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United States

Profile: Forestar Group Inc (FOR)

FOR on New York Consolidated

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17 Jul 2019
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Forestar Group Inc., incorporated on December 28, 2005, is a residential and mixed-use real estate development company. The Company operates through three segments: Real Estate, Mineral resources, and Other. As of December 31, 2016, in its core community development business the Company owned directly or through ventures interests in 50 residential and mixed-use projects consisting of 4,600 acres of real estate located in 10 states and 14 markets. In addition, the Company owns interests in various other assets. As of December 31, 2016, its remaining non-core assets included approximately 523,000 net acres of owned mineral assets located in Texas, Louisiana, Georgia and Alabama, 19,000 acres of timberland and undeveloped land (including mitigation banking), four multifamily assets and approximately 20,000 acres of groundwater leases in central Texas.

Real Estate

In the Company's real estate segment, the Company conducts project planning and management activities related to the acquisition, entitlement, development and sale of real estate, primarily residential and mixed-use communities, which it refers to as community development. The Company owns and manages its projects either directly or through ventures. Its development projects are principally located in the markets of Texas. As of December 31, 2016, it had two real estate projects representing approximately 730 acres in the entitlement process in California, which includes obtaining zoning and access to water, sewer and roads. As of December 31, 2016, it had 50 entitled, developed or under development projects in 10 states and 14 markets encompassing 4,600 acres planned for residential and commercial uses. Its real estate projects in the entitlement process include Hidden Creek Estates and Terrace at Hidden Hills. It develops lots for single-family homes on sites the Company may purchase. It sells residential lots primarily to local, regional and national home builders. As of December 31, 2016, it had 4,600 acres, principally in the markets of Texas, consisting of land planned for approximately 10,200 residential lots and units.

The Company's commercial tracts are developed internally or ventured with commercial developers that specialize in the construction and operation of properties, such as apartments, retail centers or office buildings. The Company also sells land designated for commercial use to regional and local commercial developers. As of December 31, 2016, it had approximately 770 acres of entitled land designated for commercial use. Cibolo Canyons is a mixed-use project in the San Antonio market area. As of December 31, 2016, Cibolo Canyons included 2,100 acres planned to include 1,791 residential lots. The residential component includes traditional single-family homes and adult section. The remaining 58 acres of commercial component is designated principally for multifamily and retail uses. Located at Cibolo Canyons is the JW Marriott San Antonio Hill Country Resort & Spa (Resort), a 1,002 room destination resort and two PGA Tour Tournament Players Club (TPC) golf courses designed by Pete Dye and Greg Norman. The Company's entitled, developed and under development single-family and mixed-use projects include Arrowhead Ranch, Hunter's Crossing, La Conterra, Caracol, Tortuga Dunes, Bar C Ranch, Lantana, Parkside, Timber Creek, City Park, Spring Lakes, Cibolo Canyons, Cielo, Harris Place, Ansley Park, Dove Mountain and Somerbrook.

Mineral resources

The Company's Mineral resources segment is focused on its owned oil and gas mineral interests through promoting exploration, development and production activities. Its revenue from its owned mineral interests is primarily from oil and gas royalty interests, lease bonus payments and delay rentals received and other related activities. The Company typically leases its owned mineral interests to third parties for exploration and production of oil and gas. As of December 31, 2016, it had approximately 523,000 net acres of owned mineral acres that are classified as assets held for sale. As of December 31, 2016, it had approximately 57,000 net acres leased for oil and gas exploration activities, of which approximately 44,000 net acres were held by production from over 473 gross oil and gas wells that were operated by others, in which it had royalty interests.

As of December 31, 2016, it had working interest ownership in 31 of these wells. As of December 31, 2016, it had royalty interests in 473 gross wells. In addition, as of December 31, 2016, it had working interests in 32, 400 gross wells. As of December 31, 2016, it had 78 working interest wells in Wyoming. As of December 31, 2016, its remaining working interests represent approximately 4,300 gross developed acres and 890 net developed acres leased from others that are held by production. As of December 31, 2016, it had approximately 8,100 gross undeveloped acres and 5,900 net undeveloped acres leased from others.

Other

The Company sells wood fiber from its land, primarily in Georgia, and leases land for recreational uses. The Company had 19,000 acres of non-core timberland and undeveloped land that was classified as assets held for sale as of December 31, 2016. In addition, it had non-core water interests in 1.5 million acres, including a nonparticipating royalty interest in groundwater produced or withdrawn for commercial purposes or sold from 1.4 million acres in Texas, Louisiana, Georgia and Alabama, and 20,000 acres of groundwater leases in central Texas that were classified as assets held for sale as of December 31, 2016.

Company Address

Forestar Group Inc

2221 E Lamar Blvd Ste 790
ARLINGTON   TX   76006-7429
P: +1817.7691860
F: +1302.6365454

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