EXHIBIT 99.1
NEWS
RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Chris L. Nines
(512) 433-5210
FORESTAR REAL ESTATE GROUP INC.
REPORTS FIRST QUARTER 2008 RESULTS
AUSTIN, TEXAS, May 7, 2008—Forestar Real Estate Group Inc. (NYSE: FOR) today reported a first quarter 2008 net loss of ($0.2) million, or ($0.01) per basic share, compared with first quarter 2007 net income of $0.6 million, or $0.02 per diluted share outstanding.
In first quarter 2008, we changed our reportable segments to reflect our post-spin management of the assets and liabilities transferred to us from Temple-Inland. All prior period segment information has been reclassified to conform to the current presentation. We manage our operations through three business segments:
| | § | | Real estate, |
| |
| | § | | Mineral resources, and |
| |
| | § | | Fiber resources |
Real estate secures entitlements and develops infrastructure on our lands, primarily for single-family residential and mixed-use communities, and manages our undeveloped land and commercial properties. Our real estate segment includes about 372,000 acres of land owned directly or through ventures located in ten states and thirteen markets. Mineral resources include our 622,000 net acres of oil and gas mineral interests located in Texas, Louisiana, Alabama and Georgia. Fiber resources includes the sale of wood fiber, primarily in Georgia, and manages our recreational leases.
REAL ESTATE SEGMENT
Real Estate
| | | | | | | | | | | | | |
| | | 1st Qtr. | | 1st Qtr. | | 4th Qtr. |
| Segment Earnings | | 2008 | | 2007 | | 2007 |
| ($ in Millions) | | $ | 3.5 | | | $ | 3.7 | | | | ($0.2 | ) |
Fourth quarter 2007 segment earnings were negatively impacted by $3.9 million impairment expense principally associated with a commercial golf club operation in Granbury, Texas.
Sales Activity
| | | | | | | | | | | | | | | | | |
| | | Q1 2008 | | Q1 2007 |
| | | Sales | | Price | | Sales | | Price |
| Undeveloped Land* | | | 1,349 | acres | | $ | 4,600 | / acre | | | 268 | acres | | $ | 5,600 | / acre |
| Residential Lots* | | | 388 | lots | | $ | 46,200 | / lot | | | 485 | lots | | $ | 55,800 | / lot |
| Commercial Acres* | | | 22 | acres | | $ | 84,700 | / acre | | | 30 | acres | | $ | 294,000 | / acre |
| | |
| * | | Includes venture activity |
During first quarter 2008, 1,349 acres of undeveloped land were sold at an average sales price of approximately $4,600 per acre, including 409 acres sold at approximately $6,100 per acre from the Ironstob venture, which was formed in fourth quarter 2007.
Residential sales activity for all wholly and partially-owned projects during first quarter 2008 included the sale of 388 lots at an average price of approximately $46,200 per lot. First quarter 2008 residential lot sales activity includes the sale of 192 high density lots for approximately $24,300 per lot at our City Park mixed-used venture located near Houston, Texas.
Commercial activity for all wholly and partially-owned projects during first quarter 2008 included the sale of 22 acres at an average price of approximately $84,700 per acre.
Real Estate Pipeline
Forestar’s real estate segment includes about 372,000 acres of land owned directly or through ventures located in ten states and thirteen markets.
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | In Entitlement | | | | | | Developed & Under | | |
| Real Estate | | Undeveloped | | Process | | Entitled | | Development | | Total Acres* |
Undeveloped Land | | | | | | | | | | | | | | | | | | | | |
| Owned | | | 316,629 | | | | | | | | | | | | | | | | 323,992 | |
| Ventures | | | 7,363 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Residential | | | | | | | | | | | | | | | | | | | | |
| Owned | | | | | | | 27,538 | | | | 7,574 | | | | 875 | | | | 43,229 | |
| Ventures | | | | | | | 870 | | | | 4,889 | | | | 1,483 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | | | |
| Owned | | | | | | | 2,662 | | | | 825 | | | | 406 | | | | 4,744 | |
| Ventures | | | | | | | | | | | 570 | | | | 281 | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Acres | | | 323,992 | | | | 31,070 | | | | 13,858 | | | | 3,045 | | | | 371,965 | |
| | | | | | | | | | | | | | | | | | | | | |
| Estimated Residential Lots | | | | | | | | | | | 24,400 | | | | 4,904 | | | | 29,304 | |
| | |
| * | | Total acres excludes Forestar’s 58% ownership interest in the Ironstob, LLC venture which controls approximately 17,000 acres of undeveloped land |
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Entitlement Activity
Forestar has 23 real estate projects representing over 31,000 acres in the entitlement process, including ventures. During first quarter 2008, one project representing almost 420 acres, was entitled, which includes over 120 residential lots, and 260 commercial acres. In addition, during first quarter 2008, almost 2,900 acres were moved into the entitlement process.
Including venture activity, Forestar currently has over 13,800 acres of entitled land, representing approximately 24,400 residential lots and 1,395 commercial acres.
Development Activity
Forestar has 3,045 acres developed and under development owned directly or through ventures, which represent 4,904 lots and 687 commercial acres.
“Forestar is committed to investing in development only where market conditions support sales,” said Jim DeCosmo, president and chief executive officer of Forestar Real Estate Group.
Investment Activity
During first quarter 2008, Forestar did not acquire additional real estate. However, the company invested $20.6 million in development activity in our existing owned and consolidated projects, principally in the major markets of Texas.
“Going forward, we will continue to examine growth opportunities through the acquisition of discounted real estate assets,” said Mr. DeCosmo.
MINERAL RESOURCES SEGMENT
Mineral Resources
| | | | | | | | | | | | | |
| | | 1st Qtr. | | 1st Qtr. | | 4th Qtr. |
| Segment Earnings | | 2008 | | 2007 | | 2007 |
| ($ in Millions) | | $ | 6.5 | | | $ | 3.4 | | | $ | 3.7 | |
Mineral Activity
Forestar owns 622,000 net acres of oil and gas mineral interests in Texas, Louisiana, Alabama and Georgia.
| | | | | | | | | |
| Mineral Value Chain | | Q1 2008 Net Acres | | Q1 2008 Revenues |
| Royalties | | | 25,000 | | | $3.4 million |
| Leased | | | 76,000 | | | $2.9 million |
| Available for Lease* | | | 521,000 | | | | | |
| | | | | | | | | |
| Total | | | 622,000 | | | $6.3 million |
| | |
| * | | Includes approximately 46,000 net acres subject to a lease option. |
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Leasing activity for all wholly-owned and partially-owned minerals during first quarter 2008 included almost 5,300 net mineral acres leased, generating $3.6 million in bonus revenues. First quarter 2008 mineral leases included a 241 net mineral acre lease in a Dallas/Fort Worth real estate venture located in the Barnett Shale natural gas formation for $6,500 per acre.
Forestar received royalties from 339 producing wells owned and operated by third parties on its mineral acres, up from 299 active wells at first quarter 2007. During first quarter 2008, our share of oil and gas production related to our royalty interests was over 19,000 barrels of oil and approximately 256,000 MCF of natural gas.
“Forestar continues to benefit from higher oil and gas prices,” said Mr. DeCosmo.
FIBER RESOURCES SEGMENT
Fiber Resources
| | | | | | | | | | | | | |
| | | 1st Qtr. | | 1st Qtr. | | 4th Qtr. |
| Segment Earnings | | 2008 | | 2007 | | 2007 |
| ($ in Millions) | | $ | 2.8 | | | $ | 0.3 | | | $ | 3.8 | |
First quarter 2008 and fourth quarter 2007 segment earnings include a $1.4 million and $2.2 million gain respectively from the partial termination of a timber lease in connection with the formation and operation of the Ironstob venture.
Fiber Sales Activity
During first quarter 2008 Forestar generated approximately $2.0 million in revenues from the sale of about 0.2 million tons of fiber, the majority of which was sold to Temple-Inland Inc. at market prices.
Comments
In announcing first quarter 2008 results, Mr. DeCosmo said, “Despite challenging market conditions for our real estate segment, we remain committed to maximizing long-term shareholder value through entitlement and development of real estate, maximizing the value of our natural resources, and growing our business. During first quarter 2008 we moved almost 2,900 acres of undeveloped land into the entitlement process. Entitlement activities create significant real estate value and position Forestar to deliver incremental development value when market conditions improve.
“Our mineral resources operation continues to benefit from higher commodity prices, principally oil and gas. During second quarter 2008 we are seeing significant increases in mineral leasing activity in East Texas principally related to the Cotton Valley and James Lime natural gas formations” added Mr. DeCosmo.
The Company will host a conference call on May 7, 2008 at 10:00 am EDT to discuss results of first quarter 2008. The meeting may be accessed through webcast or by conference
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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 1-800-638-5439 at least 15 minutes prior to the start of the meeting. Those wishing to access the call from outside North America should dial 1-617-614-3945. 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 72966709.
About Forestar Real Estate Group
Forestar Real Estate Group Inc. operates in three business segments: real estate, mineral resources and fiber resources. The real estate segment owns directly or through ventures about 372,000 acres of real estate located in 10 states and 13 markets in the U.S. The real estate segment has 23 real estate projects representing over 31,000 acres currently in the entitlement process, and 75 entitled, developed and under development projects in eight states and twelve markets encompassing almost 17,000 acres, comprised of about 29,000 residential lots and approximately 2,000 commercial acres. The mineral resources segment manages about 622,000 net acres of oil and gas mineral interests. The fiber resources segment sells wood fiber from its land primarily located in Georgia, and leases land for recreational uses. 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 REAL ESTATE GROUP INC.
(UNAUDITED)
Business Segments
| | | | | | | | | |
| | | First Quarter |
| | | 2008 | | 2007 |
| | | (In thousands, |
| | | Except per share) |
| Revenues | | | | | | | | |
| Real estate | | $ | 28,443 | | | $ | 27,566 | |
| Mineral resources | | | 6,268 | | | | 3,854 | |
| Fiber resources | | | 2,512 | | | | 3,036 | |
| | | |
| Total revenues | | $ | 37,223 | | | $ | 34,456 | |
| | | | | | | | | |
| Segment earnings | | | | | | | | |
| Real estate | | $ | 3,543 | | | $ | 3,736 | |
| Mineral resources | | | 6,505 | | | | 3,379 | |
| Fiber resources | | | 2,840 | | | | 345 | |
| | | |
| Total segment earnings | | | 12,888 | | | | 7,460 | |
| Expenses not allocated to segments | | | | | | | | |
| General and administrative | | | (5,006 | ) | | | (3,912 | ) |
| Share-based compensation | | | (2,681 | ) | | | (858 | ) |
| Interest expense | | | (5,666 | ) | | | (1,707 | ) |
| Other non-operating income | | | 82 | | | | 60 | |
| | | |
| Income (loss) before taxes | | | (383 | ) | | | 1,043 | |
| Income tax benefit (expense) | | | 145 | | | | (382 | ) |
| | | |
| Net (loss) income | | $ | (238 | ) | | $ | 661 | |
| | | |
| | | | | | | | | |
| Earnings per share — Basic: | | | | | | | | |
| Net (loss) income | | $ | (0.01 | ) | | $ | 0.02 | |
| | | |
| | | | | | | | �� | |
| Average basic shares outstanding | | | 35.5 | | | | 35.4 | |
| | | | | | | | | |
| Supplemental Financial Information | | First Quarter | | | Year End | |
| ($ In thousands) | | 2008 | | | 2007 | |
| Borrowings under credit facility | | $ | 194,300 | | | $ | 175,000 | |
| Other debt* | | | 90,590 | | | | 91,015 | |
| | | | | | | |
| Total Debt | | $ | 284,890 | | | $ | 266,015 | |
| | | | | | | |
| | |
| * | | Consists principally of consolidated venture non-recourse debt. |
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Information about our real estate projects and our ventures for first quarter 2008 follows:
| | | | | | | | | |
| | | First Quarter |
| | | 2008 | | 2007 |
Owned & Consolidated Ventures: | | | | | | | | |
| Entitled, developed and under development land | | | | | | | | |
| Number of projects | | | 54 | | | | 49 | |
| Residential lots remaining | | | 19,985 | | | | 19,881 | |
| Commercial acres remaining | | | 1,385 | | | | 1,277 | |
| Undeveloped land | | | | | | | | |
| Number of projects | | | 21 | | | | 24 | |
| Acres in entitlement process | | | 30,200 | | | | 26,520 | |
| Acres sold | | | 1,349 | | | | 268 | |
| Acres undeveloped | | | 317,865 | | | | 326,001 | |
Ventures accounted for using the equity method: | | | | | | | | |
| Ventures’ lot sales | | | | | | | | |
| Lots sold | | | 64 | | | | 191 | |
| Revenue per lot sold | | $ | 59,242 | | | $ | 56,975 | |
| Ventures’ entitled, developed, and under development land | | | | | | | | |
| Number of projects | | | 21 | | | | 22 | |
| Residential lots remaining | | | 9,319 | | | | 10,099 | |
| Commercial acres remaining | | | 697 | | | | 731 | |
| Ventures’ undeveloped land | | | | | | | | |
| Number of Projects | | | 2 | | | | 2 | |
| Acres in entitlement process | | | 870 | | | | 860 | |
| Acres sold | | | — | | | | — | |
| Acres undeveloped | | | 6,127 | | | | 6,384 | |
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A summary of projects in the entitlement process(a) at first quarter-end 2008 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 | |
| Burt Creek | | Dawson | | | 970 | |
| Corinth Landing | | Coweta | | | 850 | |
| Coweta South Industrial Park | | Coweta | | | 150 | |
| Crossing | | Coweta | | | 230 | |
| Fincher Road | | Cherokee | | | 3,950 | |
| Fox Hall | | Coweta | | | 930 | |
| Garland Mountain | | Cherokee/Bartow | | | 350 | |
| Genesee | | Coweta | | | 720 | |
| Home Place | | Coweta | | | 1,510 | |
| Jackson Park | | Jackson | | | 690 | |
| Lithia Springs | | Haralson | | | 120 | |
| Mill Creek | | Coweta | | | 770 | |
| Serenity | | Carroll | | | 440 | |
| Waleska | | Cherokee | | | 150 | |
| Wolf Creek | | Carroll/Douglas | | | 12,230 | |
| Yellow Creek | | Cherokee | | | 1,060 | |
| | | | | | | |
Texas | | | | | | |
| | | | | | | |
| Lake Houston | | Harris/Liberty | | | 3,700 | |
| San Jacinto | | Montgomery | | | 150 | |
Entrada(c) | | Travis | | | 240 | |
Woodlake Village(c) | | Montgomery | | | 630 | |
| | | | | | | |
| | | | | | | |
Total | | | | | 31,070 | |
| | | | | | | |
| | |
| (a) | | A project is deemed to be in the entitlement process when customary steps necessary for the preparation and submittal of an application, 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. |
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| (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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| (c) | | We own a 50% interest in these projects. |
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A summary of activity within our entitled,(a) developed and under development projects at first quarter-end 2008 follows:
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | Residential Lots(c) | | Commercial Acres(d) |
| | | | | | | Lots Sold | | | | | | Acres Sold | | |
| | | | | Interest | | Since | | Lots | | Since | | Acres |
| Project | | County | | Owned(b) | | Inception | | Remaining | | Inception | | Remaining |
Projects we own | | | | | | | | | | | | | | | | | | | | |
California | | | | | | | | | | | | | | | | | | | | |
| San Joaquin River | | Contra Costa | | 100% | | | — | | | | — | | | | — | | | | 285 | |
Colorado | | | | | | | | | | | | | | | | | | | | |
| Buffalo Highlands | | Weld | | 100% | | | — | | | | 164 | | | | — | | | | — | |
| Johnstown Farms | | Weld | | 100% | | | 115 | | | | 493 | | | | — | | | | 10 | |
| Pinery West | | Douglas | | 100% | | | — | | | | — | | | | — | | | | 115 | |
| Stonebraker | | Weld | | 100% | | | — | | | | 603 | | | | — | | | | 13 | |
| Westlake Highlands | | Jefferson | | 100% | | | — | | | | 21 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
Texas | | | | | | | | | | | | | | | | | | | | |
| Arrowhead Ranch | | Hays | | 100% | | | — | | | | 232 | | | | — | | | | 5 | |
| Caruth Lakes | | Rockwall | | 100% | | | 245 | | | | 404 | | | | — | | | | — | |
| Cibolo Canyons | | Bexar | | 100% | | | 483 | | | | 1,264 | | | | 64 | | | | 81 | |
| Harbor Lakes | | Hood | | 100% | | | 198 | | | | 251 | | | | — | | | | 14 | |
| Harbor Mist | | Calhoun | | 100% | | | — | | | | 1,393 | | | | — | | | | 36 | |
| Hunter’s Crossing | | Bastrop | | 100% | | | 308 | | | | 183 | | | | 23 | | | | 83 | |
| Katy Freeway | | Harris | | 100% | | | — | | | | — | | | | 38 | | | | — | |
| La Conterra | | Williamson | | 100% | | | — | | | | 509 | | | | — | | | | 60 | |
| Maxwell Creek | | Collin | | 100% | | | 609 | | | | 414 | | | | — | | | | — | |
| Oak Creek Estates | | Comal | | 100% | | | — | | | | 648 | | | | 13 | | | | — | |
| The Colony | | Bastrop | | 100% | | | 388 | | | | 1,037 | | | | 22 | | | | 50 | |
| The Gables at North Hill | | Collin | | 100% | | | 193 | | | | 90 | | | | — | | | | — | |
| The Preserve at Pecan Creek | | Denton | | 100% | | | 163 | | | | 656 | | | | — | | | | 9 | |
| The Ridge at Ribelin Ranch | | Travis | | 100% | | | — | | | | — | | | | 179 | | | | 22 | |
| Westside at Buttercup Creek | | Williamson | | 100% | | | 1,254 | | | | 274 | | | | 66 | | | | — | |
| Other projects (9) | | Various | | 100% | | | 2,535 | | | | 126 | | | | 245 | | | | 23 | |
| | | | | | | | | | | | | | | | | | | | | |
Georgia | | | | | | | | | | | | | | | | | | | | |
| Towne West | | Bartow | | 100% | | | — | | | | 2,674 | | | | — | | | | 121 | |
| Other projects (10) | | Various | | 100% | | | — | | | | 1,900 | | | | — | | | | 304 | |
Missouri and Utah | | | | | | | | | | | | | | | | | | | | |
| Other projects (3) | | Various | | 100% | | | 775 | | | | 242 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | 7,266 | | | | 13,578 | | | | 612 | | | | 1,231 | |
| | | | | | | | | | | | | | | | | | | | | |
| Projects in entities we consolidate | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Texas | | | | | | | | | | | | | | | | | | | | |
| City Park | | Harris | | 75% | | | 1,065 | | | | 246 | | | | 50 | | | | 115 | |
| Lantana | | Denton | | 55%(e) | | | 377 | | | | 1,973 | | | | — | | | | — | |
| Light Farms | | Collin | | 65% | | | — | | | | 2,501 | | | | — | | | | — | |
| Stoney Creek | | Dallas | | 90% | | | 36 | | | | 718 | | | | — | | | | — | |
| Timber Creek | | Collin | | 88% | | | — | | | | 654 | | | | — | | | | — | |
| Other projects (5) | | Various | | Various | | | 998 | | | | 315 | | | | 24 | | | | 23 | |
Tennessee | | | | | | | | | | | | | | | | | | | | |
| Youngs Lane | | Davidson | | 60% | | | — | | | | — | | | | — | | | | 16 | |
| | | | | | | |
| | | | | | | | 2,476 | | | | 6,407 | | | | 74 | | | | 154 | |
| | | | | | | | | | | | | | | | | | | | | |
Total owned and consolidated | | | | | | | 9,742 | | | | 19,985 | | | | 686 | | | | 1,385 | |
| Projects in ventures that we account for using the equity method | | | | | | | | | | | | |
Georgia | | | | | | | | | | | | | | | | | | | | |
| Seven Hills | | Paulding | | 50% | | | 629 | | | | 451 | | | | 26 | | | | — | |
| The Georgian | | Paulding | | 38% | | | 287 | | | | 1,098 | | | | — | | | | — | |
| Other projects (5) | | Various | | Various | | | 1,845 | | | | 186 | | | | 3 | | | | — | |
| |
Texas | | | | | | | | | | | | | | | | | | | | |
| Bar C Ranch | | Tarrant | | 50% | | | 176 | | | | 1,005 | | | | — | | | | — | |
| Fannin Farms West | | Tarrant | | 50% | | | 242 | | | | 201 | | | | — | | | | — | |
| Lantana | | Denton | | Various(e) | | | 1,788 | | | | 60 | | | | 3 | | | | 77 | |
| Long Meadow Farms | | Fort Bend | | 19% | | | 600 | | | | 1,506 | | | | 24 | | | | 186 | |
| Southern Trails | | Brazoria | | 40% | | | 275 | | | | 787 | | | | — | | | | — | |
| Stonewall Estates | | Bexar | | 25% | | | 114 | | | | 138 | | | | — | | | | — | |
| Summer Creek Ranch | | Tarrant | | 50% | | | 794 | | | | 1,694 | | | | — | | | | 374 | |
| Summer Lakes | | Fort Bend | | 50% | | | 294 | | | | 850 | | | | 48 | | | | 3 | |
| Village Park | | Collin | | 50% | | | 335 | | | | 234 | | | | — | | | | 5 | |
| Waterford Park | | Fort Bend | | 50% | | | — | | | | 493 | | | | — | | | | 37 | |
| Other projects (2) | | Various | | Various | | | 285 | | | | 244 | | | | — | | | | 15 | |
Florida | | | | | | | | | | | | | | | | | | | | |
| Other projects (3) | | Various | | Various | | | 473 | | | | 372 | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | |
| |
Total in ventures | | | | | | | 8,137 | | | | 9,319 | | | | 104 | | | | 697 | |
| | | | | | | | | | | | | | | | | | | | | |
Combined Total | | | | | | | 17,879 | | | | 29,304 | | | | 790 | | | | 2,082 | |
| | | | | | | | | | | | | | | | | | | | | |
| | |
| (a) | | A project is deemed entitled when all major discretionary land-use approvals have been received. Some projects may require additional permits for development. |
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| (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. |
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| (c) | | Lots are for the total project, regardless of our ownership interest. |
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| (d) | | Commercial acres are for the total project, regardless of our ownership interest and are net developable acres, which may be fewer than the gross acres available in the project. |
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| (e) | | The Lantana project consists of a series of 21 partnerships in which our voting interests range from 25% to 55%. We account for eight of these partnerships using the equity method and we consolidate the remaining partnerships. |
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