NEWS
RELEASE

FOR IMMEDIATE RELEASE
CONTACT:     Anna E. Torma
(512) 433-5312

FORESTAR GROUP INC. REPORTS
THIRD QUARTER 2013 RESULTS


AUSTIN, TEXAS, November 6, 2013—Forestar Group Inc. (NYSE: FOR) today reported third quarter 2013 net income of approximately $11.8 million, or $0.33 per diluted share, compared with a third quarter 2012 net loss of approximately ($0.7) million, or ($0.02) per share outstanding. Third quarter 2013 results include a previously unrecognized tax benefit of approximately $6.3 million, or $0.17 per share, related to qualified timber gains. Third quarter 2012 results include a gain of approximately $10.2 million, or $0.19 per share, after-tax, from the sale of the Broadstone Memorial multifamily community in Houston. In addition, third quarter 2012 results include after-tax expenses of approximately ($5.0) million, or ($0.14) per share, after-tax, principally associated with acquisition of Credo Petroleum Corporation and extinguishment of debt related to amendment and extension of our term loan.

“During third quarter, we continued to see accelerating momentum in real estate sales as well as in oil and gas production. Residential lot demand continues to strengthen evidenced by higher lot sales and average per lot pricing compared with third quarter 2012. Third quarter residential lot sales were the highest since we became a public company in 2007. Multifamily market fundamentals remain favorable in our target markets as we continue to expand our pipeline of projects and sites. In addition, improving oil and gas segment results reflect higher levels of oil production, driven by increased investments in exploration and drilling activity in the Bakken/Three Forks formations in North Dakota and the Lansing-Kansas City formation in Kansas and Nebraska. Given our attractive pipeline of opportunities and our success to date, we look forward to additional oil and gas investments expected to grow production, reserves and earnings. Likewise, given the solid housing recovery, we anticipate continued investments in real estate,” said Jim DeCosmo, president and chief executive officer of Forestar Group.

Third Quarter 2013 Significant Highlights

•
Sold 547 developed residential lots, up over 103% compared with third quarter 2012, with average lot margins up over 28% compared with third quarter 2012
•
Oil production up over 170% compared with third quarter 2012, with 41 new wells drilled in third quarter 2013
Forestar manages its operations through three business segments: real estate, oil and gas and other natural resources.

REAL ESTATE

Third Quarter 2013 Significant Highlights (Includes Ventures)

•
Sold 547 developed residential lots – the highest level of quarterly lot sales since second quarter 2007
•
Over 1,600 lots under option contracts with homebuilders
•
Residential lot margins up over 28% compared with third quarter 2012
•
Sold 1,340 acres of undeveloped land for over $4,950 per acre
•
Sold 19 commercial acres for over $257,000 per acre
•
Sold 46 acres of residential tracts for $109,000 per acre


1



Segment Financial Results:
($ in millions)
 
3Q 2013
 
3Q 2012
 
2Q 2013
Segment Revenues
 
$50.4
 
$27.1
 
$41.2
Segment Earnings
 
$13.2
 
$12.7
 
$8.1

Third quarter 2013 real estate segment earnings were higher compared with third quarter 2012 principally due to higher average prices and margins for residential lots, increased residential lot sales, increased average pricing for commercial acreage sold and higher undeveloped land sales. In addition, third quarter 2012 real estate segment earnings include a $10.2 million gain associated with the sale of Broadstone Memorial, a multifamily community in Houston. Real estate segment earnings increased in third quarter 2013 compared with second quarter 2013 primarily due to higher residential lot sales, improved lot pricing and margins and increased commercial acreage sales.

OIL AND GAS

Third Quarter 2013 Significant Highlights (Includes Ventures)

•
Oil production up over 170% compared with third quarter 2012, principally due to the acquisition of Credo Petroleum and additional investments principally targeting the Bakken/Three Forks and the Lansing-Kansas City formations
•
31 new productive gross oil and gas wells drilled; 18 wells waiting on completion at quarter-end
•
Leased over 7,500 net mineral acres principally in Texas to third parties for nearly $2.0 million

Segment Financial Results:
($ in millions)
 
3Q 2013
 
3Q 2012
 
2Q 2013
Segment Revenues
 
$22.1
 
$10.5
 
$15.8
Segment Earnings
 
$8.5
 
$7.3
 
$4.2

Oil and gas segment earnings increased in third quarter 2013 compared with third quarter 2012 principally due to higher oil production, primarily associated with the acquisition of Credo Petroleum, and higher oil and gas pricing, partially offset by reduced oil volumes associated with royalties from our owned mineral interests, and lower lease bonus revenues. Oil and gas segment earnings increased in third quarter 2013 compared with second quarter 2013 principally due to higher lease bonus revenues, increased oil and natural gas pricing and higher oil production.

OTHER NATURAL RESOURCES

Third Quarter 2013 Significant Highlights (Includes Ventures)

•
Sold nearly 141,000 tons of fiber for $17.33 per ton
•
Recreational leasing remains strong

Segment Financial Results:
($ in millions)
 
3Q 2013
 
3Q 2012
 
2Q 2013
Segment Revenues
 
$2.7
 
$3.0
 
$3.0
Segment Earnings
 
$0.5
 
$0.6
 
$1.0

Third quarter 2013 other natural resources segment earnings were essentially flat compared with third quarter 2012 principally due to fiber sales volumes declining by over 56,000 tons primarily due to scheduled maintenance outages taken by our customers, offset by a 50% increase in average pricing per ton. Other natural resources segment earnings decreased in third quarter 2013 compared with second quarter 2013 principally due to lower fiber sales.


2




OUTLOOK

“We remain confident toward delivering our Triple in FOR strategic initiatives, focused on accelerating value realization, increasing transparency and disclosure, and growing our net asset value through strategic and disciplined investments. We anticipate meeting our 2013 objectives of 1,900 residential lot sales and production of 1.1 million barrels of oil equivalent, and expect accelerated momentum in real estate sales and oil production in 2014.

"Housing markets continue to show growing demand for residential lots, and increased interest in residential and commercial tracts. We continue to accelerate real estate development activities to meet growing builder demand. Our multifamily team continues to build a solid pipeline of multifamily development sites, with construction at our multifamily ventures in Austin and Denver on target to begin delivering units in 2013 and at our wholly-owned project in Midtown Cedar Hill in Dallas in 2014. Our multifamily site in Nashville is expected to be under construction by first quarter 2014 and we acquired a multifamily site in Denver in October. We will continue to evaluate and acquire additional multifamily sites to further develop our pipeline.

“In oil and gas, we continue to increase our investment in exploration and drilling activity, growing production, reserves and value. During third quarter, we participated in an increase in North Dakota drilling activity, with approximately 9 gross Bakken or Three Forks wells (5% average working interest) having initial production during the quarter and 18 gross Bakken or Three Forks wells (7% average working interest) waiting on completion at quarter end, the highest number of wells waiting on completion since we began participating in drilling activity in the Bakken/Three Forks. In addition, exploration and drilling activity in Kansas and Nebraska also continued to increase during third quarter, with combined exploration success rates exceeding 50%. We anticipate drilling activity in the Bakken/Three Forks will continue to accelerate over the next several quarters as operators further shift to pad drilling, which is expected to result in additional production growth, improving economic recoveries, lower well costs and higher returns. As a result of the increased exploration and drilling activity, we would expect our working interest investments to essentially double in 2014 and to continue to exceed our underwriting criteria while delivering returns well above our cost of capital.

“We continue to see significant opportunities for growth through disciplined investment in our oil and gas and real estate businesses. We are well positioned for the remainder of 2013 and for continued momentum in real estate sales and oil production in 2014,” concluded Mr. DeCosmo.

The Company will host a conference call on November 6, 2013 at 10:00 am ET to discuss results of third quarter 2013. 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 1-866-318-8611 at least 15 minutes prior to the start of the meeting. Those wishing to access the call from outside North America should dial 1-617-399-5130. 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 46233350.

About Forestar Group

Forestar Group Inc. operates in three business segments: real estate, oil and gas and other natural resources. At the end of third quarter 2013, the real estate segment owns directly or through ventures almost 132,000 acres of real estate located in ten states and 14 markets in the U.S. The real estate segment has 13 real estate projects representing approximately 25,800 acres currently in the entitlement process, and 72 entitled, developed and under development projects in eight states and 12 markets encompassing over 13,600 acres, comprised of almost 22,800 planned residential lots and approximately 2,300 commercial acres. The oil and gas segment includes approximately 809,000 net acres of oil and gas mineral interests, with approximately 590,000 acres of fee ownership located principally in Texas, Louisiana, Alabama, and Georgia and almost 219,000 net acres of leasehold interests principally located in Nebraska, Kansas, Oklahoma, North Dakota and Texas. These leasehold interests include about 7,000 net mineral acres in the core of the prolific Bakken and Three Forks formations. The other natural resources segment includes sale of wood fiber and management of our recreational leases, and approximately 1.5 million acres of groundwater resources, including 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 and about 20,000 acres of groundwater leases in central Texas. Forestar’s address on the World Wide Web is www.forestargroup.com.


3



Forward Looking Statements

This release contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are typically identified by words or phrases such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “forecast,” and other words and terms of similar meaning. 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, including our ability to achieve synergies and value creation contemplated by the merger with Credo, and our ability to promptly and effectively integrate Credo’s businesses. Other factors and uncertainties that might cause such differences include, but are not limited to: general economic, market, or business conditions; changes in commodity prices; 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.


4



FORESTAR GROUP INC.
(UNAUDITED)
Business Segments
 
Third Quarter
 
First Nine Months
 
2013
 
2012
 
2013
 
2012
 
(In thousands)
Revenues:
 
 
 
 
 
 
 
Real estate (a)
$
50,356

 
$
27,115

 
$
170,264

 
$
71,684

Oil and gas
22,095

 
10,479

 
53,430

 
27,053

Other natural resources
2,656

 
3,016

 
8,963

 
5,277

Total revenues
$
75,107

 
$
40,610

 
$
232,657

 
$
104,014

Segment earnings:
 
 
 
 
 
 
 
Real estate
$
13,197

 
$
12,688

 
$
40,747

 
$
31,931

Oil and gas
8,499

 
7,337

 
17,869

 
19,470

Other natural resources
549

 
552

 
2,792

 
(769
)
Total segment earnings
22,245

 
20,577

 
61,408

 
50,632

Items not allocated to segments:
 
 
 
 
 
 
 
General and administrative expense (b)
(4,648
)
 
(8,000
)
 
(14,935
)
 
(19,482
)
Share-based compensation expense
(3,492
)
 
(6,327
)
 
(15,367
)
 
(11,491
)
Gain on sale of assets
—

 
16

 
—

 
16

Interest expense
(5,231
)
 
(8,094
)
 
(14,892
)
 
(15,649
)
Other corporate non-operating income
24

 
47

 
80

 
158

Income (loss) before taxes
8,898

 
(1,781
)
 
16,294

 
4,184

Income tax benefit (expense) (c)
2,932

 
1,078

 
28

 
(1,274
)
Net income (loss) attributable to Forestar Group Inc.
$
11,830

 
$
(703
)
 
$
16,322

 
$
2,910

 
 
 
 
 
 
 
 
Net income (loss) per common share:
 
 
 
 
 
 
 
Basic
$
0.33

 
$
(0.02
)
 
$
0.46

 
$
0.08

Diluted
$
0.33

 
$
(0.02
)
 
$
0.45

 
$
0.08

 
 
 
 
 
 
 
 
Weighted average common shares outstanding (in millions):
 
 
 
 
 
 
 
Basic
35.4

 
35.2

 
35.3

 
35.2

Diluted
36.1

 
35.2

 
35.9

 
35.4


 
 
Third Quarter
Supplemental Financial Information:
 
2013
 
2012
 
 
(In thousands)
Cash and cash equivalents
 
$
54,769

 
$
10,279

 
 
 
 
 
Borrowings under credit facility
 
200,000

 
227,000

Convertible senior notes, net of discount (d)
 
99,122

 
—

Other debt (e)
 
36,049

 
49,651

Total debt
 
$
335,171

 
$
276,651

 _____________________

(a) 
Real estate includes construction revenue incurred as a general contractor associated with the development of two multifamily venture properties. Construction revenue increased in third quarter and first nine months 2013 to $9.0 million and $26.6 million respectively, compared to $2.1 million and $2.2 million in third quarter and first nine months 2012.
(b) 
Third quarter and first nine months 2012 general and administrative expense includes $3.2 million and $5.7 million in transaction costs to outside advisors associated with our acquisition of Credo Petroleum.
(c) 
Third quarter 2013 results include a previously unrecognized tax benefit of $6.3 million related to qualified timber gains.
(d) 
Represents $125 million convertible senior notes issued February 2013, net of unamortized discount.
(e) 
Consists principally of consolidated venture non-recourse debt.

5



FORESTAR GROUP INC.
REAL ESTATE SEGMENT
PERFORMANCE METRICS
 
Third Quarter
 
First Nine Months
 
2013
 
2012
 
2013
 
2012
REAL ESTATE
 
 
 
 
 
 
 
Owned, Consolidated & Equity Method Ventures:
 
 
 
 
 
 
 
Residential Lots Sold
547

 
269

 
1,353

 
981

Revenue per Lot Sold
$
56,473

 
$
54,102

 
$
55,257

 
$
49,675

Commercial Acres Sold
19

 
18

 
56

 
56

Revenue per Commercial Acre Sold
$
257,548

 
$
133,882

 
$
169,725

 
$
75,147

Undeveloped Acres Sold
1,340

 
564

 
3,301

 
1,952

Revenue per Acre Sold
$
4,955

 
$
2,846

 
$
3,647

 
$
2,700

Owned & Consolidated Ventures:
 
 
 
 
 
 
 
Residential Lots Sold
414

 
193

 
1,028

 
675

Revenue per Lot Sold
$
56,866

 
$
54,206

 
$
55,417

 
$
49,925

Commercial Acres Sold
2

 
18

 
37

 
56

Revenue per Commercial Acre Sold
$
426,554

 
$
133,882

 
$
115,892

 
$
75,147

Undeveloped Acres Sold
1,314

 
564

 
3,233

 
1,817

Revenue per Acre Sold
$
5,001

 
$
2,846

 
$
3,668

 
$
2,707

Ventures Accounted For Using the Equity Method:
 
 
 
 
 
 
 
Residential Lots Sold
133

 
76

 
325

 
306

Revenue per Lot Sold
$
55,251

 
$
53,839

 
$
54,752

 
$
49,125

Commercial Acres Sold
17

 
—

 
19

 
—

Revenue per Commercial Acre Sold
$
239,710

 
$
—

 
$
277,739

 
$
—

Undeveloped Acres Sold
26

 
—

 
68

 
135

Revenue per Acre Sold
$
2,650

 
$
—

 
$
2,650

 
$
2,600



THIRD QUARTER 2013
REAL ESTATE PIPELINE
Real Estate
 
Undeveloped
 
In
Entitlement Process
 
Entitled
 
Developed & Under Development
 
Total Acres (a)
Undeveloped Land
 
 
 
 
 
 
 
 
 
 
Owned
 
85,300
 
 
 
 
 
 
 


Ventures
 
6,833
 
 
 
 
 
 
 
92,133

Residential
 
 
 
 
 
 
 
 
 
 
Owned
 
 
 
23,162
 
8,333
 
872
 


Ventures
 
 
 
 
 
1,868
 
244
 
34,479

Commercial
 
 
 
 
 
 
 
 
 
 
Owned
 
 
 
2,668
 
1,188
 
585
 


Ventures
 
 
 
 
 
359
 
177
 
4,977

Total Acres
 
92,133
 
25,830
 
11,748
 
1,878
 
131,589

 
 
 
 
 
 
 
 
 
 
 
Estimated Residential Lots
 
 
 
19,638
 
3,120
 
22,758

 _____________________
(a) 
In addition, Forestar owns a 58% interest in a venture which controls approximately 16,000 acres of undeveloped land in Georgia with minimal investment. Excludes acres associated with fully developed commercial and income producing properties.


6



FORESTAR GROUP INC.
OIL AND GAS SEGMENT
PERFORMANCE METRICS
 
Third Quarter
 
First Nine Months
 
2013
 
2012
 
2013
 
2012
Leasing Activity from Owned Mineral Interests
 
 
 
 
 
 
 
Acres Leased
7,530

 
3,124

 
8,355

 
3,900

Average Bonus / Acre

$260

 

$1,130

 

$270

 

$975

Delay Rentals Received

$98,000

 

$593,000

 

$562,000

 

$2,155,000

Oil & Gas Production
 
 


 
 
 
 
Royalty Interests (a)
 
 


 
 
 
 
Gross Wells
543

 
542

 
543

 
542

Oil Production (Barrels)
41,800

 
62,400

 
130,700

 
183,300

Average Oil Price ($ / Barrel)

$86.38

 

$75.01

 

$84.47

 

$88.68

Natural Gas Production (MMcf)
304.9

 
411.1

 
1,004.3

 
1,241.5

Average Natural Gas Price ($ / Mcf)

$3.69

 

$2.22

 

$3.29

 

$2.58

BOE Production (b)
92,700

 
130,900

 
298,100

 
390,200

Average Price ($ / BOE)

$51.15

 

$42.72

 

$48.10

 

$49.87

Working Interests
 
 


 
 
 
 
Gross Wells
458

 
10

 
458

 
10

Oil Production (Barrels)
147,100

 
6,700

 
371,900

 
16,500

Average Oil Price ($ / Barrel)

$98.67

 

$83.30

 

$92.66

 

$94.33

Natural Gas Production (MMcf)
236.5

 
15.3

 
636.2

 
57.6

Average Natural Gas Price ($ / Mcf)

$3.71

 

$2.74

 

$3.60

 

$3.16

BOE Production (b)
186,400

 
9,200

 
477,900

 
26,100

Average Price ($ / BOE)

$82.52

 

$64.76

 

$76.89

 

$66.60

Total Oil & Gas Interests
 
 


 
 
 
 
Gross Wells (c)
992

 
542

 
992

 
542

Oil Production (Barrels)
188,900

 
69,100

 
502,600

 
199,800

Average Oil Price ($ / Barrel)

$95.95

 

$75.81

 

$90.53

 

$89.15

Natural Gas Production (MMcf)
541.4

 
426.4

 
1,640.5

 
1,299.1

Average Natural Gas Price ($ / Mcf)

$3.70

 

$2.24

 

$3.41

 

$2.61

BOE Production (b)
279,100

 
140,100

 
776,000

 
416,300

Average Price ($ / BOE)

$72.11

 

$44.17

 

$65.83

 

$50.92

Well Activity
 
 


 
 
 
 
Mineral Interests Owned (c)
 
 


 
 
 
 
Net Acres Held By Production
35,000

 
38,000

 
35,000

 
38,000

Gross Wells Drilled
—

 
2

 
—

 
13

Productive Gross Wells
543

 
542

 
543

 
542

Mineral Interests Leased 
 
 


 
 
 
 
Net Acres Held By Production (d)
35,000

 
36,000

 
35,000

 
36,000

Gross Wells Drilled
31

 
—

 
70

 
—

Productive Gross Wells (d)
449

 
382

 
449

 
382

Total Well Activity
 
 


 
 
 
 
Net Acres Held By Production
70,000

 
74,000

 
70,000

 
74,000

Gross Wells Drilled
31

 
2

 
70

 
13

Productive Gross Wells
992

 
924

 
992

 
924

 _____________________
(a) 
Includes our share of venture activity in which we own a 50% interest. Our share of natural gas production is 60.9 MMcf and 188.9 MMcf in third quarter and first nine months 2013, and 74.9 MMcf and 247.1 MMcf in third quarter and first nine months 2012.
(b) 
BOE – Barrels of oil equivalent (converting natural gas to oil at 6 Mcfe / Bbl).
(c) 
Includes wells operated by third-party lessees/operators. Represent wells in which we own a royalty or working interest in a producing well. Excludes nine working interest wells in third quarter 2013 and ten working interests wells in third quarter 2012 as we also own a royalty interest in these wells.
(d) 
Excludes 8,000 net acres and 1,181 wells in which we have an overriding royalty interest.

7



FORESTAR GROUP INC.
OIL AND GAS SEGMENT
MINERAL INTERESTS

MINERAL INTERESTS OWNED (a) 

Forestar’s oil and gas segment includes approximately 590,000 owned net mineral acres principally located in Texas, Louisiana, Georgia and Alabama.
State
Unleased
 
Leased
 
Held By
Production
 
Total (b)
 
 
 
(Net acres)
Texas
206,000

 
19,000

 
27,000

 
252,000

Louisiana
117,000

 
19,000

 
8,000

 
144,000

Georgia
152,000

 
—

 
—

 
152,000

Alabama
40,000

 
—

 
—

 
40,000

California
1,000

 
—

 
—

 
1,000

Indiana
1,000

 
—

 
—

 
1,000

 
517,000

 
38,000

 
35,000

 
590,000

 _____________________
(a) 
Represents net acres and includes ventures.
(b) 
Excludes 477 net mineral acres located in Colorado.




MINERAL INTERESTS LEASED

Forestar’s oil and gas segment includes approximately 219,000 net mineral acres of leasehold interests principally located in Nebraska, Kansas, Oklahoma, North Dakota and Texas, predominantly as result of our September 28, 2012 acquisition of Credo Petroleum.
State
Undeveloped
 
Held By
Production (a)
 
Total
Nebraska
122,000

 
3,000

 
125,000

Kansas
29,000

 
5,000

 
34,000

Oklahoma
4,000

 
17,000

 
21,000

Alabama
10,000

 
—

 
10,000

Texas
10,000

 
2,000

 
12,000

North Dakota
3,000

 
4,000

 
7,000

Other
6,000

 
4,000

 
10,000

 
184,000

 
35,000

 
219,000

 _____________________
(a) 
Excludes approximately 8,000 net acres of overriding royalty interests.










8



FORESTAR GROUP INC.
OTHER NATURAL RESOURCES SEGMENT
PERFORMANCE METRICS

 
 
Third Quarter
 
First Nine Months
Other Natural Resources
 
2013
 
2012
 
2013
 
2012
Fiber Sales (a)
 
 
 
 
 
 
 
 
Pulpwood tons sold
 
65,700

 
160,000

 
314,400

 
265,200

Average pulpwood price per ton
 
$
12.56

 
$
9.54

 
$
11.53

 
$
9.51

Sawtimber tons sold
 
74,900

 
37,400

 
202,700

 
66,700

Average sawtimber price per ton
 
$
21.52

 
$
20.21

 
$
22.47

 
$
19.88

 
 
 
 
 
 
 
 
 
Total tons sold
 
140,600

 
197,400

 
517,100

 
331,900

Average price per ton
 
$
17.33

 
$
11.56

 
$
15.82

 
$
11.59

 
 
 
 
 
 
 
 
 
Recreational Activity
 
 
 
 
 
 
 
 
Average recreational acres leased
 
118,700

 
129,200

 
120,900

 
130,500

Average price per leased acre
 
$
8.63

 
$
8.84

 
$
9.08

 
$
8.84

 _____________________
(a) 
The majority of our fiber sales were to International Paper at market prices.





























9



FORESTAR GROUP INC.
PROJECTS IN ENTITLEMENT

A summary of our real estate projects in the entitlement process (a) at third quarter-end 2013 follows:
Project
County
 
Market
 
Project Acres (b)
California
 
 
 
 
 
Hidden Creek Estates
Los Angeles
 
Los Angeles
 
700

Terrace at Hidden Hills
Los Angeles
 
Los Angeles
 
30

 
 
 
 
 
 
Georgia
 
 
 
 
 
Ball Ground
Cherokee
 
Atlanta
 
500

Crossing
Coweta
 
Atlanta
 
230

Fincher Road
Cherokee
 
Atlanta
 
3,890

Fox Hall
Coweta
 
Atlanta
 
960

Garland Mountain
Cherokee/Bartow
 
Atlanta
 
350

Martin’s Bridge
Banks
 
Atlanta
 
970

Mill Creek
Coweta
 
Atlanta
 
770

Serenity
Carroll
 
Atlanta
 
440

Wolf Creek
Carroll/Douglas
 
Atlanta
 
12,230

Yellow Creek
Cherokee
 
Atlanta
 
1,060

 
 
 
 
 
 
Texas
 
 
 
 
 
Lake Houston
Harris/Liberty
 
Houston
 
3,700

Total
 
 
 
 
25,830

 _____________________
(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.









10



FORESTAR GROUP INC.
REAL ESTATE PROJECTS

 
A summary of activity within our projects in the development process, which includes entitled (a), developed and under development real estate projects, at third quarter-end 2013 follows:
 
 
 
 
 
Residential Lots (c)
 
Commercial Acres (d)
Project
County
 
Interest
    Owned (b)
 
Lots Sold
Since
Inception
 
Lots
Remaining
 
Acres
Sold
Since
Inception
 
Acres
Remaining (f)
Projects we own
 
 
 
 
 
 
 
 
 
 
 
California
 
 
 
 
 
 
 
 
 
 
 
San Joaquin River
Contra Costa/Sacramento
 
100
%
 
—

 
—

 
—

 
288

Colorado
 
 
 
 
 
 
 
 
 
 
 
Buffalo Highlands
Weld
 
100
%
 
—

 
164

 
—

 
—

Johnstown Farms
Weld
 
100
%
 
229

 
377

 
2

 
7

Pinery West
Douglas
 
100
%
 
—

 
86

 
20

 
94

Stonebraker
Weld
 
100
%
 
—

 
603

 
—

 
—

Tennessee
 
 
 
 
 
 
 
 
 
 
 
Azalea Park
Williamson
 
100
%
 
—

 
173

 
—

 
—

Texas
 
 
 
 
 
 
 
 
 
 
 
Arrowhead Ranch
Hays
 
100
%
 
—

 
387

 
—

 
6

Bar C Ranch
Tarrant
 
100
%
 
292

 
813

 
—

 
—

Barrington Kingwood
Harris
 
100
%
 
93

 
87

 
—

 
—

Cibolo Canyons
Bexar
 
100
%
 
783

 
783

 
97

 
53

Harbor Lakes
Hood
 
100
%
 
209

 
240

 
2

 
19

Hunter’s Crossing
Bastrop
 
100
%
 
430

 
80

 
38

 
71

La Conterra
Williamson
 
100
%
 
159

 
342

 
—

 
58

Lakes of Prosper
Collin
 
100
%
 
32

 
253

 
—

 
—

Maxwell Creek
Collin
 
100
%
 
866

 
133

 
10

 
—

Oak Creek Estates
Comal
 
100
%
 
142

 
505

 
13

 
—

Stoney Creek
Dallas
 
100
%
 
149

 
605

 
—

 
—

Summer Creek Ranch
Tarrant
 
100
%
 
855

 
419

 
35

 
44

Summer Lakes
Fort Bend
 
100
%
 
500

 
630

 
56

 
—

Summer Park
Fort Bend
 
100
%
 
—

 
198

 
28

 
62

The Colony
Bastrop
 
100
%
 
445

 
704

 
22

 
31

The Preserve at Pecan Creek
Denton
 
100
%
 
449

 
345

 
—

 
7

Village Park
Collin
 
100
%
 
580

 
176

 
3

 
2

Westside at Buttercup Creek
Williamson
 
100
%
 
1,457

 
38

 
66

 
—

Other projects (10)
Various
 
100
%
 
2,107

 
150

 
219

 
35


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Residential Lots (c)
 
Commercial Acres (d)
Project
County
 
Interest
    Owned (b)
 
Lots Sold
Since
Inception
 
Lots
Remaining
 
Acres
Sold
Since
Inception
 
Acres
Remaining (f)
Georgia
 
 
 
 
 
 
 
 
 
 
 
Seven Hills
Paulding
 
100
%
 
696

 
394

 
26

 
113

The Villages at Burt Creek
Dawson
 
100
%
 
—

 
1,715

 
—

 
57

Towne West
Bartow
 
100
%
 
—

 
2,674

 
—

 
121

Other projects (17)
Various
 
100
%
 
84

 
3,009

 
—

 
705

Florida
 
 
 
 
 
 
 
 
 
 
 
Other projects (2)
Various
 
100
%
 
301

 
—

 
—

 
—

Missouri and Utah
 
 
 
 
 
 
 
 
 
 
 
Other projects (2)
Various
 
100
%
 
500

 
54

 
—

 
—

 
 
 
 
 
11,358

 
16,137

 
637

 
1,773

Projects in entities we consolidate
 
 
 
 
 
 
 
 
 
 
 
Texas
 
 
 
 
 
 
 
 
 
 
 
City Park
Harris
 
75
%
 
1,259

 
52

 
50

 
115

Lantana (e)
Denton
 
55
%
 
864

 
849

 
9

 
3

Timber Creek
Collin
 
88
%
 
—

 
614

 
—

 
—

Willow Creek Farms II
Waller/Fort Bend
 
90
%
 
82

 
476

 
—

 
—

Other projects (2)
Various
 
Various

 
9

 
198

 
—

 
129

Georgia
 
 
 
 
 
 
 
 
 
 
 
The Georgian
Paulding
 
75
%
 
289

 
1,052

 
—

 
—

 
 
 
 
 
2,503

 
3,241

 
59

 
247

Total owned and consolidated
 
 
 
 
13,861

 
19,378

 
696

 
2,020

Projects in ventures that we account for using the equity method
 
 
 
 
 
 
 
 
 
 
Texas
 
 
 
 
 
 
 
 
 
 
 
Entrada
Travis
 
50
%
 
—

 
821

 
—

 
—

Fannin Farms West
Tarrant
 
50
%
 
324

 
24

 
—

 
12

Harper’s Preserve
Montgomery
 
50
%
 
282

 
1,411

 
—

 
59

Lantana (e)
Denton
 
Various

 
1,163

 
80

 
16

 
42

Long Meadow Farms
Fort Bend
 
38
%
 
1,159

 
643

 
138

 
161

Southern Trails
Brazoria
 
80
%
 
654

 
337

 
—

 
—

Stonewall Estates
Bexar
 
50
%
 
322

 
64

 
—

 
—

Other projects (1)
Nueces
 
50
%
 
—

 
—

 
—

 
15

Total in ventures
 
 
 
 
3,904

 
3,380

 
154

 
289

Combined total
 
 
 
 
17,765

 
22,758

 
850

 
2,309

 _____________________
(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 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.

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(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 23 partnerships in which our voting interests range from 25 percent to 55 percent. We account for two of these partnerships using the equity method and we consolidate the remaining partnerships.
(f) 
Excludes acres associated with commercial and income producing properties.

A summary of our significant commercial and income producing properties at third quarter-end 2013 follows:
Project
 
County
 
Market
 
Interest
    Owned (a)
 
Type
 
Acres
 
Description
Radisson Hotel
 
Travis
 
Austin
 
100
%
 
Hotel
 
2

 
413 guest rooms and suites
Eleven (b)
 
Travis
 
Austin
 
25
%
 
Multifamily
 
3

 
257-unit luxury apartment
360° (b)
 
Arapahoe
 
Denver
 
20
%
 
Multifamily
 
4

 
304-unit luxury apartment
Midtown Cedar Hill (b)
 
Dallas
 
Dallas
 
100
%
 
Multifamily
 
13

 
354-unit luxury apartment
 _____________________
(a) 
Interest owned reflects our total interest in the project, whether owned directly or indirectly.
(b) 
Construction in progress.






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