[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section provides the unaudited consolidated financial statements for the quarter ended June 30, 2024, prepared in accordance with U.S. GAAP - The unaudited financial statements include all necessary adjustments for a fair presentation of interim period results, as per management's opinion[153](index=153&type=chunk) - These financial statements should be read in conjunction with the audited financial statements from the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023[153](index=153&type=chunk) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets increased to **$2,675.0 million**, driven by real estate, with total liabilities at **$1,162.1 million** and equity at **$1,512.9 million** Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2024 | September 30, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$2,675.0** | **$2,470.7** | | Cash and cash equivalents | $359.2 | $616.0 | | Real estate | $2,238.7 | $1,790.3 | | **Total Liabilities** | **$1,162.1** | **$1,100.8** | | Debt | $706.1 | $695.0 | | **Total Equity** | **$1,512.9** | **$1,369.9** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the nine months ended June 30, 2024, net income rose to **$121.8 million** on **$958.0 million** revenue, though the third quarter saw a decline in both metrics Statement of Operations Summary (in millions, except per share data) | Metric | Nine Months Ended June 30, 2024 | Nine Months Ended June 30, 2023 | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $958.0 | $887.1 | $318.4 | $368.9 | | Income before income taxes | $161.6 | $126.2 | $51.6 | $62.4 | | Net income | $121.8 | $94.5 | $38.7 | $46.8 | | Diluted net income per share | $2.40 | $1.89 | $0.76 | $0.93 | [Consolidated Statements of Total Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Total%20Equity) Total equity increased to **$1,512.9 million** by June 30, 2024, primarily driven by **$121.9 million** in net income and common stock issuance proceeds Changes in Total Equity (in millions) | Description | Amount | | :--- | :--- | | Balance at September 30, 2023 | $1,369.9 | | Net income (9 months) | $121.9 | | Issuance of common stock | $19.7 | | Other adjustments | ($0.5) | | **Balance at June 30, 2024** | **$1,512.9** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$277.6 million** for the nine months ended June 30, 2024, primarily due to increased real estate investments, leading to a **$256.8 million** decrease in cash Cash Flow Summary (Nine Months Ended June 30, in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(277.6) | $136.2 | | Net cash provided by investing activities | $3.7 | $0.8 | | Net cash provided by (used in) financing activities | $17.1 | $(0.8) | | **(Decrease) increase in cash** | **$(256.8)** | **$136.2** | | Cash at end of period | $359.2 | $401.0 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail accounting policies, segment operations as a single real estate entity, D.R. Horton's **62%** majority ownership, and the **$706.1 million** debt structure, including an undrawn **$410 million** credit facility - As of June 30, 2024, D.R. Horton owned approximately **62%** of the Company's outstanding common stock, classifying it as a related party under GAAP[35](index=35&type=chunk)[137](index=137&type=chunk) - The company operates as a single real estate segment, focused on acquiring land, installing infrastructure, and selling residential lots to homebuilders[156](index=156&type=chunk)[178](index=178&type=chunk) Debt Composition as of June 30, 2024 (in millions) | Debt Instrument | Carrying Amount | | :--- | :--- | | 3.85% senior notes due 2026 | $398.2 | | 5.0% senior notes due 2028 | $298.0 | | Other note payable | $9.9 | | **Total Debt** | **$706.1** | - The company maintains a **$410 million** senior unsecured revolving credit facility, with no outstanding borrowings and **$385.2 million** of available capacity as of June 30, 2024[20](index=20&type=chunk)[75](index=75&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong demand for residential lots, driving an **8%** revenue increase for the nine-month period, expanding lot position to **102,100**, and maintaining strong liquidity, despite quarterly impacts from reduced inventory - Demand for residential lots, especially at affordable price points, remained strong, contributing to an **8%** revenue increase for the nine months ended June 30, 2024[65](index=65&type=chunk) - The company's total lot position expanded to **102,100** lots by June 30, 2024, comprising **57,900** owned and **44,200** controlled lots[64](index=64&type=chunk)[240](index=240&type=chunk) - The company is well-positioned to consolidate market share, supported by low net leverage, strong liquidity, a diverse lot portfolio, and its strategic relationship with D.R. Horton[212](index=212&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Nine-month revenues increased to **$958.0 million**, driven by a **7%** rise in lots sold and higher average sales prices, with D.R. Horton sales as a primary contributor, while SG&A expenses also increased Residential Lots Sold | Period | Lots Sold | Average Sales Price | | :--- | :--- | :--- | | Nine Months Ended June 30, 2024 | 9,694 | $96,300 | | Nine Months Ended June 30, 2023 | 9,054 | $87,300 | | Three Months Ended June 30, 2024 | 3,255 | $94,000 | | Three Months Ended June 30, 2023 | 3,812 | $87,700 | Lot Sales Revenue by Customer (Nine Months Ended June 30, in millions) | Customer | 2024 | 2023 | | :--- | :--- | :--- | | D.R. Horton | $846.6 | $677.4 | | Other Customers | $86.7 | $112.9 | | **Total** | **$933.3** | **$790.3** | - SG&A expense increased to **$86.5 million** for the nine months ended June 30, 2024, from **$71.3 million** in the prior year, primarily due to increased headcount supporting business growth[238](index=238&type=chunk) - No impairment charges were recorded in the three and nine months ended June 30, 2024, contrasting with **$19.4 million** in the nine months ended June 30, 2023[70](index=70&type=chunk) [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$359.2 million** cash and **$385.2 million** available credit, a net debt to total capital ratio of **18.7%**, and raised **$19.7 million** from common stock issuance - As of June 30, 2024, the company held **$359.2 million** in cash and cash equivalents, with **$385.2 million** available on its revolving credit facility[99](index=99&type=chunk) - The ratio of net debt to total capital stood at **18.7%** as of June 30, 2024[241](index=241&type=chunk) - Net cash used in operating activities totaled **$277.6 million** for the nine months ended June 30, 2024, primarily due to increased real estate investment[227](index=227&type=chunk)[135](index=135&type=chunk) - The company issued **546,174** shares of common stock under its at-the-market program, generating **$19.7 million** in net proceeds during the nine months ended June 30, 2024[167](index=167&type=chunk)[228](index=228&type=chunk)[246](index=246&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=25&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its debt, managed through a mix of fixed and variable-rate instruments, with predominantly fixed-rate debt and no outstanding variable-rate borrowings as of June 30, 2024 - The company's primary market risk is interest rate risk, which is managed through a combination of fixed and variable-rate debt[84](index=84&type=chunk)[252](index=252&type=chunk) - As of June 30, 2024, fixed-rate debt totaled **$709.9 million**, with no outstanding borrowings on the **$410 million** variable-rate revolving credit facility[116](index=116&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2024, with no material changes in internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[253](index=253&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2024[117](index=117&type=chunk) [PART II — OTHER INFORMATION](index=26&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, for which management believes adequate reserves are established, expecting no material adverse effect on financial position or long-term results - The company is involved in various legal proceedings arising in the ordinary course of business[86](index=86&type=chunk)[118](index=118&type=chunk) - Management believes adequate reserves are established, and the outcome of these proceedings is not expected to materially affect the company's financial position, long-term results, or cash flows[86](index=86&type=chunk)[170](index=170&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO and CFO certifications under Sarbanes-Oxley Act Sections 302 and 906, and Inline XBRL documents - The report includes CEO and CFO certifications as required by Sections 302 and 906 of the Sarbanes-Oxley Act[255](index=255&type=chunk) - Interactive Data Files, including XBRL Instance Document and various Linkbase Documents, are electronically submitted with the report[255](index=255&type=chunk) [SIGNATURE](index=28&type=section&id=SIGNATURE) The quarterly report concludes with the formal signature of James D. Allen, Executive Vice President and Chief Financial Officer, dated July 22, 2024 - The report was formally signed by James D. Allen, Executive Vice President and Chief Financial Officer, on behalf of Forestar Group Inc[113](index=113&type=chunk)[124](index=124&type=chunk) - The signature date for the report is July 22, 2024[113](index=113&type=chunk)

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 ...

This quarterly report represents an earnings surprise of -14.61%. A quarter ago, it was expected that this real estate and natural resources developer would post earnings of $0.84 per share when it actually produced earnings of $0.89, delivering a surprise of 5.95%. Forestar Group, which belongs to the Zacks Real Estate - Development industry, posted revenues of $318.4 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 14.06%. This compares to year-ago revenues of $368.9 millio ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From To Commission File Number: 001-33662 FORESTAR GROUP INC. (Exact Name of Registrant as Specified in Its Charter) (State or Other Jurisdiction ...

The Zacks Real Estate – Development industry is likely to face challenges due to the current high interest rates and stringent credit conditions, with investors continuing to delay the timeline of their transactions in anticipation of better price discovery. Supply chain constraints, macroeconomic uncertainty and geopolitical tensions are projected to inflate material expenses, consequently impeding the speed of new project completions.However, recovery in demand for certain real-estate property types and a ...

The company easily topped analyst estimates in its fiscal second quarter, but its immediate future might not be so rosy.The stock of Forestar Group (FOR 0.99%), a publicly traded subsidiary of big home builder D.R. Horton that concentrates on developing real estate lots, hasn't built much wealth for investors in recent days.According to data compiled by S&P Global Market Intelligence, Forestar's share price was down by nearly 17% week to date as of early Friday morning. It seems the market wasn't impressed ...

Financial Results The Company will host a conference call today (Thursday, April 18) at 5:00 p.m. Eastern Time. The dial-in number is 888-506-0062, the entry code is 585201 and the call will also be webcast from the Company's website at investor.forestar.com. (1) Excludes any impact from change in contract liabilities. Exhibit 99.1 Capital Structure, Leverage and Liquidity | --- | --- | --- | --- | |------------------------------------------------------------------------------------------------------------- ...

Forestar Group (FOR) came out with quarterly earnings of $0.89 per share, beating the Zacks Consensus Estimate of $0.84 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.95%. A quarter ago, it was expected that this real estate and natural resources developer would post earnings of $0.56 per share when it actually produced earnings of $0.76, delivering a surprise of 35.71%.Over the ...

ARLINGTON, Texas--(BUSINESS WIRE)--Forestar Group Inc. (NYSE: FOR) announced today that the Company will release financial results for its second quarter ended March 31, 2024 on Thursday, April 18, 2024 before the market opens. The Company will host a conference call that afternoon at 5:00 p.m. Eastern Time (ET). The dial-in number is 888-506-0062. When calling, please reference access code 585201. Participants are encouraged to call in five minutes before the call begins (4:55 p.m. ET). The call will also ...