Forestar Group Inc.

Schedule III — Consolidated Real Estate and Accumulated Depreciation

Year-End 2012

(In thousands)



			Initial Cost to Company			Costs Capitalized Subsequent to Acquisition					Gross Amount Carried at End of Period
Description	Encumbrances		Land		Buildings & Improvements	Improvements less Cost of Sales and Other			Carrying Costs^(a)		Land & Land Improvements		Buildings & Improvements	Total		Accumulated Depreciation	Date of Construction		Date Acquired
Entitled, Developed, and Under Development Projects:
CALIFORNIA
*Contra Costa County*
San Joaquin River			$	12,225		$	(3,310	)			$	8,915		$	8,915					(b	)
COLORADO
*Douglas County*
Pinery West				7,308			2,219					9,527			9,527			2006		2006
*Weld County*
Buffalo Highlands				3,001			575					3,576			3,576			2006		2005
Johnstown Farms				2,749			2,643		$	188		5,580			5,580			2002		2002
Stonebraker				3,878			(1,271	)				2,607			2,607			2005		2005
FLORIDA
*Hillsborough County*
Bridle Path Estates				2,683								2,683			2,683					2012
GEORGIA
*Bartow County*
Towne West				936			923					1,859			1,859					(b	)
Euharlee North				269			138					407			407					(b	)
Parkside at Woodbury				134			374					508			508					(b	)
*Coweta County*
Cedar Creek Preserve				852			228					1,080			1,080					(b	)
Corinth Landing				607			585					1,192			1,192					(b	)
Coweta South Industrial Park				532			477					1,009			1,009					(b	)
Fox Hall				166			2,239					2,405			2,405					(b	)
Genesee				480			1,176					1,656			1,656					(b	)
*Dawson County*
Woodlands at Burt Creek				71			1,670					1,741			1,741					(b	)
TEXAS
*Bastrop County*
Hunter’s Crossing				3,613			7,593			358		11,564			11,564			2001		2001
The Colony				8,726			12,575			161		21,462			21,462			1999		1999
*Bexar County*
Cibolo Canyons				25,569			50,978			1,549		78,096			78,096			2004		1986
*Calhoun County*
Caracol	$	6,517		8,603			3,953			2,047		14,603			14,603			2006		2006
Harbor Mist				2,822			(2,822	)				—			—					2007



			Initial Cost to Company				Costs Capitalized Subsequent to Acquisition					Gross Amount Carried at End of Period
Description	Encumbrances		Land		Buildings & Improvements		Improvements less Cost of Sales and Other			Carrying Costs^(a)		Land & Land Improvements		Buildings & Improvements		Total		Accumulated Depreciation		Date of Construction		Date Acquired
*Collin County*
Lakes of Prosper			$	8,951			$	7				$	8,958			$	8,958						2012
Maxwell Creek				9,904				(4,204	)	$	635		6,335				6,335				2000		2000
Timber Creek	$	3,431		7,282				3,053					10,335				10,335				2007		2007
Village Park				6,550				(129	)		81		6,502				6,502						2012
*Comal County*
Oak Creek Estates				1,921				1,892			175		3,988				3,988				2006		2005
*Dallas County*
Stoney Creek				12,822				1,324			158		14,304				14,304				2007		2007
*Denton County*
Lantana		5,403		31,451				831					32,282				32,282				2000		1999
The Preserve at Pecan Creek				5,855				857			436		7,148				7,148				2006		2005
*Fort Bend County*
Summer Lakes				4,269				(1,003	)				3,266				3,266						2012
Summer Park				4,803				(1,381	)				3,422				3,422						2012
Willow Creek Farms		113		3,479				2,161					5,640				5,640						2012
*Harris County*
Barrington				8,950				(1,720	)				7,230				7,230						2011
City Park		28		3,946				(2,732	)		1,641		2,855				2,855				2002		2001
*Hays County*
Arrowhead Ranch				12,856				1,978					14,834				14,834						2007
*Hood County*
Harbor Lakes				3,514				355			312		4,181				4,181				2000		1998
*Nueces County*
Tortuga Dunes				12,080				10,289					22,369				22,369						2006
*Tarrant County*
Summer Creek Ranch				2,887				(482	)				2,405				2,405						2012
The Bar C Ranch				1,365				24					1,389				1,389						2012
*Williamson County*
Westside at Buttercup Creek				13,149				(10,573	)		488		3,064				3,064				1993		1993
Chandler Road Properties		400		3,552				(546	)				3,006				3,006				2004		2004
La Conterra				4,023				1,743			293		6,059				6,059						2006
MISSOURI
*Clay County*
Somerbrook				3,061				(218	)		13		2,856				2,856				2003		2001
*Other*				27,390				(9,284	)		823		18,929				18,929

Total Entitled, Developed, and Under Development Projects	$	15,892	$	279,284	$	—	$	73,185		$	9,358	$	361,827	$	—	$	361,827	$	—


			Initial Cost to Company				Costs Capitalized Subsequent to Acquisition					Gross Amount Carried at End of Period
Description	Encumbrances		Land		Buildings & Improvements		Improvements less Cost of Sales and Other			Carrying Costs^(a)		Land & Land Improvements		Buildings & Improvements		Total		Accumulated Depreciation		Date of Construction	Date Acquired
Undeveloped Land and land in entitlement:
CALIFORNIA
*Los Angeles County*
Land In Entitlement Process			$	3,969			$	11,393				$	15,362			$	15,362					1997
GEORGIA
*Bartow County*
Undeveloped Land				4,055				85					4,140				4,140
*Carroll County*
Undeveloped Land				6,619				131					6,750				6,750
Land In Entitlement Process				9,309				2,343					11,652				11,652
*Cherokee County*
Undeveloped Land				3,522				98					3,620				3,620
Land In Entitlement Process				2,400				568					2,968				2,968
*Coweta County*
Undeveloped Land				473				318					791				791
Land In Entitlement Process				2,128				412					2,540				2,540
*Dawson County*
Undeveloped Land				2,394				1,761					4,155				4,155
*Gilmer County*
Undeveloped Land				2,908				22					2,930				2,930
*Lumpkin County*
Undeveloped Land				3,117				4					3,121				3,121
*Paulding County*
Undeveloped Land				1,406				242					1,648				1,648
*Pickens County*
Undeveloped Land				2,400				29					2,429				2,429
TEXAS
*Bexar County*
Undeveloped Land								1,588					1,588				1,588
*Harris County*
Land in Entitlement Process				685				1,141					1,826				1,826
*San Augustine County*
Undeveloped Land				1,610									1,610				1,610
*Other*
Undeveloped Land				9,692				4,114					13,806				13,806
Land in Entitlement Process				3,179				(1,427	)				1,752				1,752

Total Undeveloped Land and land in entitlement	$	—	$	59,866	$	—	$	22,822		$	—	$	82,688	$	—	$	82,688	$	—


			Initial Cost to Company				Costs Capitalized Subsequent to Acquisition					Gross Amount Carried at End of Period
Description	Encumbrance		Land		Buildings & Improvements		Improvements less Cost of Sales and Other			Carrying Costs^(a)		Land & Land Improvements		Buildings & Improvements		Total		Accumulated Depreciation			Date of Construction		Date Acquired
Income Producing Properties:
NORTH CAROLINA
*Mechlanburg County*
East Morehead			$	5,779			$	175				$	5,954			$	5,954							2012
TENNESSEE
*Davidson County*
Westmont				11,546				(124	)				11,422				11,422							2012
TEXAS
*Dallas County*
Cedar Hill				2,267				1,231					3,498				3,498							2011
*Travis County*
Radisson Hotel & Suites		15,400			$	10,603		35,668						$	46,271		46,271	$	(26,279	)
Promesa		18,771		2,872				27,226		$	551		30,649				30,649		(592	)		2006		2006
*Hood County*
Harbor Lakes Golf Club						1,446		1,615							3,061		3,061		(1,349	)		2000		1998

Total Income Producing Properties	$	34,171	$	22,464	$	12,049	$	65,791		$	551	$	51,523	$	49,332	$	100,855	$	(28,220	)

Total	$	50,063	$	361,614	$	12,049	$	161,798		$	9,909	$	496,038	$	49,332	$	545,370	$	(28,220	)

^(a)	We do not capitalize carrying costs until development begins.

^(b)	The acquisition date for this land is not available.

Reconciliation of real estate:


	2012			2011			2010
	(In thousands)
Balance at beginning of year	$	592,322		$	585,090		$	567,229
Amounts capitalized		143,711			66,338			65,024
Amounts retired or adjusted		(190,663	)		(59,106	)		(47,163	)

Balance at close of period	$	545,370		$	592,322		$	585,090

Reconciliation of accumulated depreciation:


	2012			2011			2010
	(In thousands)
Balance at beginning of year	$	(26,955	)	$	(23,438	)	$	(24,417	)
Depreciation expense		(3,640	)		(3,547	)		(2,582	)
Amounts retired or adjusted		2,375			30			3,561

Balance at close of period	$	(28,220	)	$	(26,955	)	$	(23,438	)