Slide 1: Key Initiatives and Fourth Quarter & Full Year 2015 Financial Results
Information on Execution of Key Initiatives and Fourth Quarter & Full Year 2015 Financial Results March 2, 2016
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: Four Key Initiatives: Significant Progress at Forestar
Four Key Initiatives Reducing Costs Across the Entire Organization • Actions taken to eliminate over $30 million in SG&A Reviewing Entire Portfolio of Assets • Multiple NAV scenarios completed for every asset• Non‐core assets ‐ opportunistically exiting Reviewing Capital Structure • Retired $19 mill
Slide 4: Reducing Costs Across Entire Organization
Reducing Costs Across Entire Organization 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. $8
Slide 5: Reviewing Entire Portfolio of Assets
Reviewing Entire Portfolio of Assets 5 NON - CORE ASSETS Oil & Gas Working Interests Radisson Hotel Sold Kansas and Nebraska for $21 MM Executed agreement for $130 MM Multifamily Opportunistically exiting multifamily portfolio Denver 360 – Target Q1/16 close Eleven on market – Target Q2/16 close Thr
Slide 6: Q4 and Full Year 2015 Results Impacted By Non-Cash Oil and Gas Impairments
Q4 and Full Year 2015 Results Impacted By Non-Cash Oil and Gas Impairments 6 ($ in Millions, except per share data) Q4 2015 Q4 2014 Full Year 2015 Full Year 2014 Net Income (Loss) - As Reported ($6.2) ($11.8) ($213.0) $16.6 Net Income (Loss) Per Share - As Reported ($0.18) ($0.34) ($6.22) $0.38 Spec
Slide 7: Q4 and Full Year 2015 Segment Results
Q4 and Full Year 2015 Segment Results Segment Earnings (Loss) Q4 2015 Q4 2014 Full Year 2015 Full Year 2014 Real Estate $37.9 $30.0 $67.7 $96.9 Oil and Gas (38.4) (39.0) (184.4) (22.7) Other Natural Resources (0.1) 3.3 (0.6) 5.5 Total Segment Earnings (Loss) ($0.6) ($5.7) ($117.3) $79.7 • Q4 and FY
Slide 8: Real Estate Segment - Earnings Reconciliation Q4 2015
Real Estate Segment - Earnings Reconciliation Q4 2015 $1.7 ($7.9) $30.0 $9.8 $7.1 $3.5 ($3.1) ($2.3) ($0.9) $37.9 $0 $10 $20 $30 $40 $50 $60 Q4 2014 Multifamily and Income Producing Properties Residential & Commercial Tract Sales Undeveloped Land Sales Mitigation Banking Gain on Asset Sales Lot Sale
Slide 9: Real Estate Segment - Earnings Reconciliation FY 2015
($0.6) $96.9 $16.3 $8.2 ($24.4) ($14.0) ($6.4) ($5.4) ($2.8) ($0.1) $67.7 $0 $25 $50 $75 $100 $125 FY 2014 Multifamily and Income Producing Properties Residential & Commercial Tract Sales Gain on Sale of Assets Undeveloped Land Sales Opex Interest Income Residential Lots Impairments Mitigation Banki
Slide 10: Focused on Value Through Community Development
1,707 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E Bulk Lot Sales Lot Sales Average Lot Margin Average Lot Margin Excl. Bulk Sales Focused on Value Through Community Development Annual Lot
Slide 11: Stable Market Demand in Most Texas Markets
Stable Market Demand in Most Texas Markets 11 Texas New Home Inventory Within Equilibrium 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 0 5,000 10,000 15,000 20,000 25,000 30,000 1Q01 1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13 1Q14 1Q15 Housing Inventory Months of Supply Equilibrium M o n
Slide 12: Lower Houston Job Growth; Markets Remain Balanced With Low Housing Inventory
Lower Houston Job Growth; Markets Remain Balanced With Low Housing Inventory 12 • Houston #1 in single-family new home permits in U.S. with significant future expected population growth • Housing starts down 8.9% in Q4 2015 vs year-ago • Vacant developed lot (VDL) supply below equilibrium • New home
Slide 13: For questions, please contact
For questions, please contact: Anna Torma SVP Corporate Affairs Forestar Group In 6300 Bee Cave Road Bullding Two, Suite SOO Austin, TX 78746 512-433-5312 annatorma@forestergroup.com FORESTAR
Slide 14: Appendix
FORESTAR Appendix
Slide 15: Real Estate Segment KPI's
Real Estate Segment KPI’s Q4 2015 Q4 2014 FY 2015** FY 2014* Residential Lot Sales Lots Sold 363 509 1,472 2,343 Average Price / Lot $83,700 $71,800 $77,200 $58,100 Gross Profit / Lot*** $35,000 $35,700 $34,400 $25,600 Commercial Tract Sales Acres Sold 7 25 63 32 Average Price / Acre $491,700 $227,5
Slide 16: Oil and Gas Segment KPI's
Oil and Gas Segment KPI’s Q4 2015** Q4 2014** FY 2015*** FY 2014*** Fee Leasing Activity Net Fee Acres Leased --- 40 3,343 3,905 Avg. Bonus / Acre --- $200 $298 $320 Total Oil and Gas Interests* Oil Produced (Barrels) 235,600 236,900 1,046,400 869,700 Average Price / Barrel $36.97 $63.91 $42.89 $83.
Slide 17: Other Natural Resources Segment KPI's
Other Natural Resources Segment KPI’s Q4 2015 Q4 2014 FY 2015 FY 2014 Fiber Sales Pulpwood Tons Sold 40,600 52,000 149,700 209,900 Average Pulpwood Price / Ton $10.51 $9.49 $9.71 $10.62 Sawtimber Tons Sold 23,200 20,000 77,000 120,000 Average Sawtimber Price / Ton $20.04 $22.94 $20.86 $22.47 Total T
Slide 18: 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 19: Reconciliation of Non-GAAP Financial Measures (Unaudited)
Reconciliation of Non-GAAP Financial Measures (Unaudited) 19 In our fourth quarter and full year 2015 earnings release and conference call presentation materials furnished to the Securities and Exchange Commission on Form 8-K on March 2, 2016, we used certain non-GAAP financial measures. The non-GAA
Slide 20: For questions, please contact
For questions, please contact: Anna Torma SVP Corporate Affairs Forestar Group In 6300 Bee Cave Road Bullding Two, Suite SOO Austin, TX 78746 512-433-5312 annatorma@forestergroup.com FORESTAR