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Forestar Group Inc. Reports Third Quarter 2013 Results

AUSTIN, Texas--(BUSINESS WIRE)--Nov. 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
 

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.

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.

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.

         
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
 
Supplemental Financial Information:       Third Quarter
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.
 
 
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.
 
         
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.
 

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.

 
         
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.
 
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.
 

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
                       
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.
(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.

Source: Forestar Group Inc.

Forestar Group Inc.
Anna E. Torma, 512-433-5312