St. Joe Board Approves New Real Estate Investment Strategy - Quick Facts

(RTTNews.com) - St. Joe Co. (JOE) announced that its board has adopted a new real estate investment strategy. St. Joe noted that the strategy is focused on reducing future capital outlays and employing new risk-adjusted investment return criteria for evaluating the Company's properties and future investments in such properties.

As per the strategy, the company noted that it plans to significantly reduce planned future capital expenditures for infrastructure, amenities and master planned community development and reposition certain assets to encourage increased absorption of such properties in their respective markets.

As part of this repositioning, the company expects properties may be sold in bulk, in undeveloped parcels, or at lower price points.

The company anticipates that the amount of future capital expenditures associated with existing projects will be reduced by approximately $190 million, the majority of which was expected to be spent in the next 10 years.

The company believes that the new investment strategy continues to build upon the successful cost reduction initiatives previously implemented by the Company and positions the Company to (i) increase its short and medium-term cash flow, (ii) reduce its long-term risk and (iii) maintain the strong cash position necessary to weather a tepid and uncertain real estate environment and to best exploit the Company's substantial land resources.

The company currently anticipates it will record an aggregate non-cash charge for impairment associated with these projects that may range from $325 million to $375 million in the fourth quarter of its year ended December 31, 2011. The company expects to finalize its estimates by the end of February.

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