JOE ST Joe Co

Risks

• We may not be able to successfully implement our business strategy, which would adversely affect our financial condition, results of operations, cash flows and financial performance.
• Our investments in new business opportunities are inherently risky and may disrupt our ongoing business and adversely affect our operations.
• Management has discretion as to the investments we make and may not use these funds effectively.
• We intend to invest our assets in ways such that we will not have to register as an investment company under the Investment Company Act of 1940. As a result, we may be unable to make some potentially profitable investments.
• If Fairholme controls us within the meaning of the Investment Company Act, we may be unable to engage in transactions with potential strategic partners, which may adversely affect our business.
• If the SEC were to disagree with our Investment Company Act determinations, our business may be adversely affected.
• Returns on our investments may be limited by our investment guidelines and restrictions.
• We face risks stemming from our strategic partnerships.
• Losses in the fair value of Securities, and the concentration of our investment portfolio in any particular issuer, industry, group of related industries or geographic sector, may have an adverse impact on our results of operations, cash flows and financial condition. In addition, our equity investments may fail to appreciate and may decline in value or become worthless.
• We face risks associated with short-term liquid investments.
• The loss of the services of our key management, personnel or our ability to recruit staff may adversely affect our business.
• Our results of operations may vary significantly from period to period, which may adversely impact our stock price, results of operations, cash flows and financial condition.
• Our business is subject to extensive regulation and growth management initiatives that may restrict, make more costly or otherwise adversely impact our ability to develop our real estate investments or otherwise conduct our operations.
• Our existing real estate investments are concentrated in Northwest Florida; therefore our long-term financial results are largely dependent on the economic growth of Northwest Florida.
• Changes to the population growth rate or other unfavorable demographic changes in Florida, particularly Northwest Florida, may adversely affect our business.
• Significant competition may have an adverse effect on our business.
• Mortgage financing issues, including lack of supply of mortgage loans, tightened lending requirements and possible future increases in interest rates, may reduce demand for our products.
• We have significant operations and properties in Northwest Florida that may be materially affected by natural disasters, manmade disasters, severe weather conditions or other significant disruptions.
• Our insurance coverage on our properties may be inadequate to cover any losses we may incur.
• Increases in property insurance premiums and decreases in availability of homeowner property insurance in Florida may reduce customer demand for homes and homesites in our developments.
• A decline in consumers’ discretionary spending or a change in consumer preferences may reduce our sales and harm our business.
• Downturns of the real estate market in Northwest Florida may adversely affect our operations.
• Recent tax law changes may make home ownership more expensive or less attractive.
• Our ability to attract homebuilder customers and their ability or willingness to satisfy their purchase commitments may be uncertain.
• We are exposed to risks associated with real estate development that may adversely impact our results of operations, cash flows and financial condition.
• Our leasing projects may not yield anticipated returns, which may harm our operating results, reduce cash flow, or the ability to sell commercial assets.
• We face potential adverse effects from the loss of commercial tenants.
• If labor costs increase or we fail to attract and retain qualified employees, our business, results of operations, cash flows and financial condition may be adversely affected.
• We provide a guarantee of the debt for several of our JVs, and may in the future enter into similar agreements, which may have a material adverse effect on our results of operations, cash flows and financial condition.
• Environmental and other regulations may have an adverse effect on our business.
• From time to time, we may be subject to periodic litigation and other regulatory proceedings, which may impair our financial results of operations.
• Limitations on the access to the airport runway at the Northwest Florida Beaches International Airport may have an adverse effect on the demand for our VentureCrossings land adjacent to the airport.
• We face risks associated with third-party service providers, which may negatively impact our profitability.
• The market price of our common stock has been, and may continue to be, highly volatile.
• Our common stock has low trading volume.
• Fairholme has the ability to influence major corporate decisions, including decisions that require the approval of stockholders, and its interest in our business may conflict with yours.
• Changes in our income tax estimates may materially impact our results of operations, cash flows and financial condition.
• Changes to U.S. federal and state income tax laws may materially affect us and our stockholders.
• We may not be able to utilize our net state operating loss carryforwards.
• We utilize derivative financial instruments to reduce our exposure to market risks from changes in interest rates on our variable rate indebtedness and we will be exposed to risks related to counterparty credit worthiness or non-performance of these instruments.
• A decline in real estate values or continuing operating losses in our operating properties may result in impairments, which would have an adverse effect on our results of operations and financial condition.
• Changes in accounting pronouncements may adversely affect our reported operating results, in addition to the reported financial performance of our tenants.
• Failure to maintain the integrity of internal or customer data may result in faulty business decisions, damage of reputation and/or subject us to costs, fines or lawsuits.
• Our business may be adversely impacted if we have deficiencies in our disclosure controls and procedures or internal control over financial reporting.
• Uncertainty about the future of the London Interbank Offer Rate ("LIBOR") may adversely affect our business and financial results.
• Our financing arrangements contain restrictions and limitations that could impact our ability to operate our business.
• The obligations associated with being a public company require significant resources and management attention.