Slide 1: Information on Execution of Key Initiatives and Third Quarter 2016 Financial Results
Information on Execution of Key Initiatives and Third Quarter 2016 Financial Results November 9, 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: Key Initiatives
Key Initiatives Reducing Costs Across the Entire Organization* • Actions taken to eliminate over $50MM in annualized SG&A • Decreased headcount by over 50% compared to 2014 peak • Implemented zero based budgeting Reviewing Entire Portfolio of Assets • Executed $425MM in non-core asset sales • Radiss
Slide 4: Overview of Assets
Overview of Assets CORE Minerals and Water 590,000 net fee mineral acres principally in Texas, Louisiana, Georgia and Alabama 45% non-participating royalty interest in groundwater rights on 1.4 million surface acres Groundwater leases on 20,000 surface acres in Central Texas – Under Contract* Multif
Slide 5: Third Quarter 2016 Results
Third Quarter 2016 Results 5 ($ in Millions, except per share data) Revenues * $47.2 $32.2 Net Income (Loss) – Continuing Operations $16.8 ($57.3) Net Income (Loss) Per Share – Continuing Operations $0.40 ($1.67) Net Income (Loss) $9.7 ($164.2) Net Income (Loss) Per Share $0.23 ($4.79) Segment Earni
Slide 6: Real Estate Segment - Earnings Reconciliation
Real Estate Segment - Earnings Reconciliation Q3 2016 $1.4 $1.1 $5.2 $11.0 $4.1 $2.0 $0.1 ($7.6) ($1.2) $(1.1) $15.0 $0 $5 $10 $15 $20 $25 $30 Q3 2015 Undeveloped Land Sales Opex Mitigation Banking Lot Sales Interest Income Gain on Asset Sales Impairment Residential & Commercial Tract Sales Multifam
Slide 7: Lot Sales and Lots Under Contract
Lot Sales and Lots Under Contract 7 0 500 1,000 1,500 2,000 2,500 Q 11 2 Q 21 2 Q 31 2 Q 41 2 Q 11 3 Q 21 3 Q 31 3 Q 41 3 Q 11 4 Q 21 4 Q 31 4 Q 41 4 Q 11 5 Q 21 5 Q 31 5 Q 41 5 Q 11 6 Q 21 6 Q 31 6 Re sid en tia l L ot s Developed Lots Lots Under Development > 2,080 Lots Under Option Contract Conti
Slide 8: For questions, please contact
8 For questions, please contact: Charles D. Jehl Chief Financial Officer Forestar Group Inc. 6300 Bee Cave Road Building Two, Suite 500 Austin, TX 78746 512-433-5229 chuckjehl@forestargroup.com
Slide 9: Appendix
FORESTAR Appendix een
Slide 10: Real Estate Segment KPI's
Real Estate Segment KPI’s Q3 2016 Q3 2015 YTD Q3 2016 YTD Q3 2015 Residential Lot Sales Lots Sold 332 301 1,105 1,109 Average Price / Lot $69,970 $76,623 $68,573 $75,019 Gross Profit / Lot $26,100 $30,593 $24,921 $34,193 Commercial Tract Sales Acres Sold 110 2 120 56 Average Price / Acre $76,187 $28
Slide 11: Stable Market Demand in Key Markets
Stable Market Demand in Key Markets *Source: Bureau of Labor Statistics September 2016 vs. September 2015 Austin 2.8% Dallas / Fort Worth 3.8% Houston 0.5% San Antonio 2.2% Atlanta 3.0% Charlotte 2.0% Nashville 2.8% U.S. Average 1.7% Job Growth vs. National Average* Job growth in our key markets hol
Slide 12: Mineral Resources Segment KPI's
Mineral Resources Segment KPI’s Q3 2016 Q3 2015 Minerals Oil Produced (Barrels) * 20,400 30,100 Average Price / Barrel $43.23 $46.16 Natural Gas Produced (MMCF) ** 205.5 242.5 Average Price / MCF ** $1.95 $2.45 Total BOE 54,700 70,500 Average Price / BOE $23.47 $28.13 Segment Revenues ($ in millions
Slide 13: Non-Core Community Development Projects Update
Non-Core Community Development Projects Update 13 • Sales could trigger up to approximately $110 million in tax losses to offset tax gains from other non-core asset sales • Reduces annual carry costs by $2.6 million, once sold Community Location Status* Interest Owned** Developed Lots Undeveloped Lo
Slide 14: Multifamily Communities Update
Multifamily Communities Update Multifamily Development Projects – Q3 2016 ($ in millions) Project Market FOR Ownership Units % Complete Status Target Sale Date W ho lly O w ne d Downtown Edge Site Austin 100% n/a n/a Q4 2016 Westlake Site Austin 100% n/a n/a Q3 2017 Current Market Range Cap Rate***
Slide 15: Actions Taken to Eliminate Over $50 million in Annual SG&A Costs
0 10 20 30 40 50 60 70 80 90 100 2015 2016E 2017E Target Annual SG&A Costs Corporate G&A Segment Operating Costs Project Level Expenses Cost Reductions SG&A costs in 2016 and target are estimates and actual results may vary depending on the timing of completion of non-core asset sales. $87 million $
Slide 16: For questions, please contact
16 For questions, please contact: Charles D. Jehl Chief Financial Officer Forestar Group Inc. 6300 Bee Cave Road Building Two, Suite 500 Austin, TX 78746 512-433-5229 chuckjehl@forestargroup.com