JOE Sells Non-Strategic Assets - Analyst Blog
The St. Joe Company (JOE), a publicly held operationally diversified real estate company, recently sold St. Johns Golf & Country Club, an 18-hole daily fee course, clubhouse and maintenance facility, for $2.4 million. The asset was sold to Billy Casper Golf Management, a Northern Virginia golf management company that manages over 100 golf courses across the U.S., including the Bent Creek Golf Course in Jacksonville.
In accordance with the disposal of the non-strategic asset, St. Joe will record a pre-tax, non-cash impairment charge of approximately $3.6 million in its fourth quarter results. During the quarter, St. Joe also sold its remaining assets in Victoria Park, a residential community in Deland, Florida, for about $11 million in cash. The company will record a pre-tax, non-cash impairment charge of approximately $68 million related to this sale in its fourth quarter results.
Based in Jacksonville, St. Joe is one of Florida’s largest real estate developers engaged in town, resort, commercial, and industrial development, land sales, and commercial real estate operations. The company also has significant interests in the timber industry.
St. Joe is currently in a defensive mode and continues to reduce capital expenditures to conserve cash. Capital expenditures for the first nine months of 2009 were $10.9 million, compared to $28.9 million for the same period in 2008, a reduction of 62%. In addition, St. Joe incurred cash overhead expenses of $45.5 million for the first nine months of 2009, compared to $65.8 million for the same period last year, a reduction of 31%.
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