Slide 1: Information on Execution of Key Initiatives and First Quarter 2016 Financial Results
Information on Execution of Key Initiatives and First Quarter 2016 Financial Results May 11, 2016 Exhibit 99.2
Slide 2: Notice to Investors
Notice to Investors This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are typically identified by words or phrases such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,”
Slide 3: Executing Non-Core Asset Sales
Executing Non-Core Asset Sales 3 NON - CORE ASSETS Oil & Gas Working Interests Radisson Hotel Sold Kansas / Nebraska assets for $21.0 MM in Q1/16 Sold for $130.0 MM in Q2/16 Sold portion of Bakken / Three Forks assets for $9.5 MM in Q1/16 – over 900 net acres and 9 producing wells Sold remaining Bak
Slide 4: Executing Cost Reduction Initiatives
Executing Cost Reduction Initiatives 4 0 10 20 30 40 50 60 70 80 90 100 2015 2016E Target Annual SG&A Costs Corporate G&A Segment Operating Costs Project Level Expenses $39 million SG&A costs in 2016 and target are estimates and actual results may vary depending on the timing of asset sales. $87 mil
Slide 5: First Quarter 2016 Results
First Quarter 2016 Results • 1st quarter 2016 real estate segment results include $10.8 million gain associated with sale of our interest in 360°multifamily venture including development fee and $4.0 million gain associated with sale of our wholly-owned Music Row multifamily site • 1st quarter 2016
Slide 6: Real Estate Segment - Earnings Reconciliation Q1 2016
Real Estate Segment - Earnings Reconciliation Q1 2016 $0.5 ($3.0) $9.1 $13.6 $3.6 $0.8 ($2.1) ($1.5) ($0.8) $20.2 $0 $10 $20 $30 Q1 2015 Gain on Asset Sales Multifamily Undeveloped Land Sales Multifamily and Income Producing Properties Impairments Lot Sales Residential & Commercial Tract Sales Opex
Slide 7: Stable Market Demand in Most of our Key Markets
Stable Market Demand in Most of our Key Markets 7Note: Includes venturesSource: Bureau of Labor Statistics March 2016 vs. March 2015 Austin 4.2% Dallas / Fort Worth 3.8% Houston 0.3% San Antonio 2.8% Atlanta 3.1% Charlotte 2.7% Nashville 3.6% U.S. Average 2.0% Job Growth vs. National Average 0 500 1
Slide 8: For questions, please contact:
For questions, please contact: Anna Torma SVP Corporate Affairs Forestar Group Inc 6300 Bee Cave Road Building Two, Suite SOO Austin, TX 78746 512-433-5312 annatorma@forestargroup.com FORESTAR
Slide 9: Appendix
FORESTAR Appendix eee
Slide 10: Real Estate Segment KPI's
Real Estate Segment KPI’s Q1 2016* Q1 2015 Residential Lot Sales Lots Sold 284 289 Average Price / Lot $70,300 $76,200 Gross Profit / Lot $25,300 $37,500 Commercial Tract Sales Acres Sold 8 33 Average Price / Acre $331,000 $314,400 Land Sales Acres Sold 1,972 731 Average Price / Acre $2,890 $2,800 S
Slide 11: Oil and Gas Segment KPI's
Oil and Gas Segment KPI’s Q1 2016** Q1 2015*** Fee Leasing Activity Net Fee Acres Leased 366 800 Avg. Bonus / Acre $202 $349 Royalty Interests* Oil Produced (Barrels) 23,800 35,500 Average Price / Barrel $29.36 $50.48 Natural Gas Produced (MMCF) 206.1 259.8 Average Price / MCF $1.96 $3.45 Total BOE
Slide 12: Other Natural Resources Segment KPI's
Other Natural Resources Segment KPI’s Q1 2016 Q1 2015 Fiber Sales Pulpwood Tons Sold 5,300 27,500 Average Pulpwood Price / Ton $8.73 $8.63 Sawtimber Tons Sold 3,200 20,100 Average Sawtimber Price / Ton $21.02 $21.50 Total Tons Sold* 8,500 47,600 Average Price / Ton $13.30 $14.07 Recreational Leases
Slide 13: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) Forestar’s Segment EBITDA is a non-GAAP financial measure within the meaning of Regulation G of the Securities and Exchange Commission. Non-GAAP financial measures are not in accordance with, or an alternative to, U.S. Generally Accepted Acco
Slide 14: For questions, please contact:
For questions, please contact: Anna Torma SVP Corporate Affairs Forestar Group Inc 6300 Bee Cave Road Building Two, Suite SOO Austin, TX 78746 512-433-5312 annatorma@forestargroup.com FORESTAR