Things do not look good for the St. Joe Company as Sahm Adrangi and Kerrisdale Capital have issued a very negative report on their future. The St. Joe Company is a real estate developer based out of Florida and is currently valued at around $1 billion. They are hoping to take an area near Panama City Beach and transform it into a destination catered to retirees and businesses. Currently, it is a desolate tract of land that Sahm Adrangi does not believe St. Joe will be able to transform it into anything near what would give the company such a high valuation price.
While St. Joe has developed some beachfront properties, the land that is in question is absolutely nothing like those areas. It is located in a remote area with land that is swampy and desolate, and this type of land makes up the majority of property that St. Joe has yet to develop. There has not been a lot of progress by St Joe on their land that is located in the interior of Florida and for them to achieve the type of business that would justify their high valuation they would have a lot of work to do. In order for them to hit the sales they would need, the land in development would need to be the best-selling community in the entirety of the United States. This would have to happen as soon as the planned community was put on the market and Sahm Adrangi does not think there is any reason that this could be possible to achieve.
When St. first introduced their plans to develop the swampy interior land, it wasn’t feasible for them to do then. Their initial investors have been awaiting progress that just does not appear to be happening any time soon. Upon further inquiry, it appears that there has not been hardly any activity at the site when it comes to permits or inquiries. Sahm Adrangi, gv the Chief Executive Officer of Kerrisdale, has shorted the St. Joe Company based on the results of the research done by his company.