Slide 1: Information on Execution of Key Initiatives and Second Quarter 2016 Financial Results
Information on Execution of Key Initiatives and Second Quarter 2016 Financial Results July 29, 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: Significant Progress at Forestar
Significant Progress at Forestar Completed Pre-Tax Net Proceeds Radisson Hotel & Suites $128.8 Oil & Gas Working Interest Assets $80.6 Multifamily (3 projects, 2 sites) $156.5 Pre-Tax Net Proceeds to Date* $365.9 ($ in millions) In Process Timberland / Undeveloped Land Multifamily (3 venture project
Slide 4: Executing Cost Reductions
Executing Cost Reductions 4 0 10 20 30 40 50 60 70 80 90 100 2015 2016E Previous Target Revised Target Annual SG&A Costs Corporate G&A Segment Operating Costs Project Level Expenses $39 million SG&A costs in 2016 and targets are estimates and actual results may vary depending on the timing of comple
Slide 5: Second Quarter 2016 Results
Second Quarter 2016 Results 5 ($ in Millions, except per share data) Q2 2016 Q2 2015 Revenues * $48.0 $43.6 Net Income – Continuing Operations * $11.7 $2.5 Net Income Per Diluted Share – Continuing Operations * $0.28 $0.06 Net Income $9.6 ($34.5) Net Income Per Diluted Share $0.23 ($0.81) Segment Ea
Slide 6: Real Estate Segment - Earnings Reconciliation Q2 2016
Real Estate Segment - Earnings Reconciliation Q2 2016 ($48.6) ($5.2) $15.5 $106.5 $8.5 $2.0 ($3.2) ($1.5) ($0.7) $73.3 $0 $20 $40 $60 $80 $100 $120 $140 Q2 2015 Gain on Asset Sales Undeveloped Land Sales Opex Impairments Lot Sales Multifamily and Income Producing Properties Residential & Commercial
Slide 7: Transforming Capital Structure
Q2 Highlights: • $107 million in cash and cash equivalents at second quarter-end 2016 • Retired $216.6 million (98% outstanding) of 8.50% Senior Secured Notes due 2022 • Retired $5.0 million of 3.75% Convertible Senior Notes due 2020 • Repaid $15.4 million and $23.9 million in project level debt for
Slide 8: 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 9: Appendix
FORESTAR Appendix
Slide 10: Non-Core Community Development Projects
Non-Core Community Development Projects 10 • Exiting five non-core communities • Changed business plans and incurred $45.2 million in non-cash impairments • Reduces annual carry costs by $1.7 million, once sold • Sales are expected to trigger tax losses to offset tax gains from other non-core asset
Slide 11: Stable Market Demand in Most of our Key Markets
Stable Market Demand in Most of our Key Markets 11 Note: Includes ventures Source: Bureau of Labor Statistics May 2016 vs. May 2015 Austin 3.7% Dallas / Fort Worth 3.6% Houston 0.3% San Antonio 2.9% Atlanta 3.0% Charlotte 2.0% Nashville 2.5% U.S. Average 1.7% Job Growth vs. National Average • Job gr
Slide 12: Real Estate Segment KPI's
Real Estate Segment KPI’s Q2 2016* Q2 2015 Residential Lot Sales Lots Sold 489 519 Average Price / Lot $66,600 $73,400 Gross Profit / Lot $23,900 $34,400 Commercial Tract Sales Acres Sold 3 21 Average Price / Acre $376,000 $82,700 Land Sales Acres Sold 5,425 1,248 Average Price / Acre $2,360 $3,000
Slide 13: Mineral Resources Segment KPI's
Mineral Resources Segment KPI’s Q2 2016 Q2 2015 Fee Leasing Activity Net Acres Leased 984 800 Avg. Bonus / Acre $257 $254 Minerals Oil Produced (Barrels) * 18,900 33,800 Average Price / Barrel $32.15 $47.47 Natural Gas Produced (MMCF) ** 195.0 242.7 Average Price / MCF ** $1.74 $2.57 Total BOE 51,30
Slide 14: 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