Segment Information

12 Months Ended

Dec. 31, 2023

Segment Information

Segment Information

19. 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 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 the same as those described herein. Total revenue represents sales to unaffiliated customers, as reported in the Company’s consolidated statements of income. All significant intercompany transactions have been eliminated in consolidation. The captions 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:

	Year Ended December 31,
	2023		2022		2021
Operating revenue:
Residential	$	155,820	$	92,886	$	144,854
Hospitality		154,574		97,236		74,591
Commercial		74,437		59,379		45,557
Other		4,454		2,820		1,994
Consolidated operating revenue	$	389,285	$	252,321	$	266,996
Cost of revenue:
Cost of residential revenue	$	77,946	$	44,115	$	56,889
Cost of hospitality revenue		124,813		77,862		57,494
Cost of commercial revenue		30,300		21,786		15,393
Cost of other revenue		2,920		2,135		1,538
Consolidated cost of revenue	$	235,979	$	145,898	$	131,314
Corporate and other operating expenses:
Residential	$	4,501	$	3,901	$	4,799
Hospitality		1,820		1,179		1,003
Commercial		4,321		4,239		3,969
Other		13,155		12,749		13,252
Consolidated corporate and other operating expenses	$	23,797	$	22,068	$	23,023

	Year Ended December 31,
	2023		2022		2021
Depreciation, depletion and amortization:
Residential	$	211	$	156	$	179
Hospitality		22,101		9,366		6,966
Commercial		16,056		12,968		10,662
Other		408		398		395
Consolidated depreciation, depletion and amortization	$	38,776	$	22,888	$	18,202
Investment income, net:
Residential	$	1,691	$	1,046	$	828
Hospitality		265		—		—
Commercial		49		33		46
Other (a)		11,277		8,783		6,380
Consolidated investment income, net	$	13,282	$	9,862	$	7,254
Interest expense:
Residential	$	421	$	484	$	581
Hospitality		9,657		1,709		488
Commercial		11,680		7,343		5,949
Other (b)		8,860		8,847		8,836
Consolidated interest expense	$	30,618	$	18,383	$	15,854
Gain on contributions to unconsolidated joint ventures:
Residential	$	718	$	939	$	503
Commercial (c) (d)		—		1,799		3,055
Consolidated gain on contributions to unconsolidated joint ventures	$	718	$	2,738	$	3,558
Equity in income (loss) from unconsolidated joint ventures:
Residential (e)	$	23,627	$	3,859	$	(1,861)
Commercial (f)		(926)		22,127		996
Consolidated equity in income (loss) from unconsolidated joint ventures	$	22,701	$	25,986	$	(865)
Other income (expense), net:
Residential	$	202	$	(508)	$	113
Hospitality		(82)		1,807		635
Commercial (g)		30		(687)		3,722
Other (h)		3,095		12,335		5,711
Other income, net	$	3,245	$	12,947	$	10,181
Income (loss) before income taxes:
Residential (e)	$	98,978	$	49,566	$	81,989
Hospitality		(3,635)		8,929		9,275
Commercial (c) (d) (f) (g)		11,233		36,316		17,403
Other (a) (b) (h)		(6,515)		(194)		(9,936)
Consolidated income before income taxes	$	100,061	$	94,617	$	98,731

	Year Ended December 31,
	2023		2022		2021
Capital expenditures:
Residential	$	74,362	$	92,203	$	52,838
Hospitality (i)		72,275		171,056		101,686
Commercial		70,077		92,992		45,843
Other		1,047		441		452
Total capital expenditures	$	217,761	$	356,692	$	200,819

	December 31,		December 31,
	2023		2022
Investment in unconsolidated joint ventures:
Residential	$	49,036	$	33,236
Commercial		17,320		16,789
Total investment in unconsolidated joint ventures	$	66,356	$	50,025
Total assets:
Residential	$	233,957	$	225,854
Hospitality		465,828		425,529
Commercial		511,978		470,629
Other		311,767		308,827
Total assets	$	1,523,530	$	1,430,839

(a) Includes interest income from investments in SPEs of $8.0 million in each 2023 and 2022 and $8.1 million in 2021.

(b) Includes interest expense from Senior Notes issued by SPE of $8.9 million in 2023 and $8.8 million in each 2022 and 2021.

(c) Includes gains in 2022 of $1.4 million on land and impact fees contributed to the unconsolidated Pier Park RI JV and $0.4 million on land contributed to the unconsolidated Electric Cart Watersound JV. See Note 4. Joint Ventures and Note 18. Other Income, Net for additional information.

(d) Includes a gain of $3.1 million in 2021 on land contributed to the unconsolidated Watersound Fountains Independent Living JV. See Note 4. Joint Ventures and Note 18. Other Income, Net for additional information.

(e) Includes $23.6 million and $3.9 million of equity in income from unconsolidated joint ventures during 2023 and 2022, respectively, and $1.9 million of equity in loss from unconsolidated joint ventures in 2021 related to the Latitude Margaritaville Watersound JV. The Latitude Margaritaville Watersound JV began completing home sale transactions in the fourth quarter of 2021. See Note 4. Joint Ventures for additional information.

(f) Includes a gain of $21.7 million in 2022 related to the sale of the Sea Sound JV assets. See Note 4. Joint Ventures and Note 18. Other Income, Net for additional information.

(g) Includes $1.1 million and $3.6 million in 2023 and 2021, respectively, received from the Florida Division of Emergency Management’s TRBG program. See Note 18. Other Income, Net for additional information.

(h) Includes gain on insurance recovery of $9.7 million and $4.9 million in 2022 and 2021, respectively, related to Hurricane Michael. See Note 18. Other Income, Net for additional information.

(i) Includes acquisition of The Pearl Hotel in 2022. See Note 3. Investment in Real Estate, Net for additional information.