Slide 1: First Quarter 2011 Earnings Presentation
FIRST QUARTER 2011 Earnings Presentation May 2011
Slide 2: Forward Looking Statements
2 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 u
Slide 3: First Quarter 2011 Results and Key Performance Indicators
FIRST QUARTER 2011 Results and Key Performance Indicators Strategy and Initiative Execution Have Forestar Well Positioned
Slide 4: First Quarter 2011 Results
First Quarter 2011 Results First Quarter 2011 Results 4 Note: 1st Qtr 2011 weighted average basic shares outstanding were 35.3 million 4th Qtr. 2010 results include pre-tax gain of $13.2 million from sale of 9,800 acres of timberland and non-cash impairment charges of $10.4 million
Slide 5: Segment Earnings (Loss)
Segment Earnings (Loss) Segment Earnings (Loss) 5 1st Qtr. 2011 mineral resources segment earnings include over $1.7 million in lease bonus revenues associated with leasing almost 4,900 net mineral acres and $1.6 million in revenues associated with a seismic exploration agreement on over 31,000 net
Slide 6: 2011 Highlights
2011 Highlights 6 54 thousand acres put into play in Louisiana 4,900 acres leased 31,000 acres in seismic agreement 18,000 acres in exploration agreement Purchased 1,200 acres near Cibolo Canyons Multiple dimensions of value 214 residential lots sold, back-log building 1,068 acre entitlement near At
Slide 7: Market Conditions Expected to Create Significant Growth Opportunities
Market Conditions Expected to Create Significant Growth Opportunities U.S. Housing Starts (SAAR, Thousand Units) Source: IHS Global Insight Multifamily well-positioned to benefit from economic recovery 7
Slide 8: Texas Markets Outperforming
(CHART) (CHART) Texas Markets Outperforming Over 70% of Real Estate Investment Located in Texas 8 (CHART) (CHART) >15% >9.0 Source: Moody's Economy.com and Zelman & Associates
Slide 9: Real Estate Segment KPI's
9 Real Estate Segment KPI's Real Estate Segment KPI's * Includes 100% of venture activity ** KPI's include venture activity, but exclude Q4 2010 sale of 625 acres for about $20 million at Summer Creek Ranch project located near Fort Worth, TX
Slide 10: Real Estate Pipeline - Q1 2011
Real Estate Undeveloped In Entitlement Process Entitled Developed and Under Development Total Acres* Undeveloped Land Owned 166,141 173,118 Ventures 6,977 173,118 Residential Owned 26,819 7,889 584 40,267 Ventures --- 4,354 621 40,267 Commercial Owned 2,801 1,095 539 5,145 Ventures --- 476 234 5,145
Slide 11: Retaining Value Through the Downturn
Retaining Value Through the Downturn 11 (CHART)
Slide 12: Entitlement Activity - Q2 2011
Entitlement Activity - Q2 2011 Entitlements 1,591 Residential lots 954 Housing units* 133k sq ft Commercial 52% of project is open space Previous zoning only allowed development of 300 residential lots Located near Atlanta, GA 12 Site Plan Burt Creek * Housing units include multifamily, condo, townh
Slide 13: Natural Resources Market Conditions
Natural resources landscapes 13 Market Market Conditions Oil & Gas Oil prices are firmGas prices pressured by inventory & production Fiber Saw timber markets weak - home constructionPulpwood stable - global markets emerging Water Emerging opportunity - accelerated by droughtsMinimal investment in re
Slide 14: Fiber Resources Segment KPI's
14 Fiber Resources Segment KPI's Fiber Resources Segment KPI's
Slide 15: Mineral Resources Segment KPI's
15 Mineral Resources Segment KPI's Mineral Resources Segment KPI's Note: Wells owned and drilled by third-party lessees and operators * Includes our share of venture production: 1st Qtr 2011 = 159 MMcf; 1st Qtr 2010 = 27 MMcf; 4th Qtr. 2010 = 227 MMcf
Slide 16: 2011 Louisiana Minerals Activity
2011 Louisiana Minerals Activity 16 Note: Wells owned by third-party lessee / operator Leasing: 4,900 acres leased $343 / acre Seismic Agreement: 31,100 net mineral acres $1.6 million Q2 2011 Activity Exploration Agreement: 18,000 net mineral acres Q1 2011 Activity Acres Leased Q1 2011 Acres Leased
Slide 17: Q1 2011 East Texas Bossier-Haynesville Drilling Activity
Q1 2011 East Texas Bossier-Haynesville Drilling Activity 17 Note: Wells owned by third-party lessee / operator Acres Leased Available for Lease Held by Production Haynesville Well Permits Haynesville Drilling Activity Producing Bssr-Hysv Wells Waiting on Completion Bossier-Haynesville Activity In Ea
Slide 18: Well Positioned For Growth: Real Estate
Well Positioned For Growth 18 Business Opportunities Real Estate Distressed residential, mixed-use and multifamily real estate assetsExploit Forestar's experience, assets, and resources to generate fees, returns, and promoted interests from value created and realized Forestar's well positioned to ca
Slide 19: Forestar Multifamily Model
Forestar Multifamily Model 19 Multifamily model leverages investment, assets and resources to generate exceptional returns and shareholder value FINANCING Multifamily business model leverages our own investment and existing sites with capital from our partners to create and realize value
Slide 20: Well Positioned For Growth: Natural Resources
Well Positioned For Growth Opportunities 20 Business Opportunities Natural Resources Focus on low cost, low-risk Investments that "prove-up" the value of our assets and meet return requirementsRecurring cash flows with minimal investment Forestar's well positioned to capitalize on growth opportuniti
Slide 21: Strategy and Initiative Execution Have Forestar Well Positioned
Strategy and Initiative Execution Have Forestar Well Positioned Right Strategy Experienced Management Team Strong Balance Sheet, Assets & Projects
Slide 22: G
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