Financial Performance - Revenues for fiscal 2024 increased by 5% to $1,509.4 million compared to $1,436.9 million in fiscal 2023[181]. - The company reported a net income before income taxes of $270.1 million for fiscal 2024, up from $221.6 million in fiscal 2023[181]. - Net income rose to $203.4 million for the year ended September 30, 2024, compared to $166.9 million in 2023, reflecting a growth of 21.8%[278]. - Basic net income per share increased to $4.03 in 2024, up from $3.34 in 2023, marking a 20.7% increase[278]. - The effective tax rate for fiscal 2024 was 24.7%, consistent with the rate in 2023[349]. Sales and Revenue Generation - The average sales price per residential lot rose to $96,600 in fiscal 2024 from $90,900 in fiscal 2023, reflecting improved demand[182]. - Residential lots sold increased to 15,068 in fiscal 2024 from 14,040 in fiscal 2023, with sales to D.R. Horton rising to 13,267 lots[185]. - Revenues from residential lot sales reached $1,459.3 million in fiscal 2024, compared to $1,275.7 million in fiscal 2023[325]. Expenses and Costs - Selling, general and administrative (SG&A) expenses increased to $118.5 million in fiscal 2024, representing 7.9% of revenues compared to 6.8% in fiscal 2023[192]. - For the year ended September 30, 2024, the company's cost of sales was approximately $1.15 billion, which included costs related to land and lot acquisition, land development, and related expenses[266]. - The company experienced an increase in accrued development costs to $144.6 million in 2024, up from $104.1 million in 2023, a rise of 38.9%[274]. Assets and Liabilities - Total assets increased to $2,840.1 million as of September 30, 2024, up from $2,470.7 million in 2023, representing a growth of 14.0%[274]. - Total liabilities increased to $1,245.0 million as of September 30, 2024, compared to $1,100.8 million in 2023, an increase of 13.1%[274]. - Stockholders' equity increased to $1,595.1 million as of September 30, 2024, compared to $1,369.9 million in 2023, representing a growth of 16.5%[274]. Cash Flow and Financing - In fiscal 2024, net cash used in operating activities was $158.4 million, a decrease from $364.1 million in fiscal 2023[214]. - The company reported net cash provided by investing activities of $7.3 million in fiscal 2024, compared to $0.3 million in fiscal 2023[215]. - Net cash provided by financing activities was $16.3 million in fiscal 2024, an increase from cash used in financing activities of $13.2 million in fiscal 2023[216]. - Cash and cash equivalents stood at $481.2 million with an additional $377.2 million available on the revolving credit facility as of September 30, 2024[200]. Debt and Credit Facilities - The company's debt to total capital ratio improved to 30.7% in fiscal 2024 from 33.7% in fiscal 2023, indicating a stronger liquidity position[201]. - The company has a $410 million senior unsecured revolving credit facility, with an available capacity of $377.2 million as of September 30, 2024[203]. - The company has $400 million principal amount of 3.85% senior notes maturing on May 15, 2026, with an annual effective interest rate of 4.1%[207]. - The company also has $300 million principal amount of 5.0% senior notes maturing on March 1, 2028, with an annual effective interest rate of 5.2%[208]. Compliance and Internal Controls - The company was in compliance with all financial covenants associated with its revolving credit facility as of September 30, 2024[205]. - The company maintained effective internal control over financial reporting as of September 30, 2024, according to management's assessment[246]. - Ernst & Young LLP expressed an unqualified opinion on the company's consolidated financial statements for the years ended September 30, 2024, and 2023[261]. Strategic Relationships and Market Position - The company plans to remain disciplined in land investments and manage lot sales pace to optimize returns amid market conditions[178]. - The company’s strategic relationship with D.R. Horton may impact its ability to maintain customer relationships and achieve strategic initiatives[235]. - D.R. Horton owned approximately 62% of Forestar's outstanding common stock as of September 30, 2024, down from 75% post-merger in October 2017[291]. Future Outlook and Investments - The company anticipates entering into a new at-the-market equity offering program under its September 2024 shelf registration statement[213]. - The Company invested $570.0 million in the acquisition of residential real estate and $1.0 billion in the development of residential real estate during fiscal 2024[322].

Financial Data and Key Metrics Changes - Fiscal 2024 diluted earnings per share increased 20% to $4 and pretax income increased 22% to $270.1 million [7] - Net income for the fourth quarter increased 13% to $81.6 million or $1.60 per diluted share, while for the year, net income increased 22% to $203.4 million [10] - Revenues for the fourth quarter totaled $551.4 million, flat with the prior year quarter, while total revenue for fiscal 2024 was $1.5 billion [10][11] - Return on equity improved 60 basis points to 13.8%, and book value per share increased 15% from a year ago to $31.47 [7][23] Business Line Data and Key Metrics Changes - Lots sold during the fourth quarter increased 8% to 5,374 lots, and for the year, lots sold increased 7% to 15,068 lots [11] - Average lot sales price for the quarter was $97,300 and $96,600 for the year [11] - Gross profit margin for the fourth quarter was 23.9%, up 290 basis points from a year ago, and for the year, it was 23.8%, up 260 basis points [12] Market Data and Key Metrics Changes - The supply of new and existing homes at affordable price points remains limited, with favorable demographic support for housing demand despite elevated mortgage interest rates [16] - Availability of contractors and necessary materials has improved, but overall development costs have not decreased [17] Company Strategy and Development Direction - The company plans to continue executing its strategic plan by investing for future growth, maximizing returns, and consolidating market share in the lot development industry [9] - Forestar aims to double its market share to 5% over the intermediate term while maintaining a disciplined approach to capital investment [27] Management's Comments on Operating Environment and Future Outlook - Management noted that governmental delays continue to extend cycle times above historical norms, impacting development timelines [17] - For fiscal 2025, the company expects to deliver between 16,000 and 16,500 lots and generate $1.6 billion to $1.65 billion in revenue [26] Other Important Information - The company invested approximately $1.6 billion in land and land development in fiscal 2024, with plans to invest approximately $2 billion in fiscal 2025 [20] - The company ended the quarter with approximately $860 million of liquidity, including an unrestricted cash balance of $480 million [22] Q&A Session Summary Question: Will the percentage of lots delivered to customers other than D.R. Horton grow in '25? - Management expects to stay at around 85% to 90% of lots going to Horton in the near term [29] Question: What are the current cycle times for land development? - Cycle times for grading typically take about 120 days, with overall development timelines extending due to government approvals [32] Question: Are there any markets that are oversupplied or where the company may pull back from new land acquisition? - Management does not see any buildup in inventory in affordable price points and customer demand remains robust across the country [40] Question: What is the constraint to growth given the increase in lots under contract with D.R. Horton? - The constraint is the lengthy process from identifying land to getting it developed and finished [55] Question: What is the range of time frames in developing lots from acquisition? - Development timelines can range from six months to 24 months depending on various factors [56]

FORESTAR Investor Presentation Q4 2024 FORWARD-LOOKING STATEMENTS Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: the effect of D.R. Horton's controlling level of ownership on us and the holders of our securities; our ability to realize the potential benefits of the strategic relationship with D.R. Horton; the effect of our strategic relationship with D.R. Horton on our ability to mainta ...

Financial Performance - Net income for fiscal 2024 increased 22% to $203.4 million, or $4.00 per diluted share, compared to $166.9 million, or $3.33 per diluted share, in fiscal 2023[3] - Revenues for fiscal 2024 increased 5% to $1.5 billion from $1.4 billion in fiscal 2023, with 15,068 lots sold[3] - Net income for the three months ended September 30, 2024, was $81.6 million, compared to $72.4 million in the same period of 2023, reflecting a year-over-year increase of 12.5%[18] - Basic net income per common share increased to $1.61 for the three months ended September 30, 2024, up from $1.45 in the same period of 2023, marking an increase of 11.0%[18] - The income before income taxes for the three months ended September 30, 2024, was $108.5 million, compared to $95.4 million in the same period of 2023, showing an increase of 13.6%[18] Sales and Lots - Lots sold during fiscal 2024 increased 7% to 15,068 lots compared to 14,040 lots in fiscal 2023[6] - The company delivered over 15,000 finished lots in fiscal 2024, exceeding the high end of its recent guidance range[10] - Residential lot sales from development projects totaled $496.4 million for the three months ended September 30, 2024, compared to $485.4 million in the same period of 2023, indicating a growth of 2.1%[19] - The average sales price per lot was $97,300 for the three months ended September 30, 2024, slightly down from $97,400 in the same period of 2023[20] - The company owned 20,500 lots under contract to sell to D.R. Horton, an increase from 14,400 lots in the previous year, reflecting a growth of 42.4%[20] Assets and Liquidity - The company ended fiscal 2024 with $481.2 million of unrestricted cash and $377.2 million of available borrowing capacity, totaling $858.4 million in liquidity[9] - Debt at September 30, 2024, totaled $706.4 million, with no senior note maturities until fiscal 2026[9] - The total lots owned and controlled increased to 95,100 as of September 30, 2024, compared to 79,200 as of September 30, 2023, representing a growth of 20.1%[20] - The company owned and controlled 95,100 lots as of September 30, 2024, with 21,000 lots under contract to be sold, representing approximately $1.9 billion of future revenue[7] Expenses - Selling, general and administrative expenses rose to $32.0 million for the three months ended September 30, 2024, compared to $26.4 million in the same period of 2023, an increase of 21.3%[18] Investment - Over the last five years, the company invested approximately $6.7 billion in land acquisition and development, delivering over 70,000 finished lots[11] Future Outlook - The company expects to deliver between 16,000 and 16,500 lots in fiscal 2025, generating $1.6 billion to $1.65 billion of revenue[12] Quarterly Revenue - Total revenues for the three months ended September 30, 2024, were $551.4 million, a slight increase from $549.7 million in the same period of 2023, representing a growth of 0.3%[19] Asset Sales - The company reported a gain on the sale of assets of $(4.5) million for the three months ended September 30, 2024, compared to no gain in the same period of 2023[18]

Industry Overview - The Zacks Real Estate – Development industry includes companies involved in owning, developing, and managing various real estate properties, such as commercial, residential, and mixed-use parcels [3] - Companies in this sector often engage in strategic activities like infrastructure improvement and land planning to enhance economic development and attract job creators [3] Current Market Conditions - Recent interest rate cuts by the Federal Reserve have improved buyer sentiment for 2024 and 2025, encouraging real estate development due to lower borrowing costs [4] - The industry is experiencing a significant shortage of new homes due to over a decade of under-building, which is contributing to favorable industry fundamentals [5] - Demand for specific real estate categories, including retail, industrial, logistics, and office spaces, is witnessing healthy growth, driven by post-pandemic consumer preferences and e-commerce trends [6] Economic Challenges - Despite improved investor sentiment, macroeconomic uncertainty and geopolitical tensions are causing supply-chain constraints and inflated material costs, which keep real estate prices high [2][7] - The volume of U.S. commercial real estate transactions decreased by 3% year over year in Q2 2024, totaling $86 billion, indicating subdued sales activity [7] Industry Performance - The Zacks Real Estate Development industry ranks 87, placing it in the top 35% of 252 Zacks industries, indicating bright near-term prospects [8] - Aggregate earnings estimates for the industry have increased by 10.6% and 7.8% for 2024 and 2025, respectively, reflecting growing confidence in earnings growth potential [9] Stock Performance - Over the past year, the industry has gained 28%, underperforming the S&P 500's growth of 33.7% and the broader Finance sector's increase of 31.9% [11] - The industry is currently trading at a forward 12-month price-to-earnings (P/E) ratio of 6.73X, significantly lower than the S&P 500's 21.57X and the Finance sector's 16.2X [12] Company Highlights - **Howard Hughes Holdings Inc. (HHH)**: Engaged in the ownership, management, and development of various real estate types, with a Zacks Rank 1 (Strong Buy) and a projected 2024 EPS of $3.28, indicating a significant year-over-year increase [14][16] - **Green Brick Partners, Inc. (GRBK)**: A diversified homebuilding and land development company with a Zacks Rank 3 (Hold) and a projected 2024 EPS of $8.35, suggesting a 36% year-over-year increase [17][19] - **Forestar Group Inc. (FOR)**: Focuses on land acquisition and development for residential lots, with a Zacks Rank 3 and a projected fiscal 2024 EPS of $3.72, indicating an 11.7% year-over-year increase [19][23]

Forestar Group Inc (NYSE: FOR ) is a top idea of mine in the real estate development sector. The company essentially acquires land and develops the infrastructure need to support the growth in creating single-family residential communities, selling finished I'm an insurance Case Manager with a deep interest in investing. My investment philosophy is all about buying high quality stocks and great businesses. My favorite businesses are those led by disciplined capital allocators, earn exceptional returns on ca ...

Table of Contents (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From To 2221 E. Lamar Blvd., Suite 790 Arlington, Texas 76006 (Address of Principal Executive Offices, including Zip Code) (817) 769-1860 (Registrant's telephone number, including area code) Indicate by check mark whether the re ...

Financial Data and Key Metrics Changes - Net income decreased 17% to $38.7 million, or $0.76 per diluted share, compared to $46.8 million, or $0.93 per diluted share in the prior year quarter [35] - Revenues for the quarter decreased 14% to $318.4 million, compared to $368.9 million in the prior year quarter [35] - Pre-tax profit margins were 16.2%, down from 16.9% in the prior year quarter [46] - Book value per share increased 15% to $29.87 [39] Business Line Data and Key Metrics Changes - The company delivered 3,255 lots, generating revenues of $318.4 million during the quarter, which was in line with expectations [29] - Average sales price of lots was $94,000 [35] - SG&A expense increased 11% from the prior year quarter to $29.3 million, with SG&A as a percentage of revenues at 9.2% compared to 7.2% in the prior year quarter [36] Market Data and Key Metrics Changes - The supply of new and existing homes at affordable price points remains limited, with strong demand in markets like Florida, Texas, and the Carolinas [15][36] - There is no significant inventory buildup in affordable price point products, while Colorado shows some softness due to rapid price appreciation [15] Company Strategy and Development Direction - The company aims to double its market share to 5% over the intermediate term, focusing on disciplined capital allocation to enhance long-term value [2] - The company is positioned to return to strong volume growth by accelerating investments in land acquisition and development, expecting to invest approximately $1.6 billion in fiscal 2024 [38] - The company maintains a minimum 15% pre-tax return on average inventory and aims to return initial cash investment within 36 months [37] Management's Comments on Operating Environment and Future Outlook - Elevated mortgage interest rates are impacting affordability, but the underlying fundamentals of a housing shortage remain [1] - Governmental delays have impacted development cycle times, but there are signs of stabilization and potential for reduced cycle times in the future [4][11] - The company remains disciplined and flexible in pursuing new land acquisition opportunities despite market challenges [37] Other Important Information - The total lot position increased 40% from a year ago, with 57% owned and 43% controlled [38] - The company ended the quarter with $1.5 billion of stockholders' equity and a net debt-to-capital ratio of 18.7% [39][50] Q&A Session Summary Question: Changes in lot delivery mix and growth expectations for 2025 - Management indicated no change in the size of communities and confirmed potential for double-digit growth in 2025 based on market conditions [9] Question: Guidance on volume and revenue - Management explained that while volume guidance is down, revenue guidance remains unchanged due to stable average selling prices [14] Question: Market conditions and land acquisition strategy - Management noted strong demand in affordable price points across various states, with no significant inventory buildup, particularly in Florida and Texas [15] Question: Impact of government delays on lot deliveries - Management detailed that government approvals have caused delays in getting lots certified and transacted, affecting development cycles [25]

Exhibit 99.1 ARLINGTON, Texas (Business Wire) - July 18, 2024 — Forestar Group Inc. ("Forestar") (NYSE: FOR), a leading national residential lot developer, today reported financial results for its third fiscal quarter ended June 30, 2024. • Net income of $38.7 million or $0.76 per diluted share • Pre-tax income of $51.6 million, with a pre-tax profit margin of 16.2% • Consolidated revenues of $318.4 million on 3,255 lots sold • Owned and controlled lots increased 40% to 102,100 lots • Return on equity expan ...

Earnings fall short as the housing market slows. Wall Street is taking note, sending Forestar shares down 15% as of 11:15 a.m. ET. Forestar earned $0.76 per share on revenue of $318.4 million in its fiscal third quarter ending June 30, shy of the $0.88 per share in earnings on sales of $380 million that analysts had expected. The company sold 3,255 lots in the quarter, including 352 sold to customers other than D.R. Horton. That total was down 15% year over year. Is Forestar a buy? The company has a contrac ...