Sahm Adrangi’s Report on the St. Joe Company

The St. Joe Company calls for a conference to discuss the following issues:

  1. The company’s land holdings have been exaggerated and are only worth a portion of the market value, and this is under the maximum assertive expectations for development.
  2. Fairholme Fund, the biggest shareholder of St. Joe, is adherent to the new rules of the SEC which requires Fairholme to lessen its interests that forces the said company to sell its options.
  3. The Bay-Walton Sector Plans is overtly delayed making the regular earnings from the commercial development inconsequential. Hence, the expectations about the budget of St. Joe are erroneous.

Sahm Adrangi’s Kerrisdale Capital, a private company involved in investment management has circulated a negative report detailing the short position on St. Joe. The St. Joe Company is a real estate development firm valued at $1 billion and based in Florida. At the moment St. Joe is expected to convert a large desolate area of land near the Panama City Beach into a thriving area for businesses and retirees.

According to Sahm Adrangi, it is unbelievable that St. Joe will cultivate the aforementioned land that will actually substantiate its present $1 billion worth. The said area is situated in a remote, desolate and swampy area, and St. Joe’s other land holding is a glaring contrast to the beachfront property St. Joe has already earned a profit from.

Kerrisdale’s Sahm Adrangi explains that the sellers expect over 2,700 homes and four hundred thousand square feet of commercial areas are purchase annually for around fifty years. But that means St. Joe’s theoretical new retirement area would instantly be the ultimate selling residential community in the United States. And this will result to additional St. Joe real estate commercial properties to be sold than retained in the overall Panhandle area for 2017.

However, the truth is that there has been little development on St. Joe’s land interior, and it has been found out that there is only a minimum activity being done on filings of permit, inquiries for building department and other such matters.

Sahm Adrangi states that in terms of the expected developments on St. Joe’s new venture, investors may have to wait longer to see any progress on their investments.