Forestar Group Inc · NYSE:FOR
Forestar — Forestar Real Estate Group — Q2 2008 Earnings Presentation
20 slides from Forestar's earnings presentation, Aug 6, 2008
Slide 1: Second Quarter 2008 Financial Results
Second Quarter 2008 Financial Results August 6, 2008
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: Maximize and Grow Long-Term Shareholder Value
Maximize and Grow Long-Term Shareholder Value Entitlement and Development of Real Estate Housing markets continue to be significantly challenged Realization of Value from Natural Resources Significant mineral leasing activity Accelerated Growth through Strategic and Disciplined Investment in Real Es
Slide 4: Real Estate Value Creation
2nd Qtr. 2008 Real Estate Value Creation Developed and Under Development Sold 264 residential lots - $55,000 / lot Sold 47 commercial acres - $271,700 / acre Entitlement 2,000 acres entitled - 930 residential lots - 280 commercial acres 4,500 acres moved into entitlement Undeveloped Sold 504 acres -
Slide 5: Mineral Resources Value Creation
2nd Qtr. 2008 Mineral Resources Value Creation Royalty Interest 277 MMCF of Natural Gas - $7.86 / MCF 23K barrels of Oil - $109.90 / barrel Leased 47,000 acres leased - $18.5 million 17,000 acre option - $1.6 million Available for Lease 474,000 acres available for lease Value
Slide 6: Fiber Resources Value Creation
2nd Qtr. 2008 Fiber Resources Value Creation Sawtimber 44,000 tons of sawtimber sold at $18.17 / ton approximately 70% chip-n-saw Reduced sawtimber harvest levels given current market prices Pulpwood 218,200 tons of pulpwood sold at $8.13 / ton Timber Assets 345,000 acres owned 18,000 acres under le
Slide 7: Second Quarter 2008 Results
Second Quarter 2008 Results ($ in Millions, except per share data) 2nd Qtr 2008 2nd Qtr 2007 1st Qtr 2008 Net Income $ 9.6 $14.4 ($ 0.2) Earnings Per Share - Diluted $ 0.27 $0.41 ($0.01) 2nd Qtr. 2008 weighted average diluted shares outstanding were 36.1 million 2nd Qtr. 2008 results include $2.3 mi
Slide 8: Segment Earnings
Segment Earnings ($ in Millions) 2nd Qtr 2008 2nd Qtr 2007 1st Qtr 2008 Real Estate $ 0.9 $23.0 $ 3.5 Mineral Resources 23.2 4.7 6.5 Fiber Resources 1.4 2.4 2.8 Total $25.5 $30.1 $12.8 2nd Qtr. 2008 real estate segment results include $3.5 million (pre-tax) charge principally related to environmenta
Slide 9: Pipeline Status & Key Performance Indicators
2nd Qtr. 2008 Pipeline Status & Key Performance Indicators
Slide 10: Real Estate Pipeline
Real Estate Pipeline - 2nd Qtr. 2008 Note: Estimated acres and lots may vary * Excludes Forestar's 58% ownership interest in the Ironstob venture which controls approx. 17,000 acres of undeveloped land Real Estate Undeveloped In Entitlement Process Entitled Developed & Under Development Total Acres*
Slide 11: Real Estate Segment KPI's
Real Estate Segment KPI's 2nd Qtr 2008 2nd Qtr 2007 1st Qtr 2008 Residential Lot Sales * Lots Sold 264 581 388 Average Price / Lot $55,000 $51,200 $46,200 Gross Profit / Lot $17,000 $21,400 $17,300 Commercial Tract Sales * Acres Sold 47 61 22 Average Price / Acre $271,700 $294,300 $84,700 Land Sales
Slide 12: Entitlement KPI's
Entitlement KPI's 2nd Qtr 2008 2nd Qtr 2007 1st Qtr 2008 Acres Moved Into Entitlement 4,520 - 2,880 Entitlements Total Acres Entitled 2,070 420 420 Residential Lots Entitled 930 270 120 Commercial Acres Entitled 280 - 260 Acres Moved Into Development - - - Note: Acres and lots are estimates and may
Slide 13: Projects in Entitlement
Projects in Entitlement Projects Moved Into Entitlement 2nd Qtr. 2008 Projects Moved Into Entitlement 2nd Qtr. 2008 Projects Moved Into Entitlement 2nd Qtr. 2008 Projects Moved Into Entitlement 2nd Qtr. 2008 Projects Moved Into Entitlement 2nd Qtr. 2008 Project Acres Acres Purpose Creekview 470 470
Slide 14: Entitlement Activity - Projects Entitled
Entitlement Activity - 2nd Qtr. 2008 Projects Entitled - 2nd Qtr. 2008 Projects Entitled - 2nd Qtr. 2008 Projects Entitled - 2nd Qtr. 2008 Projects Entitled - 2nd Qtr. 2008 Projects Entitled - 2nd Qtr. 2008 Project Acres Acres Purpose Genesee 721 721 Residential Pickens School II 353 353 Mixed-use C
Slide 15: South Coweta Industrial Park Proposed Site Plan
South Coweta Industrial Park Proposed Site Plan Project entitled in Q2 2008 152 acre commercial development 1.1 mm sq. ft. industrial / distribution dev. Located off I-85 in Coweta County, 35 miles from airport 35 miles north of Kia manufacturing plant in Troup County Kia plant to open Q1 2009 and e
Slide 16: Mineral Resources Segment KPI's
Mineral Resources Segment KPI's 2nd Qtr. 2008 2nd Qtr. 2007 1st Qtr. 2008 Minerals Net Acres Leased 47,394 10,802 5,293 Avg. Bonus / Acre $391 $166 $678 Natural Gas Production (MMCF) 276.5 204.3 255.9 Average Price / MCF $7.86 $6.75 $6.80 Oil Production (Barrels) 23,400 25,900 19,400 Average Price /
Slide 17: Second quarter 2008 activity
17 Second quarter 2008 activity Significant increase in leasing activity related to expansion of Cotton Valley, James Lime and Haynesville Shale formations. 47,000 17,000
Slide 18: Fiber Resources Segment KPI's
Fiber Resources Segment KPI's 2nd Qtr. 2008 2nd Qtr. 2007 1st Qtr. 2008 Fiber Sales Tons Sold 262,200 325,900 209,200 Average Price / Ton $10 $11 $10 Recreational Leases (acres) 283,700 283,500 284,500 Segment Revenues ($ in Millions) $3.1 $3.8 $2.5 Segment Earnings ($ in Millions) $1.4 $2.4 $2.8 1s
Slide 19: Maximize and Grow Long-Term Shareholder Value
Maximize and Grow Long-Term Shareholder Value Entitlement and Development of Real Estate Entitle aggressively, exercise investment discipline in development Realization of Value from Natural Resources Increase acreage in play and ensuing royalties Accelerated Growth through Strategic and Disciplined
Slide 20: Forestar Real Estate Group
Ss FORESTAR Real Estate Group FORESTAR |
Forestar Real Estate Group — Q2 2008 Earnings Presentation on 6ix