Exhibit 99.1
NEWS
RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Chris L. Nines
(512) 433-5210
FORESTAR GROUP INC. REPORTS
THIRD QUARTER 2011 RESULTS
Well Positioned To Benefit from Increasing Oil Production and Declining Finished Lot Inventories in Texas Markets
“During third quarter, a substantial increase in our share of oil production generated the highest quarterly royalty revenues over the last two years, as we began to realize the benefit of increased oil production related to 2,800 acres in the Upper Wilcox formation located in Beauregard Parish, Louisiana. These wells are expected to significantly increase our reserves, a driver of future cash flow and earnings growth. In addition, our increased residential lot sales activity reflects declining finished lot inventories and relatively stable demand in the major markets of Texas. In addition, we sold 57,000 acres of timberland for approximately $87 million, generating a gain on sale of almost $62 million, essentially completing the timberland sales portion of our near-term strategic initiatives,” said Jim DeCosmo, president and chief executive officer of Forestar Group.
Third Quarter Significant Highlights
Minerals — Oil & Gas
| | • | | Nine new oil and gas wells completed; 510 active wells producing oil and natural gas operated by exploration and production lessees at quarter-end |
| |
| | • | | Oil production up over 50% compared with third quarter 2010 and second quarter 2011 |
Real Estate
| | • | | Sold 311 finished residential lots, a 66% increase compared with third quarter 2010 and a 10% increase compared with second quarter 2011 — Over 1,500 lots under option contracts |
| |
| | • | | Sold 25 acres of raw entitled land for $1.9 million, representing the remaining 80 undeveloped lots in a residential community located near Dallas, Texas |
Strategic Initiatives
| | • | | Sold 50,000 acres of timberland in Georgia and Alabama to Plum Creek for $75 million |
| |
| | • | | Sold 7,000 acres of timberland in Texas to The Conservation Fund for $12 million |
AUSTIN, TEXAS, November 2, 2011—Forestar Group Inc. (NYSE: FOR) today reported third quarter 2011 net income of approximately $36.4 million, or $1.02 per diluted share, compared with third quarter 2010 net income of $8.9 million, or $0.25 per diluted share outstanding. Third quarter 2011 result include a gain of $1.12 per diluted share, after-tax, from the sale of about 57,000 acres of timberland for approximately $87 million.
Forestar manages its operations through three business segments: Real Estate, Mineral Resources and Fiber Resources.
MINERAL RESOURCES
| • | | Nine new wells completed by exploration and production lessees, 510 active wells, up 19 compared with third quarter 2010 |
| • | | Oil production up over 50% compared with third quarter 2010 and second quarter 2011 |
| • | | Leased 380 net mineral acres in Louisiana and Texas |
| • | | Over 67,000 net mineral acres put in play during 2011 through leases, seismic and exploration agreements, targeting oil and natural gas liquid opportunities |
Segment Financial Results:
| | | | | | | | | | | | | |
| ($ in millions) | | 3Q 2011 | | 3Q 2010 | | 2Q 2011 |
| Segment Revenues | | $ | 5.9 | | | $ | 6.7 | | | $ | 4.6 | |
| Segment Earnings | | $ | 3.6 | | | $ | 6.2 | | | $ | 3.1 | |
Mineral resources segment earnings declined in third quarter 2011 compared with third quarter 2010 principally due to lower lease revenues and increased costs associated with developing our water initiatives as a result of our acquisition of a water resources company in fourth quarter 2010. Segment earnings increased in third quarter 2011 compared with second quarter 2011 primarily due to increased royalties associated with a 50% increase in oil production.
REAL ESTATE
| • | | Sold 311 finished residential lots, a 66% increase compared with third quarter 2010 and a 10% increase compared with second quarter 2011 — Over 1,500 lots under option contracts |
| • | | Sold 80 paper lots for $1.9 million, representing the remaining 25 acres of undeveloped entitled land in a residential community located near Dallas, Texas |
| • | | Sold 550 acres of undeveloped land for $2,800 per acre |
| • | | Acquired 180 fully developed lots for $9 million in a master-planned, mixed-use community located in Houston, Texas — including the right to receive about $4 million in reimbursements through a development agreement with the City of Houston |
| • | | Acquired two multifamily development sites for $9 million — located in Austin and Dallas |
Segment Financial Results:
| | | | | | | | | | | | | |
| ($ in millions) | | 3Q 2011 | | 3Q 2010 | | 2Q 2011 |
| Segment Revenues | | $ | 19.1 | | | $ | 15.1 | | | $ | 19.6 | |
| Segment Earnings (Loss) | | | ($4.3 | ) | | | ($1.9 | ) | | $ | 1.0 | |
Third quarter 2011 real estate segment earnings were down compared with third quarter 2010 and second quarter 2011 due to $3.4 million in charges principally related to environmental remediation activities at our San Joaquin River project located near Antioch, California.
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FIBER RESOURCES
| • | | Sold over 108,000 tons of fiber |
| • | | Recreational leasing activity remains strong, almost 99% of available land leased |
Segment Financial Results:
| | | | | | | | | | | | | |
| ($ in millions) | | 3Q 2011 | | 3Q 2010 | | 2Q 2011 |
| Segment Revenues | | $ | 1.3 | | | $ | 2.2 | | | $ | 1.3 | |
| Segment Earnings | | $ | 0.5 | | | $ | 1.4 | | | $ | 0.7 | |
Third quarter 2011 fiber resources segment earnings declined compared with third quarter 2010 principally due to reduced harvest volumes associated with the sale of 30,000 acres of timberland during 2010 and postponing harvest plans on acres previously held for sale. Recreational leasing activity remained strong during the quarter, with almost 99% of available land leased for recreation. Second quarter 2011 fiber resources segment earnings include a $0.2 million gain on the termination of a timber lease.
OUTLOOK
“Higher oil prices have increased exploration and production in Louisiana, creating additional opportunities to deliver value through increasing royalty income and working interests. Since first quarter 2011, we have elected to take working interests in three oil wells in Beauregard Parish, Louisiana. These working interests provide Forestar with an additional low-cost, low-risk opportunity to realize the greatest value from every acre by securing a greater interest in oil and gas production.
“Natural gas prices have remained soft during 2011, principally due to increased production and high levels of inventory. As a result, we have experienced lower demand for mineral leases as operators focus primarily on drilling wells to hold existing leases. Longer-term, we are bullish on the outlook for natural gas as there are abundant domestic supplies which reduces Middle Eastern geopolitical risk, natural gas is currently much cheaper than oil on an energy equivalent basis, it is a cleaner burning fuel compared with oil and coal and demand will benefit from continued population growth and increased economic activity.
“We continue to see improving housing fundamentals in our Texas markets, driven by continued tightening of finished residential lot inventories and relatively stable market demand. In addition, we remain confident that underlying fundamental demand for single and multifamily housing will improve as markets recover from the economic downturn.
“During third quarter 2011 we sold 57,000 acres of timberland, essentially completing the sale of 175,000 acres of timberland associated with our near-term strategic initiatives. In addition, excluding $26.5 million of non-recourse debt associated with the acquisition of a multifamily project during fourth quarter 2010, we have reduced debt over $150 million since first quarter 2009, and repurchased 1.2 million shares of our common stock since second quarter 2010. Through the successful execution of our strategic initiatives, we have transformed our balance sheet, significantly improving liquidity and financial flexibility, positioning the company to maximize long-term value for shareholders,” concluded Mr. DeCosmo.
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The Company will host a conference call on November 2, 2011 at 10:00 am ET to discuss results of third quarter 2011. 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 1-866-804-6927 at least 15 minutes prior to the start of the meeting. Those wishing to access the call from outside North America should dial 1-857-350-1673. 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 72520808.
About Forestar Group
Forestar Group Inc. operates in three business segments: real estate, mineral resources and fiber resources. At the end of the third quarter 2011, the real estate segment owns directly or through ventures over 159,000 acres of real estate located in nine states and twelve markets in the U.S. The real estate segment has 16 real estate projects representing approximately 27,600 acres currently in the entitlement process, and 75 entitled, developed and under development projects in seven states and eleven markets encompassing almost 16,000 acres, comprised of approximately 28,000 residential lots and over 2,300 commercial acres. The mineral resources segment manages about 602,000 net acres of oil and gas mineral interests located principally in Texas, Louisiana, Alabama, and Georgia. Also included in the mineral resources segment is a 45% nonparticipating royalty interest in groundwater produced or withdrawn for commercial purposes from approximately 1.4 million acres in Texas, Louisiana, Georgia and Alabama and about 17,800 acres of groundwater leases in central Texas. The fiber resources segment includes the sale of wood fiber and management of our recreational leases. Forestar’s address on the World Wide Web iswww.forestargroup.com.
Forward-looking Statements
This release contains “forward-looking statements” within the meaning of the federal securities laws. These statements reflect management’s current views with respect to future events and are subject to risk and uncertainties. We note that a variety of factors and uncertainties could cause our actual results to differ significantly from the results discussed in the forward-looking statements. Factors and uncertainties that might cause such differences include, but are not limited to: general economic, market, or business conditions; the opportunities (or lack thereof) that may be presented to us and that we may pursue; fluctuations in costs and expenses including development costs; demand for new housing, including impacts from mortgage credit availability; lengthy and uncertain entitlement processes; cyclicality of our businesses; accuracy of accounting assumptions; competitive actions by other companies; changes in laws or regulations; and other factors, many of which are beyond our control. Except as required by law, we expressly disclaim any obligation to publicly revise any forward-looking statements contained in this news release to reflect the occurrence of events after the date of this news release.
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FORESTAR GROUP INC.
(UNAUDITED)
Business Segments
| | | | | | | | | | | | | | | | | |
| | | Third Quarter | | | First Nine Months | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
| | | (In thousands, | | | (In thousands, | |
| | | except per share) | | | except per share) | |
| Revenues | | | | | | | | | | | | | | | | |
| Real estate | | $ | 19,060 | | | $ | 15,139 | | | $ | 59,814 | | | $ | 53,936 | |
| Mineral resources | | | 5,871 | | | | 6,654 | | | | 17,784 | | | | 18,387 | |
| Fiber resources | | | 1,310 | | | | 2,220 | | | | 3,968 | | | | 6,185 | |
| | | | | |
| Total revenues | | $ | 26,241 | | | $ | 24,013 | | | $ | 81,566 | | | $ | 78,508 | |
| | | | | |
| | | | | | | | | | | | | | | | | |
| Segment earnings (loss) | | | | | | | | | | | | | | | | |
| Real estate | | $ | (4,266 | ) | | $ | (1,883 | ) | | $ | (684 | ) | | $ | 883 | |
| Mineral resources | | | 3,592 | | | | 6,196 | | | | 12,292 | | | | 16,640 | |
| Fiber resources | | | 446 | | | | 1,372 | | | | 1,790 | | | | 3,900 | |
| | | | | |
| Total segment earnings (loss) | | | (228 | ) | | | 5,685 | | | | 13,398 | | | | 21,423 | |
| | | | | | | | | | | | | | | | | |
| Items not allocated to segments | | | | | | | | | | | | | | | | |
| General and administrative expense (a) | | | (4,827 | ) | | | (3,860 | ) | | | (15,824 | ) | | | (13,438 | ) |
| Share-based compensation expense | | | 3,553 | | | | (1,817 | ) | | | (399 | ) | | | (7,370 | ) |
| Gain on sale of assets | | | 61,784 | | | | 15,441 | | | | 61,784 | | | | 15,441 | |
| Interest expense | | | (4,271 | ) | | | (3,913 | ) | | | (12,933 | ) | | | (12,562 | ) |
| Other non-operating income | | | 26 | | | | 246 | | | | 77 | | | | 690 | |
| | | | | |
| Income before taxes | | | 56,037 | | | | 11,782 | | | | 46,103 | | | | 4,184 | |
| Income tax expense | | | (19,609 | ) | | | (2,860 | ) | | | (16,069 | ) | | | (1,507 | ) |
| | | | | |
| Net income attributable to Forestar Group Inc. | | $ | 36,428 | | | $ | 8,922 | | | $ | 30,034 | | | $ | 2,677 | |
| | | | | |
| | | | | | | | | | | | | | | | | |
| Net income per common share: | | | | | | | | | | | | | | | | |
| Basic | | $ | 1.03 | | | $ | 0.25 | | | $ | 0.85 | | | $ | 0.07 | |
| Diluted | | $ | 1.02 | | | $ | 0.25 | | | $ | 0.84 | | | $ | 0.07 | |
| | | | | | | | | | | | | | | | | |
| Weighted average common shares outstanding: | | | | | | | | | | | | | | | | |
| Basic | | | 35.5 | | | | 35.9 | | | | 35.5 | | | | 36.1 | |
| Diluted | | | 35.8 | | | | 36.4 | | | | 35.9 | | | | 36.6 | |
| | | | | | | | | |
| | | Third Quarter | |
| Supplemental Financial Information: | | 2011 | | | 2010 | |
| | | (In thousands) | |
| Cash & Cash Equivalents | | $ | 29,121 | | | $ | 4,483 | |
| Borrowings under credit facility | | $ | 130,000 | | | $ | 144,000 | |
| Other debt (b) | | | 93,697 | | | | 73,566 | |
| | | |
| Total debt | | $ | 223,697 | | | $ | 217,566 | |
| | | |
| | |
| (a) | | General and administrative expenses include $0.5 million and $3.2 million for third quarter and first nine months 2011 paid to outside advisors related to private debt offerings which were withdrawn due to the deterioration in terms available to us in the capital markets. |
| |
| (b) | | Consists principally of consolidated venture non-recourse debt. |
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FORESTAR GROUP INC.
MINERAL RESOURCES SEGMENT
PERFORMANCE METRICS
| | | | | | | | | | | | | | | | | |
| | | Third Quarter | | First Nine Months |
| MINERAL RESOURCES | | 2011 | | 2010 | | 2011 | | 2010 |
Leasing Activity | | | | | | | | | | | | | | | | |
| Acres Leased | | | 380 | | | | 9,600 | | | | 7,700 | | | | 11,700 | |
| Average Bonus / Acre | | $ | 265 | | | $ | 274 | | | $ | 288 | | | $ | 495 | |
| Delay Rental Revenues | | $ | 252,800 | | | $ | 890,000 | | | $ | 479,300 | | | $ | 2,080,000 | |
Royalties1 | | | | | | | | | | | | | | | | |
| Natural Gas Production (MMcf) | | | 408.0 | | | | 436.6 | | | | 1,248.4 | | | | 1,291.6 | |
| Average Natural Gas Price ($ / Mcf) | | $ | 4.27 | | | $ | 4.11 | | | $ | 3.96 | | | $ | 4.38 | |
| Oil Production (Barrels) | | | 42,300 | | | | 27,700 | | | | 102,200 | | | | 87,600 | |
| Average Oil Price ($ / Barrel) | | $ | 97.83 | | | $ | 71.41 | | | $ | 94.23 | | | $ | 72.53 | |
MMcfe Production2 | | | 662.1 | | | | 602.8 | | | | 1,861.6 | | | | 1,817.3 | |
| Average Price ($ / MMcfe) | | $ | 8.89 | | | $ | 6.26 | | | $ | 7.83 | | | $ | 6.61 | |
Well Activity3 | | | | | | | | | | | | | | | | |
| Net Acres Held By Production | | | 30,300 | | | | 29,500 | | | | 30,300 | | | | 29,500 | |
| Wells Drilled | | | 9 | | | | 9 | | | | 16 | | | | 19 | |
| Active Wells | | | 510 | | | | 491 | | | | 510 | | | | 491 | |
| | |
| 1 | | Includes our share of venture activity. Forestar’s share of venture natural gas production activity is 112 MMcf and 398 MMcf in third quarter and first nine months 2011, and 138 MMcf and 346 MMcf in third quarter and first nine months 2010. Forestar owns a 50% interest in this venture. |
| |
| 2 | | MMcfe — Million Cubic Feet Equivalent (converting oil to natural gas at 6 Mcfe / Bbl) |
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| 3 | | Wells are owned and operated by third-party lessees / operators |
THIRD QUARTER 2011
MINERAL RESOURCES PIPELINE1
Forestar’s mineral resources segment includes approximately 602,000 net mineral acres principally located in Texas, Louisiana, Alabama and Georgia.
| | | | | | | | | | | | | | | | | |
| | | Available | | | | | | Held by | | |
| State | | for Lease | | Leased | | Production | | Total2 |
| Texas | | | 191,000 | | | | 36,000 | | | | 25,000 | | | | 252,000 | |
| Louisiana | | | 116,000 | | | | 23,000 | | | | 5,000 | | | | 144,000 | |
| Georgia | | | 164,000 | | | | — | | | | — | | | | 164,000 | |
| Alabama | | | 40,000 | | | | — | | | | — | | | | 40,000 | |
| California | | | 1,000 | | | | — | | | | — | | | | 1,000 | |
| Indiana | | | 1,000 | | | | — | | | | — | | | | 1,000 | |
| | | | | | | | | | | | | | | | | |
| Total | | | 513,000 | | | | 59,000 | | | | 30,000 | | | | 602,000 | |
| | |
| 1 | | Includes ventures |
| |
| 2 | | Excludes 477 net mineral acres located in Colorado |
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FORESTAR GROUP INC.
FIBER RESOURCES SEGMENT
PERFORMANCE METRICS
| | | | | | | | | | | | | | | | | |
| | | Third Quarter | | First Nine Months |
| FIBER RESOURCES | | 2011 | | 2010 | | 2011 | | 2010 |
Fiber Sales * | | | | | | | | | | | | | | | | |
| Pulpwood Tons Sold | | | 85,800 | | | | 116,900 | | | | 222,100 | | | | 295,600 | |
| Average Pulpwood Price / Ton | | $ | 7.57 | | | $ | 9.41 | | | $ | 8.57 | | | $ | 10.31 | |
| Sawtimber Tons Sold | | | 22,900 | | | | 37,500 | | | | 51,200 | | | | 90,900 | |
| Average Sawtimber Price / Ton | | $ | 14.33 | | | $ | 17.79 | | | $ | 15.47 | | | $ | 19.23 | |
| Total Tons Sold | | | 108,700 | | | | 154,400 | | | | 273,300 | | | | 386,500 | |
| Average Price / Ton | | $ | 8.99 | | | $ | 11.45 | | | $ | 9.86 | | | $ | 12.41 | |
Recreational Activity | | | | | | | | | | | | | | | | |
| Average Acres Leased | | | 164,600 | | | | 205,900 | | | | 185,300 | | | | 209,900 | |
| Average Lease Rate / Acre | | $ | 8.28 | | | $ | 8.60 | | | $ | 8.84 | | | $ | 8.33 | |
| | |
| * | | The majority of our fiber sales were to Temple-Inland Inc. at market prices. |
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FORESTAR GROUP INC.
REAL ESTATE SEGMENT
PERFORMANCE METRICS
| | | | | | | | | | | | | | | | | |
| | | Third Quarter | | First Nine Months |
| REAL ESTATE | | 2011 | | 2010 | | 2011 | | 2010 |
Owned, Consolidated & Equity Method Ventures: | | | | | | | | | | | | | | | | |
| Residential Lots Sold | | | 311 | | | | 187 | | | | 808 | | | | 617 | |
| Revenue per Lot Sold | | $ | 46,200 | | | $ | 48,800 | | | $ | 48,900 | | | $ | 49,600 | |
| Commercial Acres Sold | | | — | | | | 0.4 | | | | 24.0 | | | | 16.7 | |
| Revenue per Commercial Acre Sold | | | — | | | $ | 623,400 | | | $ | 157,900 | | | $ | 84,400 | |
| Undeveloped Acres Sold | | | 550 | | | | 1,150 | | | | 3,960 | | | | 4,700 | |
| Revenue per Acre Sold | | $ | 2,800 | | | $ | 3,800 | | | $ | 2,600 | | | $ | 3,700 | |
Owned & Consolidated Ventures: | | | | | | | | | | | | | | | | |
| Residential Lots Sold | | | 155 | | | | 105 | | | | 458 | | | | 356 | |
| Revenue per Lot Sold | | $ | 52,200 | | | $ | 52,300 | | | $ | 55,300 | | | $ | 54,100 | |
| Commercial Acres Sold | | | — | | | | — | | | | 4.0 | | | | 1.3 | |
| Revenue per Commercial Acre Sold | | | — | | | | — | | | $ | 185,300 | | | $ | 121,700 | |
| Undeveloped Acres Sold | | | 550 | | | | 1,150 | | | | 3,940 | | | | 4,700 | |
| Revenue per Acre Sold | | $ | 2,800 | | | $ | 3,800 | | | $ | 2,600 | | | $ | 3,700 | |
Ventures Accounted For Using the Equity Method: | | | | | | | | | | | | | | | | |
| Residential Lots Sold | | | 156 | | | | 82 | | | | 350 | | | | 261 | |
| Revenue per Lot Sold | | $ | 40,200 | | | $ | 44,200 | | | $ | 40,600 | | | $ | 43,400 | |
| Commercial Acres Sold | | | — | | | | 0.4 | | | | 20.0 | | | | 15.4 | |
| Revenue per Commercial Acre Sold | | | — | | | $ | 623,400 | | | $ | 152,500 | | | $ | 81,300 | |
| Undeveloped Acres Sold | | | — | | | | — | | | | 20 | | | | — | |
| Revenue per Acre Sold | | | — | | | | — | | | $ | 3,000 | | | | — | |
THIRD QUARTER 2011
REAL ESTATE PIPELINE
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | In | | | | | | | | |
| | | | | | | Entitlement | | | | | | Developed & | | Total |
| Real Estate | | Undeveloped | | Process | | Entitled | | Under Development | | Acres* |
Undeveloped Land | | | | | | | | | | | | | | | | | | | | |
| Owned | | | 108,869 | | | | | | | | | | | | | | | | | |
| Ventures | | | 6,958 | | | | | | | | | | | | | | | | 115,827 | |
| | | | | | | | | | | | | | | | | | | | | |
Residential | | | | | | | | | | | | | | | | | | | | |
| Owned | | | | | | | 24,867 | | | | 8,211 | | | | 571 | | | | | |
| Ventures | | | | | | | | | | | 4,366 | | | | 496 | | | | 38,511 | |
| | | | | | | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | | | |
| Owned | | | | | | | 2,723 | | | | 1,118 | | | | 550 | | | | | |
| Ventures | | | | | | | | | | | 454 | | | | 224 | | | | 5,069 | |
| | | | | | | | | | | | | | | | | | | | | |
Total Acres | | | 115,827 | | | | 27,590 | | | | 14,149 | | | | 1,842 | | | | 159,407 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Estimated Residential Lots | | | | | | | | | | | 24,793 | | | | 3,181 | | | | 27,974 | |
* 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.
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FORESTAR GROUP INC.
PROJECTS IN ENTITLEMENT
A summary of projects in the entitlement process (a) at third quarter-end 2011 follows:
| | | | | |
| | | | | Project |
| Project | | County | | Acres(b) |
California | | | | |
| Hidden Creek Estates | | Los Angeles | | 700 |
| Terrace at Hidden Hills | | Los Angeles | | 30 |
| | | | | |
Georgia | | | | |
| Ball Ground | | Cherokee | | 500 |
| Crossing | | Coweta | | 230 |
| Fincher Road | | Cherokee | | 3,890 |
| Fox Hall | | Coweta | | 960 |
| Garland Mountain | | Cherokee/Bartow | | 350 |
| Home Place | | Coweta | | 1,510 |
| Martin’s Bridge | | Banks | | 970 |
| Mill Creek | | Coweta | | 770 |
| Serenity | | Carroll | | 440 |
| Waleska | | Cherokee | | 100 |
| Wolf Creek | | Carroll/Douglas | | 12,230 |
| Yellow Creek | | Cherokee | | 1,060 |
| | | | | |
Texas | | | | |
| Lake Houston | | Harris/Liberty | | 3,700 |
| San Jacinto | | Montgomery | | 150 |
| | | | | |
| | | | | |
Total | | | | 27,590 |
| | | | | |
| (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 our entitled,(a) developed & under development projects at third quarter-end 2011 follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Residential Lots(c) | | Commercial Acres(d) |
| | | | | Interest | | Lots Sold Since | | Lots | | Acres Sold Since | | Acres |
| Project | | County | | Owned(b) | | Inception | | Remaining | | Inception | | Remaining |
Projects we own | | | | | | | | | | | | | | | | | | | | |
California | | | | | | | | | | | | | | | | | | | | |
| San Joaquin River | | Contra Costa/
Sacramento | | 100% | | | — | | | | — | | | | — | | | | 288 | |
| | | | | | | | | | | | | | | | | | | | | |
Colorado | | | | | | | | | | | | | | | | | | | | |
| Buffalo Highlands | | Weld | | 100% | | | — | | | | 164 | | | | — | | | | — | |
| Johnstown Farms | | Weld | | 100% | | | 115 | | | | 497 | | | | 2 | | | | 7 | |
| Pinery West | | Douglas | | 100% | | | — | | | | — | | | | — | | | | 115 | |
| Stonebraker | | Weld | | 100% | | | — | | | | 603 | | | | — | | | | 13 | |
Texas | | | | | | | | | | | | | | | | | | | | |
| Arrowhead Ranch | | Hays | | 100% | | | — | | | | 259 | | | | — | | | | 6 | |
| Barrington Kingwood | | Harris | | 100% | | | — | | | | 180 | | | | — | | | | — | |
| Caruth Lakes | | Rockwall | | 100% | | | 362 | | | | 287 | | | | — | | | | — | |
| Cibolo Canyons | | Bexar | | 100% | | | 694 | | | | 721 | | | | 68 | | | | 153 | |
| Harbor Lakes | | Hood | | 100% | | | 202 | | | | 247 | | | | 2 | | | | 12 | |
| Hunter’s Crossing | | Bastrop | | 100% | | | 378 | | | | 112 | | | | 38 | | | | 71 | |
| La Conterra | | Williamson | | 100% | | | 78 | | | | 422 | | | | — | | | | 58 | |
| Maxwell Creek | | Collin | | 100% | | | 719 | | | | 280 | | | | 10 | | | | — | |
| Oak Creek Estates | | Comal | | 100% | | | 90 | | | | 557 | | | | 13 | | | | — | |
| The Colony | | Bastrop | | 100% | | | 418 | | | | 729 | | | | 22 | | | | 31 | |
| The Gables at North Hill | | Collin | | 100% | | | 203 | | | | — | | | | — | | | | — | |
| The Preserve at Pecan Creek | | Denton | | 100% | | | 329 | | | | 465 | | | | — | | | | 7 | |
| The Ridge at Ribelin Ranch | | Travis | | 100% | | | — | | | | — | | | | 195 | | | | — | |
| Westside at Buttercup Creek | | Williamson | | 100% | | | 1,369 | | | | 145 | | | | 66 | | | | — | |
| Other projects (9) | | Various | | 100% | | | 1,557 | | | | 16 | | | | 197 | | | | 24 | |
Georgia | | | | | | | | | | | | | | | | | | | | |
| Villages of Burt Creek | | Dawson | | 100% | | | — | | | | 1,715 | | | | — | | | | 57 | |
| Towne West | | Bartow | | 100% | | | — | | | | 2,674 | | | | — | | | | 121 | |
| Other projects (13) | | Various | | 100% | | | — | | | | 2,834 | | | | — | | | | 705 | |
Missouri and Utah | | | | | | | | | | | | | | | | | | | | |
| Other projects (2) | | Various | | 100% | | | 466 | | | | 88 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | 6,980 | | | | 12,995 | | | | 613 | | | | 1,668 | |
Projects in entities we consolidate | | | | | | | | | | | | | | | | | | | | |
Texas | | | | | | | | | | | | | | | | | | | | |
| City Park | | Harris | | 75% | | | 1,176 | | | | 135 | | | | 50 | | | | 115 | |
| Lantana | | Denton | | 55%(e) | | | 723 | | | | 1,537 | | | | — | | | | — | |
| Light Farms | | Collin | | 65% | | | — | | | | 2,501 | | | | — | | | | — | |
| Stoney Creek | | Dallas | | 90% | | | 110 | | | | 644 | | | | — | | | | — | |
| Timber Creek | | Collin | | 88% | | | — | | | | 614 | | | | — | | | | — | |
| Other projects (4) | | Various | | Various | | | 710 | | | | 253 | | | | 26 | | | | 25 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | 2,719 | | | | 5,684 | | | | 76 | | | | 140 | |
| | | | | | | | | | | | | | | | | | | | | |
Total owned and consolidated
| | | | | | | 9,699 | | | | 18,679 | | | | 689 | | | | 1,808 | |
Projects in ventures that we account for using the equity method
Georgia | | | | | | | | | | | | | | | | |
| Seven Hills | | Paulding | | 50% | | | 641 | | | | 452 | | | | 26 | | | | 113 | |
| The Georgian | | Paulding | | 38% | | | 289 | | | | 1,095 | | | | — | | | | — | |
| Other projects (3) | | Various | | Various | | | 1,710 | | | | 77 | | | | 3 | | | | — | |
Texas | | | | | | | | | | | | | | | | | | | | |
| Bar C Ranch | | Tarrant | | 50% | | | 269 | | | | 930 | | | | — | | | | — | |
| Entrada | | Travis | | 50% | | | — | | | | 821 | | | | — | | | | 3 | |
| Fannin Farms West | | Tarrant | | 50% | | | 323 | | | | 58 | | | | — | | | | 15 | |
| Harper’s Preserve | | Montgomery | | 50% | | | 42 | | | | 1,683 | | | | — | | | | 72 | |
| Lantana | | Denton | | Various(e) | | | 1,438 | | | | 94 | | | | 14 | | | | 44 | |
| Long Meadow Farms | | Fort Bend | | 19% | | | 838 | | | | 1,245 | | | | 107 | | | | 113 | |
| Southern Trails | | Brazoria | | 40% | | | 475 | | | | 552 | | | | — | | | | — | |
| Stonewall Estates | | Bexar | | 25% | | | 280 | | | | 108 | | | | — | | | | — | |
| Summer Creek Ranch | | Tarrant | | 50% | | | 806 | | | | 468 | | | | — | | | | 71 | |
| Summer Lakes | | Fort Bend | | 50% | | | 382 | | | | 748 | | | | 56 | | | | — | |
| Village Park | | Collin | | 50% | | | 368 | | | | 203 | | | | 3 | | | | 2 | |
| Waterford Park | | Fort Bend | | 50% | | | — | | | | 210 | | | | — | | | | 90 | |
| Other projects (2) | | Various | | Various | | | 298 | | | | 226 | | | | — | | | | 15 | |
Florida | | | | | | | | | | | | | | | | | | | | |
| Other projects (3) | | Various | | Various | | | 520 | | | | 325 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Total in ventures | | | | | | | 8,679 | | | | 9,295 | | | | 209 | | | | 538 | |
| | | | | | | | | | | | | | | | | | | | | |
Combined Total | | | | | | | 18,378 | | | | 27,974 | | | | 898 | | | | 2,346 | |
| | | | | | | | | | | | | | | | | | | | | |
| | (a) | | A project is deemed entitled when all major discretionary governmental land-use approvals have been received. Some projects may require additional permits and/or non-governmental authorizations for development. |
| |
| | (b) | | Interest owned reflects our net equity interest in the project, whether owned directly or indirectly. There are some projects that have multiple ownership structures within them. Accordingly, portions of these projects may appear as owned, consolidated and/or accounted for using the equity method. |
| |
| | (c) | | Lots are for the total project, regardless of our ownership interest. Lots remaining represent vacant developed lots, lots under development and future planned lots and are subject to change based on business plan revisions. |
| |
| | (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. |
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| | (e) | | The Lantana project consists of a series of 22 partnerships in which our voting interests range from 25% to 55%. We account for three of these partnerships using the equity method and we consolidate the remaining partnerships. |
A summary of our significant commercial and income producing properties at third quarter-end 2011 follows:
| | | | | | | | | | | | | | | |
| | | | | | | Interest | | | | | | |
| Project | | County | | Market | | Owned(a) | | Type | | Acres | | Description |
| Broadstone Memorial | | Harris | | Houston | | 100% | | Multifamily | | | 9 | | | 401 unit luxury apartment |
| Radisson Hotel | | Travis | | Austin | | 100% | | Hotel | | | 2 | | | 413 guest rooms and suites |
| Palisades West | | Travis | | Austin | | 25% | | Office | | | 22 | | | 375,000 square feet |
| Las Brisas | | Williamson | | Austin | | 59% | | Multifamily | | | 30 | | | 414 unit luxury apartment |
Promesa(b) | | Travis | | Austin | | 100% | | Multifamily | | | 16 | | | 289 unit luxury apartment
(construction in progress) |
| (a) | | Interest owned reflects our total equity interest in the project, whether owned directly or indirectly. |
| |
| (b) | | Formerly marketed as the Ridge at Ribelin Ranch. |
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