Forestar Group Inc · NYSE:FOR
Forestar — Forestar Real Estate Group — Q3 2008 Earnings Presentation
16 slides from Forestar's earnings presentation, Nov 5, 2008
Slide 1: Third Quarter 2008 Financial Results
Third Quarter 2008 Financial Results November 5, 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 Real estate markets continue to be significantly challenged Realization of Value from Natural Resources Royalties benefit from increased production and pricing Accelerated Growth through Strategic and Discipline
Slide 4: Real Estate Value Creation
3rd Qtr. 2008 Real Estate Value Creation Developed and Under Development Sold 149 residential lots - $62,200 / lot Sold 23 commercial acres - $252,300 / acre Entitlement 26 projects representing over 33,700 acres in entitlement Undeveloped Sold 1,774 acres - $4,800 / acre Value Note: Includes 100% o
Slide 5: Mineral Resources Value Creation
3rd Qtr. 2008 Mineral Resources Value Creation Royalty Interest 437 MMCF of Natural Gas - $10.59 / MCF 23K barrels of Oil - $129.38 / barrel Leased 3,200 acres leased - $1.1 million Delay rental payments - $0.6 million Available for Lease 478,000 acres available for lease Value
Slide 6: Fiber Resources Value Creation
3rd Qtr. 2008 Fiber Resources Value Creation Sawtimber 36,000 tons of sawtimber sold at $18.93 / ton approximately 70% chip-n-saw Maximize and grow sawtimber values by reducing harvest levels given current market prices Pulpwood 260,500 tons of pulpwood sold at $8.45 / ton Timber Assets 343,000 acre
Slide 7: Third Quarter 2008 Results
Third Quarter 2008 Results ($ in Millions, except per share data) 3rd Qtr 2008 3rd Qtr 2007 2nd Qtr 2008 Net Income $ 0.9 $ 9.6 $ 9.6 Earnings Per Share - Diluted $ 0.02 $0.27 $ 0.27 3rd Qtr. 2008 weighted average diluted shares outstanding were 35.8 million
Slide 8: Segment Earnings
Segment Earnings ($ in Millions) 3rd Qtr 2008 3rd Qtr 2007 2nd Qtr 2008 Real Estate $ 1.7 $13.0 $ 0.9 Mineral Resources 8.2 6.8 23.2 Fiber Resources 1.9 1.4 1.4 Total $11.8 $21.2 $25.5 3rd Qtr. 2007 real estate segment earnings include $7.1 million gain from the sale of 84 acres of commercial land f
Slide 9: Pipeline Status & Key Performance Indicators
3rd Qtr. 2008 Pipeline Status & Key Performance Indicators
Slide 10: Real Estate Pipeline
Real Estate Pipeline - 3rd 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 3rd Qtr 2008 3rd Qtr 2007 2nd Qtr 2008 Residential Lot Sales * Lots Sold 149 332 264 Average Price / Lot $62,200 $58,000 $55,000 Gross Profit / Lot $18,200 $21,400 $17,000 Commercial Tract Sales * Acres Sold 23 84 47 Average Price / Acre $252,300 $190,000 $271,700 Land Sale
Slide 12: Entitlement KPI's
Entitlement KPI's Note: Acres and lots are estimates and may vary Atlanta, GA Activity Ownership (acres) - 300,000 (wholly-owned & ventures) In Entitlement - - 20 projects - - 28,100 acres Projects Entitled - - 16 projects - - 6,400 acres • 5,522 residential lots • 703 commercial acres
Slide 13: Mineral Resources Segment KPI's
Mineral Resources Segment KPI's 3rd Qtr. 2008 3rd Qtr. 2007 2nd Qtr. 2008 Minerals Net Acres Leased 3,209 16,773 47,394 Avg. Bonus / Acre $338 $246 $391 Natural Gas Production (MMCF) 437 194 276 Average Price / MCF $10.59 $7.37 $7.86 Oil Production (Barrels) 23,000 22,000 23,000 Average Price / Barr
Slide 14: Fiber Resources Segment KPI's
Fiber Resources Segment KPI's 3rd Qtr. 2008 3rd Qtr. 2007 2nd Qtr. 2008 Fiber Sales Tons Sold 296,500 292,100 262,200 Average Price / Ton $9.73 $12.38 $9.81 Recreational Leases (acres) 291,000 287,200 283,700 Segment Revenues ($ in Millions) $3.5 $4.0 $3.1 Segment Earnings ($ in Millions) $1.9 $1.4
Slide 15: 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 New minerals management team in place to increase acreage in play, and maximize future royalties an
Slide 16: Forestar Real Estate Group
WS FORESTAR Real Estate Group
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