thereafter through maturity in December 2047. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee completion of the project and the payment of the borrower under the Watersound Camp Creek Loan. As guarantor, the Company’s liability under the loan will be reduced to 50% of the outstanding principal amount upon the project reaching and maintaining a trailing six months of operations with a certain debt service coverage ratio and reduced to 25% of the outstanding principal amount upon reaching and maintaining a trailing twelve months of operations of a certain debt service coverage ratio. In addition, the guarantee can become full recourse in the case of the failure of guarantor to abide by or perform any of the covenants, warranties or other certain obligations to be performed on the part of such guarantor.

In January 2021, The Lodge 30A JV entered into a $15.0 million loan to finance the construction of a boutique hotel in Seagrove Beach, Florida (the “Lodge 30A JV Hotel Loan”). The loan provides for interest only payments for the first twenty-four months and principal and interest payments thereafter with a final balloon payment at maturity in January 2028. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company, wholly-owned subsidiaries of the Company and the Company’s JV partner entered into a joint and several payment and performance guarantee in favor of the lender. Upon reaching a certain debt service coverage ratio for a minimum of twenty-four months, the Company’s liability as guarantor will be reduced to 75% of the outstanding principal amount for a twelve-month period. The debt service coverage ratio will be tested annually thereafter and the Company’s liability will be reduced to 50% in year four and 25% in year five. The Company receives a monthly fee related to the guarantee from its JV partner based on the JV partner’s ownership percentage.

In August 2021, a wholly-owned subsidiary of the Company entered into a $12.0 million loan to finance the construction of a building in the Watersound Town Center near the Watersound Origins residential community (the “Watersound Town Center Grocery Loan”). The loan provides for interest only payments for the first twenty-four months and principal and interest payments thereafter with a final balloon payment at maturity in August 2031. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the performance of the borrower under the Watersound Town Center Grocery Loan. As guarantor, the Company’s liability under the loan will be reduced to 50% of the outstanding principal amount upon satisfaction of final advance conditions, issuance of the certificate of occupancy for the project and receipt of the initial base rent payment and reduced to 25% of the outstanding principal amount upon reaching a certain debt service coverage ratio and the project maintaining 93% occupancy for ninety consecutive days.

In October 2021, a wholly-owned subsidiary of the Company entered into a $21.2 million loan to finance the construction of a hotel in Panama City, Florida (the “Hotel Indigo Loan”). The loan provides for interest only payments for the first twenty-four months and principal and interest payments thereafter with a final balloon payment at maturity in October 2028. The loan includes an option for an extension of the maturity date by sixty months, subject to certain conditions, which would provide for continued principal and interest payments with a final balloon payment at the extended maturity date. In June 2022, the loan was amended to revise the interest rate to SOFR plus 2.7%, with a floor of 2.7%, through October 2023 and SOFR plus 2.5%, with a floor of 2.5%, from November 2023 through maturity. The loan is secured by the leasehold property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee completion of the project and the payment and performance of the borrower under the Hotel Indigo Loan.

In 2019, a wholly-owned subsidiary of the Company entered into a $5.5 million loan (the “Beckrich Building III Loan”) to finance the construction of an office building in Panama City Beach, Florida. The loan provides for monthly principal and interest payments with a final balloon payment at maturity in August 2029. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Beckrich Building III Loan.

In November 2020, a wholly-owned subsidiary of the Company entered into a $5.8 million loan to finance the construction of a self-storage facility in Santa Rosa Beach, Florida (the “Self-Storage Facility Loan”). The loan provides for interest only payments for the first forty-eight months and principal and interest payments thereafter with a final balloon payment at maturity in November 2025. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Self-Storage Facility Loan. The Company’s liability as guarantor under the loan shall not exceed $2.9 million, plus any additional fees, upon reaching and maintaining certain debt service coverage.

Community Development District (“CDD”) bonds financed the construction of infrastructure improvements at some of the Company’s projects. The principal and interest payments on the bonds are paid by assessments on the properties benefited by the improvements financed by the bonds. CDD debt is secured by certain real estate or other collateral. The Company has recorded a liability for CDD debt that is associated with platted property, which is the point at which it becomes fixed and determinable. Additionally, the Company has recorded a liability for the portion of the CDD debt that is associated with unplatted property if it is probable and reasonably estimable that the Company will ultimately be responsible for repayment. The Company’s total CDD debt assigned to property it owns was $13.2 million and $14.1 million as of September 30, 2022 and December 31, 2021, respectively. The Company pays interest on this total outstanding CDD debt.

In July 2022, a wholly-owned subsidiary of the Company entered into a $13.7 million loan to finance the construction of a hotel in Santa Rosa Beach, Florida (the “Topsail Hotel Loan”). The loan provides for interest only payments for the first thirty-six months and principal and interest payments thereafter with a final balloon payment at maturity in July 2027. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Topsail Hotel Loan.

In 2018, a wholly-owned subsidiary of the Company entered into a $1.7 million loan to finance the construction of two beach homes located in Panama City Beach, Florida (the “Beach Homes Loan”). The loan provides for monthly principal and interest payments with a final balloon payment at maturity in May 2029. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the Beach Homes Loan.

In 2017, a wholly-owned subsidiary of the Company entered into a $1.6 million loan to finance the construction of a commercial leasing property located in Panama City Beach, Florida (the “Pier Park Outparcel Loan”). The loan provides for monthly principal and interest payments with a final balloon payment at maturity in March 2027. The loan is secured by the real property and certain other Security Interests.

In 2018, a wholly-owned subsidiary of the Company entered into a $1.9 million loan to finance the construction of a commercial leasing property located in Santa Rosa Beach, Florida (the “WaterColor Crossings Loan”). The loan provides for monthly principal and interest payments with a final balloon payment at maturity in February 2029. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the payment and performance of the borrower under the WaterColor Crossings Loan.

The Company’s financing agreements are subject to various customary debt covenants and as of both September 30, 2022 and December 31, 2021, the Company was in compliance with the financial debt covenants.

As of September 30, 2022, assets that were pledged as collateral related to the Company’s debt agreements, including unfunded commitments, had an approximate carrying amount of $469.3 million. These assets are included within investment in real estate, net and property and equipment, net on the condensed consolidated balance sheets.

The aggregate maturities of debt subsequent to September 30, 2022, for the years ending December 31 are:

2022	$	716
2023		5,268
2024		66,599
2025		64,377
2026		5,490
Thereafter		184,354
	$	326,804

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Other Liabilities

9 Months Ended

Sep. 30, 2022

Other Liabilities

Other Liabilities

11. Other Liabilities

Other liabilities consist of the following:

	September 30,		December 31,
	2022		2021
Accounts payable	$	61,249	$	48,597
Income tax payable		—		681
Finance lease liabilities		301		380
Operating lease liabilities		761		732
Accrued compensation		5,138		4,877
Other accrued liabilities		8,367		4,126
Club membership deposits		3,485		3,602
Advance deposits		3,324		2,140
Accrued interest expense for Senior Notes held by SPE		713		2,850
Total other liabilities	$	83,338	$	67,985

Accounts payable as of September 30, 2022 and December 31, 2021, includes payables for projects under development and construction such as the Embassy Suites by Hilton hotel, the Camp Creek Inn and amenity center, Watersound Town Center, the Watersound Origins residential community and Mexico Beach Crossings.

Other accrued liabilities include $5.2 million and $0.2 million of accrued property taxes as of September 30, 2022 and December 31, 2021, respectively, which are generally paid annually in November.

Advance deposits consist of deposits received on hotel rooms and related hospitality activities. Advance deposits are recorded as other liabilities in the condensed consolidated balance sheets without regard to whether they are refundable and are recognized as income at the time the service is provided for the related deposit.

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Deferred Revenue

9 Months Ended

Sep. 30, 2022

Deferred Revenue

Deferred Revenue

12. Deferred Revenue

As of September 30, 2022 and December 31, 2021, deferred revenue includes club initiation fees of $25.0 million and $22.9 million, respectively, and other deferred revenue of $14.3 million and $13.4 million, respectively.

Club initiation fees are recognized as revenue over the estimated average duration of membership, which is evaluated periodically. The following table presents the changes in club initiation fees related to contracts with customers:

	September 30, 2022		September 30, 2021
Balance at beginning of period	$	22,850	$	10,716
New club memberships		7,335		12,283
Revenue from amounts included in contract liability opening balance		(4,663)		(2,310)
Revenue from current period new memberships		(535)		(866)
Balance at end of period	$	24,987	$	19,823

Remaining performance obligations represent contracted revenue that has not been recognized related to club initiation fees. As of September 30, 2022, remaining performance obligations were $25.0 million, of which the Company expects to recognize as revenue $1.5 million in 2022, $11.2 million in 2023 through 2024, $9.3 million in 2025 through 2026 and $3.0 million thereafter.

Other deferred revenue as of both September 30, 2022 and December 31, 2021, includes $10.9 million related to a 2006 agreement pursuant to which the Company agreed to sell land to the Florida Department of Transportation. Revenue is recognized when title to a specific parcel is legally transferred.

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Income Taxes

9 Months Ended

Sep. 30, 2022

Income Taxes

Income Taxes

13. Income Taxes

Income tax expense attributable to income from operations differed from the amount computed by applying the statutory federal income tax rate of 21% as of September 30, 2022 and 2021 to pre-tax income as a result of the following:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Tax at the federal statutory rate	$	3,467	$	4,543	$	12,063	$	12,139
State income taxes (net of federal benefit)		799		340		2,703		1,614
Change in state tax rate		—		1,392		—		1,308
Tax credits		(70)		(63)		(179)		(156)
Other		(33)		217		56		275
Total income tax expense	$	4,163	$	6,429	$	14,643	$	15,180

As of September 30, 2022, the Company had income tax receivable of $1.6 million included within other assets on the condensed consolidated balance sheets. As of December 31, 2021, the Company had income tax payable of $0.7 million included within other liabilities on the condensed consolidated balance sheets.

On September 14, 2021, the State of Florida announced the reduction of the 2021 corporate tax rate from 4.5% to 3.5% retroactive to the beginning of 2021. The corporate income tax rate has reverted to 5.5% for tax year 2022 and years forward.

The Inflation Reduction Act (“IRA”) was signed into law on August 16, 2022. The IRA extended the Internal Revenue Code Section 45L credit, a credit related to energy efficiency in both single family and multi-family homes, to tax year 2032 with retroactive effect to tax year 2022. While the tax year 2022 credit is the same as in years prior on a per unit basis, the credit is increased marginally for tax years 2023 forward.

In general, a valuation allowance is recorded if, based on all available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of the Company’s deferred tax assets is dependent upon the Company generating sufficient taxable income in future years in the appropriate tax jurisdictions to obtain a benefit from the reversal of deductible temporary differences and from loss

carryforwards. As of both September 30, 2022 and December 31, 2021, the Company’s valuation allowance was $0.3 million.

Significant judgment is required in evaluating the Company's uncertain tax positions and determining its provision for income taxes. The Company regularly assesses the likelihood of adverse outcomes resulting from potential examinations to determine the adequacy of its provision for income taxes and applies a “more-likely-than-not” in determining the financial statement recognition and measurement of a tax position taken or expected to be taken in the tax returns. The Company has not identified any material unrecognized tax benefits as of either September 30, 2022 or December 31, 2021.

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Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2022

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Loss

14. Accumulated Other Comprehensive Income (Loss)

Following is a summary of the changes in the balances of accumulated other comprehensive (loss) income, which is presented net of tax:

	Unrealized Loss		Unrealized
	on Available-for-		(Loss) Gain
	Sale Securities		Cash Flow Hedges		Total
Accumulated other comprehensive loss as of December 31, 2021	$	(7)	$	(382)	$	(389)
Other comprehensive (loss) income before reclassifications		(512)		4,191		3,679
Amounts reclassified from accumulated other comprehensive income		—		112		112
Other comprehensive (loss) income		(512)		4,303		3,791
Less: Other comprehensive income attributable to non-controlling interest		—		(1,355)		(1,355)
Accumulated other comprehensive (loss) income as of September 30, 2022	$	(519)	$	2,566	$	2,047

Following is a summary of the tax effects allocated to other comprehensive income:

	Three Months Ended September 30, 2022
	Before-		Tax Benefit or		Net-of-
	Tax Amount		(Expense)		Tax Amount
Unrealized loss on available-for-sale investments	$	(31)	$	8	$	(23)
Interest rate swap		1,427		(253)		1,174
Interest rate swap - unconsolidated affiliate		307		(78)		229
Reclassification adjustment for net loss included in earnings		15		(4)		11
Net unrealized gain		1,718		(327)		1,391
Other comprehensive income	$	1,718	$	(327)	$	1,391

	Three Months Ended September 30, 2021
	Before-		Tax		Net-of-
	Tax Amount		Expense		Tax Amount
Unrealized gain on available-for-sale investments	$	3	$	(1)	$	2
Interest rate swap		301		(76)		225
Interest rate swap - unconsolidated affiliate		(1)		—		(1)
Reclassification adjustment for net loss included in earnings		154		(39)		115
Net unrealized gain		457		(116)		341
Other comprehensive income	$	457	$	(116)	$	341

	Nine Months Ended September 30, 2022
	Before-		Tax Benefit		Net-of-
	Tax Amount		(Expense)		Tax Amount
Unrealized loss on available-for-sale investments	$	(686)	$	174	$	(512)
Interest rate swaps		4,540		(808)		3,732
Interest rate swap - unconsolidated joint venture		615		(156)		459
Reclassification adjustment for net loss included in earnings		150		(38)		112
Net unrealized gain		4,619		(828)		3,791
Other comprehensive income	$	4,619	$	(828)	$	3,791

	Nine Months Ended September 30, 2021
	Before-		Tax		Net-of-
	Tax Amount		Expense		Tax Amount
Unrealized loss on available-for-sale investments	$	(1)	$	—	$	(1)
Interest rate swaps		410		(104)		306
Interest rate swap - unconsolidated joint venture		133		(34)		99
Reclassification adjustment for net loss included in earnings		251		(63)		188
Net unrealized gain		793		(201)		592
Other comprehensive income	$	793	$	(201)	$	592

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Stockholders' Equity

9 Months Ended

Sep. 30, 2022

Stockholders' Equity

Stockholders' Equity

15. Stockholders’ Equity

Dividends

During the three months ended September 30, 2022 and 2021, the Company paid cash dividends of $0.10 and $0.08, respectively, per share on the Company’s common stock for a total of $5.9 million and $4.7 million, respectively. During the nine months ended September 30, 2022 and 2021, the Company paid cash dividends of $0.30 and $0.24, respectively, per share on the Company’s common stock for a total of $17.7 million and $14.1 million, respectively.

Stock Repurchase Program

The Company’s Board approved a stock repurchase program (the “Stock Repurchase Program”) pursuant to which the Company is authorized to repurchase shares of its common stock. The program has no expiration date.

During the three months ended September 30, 2022, the Company repurchased 572,203 shares of its common stock outstanding at an average purchase price of $34.78, per share for an aggregate purchase price of $19.8 million. During the nine months ended September 30, 2022, the Company repurchased 576,963 shares of its common stock outstanding at an average purchase price of $34.81, per share for an aggregate purchase price of $20.0 million. During the three and nine months ended September 30, 2021, the Company did not repurchase shares of its common stock outstanding. As of September 30, 2022, the Company had a total authority of $80.0 million available for purchase of shares of its common stock. The Company may repurchase its common stock in open market purchases from time to time, in privately negotiated transactions or otherwise, pursuant to Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The timing and amount of any additional shares to be repurchased will depend upon a variety of factors. Repurchases may be commenced or suspended at any time or from time to time without prior notice. The Stock Repurchase Program will continue until otherwise modified or terminated by the Company’s Board at any time in its sole discretion.

Issuance of Common Stock for Employee Compensation

On February 22, 2022, the Company granted 25,594 restricted stock awards to certain employees pursuant to the 2015 Performance and Equity Incentive Plan (the “2015 Plan”). The restricted shares will vest in equal annual installments on the first, second and third annual anniversary of the grant date, subject to the recipient’s continued

employment through and on the applicable vesting date. The weighted average grant date fair value of the restricted shares during the nine months ended September 30, 2022 was $46.73.

On April 8, 2022, the Company granted 4,361 restricted stock awards to an employee pursuant to the 2015 Plan. The restricted shares will vest in January 2030, subject to the recipient’s continued employment through and on the applicable vesting date. The weighted average grant date fair value of the restricted shares during the nine months ended September 30, 2022 was $55.73.

Stock based compensation cost is measured at the grant date based on the fair value of the award and is typically recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. Forfeitures are accounted for as they occur. During the three and nine months ended September 30, 2022, the Company recorded expense of $0.1 million and $0.3 million, respectively, related to restricted stock awards. During the three and nine months ended September 30, 2021, the Company did not have expense related to restricted stock awards. During the three and nine months ended September 30, 2022 and 2021, there were no restricted shares vested or forfeited.

As of September 30, 2022, there was $1.2 million of unrecognized compensation cost, related to non-vested restricted shares which will be recognized over a weighted average period of 3.4 years.

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Revenue Recognition

9 Months Ended

Sep. 30, 2022

Revenue Recognition

Revenue Recognition

16. Revenue Recognition

Revenue consists primarily of real estate sales, hospitality operations, leasing operations and timber sales. Taxes collected from customers and remitted to governmental authorities (e.g., sales tax) are excluded from revenue, costs and expenses. The following represents revenue disaggregated by segment, good or service and timing:

	Three Months Ended September 30, 2022
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	15,045	$	—	$	1,464	$	821	$	17,330
Hospitality revenue		—		28,843		192		—		29,035
Leasing revenue		5		204		9,800		40		10,049
Timber revenue		—		—		1,162		—		1,162
Total revenue	$	15,050	$	29,047	$	12,618	$	861	$	57,576
Timing of Revenue Recognition:
Recognized at a point in time	$	15,045	$	21,573	$	2,818	$	821	$	40,257
Recognized over time		—		7,270		—		—		7,270
Over lease term		5		204		9,800		40		10,049
Total revenue	$	15,050	$	29,047	$	12,618	$	861	$	57,576

	Three Months Ended September 30, 2021
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	21,603	$	—	$	1,560	$	337	$	23,500
Hospitality revenue		—		21,937		355		—		22,292
Leasing revenue		45		20		7,076		5		7,146
Timber revenue		—		—		1,058		—		1,058
Total revenue	$	21,648	$	21,957	$	10,049	$	342	$	53,996
Timing of Revenue Recognition:
Recognized at a point in time	$	21,603	$	16,729	$	2,973	$	337	$	41,642
Recognized over time		—		5,208		—		—		5,208
Over lease term		45		20		7,076		5		7,146
Total revenue	$	21,648	$	21,957	$	10,049	$	342	$	53,996

	Nine Months Ended September 30, 2022
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	70,724	$	—	$	9,581	$	1,827	$	82,132
Hospitality revenue		—		74,391		521		—		74,912
Leasing revenue		50		263		27,800		102		28,215
Timber revenue		—		—		5,438		—		5,438
Total revenue	$	70,774	$	74,654	$	43,340	$	1,929	$	190,697
Timing of Revenue Recognition:
Recognized at a point in time	$	70,724	$	53,563	$	15,540	$	1,827	$	141,654
Recognized over time		—		20,828		—		—		20,828
Over lease term		50		263		27,800		102		28,215
Total revenue	$	70,774	$	74,654	$	43,340	$	1,929	$	190,697

	Nine Months Ended September 30, 2021
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	74,670	$	—	$	9,771	$	1,174	$	85,615
Hospitality revenue		—		57,374		612		—		57,986
Leasing revenue		129		39		18,920		24		19,112
Timber revenue		—		—		4,827		—		4,827
Total revenue	$	74,799	$	57,413	$	34,130	$	1,198	$	167,540
Timing of Revenue Recognition:
Recognized at a point in time	$	74,670	$	43,610	$	15,210	$	1,174	$	134,664
Recognized over time		—		13,764		—		—		13,764
Over lease term		129		39		18,920		24		19,112
Total revenue	$	74,799	$	57,413	$	34,130	$	1,198	$	167,540

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Other Income, Net

9 Months Ended

Sep. 30, 2022

Other Income, Net

Other Income, Net

17. Other Income, Net

Other income (expense), net consists of the following:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Investment income, net
Interest, dividend and accretion income	$	355	$	52	$	732	$	103
Net realized gain on the sale of investments		—		—		—		17
Unrealized gain (loss) on investments, net		31		63		91		(1,947)
Interest income from investments in SPEs		2,003		2,003		6,009		6,075
Interest earned on notes receivable and other interest		346		213		699		565
Total investment income, net		2,735		2,331		7,531		4,813
Interest expense
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE		(2,211)		(2,207)		(6,629)		(6,619)
Other interest expense		(2,516)		(1,907)		(6,322)		(5,020)
Total interest expense		(4,727)		(4,114)		(12,951)		(11,639)
Gain on contributions to unconsolidated joint ventures		1,430		—		2,001		3,290
Other income (expense), net
Accretion income from retained interest investments		412		392		1,262		1,129
Gain on insurance recovery		875		2,540		4,186		3,924
Loss from hurricane damage		(7)		(11)		(51)		(26)
Miscellaneous income, net		848		4,408		648		4,568
Other income, net		2,128		7,329		6,045		9,595
Total other income, net	$	1,566	$	5,546	$	2,626	$	6,059

Investment Income, Net

Interest, dividend and accretion income includes interest income accrued or received on the Company’s investments and amortization of the premium or accretion of discount related to the Company’s available-for-sale securities, which is amortized based on an effective interest rate method over the term of the available-for-sale securities. Net realized gain on the sale of investments include the gains or losses recognized on the sale of available-for-sale and equity securities prior to maturity. Unrealized gain (loss) on investments, net includes unrealized gains or losses on investments - equity securities.

Interest income from investments in SPEs primarily includes interest earned on the investments held by Panama City Timber Finance Company, LLC, which is used to pay the interest expense for Senior Notes held by Northwest Florida Timber Finance, LLC.

Interest Expense

Interest expense includes interest incurred related to the Company’s Senior Notes issued by Northwest Florida Timber Finance, LLC, project financing, CDD debt and finance leases. Interest expense also includes amortization of debt discount and premium and debt issuance costs. Discount and issuance costs for the Senior Notes issued by Northwest Florida Timber Finance, LLC, are amortized based on the effective interest method at an effective rate of 4.9%.

During the three months ended September 30, 2022 and 2021, the Company capitalized $0.9 million and $0.2 million, respectively, in interest related to projects under development or construction. During the nine months ended September 30, 2022 and 2021, the Company capitalized $1.8 million and $0.9 million, respectively, in interest related to projects under development or construction. These amounts are included within investment in real estate, net on the Company’s condensed consolidated balance sheets.

Gain on Contributions to Unconsolidated Joint Ventures

Gain on contributions to unconsolidated joint ventures for the three and nine months ended September 30, 2022, include a gain of $1.4 million on land and impact fees contributed to the Company’s unconsolidated Pier Park RI JV. The three and nine months ended September 30, 2022, also include a gain of $0.1 million and $0.2 million, respectively, on additional infrastructure improvements contributed to the Company’s unconsolidated Latitude Margaritaville Watersound JV. The nine months ended September 30, 2022, also include a gain of $0.4 million on land contributed to the Company’s unconsolidated Electric Cart Watersound JV. The Company did not have any gain on contributions to unconsolidated joint ventures during the three months ended September 30, 2021. The nine months ended September 30, 2021, include a gain of $3.1 million on land contributed to the Company’s unconsolidated Watersound Fountains Independent Living JV. The nine months ended September 30, 2021, also include a gain of $0.2 million on additional infrastructure improvements contributed to the Company’s unconsolidated Latitude Margaritaville Watersound JV. See Note 4. Joint Ventures for additional information.

Other Income, Net

Other income, net primarily includes income from the Company’s retained interest investments, gain on insurance recovery, loss from hurricane damage and other income and expense items. The Company records the accretion of investment income from its retained interest investment over the life of the retained interest using the effective yield method with rates ranging from 4.8% to 12.7%. During the three and nine months ended September 30, 2022, the Company had a gain on insurance recovery of $0.9 million and $4.2 million, respectively, and incurred loss from hurricane damage of less than $0.1 million, during each period, related to Hurricane Michael. During the three and nine months ended September 30, 2021, the Company had a gain on insurance recovery of $2.5 million and $3.9 million, respectively, and incurred loss from hurricane damage of less than $0.1 million, during each period, related to Hurricane Michael. See Note 7. Hurricane Michael for additional information.

Miscellaneous income, net during the three and nine months ended September 30, 2022, includes income of $0.3 million and $1.0 million, respectively, related to a gain on retained interest investment. Miscellaneous income, net includes $0.8 million and $0.9 million during the three months ended September 30, 2022 and 2021, respectively, and $1.8 million and $0.9 million during the nine months ended September 30, 2022 and 2021, respectively, received from the Pier Park CDD for repayment of subordinated notes. Miscellaneous income, net during the nine months ended September 30, 2022, also includes expenses of $1.1 million for design costs no longer pursued and $0.6 million for a homeowner’s association special assessment. Miscellaneous income, net during the three and nine months ended September 30, 2021, includes $3.6 million the Company received from the Florida Division of Emergency Management’s Florida Timber Recovery Block Grant Program (“TRBG”) for recovery of lost income related to timber crop that was destroyed as a result of Hurricane Michael. See Note 7. Hurricane Michael for additional information.

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Segment Information

9 Months Ended

Sep. 30, 2022

Segment Information

Segment Information

18. Segment Information

The Company conducts primarily all of its business in the following three reportable segments: (1) residential, (2) hospitality and (3) commercial. The Company’s reportable segments are strategic business units that offer different products and services. They are each managed separately and decisions about allocations of resources are determined by management based on these strategic business units. The Company uses income before equity in income (loss) from unconsolidated joint ventures, income taxes and non-controlling interest and other qualitative measures for purposes of making decisions about allocating resources to each segment and assessing each segment’s performance, which the Company believes represents current performance measures.

The accounting policies of the segments are set forth in Note 2 to the Company’s consolidated financial statements contained in Item 15 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Total revenue represents sales to unaffiliated customers, as reported in the Company’s condensed consolidated statements of income. All significant intercompany transactions have been eliminated in consolidation. The caption entitled “Other” consists of mitigation credit, title and insurance business revenue and cost of revenue; corporate operating expenses; corporate depreciation and amortization and corporate other income and expense items.

Information by business segment is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Operating revenue:
Residential	$	15,050	$	21,648	$	70,774	$	74,799
Hospitality		29,047		21,957		74,654		57,413
Commercial		12,618		10,049		43,340		34,130
Other		861		342		1,929		1,198
Consolidated operating revenue	$	57,576	$	53,996	$	190,697	$	167,540
Income (loss) before equity in income (loss) from unconsolidated joint ventures and income taxes:
Residential	$	8,473	$	12,817	$	36,073	$	41,014
Hospitality		4,404		4,195		9,187		9,901
Commercial (a) (b) (c) (d)		1,992		4,623		11,533		14,867
Other (e)		(1,126)		72		(2,961)		(7,273)
Consolidated income before equity in income (loss) from unconsolidated joint ventures and income taxes	$	13,743	$	21,707	$	53,832	$	58,509

(a) The three and nine months ended September 30, 2022, includes a gain of $1.4 million on land and impact fees contributed to the unconsolidated Pier Park RI JV. See Note 4. Joint Ventures and Note 17. Other Income, Net for additional information.

(b) The nine months ended September 30, 2022, includes a gain of $0.4 million on land contributed to the unconsolidated Electric Cart Watersound JV. See Note 4. Joint Ventures and Note 17. Other Income, Net for additional information.

(c) The three and nine months ended September 30, 2021, includes $3.6 million the Company received from the Florida Division of Emergency Management’s TRBG program. See Note 7. Hurricane Michael for additional information.

(d) The nine months ended September 30, 2021, includes a gain of $3.1 million on land contributed to the Watersound Fountains Independent Living JV. See Note 4. Joint Ventures and Note 17. Other Income, Net for additional information.

(e) Includes gain on insurance recovery of $0.9 million and $2.5 million during the three months ended September 30, 2022 and 2021, respectively, and gain on insurance recovery of $4.2 million and $3.9 million during the nine months ended September 30, 2022 and 2021, respectively, related to Hurricane Michael. See Note 7. Hurricane Michael for additional information.

	September 30,		December 31,
	2022		2021
Total assets:
Residential	$	213,301	$	192,290
Hospitality		347,330		256,751
Commercial		457,538		378,118
Other		321,371		380,992
Total assets	$	1,339,540	$	1,208,151

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2022

Commitments and Contingencies

Commitments and Contingencies

19. Commitments and Contingencies

The Company establishes an accrued liability when it is both probable that a material loss has been incurred and the amount of the loss can be reasonably estimated. The Company will evaluate the range of reasonably estimated losses and record an accrued liability based on what it believes to be the minimum amount in the range, unless it believes an amount within the range is a better estimate than any other amount. In such cases, there may be an exposure to loss in excess of the amounts accrued. The Company evaluates quarterly whether further developments could affect the amount of the accrued liability previously established or would make a loss contingency both probable and reasonably estimable.

The Company also provides disclosure when it believes it is reasonably possible that a material loss will be incurred or when it believes it is reasonably possible that the amount of a loss will exceed the recorded liability. The Company reviews loss contingencies at least quarterly to determine whether the likelihood of loss has changed and to assess whether a reasonable estimate of the loss or range of loss can be made. This estimated range of possible losses is based

upon currently available information and is subject to significant judgment and a variety of assumptions, as well as known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary significantly from the current estimate.

The Company is subject to a variety of litigation, claims, other disputes and governmental proceedings that arise from time to time in the ordinary course of its business, including litigation related to its prior homebuilding and development activities. The Company cannot make assurances that it will be successful in defending these matters. Based on current knowledge, the Company does not believe that loss contingencies arising from pending litigation, claims, other disputes and governmental proceedings, including those described herein, will have a material adverse effect on the consolidated financial position or liquidity of the Company. However, in light of the inherent uncertainties involved in these matters, an adverse outcome in one or more of these matters could be material to the Company’s results of operations or cash flows for any particular reporting period.

The Company is subject to costs arising out of environmental laws and regulations, which include obligations to remove or limit the effects on the environment of the disposal or release of certain wastes or substances at various sites, including sites which have been previously sold. It is the Company’s policy to accrue and charge against earnings environmental cleanup costs when it is probable that a liability has been incurred and a range of loss can be reasonably estimated. As assessments and cleanups proceed, these accruals are reviewed and adjusted, if necessary, as additional information becomes available. The Company is in the process of assessing certain properties in regard to the effects, if any, on the environment from the disposal or release of wastes or substances. Management is unable to quantify future rehabilitation costs above present accruals at this time or provide a reasonably estimated range of loss.

Other litigation, claims and disputes, including environmental matters, are pending against the Company. Accrued aggregate liabilities related to the matters described above and other litigation matters were $0.4 million as of both September 30, 2022 and December 31, 2021. Significant judgment is required in both the determination of probability and whether the amount of an exposure is reasonably estimable. Due to uncertainties related to these matters, accruals are based only on the information available at the time. As additional information becomes available, management reassesses potential liabilities related to pending claims and litigation and may revise its previous estimates, which could materially affect the Company’s results of operations for any particular reporting period.

The Company has retained certain self-insurance risks with respect to losses for third party liability and property damage, including its timber assets.

In June 2020, the Company, as lender, entered into a $10.0 million secured revolving promissory note with the unconsolidated Latitude Margaritaville Watersound JV, as borrower. As of September 30, 2022, there was no balance outstanding on the Latitude JV Note. As of December 31, 2021, $7.1 million was outstanding on the Latitude JV Note. The Latitude JV Note was provided by the Company to finance the development of the pod-level, non-spine infrastructure. Future advances, if any, will be repaid by the JV as each home is sold by the JV, with the aggregate unpaid principal and all accrued and unpaid interest due at maturity in June 2025. The note is secured by a mortgage and security interest in and on the real property and improvements located on the real property of the JV. See Note 4. Joint Ventures and Note 9. Other Assets for additional information.

As of September 30, 2022 and December 31, 2021, the Company was required to provide surety bonds that guarantee completion and maintenance of certain infrastructure in certain development projects and mitigation banks, as well as other financial guarantees of $36.7 million and $36.9 million, respectively, as well as standby letters of credit in the amount of $19.4 million and $12.9 million, respectively, which may potentially result in liability to the Company if certain obligations of the Company are not met.

As of September 30, 2022, the Company had a total of $169.0 million in construction and development related contractual obligations, of which a significant portion will be funded through committed or new financing arrangements.

In 2019, the Company’s unconsolidated Pier Park TPS JV, entered into a $14.4 million loan (the “Pier Park TPS JV Loan”). The loan bears interest at LIBOR plus 2.5% and provides for monthly principal and interest payments with a final balloon payment at maturity in January 2026. The loan is secured by the real and personal property and certain

other Security Interests. In connection with the loan, the Company, a wholly-owned subsidiary of the Company and the Company’s JV partner entered into a joint and several payment and performance guarantee in favor of the lender. The Company’s liability as guarantor under the Pier Park TPS JV Loan has been reduced to 25% of the outstanding principal amount, which requires maintaining a certain debt service coverage. The guarantee contains customary provisions providing for full recourse upon the occurrence of certain events. The Pier Park TPS JV entered into an interest rate swap to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR. The interest rate swap matures on January 14, 2026 and fixed the variable rate on the related debt, initially at $14.4 million to a rate of 5.2%. As of September 30, 2022 and December 31, 2021, $13.9 million and $14.1 million, respectively, was outstanding on the Pier Park TPS JV Loan. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

In November 2020, the Company’s unconsolidated Latitude Margaritaville Watersound JV, entered into a $25.0 million loan (the “Latitude Margaritaville Watersound JV Loan”). The loan bears interest at LIBOR plus 2.5%, with a floor of 3.3%. The loan provides for monthly interest payments with a final balloon payment at maturity in November 2023 and includes annual maturity extension rights for a total of three additional years, subject to bank approval. The loan is secured by the real and personal property and certain other Security Interests. In connection with the loan, the Company and the Company’s JV partner entered into an unconditional guaranty of completion of certain homes in favor of the lender. As of September 30, 2022, $11.8 million was outstanding on the Latitude Margaritaville Watersound JV Loan. As of December 31, 2021, there was no principal balance outstanding on the Latitude Margaritaville Watersound JV Loan.

In April 2021, the Company’s unconsolidated Watersound Fountains Independent Living JV, entered into a $41.9 million loan (the “Watersound Fountains JV Loan”). The loan bears interest at LIBOR plus 2.0%, with a floor of 2.5%. The loan provides for interest only payments for the first forty-eight months and principal and interest payments thereafter with a final balloon payment at maturity in April 2026. The loan includes an option for an extension of the maturity date by twelve months, subject to certain conditions, which would provide for continued monthly principal and interest payments with a final balloon payment at the extended maturity date. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company executed a guarantee in favor of the lender to guarantee the completion of the project and payment and performance of the borrower under the Watersound Fountains JV Loan. The Company’s liability as guarantor under the loan will be reduced to 50% of the outstanding principal amount upon issuance of the certificate of occupancy and reduced to 25% and a further 0% of the outstanding principal balance upon reaching and maintaining certain debt service coverage. The guarantee contains customary provisions providing for full recourse upon the occurrence of certain events. The Company is the sole guarantor and receives a quarterly fee related to the guarantee from its JV partners based on the JV partners’ ownership percentage. As of September 30, 2022 and December 31, 2021, $18.8 million and $0.1 million, respectively, was outstanding on the Watersound Fountains JV Loan.

In September 2022, the Company’s unconsolidated Electric Cart Watersound JV, entered into a $5.4 million loan (the “Electric Cart Watersound JV Loan”). The loan bears interest at SOFR plus 1.8%, with a floor of 2.1%. The loan provides for interest only payments for the first twenty-four months and principal and interest payments thereafter with a final balloon payment at maturity in September 2032. The loan is secured by the real property and certain other Security Interests. In connection with the loan, the Company, a wholly-owned subsidiary of the Company and the Electric Cart Watersound JV entered into a joint and several payment and performance guarantee in favor of the lender. After the initial forty-eight months of the loan, the Company’s liability as guarantor under the loan will be reduced to 50% of the outstanding principal balance upon reaching a certain debt service coverage and other conditions. The Company is the sole guarantor and receives a quarterly fee related to the guarantee from its JV partner based on the JV partner’s ownership percentage. As of September 30, 2022, $0.6 million was outstanding on the Electric Cart Watersound JV Loan.

The Company has assessed the need to record a liability for the guarantees related to the Company’s unconsolidated JVs and did not record an obligation as of both September 30, 2022 and December 31, 2021. As of both September 30, 2022 and December 31, 2021, allowance for credit losses related to the contingent aspect of these guarantees, based on historical experience and economic trends, was $0.1 million and is included within other liabilities on the condensed consolidated balance sheets.

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Subsequent Event

9 Months Ended

Sep. 30, 2022

Subsequent Event

Subsequent Event

20. Subsequent Event

On October 26, 2022, the Company’s Board of Directors declared a cash dividend of $0.10 per share on the Company’s common stock, payable on December 9, 2022 to shareholders of record at the close of business on November 10, 2022.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2022

Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

Basis of Presentation and Principles of Consolidation

The accompanying unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for reporting on Form 10-Q. Accordingly, certain information and footnotes required by United States generally accepted accounting principles (“GAAP”) for complete financial statements are not included herein. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all of its majority-owned and controlled subsidiaries, voting interest entities where the Company has a majority voting interest or control and variable interest entities where the Company deems itself the primary beneficiary. Investments in joint ventures (“JV”) and limited partnerships in which the Company is not the primary beneficiary, or a voting interest entity where the Company does not have a majority voting interest or control, are accounted for by the equity method. All significant intercompany transactions and balances have been eliminated in consolidation. The December 31, 2021 condensed consolidated balance sheet amounts have been derived from the Company’s December 31, 2021 audited consolidated financial statements. Certain prior period amounts in the accompanying condensed consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on the Company’s previously reported total assets and liabilities, stockholders’ equity or net income. Operating results for the nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022.

A variable interest entity (“VIE”) is an entity in which a controlling financial interest may be achieved through arrangements that do not involve voting interests. A VIE is required to be consolidated by its primary beneficiary, which is the entity that possesses the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to the VIE. The Company consolidates VIEs when it is the primary beneficiary of the VIE, including real estate JVs determined to be VIEs. The Company continues to evaluate whether it is the primary beneficiary as needed when assessing reconsideration events. See Note 4. Joint Ventures.

The unaudited interim condensed consolidated financial statements reflect all normal recurring adjustments that, in the opinion of management, are necessary for fair presentation of the information contained herein. The unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. The Company adheres to the same accounting policies in preparation of its unaudited interim condensed consolidated financial statements as the Company’s December 31, 2021 annual financial statements, except for any recently adopted accounting pronouncements. As required under GAAP, interim accounting for certain expenses, including income taxes, are based on full year assumptions. For interim financial reporting purposes, income taxes are recorded based upon estimated annual income tax rates.

Concentration of Risks and Uncertainties

Concentration of Risks and Uncertainties

All of the Company’s real estate investments are concentrated in Northwest Florida. Uncertain economic conditions could have an adverse impact on the Company’s operations and asset values.

Throughout the first nine months of 2022, the Company continued to generate positive financial results. While macro-economic factors such as inflation, rising interest rates, supply chain disruptions, geopolitical conflicts and the continuing recovery from the COVID-19 pandemic, among other things, have created economic headwinds and impacted buyer sentiment, demand across the Company’s segments remains strong. The Company believes this is primarily the result of the continued growth of Northwest Florida, which the Company attributes to the region’s high quality of life, natural beauty and outstanding amenities, as well as the evolving flexibility in the workplace.

Despite the strong demand across the Company’s segments, the Company also continues to feel the impact from the aforementioned macro-economic factors, including supply chain disruptions and cost increases, which, for example, have extended homesite and home deliveries in certain residential communities and increased operating costs. However, these delays generally have not resulted in increased cancellation rates, and therefore only impact the timing of revenue recognition. In addition, given the diverse portfolio of residential holdings, the mix of sales from different communities may impact revenue and margins period over period.

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, investments, other receivables, investments held by special purpose entity or entities (“SPE”) and investments in retained interests. The Company deposits and invests cash with local, regional and national financial institutions, and as of September 30, 2022, these balances exceeded the amount of F.D.I.C. insurance provided on such deposits. In addition, as of September 30, 2022 the Company had $1.1 million invested in U.S. Treasury Money Market Funds, $74.0 million invested in U.S. Treasury Bills classified as investments – debt securities, and $0.3 million invested in two issuers of preferred stock that are non-investment grade.

Earnings Per Share

Earnings Per Share

Basic earnings per share is calculated by dividing net income attributable to the Company by the basic weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income attributable to the Company by the weighted average number of shares of common stock outstanding for the period, including potential dilutive common shares. The treasury stock method is used to determine the effect on diluted earnings. For each the three and nine months ended September 30, 2022, the Company had 29,955 unvested shares of restricted stock. For the three months ended September 30, 2022, 29,955 potentially dilutive common shares were excluded from the calculation of diluted income per share, since the effect would have been anti-dilutive based on the application of the treasury stock method. As of September 30, 2021, there were no outstanding common stock equivalents. For the three and nine months ended September 30, 2021, the Company did not have any potential dilutive instruments, therefore, basic and diluted weighted average shares outstanding were equal. See Note 15. Stockholders’ Equity for additional information related to the issuance of common stock for employee compensation.

The computation of basic and diluted earnings per share are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands except per share amounts)
Income
Net income attributable to the Company	$	12,347	$	15,196	$	42,798	$	42,616
Shares
Weighted average shares outstanding - basic		58,814,972		58,882,549		58,859,723		58,882,549
Incremental shares from restricted stock		—		—		1,717		—
Weighted average shares outstanding - diluted		58,814,972		58,882,549		58,861,440		58,882,549
Net income per share attributable to the Company
Basic income per share	$	0.21	$	0.26	$	0.73	$	0.72
Diluted income per share	$	0.21	$	0.26	$	0.73	$	0.72

Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

There were no recently adopted accounting pronouncements which would have a material effect on the Company’s financial condition, results of operations and cash flows.

Recently Issued Accounting Pronouncements

Reference Rate Reform

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting that provides temporary optional guidance to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. The new guidance provides expedients and exceptions for applying GAAP to contract modifications and hedging relationships affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference London Interbank Offered Rate (“LIBOR”) or another reference rate that is expected to be discontinued due to reference rate reform. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848) which clarifies the original guidance that certain optional expedients and exceptions in contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. This new guidance was effective upon issuance and may be applied prospectively through December 31, 2022, as reference rate activities occur. In June 2022, one of the Company’s debt agreements that referenced LIBOR was amended to an alternative rate, ASU 2020-04 was applied at the time of this modification and there was no impact on the Company’s financial condition, results of operations and cash flows. See Note 10. Debt, Net for additional information. There is no current additional impact to the Company from this guidance and the Company will consider the impact on its financial condition, results of operations and cash flows if there are additional modifications to existing agreements.

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Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2022

Summary of Significant Accounting Policies

Schedule of computation of basic and diluted earnings per share

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(Dollars in thousands except per share amounts)
Income
Net income attributable to the Company	$	12,347	$	15,196	$	42,798	$	42,616
Shares
Weighted average shares outstanding - basic		58,814,972		58,882,549		58,859,723		58,882,549
Incremental shares from restricted stock		—		—		1,717		—
Weighted average shares outstanding - diluted		58,814,972		58,882,549		58,861,440		58,882,549
Net income per share attributable to the Company
Basic income per share	$	0.21	$	0.26	$	0.73	$	0.72
Diluted income per share	$	0.21	$	0.26	$	0.73	$	0.72

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Investment in Real Estate (Table)

9 Months Ended

Sep. 30, 2022

Investment in Real Estate

Schedule of real estate, excluding unconsolidated JVs, by property type and segment

	September 30,		December 31,
	2022		2021
Development property:
Residential	$	153,299	$	122,404
Hospitality		187,406		137,089
Commercial		123,059		85,931
Other		3,451		3,232
Total development property		467,215		348,656
Operating property:
Residential		7,854		7,854
Hospitality		161,439		124,449
Commercial		339,096		296,193
Other		127		127
Total operating property		508,516		428,623
Less: Accumulated depreciation		91,935		87,166
Total operating property, net		416,581		341,457
Investment in real estate, net	$	883,796	$	690,113

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Joint Ventures (Tables)

9 Months Ended

Sep. 30, 2022

Joint Ventures

Schedule of financial information of unconsolidated joint ventures

	September 30,		December 31,
	2022		2021
Investment in unconsolidated joint ventures
Latitude Margaritaville Watersound JV	$	32,468	$	30,040
Sea Sound JV		9,454		10,333
Watersound Fountains Independent Living JV		7,508		7,508
Pier Park TPS JV		1,714		1,961
Pier Park RI JV (a)		4,263		—
Busy Bee JV		2,238		1,621
Electric Cart Watersound JV (b)		682		—
Watersound Management JV		538		564
Total investment in unconsolidated joint ventures	$	58,865	$	52,027
Outstanding debt of unconsolidated JVs
Latitude Margaritaville Watersound JV (c) (d)	$	11,795	$	7,147
Sea Sound JV		38,742		35,047
Watersound Fountains Independent Living JV (d)		18,755		66
Pier Park TPS JV (d)		13,898		14,124
Busy Bee JV		6,088		6,317
Electric Cart Watersound JV (d)		634		—
Total outstanding debt of unconsolidated JVs	$	89,912	$	62,701

(a) JV was formed in May 2022.

(b) JV was formed in February 2022.

(c) See Note 9. Other Assets for additional information on the $10.0 million secured revolving promissory note the Company entered into with the unconsolidated Latitude Margaritaville Watersound JV.

(d) See Note 19. Commitments and Contingencies for additional information.

The following table presents detail of the Company’s equity in income (loss) from unconsolidated JVs:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Equity in income (loss) from unconsolidated joint ventures
Latitude Margaritaville Watersound JV	$	2,181	$	(896)	$	2,504	$	(2,497)
Sea Sound JV		(59)		(71)		21		(104)
Pier Park TPS JV		114		279		217		651
Busy Bee JV		210		180		617		372
Electric Cart Watersound JV (a)		17		—		(3)		—
Watersound Management JV		18		7		59		8
Total equity in income (loss) from unconsolidated joint ventures	$	2,481	$	(501)	$	3,415	$	(1,570)

(a) JV was formed in February 2022.

Summarized balance sheets for the Company’s unconsolidated JVs are as follows:

	September 30, 2022
	Latitude Margaritaville Watersound JV			Sea Sound JV		Watersound Fountains Independent Living JV		Pier Park TPS JV		Pier Park RI JV		Busy Bee JV		Electric Cart Watersound JV		Watersound Management JV		Total
ASSETS
Investment in real estate	$	110,144	(a)	$	53,224	$	34,691	$	15,468	$	5,580	$	7,705	$	1,630	$	—	$	228,442
Cash and cash equivalents		4,185			1,508		279		1,092		2,953		1,231		232		87		11,567
Other assets		2,425			451		8		734		—		2,006		295		—		5,919
Total assets	$	116,754		$	55,183	$	34,978	$	17,294	$	8,533	$	10,942	$	2,157	$	87	$	245,928
LIABILITIES AND EQUITY
Debt, net	$	11,610		$	38,676	$	18,133	$	13,615	$	—	$	6,042	$	553	$	—	$	88,629
Other liabilities		74,785			713		2,889		251		7		424		267		—		79,336
Equity		30,359			15,794		13,956		3,428		8,526		4,476		1,337		87		77,963
Total liabilities and equity	$	116,754		$	55,183	$	34,978	$	17,294	$	8,533	$	10,942	$	2,157	$	87	$	245,928

(a) Investment in real estate includes the land contributed to the Latitude Margaritaville Watersound JV at the Company’s historical cost basis and additional completed infrastructure improvements.

	December 31, 2021
	Latitude Margaritaville Watersound JV			Sea Sound JV		Watersound Fountains Independent Living JV		Pier Park TPS JV		Pier Park RI JV (b)		Busy Bee JV		Electric Cart Watersound JV (c)		Watersound Management JV		Total
ASSETS
Investment in real estate	$	54,034	(a)	$	53,775	$	17,003	$	16,561	$	—	$	8,005	$	—	$	—	$	149,378
Cash and cash equivalents		12,541			760		240		1,913		—		855		—		138		16,447
Other assets		1,761			210		187		433		—		1,044		—		—		3,635
Total assets	$	68,336		$	54,745	$	17,430	$	18,907	$	—	$	9,904	$	—	$	138	$	169,460
LIABILITIES AND EQUITY
Debt, net	$	7,147		$	34,834	$	66	$	13,839	$	—	$	6,256	$	—	$	—	$	62,142
Other liabilities		36,419			2,653		3,408		1,147		—		405		—		—		44,032
Equity		24,770			17,258		13,956		3,921		—		3,243		—		138		63,286
Total liabilities and equity	$	68,336		$	54,745	$	17,430	$	18,907	$	—	$	9,904	$	—	$	138	$	169,460

(a) Investment in real estate includes the land contributed to the Latitude Margaritaville Watersound JV at the Company’s historical cost basis and additional completed infrastructure improvements.

(b) JV was formed in May 2022.

(c) JV was formed in February 2022.

Summarized statements of operations for the Company’s unconsolidated JVs are as follows:

	Three Months Ended September 30, 2022
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (a)		Busy Bee JV		Electric Cart Watersound JV		Watersound Management JV			Total
Total revenue	$	50,784	$	1,614	$	—	$	1,664	$	—	$	5,090	$	226	$	320	$	59,698
Expenses:
Cost of revenue		42,928		694		—		884		—		4,799		189		283		49,777
Other operating expenses		3,561		—		—		—		—		—		4		—		3,565
Depreciation and amortization		79		546		—		362		—		115		—		—		1,102
Total expenses		46,568		1,240		—		1,246		—		4,914		193		283		54,444
Operating income		4,216		374		—		418		—		176		33		37		5,254
Other (expense) income:
Interest expense		(56)		(470)		—		(189)		—		(41)		—		—		(756)
Other income (expense), net		4		(2)		—		7		—		293		—		—		302
Total other (expense) income		(52)		(472)		—		(182)		—		252		—		—		(454)
Net income (loss)	$	4,164	$	(98)	$	—	$	236	$	—	$	428	$	33	$	37	$	4,800

(a) The project is under construction with no income or loss for the three months ended September 30, 2022.

	Three Months Ended September 30, 2021
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (b)		Busy Bee JV		Electric Cart Watersound JV (c)		Watersound Management JV		Total
Total revenue	$	—	$	143	$	—	$	2,252	$	—	$	4,918	$	—	$	201	$	7,514
Expenses:
Cost of revenue		—		147		—		902		—		4,386		—		187		5,622
Other operating expenses		1,572		—		—		—		—		—		—		—		1,572
Depreciation and amortization		75		75		—		358		—		116		—		—		624
Total expenses		1,647		222		—		1,260		—		4,502		—		187		7,818
Operating (loss) income		(1,647)		(79)		—		992		—		416		—		14		(304)
Other expense:
Interest expense		(40)		(45)		—		(193)		—		(48)		—		—		(326)
Other income (expense), net		—		—		—		1		—		(51)		—		—		(50)
Total other expense		(40)		(45)		—		(192)		—		(99)		—		—		(376)
Net (loss) income	$	(1,687)	$	(124)	$	—	$	800	$	—	$	317	$	—	$	14	$	(680)

(a) The project was under construction with no income or loss for the three months ended September 30, 2021.

(b) The JV was formed in May 2022.

(c) The JV was formed in February 2022.

	Nine Months Ended September 30, 2022
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (a)		Busy Bee JV		Electric Cart Watersound JV		Watersound Management JV			Total
Total revenue	$	82,528	$	4,312	$	—	$	4,577	$	—	$	14,399	$	226	$	864	$	106,906
Expenses:
Cost of revenue		68,468		1,629		—		2,501		—		13,661		218		746		87,223
Other operating expenses		8,949		—		—		—		—		—		13		—		8,962
Depreciation and amortization		229		1,509		—		1,087		—		344		—		—		3,169
Total expenses		77,646		3,138		—		3,588		—		14,005		231		746		99,354
Operating income (loss)		4,882		1,174		—		989		—		394		(5)		118		7,552
Other (expense) income:
Interest expense		(166)		(1,131)		—		(566)		—		(132)		—		—		(1,995)
Other income (expense), net		4		(7)		—		11		—		995		—		—		1,003
Total other (expense) income		(162)		(1,138)		—		(555)		—		863		—		—		(992)
Net income (loss)	$	4,720	$	36	$	—	$	434	$	—	$	1,257	$	(5)	$	118	$	6,560

(a) The project is under construction with no income or loss for the nine months ended September 30, 2022.

	Nine Months Ended September 30, 2021
	Latitude Margaritaville Watersound JV		Sea Sound JV		Watersound Fountains Independent Living JV (a)		Pier Park TPS JV		Pier Park RI JV (b)		Busy Bee JV		Electric Cart Watersound JV (c)		Watersound Management JV		Total
Total revenue	$	—	$	164	$	—	$	5,473	$	—	$	12,452	$	—	$	263	$	18,352
Expenses:
Cost of revenue		—		217		—		2,311		—		11,365		—		247		14,140
Other operating expenses		4,508		—		—		—		—		—		—		—		4,508
Depreciation and amortization		135		76		—		1,075		—		347		—		—		1,633
Total expenses		4,643		293		—		3,386		—		11,712		—		247		20,281
Operating (loss) income		(4,643)		(129)		—		2,087		—		740		—		16		(1,929)
Other (expense) income:
Interest expense		(120)		(45)		—		(546)		—		(145)		—		—		(856)
Other income, net		—		—		—		4		—		205		—		—		209
Total other (expense) income		(120)		(45)		—		(542)		—		60		—		—		(647)
Net (loss) income	$	(4,763)	$	(174)	$	—	$	1,545	$	—	$	800	$	—	$	16	$	(2,576)

(a) The project was under construction with no income or loss for the nine months ended September 30, 2021.

(b) The JV was formed in May 2022.

(c) The JV was formed in February 2022.

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Investments (Tables)

9 Months Ended

Sep. 30, 2022

Investments

Schedule of Investments

	September 30, 2022
			Gross Unrealized		Gross Unrealized
	Amortized Cost		Gains		(Losses)		Fair Value
Investments - debt securities:
U.S. Treasury Bills	$	74,731	$	—	$	(698)	$	74,033

	December 31, 2021
			Gross Unrealized		Gross Unrealized
	Amortized Cost		Gains		(Losses)		Fair Value
Investments - debt securities:
U.S. Treasury Bills	$	88,966	$	1	$	(11)	$	88,956

Schedule of Unrealized Loss Position and Related Fair Value of Investments

	September 30, 2022								December 31, 2021
	Less Than 12 Months				12 Months or Greater				Less Than 12 Months				12 Months or Greater
			Unrealized				Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Investments - debt securities:
U.S. Treasury Bills	$	74,033	$	698	$	—	$	—	$	43,959	$	11	$	—	$	—

Schedule of Contractual Maturities of Investments

	September 30, 2022
	Amortized Cost		Fair Value
Due in one year or less	$	74,731	$	74,033

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Financial Instruments and Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2022

Financial Instruments and Fair Value Measurements

Schedule of financial instruments measured at fair value on recurring basis

	September 30, 2022
							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents:
Money market funds	$	1,079	$	—	$	—	$	1,079
		1,079		—		—		1,079
Investments - debt securities:
U.S. Treasury Bills		74,033		—		—		74,033
		74,033		—		—		74,033
Investments - equity securities:
Preferred stock		—		334		—		334
		—		334		—		334
	$	75,112	$	334	$	—	$	75,446

	December 31, 2021
							Total Fair
	Level 1		Level 2		Level 3		Value
Cash equivalents:
Money market funds	$	40,412	$	—	$	—	$	40,412
U.S. Treasury Bills		4,000		—		—		4,000
		44,412		—		—		44,412
Investments - debt securities:
U.S. Treasury Bills		88,956		—		—		88,956
		88,956		—		—		88,956
Investments - equity securities:
Preferred stock		—		450		—		450
		—		450		—		450
	$	133,368	$	450	$	—	$	133,818

Schedule of assets and liabilities measured at fair value on a recurring basis related to interest rate swap agreements designated as cash flow hedges

			Fixed		Notional					Fair	Location in
	Effective	Maturity	Interest		Amount as of	Derivative Asset (Liability) Fair Value				Value	Consolidated
Description	Date	Date	Rate		September 30, 2022	September 30, 2022		December 31, 2021		Level	Balance Sheets
					In Millions	In Thousands
Pier Park Resort Hotel JV Loan (a)	12/10/2022	4/12/2027	3.2%	$	42.0	$	4,517	$	558	2	Other assets
Watercrest JV Loan (a) (b)	6/1/2021	6/1/2024	4.4%	$	—	$	—	$	(634)	2	Other liabilities
Pier Park TPS JV Loan (c)	1/14/2021	1/14/2026	5.2%	$	13.9	$	277	$	(436)	2	Investment in unconsolidated joint ventures

(a) See Note 10. Debt, Net for additional information.

(b) In April 2022, the swap was terminated resulting in a gain of $0.1 million, included in interest expense on the condensed consolidated statements of income for the nine months ended September 30, 2022.

(c) Interest rate swap was entered into by the Pier Park TPS JV, which is unconsolidated and accounted for using the equity method. The derivative asset has been recorded at the Company’s proportionate share of its estimated fair value. The Company’s proportionate share of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into equity in income (loss) from unconsolidated joint ventures in the period during which the hedged transaction affects earnings. See Note 4. Joint Ventures and Note 19. Commitments and Contingencies for additional information.

Summary of effect of derivative instruments on consolidated statements of income and consolidated statements of comprehensive income

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Amount of gain recognized in other comprehensive income on derivatives	$	1,734	$	300	$	5,155	$	543
Amount of loss reclassified into interest expense	$	—	$	106	$	52	$	140
Amount of loss reclassified into equity in income (loss) from unconsolidated joint ventures	$	15	$	48	$	98	$	126

Schedule of carrying amount and estimated fair value of financial instruments measured on nonrecurring basis

	September 30, 2022					December 31, 2021
	Carrying		Estimated			Carrying		Estimated
	value		Fair value		Level	value		Fair value		Level
Investments held by SPEs:
Time deposit	$	200,000	$	200,000	3	$	200,000	$	200,000	3
U.S. Treasury Bills	$	4,452	$	4,321	1	$	5,132	$	5,475	1
Senior Notes held by SPE	$	177,783	$	178,887	3	$	177,566	$	204,802	3
Debt
Fixed-rate debt	$	131,809	$	110,959	2	$	129,532	$	126,722	2
Variable-rate debt		194,995		194,995	2		97,942		97,942	2
Total debt	$	326,804	$	305,954		$	227,474	$	224,664

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Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases

Schedule of components of leasing revenue

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Leasing revenue
Lease payments	$	8,765	$	5,904	$	24,131	$	15,541
Variable lease payments		1,284		1,242		4,084		3,571
Total leasing revenue	$	10,049	$	7,146	$	28,215	$	19,112

Schedule of minimum future base rental revenue

2022	$	6,727
2023		18,153
2024		12,100
2025		9,004
2026		7,281
Thereafter		32,485
	$	85,750

Schedule of lease cost

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022			2021
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	30	$	29	$	90		$	85
Interest on lease liability		3		5		11			14
Operating lease cost		92		80		286			236
Variable and short-term lease cost		576		518		1,401			1,262
Total lease cost	$	701	$	632	$	1,788		$	1,597
Other information
Weighted-average remaining lease term - finance lease (in years)						3.2			3.8
Weighted-average remaining lease term - operating leases (in years)						3.0			3.4
Weighted-average discount rate - finance lease						4.9	%		4.6	%
Weighted-average discount rate - operating leases						4.8	%		4.9	%

Schedule of aggregate payments of finance lease liability

The aggregate payments of finance and operating lease liabilities subsequent to September 30, 2022, for the years ending December 31 are:

	Finance Leases		Operating Leases
2022	$	34	$	92
2023		136		329
2024		89		178
2025		52		55
2026		8		12
Thereafter		1		269
Total		320		935
Less imputed interest		(19)		(174)
Total lease liabilities	$	301	$	761

Schedule of aggregate payments of operating lease liabilities

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022			2021
Lease cost
Finance lease cost:
Amortization of right-of-use assets	$	30	$	29	$	90		$	85
Interest on lease liability		3		5		11			14
Operating lease cost		92		80		286			236
Variable and short-term lease cost		576		518		1,401			1,262
Total lease cost	$	701	$	632	$	1,788		$	1,597
Other information
Weighted-average remaining lease term - finance lease (in years)						3.2			3.8
Weighted-average remaining lease term - operating leases (in years)						3.0			3.4
Weighted-average discount rate - finance lease						4.9	%		4.6	%
Weighted-average discount rate - operating leases						4.8	%		4.9	%

The aggregate payments of finance and operating lease liabilities subsequent to September 30, 2022, for the years ending December 31 are:

	Finance Leases		Operating Leases
2022	$	34	$	92
2023		136		329
2024		89		178
2025		52		55
2026		8		12
Thereafter		1		269
Total		320		935
Less imputed interest		(19)		(174)
Total lease liabilities	$	301	$	761

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Other Assets (Tables)

9 Months Ended

Sep. 30, 2022

Other Assets

Schedule of Other Assets

	September 30,		December 31,
	2022		2021
Investments - equity securities	$	334	$	450
Accounts receivable, net		9,763		13,813
Homesite sales receivable		9,089		7,651
Notes receivable, net		2,908		12,377
Income tax receivable		1,558		—
Inventory		3,692		2,797
Prepaid expenses		9,209		7,175
Straight-line rent		2,625		2,489
Operating lease right-of-use assets		761		732
Other assets		13,484		5,987
Retained interest investments		7,832		13,826
Accrued interest receivable for Senior Notes held by SPE		935		2,938
Total other assets	$	62,190	$	70,235

Schedule of Lot Sales Receivable

	September 30, 2022		September 30, 2021
Balance at beginning of period	$	7,651	$	5,675
Increases due to revenue recognized for homesites sold		4,678		3,670
Decreases due to amounts received		(3,240)		(3,376)
Balance at end of period	$	9,089	$	5,969

Schedule of Notes Receivable, Net

	September 30,		December 31,
	2022		2021
Interest bearing revolving promissory note with the unconsolidated Latitude Margaritaville Watersound JV, secured by the JV's real property — bearing interest at a rate of 5.0%, matures June 2025	$	—	$	7,075
Various interest bearing homebuilder notes, secured by the real estate sold — bearing interest at a rate of 5.5%, due November 2022 through May 2023		2,455		4,824
Interest bearing notes with JV partner, secured by the partner's membership interest in the JV — bearing interest at a rate of 8.0%, due May 2039		359		359
Non-interest bearing note with a tenant for tenant improvements, due October 2025		70		76
Mortgage note, secured by certain real estate, bearing interest at a rate of 4.8% due November 2023		24		43
Total notes receivable, net	$	2,908	$	12,377

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Debt, Net (Tables)

9 Months Ended

Sep. 30, 2022

Debt, Net

Schedule of Debt

	Maturity Date	Interest Rate Terms	Effective Rate September 30, 2022		September 30, 2022		December 31, 2021
Watersound Origins Crossings JV Loan	May 2024	SOFR plus 2.8, floor 3.3% (a)	5.7	%	$	44,015	$	37,897
PPN JV Loan	November 2025	Fixed	4.1	%		42,816		43,582
Pier Park Resort Hotel JV Loan (b)	April 2027	LIBOR plus 2.2%	5.3	%		38,333		14,650
PPC JV Loan (insured by HUD)	June 2060	Fixed	3.1	%		35,304		35,670
PPC II JV Loan (insured by HUD) (c)	May 2057	Fixed	2.7	%		22,723		17,374
Watercrest JV Loan	June 2047	LIBOR plus 2.2% (d)	5.3	%		21,150		20,053
Breakfast Point Hotel Loan	November 2042	LIBOR plus 2.8%, floor 3.8%	5.9	%		16,413		11,843
North Bay Landing Apartments Loan	September 2024	LIBOR plus 2.5%, floor 3.2%	5.6	%		15,693		1,342
Airport Hotel Loan	March 2025	LIBOR plus 2.0%, floor 3.0%	5.1	%		14,642		14,642
Mexico Beach Crossings JV Loan (insured by HUD)	March 2064	Fixed	3.0	%		13,678		—
Watersound Camp Creek Loan	December 2047	LIBOR plus 2.1%, floor 2.6%	5.2	%		13,131		3,437
Lodge 30A JV Loan	January 2028	Fixed	3.8	%		13,039		7,474
Watersound Town Center Grocery Loan	August 2031	LIBOR plus 2.0%, floor 2.2%	5.1	%		9,586		620
Hotel Indigo Loan	October 2028	SOFR plus 2.7%, floor 2.7%	5.7	%		6,245		—
Beckrich Building III Loan	August 2029	LIBOR plus 1.7%	4.8	%		5,038		5,188
Self-Storage Facility Loan	November 2025	LIBOR plus 2.4%, floor 2.9%	5.5	%		4,666		4,666
Community Development District debt	May 2023-May 2039	Fixed	3.6 to 6.0	%		4,249		4,909
Topsail Hotel Loan	July 2027	SOFR plus 2.1%, floor 3.0%	5.1	%		2,107		—
Beach Homes Loan	May 2029	LIBOR plus 1.7%	4.8	%		1,455		1,492
Pier Park Outparcel Loan	March 2027	LIBOR plus 1.7%	4.8	%		1,312		1,370
WaterColor Crossings Loan	February 2029	LIBOR plus 1.7%	4.8	%		1,209		1,265
Total principal outstanding						326,804		227,474
Unamortized discount and debt issuance costs						(5,719)		(4,440)
Total debt, net					$	321,085	$	223,034

(a) In January 2022, the Watersound Origins Crossings JV Loan interest rate was modified from a fixed rate of 5.0%.

(b) The Pier Park Resort Hotel JV entered into an interest rate swap that is effective December 10, 2022 and matures on April 12, 2027 and fixed the variable rate on the notional amount of related debt of $42.0 million to a rate of 3.2%. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

(c) In April 2022, the PPC II JV Loan was amended from a rate of LIBOR plus 2.1% and maturity date of October 2024.

(d) As of December 31, 2021, the interest rate was swapped to a fixed rate of 4.4% on the notional amount of related debt of $20.0 million. The interest rate swap was terminated in April 2022. See Note 6. Financial Instruments and Fair Value Measurements for additional information.

Schedule of Aggregate Maturities of Debt

The aggregate maturities of debt subsequent to September 30, 2022, for the years ending December 31 are:

2022	$	716
2023		5,268
2024		66,599
2025		64,377
2026		5,490
Thereafter		184,354
	$	326,804

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Other Liabilities (Tables)

9 Months Ended

Sep. 30, 2022

Other Liabilities

Schedule of Other Liabilities

	September 30,		December 31,
	2022		2021
Accounts payable	$	61,249	$	48,597
Income tax payable		—		681
Finance lease liabilities		301		380
Operating lease liabilities		761		732
Accrued compensation		5,138		4,877
Other accrued liabilities		8,367		4,126
Club membership deposits		3,485		3,602
Advance deposits		3,324		2,140
Accrued interest expense for Senior Notes held by SPE		713		2,850
Total other liabilities	$	83,338	$	67,985

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Deferred Revenue (Tables)

9 Months Ended

Sep. 30, 2022

Deferred Revenue

Schedule of changes in club initiation fees related to contracts with customers

	September 30, 2022		September 30, 2021
Balance at beginning of period	$	22,850	$	10,716
New club memberships		7,335		12,283
Revenue from amounts included in contract liability opening balance		(4,663)		(2,310)
Revenue from current period new memberships		(535)		(866)
Balance at end of period	$	24,987	$	19,823

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2022

Income Taxes

Schedule of effective income tax rate reconciliation

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Tax at the federal statutory rate	$	3,467	$	4,543	$	12,063	$	12,139
State income taxes (net of federal benefit)		799		340		2,703		1,614
Change in state tax rate		—		1,392		—		1,308
Tax credits		(70)		(63)		(179)		(156)
Other		(33)		217		56		275
Total income tax expense	$	4,163	$	6,429	$	14,643	$	15,180

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Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2022

Accumulated Other Comprehensive Income (Loss)

Summary of Changes in Accumulated Other Comprehensive Loss

	Unrealized Loss		Unrealized
	on Available-for-		(Loss) Gain
	Sale Securities		Cash Flow Hedges		Total
Accumulated other comprehensive loss as of December 31, 2021	$	(7)	$	(382)	$	(389)
Other comprehensive (loss) income before reclassifications		(512)		4,191		3,679
Amounts reclassified from accumulated other comprehensive income		—		112		112
Other comprehensive (loss) income		(512)		4,303		3,791
Less: Other comprehensive income attributable to non-controlling interest		—		(1,355)		(1,355)
Accumulated other comprehensive (loss) income as of September 30, 2022	$	(519)	$	2,566	$	2,047

Summary of Tax Effects Allocated to Other Comprehensive Income

	Three Months Ended September 30, 2022
	Before-		Tax Benefit or		Net-of-
	Tax Amount		(Expense)		Tax Amount
Unrealized loss on available-for-sale investments	$	(31)	$	8	$	(23)
Interest rate swap		1,427		(253)		1,174
Interest rate swap - unconsolidated affiliate		307		(78)		229
Reclassification adjustment for net loss included in earnings		15		(4)		11
Net unrealized gain		1,718		(327)		1,391
Other comprehensive income	$	1,718	$	(327)	$	1,391

	Three Months Ended September 30, 2021
	Before-		Tax		Net-of-
	Tax Amount		Expense		Tax Amount
Unrealized gain on available-for-sale investments	$	3	$	(1)	$	2
Interest rate swap		301		(76)		225
Interest rate swap - unconsolidated affiliate		(1)		—		(1)
Reclassification adjustment for net loss included in earnings		154		(39)		115
Net unrealized gain		457		(116)		341
Other comprehensive income	$	457	$	(116)	$	341

	Nine Months Ended September 30, 2022
	Before-		Tax Benefit		Net-of-
	Tax Amount		(Expense)		Tax Amount
Unrealized loss on available-for-sale investments	$	(686)	$	174	$	(512)
Interest rate swaps		4,540		(808)		3,732
Interest rate swap - unconsolidated joint venture		615		(156)		459
Reclassification adjustment for net loss included in earnings		150		(38)		112
Net unrealized gain		4,619		(828)		3,791
Other comprehensive income	$	4,619	$	(828)	$	3,791

	Nine Months Ended September 30, 2021
	Before-		Tax		Net-of-
	Tax Amount		Expense		Tax Amount
Unrealized loss on available-for-sale investments	$	(1)	$	—	$	(1)
Interest rate swaps		410		(104)		306
Interest rate swap - unconsolidated joint venture		133		(34)		99
Reclassification adjustment for net loss included in earnings		251		(63)		188
Net unrealized gain		793		(201)		592
Other comprehensive income	$	793	$	(201)	$	592

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Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2022

Revenue Recognition

Schedule of revenue disaggregated by segment, good or service and timing

	Three Months Ended September 30, 2022
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	15,045	$	—	$	1,464	$	821	$	17,330
Hospitality revenue		—		28,843		192		—		29,035
Leasing revenue		5		204		9,800		40		10,049
Timber revenue		—		—		1,162		—		1,162
Total revenue	$	15,050	$	29,047	$	12,618	$	861	$	57,576
Timing of Revenue Recognition:
Recognized at a point in time	$	15,045	$	21,573	$	2,818	$	821	$	40,257
Recognized over time		—		7,270		—		—		7,270
Over lease term		5		204		9,800		40		10,049
Total revenue	$	15,050	$	29,047	$	12,618	$	861	$	57,576

	Three Months Ended September 30, 2021
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	21,603	$	—	$	1,560	$	337	$	23,500
Hospitality revenue		—		21,937		355		—		22,292
Leasing revenue		45		20		7,076		5		7,146
Timber revenue		—		—		1,058		—		1,058
Total revenue	$	21,648	$	21,957	$	10,049	$	342	$	53,996
Timing of Revenue Recognition:
Recognized at a point in time	$	21,603	$	16,729	$	2,973	$	337	$	41,642
Recognized over time		—		5,208		—		—		5,208
Over lease term		45		20		7,076		5		7,146
Total revenue	$	21,648	$	21,957	$	10,049	$	342	$	53,996

	Nine Months Ended September 30, 2022
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	70,724	$	—	$	9,581	$	1,827	$	82,132
Hospitality revenue		—		74,391		521		—		74,912
Leasing revenue		50		263		27,800		102		28,215
Timber revenue		—		—		5,438		—		5,438
Total revenue	$	70,774	$	74,654	$	43,340	$	1,929	$	190,697
Timing of Revenue Recognition:
Recognized at a point in time	$	70,724	$	53,563	$	15,540	$	1,827	$	141,654
Recognized over time		—		20,828		—		—		20,828
Over lease term		50		263		27,800		102		28,215
Total revenue	$	70,774	$	74,654	$	43,340	$	1,929	$	190,697

	Nine Months Ended September 30, 2021
	Residential		Hospitality		Commercial		Other		Total
Revenue by Major Good/Service:
Real estate revenue	$	74,670	$	—	$	9,771	$	1,174	$	85,615
Hospitality revenue		—		57,374		612		—		57,986
Leasing revenue		129		39		18,920		24		19,112
Timber revenue		—		—		4,827		—		4,827
Total revenue	$	74,799	$	57,413	$	34,130	$	1,198	$	167,540
Timing of Revenue Recognition:
Recognized at a point in time	$	74,670	$	43,610	$	15,210	$	1,174	$	134,664
Recognized over time		—		13,764		—		—		13,764
Over lease term		129		39		18,920		24		19,112
Total revenue	$	74,799	$	57,413	$	34,130	$	1,198	$	167,540

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Other Income, Net (Tables)

9 Months Ended

Sep. 30, 2022

Other Income, Net

Schedule of Other Income (Expense), Net

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Investment income, net
Interest, dividend and accretion income	$	355	$	52	$	732	$	103
Net realized gain on the sale of investments		—		—		—		17
Unrealized gain (loss) on investments, net		31		63		91		(1,947)
Interest income from investments in SPEs		2,003		2,003		6,009		6,075
Interest earned on notes receivable and other interest		346		213		699		565
Total investment income, net		2,735		2,331		7,531		4,813
Interest expense
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE		(2,211)		(2,207)		(6,629)		(6,619)
Other interest expense		(2,516)		(1,907)		(6,322)		(5,020)
Total interest expense		(4,727)		(4,114)		(12,951)		(11,639)
Gain on contributions to unconsolidated joint ventures		1,430		—		2,001		3,290
Other income (expense), net
Accretion income from retained interest investments		412		392		1,262		1,129
Gain on insurance recovery		875		2,540		4,186		3,924
Loss from hurricane damage		(7)		(11)		(51)		(26)
Miscellaneous income, net		848		4,408		648		4,568
Other income, net		2,128		7,329		6,045		9,595
Total other income, net	$	1,566	$	5,546	$	2,626	$	6,059

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Segment Information (Tables)

9 Months Ended

Sep. 30, 2022

Segment Information

Schedule of Information by Business Segment

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2022		2021		2022		2021
Operating revenue:
Residential	$	15,050	$	21,648	$	70,774	$	74,799
Hospitality		29,047		21,957		74,654		57,413
Commercial		12,618		10,049		43,340		34,130
Other		861		342		1,929		1,198
Consolidated operating revenue	$	57,576	$	53,996	$	190,697	$	167,540
Income (loss) before equity in income (loss) from unconsolidated joint ventures and income taxes:
Residential	$	8,473	$	12,817	$	36,073	$	41,014
Hospitality		4,404		4,195		9,187		9,901
Commercial (a) (b) (c) (d)		1,992		4,623		11,533		14,867
Other (e)		(1,126)		72		(2,961)		(7,273)
Consolidated income before equity in income (loss) from unconsolidated joint ventures and income taxes	$	13,743	$	21,707	$	53,832	$	58,509

(a) The three and nine months ended September 30, 2022, includes a gain of $1.4 million on land and impact fees contributed to the unconsolidated Pier Park RI JV. See Note 4. Joint Ventures and Note 17. Other Income, Net for additional information.

(b) The nine months ended September 30, 2022, includes a gain of $0.4 million on land contributed to the unconsolidated Electric Cart Watersound JV. See Note 4. Joint Ventures and Note 17. Other Income, Net for additional information.

(c) The three and nine months ended September 30, 2021, includes $3.6 million the Company received from the Florida Division of Emergency Management’s TRBG program. See Note 7. Hurricane Michael for additional information.

(d) The nine months ended September 30, 2021, includes a gain of $3.1 million on land contributed to the Watersound Fountains Independent Living JV. See Note 4. Joint Ventures and Note 17. Other Income, Net for additional information.

(e) Includes gain on insurance recovery of $0.9 million and $2.5 million during the three months ended September 30, 2022 and 2021, respectively, and gain on insurance recovery of $4.2 million and $3.9 million during the nine months ended September 30, 2022 and 2021, respectively, related to Hurricane Michael. See Note 7. Hurricane Michael for additional information.

	September 30,		December 31,
	2022		2021
Total assets:
Residential	$	213,301	$	192,290
Hospitality		347,330		256,751
Commercial		457,538		378,118
Other		321,371		380,992
Total assets	$	1,339,540	$	1,208,151

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Nature of Operations - Real Estate Assets (Details)	9 Months Ended
	Sep. 30, 2022 segment item
Real estate
Number of reportable segments | segment	3
Florida's Bay, Gulf, and Walton counties
Real estate
Percentage of real estate within geographical region	86.00%
Within fifteen miles of the Gulf of Mexico
Real estate
Percentage of real estate within geographical region	90.00%
Maximum | Within fifteen miles of the Gulf of Mexico
Real estate
Miles real estate is located from Gulf of Mexico | item	15

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Summary of Significant Accounting Policies - Concentrations (Details) $ in Thousands	Sep. 30, 2022 USD ($) issuer	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)
Concentration risk
Cash and cash equivalents	$ 18,846	$ 70,162	$ 27,260
Investments - debt securities	74,033	88,956
Investments - equity securities	334	450
U.S. Treasury Bills
Concentration risk
Investments - debt securities	74,033	88,956
Preferred stock
Concentration risk
Investments - equity securities	300	$ 500
Credit concentration risk | Assets | Money market fund
Concentration risk
Cash and cash equivalents	1,100
Credit concentration risk | Assets | U.S. Treasury Bills
Concentration risk
Investments - debt securities	74,000
Credit concentration risk | Assets | Preferred stock | External Credit Rating, Non Investment Grade
Concentration risk
Investments - equity securities	$ 300
Number of issuers | issuer	2

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Summary of Significant Accounting Policies - EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Summary of Significant Accounting Policies
Common stock equivalents (in shares)	29,955	0	29,955	0
Number of potentially dilutive common shares excluded from calculation of diluted income per share	29,955
Income
Net income attributable to the Company, Basic	$ 12,347	$ 15,196	$ 42,798	$ 42,616
Net income attributable to the Company, Diluted	$ 12,347	$ 15,196	$ 42,798	$ 42,616
Shares
Weighted-average shares outstanding - basic	58,814,972	58,882,549	58,859,723	58,882,549
Incremental shares from restricted stock			1,717
Weighted-average shares outstanding - diluted	58,814,972	58,882,549	58,861,440	58,882,549
Net income per share attributable to the Company
Basic income (in dollars per share)	$ 0.21	$ 0.26	$ 0.73	$ 0.72
Diluted income (in dollars per share)	$ 0.21	$ 0.26	$ 0.73	$ 0.72

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Investment in Real Estate - Real Estate by Property Type and Segment (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Real estate properties
Investment in real estate, net	$ 883,796	$ 690,113
Operating property, net related to operating leases	260,000	230,000
Development property
Real estate properties
Investment in real estate, net	467,215	348,656
Development property | Other
Real estate properties
Investment in real estate, net	3,451	3,232
Development property | Residential segment | Operating Segments
Real estate properties
Investment in real estate, net	153,299	122,404
Development property | Hospitality | Operating Segments
Real estate properties
Investment in real estate, net	187,406	137,089
Development property | Commercial segment | Operating Segments
Real estate properties
Investment in real estate, net	123,059	85,931
Operating property
Real estate properties
Operating property	508,516	428,623
Less: Accumulated depreciation	91,935	87,166
Investment in real estate, net	416,581	341,457
Operating property | Other
Real estate properties
Operating property	127	127
Operating property | Residential segment | Operating Segments
Real estate properties
Operating property	7,854	7,854
Operating property | Hospitality | Operating Segments
Real estate properties
Operating property	161,439	124,449
Operating property | Commercial segment | Operating Segments
Real estate properties
Operating property	$ 339,096	$ 296,193

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Joint Ventures - Consolidated Joint Ventures (Details)	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2021 item	Sep. 30, 2022 item room	Dec. 31, 2021
Mexico Beach Crossings JV
Variable interest entity
Ownership in consolidated voting interest entity (as a percent)		75.00%
Mexico Beach Crossings JV | Apartment
Variable interest entity
Number of units to be developed		216
The Lodge 30A JV
Variable interest entity
Variable interest entity, ownership percentage		52.80%	52.80%
The Lodge 30A JV | Hotel
Variable interest entity
Number of units to be developed | room		85
Pier Park Resort Hotel JV
Variable interest entity
Variable interest entity, ownership percentage		70.00%	70.00%
Pier Park Resort Hotel JV | Hotel
Variable interest entity
Number of units to be developed | room		255
Pier Park Crossings II JV
Variable interest entity
Variable interest entity, ownership percentage		75.00%	75.00%
Pier Park Crossings II JV | Apartment
Variable interest entity
Number of completed units		120
Watersound Closings JV
Variable interest entity
Variable interest entity, ownership percentage		58.00%	58.00%
Watercrest JV
Variable interest entity
Variable interest entity, ownership percentage		87.00%	87.00%
Watercrest JV | Senior living community
Variable interest entity
Number of completed units		107
Watersound Origins Crossings JV
Variable interest entity
Variable interest entity, ownership percentage		75.00%	75.00%
Watersound Origins Crossings JV | Apartment
Variable interest entity
Number of units completed in period	217
Pier Park Crossings JV
Variable interest entity
Variable interest entity, ownership percentage		75.00%	75.00%
Pier Park Crossings JV | Apartment
Variable interest entity
Number of completed units		240
Pier Park North JV
Variable interest entity
Variable interest entity, ownership percentage		60.00%	60.00%

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Joint Ventures - Unconsolidated JVs (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Investments
Investment in unconsolidated joint ventures	$ 58,865	$ 52,027
Latitude Margaritaville Watersound JV
Investments
Investment in unconsolidated joint ventures	32,468	30,040
Sea Sound JV
Investments
Investment in unconsolidated joint ventures	9,454	10,333
Watersound Fountains Independent Living JV
Investments
Investment in unconsolidated joint ventures	7,508	7,508
Pier Park TPS JV
Investments
Investment in unconsolidated joint ventures	1,714	1,961
Pier Park RI JV
Investments
Investment in unconsolidated joint ventures	4,263
Busy Bee JV
Investments
Investment in unconsolidated joint ventures	2,238	1,621
Electric Cart Watersound JV
Investments
Investment in unconsolidated joint ventures	682
Watersound Management JV
Investments
Investment in unconsolidated joint ventures	$ 538	$ 564

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Joint Ventures - Unconsolidated JV Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Jun. 30, 2020
Investments
Outstanding debt	$ 326,804	$ 227,474
Unconsolidated joint ventures
Investments
Maximum exposure to loss	86,900
Unconsolidated joint ventures
Investments
Outstanding debt	89,912	62,701
Latitude Margaritaville Watersound JV
Investments
Outstanding debt	11,795	7,147
Sea Sound JV
Investments
Outstanding debt	38,742	35,047
Watersound Fountains Independent Living JV
Investments
Outstanding debt	18,755	66
Pier Park TPS JV
Investments
Outstanding debt	13,898	14,124
Busy Bee JV
Investments
Outstanding debt	6,088	6,317
Electric Cart Watersound JV
Investments
Outstanding debt	634
Latitude Margaritaville Watersound JV
Investments
Amount as lender of secured revolving promissory note	$ 10,000	$ 10,000	$ 10,000

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Joint Ventures - Equity in Income (Loss) from Unconsolidated JV (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investments
Equity in income (loss) from unconsolidated joint ventures	$ 2,481	$ (501)	$ 3,415	$ (1,570)
Latitude Margaritaville Watersound JV
Investments
Equity in income (loss) from unconsolidated joint ventures	2,181	(896)	2,504	(2,497)
Sea Sound JV
Investments
Equity in income (loss) from unconsolidated joint ventures	(59)	(71)	21	(104)
Pier Park TPS JV
Investments
Equity in income (loss) from unconsolidated joint ventures	114	279	217	651
Busy Bee JV
Investments
Equity in income (loss) from unconsolidated joint ventures	210	180	617	372
Electric Cart Watersound JV
Investments
Equity in income (loss) from unconsolidated joint ventures	17		(3)
Watersound Management JV
Investments
Equity in income (loss) from unconsolidated joint ventures	$ 18	$ 7	$ 59	$ 8

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Joint Ventures - Unconsolidated JV - Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
ASSETS
Investment in real estate	$ 883,796		$ 690,113
Cash and cash equivalents	18,846		70,162	$ 27,260
Other assets	62,190		70,235
Total assets	1,339,540		1,208,151
LIABILITIES AND EQUITY
Debt, net	321,085		223,034
Other liabilities	83,338		67,985
Equity	636,465	$ 647,440	626,100	$ 598,618	$ 588,515	$ 568,170
Total liabilities and equity	1,339,540		1,208,151
Unconsolidated joint ventures
ASSETS
Investment in real estate	228,442		149,378
Cash and cash equivalents	11,567		16,447
Other assets	5,919		3,635
Total assets	245,928		169,460
LIABILITIES AND EQUITY
Debt, net	88,629		62,142
Other liabilities	79,336		44,032
Equity	77,963		63,286
Total liabilities and equity	245,928		169,460
Latitude Margaritaville Watersound JV
ASSETS
Investment in real estate	110,144		54,034
Cash and cash equivalents	4,185		12,541
Other assets	2,425		1,761
Total assets	116,754		68,336
LIABILITIES AND EQUITY
Debt, net	11,610		7,147
Other liabilities	74,785		36,419
Equity	30,359		24,770
Total liabilities and equity	116,754		68,336
Sea Sound JV
ASSETS
Investment in real estate	53,224		53,775
Cash and cash equivalents	1,508		760
Other assets	451		210
Total assets	55,183		54,745
LIABILITIES AND EQUITY
Debt, net	38,676		34,834
Other liabilities	713		2,653
Equity	15,794		17,258
Total liabilities and equity	55,183		54,745
Watersound Fountains Independent Living JV
ASSETS
Investment in real estate	34,691		17,003
Cash and cash equivalents	279		240
Other assets	8		187
Total assets	34,978		17,430
LIABILITIES AND EQUITY
Debt, net	18,133		66
Other liabilities	2,889		3,408
Equity	13,956		13,956
Total liabilities and equity	34,978		17,430
Pier Park TPS JV
ASSETS
Investment in real estate	15,468		16,561
Cash and cash equivalents	1,092		1,913
Other assets	734		433
Total assets	17,294		18,907
LIABILITIES AND EQUITY
Debt, net	13,615		13,839
Other liabilities	251		1,147
Equity	3,428		3,921
Total liabilities and equity	17,294		18,907
Pier Park RI JV
ASSETS
Investment in real estate	5,580
Cash and cash equivalents	2,953
Total assets	8,533
LIABILITIES AND EQUITY
Other liabilities	7
Equity	8,526
Total liabilities and equity	8,533
Busy Bee JV
ASSETS
Investment in real estate	7,705		8,005
Cash and cash equivalents	1,231		855
Other assets	2,006		1,044
Total assets	10,942		9,904
LIABILITIES AND EQUITY
Debt, net	6,042		6,256
Other liabilities	424		405
Equity	4,476		3,243
Total liabilities and equity	10,942		9,904
Electric Cart Watersound JV
ASSETS
Investment in real estate	1,630
Cash and cash equivalents	232
Other assets	295
Total assets	2,157
LIABILITIES AND EQUITY
Debt, net	553
Other liabilities	267
Equity	1,337
Total liabilities and equity	2,157
Watersound Management JV
ASSETS
Cash and cash equivalents	87		138
Total assets	87		138
LIABILITIES AND EQUITY
Equity	87		138
Total liabilities and equity	$ 87		$ 138

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Joint Ventures - Unconsolidated JV - Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Summarized financial information
Total revenue	$ 57,576	$ 53,996	$ 190,697	$ 167,540
Expenses:
Other operating expenses	5,322	4,987	16,493	17,161
Depreciation and amortization	5,771	4,617	16,263	12,594
Total expenses	45,399	37,835	139,491	115,090
Operating income (loss)	12,177	16,161	51,206	52,450
Other (expense) income:
Interest expense	(4,727)	(4,114)	(12,951)	(11,639)
Other income (expense), net	2,128	7,329	6,045	9,595
Total other (expense) income, net	1,566	5,546	2,626	6,059
Net income (loss)	12,061	14,777	42,604	41,759
Unconsolidated joint ventures
Summarized financial information
Total revenue	59,698	7,514	106,906	18,352
Expenses:
Cost of revenue	49,777	5,622	87,223	14,140
Other operating expenses	3,565	1,572	8,962	4,508
Depreciation and amortization	1,102	624	3,169	1,633
Total expenses	54,444	7,818	99,354	20,281
Operating income (loss)	5,254	(304)	7,552	(1,929)
Other (expense) income:
Interest expense	(756)	(326)	(1,995)	(856)
Other income (expense), net	302	(50)	1,003	209
Total other (expense) income, net	(454)	(376)	(992)	(647)
Net income (loss)	4,800	(680)	6,560	(2,576)
Latitude Margaritaville Watersound JV
Summarized financial information
Total revenue	50,784		82,528
Expenses:
Cost of revenue	42,928		68,468
Other operating expenses	3,561	1,572	8,949	4,508
Depreciation and amortization	79	75	229	135
Total expenses	46,568	1,647	77,646	4,643
Operating income (loss)	4,216	(1,647)	4,882	(4,643)
Other (expense) income:
Interest expense	(56)	(40)	(166)	(120)
Other income (expense), net	4		4
Total other (expense) income, net	(52)	(40)	(162)	(120)
Net income (loss)	4,164	(1,687)	4,720	(4,763)
Sea Sound JV
Summarized financial information
Total revenue	1,614	143	4,312	164
Expenses:
Cost of revenue	694	147	1,629	217
Depreciation and amortization	546	75	1,509	76
Total expenses	1,240	222	3,138	293
Operating income (loss)	374	(79)	1,174	(129)
Other (expense) income:
Interest expense	(470)	(45)	(1,131)	(45)
Other income (expense), net	(2)		(7)
Total other (expense) income, net	(472)	(45)	(1,138)	(45)
Net income (loss)	(98)	(124)	36	(174)
Watersound Fountains Independent Living JV
Other (expense) income:
Net income (loss)	0	0	0	0
Pier Park TPS JV
Summarized financial information
Total revenue	1,664	2,252	4,577	5,473
Expenses:
Cost of revenue	884	902	2,501	2,311
Depreciation and amortization	362	358	1,087	1,075
Total expenses	1,246	1,260	3,588	3,386
Operating income (loss)	418	992	989	2,087
Other (expense) income:
Interest expense	(189)	(193)	(566)	(546)
Other income (expense), net	7	1	11	4
Total other (expense) income, net	(182)	(192)	(555)	(542)
Net income (loss)	236	800	434	1,545
Busy Bee JV
Summarized financial information
Total revenue	5,090	4,918	14,399	12,452
Expenses:
Cost of revenue	4,799	4,386	13,661	11,365
Depreciation and amortization	115	116	344	347
Total expenses	4,914	4,502	14,005	11,712
Operating income (loss)	176	416	394	740
Other (expense) income:
Interest expense	(41)	(48)	(132)	(145)
Other income (expense), net	293	(51)	995	205
Total other (expense) income, net	252	(99)	863	60
Net income (loss)	428	317	1,257	800
Electric Cart Watersound JV
Summarized financial information
Total revenue	226		226
Expenses:
Cost of revenue	189		218
Other operating expenses	4		13
Total expenses	193		231
Operating income (loss)	33		(5)
Other (expense) income:
Net income (loss)	33		(5)
Watersound Management JV
Summarized financial information
Total revenue	320	201	864	263
Expenses:
Cost of revenue	283	187	746	247
Total expenses	283	187	746	247
Operating income (loss)	37	14	118	16
Other (expense) income:
Net income (loss)	$ 37	$ 14	$ 118	$ 16

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Joint Ventures - Unconsolidated JV - Latitude Margaritaville Watersound JV (Details)	1 Months Ended	9 Months Ended
	Jun. 30, 2020 USD ($)	Sep. 30, 2022 USD ($) home	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Investments
Investment in unconsolidated joint ventures		$ 58,865,000		$ 52,027,000
Capital contribution to unconsolidated joint ventures		2,505,000	$ 9,213,000
Latitude Margaritaville Watersound JV
Investments
Amount as lender of secured revolving promissory note	$ 10,000,000.0	10,000,000.0		10,000,000.0
Latitude Margaritaville Watersound JV, secured by the JV's real property - bearing interest at a rate of 5.0%, matures June 2025
Investments
Note receivable		0		7,100,000
Latitude Margaritaville Watersound JV
Investments
Contractual value of land and improvements to be contributed		35,000,000.0
Investment in unconsolidated joint ventures		32,468,000		$ 30,040,000
Net present value of land contribution	$ 16,600,000
Imputed interest rate (as a percent)	5.80%
Amount of infrastructure improvements completed		$ 6,000,000.0
Ownership percentage		50.00%		50.00%
Average amount of land contribution returned per home		$ 10,000
Latitude Margaritaville Watersound JV | Residential homes
Investments
Number of units under contract | home		641
Number of homes sold | home		247
Number of units to be developed, including units completed | home		3,500

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Joint Ventures - Unconsolidated JV - Sea Sound JV (Details) $ in Thousands	1 Months Ended	9 Months Ended
	Jan. 31, 2020 USD ($)	Sep. 30, 2022 USD ($) item	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Investments
Capital contribution to unconsolidated joint ventures		$ 2,505	$ 9,213
Outstanding debt		$ 326,804		$ 227,474
Sea Sound JV
Investments
Ownership percentage		60.00%		60.00%
Unconsolidated joint ventures
Investments
Outstanding debt		$ 89,912		$ 62,701
Sea Sound JV
Investments
Outstanding debt		38,742		35,047
Sea Sound JV | Sea Sound JV Loan
Investments
Loan amount	$ 40,300
Outstanding debt		$ 38,700		$ 35,000
Sea Sound JV | LIBOR | Sea Sound JV Loan
Investments
Basis spread on variable rate (as a percent)	2.20%
Sea Sound JV | Apartment
Investments
Number of units to be developed | item		300

XML

Joint Ventures - Unconsolidated JV - Watersound Fountains Independent Living JV (Details) $ in Thousands	1 Months Ended	9 Months Ended		12 Months Ended
	Apr. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) item	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Investments
Capital contribution to unconsolidated joint ventures		$ 2,505	$ 9,213
Watersound Fountains Independent Living JV
Investments
Value of land contributed	$ 3,200
Capital contribution to unconsolidated joint ventures				$ 4,300
Cash contributed by JV partner				$ 6,400
Ownership percentage		53.80%		53.80%
Watersound Fountains Independent Living JV
Investments
Number of JV partners | item		3
Watersound Fountains Independent Living JV | Senior living community
Investments
Number of units to be developed | item		148

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Joint Ventures - Unconsolidated JV - Pier Park TPS JV (Details) - room	Sep. 30, 2022	Dec. 31, 2021
Pier Park TPS JV
Investments
Ownership percentage	50.00%	50.00%
Pier Park TPS JV | Hotel
Investments
Number of completed units	124

XML

Joint Ventures - Unconsolidated JV - Pier Park RI JV (Details) $ in Thousands	1 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($) item room	Sep. 30, 2022 USD ($) item room	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Investments
Capital contribution to unconsolidated joint ventures		$ 2,505	$ 9,213
Outstanding debt	$ 321,085	321,085		$ 223,034
Pier Park RI JV | Pier Park RI JV Loan
Investments
Loan amount	$ 25,000	$ 25,000
Basis spread on variable rate (as a percent)	2.50%
Number of options to extend maturity date | item	2	2
Debt instrument, period by which maturity date may be extended	24 months
Outstanding debt	$ 0	$ 0
Pier Park RI JV | Hotel
Investments
Number of units to be developed | room	121	121
Pier Park RI JV
Investments
Value of land contributed		$ 1,800
Capital contribution to unconsolidated joint ventures		2,500
Cash contributed by JV partner	$ 4,300	$ 4,300
Ownership percentage	50.00%	50.00%

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Joint Ventures - Unconsolidated JV - Busy Bee JV (Details) - USD ($) $ in Thousands	1 Months Ended
	Nov. 30, 2019	Nov. 12, 2035	Sep. 30, 2022	Dec. 31, 2021
Investments
Outstanding debt			$ 326,804	$ 227,474
Busy Bee JV
Investments
Ownership percentage			50.00%	50.00%
Unconsolidated joint ventures
Investments
Outstanding debt			$ 89,912	$ 62,701
Busy Bee JV
Investments
Outstanding debt			6,088	6,317
Busy Bee JV | Interest Rate Swap | Forecast
Investments
Notional amount		$ 2,800
Busy Bee JV | Busy Bee JV Construction Loan, due November 2035
Investments
Loan amount	$ 5,400
Outstanding debt			5,200	5,300
Busy Bee JV | Busy Bee JV Construction Loan, due November 2035 | Interest Rate Swap
Investments
Notional amount	$ 5,400
Fixed interest rate (as a percent)	2.70%
Busy Bee JV | Busy Bee JV Equipment Loan, due November 2027
Investments
Loan amount	$ 1,200
Outstanding debt			$ 900	$ 1,100
Busy Bee JV | Busy Bee JV Equipment Loan, due November 2027 | LIBOR
Investments
Basis spread on variable rate (as a percent)	1.50%
Busy Bee JV | Busy Bee JV Equipment Loan, due November 2027 | Interest Rate Swap
Investments
Notional amount	$ 1,200
Fixed interest rate (as a percent)	2.10%

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Joint Ventures - Unconsolidated JV - Electric Cart Watersound JV (Details) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Feb. 28, 2022	Sep. 30, 2022	Sep. 30, 2021
Investments
Capital contribution to unconsolidated joint ventures		$ 2,505	$ 9,213
Electric Cart Watersound JV
Investments
Value of land contributed	$ 500
Capital contribution to unconsolidated joint ventures		200
Cash contributed by JV partner		$ 600
Ownership percentage		51.00%

XML

Joint Ventures - Unconsolidated JV - Watersound Management JV (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Investments
Payments for interest in unconsolidated joint venture		$ 495
Capital contribution to unconsolidated joint ventures	$ 2,505	$ 9,213
Watersound Management JV
Investments
Payments for interest in unconsolidated joint venture			$ 500
Ownership percentage	50.00%		50.00%
Watersound Management JV | Maximum
Investments
Capital contribution to unconsolidated joint ventures			$ 100
Cash contributed by JV partner			$ 100

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Investments - Schedule of Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt securities and restricted investments
Fair Value	$ 74,033	$ 88,956
U.S. Treasury Bills
Debt securities and restricted investments
Amortized Cost	74,731	88,966
Gross Unrealized Gains		1
Gross Unrealized (Losses)	(698)	(11)
Fair Value	$ 74,033	$ 88,956

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Investments - Gains and Proceeds (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investments
Realized gain on sale of investments	$ 0	$ 0	$ 0
Realized loss on sale of investments	$ 0	$ 0	0
Proceeds from sale of available-for-sale debt securities			13,000	$ 1,200
Maturities of investments - debt securities			99,000	73,000
Purchases of available-for-sale securities			$ 97,100	127,900
Maximum
Investments
Net realized gains on sale of investments				$ 100

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Investments - Unrealized Loss Position (Details) - U.S. Treasury Bills - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Investments
Unrealized losses	$ 700
Available-for-sale, Debt securities
Investments
Less Than 12 Months, Fair Value	74,033	$ 43,959
Less Than 12 Months, Unrealized Losses	$ 698	$ 11

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Investments - Contractual Maturities of Investments (Details) - Available-for-sale, Debt securities $ in Thousands	Sep. 30, 2022 USD ($)
Amortized Cost
Amortized Cost, Due in one year or less	$ 74,731
Fair Value
Fair Value, Due in one year or less	$ 74,033

XML

Investments - Investment Management Agreement (Details)	Sep. 30, 2022
Investor | Clients of FCM, including Mr. Berkowitz
Investments
Common stock ownership percentage	42.00%

XML

Financial Instruments and Fair Value Measurements - Measurements on Recurring Basis (Details) - Recurring basis - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Financial instruments and fair value measurements
Cash equivalents	$ 1,079	$ 44,412
Total	75,446	133,818
Level 1
Financial instruments and fair value measurements
Cash equivalents	1,079	44,412
Total	75,112	133,368
Level 2
Financial instruments and fair value measurements
Total	334	450
Available-for-sale, Debt securities
Financial instruments and fair value measurements
Investments	74,033	88,956
Available-for-sale, Debt securities | Level 1
Financial instruments and fair value measurements
Investments	74,033	88,956
Equity securities
Financial instruments and fair value measurements
Investments	334	450
Equity securities | Level 2
Financial instruments and fair value measurements
Investments	334	450
Money market fund
Financial instruments and fair value measurements
Cash equivalents	1,079	40,412
Money market fund | Level 1
Financial instruments and fair value measurements
Cash equivalents	1,079	40,412
U.S. Treasury Bills
Financial instruments and fair value measurements
Cash equivalents		4,000
U.S. Treasury Bills | Level 1
Financial instruments and fair value measurements
Cash equivalents		4,000
U.S. Treasury Bills | Available-for-sale, Debt securities
Financial instruments and fair value measurements
Investments	74,033	88,956
U.S. Treasury Bills | Available-for-sale, Debt securities | Level 1
Financial instruments and fair value measurements
Investments	74,033	88,956
Preferred stock | Equity securities
Financial instruments and fair value measurements
Investments	334	450
Preferred stock | Equity securities | Level 2
Financial instruments and fair value measurements
Investments	$ 334	$ 450

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Financial Instruments and Fair Value Measurements - Assets and Liabilities Measured at FV (Details) - Interest Rate Swap - USD ($) $ in Thousands	1 Months Ended
	Apr. 30, 2022	Sep. 30, 2022	Dec. 31, 2021
Watercrest JV Loan
Financial instruments and fair value measurements
Gain on swap upon termination	$ 100
Recurring basis | Cash Flow Hedging | Pier Park Resort Hotel JV Loan
Financial instruments and fair value measurements
Fixed interest rate (as a percent)		3.20%
Notional amount		$ 42,000
Recurring basis | Cash Flow Hedging | Watercrest JV Loan
Financial instruments and fair value measurements
Fixed interest rate (as a percent)		4.40%
Recurring basis | Cash Flow Hedging | Pier Park TPS JV Loan
Financial instruments and fair value measurements
Fixed interest rate (as a percent)		5.20%
Notional amount		$ 13,900
Recurring basis | Level 2 | Cash Flow Hedging | Pier Park Resort Hotel JV Loan
Financial instruments and fair value measurements
Derivative assets		$ 4,517	$ 558
Derivative Asset, Statement of Financial Position		Other assets	Other assets
Recurring basis | Level 2 | Cash Flow Hedging | Watercrest JV Loan
Financial instruments and fair value measurements
Derivative liabilities			$ (634)
Derivative Liability, Statement of Financial Position			Other liabilities
Recurring basis | Level 2 | Cash Flow Hedging | Pier Park TPS JV Loan
Financial instruments and fair value measurements
Derivative assets		$ 277
Derivative Asset, Statement of Financial Position		Investment in unconsolidated joint ventures
Derivative liabilities			$ (436)
Derivative Liability, Statement of Financial Position			Investment in unconsolidated joint ventures

XML

Financial Instruments and Fair Value Measurements - Effect of derivative instruments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Gain (loss) of derivative instruments
Amount of gain recognized in other comprehensive income on derivatives	$ 1,734	$ 300	$ 5,155	$ 543
Amount expected to be reclassified during next twelve months			$ 400
Period over which losses are expected to be reclassified			12 months
Interest expense
Gain (loss) of derivative instruments
Amount of loss reclassified into consolidated statements of income		106	$ 52	140
Equity in loss from unconsolidated joint ventures
Gain (loss) of derivative instruments
Amount of loss reclassified into consolidated statements of income	$ 15	$ 48	$ 98	$ 126

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Financial Instruments and Fair Value Measurements - Investment in Unconsolidated JVs and Long-lived assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Financial Instruments and Fair Value Measurements
Impairment loss on investment in unconsolidated joint ventures	$ 0	$ 0	$ 0	$ 0

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Financial Instruments and Fair Value Measurements - Carrying Amount and Fair Value (Details) - Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Carrying Value
Financial instruments and fair value measurements
Debt	$ 326,804	$ 227,474
Fair Value
Financial instruments and fair value measurements
Debt	305,954	224,664
Level 1 | Carrying Value | U.S. Treasury Bills
Financial instruments and fair value measurements
Investments held by SPEs	4,452	5,132
Level 1 | Fair Value | U.S. Treasury Bills
Financial instruments and fair value measurements
Investments held by SPEs	4,321	5,475
Level 2 | Carrying Value | Fixed-rate debt
Financial instruments and fair value measurements
Debt	131,809	129,532
Level 2 | Carrying Value | Variable rate debt
Financial instruments and fair value measurements
Debt	194,995	97,942
Level 2 | Fair Value | Fixed-rate debt
Financial instruments and fair value measurements
Debt	110,959	126,722
Level 2 | Fair Value | Variable rate debt
Financial instruments and fair value measurements
Debt	194,995	97,942
Level 3 | Carrying Value
Financial instruments and fair value measurements
Debt	177,783	177,566
Level 3 | Carrying Value | Time deposit
Financial instruments and fair value measurements
Investments held by SPEs	200,000	200,000
Level 3 | Fair Value
Financial instruments and fair value measurements
Debt	178,887	204,802
Level 3 | Fair Value | Time deposit
Financial instruments and fair value measurements
Investments held by SPEs	$ 200,000	$ 200,000

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Financial Instruments and Fair Value Measurements - Held by Special Purpose Entities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2014	Sep. 30, 2022	Dec. 31, 2021
Financial instruments and fair value measurements
Investments held by special purpose entities		$ 204,829	$ 205,513
Senior Notes held by special purpose entity		177,783	177,566
Variable Interest Entity, Primary Beneficiary
Financial instruments and fair value measurements
Investments held by special purpose entities		204,829	205,513
Senior Notes held by special purpose entity		177,783	$ 177,566
Panama City Timber Finance Company, LLC | 2014 real estate sale
Financial instruments and fair value measurements
Notes received as consideration in sale of real estate	$ 200,000
Promissory notes maturity period	15 years
Panama City Timber Finance Company, LLC | Time deposit
Financial instruments and fair value measurements
Investments held by special purpose entities		$ 200,000
Investment interest rate (as a percent)		4.00%
Panama City Timber Finance Company, LLC | U.S. Treasury Bills
Financial instruments and fair value measurements
Investments held by special purpose entities		$ 4,400
Panama City Timber Finance Company, LLC | Cash
Financial instruments and fair value measurements
Investments held by special purpose entities		400
Northwest Florida Timber Finance, LLC
Financial instruments and fair value measurements
Loan amount	$ 180,000
Debt interest rate (as a percent)	4.80%
Issue price of senior secured notes (as a percent)	98.50%
Senior Notes held by special purpose entity		177,800
Unamortized discount and debt issuance costs		$ 2,200

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Hurricane Michael (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Loss contingency
Insurance recovery	$ 875	$ 2,540	$ 4,186	$ 3,924
Loss from hurricane damage	7	11	51	26
Maximum
Loss contingency
Loss from hurricane damage		100		100
Hurricane Michael.
Loss contingency
Proceeds from business interruption insurance	0	200	0	600
Insurance recovery	900	2,500	4,200	3,900
Hurricane Michael. | Maximum
Loss contingency
Loss from hurricane damage	$ 100	$ 100	$ 100	$ 100

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Leases - Components of Lease Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Leasing revenue
Lease payments	$ 8,765	$ 5,904	$ 24,131	$ 15,541
Variable lease payments	1,284	1,242	4,084	3,571
Total leasing revenue	$ 10,049	$ 7,146	$ 28,215	$ 19,112

XML

Leases - Minimum Future Base Rental Revenue (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Minimum future base rental revenue:
2022	$ 6,727
2023	18,153
2024	12,100
2025	9,004
2026	7,281
Thereafter	32,485
Total	$ 85,750

XML

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Lease cost
Finance lease cost: Amortization of right-of-use assets	$ 30	$ 29	$ 90	$ 85
Finance lease cost: Interest on lease liability	3	5	11	14
Operating lease cost	92	80	286	236
Variable and short-term lease cost	576	518	1,401	1,262
Total lease cost	$ 701	$ 632	$ 1,788	$ 1,597

XML

Leases - Lease Cost - Other Information (Details)	Sep. 30, 2022	Sep. 30, 2021
Leases
Weighted-average remaining lease term - finance lease (in years)	3 years 2 months 12 days	3 years 9 months 18 days
Weighted-average remaining lease term - operating leases (in years)	3 years	3 years 4 months 24 days
Weighted-average discount rate - finance lease (as a percent)	4.90%	4.60%
Weighted-average discount rate - operating leases (as a percent)	4.80%	4.90%

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Leases - Aggregate Payments of Finance and Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Aggregate payments of finance lease liabilities:
2022	$ 34
2023	136
2024	89
2025	52
2026	8
Thereafter	1
Total	320
Less imputed interest	(19)
Total finance lease liabilities	301	$ 380
Aggregate payments of operating lease liabilities:
2022	92
2023	329
2024	178
2025	55
2026	12
Thereafter	269
Total	935
Less imputed interest	(174)
Total operating lease liabilities	$ 761	$ 732

XML

Other Assets - Schedule of Other Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Other Assets
Investments - equity securities	$ 334	$ 450
Accounts receivable, net	9,763	13,813
Homesite sales receivable	9,089	7,651	$ 5,969	$ 5,675
Notes receivable, net	2,908	12,377
Income tax receivable	1,558
Inventory	3,692	2,797
Prepaid expenses	9,209	7,175
Straight-line rent	2,625	2,489
Operating lease, right-of use assets	$ 761	$ 732
Operating Lease, Right-of-Use Asset, Statement of Financial Position	Total other assets	Total other assets
Other assets	$ 13,484	$ 5,987
Retained interest investments	7,832	13,826
Accrued interest receivable for Senior Notes held by SPE	935	2,938
Total other assets	$ 62,190	$ 70,235

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Other Assets - Investments - Equity Securities (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Equity Securities
Investments - equity securities	$ 334		$ 334		$ 450
Unrealized gain (loss) on investments held as of balance sheet date		$ 100		$ (900)
Maximum
Equity Securities
Unrealized gain (loss) on investments held as of balance sheet date	100		100
Preferred stock
Equity Securities
Investments - equity securities	$ 300		$ 300		$ 500

XML

Other Assets - Accounts Receivable, Net (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Accounts Receivable, Net
Allowance for credit losses	$ 0.3	$ 0.4
Allowance for lease related receivables	0.1	$ 0.1
Maximum
Accounts Receivable, Net
Increase (decrease) in allowance for credit losses related to accounts receivable	$ (0.1)

XML

Other Assets - Homesite Sales Receivable (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Changes in lot sales receivable
Homesite Sales Receivable, Balance at beginning of period	$ 7,651	$ 5,675
Increases due to revenue recognized for homesites sold	4,678	3,670
Decreases due to amounts received	(3,240)	(3,376)
Homesite Sales Receivable, Balance at end of period	$ 9,089	$ 5,969

XML

Other Assets - Notes Receivable, Net (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021	Jun. 30, 2020
Accounts Receivable, Net
Notes receivable, net	$ 2,908	$ 12,377
Accrued interest receivable	935	2,938
Latitude Margaritaville Watersound JV
Accounts Receivable, Net
Amount as lender of secured revolving promissory note	10,000	10,000	$ 10,000
Maximum
Accounts Receivable, Net
Allowance for credit losses, Notes receivable	100	100
Notes Receivable
Accounts Receivable, Net
Accrued interest receivable	200	100
Latitude Margaritaville Watersound JV, secured by the JV's real property - bearing interest at a rate of 5.0%, matures June 2025
Accounts Receivable, Net
Notes receivable, net		$ 7,075
Interest rate, note (as a percent)		5.00%
Various interest bearing homebuilder notes, secured by the real estate sold - bearing interest at a rate of 5.5%, due November 2022 through May 2023
Accounts Receivable, Net
Notes receivable, net	$ 2,455	$ 4,824
Interest rate, note (as a percent)	5.50%	5.50%
Interest bearing notes with JV partner, secured by the partner's membership interest in the JV - bearing interest at a rate of 8.0%, due May 2039
Accounts Receivable, Net
Notes receivable, net	$ 359	$ 359
Interest rate, note (as a percent)	8.00%	8.00%
Non-interest bearing note with a tenant for tenant improvements, due October 2025
Accounts Receivable, Net
Notes receivable, net	$ 70	$ 76
Mortgage note, secured by certain real estate, bearing interest at a rate of 4.8% due November 2023
Accounts Receivable, Net
Notes receivable, net	$ 24	$ 43
Interest rate, mortgage (as a percent)	4.80%	4.80%

XML

Other Assets - Other Assets (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Other Assets
Other assets, Escrow deposits	$ 7.7	$ 3.9
Other assets, Derivative assets	$ 4.5	$ 0.6

XML

Other Assets - Retained Interest Investments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) installment	Dec. 31, 2021 USD ($)
Investments
Number of installment notes matured | installment	2
Retained interest investments	$ 7,832	$ 13,826
Retained interest investments
Investments
Expected amount to receive upon maturity of note after payment of note and any other liabilities	$ 10,100
Promissory notes maturity period	15 years
Principal received upon maturity of installment note	$ 6,900
Retained interest investments	$ 7,800	$ 13,800
Minimum | Retained interest investments
Investments
Notes maturity year	2023
Maximum | Retained interest investments
Investments
Notes maturity year	2024

XML

Debt, Net - Schedule of Debt (Details) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022	Jan. 31, 2022	Mar. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Apr. 30, 2022	Apr. 30, 2020	Dec. 31, 2019
Debt instruments
Outstanding debt	$ 326,804				$ 326,804	$ 227,474
Unamortized discount and debt issuance costs	(5,719)				(5,719)	(4,440)
Debt, Net	$ 321,085				$ 321,085	$ 223,034
Weighted average effective interest rate of outstanding debt (as a percent)	4.60%				4.60%
Percentage of debt outstanding at fixed interest rates	40.30%				40.30%
Average remaining life of debt outstanding	14 years 2 months 12 days
Watersound Origins Crossings JV Loan
Debt instruments
Floor rate (as a percent)			3.30%		3.30%
Debt interest rate (as a percent)						5.00%
Effective interest rate (as a percent)	5.70%				5.70%
Outstanding debt	$ 44,015				$ 44,015	$ 37,897
Watersound Origins Crossings JV Loan | SOFR
Debt instruments
Basis spread on variable rate (as a percent)			2.80%		2.80%
PPN JV Loan
Debt instruments
Effective interest rate (as a percent)	4.10%				4.10%
Outstanding debt	$ 42,816				$ 42,816	43,582
Pier Park Resort Hotel JV Loan
Debt instruments
Effective interest rate (as a percent)	5.30%				5.30%
Outstanding debt	$ 38,333				$ 38,333	$ 14,650
Pier Park Resort Hotel JV Loan | Interest Rate Swap
Debt instruments
Notional amount	$ 42,000				$ 42,000			$ 42,000
Fixed interest rate (as a percent)	3.20%				3.20%
Pier Park Resort Hotel JV Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					2.20%	2.20%
PPC JV Loan (insured by HUD)
Debt instruments
Effective interest rate (as a percent)	3.10%				3.10%
Outstanding debt	$ 35,304				$ 35,304	$ 35,670
PPC II JV Loan (insured by HUD)
Debt instruments
Debt interest rate (as a percent)							2.70%
Effective interest rate (as a percent)	2.70%				2.70%
Outstanding debt	$ 22,723				$ 22,723	$ 17,374
PPC II JV Loan (insured by HUD) | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)				2.10%		2.10%
Watercrest JV Loan
Debt instruments
Effective interest rate (as a percent)	5.30%				5.30%
Outstanding debt	$ 21,150				$ 21,150	$ 20,053
Watercrest JV Loan | Interest Rate Swap
Debt instruments
Notional amount						$ 20,000			$ 20,000
Fixed interest rate (as a percent)						4.40%			4.40%
Watercrest JV Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					2.20%	2.20%
Breakfast Point Hotel Loan
Debt instruments
Floor rate (as a percent)					3.80%	3.80%
Effective interest rate (as a percent)	5.90%				5.90%
Outstanding debt	$ 16,413				$ 16,413	$ 11,843
Breakfast Point Hotel Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					2.80%	2.80%
North Bay Landing Apartments Loan
Debt instruments
Floor rate (as a percent)					3.20%	3.20%
Effective interest rate (as a percent)	5.60%				5.60%
Outstanding debt	$ 15,693				$ 15,693	$ 1,342
North Bay Landing Apartments Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					2.50%	2.50%
Airport Hotel Loan
Debt instruments
Floor rate (as a percent)					3.00%	3.00%
Effective interest rate (as a percent)	5.10%				5.10%
Outstanding debt	$ 14,642				$ 14,642	$ 14,642
Airport Hotel Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					2.00%	2.00%
Mexico Beach Crossings JV Loan (insured by HUD)
Debt instruments
Effective interest rate (as a percent)	3.00%				3.00%
Outstanding debt	$ 13,678				$ 13,678
Watersound Camp Creek Loan
Debt instruments
Floor rate (as a percent)					2.60%	2.60%
Effective interest rate (as a percent)	5.20%				5.20%
Outstanding debt	$ 13,131				$ 13,131	$ 3,437
Watersound Camp Creek Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					2.10%	2.10%
Lodge 30A JV Loan
Debt instruments
Effective interest rate (as a percent)	3.80%				3.80%
Outstanding debt	$ 13,039				$ 13,039	$ 7,474
Watersound Town Center Grocery Loan
Debt instruments
Floor rate (as a percent)					2.20%	2.20%
Effective interest rate (as a percent)	5.10%				5.10%
Outstanding debt	$ 9,586				$ 9,586	$ 620
Watersound Town Center Grocery Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					2.00%	2.00%
Hotel Indigo Loan
Debt instruments
Floor rate (as a percent)		2.70%			2.70%
Effective interest rate (as a percent)	5.70%				5.70%
Outstanding debt	$ 6,245				$ 6,245
Hotel Indigo Loan | SOFR
Debt instruments
Basis spread on variable rate (as a percent)		2.70%			2.70%
Beckrich Building III Loan
Debt instruments
Effective interest rate (as a percent)	4.80%				4.80%
Outstanding debt	$ 5,038				$ 5,038	$ 5,188
Beckrich Building III Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					1.70%	1.70%
Self-Storage Facility Loan
Debt instruments
Floor rate (as a percent)					2.90%	2.90%
Effective interest rate (as a percent)	5.50%				5.50%
Outstanding debt	$ 4,666				$ 4,666	$ 4,666
Self-Storage Facility Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					2.40%	2.40%
Community Development District debt
Debt instruments
Outstanding debt	$ 4,249				$ 4,249	$ 4,909
Community Development District debt | Minimum
Debt instruments
Effective interest rate (as a percent)	3.60%				3.60%
Community Development District debt | Maximum
Debt instruments
Effective interest rate (as a percent)	6.00%				6.00%
Topsail Hotel Loan
Debt instruments
Floor rate (as a percent)					3.00%
Effective interest rate (as a percent)	5.10%				5.10%
Outstanding debt	$ 2,107				$ 2,107
Topsail Hotel Loan | SOFR
Debt instruments
Basis spread on variable rate (as a percent)					2.10%
Beach Homes Loan
Debt instruments
Effective interest rate (as a percent)	4.80%				4.80%
Outstanding debt	$ 1,455				$ 1,455	$ 1,492
Beach Homes Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					1.70%	1.70%
Pier Park Outparcel Loan
Debt instruments
Effective interest rate (as a percent)	4.80%				4.80%
Outstanding debt	$ 1,312				$ 1,312	$ 1,370
Pier Park Outparcel Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					1.70%	1.70%
WaterColor Crossings Loan
Debt instruments
Effective interest rate (as a percent)	4.80%				4.80%
Outstanding debt	$ 1,209				$ 1,209	$ 1,265
WaterColor Crossings Loan | LIBOR
Debt instruments
Basis spread on variable rate (as a percent)					1.70%	1.70%

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Debt, Net - Debt Agreements (Details) $ in Thousands	1 Months Ended													9 Months Ended	12 Months Ended		60 Months Ended
	Jul. 31, 2022 USD ($)	Jun. 30, 2022	May 31, 2022	Apr. 30, 2022 USD ($)	Jan. 31, 2022 USD ($)	Oct. 31, 2021 USD ($)	Aug. 31, 2021 USD ($)	Jun. 30, 2021 USD ($)	Mar. 31, 2021 USD ($)	Jan. 31, 2021 USD ($)	Nov. 30, 2020 USD ($)	Apr. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Sep. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2018 USD ($) home	Oct. 31, 2028	Mar. 31, 2022 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2015 USD ($)
Debt instruments
Outstanding debt														$ 326,804	$ 227,474
Loss on extinguishment of debt														130
Community Development District debt (CDD)														13,200	14,100
Assets														1,339,540	1,208,151
Asset Pledged as Collateral without Right
Debt instruments
Assets														$ 469,300
Assets, Pledging Purpose														Outstanding debt
Watersound Origins Crossings JV Loan
Debt instruments
Loan amount					$ 44,000														$ 37,900
Outstanding debt														$ 44,015	$ 37,897
Debt interest rate (as a percent)															5.00%
Floor rate (as a percent)					3.30%									3.30%
Company's liability as guarantor, upon reaching and maintaining a certain debt service coverage ratio (as a percent)			25.00%
Watersound Origins Crossings JV Loan | Maximum
Debt instruments
Loan costs														$ 100
Watersound Origins Crossings JV Loan | SOFR
Debt instruments
Basis spread on variable rate (as a percent)					2.80%									2.80%
PPN JV Loan
Debt instruments
Loan amount																					$ 48,200
Outstanding debt														$ 42,816	$ 43,582
Pier Park Resort Hotel JV Loan
Debt instruments
Loan amount												$ 52,500
Outstanding debt														38,333	14,650
Debt instrument, period subject to interest payments only												36 months
Debt service coverage period												12 months
Pier Park Resort Hotel JV Loan | Maximum
Debt instruments
Loan amount												$ 60,000
Pier Park Resort Hotel JV Loan | Interest Rate Swap
Debt instruments
Notional amount												$ 42,000		$ 42,000
Fixed interest rate (as a percent)														3.20%
PPC JV Loan (insured by HUD)
Debt instruments
Loan amount																$ 36,600
Outstanding debt														$ 35,304	35,670
PPC JV Loan (insured by HUD) | Minimum
Debt instruments
Prepayment premium, as a percent of principal repaid																2.00%
PPC JV Loan (insured by HUD) | Maximum
Debt instruments
Prepayment premium, as a percent of principal repaid																10.00%
PPC II JV Loan
Debt instruments
Loan amount																			17,500
Outstanding debt																		$ 17,300
PPC II JV Loan (insured by HUD)
Debt instruments
Loan amount				$ 22,900
Outstanding debt														22,723	17,374
Debt interest rate (as a percent)				2.70%
Additional loan cost from refinance														200
Loss on extinguishment of debt														100
PPC II JV Loan (insured by HUD) | Minimum
Debt instruments
Prepayment premium, as a percent of principal repaid				1.00%
PPC II JV Loan (insured by HUD) | Maximum
Debt instruments
Prepayment premium, as a percent of principal repaid				10.00%
Watercrest JV Loan
Debt instruments
Loan amount																			22,500
Outstanding debt														21,150	20,053
Watercrest JV Loan | Interest Rate Swap
Debt instruments
Notional amount															$ 20,000				$ 20,000
Fixed interest rate (as a percent)															4.40%				4.40%
Gain on swap upon termination				$ 100
Breakfast Point Hotel Loan
Debt instruments
Loan amount											$ 16,800
Outstanding debt														$ 16,413	$ 11,843
Debt instrument, period subject to interest payments only											24 months
Floor rate (as a percent)														3.80%	3.80%
North Bay Landing Apartments Loan
Debt instruments
Loan amount									$ 26,800
Outstanding debt														$ 15,693	$ 1,342
Floor rate (as a percent)														3.20%	3.20%
Loan extension period									18 months
Company's liability as guarantor, upon satisfaction of final advance conditions (as a percent)									50.00%
Company's liability as guarantor, upon reaching and maintaining a certain debt service coverage ratio (as a percent)									25.00%
Airport Hotel Loan
Debt instruments
Loan amount													$ 15,300
Outstanding debt														$ 14,642	$ 14,642
Debt instrument, period subject to interest payments only													36 months
Floor rate (as a percent)														3.00%	3.00%
Mexico Beach Crossings JV Loan (insured by HUD)
Debt instruments
Loan amount					$ 43,500
Outstanding debt														$ 13,678
Debt instrument, period subject to interest payments only					27 months
Mexico Beach Crossings JV Loan (insured by HUD) | Minimum
Debt instruments
Prepayment premium, as a percent of principal repaid					1.00%
Mexico Beach Crossings JV Loan (insured by HUD) | Maximum
Debt instruments
Prepayment premium, as a percent of principal repaid					10.00%
Watersound Camp Creek Loan
Debt instruments
Loan amount								$ 28,000
Outstanding debt														$ 13,131	$ 3,437
Debt instrument, period subject to interest payments only								18 months
Floor rate (as a percent)														2.60%	2.60%
Company's liability as guarantor, upon reaching and maintaining a trailing six months of operations with a certain debt service coverage ratio (as a percent)								50.00%
Trailing period one for determining Company's liability as guarantor under loan								6 months
Company's liability as guarantor, upon reaching and maintaining a trailing twelve months operations with a certain debt service coverage ratio (as a percent)								25.00%
Trailing period two for determining Company's liability as guarantor under loan								12 months
Lodge 30A JV Loan
Debt instruments
Loan amount										$ 15,000
Outstanding debt														$ 13,039	$ 7,474
Debt instrument, period subject to interest payments only										24 months
Debt service coverage period										24 months
Company's liability as guarantor, third year (as a percent)										75.00%
Company's liability as guarantor, period for lower liability percentage										12 months
Company's liability as guarantor, fourth year (as a percent)										50.00%
Company's liability as guarantor, fifth year (as a percent)										25.00%
Watersound Town Center Grocery Loan
Debt instruments
Loan amount							$ 12,000
Outstanding debt														$ 9,586	$ 620
Debt instrument, period subject to interest payments only							24 months
Floor rate (as a percent)														2.20%	2.20%
Company's liability as guarantor, upon satisfaction of final advance conditions (as a percent)							50.00%
Company's liability as guarantor, upon reaching and maintaining a certain debt service coverage ratio (as a percent)							25.00%
Occupancy requirement (as a percent)							93.00%
Occupancy period							90 days
Hotel Indigo Loan
Debt instruments
Loan amount						$ 21,200
Outstanding debt														$ 6,245
Debt instrument, period subject to interest payments only						24 months
Floor rate (as a percent)		2.70%												2.70%
Loan extension period						60 months
Hotel Indigo Loan | Forecast
Debt instruments
Floor rate (as a percent)																	2.50%
Hotel Indigo Loan | SOFR
Debt instruments
Basis spread on variable rate (as a percent)		2.70%												2.70%
Hotel Indigo Loan | SOFR | Forecast
Debt instruments
Basis spread on variable rate (as a percent)																	2.50%
Beckrich Building III Loan
Debt instruments
Loan amount																			$ 5,500
Outstanding debt														$ 5,038	$ 5,188
Self-Storage Facility Loan
Debt instruments
Loan amount											$ 5,800
Outstanding debt														$ 4,666	$ 4,666
Debt instrument, period subject to interest payments only											48 months
Floor rate (as a percent)														2.90%	2.90%
Self-Storage Facility Loan | Maximum
Debt instruments
Amount of liability as guarantor											$ 2,900
Community Development District debt
Debt instruments
Outstanding debt														$ 4,249	$ 4,909
Topsail Hotel Loan
Debt instruments
Loan amount	$ 13,700
Outstanding debt														$ 2,107
Debt instrument, period subject to interest payments only	36 months
Floor rate (as a percent)														3.00%
Topsail Hotel Loan | SOFR
Debt instruments
Basis spread on variable rate (as a percent)														2.10%
Beach Homes Loan
Debt instruments
Loan amount																$ 1,700
Outstanding debt														$ 1,455	1,492
Number of homes financed | home																2
Pier Park Outparcel Loan
Debt instruments
Loan amount																				$ 1,600
Outstanding debt														1,312	1,370
WaterColor Crossings Loan
Debt instruments
Loan amount																$ 1,900
Outstanding debt														$ 1,209	$ 1,265

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Debt, Net - Maturities of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt, Net
2022	$ 716
2023	5,268
2024	66,599
2025	64,377
2026	5,490
Thereafter	184,354
Long term debt	$ 326,804	$ 227,474

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Other Liabilities - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Other Liabilities
Accounts payable	$ 61,249	$ 48,597
Income tax payable		681
Finance lease liabilities	301	380
Operating lease liabilities	761	732
Accrued compensation	5,138	4,877
Other accrued liabilities	8,367	4,126
Club membership deposits	3,485	3,602
Advance deposits	3,324	2,140
Accrued interest expense for Senior Notes held by SPE	713	2,850
Total other liabilities	$ 83,338	$ 67,985
Finance Lease, Liability, Statement of Financial Position	Total other liabilities	Total other liabilities
Operating Lease, Liability, Statement of Financial Position	Total other liabilities	Total other liabilities
Accrued property taxes	$ 5,200	$ 200

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Deferred Revenue - Summary (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Deferred Revenue
Deferred revenue	$ 39,311	$ 36,207
Club Membership
Deferred Revenue
Deferred revenue	24,987	22,850	$ 19,823	$ 10,716
Other
Deferred Revenue
Deferred revenue	$ 14,300	$ 13,400

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Deferred Revenue - Changes in Club Initiation Fees (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Change in contract with customer liability
Balance at beginning of period	$ 36,207
Balance at end of period	39,311
Club Membership
Change in contract with customer liability
Balance at beginning of period	22,850	$ 10,716
New club memberships	7,335	12,283
Revenue from amounts included in contract liability opening balance	(4,663)	(2,310)
Revenue from current period new memberships	(535)	(866)
Balance at end of period	$ 24,987	$ 19,823

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Deferred Revenue - Performance Obligations (Details) $ in Millions	Sep. 30, 2022 USD ($)
Performance obligations
Remaining performance obligations	$ 25.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01
Performance obligations
Remaining performance obligations	$ 1.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	3 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Performance obligations
Remaining performance obligations	$ 11.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Performance obligations
Remaining performance obligations	$ 9.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01
Performance obligations
Remaining performance obligations	$ 3.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period

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Deferred Revenue - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Deferred Revenue
Deferred revenue	$ 39,311	$ 36,207
Other
Deferred Revenue
Deferred revenue	14,300	13,400
Other | Florida Department of Transportation
Deferred Revenue
Deferred revenue	$ 10,900	$ 10,900

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Income Taxes - Expense (Benefit) Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Taxes
Statutory federal income tax rate (as a percent)			21.00%	21.00%
Tax at the statutory federal rate	$ 3,467	$ 4,543	$ 12,063	$ 12,139
State income taxes (net of federal benefit)	799	340	2,703	1,614
Change in state tax rate		1,392		1,308
Tax credits	(70)	(63)	(179)	(156)
Other	(33)	217	56	275
Total income tax expense	$ 4,163	$ 6,429	$ 14,643	$ 15,180

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Income Taxes - Tax receivable and tax payable (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Income Taxes
Income tax receivable	$ 1,558
Income tax payable		$ 681

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Income Taxes - Tax Rates (Details) - Florida Department of Revenue	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income taxes
Tax at the state statutory rate (as a percent)		3.50%	4.50%
Forecast
Income taxes
Tax at the state statutory rate (as a percent)	5.50%

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Income Taxes - Valuation Allowances (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Income Taxes
Valuation allowance	$ 0.3	$ 0.3

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Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Summary of changes in accumulated other comprehensive loss (income)
Beginning Balance	$ 647,440	$ 588,515	$ 626,100	$ 568,170
Amounts reclassified from accumulated other comprehensive income	11	115	112	188
Total other comprehensive income, net of tax	1,391	341	3,791	592
Less: Other comprehensive income attributable to non-controlling interest	(21,212)		(21,212)		$ (18,691)
Ending Balance	636,465	$ 598,618	636,465	$ 598,618
Accumulated Other Comprehensive (Loss) Income, Including non-controlling interest
Summary of changes in accumulated other comprehensive loss (income)
Beginning Balance			(389)
Other comprehensive (loss) income before reclassifications			3,679
Amounts reclassified from accumulated other comprehensive income			112
Total other comprehensive income, net of tax			3,791
Less: Other comprehensive income attributable to non-controlling interest	(1,355)		(1,355)
Ending Balance	2,047		2,047
Unrealized (Loss) Gain on Available-for-Sale Securities
Summary of changes in accumulated other comprehensive loss (income)
Beginning Balance			(7)
Other comprehensive (loss) income before reclassifications			(512)
Total other comprehensive income, net of tax			(512)
Ending Balance	(519)		(519)
Unrealized (Loss) Gain Cash Flow Hedges, Interest rate swap
Summary of changes in accumulated other comprehensive loss (income)
Beginning Balance			(382)
Other comprehensive (loss) income before reclassifications			4,191
Amounts reclassified from accumulated other comprehensive income			112
Total other comprehensive income, net of tax			4,303
Less: Other comprehensive income attributable to non-controlling interest	(1,355)		(1,355)
Ending Balance	$ 2,566		$ 2,566

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Accumulated Other Comprehensive Income (Loss) - Summary of the Tax Effects Allocated to Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income (Loss)
Reclassification adjustment for net loss included in earnings before-tax amount	$ 15	$ 154	$ 150	$ 251
Reclassification adjustment for net loss (gain) included in earnings, Tax (expense) or benefit	(4)	(39)	(38)	(63)
Reclassification adjustment for net loss (gain) included in earnings net-of-tax amount	11	115	112	188
Total before income taxes	1,718	457	4,619	793
Other comprehensive loss, Tax (expense) or benefit	(327)	(116)	(828)	(201)
Total other comprehensive income, net of tax	1,391	341	3,791	592
Accumulated Other Comprehensive (Loss) Income, Including non-controlling interest
Accumulated Other Comprehensive Income (Loss)
Unrealized loss on investments, Net-of-tax amount			3,679
Reclassification adjustment for net loss (gain) included in earnings net-of-tax amount			112
Total other comprehensive income, net of tax			3,791
Unrealized (Loss) Gain on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss)
Unrealized loss on investments, Net-of-tax amount			(512)
Total other comprehensive income, net of tax			(512)
Unrealized (Loss) Gain Cash Flow Hedges, Interest rate swap
Accumulated Other Comprehensive Income (Loss)
Unrealized loss on investments, Net-of-tax amount			4,191
Reclassification adjustment for net loss (gain) included in earnings net-of-tax amount			112
Total other comprehensive income, net of tax			4,303
Unrealized (Loss) Gain Cash Flow Hedges, Interest rate swap | Interest rate swaps
Accumulated Other Comprehensive Income (Loss)
Unrealized gain (loss) on investments, Before-tax amount	1,427	301	4,540	410
Unrealized gain (loss) on investments, Tax (expense) or benefit	(253)	(76)	(808)	(104)
Unrealized loss on investments, Net-of-tax amount	1,174	225	3,732	306
Unrealized (Loss) Gain Cash Flow Hedges, Interest rate swap | Interest rate swap - unconsolidated joint venture
Accumulated Other Comprehensive Income (Loss)
Unrealized gain (loss) on investments, Before-tax amount	307	(1)	615	133
Unrealized gain (loss) on investments, Tax (expense) or benefit	(78)		(156)	(34)
Unrealized loss on investments, Net-of-tax amount	229	(1)	459	99
Available-for-sale, Debt securities | Unrealized (Loss) Gain on Available-for-Sale Securities
Accumulated Other Comprehensive Income (Loss)
Unrealized gain (loss) on investments, Before-tax amount	(31)	3	(686)	(1)
Unrealized gain (loss) on investments, Tax (expense) or benefit	8	(1)	174
Unrealized loss on investments, Net-of-tax amount	$ (23)	$ 2	$ (512)	$ (1)

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Stockholders' Equity - Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stockholders' Equity
Dividends paid (in dollars per share)	$ 0.10	$ 0.08	$ 0.30	$ 0.24
Amount of dividends paid	$ 5,900	$ 4,700	$ 17,666	$ 14,133

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Stockholders' Equity - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Stockholders' Equity
Average purchase price per share for share repurchase (in dollars per share)	$ 34.78		$ 34.81
Aggregate cost	$ 19,800		$ 19,972
Authorized repurchase amount	$ 80,000		$ 80,000
Common Stock
Stockholders' Equity
Shares repurchased during the period (in shares)	572,203	0	576,963	0

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Stockholders' Equity - Issuance of Common Stock (Details) - Restricted Stock - USD ($) $ / shares in Units, $ in Millions			3 Months Ended		9 Months Ended
	Apr. 08, 2022	Feb. 22, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-based compensation
Number of restricted stock awards granted	4,361	25,594
Number of awards vested			0	0	0	0
Number of awards forfeited			0	0	0	0
Stock awards expense			$ 0.1	$ 0.0	$ 0.3	$ 0.0
Unrecognized compensation cost			$ 1.2		$ 1.2
Recognition period					3 years 4 months 24 days
Awards granted February 22, 2022
Share-based compensation
Percentage of stock awards vesting each year		33.30%
Weighted average grant date fair value, granted (in dollars per share)					$ 46.73
Awards granted, April 8, 2022
Share-based compensation
Weighted average grant date fair value, granted (in dollars per share)					$ 55.73

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Revenue Recognition - Disaggregation of revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Disaggregation of revenue
Leasing revenue	$ 10,049	$ 7,146	$ 28,215	$ 19,112
Total revenue	57,576	53,996	190,697	167,540
Recognized at a point in time
Disaggregation of revenue
Revenue	40,257	41,642	141,654	134,664
Recognized over time
Disaggregation of revenue
Revenue	7,270	5,208	20,828	13,764
Real Estate
Disaggregation of revenue
Revenue	17,330	23,500	82,132	85,615
Hospitality
Disaggregation of revenue
Revenue	29,035	22,292	74,912	57,986
Timber
Disaggregation of revenue
Revenue	1,162	1,058	5,438	4,827
Operating Segments | Residential segment
Disaggregation of revenue
Leasing revenue	5	45	50	129
Total revenue	15,050	21,648	70,774	74,799
Operating Segments | Residential segment | Recognized at a point in time
Disaggregation of revenue
Revenue	15,045	21,603	70,724	74,670
Operating Segments | Residential segment | Real Estate
Disaggregation of revenue
Revenue	15,045	21,603	70,724	74,670
Operating Segments | Hospitality segment
Disaggregation of revenue
Leasing revenue	204	20	263	39
Total revenue	29,047	21,957	74,654	57,413
Operating Segments | Hospitality segment | Recognized at a point in time
Disaggregation of revenue
Revenue	21,573	16,729	53,563	43,610
Operating Segments | Hospitality segment | Recognized over time
Disaggregation of revenue
Revenue	7,270	5,208	20,828	13,764
Operating Segments | Hospitality segment | Hospitality
Disaggregation of revenue
Revenue	28,843	21,937	74,391	57,374
Operating Segments | Commercial segment
Disaggregation of revenue
Leasing revenue	9,800	7,076	27,800	18,920
Total revenue	12,618	10,049	43,340	34,130
Operating Segments | Commercial segment | Recognized at a point in time
Disaggregation of revenue
Revenue	2,818	2,973	15,540	15,210
Operating Segments | Commercial segment | Real Estate
Disaggregation of revenue
Revenue	1,464	1,560	9,581	9,771
Operating Segments | Commercial segment | Hospitality
Disaggregation of revenue
Revenue	192	355	521	612
Operating Segments | Commercial segment | Timber
Disaggregation of revenue
Revenue	1,162	1,058	5,438	4,827
Other reconciling items
Disaggregation of revenue
Leasing revenue	40	5	102	24
Total revenue	861	342	1,929	1,198
Other reconciling items | Recognized at a point in time
Disaggregation of revenue
Revenue	821	337	1,827	1,174
Other reconciling items | Real Estate
Disaggregation of revenue
Revenue	$ 821	$ 337	$ 1,827	$ 1,174

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Other Income, Net - Components (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Investment income, net
Interest, dividend and accretion income	$ 355	$ 52	$ 732	$ 103
Net realized gain on the sale of investments				17
Unrealized gain (loss) on investments, net	31	63	91	(1,947)
Interest income from investments in SPEs	2,003	2,003	6,009	6,075
Interest earned on notes receivable and other interest	346	213	699	565
Total investment income, net	2,735	2,331	7,531	4,813
Interest expense
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE	(2,211)	(2,207)	(6,629)	(6,619)
Other interest expense	(2,516)	(1,907)	(6,322)	(5,020)
Total interest expense	(4,727)	(4,114)	(12,951)	(11,639)
Gain on contributions to unconsolidated joint ventures	1,430		2,001	3,290
Other income (expense), net
Accretion income from retained interest investments	412	392	1,262	1,129
Gain on insurance recovery	875	2,540	4,186	3,924
Loss from hurricane damage	(7)	(11)	(51)	(26)
Miscellaneous income, net	848	4,408	648	4,568
Other income, net	2,128	7,329	6,045	9,595
Total other (expense) income, net	$ 1,566	$ 5,546	$ 2,626	$ 6,059

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Other Income, Net - Interest Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Other Income, Net
Capitalized interest cost	$ 0.9	$ 0.2	$ 1.8	$ 0.9
Senior Notes held by special purpose entity
Other Income, Net
Effective interest rate (as a percent)	4.90%		4.90%

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Other Income, Net - Gain on Contributions and Other Income, Net (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Watersound Fountains Independent Living JV
Other Income, Net
Gain on land contribution			$ 3.1
Electric Cart Watersound JV
Other Income, Net
Gain on land contribution		$ 0.4
Latitude Margaritaville Watersound JV
Other Income, Net
Gain on additional infrastructure improvements contributed	$ 0.1	0.2	$ 0.2
Pier Park RI JV
Other Income, Net
Gain on land contribution	$ 1.4	$ 1.4

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Other Income, Net - Other Income, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Other Income, Net
Gain on insurance recovery	$ 875	$ 2,540	$ 4,186	$ 3,924
Loss from hurricane damage	7	11	51	26
Gain on retained interest investment	300		1,000
Income from Pier Park CDD associated with repayment of subordinated note	800	900	1,800	900
Design costs for projects no longer pursued			1,100
Homeowners association special assessment			$ 600
Florida Division of Emergency Management's Florida Timber Recovery Block Grant Program
Other Income, Net
Miscellaneous income		3,600		3,600
Minimum
Other Income, Net
Retained interest, effective interest rate (as a percent)			4.80%
Maximum
Other Income, Net
Retained interest, effective interest rate (as a percent)			12.70%
Loss from hurricane damage		100		100
Hurricane Michael.
Other Income, Net
Gain on insurance recovery	900	2,500	$ 4,200	3,900
Hurricane Michael. | Maximum
Other Income, Net
Loss from hurricane damage	$ 100	$ 100	$ 100	$ 100

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Segment Information - Reportable Segments (Details)	9 Months Ended
	Sep. 30, 2022 segment
Segment Information
Number of reportable segments	3

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Segment Information - Information by Business Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Segments
Total revenue	$ 57,576	$ 53,996	$ 190,697	$ 167,540
Consolidated income before equity in income (loss) from unconsolidated joint ventures and income taxes	13,743	21,707	53,832	58,509
Other income, net	2,128	7,329	6,045	9,595
Gain on insurance recovery	875	2,540	4,186	3,924
Total assets	1,339,540		1,339,540		$ 1,208,151
Hurricane Michael.
Segments
Gain on insurance recovery	900	2,500	4,200	3,900
Pier Park RI JV
Segments
Gain on land contribution	1,400		1,400
Electric Cart Watersound JV
Segments
Gain on land contribution			400
Watersound Fountains Independent Living JV
Segments
Gain on land contribution				3,100
Commercial segment | Florida Division of Emergency Management's Florida Timber Recovery Block Grant Program
Segments
Other income, net		3,600		3,600
Commercial segment | Pier Park RI JV
Segments
Gain on land contribution	1,400		1,400
Commercial segment | Electric Cart Watersound JV
Segments
Gain on land contribution			400
Commercial segment | Watersound Fountains Independent Living JV
Segments
Gain on land contribution				3,100
Operating Segments | Residential segment
Segments
Total revenue	15,050	21,648	70,774	74,799
Consolidated income before equity in income (loss) from unconsolidated joint ventures and income taxes	8,473	12,817	36,073	41,014
Total assets	213,301		213,301		192,290
Operating Segments | Hospitality segment
Segments
Total revenue	29,047	21,957	74,654	57,413
Consolidated income before equity in income (loss) from unconsolidated joint ventures and income taxes	4,404	4,195	9,187	9,901
Total assets	347,330		347,330		256,751
Operating Segments | Commercial segment
Segments
Total revenue	12,618	10,049	43,340	34,130
Consolidated income before equity in income (loss) from unconsolidated joint ventures and income taxes	1,992	4,623	11,533	14,867
Total assets	457,538		457,538		378,118
Other reconciling items
Segments
Total revenue	861	342	1,929	1,198
Consolidated income before equity in income (loss) from unconsolidated joint ventures and income taxes	(1,126)	72	(2,961)	(7,273)
Total assets	321,371		321,371		$ 380,992
Other reconciling items | Hurricane Michael.
Segments
Gain on insurance recovery	$ 900	$ 2,500	$ 4,200	$ 3,900

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Commitments and Contingencies - (Details) - USD ($)	1 Months Ended
	Sep. 30, 2022	Apr. 30, 2021	Nov. 30, 2020	Jan. 31, 2019	Dec. 31, 2021	Jan. 14, 2021	Jun. 30, 2020	Dec. 31, 2019
Obligations
Accrued liabilities for other litigation, claims, other disputes and governmental proceedings	$ 400,000				$ 400,000
Amount of letters of credit outstanding	19,400,000				12,900,000
Purchase obligations, total	169,000,000.0
Outstanding debt	326,804,000				227,474,000
Allowance for credit losses within other liabilities	100,000				100,000
Latitude Margaritaville Watersound JV, secured by the JV's real property - bearing interest at a rate of 5.0%, matures June 2025
Obligations
Amount committed to fund							$ 10,000,000.0
Note receivable	0				7,100,000
Latitude Margaritaville Watersound JV
Obligations
Amount as lender of secured revolving promissory note	10,000,000.0				10,000,000.0		$ 10,000,000.0
Surety bonds
Obligations
Commitment obligations	$ 36,700,000				36,900,000
Pier Park TPS JV | Pier Park TPS JV Loan
Obligations
Guarantor liability, Scenario 2 (as a percent)								25.00%
Watersound Fountains Independent Living JV | Watersound Fountains JV Loan, due April 2026
Obligations
Guarantor liability, Scenario 1 (as a percent)		50.00%
Guarantor liability, Scenario 2 (as a percent)		25.00%
Guarantor liability, Scenario 3 (as a percent)		0.00%
Electric Cart Watersound JV | Electric Cart Watersound JV Loan
Obligations
Guarantor liability, Scenario 1 (as a percent)	50.00%
Initial period of loan after which the Company's liability as guarantor under the loan will be reduced upon reaching certain conditions	48 months
Unconsolidated joint ventures
Obligations
Outstanding debt	$ 89,912,000				62,701,000
Pier Park TPS JV
Obligations
Outstanding debt	13,898,000				14,124,000
Pier Park TPS JV | Pier Park TPS JV Loan
Obligations
Loan amount								$ 14,400,000
Outstanding debt	13,900,000				14,100,000
Pier Park TPS JV | Pier Park TPS JV Loan | LIBOR
Obligations
Basis spread on variable rate (as a percent)				2.50%
Pier Park TPS JV | Interest Rate Swap
Obligations
Notional amount						$ 14,400,000
Pier Park TPS JV | Interest Rate Swap | Pier Park TPS JV Loan
Obligations
Fixed interest rate (as a percent)						5.20%
Latitude Margaritaville Watersound JV
Obligations
Outstanding debt	11,795,000				7,147,000
Latitude Margaritaville Watersound JV | Latitude Margaritaville Watersound JV Loan, due November 2023
Obligations
Loan amount			$ 25,000,000.0
Outstanding debt	11,800,000				0
Floor rate (as a percent)			3.30%
Debt instrument, period by which maturity date may be extended			3 years
Latitude Margaritaville Watersound JV | Latitude Margaritaville Watersound JV Loan, due November 2023 | LIBOR
Obligations
Basis spread on variable rate (as a percent)			2.50%
Watersound Fountains Independent Living JV
Obligations
Outstanding debt	18,755,000				66,000
Watersound Fountains Independent Living JV | Watersound Fountains JV Loan, due April 2026
Obligations
Loan amount		$ 41,900,000
Outstanding debt	18,800,000				$ 100,000
Floor rate (as a percent)		2.50%
Debt instrument, period subject to interest payments only		48 months
Debt instrument, period by which maturity date may be extended		12 months
Watersound Fountains Independent Living JV | Watersound Fountains JV Loan, due April 2026 | LIBOR
Obligations
Basis spread on variable rate (as a percent)		2.00%
Electric Cart Watersound JV
Obligations
Outstanding debt	634,000
Electric Cart Watersound JV | Electric Cart Watersound JV Loan
Obligations
Loan amount	5,400,000
Outstanding debt	$ 600,000
Floor rate (as a percent)	2.10%
Debt instrument, period subject to interest payments only	24 months
Electric Cart Watersound JV | Electric Cart Watersound JV Loan | SOFR
Obligations
Basis spread on variable rate (as a percent)	1.80%

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Subsequent Event (Details) - $ / shares			3 Months Ended		9 Months Ended
	Dec. 09, 2022	Oct. 26, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Subsequent Event
Dividends declared (in dollars per share)			$ 0.10	$ 0.08	$ 0.30	$ 0.24
Dividends paid (in dollars per share)			$ 0.10	$ 0.08	$ 0.30	$ 0.24
Forecast
Subsequent Event
Dividends paid (in dollars per share)	$ 0.10
Subsequent Event
Subsequent Event
Dividends declared (in dollars per share)		$ 0.10