Exhibit 99.1
FOR IMMEDIATE RELEASE
CONTACT: Chris L. Nines
(512) 433-5210
FORESTAR GROUP INC. REPORTS
SECOND QUARTER 2010 RESULTS
AUSTIN, TEXAS, August 3, 2010—Forestar Group Inc. (NYSE: FOR) today reported a second quarter
2010 net loss of approximately ($3.3) million, or ($0.09) per basic share, compared with second
quarter 2009 net income of $50.9 million, or $1.41 per diluted share outstanding. Second quarter
2009 results include a gain of $1.37 per diluted share, after-tax, from the sale of about 75,000
acres of timberland in Georgia and Alabama for approximately $120 million.
“Our second quarter results reflect current market conditions across our businesses,” said Jim
DeCosmo, president and chief executive officer of Forestar Group. “Demand for residential lots and
commercial tracts have been impacted principally from low consumer confidence, high levels of
unemployment, reduced capital availability, and uncertainty regarding the future of the economy.
Mineral leasing activity was affected by exploration and production companies concentrating their
efforts on drilling wells to hold existing mineral leases and prove reserves, rather than investing
in new mineral interests.”
“Despite challenging market conditions, we firmly believe that our business is well positioned
in many of the healthiest markets, and poised to benefit from improving economic conditions and
positive long-term demographic trends,” concluded Mr. DeCosmo.
Forestar Group manages its operations through three business segments:
| |
§ |
|
Real estate, |
| |
| |
§ |
|
Mineral resources, and |
| |
| |
§ |
|
Fiber resources |
At the end of second quarter 2010, our real estate segment includes over 247,000 acres of land
owned directly or through ventures located in nine states and twelve markets. Mineral resources
include approximately 620,000 net acres of oil and gas mineral interests located principally in
Texas, Louisiana, Alabama, and Georgia. Also included in the mineral resources segment is a 45%
nonparticipating royalty interest in groundwater produced or withdrawn for commercial purposes from
approximately 1.4 million acres in Texas, Louisiana, Georgia and Alabama. Fiber resources include
the sale of wood fiber and management of our recreational leases.
REAL ESTATE
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2nd Qtr. |
|
2nd Qtr. |
|
1st Qtr. |
| Segment Earnings |
|
2010 |
|
2009 |
|
2010 |
($ in Millions)
|
|
$ |
2.4 |
|
|
$ |
5.0 |
|
|
$ |
0.3 |
|
Second quarter 2010 real estate segment earnings include the sale of approximately 700
acres of land in the entitlement process for almost $8,200 per acre near Atlanta, Georgia.
During second quarter 2010, a joint-venture project located near Houston, Texas received
entitlements, which is planned to include up to 1,722 residential lots and 72 commercial acres.
MINERAL RESOURCES
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2nd Qtr. |
|
2nd Qtr. |
|
1st Qtr. |
| Segment Earnings |
|
2010 |
|
2009 |
|
2010 |
($ in Millions)
|
|
$ |
4.3 |
|
|
$ |
6.4 |
|
|
$ |
6.2 |
|
Second quarter 2010 mineral resources segment earnings were impacted by reduced mineral
leasing activity. Since year-end 2009, exploration and production companies operating in our
basins have concentrated their efforts on drilling wells to hold existing mineral leases and prove
reserves.
First quarter 2010 mineral resources segment earnings include approximately $3.2 million in
lease bonus revenues associated with leasing over 2,100 net mineral acres for $1,495 per acre.
FIBER RESOURCES
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2nd Qtr. |
|
2nd Qtr. |
|
1st Qtr. |
| Segment Earnings |
|
2010 |
|
2009 |
|
2010 |
($ in Millions)
|
|
$ |
1.1 |
|
|
$ |
3.3 |
|
|
$ |
1.4 |
|
During second quarter 2010 Forestar generated approximately $1.5 million from the sale of
over 119,000 tons of fiber, the majority of which was sold to Temple-Inland Inc. at market prices.
Sales of fiber in second quarter 2010 were impacted by the sale of over 110,000 acres of timberland
in 2009 associated with our near-term strategic initiatives and retail land sales program and
postponing harvest plans on approximately 74,000 acres currently held for sale.
2
SUMMARY
“Market conditions remain challenging for our business. Demand for our real estate has been
impacted by a lack of consumer confidence, high unemployment, reduced credit availability and
concerns over the economy, despite mortgage rates at historic lows and improved housing
affordability. However, several Texas markets are now reporting positive job growth in second
quarter 2010, a fundamental driver of long-term housing demand. Forestar is well positioned to
maximize and grow long-term shareholder value through the execution of our strategy and improving
market conditions,” concluded Mr. DeCosmo.
The Company will host a conference call on August 4, 2010 at 10:00 am EDT to discuss results
of second quarter 2010. The meeting may be accessed through webcast or by conference call. The
webcast may be accessed through Forestar’s Internet site at www.forestargroup.com. To access the
conference call, listeners calling from North America should dial 1-866-730-5769 at least 15
minutes prior to the start of the meeting. Those wishing to access the call from outside North
America should dial 1-857-350-1593. The password is Forestar. Replays of the call will be
available for two weeks following the completion of the live call and can be accessed at
1-888-286-8010 in North America and at 1-617-801-6888 outside North America. The password for the
replay is 64750709.
About Forestar Group
Forestar Group Inc. operates in three business segments: real estate, mineral resources and
fiber resources. The real estate segment owns directly or through ventures over 247,000 acres of
real estate located in nine states and twelve markets in the U.S. The real estate segment has 18
real estate projects representing over 29,600 acres currently in the entitlement process, and 75
entitled, developed and under development projects in seven states and eleven markets encompassing
over 16,800 acres, comprised of over 29,300 residential lots and almost 2,600 commercial acres. The
mineral resources segment manages about 620,000 net acres of oil and gas mineral interests. The
fiber resources segment includes the sale of wood fiber and management of our recreational leases.
The company also has a 45% nonparticipating royalty interest in groundwater produced or withdrawn
for commercial purposes from approximately 1.4 million acres in Texas, Louisiana, Georgia and
Alabama. Forestar’s address on the World Wide Web is www.forestargroup.com.
Forward-looking Statements
This release contains “forward-looking statements” within the meaning of the federal
securities laws. These statements reflect management’s current views with respect to future
events and are subject to risk and uncertainties. We note that a variety of factors and
uncertainties could cause our actual results to differ significantly from the results
discussed in the forward-looking statements. Factors and uncertainties that might cause such
differences include, but are not limited to: general economic, market, or business
conditions; the opportunities (or lack thereof) that may be presented to us and that we may
pursue; fluctuations in costs and expenses including development costs; demand for new
housing, including impacts from mortgage credit availability; lengthy and uncertain
entitlement processes; cyclicality of our businesses; accuracy of accounting assumptions;
competitive actions by other companies; changes in laws or regulations; and other factors,
many of which are beyond our control. Except as required by law, we expressly disclaim any
obligation to publicly revise any forward-looking statements contained in this news release
to reflect the occurrence of events after the date of this news release.
3
FORESTAR GROUP INC.
(UNAUDITED)
Business Segments
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Second Quarter |
|
|
First Six Months |
|
| |
|
2010 |
|
|
2009 |
|
|
2010 |
|
|
2009 |
|
| |
|
(In thousands, |
|
|
(In thousands, |
|
| |
|
except per share) |
|
|
except per share) |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
$ |
21,549 |
|
|
$ |
28,447 |
|
|
$ |
38,797 |
|
|
$ |
47,234 |
|
Mineral resources |
|
|
4,606 |
|
|
|
7,018 |
|
|
|
11,733 |
|
|
|
12,939 |
|
Fiber resources |
|
|
1,982 |
|
|
|
5,001 |
|
|
|
3,965 |
|
|
|
9,370 |
|
| |
|
|
|
|
Total revenues |
|
$ |
28,137 |
|
|
$ |
40,466 |
|
|
$ |
54,495 |
|
|
$ |
69,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real estate |
|
$ |
2,454 |
|
|
$ |
5,007 |
|
|
$ |
2,766 |
|
|
$ |
5,549 |
|
Mineral resources |
|
|
4,266 |
|
|
|
6,401 |
|
|
|
10,444 |
|
|
|
11,183 |
|
Fiber resources |
|
|
1,085 |
|
|
|
3,290 |
|
|
|
2,528 |
|
|
|
6,199 |
|
| |
|
|
|
|
Total segment earnings |
|
|
7,805 |
|
|
|
14,698 |
|
|
|
15,738 |
|
|
|
22,931 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items not allocated to segments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative (a) |
|
|
(5,040 |
) |
|
|
(4,257 |
) |
|
|
(9,578 |
) |
|
|
(11,876 |
) |
Share-based compensation |
|
|
(2,019 |
) |
|
|
(2,615 |
) |
|
|
(5,553 |
) |
|
|
(4,321 |
) |
Gain on sale of assets |
|
|
— |
|
|
|
79,214 |
|
|
|
— |
|
|
|
79,214 |
|
Interest expense |
|
|
(4,103 |
) |
|
|
(5,047 |
) |
|
|
(8,649 |
) |
|
|
(10,213 |
) |
Other non-operating income |
|
|
246 |
|
|
|
44 |
|
|
|
444 |
|
|
|
95 |
|
| |
|
|
|
|
(Loss) income before taxes |
|
|
(3,111 |
) |
|
|
82,037 |
|
|
|
(7,598 |
) |
|
|
75,830 |
|
Income tax (expense) benefit |
|
|
(162 |
) |
|
|
(31,120 |
) |
|
|
1,353 |
|
|
|
(28,805 |
) |
| |
|
|
|
|
Net (loss) income attributable to Forestar
Group Inc. |
|
$ |
(3,273 |
) |
|
$ |
50,917 |
|
|
$ |
(6,245 |
) |
|
$ |
47,025 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.09 |
) |
|
$ |
1.42 |
|
|
$ |
(0.17 |
) |
|
$ |
1.32 |
|
Diluted |
|
$ |
(0.09 |
) |
|
$ |
1.41 |
|
|
$ |
(0.17 |
) |
|
$ |
1.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
36.2 |
|
|
|
35.8 |
|
|
|
36.1 |
|
|
|
35.7 |
|
Diluted |
|
|
36.2 |
|
|
|
36.0 |
|
|
|
36.1 |
|
|
|
35.9 |
|
| |
|
|
|
|
|
|
|
|
| |
|
Second Quarter |
| Supplemental Financial Information |
|
2010 |
|
|
2009 |
|
| |
|
(In thousands) |
Borrowings under credit facility |
|
$ |
128,000 |
|
|
$ |
136,000 |
|
Other debt (b) |
|
|
74,196 |
|
|
|
101,766 |
|
| |
|
|
Total debt |
|
$ |
202,196 |
|
|
$ |
237,766 |
|
| |
|
|
|
|
|
| (a) |
|
First six months 2009 general and administrative costs include approximately $3.2 million paid
to outside advisors regarding an evaluation by our Board of Directors of an unsolicited shareholder
proposal. |
| |
| (b) |
|
Consists principally of consolidated venture non-recourse debt. |
4
FORESTAR GROUP INC.
REAL ESTATE SEGMENT
PERFORMANCE METRICS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Second Quarter |
|
First Six Months |
| REAL ESTATE |
|
2010 |
|
|
2009 |
|
|
2010 |
|
|
2009 |
|
Owned, Consolidated & Equity Method Ventures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Lots Sold |
|
|
235 |
|
|
|
165 |
|
|
|
430 |
|
|
|
272 |
|
Revenue per Lot Sold |
|
$ |
50,300 |
|
|
$ |
59,200 |
|
|
$ |
49,900 |
|
|
$ |
64,400 |
|
Commercial Acres Sold |
|
|
14.6 |
|
|
|
— |
|
|
|
16.2 |
|
|
|
4.1 |
|
Revenue per Commercial Acre Sold |
|
$ |
58,800 |
|
|
|
— |
|
|
$ |
70,200 |
|
|
$ |
215,600 |
|
Undeveloped Acres Sold |
|
|
1,470 |
|
|
|
7,460 |
|
|
|
3,560 |
|
|
|
9,650 |
|
Revenue per Acre Sold |
|
$ |
5,600 |
|
|
$ |
2,300 |
|
|
$ |
3,600 |
|
|
$ |
2,600 |
|
Owned & Consolidated Ventures: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Lots Sold |
|
|
149 |
|
|
|
105 |
|
|
|
251 |
|
|
|
183 |
|
Revenue per Lot Sold |
|
$ |
53,000 |
|
|
$ |
59,300 |
|
|
$ |
54,800 |
|
|
$ |
64,700 |
|
Commercial Acres Sold |
|
|
— |
|
|
|
— |
|
|
|
1.3 |
|
|
|
0.3 |
|
Revenue per Commercial Acre Sold |
|
|
— |
|
|
|
— |
|
|
$ |
121,700 |
|
|
$ |
424,700 |
|
Undeveloped Acres Sold |
|
|
1,470 |
|
|
|
7,460 |
|
|
|
3,560 |
|
|
|
9,650 |
|
Revenue per Acre Sold |
|
$ |
5,600 |
|
|
$ |
2,300 |
|
|
$ |
3,600 |
|
|
$ |
2,600 |
|
Ventures Accounted For Using the Equity Method: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Lots Sold |
|
|
86 |
|
|
|
60 |
|
|
|
179 |
|
|
|
89 |
|
Revenue per Lot Sold |
|
$ |
45,600 |
|
|
$ |
59,100 |
|
|
$ |
43,100 |
|
|
$ |
63,800 |
|
Commercial Acres Sold |
|
|
14.6 |
|
|
|
— |
|
|
|
14.9 |
|
|
|
3.8 |
|
Revenue per Commercial Acre Sold |
|
$ |
58,800 |
|
|
|
— |
|
|
$ |
65,700 |
|
|
$ |
197,000 |
|
Undeveloped Acres Sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Revenue per Acre Sold |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
SECOND QUARTER 2010
REAL ESTATE PIPELINE
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
In |
|
|
|
|
|
Developed & |
|
|
| |
|
|
|
|
|
Entitlement |
|
|
|
|
|
Under |
|
Total |
| Real Estate |
|
Undeveloped |
|
Process |
|
Entitled |
|
Development |
|
Acres* |
Undeveloped Land |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned |
|
|
194,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
200,905 |
|
Ventures |
|
|
6,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned |
|
|
|
|
|
|
26,869 |
|
|
|
7,956 |
|
|
|
580 |
|
|
|
41,098 |
|
Ventures |
|
|
|
|
|
|
|
|
|
|
4,939 |
|
|
|
754 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owned |
|
|
|
|
|
|
2,801 |
|
|
|
1,095 |
|
|
|
539 |
|
|
|
5,393 |
|
Ventures |
|
|
|
|
|
|
|
|
|
|
642 |
|
|
|
316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Acres |
|
|
200,905 |
|
|
|
29,670 |
|
|
|
14,632 |
|
|
|
2,189 |
|
|
|
247,396 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Estimated
Residential
Lots |
|
|
|
|
|
|
|
|
|
|
25,727 |
|
|
|
3,590 |
|
|
|
29,317 |
|
|
|
|
| * |
|
In addition, Forestar owns a 58% interest in a venture which controls approximately 16,000 acres
of undeveloped land in Georgia with minimal investment. |
5
FORESTAR GROUP INC.
MINERAL RESOURCES SEGMENT
PERFORMANCE METRICS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Second Quarter |
|
First Six Months |
| MINERAL RESOURCES |
|
2010 |
|
|
2009 |
|
|
2010 |
|
|
2009 |
|
Leasing Activity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acres Leased |
|
|
— |
|
|
|
8,200 |
|
|
|
2,130 |
|
|
|
14,300 |
|
Average Bonus / Acre |
|
|
— |
|
|
$ |
357 |
|
|
$ |
1,495 |
|
|
$ |
353 |
|
Delay Rental Revenues |
|
$ |
762,200 |
|
|
$ |
1,595,000 |
|
|
$ |
1,193,800 |
|
|
$ |
1,916,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Royalties1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Production (MMcf) |
|
|
689.5 |
|
|
|
309.8 |
|
|
|
1,062.6 |
|
|
|
704.5 |
|
Average Natural Gas Price ($ / Mcf) |
|
$ |
4.60 |
|
|
$ |
3.89 |
|
|
$ |
4.49 |
|
|
$ |
5.17 |
|
Oil Production (Barrels) |
|
|
30,500 |
|
|
|
25,900 |
|
|
|
59,900 |
|
|
|
53,200 |
|
Average Oil Price ($ / Barrel) |
|
$ |
74.78 |
|
|
$ |
47.30 |
|
|
$ |
73.05 |
|
|
$ |
47.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MMcfe Production2 |
|
|
872.3 |
|
|
|
465.2 |
|
|
|
1,422.1 |
|
|
|
1,023.8 |
|
Average Price ($ / MMcfe) |
|
$ |
6.25 |
|
|
$ |
5.23 |
|
|
$ |
6.43 |
|
|
$ |
6.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Well Activity3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Acres Held By Production |
|
|
29,469 |
|
|
|
25,804 |
|
|
|
29,469 |
|
|
|
25,804 |
|
Wells Drilled |
|
|
5 |
|
|
|
4 |
|
|
|
16 |
|
|
|
7 |
|
Active Wells |
|
|
479 |
|
|
|
464 |
|
|
|
479 |
|
|
|
464 |
|
|
|
|
| 1 |
|
Includes 100% of venture activity. Venture natural gas production activity is
362 MMcf and 415 MMcf in second quarter and first six months 2010, and 12 MMcf and 39 MMcf in
second quarter and first six months 2009. Forestar owns a 50% interest in this venture. |
| |
| 2 |
|
MMcfe — Million Cubic Feet Equivalent (converting oil to natural gas at 6 Mcfe / Bbl) |
| |
| 3 |
|
Wells are owned and operated by third-party lessees / operators |
SECOND QUARTER 2010
MINERAL RESOURCES PIPELINE1
Forestar’s mineral resources segment includes approximately 620,000 net mineral
acres principally located in Texas, Louisiana, Alabama and Georgia.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Available |
|
|
|
|
|
Held by |
|
|
| State |
|
for Lease |
|
Leased |
|
Production |
|
Total 2 |
Texas |
|
|
153,000 |
|
|
|
76,000 |
|
|
|
24,000 |
|
|
|
253,000 |
|
Louisiana |
|
|
135,000 |
|
|
|
4,000 |
|
|
|
5,000 |
|
|
|
144,000 |
|
Georgia |
|
|
179,000 |
|
|
|
— |
|
|
|
— |
|
|
|
179,000 |
|
Alabama |
|
|
40,000 |
|
|
|
2,000 |
|
|
|
— |
|
|
|
42,000 |
|
California |
|
|
1,000 |
|
|
|
— |
|
|
|
— |
|
|
|
1,000 |
|
Indiana |
|
|
1,000 |
|
|
|
— |
|
|
|
— |
|
|
|
1,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
509,000 |
|
|
|
82,000 |
|
|
|
29,000 |
|
|
|
620,000 |
|
|
|
|
| 1 |
|
Includes ventures |
| |
| 2 |
|
Excludes 463 net mineral acres located in Colorado |
6
FORESTAR GROUP INC.
FIBER RESOURCES SEGMENT
PERFORMANCE METRICS
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Second Quarter |
|
First Six Months |
| FIBER RESOURCES |
|
2010 |
|
|
2009 |
|
|
2010 |
|
|
2009 |
|
Fiber Sales * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pulpwood Tons Sold |
|
|
95,600 |
|
|
|
244,100 |
|
|
|
178,700 |
|
|
|
450,600 |
|
Average Pulpwood Price / Ton |
|
$ |
10.89 |
|
|
$ |
7.85 |
|
|
$ |
10.90 |
|
|
$ |
7.99 |
|
Sawtimber Tons Sold |
|
|
23,800 |
|
|
|
136,100 |
|
|
|
53,400 |
|
|
|
226,900 |
|
Average Sawtimber Price / Ton |
|
$ |
20.36 |
|
|
$ |
18.28 |
|
|
$ |
20.24 |
|
|
$ |
20.10 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Tons Sold |
|
|
119,400 |
|
|
|
380,200 |
|
|
|
232,100 |
|
|
|
677,500 |
|
Average Price / Ton |
|
$ |
12.78 |
|
|
$ |
11.59 |
|
|
$ |
13.05 |
|
|
$ |
12.05 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recreational Activity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acres Leased |
|
|
213,700 |
|
|
|
224,500 |
|
|
|
213,700 |
|
|
|
224,500 |
|
|
|
|
| * |
|
The majority of our fiber sales were to Temple-Inland Inc. at market prices. |
7
FORESTAR GROUP INC.
PROJECTS IN ENTITLEMENT
A summary of projects in the entitlement process(a) at second quarter-end 2010 follows:
| |
|
|
|
|
|
|
| |
|
|
|
Project |
| Project |
|
County |
|
Acres(b) |
California |
|
|
|
|
|
|
Hidden Creek Estates |
|
Los Angeles |
|
|
700 |
|
Terrace at Hidden Hills |
|
Los Angeles |
|
|
30 |
|
|
|
|
|
|
|
|
Georgia |
|
|
|
|
|
|
Ball Ground |
|
Cherokee |
|
|
500 |
|
Burt Creek |
|
Dawson |
|
|
970 |
|
Crossing |
|
Coweta |
|
|
230 |
|
Dallas Highway |
|
Haralson |
|
|
1,060 |
|
Fincher Road |
|
Cherokee |
|
|
3,890 |
|
Fox Hall |
|
Coweta |
|
|
960 |
|
Garland Mountain |
|
Cherokee/Bartow |
|
|
350 |
|
Home Place |
|
Coweta |
|
|
1,510 |
|
Martin’s Bridge |
|
Banks |
|
|
970 |
|
Mill Creek |
|
Coweta |
|
|
770 |
|
Serenity |
|
Carroll |
|
|
440 |
|
Waleska |
|
Cherokee |
|
|
150 |
|
Wolf Creek |
|
Carroll/Douglas |
|
|
12,230 |
|
Yellow Creek |
|
Cherokee |
|
|
1,060 |
|
|
|
|
|
|
|
|
Texas |
|
|
|
|
|
|
Lake Houston |
|
Harris/Liberty |
|
|
3,700 |
|
San Jacinto |
|
Montgomery |
|
|
150 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
29,670 |
|
|
|
|
|
|
|
|
|
|
|
| (a) |
|
A project is deemed to be in the entitlement process when customary steps
necessary for the preparation of an application for governmental land-use approvals, like
conducting pre-application meetings or similar discussions with governmental officials,
have commenced, or an application has been filed. Projects listed may have significant
steps remaining, and there is no assurance that entitlements ultimately will be received. |
| |
| (b) |
|
Project acres, which are the total for the project regardless of our ownership
interest, are approximate. The actual number of acres entitled may vary. |
8
FORESTAR GROUP INC.
REAL ESTATE PROJECTS
A summary of our entitled,(a) developed & under development projects at
second quarter-end 2010 follows:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Residential Lots (c) |
|
Commercial Acres (d) |
| |
|
|
|
|
|
Lots Sold |
|
|
|
|
|
Acres Sold |
|
|
| |
|
|
|
Interest |
|
Since |
|
Lots |
|
Since |
|
Acres |
| Project |
|
County |
|
Owned(b) |
|
Inception |
|
Remaining |
|
Inception |
|
Remaining |
Projects we own |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
California |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
San Joaquin River |
|
Contra Costa/Sacramento |
|
100% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
288 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Colorado |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Buffalo Highlands |
|
Weld |
|
100% |
|
|
— |
|
|
|
164 |
|
|
|
— |
|
|
|
— |
|
Johnstown Farms |
|
Weld |
|
100% |
|
|
115 |
|
|
|
493 |
|
|
|
2 |
|
|
|
8 |
|
Pinery West |
|
Douglas |
|
100% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
115 |
|
Stonebraker |
|
Weld |
|
100% |
|
|
— |
|
|
|
603 |
|
|
|
— |
|
|
|
13 |
|
Westlake Highlands |
|
Jefferson |
|
100% |
|
|
19 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
Texas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arrowhead Ranch |
|
Hays |
|
100% |
|
|
— |
|
|
|
259 |
|
|
|
— |
|
|
|
6 |
|
Caruth Lakes |
|
Rockwall |
|
100% |
|
|
297 |
|
|
|
352 |
|
|
|
— |
|
|
|
— |
|
Cibolo Canyons |
|
Bexar |
|
100% |
|
|
617 |
|
|
|
798 |
|
|
|
64 |
|
|
|
157 |
|
Harbor Lakes |
|
Hood |
|
100% |
|
|
199 |
|
|
|
250 |
|
|
|
1 |
|
|
|
13 |
|
Hunter’s Crossing |
|
Bastrop |
|
100% |
|
|
330 |
|
|
|
161 |
|
|
|
38 |
|
|
|
71 |
|
La Conterra |
|
Williamson |
|
100% |
|
|
73 |
|
|
|
427 |
|
|
|
— |
|
|
|
58 |
|
Maxwell Creek |
|
Collin |
|
100% |
|
|
691 |
|
|
|
320 |
|
|
|
10 |
|
|
|
— |
|
Oak Creek Estates |
|
Comal |
|
100% |
|
|
67 |
|
|
|
580 |
|
|
|
13 |
|
|
|
— |
|
The Colony |
|
Bastrop |
|
100% |
|
|
410 |
|
|
|
736 |
|
|
|
22 |
|
|
|
31 |
|
The Gables at North Hill |
|
Collin |
|
100% |
|
|
197 |
|
|
|
86 |
|
|
|
— |
|
|
|
— |
|
The Preserve at Pecan Creek |
|
Denton |
|
100% |
|
|
306 |
|
|
|
512 |
|
|
|
— |
|
|
|
9 |
|
The Ridge at Ribelin Ranch |
|
Travis |
|
100% |
|
|
— |
|
|
|
— |
|
|
|
179 |
|
|
|
16 |
|
Westside at Buttercup Creek |
|
Williamson |
|
100% |
|
|
1,311 |
|
|
|
203 |
|
|
|
66 |
|
|
|
— |
|
Other projects (8) |
|
Various |
|
100% |
|
|
1,552 |
|
|
|
17 |
|
|
|
197 |
|
|
|
23 |
|
Georgia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Towne West |
|
Bartow |
|
100% |
|
|
— |
|
|
|
2,674 |
|
|
|
— |
|
|
|
121 |
|
Other projects (13) |
|
Various |
|
100% |
|
|
— |
|
|
|
2,934 |
|
|
|
— |
|
|
|
705 |
|
Missouri and Utah |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other projects (2) |
|
Various |
|
100% |
|
|
453 |
|
|
|
101 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6,637 |
|
|
|
11,672 |
|
|
|
592 |
|
|
|
1,634 |
|
| Projects in entities we consolidate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Texas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
City Park |
|
Harris |
|
75% |
|
|
1,100 |
|
|
|
211 |
|
|
|
50 |
|
|
|
115 |
|
Lantana |
|
Denton |
|
55% (e) |
|
|
540 |
|
|
|
1,626 |
|
|
|
— |
|
|
|
— |
|
Light Farms |
|
Collin |
|
65% |
|
|
— |
|
|
|
2,868 |
|
|
|
— |
|
|
|
— |
|
Stoney Creek |
|
Dallas |
|
90% |
|
|
85 |
|
|
|
669 |
|
|
|
— |
|
|
|
— |
|
Timber Creek |
|
Collin |
|
88% |
|
|
— |
|
|
|
614 |
|
|
|
— |
|
|
|
— |
|
Other projects (5) |
|
Various |
|
Various |
|
|
953 |
|
|
|
254 |
|
|
|
26 |
|
|
|
25 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,678 |
|
|
|
6,242 |
|
|
|
76 |
|
|
|
140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total owned and consolidated |
|
|
|
|
9,315 |
|
|
|
17,914 |
|
|
|
668 |
|
|
|
1,774 |
|
| Projects in ventures that we account for using the equity method |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Georgia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Seven Hills |
|
Paulding |
|
50% |
|
|
635 |
|
|
|
446 |
|
|
|
26 |
|
|
|
113 |
|
The Georgian |
|
Paulding |
|
38% |
|
|
288 |
|
|
|
1,097 |
|
|
|
— |
|
|
|
— |
|
Other projects (4) |
|
Various |
|
Various |
|
|
1,820 |
|
|
|
77 |
|
|
|
3 |
|
|
|
— |
|
Texas |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bar C Ranch |
|
Tarrant |
|
50% |
|
|
215 |
|
|
|
984 |
|
|
|
— |
|
|
|
— |
|
Entrada |
|
Travis |
|
50% |
|
|
— |
|
|
|
821 |
|
|
|
— |
|
|
|
3 |
|
Fannin Farms West |
|
Tarrant |
|
50% |
|
|
293 |
|
|
|
88 |
|
|
|
— |
|
|
|
15 |
|
Harper’s Preserve |
|
Montgomery |
|
50% |
|
|
— |
|
|
|
1,722 |
|
|
|
— |
|
|
|
72 |
|
Lantana |
|
Denton |
|
Various (e) |
|
|
1,436 |
|
|
|
134 |
|
|
|
14 |
|
|
|
75 |
|
Long Meadow Farms |
|
Fort Bend |
|
19% |
|
|
636 |
|
|
|
1,447 |
|
|
|
87 |
|
|
|
123 |
|
Southern Trails |
|
Brazoria |
|
40% |
|
|
398 |
|
|
|
629 |
|
|
|
— |
|
|
|
— |
|
Stonewall Estates |
|
Bexar |
|
25% |
|
|
248 |
|
|
|
125 |
|
|
|
— |
|
|
|
— |
|
Summer Creek Ranch |
|
Tarrant |
|
50% |
|
|
796 |
|
|
|
1,772 |
|
|
|
— |
|
|
|
363 |
|
Summer Lakes |
|
Fort Bend |
|
50% |
|
|
330 |
|
|
|
793 |
|
|
|
56 |
|
|
|
— |
|
Village Park |
|
Collin |
|
50% |
|
|
356 |
|
|
|
211 |
|
|
|
3 |
|
|
|
2 |
|
Waterford Park |
|
Fort Bend |
|
50% |
|
|
— |
|
|
|
493 |
|
|
|
— |
|
|
|
37 |
|
Other projects (2) |
|
Various |
|
Various |
|
|
296 |
|
|
|
228 |
|
|
|
— |
|
|
|
15 |
|
Florida |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other projects (3) |
|
Various |
|
Various |
|
|
509 |
|
|
|
336 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total in ventures |
|
|
|
|
|
|
8,256 |
|
|
|
11,403 |
|
|
|
189 |
|
|
|
818 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Combined Total |
|
|
|
|
|
|
17,571 |
|
|
|
29,317 |
|
|
|
857 |
|
|
|
2,592 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (a) |
|
A project is deemed entitled when all major discretionary governmental
land-use approvals have been received. Some projects may require additional permits and/or
non-governmental authorizations for development. |
| |
| (b) |
|
Interest owned reflects our net equity interest in the project, whether owned
directly or indirectly. There are some projects that have multiple ownership structures within
them. Accordingly, portions of these projects may appear as owned, consolidated and/or
accounted for using the equity method. |
| |
| (c) |
|
Lots are for the total project, regardless of our ownership interest. Lots remaining
represent vacant developed lots, lots under development and future planned lots and are
subject to change based on business plan revisions. |
9
|
|
|
| (d) |
|
Commercial acres are for the total project, regardless of our ownership interest and
are net developable acres, which may be fewer than the gross acres available in the project. |
| |
| (e) |
|
The Lantana project consists of a series of 15 partnerships in which our voting
interests range from 25% to 55%. We account for three of these partnerships using the equity
method and we consolidate the remaining partnerships. |
A summary of our significant commercial and income producing properties at second quarter-end
2010 follows:
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Interest |
|
|
|
|
|
| Project |
|
County |
|
Market |
|
Owned (a) |
|
|
Type |
|
Description |
| |
Radisson Hotel |
|
Travis |
|
Austin |
|
|
100 |
% |
|
Hotel |
|
413 guest rooms and suites |
Palisades West |
|
Travis |
|
Austin |
|
|
25 |
% |
|
Office |
|
375,000 square feet |
Las Brisas |
|
Williamson |
|
Austin |
|
|
59 |
% |
|
Multifamily |
|
414 unit luxury apartment |
|
|
|
| (a) |
|
Interest owned reflects our net equity interest in the project, whether owned directly or indirectly. |
10
