EX-99.1 2 exh991forreleaseq214.htm EX 99.1 EARNINGS RELEASE Exh 99.1 FOR ReleaseQ214

Exhibit 99.1


NEWS
RELEASE

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

FORESTAR GROUP INC. REPORTS
SECOND QUARTER 2014 RESULTS


AUSTIN, TEXAS, August 6, 2014—Forestar Group Inc. (NYSE: FOR) today reported second quarter 2014 net income of approximately $14.8 million, or $0.34 per diluted share outstanding, compared with second quarter 2013 net income of approximately $0.5 million, or $0.02 per diluted share outstanding.

“During second quarter, residential lot sales remained strong and we are developing lots commensurate with inventories and home buyer demand. Multifamily market conditions remain favorable in our target markets, and we continue to acquire sites in 'A' locations to grow our business. In addition, oil and gas working interest production grew significantly, driven principally by new wells in the Bakken/Three Forks generating strong initial production. We are on track to deliver our Growing FORward strategic initiatives, which are focused on increasing total segment earnings, return on assets and opportunistically selling non-core assets. Our balance sheet strength, improving cash flows and significant liquidity are expected to adequately fund these initiatives,” said Jim DeCosmo, president and chief executive officer of Forestar Group.

Second Quarter 2014 Significant Highlights

Sold 537 developed residential lots, up nearly 50% compared with second quarter 2013
Converted over 10,000 acres of timber leases into ownership of 5,400 acres of undeveloped land from Ironstob venture, resulting in a $10.5 million gain
Increased working interest oil production over 65% compared with second quarter 2013, with 31 new gross wells generating initial production
Sold interest in 97 gross (6 net) non-core producing oil and gas wells in Oklahoma for a gain of $4.5 million and sold leasehold interests in 223 net mineral acres in North Dakota for a gain of $1.2 million

Forestar manages its operations through three business segments: real estate, oil and gas and other natural resources.

REAL ESTATE

Second Quarter 2014 Significant Highlights (Includes Ventures)

Sold 537 developed residential lots at almost $64,100 per lot; highest quarterly average lot price since 2009
Sold 79 acres of residential tracts for $63,700 per acre
Sold over 3,200 acres of undeveloped land for nearly $7.9 million
Converted over 10,000 acres of timber leases into ownership of 5,400 acres of undeveloped land from Ironstob venture




1



Segment Financial Results:
($ in millions)
 
2Q 2014
 
2Q 2013
 
1Q 2014
Segment Revenues
 
$55.2
 
$41.2
 
$65.5
Segment Earnings
 
$27.3
 
$8.1
 
$23.6

In second quarter 2014, residential lot sales were up almost 50% compared with second quarter 2013, with average lot prices and gross profit up 11% over that same period. Second quarter 2014 real estate segment earnings were higher compared with second quarter 2013 principally due to a $10.5 million gain associated with the exchange of over 10,000 acres of timber leases for 5,400 acres of undeveloped land from the Ironstob venture, and higher residential lot and undeveloped land sales. Real estate segment earnings increased in second quarter 2014 compared with first quarter 2014 primarily due to the $10.5 million gain associated with the exchange of timber leases for undeveloped land from Ironstob venture. First quarter 2014 real estate segment results include earnings of $13.2 million associated with the sale of approximately 8,400 acres of undeveloped land.

OIL AND GAS

Second Quarter 2014 Significant Highlights (Includes Ventures)

Increased total oil production by over 43% compared with second quarter 2013, principally due to working interest investments primarily targeting the Bakken/Three Forks and the Lansing-Kansas City formations
Sold interest in 97 gross (6 net) non-core producing oil and gas wells in Oklahoma for a gain of $4.5 million and sold leasehold interests in 223 net mineral acres in North Dakota for a gain of $1.2 million
Added 31 gross oil and gas wells, 5 Bakken/Three Forks gross wells waiting on completion at quarter-end
Leased nearly 1,400 net fee mineral acres to third parties, principally in Louisiana and Texas

Segment Financial Results:
($ in millions)
 
2Q 2014
 
2Q 2013
 
1Q 2014
Segment Revenues
 
$24.4
 
$15.8
 
$17.6
Segment Earnings
 
$9.5
 
$4.2
 
$0.8

Oil and gas segment earnings increased in second quarter 2014 compared with second quarter 2013 and first quarter 2014 principally due to $5.7 million in earnings associated with the sale of various oil and gas properties in Oklahoma and North Dakota and higher working interest production volumes, partially offset by higher exploration, production, depletion and operating expenses, and lower production volumes and delay rental revenues from owned mineral interests. Second quarter 2014 oil and gas segment earnings includes $2.1 million of dry hole expense associated with a working interest in an exploratory well in East Texas.

OTHER NATURAL RESOURCES

Second Quarter 2014 Significant Highlights (Includes Ventures)

Signed amended groundwater reservation agreement, generating $0.7 million in earnings
Sold nearly 107,800 tons of fiber for $16.86 per ton

Segment Financial Results:
($ in millions)
 
2Q 2014
 
2Q 2013
 
1Q 2014
Segment Revenues
 
$3.5
 
$3.0
 
$1.6
Segment Earnings
 
$2.1
 
$1.0
 
($0.5)


2



Second quarter 2014 other natural resources segment results increased compared with second quarter 2013 and first quarter 2014 principally due to $0.7 million in earnings from a groundwater reservation agreement and a $0.7 million gain on termination of a timber lease in connection with the Ironstob venture.

OUTLOOK

Capitalizing on Low Lot Inventory and Solid Demand
"Our real estate markets remain favorable and we are well positioned to continue to capitalize on the housing recovery by growing residential lot sales and commercial and residential tract sales. We anticipate residential lot sales in 2014 to be in the range of 2,200 - 2,300 lots, up over 20% compared with 2013. Our multifamily team continues to build a solid pipeline of development sites, with our Eleven project in Austin now substantially complete, over 85% leased and on target for sale in 2014. In second quarter 2014, we acquired an additional multifamily site in Austin, Texas and began construction on a community near Denver. We will continue to evaluate and acquire additional residential and multifamily sites to further develop our real estate pipeline.

Working Interest Production Expected to Increase 30% in Second Half of 2014    
“During second quarter, we continued to invest in exploration and drilling activity, growing production, reserves and value. Drilling and completion activity increased in second quarter, with 17 gross Bakken/Three Forks wells (7% average working interest) generating initial production and 5 gross Bakken/Three Forks wells waiting on completion at quarter end. Operators in the Bakken/Three Forks formations continue to shift to pad drilling and are generating improved well results with increased production and lower drilling costs. In addition, exploration and drilling activity in Kansas and Nebraska continued to see favorable success rates and our addition of approximately 77,000 leasehold mineral acres in the Lansing-Kansas City formation during second quarter should further develop a solid pipeline of drilling prospects. As a result, working interest production is expected to increase 30% in the second half of 2014 compared with the first six months of 2014. In addition, we anticipate 2014 total oil and gas production will exceed 1.2 million BOE (barrel of oil equivalent), a 15% increase compared with 2013 levels.

Balance Sheet, Cash Flow and Liquidity Expected to Adequately Fund Growing FORward Initiatives
“We continue to see significant opportunities for growth through disciplined investments in our real estate and oil and gas businesses. Our strong balance sheet, improving cash flows and significant liquidity are expected to adequately fund our Growing FORward strategic initiatives,” concluded Mr. DeCosmo.

The Company will host a conference call on August 6, 2014 at 10:00 am ET to discuss results of second quarter 2014. 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 1-866-543-6403 at least 15 minutes prior to the start of the meeting. Those wishing to access the call from outside North America should dial 1-617-213-8896. 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 13170686.

About Forestar Group

Forestar Group Inc. operates in three business segments: real estate, oil and gas and other natural resources. At the end of second quarter 2014, the real estate segment owns directly or through ventures almost 121,000 acres of real estate located in ten states and 13 markets in the U.S. The real estate segment has 11 real estate projects representing approximately 24,400 acres currently in the entitlement process, and 73 entitled, developed and under development projects in eight states and 13 markets encompassing over 11,500 acres, comprised of almost 18,100 planned residential lots and approximately 2,000 commercial acres. The oil and gas segment includes approximately 935,000 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 approximately 345,000 net acres of leasehold interests principally located in Nebraska, Kansas, Oklahoma, North Dakota and Texas. These leasehold interests include about 8,000 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 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 rates or availability; lengthy and uncertain entitlement processes; cyclically 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
 
Second Quarter
 
First Six Months
 
2014
 
2013
 
2014
 
2013
 
(In thousands)
Revenues:
 
 
 
 
 
 
 
Real estate (a)
$
55,173

 
$
41,219

 
$
120,653

 
$
119,908

Oil and gas
24,377

 
15,831

 
41,931

 
31,335

Other natural resources
3,463

 
3,029

 
5,034

 
6,307

Total revenues
$
83,013

 
$
60,079

 
$
167,618

 
$
157,550

Segment earnings:
 
 
 
 
 
 
 
Real estate
$
27,297

 
$
8,104

 
$
50,872

 
$
27,550

Oil and gas
9,522

 
4,243

 
10,329

 
9,370

Other natural resources
2,079

 
991

 
1,551

 
2,243

Total segment earnings
38,898

 
13,338

 
62,752

 
39,163

Items not allocated to segments:
 
 
 
 
 
 
 
General and administrative expense
(5,566
)
 
(5,329
)
 
(10,734
)
 
(10,287
)
Share-based compensation expense (b)
(3,219
)
 
(1,460
)
 
(3,532
)
 
(11,875
)
Interest expense
(7,370
)
 
(5,122
)
 
(12,873
)
 
(9,661
)
Other corporate non-operating income
130

 
25

 
252

 
56

Income before taxes
22,873

 
1,452

 
35,865

 
7,396

Income tax expense
(8,051
)
 
(911
)
 
(12,709
)
 
(2,904
)
Net income attributable to Forestar Group Inc.
$
14,822

 
$
541

 
$
23,156

 
$
4,492

 
 
 
 
 
 
 
 
Net income per common share:
 
 
 
 
 
 
 
Diluted
$
0.34

 
$
0.02

 
$
0.53

 
$
0.13

 
 
 
 
 
 
 
 
Weighted average common shares outstanding (in millions):
 
 
 
 
 
 
 
Diluted (c)
43.7

 
36.1

 
43.7

 
35.9


 
 
Second Quarter
Supplemental Financial Information:
 
2014
 
2013
 
 
(In thousands)
Cash and cash equivalents
 
$
184,168

 
$
69,138

 
 
 
 
 
Borrowings under credit facility
 

 
200,000

Secured senior notes
 
250,000

 

Convertible senior notes, net of discount
 
101,542

 
98,353

Tangible equity unit notes, net of discount
 
21,208

 

Other debt (d)
 
27,578

 
33,294

Total debt
 
$
400,328

 
$
331,647

Net debt
 
$
216,160

 
$
262,509

 _____________________
(a) 
First six months 2013 real estate revenues include $41 million from the first quarter 2013 sale of Promesa, a wholly-owned multifamily community we developed in Austin.
(b) 
First six months 2014 share-based compensation expense decreased principally as result of a decrease in our stock price since year-end 2013, compared with an increase in our stock price in first six months 2013 since year-end 2012, which impacted the value of vested cash-settled awards.
(c) 
Second quarter and first six months 2014 weighted average diluted shares outstanding includes 7.9 million associated with our tangible equity units issued during fourth quarter 2013.
(d) 
Consists principally of consolidated venture non-recourse debt. Excludes approximately $100.1 million of unconsolidated venture debt and approximately $8.2 million of outstanding letters of credit.

5



FORESTAR GROUP INC.
REAL ESTATE SEGMENT
PERFORMANCE METRICS
 
Second Quarter
 
First Six Months
 
2014
 
2013
 
2014
 
2013
REAL ESTATE
 
 
 
 
 
 
 
Owned, Consolidated & Equity Method Ventures:
 
 
 
 
 
 
 
Residential Lots Sold
537

 
360

 
1,511

 
806

Revenue per Lot Sold
$
64,056

 
$
57,588

 
$
50,228

 
$
54,432

Commercial Acres Sold
3

 
34

 
3

 
37

Revenue per Commercial Acre Sold
$
96,774

 
$
103,102

 
$
96,774

 
$
125,706

Undeveloped Acres Sold
3,208

 
1,042

 
12,537

 
1,961

Revenue per Acre Sold
$
2,460

 
$
2,579

 
$
2,202

 
$
2,753

Owned & Consolidated Ventures:
 
 
 
 
 
 
 
Residential Lots Sold
481

 
259

 
1,317

 
614

Revenue per Lot Sold
$
60,651

 
$
57,154

 
$
47,644

 
$
54,440

Commercial Acres Sold
3

 
32

 
3

 
35

Revenue per Commercial Acre Sold
$
96,774

 
$
74,166

 
$
96,774

 
$
100,311

Undeveloped Acres Sold
2,950

 
1,000

 
12,279

 
1,919

Revenue per Acre Sold
$
2,473

 
$
2,576

 
$
2,200

 
$
2,755

Ventures Accounted For Using the Equity Method:
 
 
 
 
 
 
 
Residential Lots Sold
56

 
101

 
194

 
192

Revenue per Lot Sold
$
93,306

 
$
58,700

 
$
67,772

 
$
54,407

Commercial Acres Sold

 
2

 

 
2

Revenue per Commercial Acre Sold
$

 
$
652,886

 
$

 
$
652,886

Undeveloped Acres Sold
258

 
42

 
258

 
42

Revenue per Acre Sold
$
2,306

 
$
2,650

 
$
2,306

 
$
2,650



SECOND QUARTER 2014
REAL ESTATE PIPELINE
Real Estate
 
Undeveloped
 
In
Entitlement Process
 
Entitled
 
Developed & Under Development
 
Total Acres (a)
Undeveloped Land
 
 
 
 
 
 
 
 
 
 
Owned
 
79,563
 
 
 
 
 
 
 


Ventures
 
5,073
 
 
 
 
 
 
 
84,636

Residential
 
 
 
 
 
 
 
 
 
 
Owned
 
 
 
21,762
 
7,794
 
535
 


Ventures
 
 
 
 
 
1,105
 
131
 
31,327

Commercial
 
 
 
 
 
 
 
 
 
 
Owned
 
 
 
2,668
 
1,062
 
523
 


Ventures
 
 
 
 
 
250
 
123
 
4,626

Total Acres
 
84,636
 
24,430
 
10,211
 
1,312
 
120,589

 
 
 
 
 
 
 
 
 
 
 
Estimated Residential Lots
 
 
 
16,100
 
1,998
 
18,098

 _____________________
(a) 
In addition, at second quarter-end 2014, Forestar owns a 58% interest in a venture which controls approximately 2,000 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
 
Second Quarter
 
First Six Months
 
2014
 
2013
 
2014
 
2013
Leasing Activity from Owned Mineral Interests
 
 
 
 
 
 
 
Acres Leased
1,380

 
515

 
3,121

 
825

Average Bonus / Acre
$
352

 
$
343

 
$
347

 
$
333

Delay Rentals Received
$
14,000

 
$
6,000

 
$
14,000

 
$
464,000

Oil & Gas Production
 
 
 
 
 
 
 
Royalty Interests (a)
 
 
 
 
 
 
 
Gross Wells
547

 
543

 
547

 
543

Oil Production (Barrels)
30,400

 
40,600

 
63,100

 
88,900

Average Oil Price ($ / Barrel)
$
91.75

 
$
80.75

 
$
88.44

 
$
83.56

Gas Production (MMcf)
232.4

 
322.2

 
518.5

 
699.4

Average Gas Price ($ / Mcf)
$
4.61

 
$
3.18

 
$
4.10

 
$
3.11

BOE Production (b)
69,100

 
94,400

 
149,500

 
205,400

Average Price ($ / BOE)
$
55.83

 
$
45.66

 
$
51.55

 
$
46.73

Working Interests
 
 
 
 
 
 
 
Gross Wells
410

 
449

 
410

 
449

Oil Production (Barrels)
206,900

 
125,200

 
346,200

 
224,800

Average Oil Price ($ / Barrel)
$
92.90

 
$
87.11

 
$
90.77

 
$
88.73

Gas Production (MMcf)
227.5

 
183.1

 
427.9

 
399.7

Average Gas Price ($ / Mcf)
$
4.39

 
$
3.36

 
$
4.84

 
$
3.53

BOE Production (b)
244,800

 
155,700

 
417,500

 
291,500

Average Price ($ / BOE)
$
82.59

 
$
73.99

 
$
80.22

 
$
73.29

Total Oil & Gas Interests
 
 
 
 
 
 
 
Gross Wells (c)
948

 
983

 
948

 
983

Oil Production (Barrels)
225,300

 
152,700

 
382,300

 
286,100

Average Oil Price ($ / Barrel)
$
95.38

 
$
90.64

 
$
93.75

 
$
92.86

NGL Production (Barrels)
12,000

 
13,100

 
27,000

 
27,600

Average NGL Price ($ / Barrel)
$
43.24

 
$
26.49

 
$
43.17

 
$
29.37

Total Oil Production (Barrels)
237,300

 
165,800

 
409,300

 
313,700

Average Total Oil Price ($ / Barrel)
$
92.75

 
$
85.55

 
$
90.41

 
$
87.26

Gas Production (MMcf)
459.9

 
505.3

 
946.4

 
1,099.1

Average Gas Price ($ / Mcf)
$
4.50

 
$
3.25

 
$
4.43

 
$
3.26

BOE Production (b)
313,900

 
250,100

 
567,000

 
496,900

Average Price ($ / BOE)
$
76.70

 
$
63.30

 
$
72.66

 
$
62.31

Average Daily Production
 
 
 
 
 
 
 
BOE per Day
 
 
 
 
 
 
 
Royalty Interests
760

 
1,037

 
828

 
1,136

Working Interests
2,690

 
1,711

 
2,305

 
1,610

Total
3,450

 
2,748

 
3,133

 
2,746

Working Interests BOE per Day 
 
 
 
 
 
 
 
North Dakota
1,566

 
814

 
1,188

 
669

Kansas/Nebraska
586

 
351

 
562

 
339

Texas, Louisiana and Other
538

 
546

 
555

 
602

Total
2,690

 
1,711

 
2,305

 
1,610

 _____________________
(a) 
Includes our share of venture activity in which we own a 50% interest. Our share of natural gas production is 50.5 MMcf and 103.2 MMcf in second quarter and first six months 2014, and 57.8 MMcf and 128.0 MMcf in second quarter and first six months 2013.
(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 second quarter 2014 and 2013 as we also own a royalty interest in these wells.

7



FORESTAR GROUP INC.
OIL AND GAS SEGMENT

 
Second Quarter
 
First Six Months
 
2014
 
2013
 
2014
 
2013
Well Activity
 
 
 
 
 
 
 
Mineral Interests Owned (a)
 
 
 
 
 
 
 
Net Acres Held By Production
36,000

 
36,000

 
36,000

 
36,000

Gross Wells Drilled

 

 

 

Productive Gross Wells
547

 
543

 
547

 
543

Mineral Interests Leased 
 
 
 
 
 
 
 
Net Acres Held By Production (b)
41,000

 
33,000

 
41,000

 
33,000

Gross Wells Drilled
45

 
18

 
66

 
39

Productive Gross Wells (c)
401

 
440

 
401

 
440

Total Well Activity
 
 
 
 
 
 
 
Net Acres Held By Production
77,000

 
69,000

 
77,000

 
69,000

Gross Wells Drilled
45

 
18

 
66

 
39

Productive Gross Wells
948

 
983

 
948

 
983

 _____________________
(a) 
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 at second quarter-end 2014 and 2013 as we also own a royalty interest in these wells.
(b) 
Excludes 8,000 net acres in which we have an overriding royalty interest.
(c) 
Exclude 1,181 wells in which we have an overriding royalty and nine working interest wells as we also own a royalty interest in these wells.



8



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
 
 
 
(Net acres)
Texas
208,000

 
17,000

 
27,000

 
252,000

Louisiana
132,000

 
3,000

 
9,000

 
144,000

Georgia
152,000

 

 

 
152,000

Alabama
40,000

 

 

 
40,000

California
1,000

 

 

 
1,000

Indiana
1,000

 

 

 
1,000

 
534,000

 
20,000

 
36,000

 
590,000

 _____________________
(a) 
Represents net acres and includes ventures.




MINERAL INTERESTS LEASED

Forestar’s oil and gas segment includes approximately 345,000 net mineral acres of leasehold interests principally located in Nebraska, Kansas, Oklahoma, Texas and North Dakota.
State
Undeveloped
 
Held By
Production (a)
 
Total
Nebraska
223,000

 
7,000

 
230,000

Kansas
25,000

 
6,000

 
31,000

Oklahoma
23,000

 
17,000

 
40,000

Alabama
8,000

 

 
8,000

Texas
10,000

 
3,000

 
13,000

North Dakota
4,000

 
4,000

 
8,000

Other
11,000

 
4,000

 
15,000

 
304,000

 
41,000

 
345,000

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










9



FORESTAR GROUP INC.
OTHER NATURAL RESOURCES SEGMENT
PERFORMANCE METRICS

 
Second Quarter
 
First Six Months
 
2014
 
2013
 
2014
 
2013
Fiber Sales
 
 
 
 
 
 
 
Pulpwood tons sold
58,200

 
128,100

 
86,400

 
248,700

Average pulpwood price per ton
$
11.42

 
$
8.66

 
$
10.85

 
$
9.19

Sawtimber tons sold
49,600

 
56,900

 
78,500

 
127,800

Average sawtimber price per ton
$
23.23

 
$
23.87

 
$
22.67

 
$
23.04

 
 
 
 
 
 
 
 
Total tons sold
107,800

 
185,000

 
164,900

 
376,500

Average stumpage price per ton (a)
$
16.86

 
$
13.34

 
$
16.48

 
$
13.89

 
 
 
 
 
 
 
 
Recreational Activity
 
 
 
 
 
 
 
Average recreational acres leased
110,000

 
121,800

 
113,200

 
122,200

Average price per leased acre
$
9.69

 
$
9.29

 
$
9.41

 
$
9.29

 _____________________

(a) 
Average stumpage price per ton is based on gross revenues less cut and haul costs.





























10



FORESTAR GROUP INC.
PROJECTS IN ENTITLEMENT

A summary of our real estate projects in the entitlement process (a) at second quarter-end 2014 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

Garland Mountain
Cherokee/Bartow
 
Atlanta
 
350

Martin’s Bridge
Banks
 
Atlanta
 
970

Mill Creek
Coweta
 
Atlanta
 
770

Wolf Creek
Carroll/Douglas
 
Atlanta
 
12,230

Yellow Creek
Cherokee
 
Atlanta
 
1,060

 
 
 
 
 
 
Texas
 
 
 
 
 
Lake Houston
Harris/Liberty
 
Houston
 
3,700

Total
 
 
 
 
24,430

 _____________________
(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.

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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 second quarter-end 2014 follows:
 
 
 
 
 
Residential Lots (c)
 
Commercial Acres (d)
Project
County
 
Interest
    Owned (b)
 
Lots Sold
Since
Inception
 
Lots
Remaining
 
Acres
Sold
Since
Inception
 
Acres
Remaining (e)
Projects we own
 
 
 
 
 
 
 
 
 
 
 
California
 
 
 
 
 
 
 
 
 
 
 
San Joaquin River
Contra Costa/Sacramento
 
100
%
 

 

 

 
288

Colorado
 
 
 
 
 
 
 
 
 
 
 
Buffalo Highlands
Weld
 
100
%
 

 
164

 

 

Johnstown Farms
Weld
 
100
%
 
269

 
343

 
2

 
7

Pinery West
Douglas
 
100
%
 
45

 
41

 
20

 
94

Stonebraker
Weld
 
100
%
 

 
603

 

 

Tennessee
 
 
 
 
 
 
 
 
 
 
 
Morgan Farms
Williamson
 
100
%
 
40

 
133

 

 

Weatherford Estates
Williamson
 
100
%
 

 
17

 

 

Texas
 
 
 
 
 
 
 
 
 
 
 
Arrowhead Ranch
Hays
 
100
%
 

 
387

 

 
6

Bar C Ranch
Tarrant
 
100
%
 
292

 
813

 

 

Barrington Kingwood
Harris
 
100
%
 
120

 
60

 

 

Cibolo Canyons
Bexar
 
100
%
 
831

 
819

 
130

 
20

Harbor Lakes
Hood
 
100
%
 
215

 
234

 
2

 
19

Hunter’s Crossing
Bastrop
 
100
%
 
471

 
39

 
41

 
62

La Conterra
Williamson
 
100
%
 
197

 
133

 

 
58

Lakes of Prosper
Collin
 
100
%
 
65

 
220

 

 

Lantana
Denton
 
100
%
 
1,013

 
749

 
9

 
3

Maxwell Creek
Collin
 
100
%
 
897

 
102

 
10

 

Oak Creek Estates
Comal
 
100
%
 
188

 
459

 
13

 

Parkside
Collin
 
100
%
 

 
200

 

 

Stoney Creek
Dallas
 
100
%
 
221

 
533

 

 

Summer Creek Ranch
Tarrant
 
100
%
 
942

 
332

 
35

 
44

Summer Lakes
Fort Bend
 
100
%
 
610

 
520

 
56

 

Summer Park
Fort Bend
 
100
%
 
69

 
129

 
28

 
62

The Colony
Bastrop
 
100
%
 
448

 
701

 
22

 
31

The Preserve at Pecan Creek
Denton
 
100
%
 
506

 
288

 

 
7

Village Park
Collin
 
100
%
 
749

 
7

 
3

 
2

Westside at Buttercup Creek
Williamson
 
100
%
 
1,491

 
6

 
66

 

Other projects (9)
Various
 
100
%
 
1,727

 
277

 
133

 
7

Georgia
 
 
 
 
 
 
 
 
 
 
 
Seven Hills
Paulding
 
100
%
 
750

 
340

 
26

 
113

The Villages at Burt Creek
Dawson
 
100
%
 

 
1,715

 

 
57

Other projects (18)
Various
 
100
%
 
242

 
2,851

 

 
705

Other
 
 
 
 
 
 
 
 
 
 
 
Other projects (3)
Various
 
100
%
 
522

 
431

 

 

 
 
 
 
 
12,920

 
13,646

 
596

 
1,585



12



 
 
 
 
 
Residential Lots (c)
 
Commercial Acres (d)
Project
County
 
Interest
Owned 
(b)
 
Lots Sold
Since
Inception
 
Lots
Remaining
 
Acres
Sold
Since
Inception
 
Acres
Remaining  (e)
Projects in entities we consolidate
 
 
 
 
 
 
 
 
 
 
 
Texas
 
 
 
 
 
 
 
 
 
 
 
City Park
Harris
 
75
%
 
1,311

 
458

 
50

 
115

Timber Creek
Collin
 
88
%
 

 
614

 

 

Willow Creek Farms II
Waller/Fort Bend
 
90
%
 
90

 
160

 

 

Other projects (2)
Various
 
Various

 
9

 
199

 

 
18

Georgia
 
 
 
 
 
 
 
 
 
 
 
The Georgian
Paulding
 
75
%
 
535

 

 

 

 
 
 
 
 
1,945

 
1,431

 
50

 
133

Total owned and consolidated
 
 
 
 
14,865

 
15,077

 
646

 
1,718

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
%
 
314

 
1,379

 
8

 
51

Lantana - Rayzor Ranch
Denton
 
25
%
 
1,163

 

 
16

 
42

Long Meadow Farms
Fort Bend
 
38
%
 
1,307

 
495

 
183

 
120

Southern Trails
Brazoria
 
80
%
 
739

 
252

 

 

Stonewall Estates
Bexar
 
50
%
 
340

 
50

 

 

Other projects (2)
Various
 
Various

 

 

 

 
15

Total in ventures
 
 
 
 
4,187

 
3,021

 
207

 
240

Combined total
 
 
 
 
19,052

 
18,098

 
853

 
1,958

 _____________________
(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) 
Excludes acres associated with commercial and income producing properties.

A summary of our significant commercial and income producing properties at second quarter-end 2014 follows:
Project
 
Market
 
Interest
    Owned (a)
 
Type
 
Acres
 
Description
Radisson Hotel
 
Austin
 
100
%
 
Hotel
 
2

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

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

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

 
354-unit luxury apartment
Acklen (c)
 
Nashville
 
30
%
 
Multifamily
 
4

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


13