Fairholme Capital Reduces Stake in St. Joe Company (JOE)

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Bruce Berkowitz‘s Fairholme Capital Management reduced its stake in St Joe, a real estate development and operating company, based on its 13D filing with the Securities and Exchange Commission (SEC).

The filing showed that Fairholme Capital Management beneficially owns 24, 455,880 shares or 32.3% of the outstanding shares of St. Joe as of September 28, 2015. The investment management firm previously owned 24,624,918 shares of the company.

Fairholme Capital Management reported that it sold 2,200 shares on August 21 for $16.75 a piece and 105,000 shares for $18 each. The investment management firm is the largest shareholder of St. Joe.

St. Joe financial and stock performance

Over the past 52 weeks, the equities St. Joe traded between $14.94 and $20.23 per share. The stock price of the company closed at $19.19 per share on Thursday. The company gained more than 4% of stock value year-to-date.


In August, St. Joe posted a net loss of $0.02 per share in the second quarter of 2015. The company’s revenue was $37.8 million.

During the same period a year ago, the company achieved a net incline of $14.6 million or $0.16 per share and $24.6 million, excluding the $43.6 million RiverTown sale.

St. Joe’s second quarter results included certain amounts related to the ongoing SEC investigation regarding its “historical accounting and disclosure practices as well as real estate valuations in its financial results for the years 2010, 2009 and previous periods.

The company allocated $3.5 million for potential settlement costs and $3.9 million related to legal expenses, for which it received a reservation of rights from the insurer.

In a regulatory filing early this year, St. Joe said, “At this time the company is unable to predict the outcome of the investigation, any potential enforcement actions or any other impact on the company that may arise as a result of such investigation.”

Final results of St. Joe tender offer

St. Joe announced the final results of its tender offer on Monday. The company accepted for purchase 16,348,143 shares for $18 each. The total purchase price was approximately $294.3 million.

According to St. Joe, the repurchased shares represent around 17.8% of its outstanding common stock as of September 24. The company will immediately pay for the shares accepted for purchase.

D.F. King & Co acted as information agent for the tender offer, and American Stock Transfer & Trust Company acted as the depositary.

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