Slide 1: Third Quarter 2009 Financial Results
Third Quarter 2009 Financial Results November 4, 2009
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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 unc
Slide 3: Third Quarter 2009 Value Creation Highlights
Third Quarter 2009 Value Creation Highlights Sold 20,000 acres - $39.5 millionReceived $20.3 million in reimbursements from Cibolo Canyons special public improvement districtLeased 10,795 net mineral acres - $15.8 millionReduced investment in development and lowered costs by $58.8 million YTD 3rd Qt
Slide 4: Third Quarter 2009 Results
Third Quarter 2009 Results 4 ($ in Millions, except per share data) 3rd Qtr 2009 3rd Qtr 2008 2nd Qtr 2009 Net Income $19.5 $ 0.9 $50.9 Earnings Per Share - Diluted $0.54 $0.02 $1.41 3rd Qtr. 2009 results include a gain of $0.45 per share (after-tax) from the sale of 20,000 acres of timberland for a
Slide 5: Segment Earnings
Segment Earnings 5 5 3rd Qtr 2009 real estate segment earnings include ($4.7) million in impairment charges principally associated with a condominium project located in Austin, Texas and two joint venture projects located in Tampa, Florida3rd Qtr 2009 mineral resources segment earnings include $15.8
Slide 6: 3rd Qtr 2009 Results and Key Performance Indicators
3rd Qtr 2009 Results and Key Performance Indicators
Slide 7: Real Estate Segment KPI's
Real Estate Segment KPI's 7 7 * Includes 100% of venture activity
Slide 8: Real Estate Pipeline - 3rd Qtr 2009
Real Estate Pipeline - 3rd Qtr 2009 Note: Estimated acres and lots may vary Real Estate Undeveloped In Entitlement Process Entitled Developed and Under Development Total Acres* Undeveloped Land Owned 200,148 206,901 Ventures 6,753 206,901 Residential Owned 26,928 7,929 675 42,557 Ventures 1,080 4,58
Slide 9: Cibolo Canyons - San Antonio, Texas
Cibolo Canyons - San Antonio, Texas * Investment, lot and acre sales project to date as of 3rd Qtr 2009 9 Investment* Forestar Economics Progress $45 million Residential Lot Sales ~1,700 total lots 580 lots sold* $45 million Commercial Acre Sales~145 total commercial acres 64 acres sold* $45 million
Slide 10: Mineral Resources Segment KPI's
Mineral Resources Segment KPI's 10 10 * Includes 100% of venture activity 3rd Qtr 2009 mineral resources segment earnings include $15.8 million in lease bonus payments associated with leasing 10,795 net mineral acres
Slide 11: Texas Mineral Assets
Texas Mineral Assets 11 Tarrant Parker Hood Johnson Texas Mineral Acres Texas Mineral Acres Texas Mineral Acres County Net Acres* Trinity 47,000 Angelina 41,000 Houston 29,000 Anderson 24,000 Cherokee 23,000 Sabine 22,000 Red River 14,000 St. Augustine 13,000 Newton 13,000 Jasper 10,000 Other 8,000
Slide 12: Louisiana Mineral Assets
Louisiana Mineral Assets 12 Louisiana Mineral Acres Louisiana Mineral Acres Louisiana Mineral Acres Parish Net Acres* Beauregard 76,000 Vernon 21,000 Calcasieu 17,000 Allen 6,000 Other 1,000 Total 121,000 Held by ProductionLeasedAvailable for Lease * Net Acres calculated as gross surface acreage mul
Slide 13: Fiber Resources Segment KPI's
Fiber Resources Segment KPI's 13 13
Slide 14: Near-Term Strategic Initiatives Update
Near-Term Strategic Initiatives Update 14
Slide 15: Maximizing Shareholder Value Strategy
Maximizing Shareholder Value 15 Strategy Near-Term Strategic Initiatives Real EstateEntitlement and development Generate significant cash flow, principally from the sale of approximately 175,000 acres of HBU timberland Natural ResourcesValue realization Improve minerals transparency and disclosure G
Slide 16: Land Sales Initiatives
Land Sales Initiatives Institutional Sale #2 20,000 acres $1,975 per acre $39.5 million Institutional Sale #1 75,000 acres $1,600 per acre $120 million 16 Sale #1 Sale #2 Forestar has sold over 95,000 acres of timberland for almost $160 million since the announcement of our near-term strategic initi
Slide 17: Reduced Investment in Development & Lower Costs
Reduced Investment in Development & Lower Costs 17 Strategic Initiative Objective Progress Reduce Investment in Real Estate Development 75% Reduction in 2009* Lower Costs Reduce Operating and G&A expenses ($ in Millions) YTD 3rd Qtr. 2009 YTD 3rd Qtr. 2008 Change Net Investment in Development* $14.5
Slide 18: Balance Sheet Leverage and Liquidity
Balance Sheet Leverage and Liquidity 18 18 * Consolidated venture debt is principally non-recourse to Forestar In July 2009 we amended our senior credit facility to provide option for maturity extension through July 2012 Note: Income taxes associated with sale to St. Regis Paper Company, LLC, affili
Slide 19: Maximizing Shareholder Value Strategy Progress
Maximizing Shareholder Value Strategy Near-TermStrategic Initiatives Progress Real EstateEntitlement and development Generate significant cash flow, principally from sale of approximately 175,000 acres of HBU timberland 95,000 acres sold ~$160 million~80,000 acres actively marketedReduced debt $124
Slide 20: September 12, 2007
20 September 12, 2007 20