Profile: The St. Joe Company (JOE)

The St. Joe Company (JOE), incorporated in 1936, is a real estate development company. The Company owns approximately 586,000 primarily in Northwest Florida. Approximately 406,000 acres of its total land holdings are within 15 miles of the coast of the Gulf of Mexico. It is engaged in town and resort development, commercial and industrial development and rural land sales. The Company operates through four operating segments: residential real estate, commercial real estate, rural land sales and forestry. Residential real estate segment develops large-scale, mixed-use resort, seasonal and primary residential communities. The commercial real estate segment develops and sells real estate for commercial purposes. The rural land sales segment markets and sells rural land from its holdings in Northwest Florida. The Forestry segment focuses on the management and harvesting of the Company’s timber holdings.

Residential Real Estate

JOE owns tracts of land in Northwest Florida, including large tracts near Tallahassee and Panama City, and Gulf of Mexico beach frontage and other waterfront properties. The Company’s principal communities in Florida include WaterColor, WaterSound Beach, WaterSound, WaterSound West Beach, RiverCamps, WindMark Beach, SummerCamp Beach, SouthWood, RiverTown, Victoria Park and Artisan Park. WaterColor is situated on approximately 499 acres on the beaches of the Gulf of Mexico in south Walton County. The community includes approximately 1,140 residential units, as well as the WaterColor Inn and Resort. The WaterColor Inn and Resort is operated by Noble House Hotels & Resorts, a boutique hotel ownership and management company with 14 properties throughout the United States. Other WaterColor amenities include a beach club, spa, tennis center, restaurant, retail and commercial space and neighborhood parks.

Its WaterSound Beach is located approximately five miles east of WaterColor. Situated on approximately 256 acres, WaterSound Beach includes over one mile of beachfront on the Gulf of Mexico. Amenities include the WaterSound Beach Club, a private, beachfront facility featuring a 7,000-square-foot free-form pool and a restaurant. WaterSound West Beach is located approximately one-half mile west of WaterSound Beach on the beach-side of County Road 30A. RiverCamps on Crooked Creek is situated on approximately 1,491 acres in western Bay County bounded by West Bay, the Intracoastal Waterway and Crooked Creek. The community is planned for 408 homes with access to various outdoor activities, such as fishing, boating and hiking. WindMark Beach is a beachfront resort community situated on approximately 2,020 acres in Gulf County near the town of Port St. Joe.

Commercial Real Estate

JOE focuses on commercial development in Northwest Florida because of its large land holdings along roadways and near or within business districts in the region. The Company provides development opportunities for national and regional retailers, as well as multi-family rental projects. It also offers land for commercial and light industrial uses within large and small-scale commerce parks. The Company also develops commercial parcels within or near existing residential development projects.

Rural Land Sales

The Company’s rural land sales segment sells parcels of varying sizes ranging from a single acre or less to tens of thousands of acres. The pricing of these parcels varies based on size, location, terrain, timber quality and other factors.

Forestry

JOE grows, harvests and sells timber and wood fiber. Its principal forestry product is softwood pulpwood. The Company also grows and sells softwood and hardwood sawtimber. On December 31, 2008, the Company’s standing pine inventory totaled approximately 21.9 million tons and its hardwood inventory totaled approximately 7.7 million tons and its hardwood inventory totaled approximately 7.5 million tons. The Company’s timberlands are harvested by local independent contractors under agreements that are renewed annually. The Company has a pulpwood supply agreement with Smurfit-Stone Container Corporation that requires the Company to deliver 700,000 tons of pulpwood annually through June 30, 2012. The Company also harvests and sells additional timber to regional sawmills that produce products other than pulpwood. In addition, its forestry operation is focused on selective harvesting, thinning and site preparation of timberlands that may later be sold or developed by the Company.