The St. Joe Company , through its subsidiary — Commercial Real Estate Development, LLC — recently entered into a lease agreement with Sacred Heart Health System for development of a healthcare facility in Watersound Origins Community. The healthcare facility will be located at the entrance of the community.
Sacred Heart is the topmost provider of healthcare services in Northwest Florida, while St. Joe is a Florida-based real estate development and operating company, having significant land ownership in Northwest Florida. The alliance between the companies is expected to result in high quality health facilities for the Watersound Origins Community. Notably, Watersound Origins Community is also a development of St. Joe.
The proposed unit will initially start with a 6,700-square-foot multi-specialty ambulatory clinic offering primary care and OB/GYN services. Plans are to expand it to 13,000 square feet of space in future that will offer additional specialty care services.
Construction of the facility is expected to be complete by the end of 2019. Currently, both companies are working on the facility’s design.
On this deal, Jorge Gonzalez, president & chief executive officer of St. Joe, noted, “We are pleased to continue our relationship with Sacred Heart to provide quality and accessible healthcare services to Watersound Origins homeowners and the residents of South Walton County. This new facility is only the beginning of a much larger plan to meet the expected commercial needs of the residents in the Watersound community.”
St. Joe’s shares have declined 2.2% in the past six months compared with the industry’s fall of 0.1%, during the same period.
St. Joe currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
A few better-ranked stocks from the Real Estate Investment Trust (REIT) space include NorthStar Realty Europe Corp. , Americold Realty Trust (COLD - Free Report) and PS Business Parks, Inc. (PSB - Free Report) . NorthStar Realty and Americold Realty flaunt a Zacks Rank of 1, while PS Business Parks carries a Zacks rank of 2 (Buy).
NorthStar Realty’s Zacks Consensus Estimate for 2018 funds from operations (FFO) per share has been revised 5.5% upward over the past 60 days. Its shares have returned 34.1% in the past six months.
Americold Realty’s FFO per share estimates for 2018 moved 2.7% north over the past 60 days. Its shares have appreciated 34.4% over the past six months.
PS Business Parks’ FFO per share estimates for the current year increased slightly in the past 60 days. Its shares have gained 18.3% in the past six months.
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