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 ...

Forestar Group (FOR) shares rallied 6.1% in the last trading session to close at $37.07. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 11.4% gain over the past four weeks.The increased investor optimism in the stock can be attributed to the favorable operating environment.This real estate and natural resources developer is expected to post quarterly earnings of $0.84 per share in its upcoming report, which ...

[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) This section provides the company's unaudited financial information, including statements, notes, management's discussion, market risk disclosures, and controls [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited consolidated financial statements for the quarter ended December 31, 2023, detailing balance sheets, operations, equity, and cash flows with explanatory notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity as of December 31, 2023, and September 30, 2023 Consolidated Balance Sheet Highlights (In millions) | Account | Dec 31, 2023 | Sep 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $458.9 | $616.0 | | Real estate | $2,009.8 | $1,790.3 | | **Total Assets** | **$2,533.8** | **$2,470.7** | | Debt | $705.3 | $695.0 | | **Total Liabilities** | **$1,125.0** | **$1,100.8** | | **Total Equity** | **$1,408.8** | **$1,369.9** | - Total assets increased to **$2.53 billion** as of December 31, 2023, primarily driven by a **$219.5 million** increase in real estate holdings compared to September 30, 2023[10](index=10&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) This section details the company's financial performance for the quarter, including revenues, income, and earnings per share Quarterly Statement of Operations Highlights (In millions, except per share data) | Metric | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Revenues | $305.9 | $216.7 | | Income before income taxes | $51.2 | $27.9 | | Net Income | $38.2 | $20.8 | | Diluted EPS | $0.76 | $0.42 | - Revenues for the quarter increased by **41.2%** year-over-year, leading to an **83.7%** increase in net income and diluted EPS[13](index=13&type=chunk) [Consolidated Statements of Total Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Total%20Equity) This section outlines changes in the company's total equity, primarily driven by net income, for the quarter ended December 31, 2023 - Total equity increased from **$1,369.9 million** at September 30, 2023, to **$1,408.8 million** at December 31, 2023[17](index=17&type=chunk) - The primary driver for the increase in equity during the quarter was the net income of **$38.2 million**[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section presents the company's cash inflows and outflows from operating, investing, and financing activities for the quarter Quarterly Cash Flow Summary (In millions) | Activity | Three Months Ended Dec 31, 2023 | Three Months Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($156.7) | ($49.8) | | Net cash (used in) provided by investing activities | ($0.2) | $1.5 | | Net cash used in financing activities | ($0.2) | ($0.1) | | **Decrease in cash** | **($157.1)** | **($48.4)** | | **Cash at end of period** | **$458.9** | **$216.4** | - The significant use of cash in operating activities was primarily due to a **$209.8 million** increase in real estate investments, reflecting the company's growth strategy[21](index=21&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed explanations of accounting policies, significant transactions, and related party disclosures supporting the financial statements - As of December 31, 2023, D.R. Horton, a related party, owned approximately **63%** of the Company's outstanding common stock[26](index=26&type=chunk) - During the quarter, the company invested **$228.0 million** in acquiring residential real estate and **$226.5 million** in development[31](index=31&type=chunk) - Residential lot sales to D.R. Horton were **$272.8 million** from **2,834 lots** in Q1 FY2024, a substantial increase from **$187.1 million** from **2,094 lots** in the prior year period[60](index=60&type=chunk) - Total debt stood at **$705.3 million**, primarily composed of senior notes due in 2026 and 2028. The company had **$385.7 million** of available capacity under its revolving credit facility[39](index=39&type=chunk)[40](index=40&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strong operational performance, revenue growth, improved profitability, and expanding land position, highlighting robust demand and liquidity - Demand for residential lots remained strong, particularly at affordable price points, leading to a **39%** increase in lot sales compared to the prior year period[75](index=75&type=chunk) Key Operating Metrics (Q1 FY2024 vs Q1 FY2023) | Metric | Q1 FY2024 | Q1 FY2023 | | :--- | :--- | :--- | | Revenues | $305.9M | $216.7M | | Income before taxes | $51.2M | $27.9M | | Lots Sold | 3,150 | 2,263 | | Average Sales Price/Lot | $96,400 | $90,100 | Land and Lot Position | Metric | Dec 31, 2023 | Sep 30, 2023 | | :--- | :--- | :--- | | Lots owned | 55,400 | 52,400 | | Lots controlled | 27,000 | 26,800 | | **Total lots owned and controlled** | **82,400** | **79,200** | - The company maintained a strong liquidity position with **$458.9 million** in cash and **$385.7 million** available on its revolving credit facility. The ratio of net debt to total capital was a low **14.9%** at quarter-end[89](index=89&type=chunk)[90](index=90&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily interest rate fluctuations, and its strategy of using fixed-rate debt to mitigate these risks - The company's main market risk is interest rate risk on its debt[110](index=110&type=chunk) - As of December 31, 2023, debt consisted of **$700 million** in fixed-rate senior notes and a **$9.9 million** fixed-rate note payable. There were no outstanding borrowings under the variable-rate revolving credit facility[111](index=111&type=chunk) [Item 4. Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting - Based on an evaluation by the CEO and CFO, the company's disclosure controls and procedures were deemed effective as of the end of the period covered by the report[112](index=112&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[113](index=113&type=chunk) [PART II — OTHER INFORMATION](index=30&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) This section covers additional information including legal proceedings, insider trading arrangements, and a list of exhibits filed with the report [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the ordinary course of business, with management anticipating no material adverse financial impact - The company is involved in various legal proceedings arising from the ordinary course of business and believes it has adequate reserves for any probable losses[115](index=115&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) This section reports on insider trading plans, confirming no directors or Section 16 officers adopted or terminated Rule 10b5-1 arrangements during the quarter - During the quarter ended December 31, 2023, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements[116](index=116&type=chunk) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists all exhibits accompanying the Form 10-Q, including agreements, certifications, and interactive data files - The exhibits filed with this report include a Separation Agreement, a Consulting Agreement, and certifications from the CEO and CFO pursuant to the Sarbanes-Oxley Act of 2002[118](index=118&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended September 30, 2023 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 of ...

Financial Data and Key Metrics Changes - Net income for Q3 2023 increased by 18% year-over-year to $46.8 million, or $0.93 per diluted share, compared to $39.7 million, or $0.80 per diluted share in the prior year [8][12] - Consolidated revenues rose by 20% to $368.9 million from $308.5 million in the prior year quarter [12] - Pretax income increased by 18% to $62.4 million, with a pretax profit margin of 16.9%, slightly down from 17.1% in the prior year [13] - Gross profit margin was 23%, up 450 basis points sequentially but down 100 basis points from a year ago [13] Business Line Data and Key Metrics Changes - Lot deliveries increased by 10% to 3,812 lots, with an average sales price of $87,700 [12][13] - The company sold lots to 16 customers during the quarter, marking a new quarterly high [15] - 28% of owned lots are under contract to sell, representing approximately $1.4 billion of future revenue [22] Market Data and Key Metrics Changes - The supply of new and existing homes at affordable price points remains limited, despite higher mortgage rates and inflationary pressures [14] - Builder incentives have helped bridge the affordability gap for many homebuyers, leading to increased housing starts [14] - The company is seeing increased demand for finished lots, particularly in markets like Phoenix and Denver [72][74] Company Strategy and Development Direction - The company aims to double its market share to 5% over the intermediate term [32] - Forestar is focused on developing lots for homes at affordable price points, with an emphasis on capital efficiency [15][22] - The company plans to maintain a disciplined approach to capital investment while leveraging its strong balance sheet to capitalize on growth opportunities [25][28] Management's Comments on Operating Environment and Future Outlook - Management noted that while new home starts and sales have been stronger than expected in 2023, mortgage rates at peak levels could impact future demand [30][31] - The company is closely monitoring market conditions and adjusting its strategies to balance pace and price for optimal returns [31] - Management expressed confidence in the company's ability to navigate the current environment and capitalize on opportunities for growth [33] Other Important Information - The company invested approximately $215 million in land and land development during the quarter, with expectations for increased investments in the coming quarters [20] - The company ended the quarter with approximately $780 million of liquidity, including a cash balance of $400 million [23][24] Q&A Session Summary Question: How has core finished lot pricing been trending recently? - Management indicated that pricing has remained consistent, reflecting more in margins than average sales price [43] Question: What are the expectations for gross margin variability in the upcoming quarters? - Management noted that maintaining appropriate pace and meeting builder demand is prioritized over margins, with some price adjustments made as necessary [61] Question: How responsive has builder interest in lots been relative to mortgage rates? - Management observed that builder interest has increased, especially for finished lots, despite rising mortgage rates [74]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Table of Contents 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 June 30, 2023 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 ...

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Forestar Group Inc.'s unaudited consolidated financial statements as of March 31, 2023, and for the three and six months then ended [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to **$2,336.3 million** as of March 31, 2023, while total equity increased to **$1,248.8 million** primarily due to retained earnings Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2023 | September 30, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $286.7 | $264.8 | | Real estate | $1,988.0 | $2,022.4 | | **Total Assets** | **$2,336.3** | **$2,343.0** | | **Liabilities** | | | | Debt | $706.8 | $706.0 | | **Total Liabilities** | **$1,087.5** | **$1,143.7** | | **Equity** | | | | Retained earnings | $555.6 | $507.9 | | **Total Equity** | **$1,248.8** | **$1,199.3** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Revenues decreased to **$301.5 million** for the three months and **$518.2 million** for the six months ended March 31, 2023, leading to a decline in net income Consolidated Statements of Operations Highlights (in millions, except per share data) | Metric | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $301.5 | $421.6 | $518.2 | $829.2 | | Income before income taxes | $35.9 | $63.2 | $63.8 | $116.7 | | Net income | $26.9 | $47.8 | $47.7 | $88.3 | | Diluted EPS | $0.54 | $0.96 | $0.95 | $1.77 | [Consolidated Statements of Total Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Total%20Equity) Total equity increased by **$49.5 million** to **$1,248.8 million** as of March 31, 2023, primarily driven by net income - Total equity grew by **$49.5 million** in the six months ended March 31, 2023, mainly due to retained net income[15](index=15&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly decreased to **$21.3 million** for the six months ended March 31, 2023, with cash and cash equivalents increasing to **$286.7 million** Consolidated Statements of Cash Flows Highlights (in millions) | Cash Flow Activity | Six Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $21.3 | $76.6 | | Net cash provided by investing activities | $1.3 | $2.2 | | Net cash (used in) provided by financing activities | $(0.7) | $1.3 | | **Increase in cash and cash equivalents** | **$21.9** | **$80.1** | | **Cash and cash equivalents at end of period** | **$286.7** | **$233.7** | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes cover accounting policies, segment information, impairment charges, debt structure, and significant related-party transactions with D.R. Horton - As of March 31, 2023, D.R. Horton, Inc. owned approximately **63%** of the Company's outstanding common stock, making it a related party under GAAP[23](index=23&type=chunk) - The company operates through a single real estate segment, acquiring land and developing infrastructure for single-family residential communities, with revenues primarily from selling finished lots to homebuilders[27](index=27&type=chunk) - The company recorded impairment charges of **$19.4 million** during the three months ended March 31, 2023, a significant increase from **$3.8 million** in the prior year period[29](index=29&type=chunk) Revenue Breakdown (in millions) | Revenue Source | Three Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Residential lot sales | $252.9 | $459.5 | | Deferred development lot sales | $7.5 | $14.3 | | Tract sales and other | $41.1 | $44.4 | | **Total Revenues** | **$301.5** | **$518.2** | Debt Composition (in millions) | Debt Instrument | March 31, 2023 | September 30, 2022 | | :--- | :--- | :--- | | Revolving credit facility | $— | $— | | 3.85% senior notes due 2026 | $397.0 | $396.5 | | 5.0% senior notes due 2028 | $297.3 | $297.0 | | Other note payable | $12.5 | $12.5 | | **Total Debt** | **$706.8** | **$706.0** | Lot Sales to D.R. Horton | Metric | Three Months Ended Mar 31, 2023 | Six Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Lots Sold to D.R. Horton | 2,666 | 4,760 | | Revenue from D.R. Horton (millions) | $219.9 | $407.0 | [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 the impact of weakening demand on revenues and net income, while highlighting the company's strong liquidity and strategic relationship with D.R. Horton [Our Operations](index=18&type=section&id=Our%20Operations) Forestar is a national residential lot developer operating in 52 markets, facing weakened demand due to rising interest rates and inflation - The company is a national residential lot developer with operations in **52 markets** in **20 states** as of March 31, 2023[72](index=72&type=chunk) - Demand for residential lots has weakened since Q4 fiscal 2022 and persisted through Q2 fiscal 2023 due to substantially increased mortgage interest rates and elevated inflationary pressures[75](index=75&type=chunk) [Results of Operations](index=19&type=section&id=Results%20of%20Operations) Revenues and net income significantly declined due to reduced residential lot sales, accompanied by increased impairment charges and higher SG&A as a percentage of revenue Residential Lots Sold | Period | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Three Months Ended Mar 31 | 2,979 | 5,788 | (48.5%) | | Six Months Ended Mar 31 | 5,242 | 10,304 | (49.1%) | - The decrease in residential lots sold and related revenues was primarily a result of weakening demand for finished lots as homebuilders reduced their pace of new home starts[80](index=80&type=chunk) - The company recorded non-cash impairment charges of **$19.4 million** in the three months ended March 31, 2023, compared to **$3.8 million** in the prior year period[84](index=84&type=chunk) - SG&A expense as a percentage of revenues was **7.3%** in Q2 2023, up from **5.8%** in Q2 2022, reflecting the impact of lower revenues[86](index=86&type=chunk) [Land and Lot Position](index=21&type=section&id=Land%20and%20Lot%20Position) Total lots owned and controlled decreased to **76,400** as of March 31, 2023, with **15,200** owned lots under contract, primarily to D.R. Horton Land and Lot Position Summary | Category | March 31, 2023 | September 30, 2022 | | :--- | :--- | :--- | | Lots owned | 57,800 | 61,800 | | Lots controlled through purchase contracts | 18,600 | 28,300 | | **Total lots owned and controlled** | **76,400** | **90,100** | [Liquidity and Capital Resources](index=22&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$286.7 million** cash and **$367.4 million** available credit, improving its net debt to total capital ratio to **25.2%** - At March 31, 2023, the company had **$286.7 million** of cash and cash equivalents and **$367.4 million** of available borrowing capacity on its revolving credit facility[90](index=90&type=chunk) Key Leverage Ratios | Ratio | March 31, 2023 | September 30, 2022 | | :--- | :--- | :--- | | Debt to total capital | 36.2% | 37.1% | | Net debt to total capital | 25.2% | 26.9% | - The company has a **$410 million** senior unsecured revolving credit facility maturing in October 2026, with no borrowings outstanding at March 31, 2023[93](index=93&type=chunk) - Net cash provided by operating activities decreased to **$21.3 million** in the six months ended March 31, 2023, from **$76.6 million** in the prior year period[102](index=102&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 risk on its fixed-rate debt, with no exposure to foreign currency or commodity price fluctuations - The company is subject to interest rate risk on its debt, with fixed-rate debt including **$400 million** of 3.85% senior notes, **$300 million** of 5.0% senior notes, and a **$12.5 million** other note as of March 31, 2023[113](index=113&type=chunk)[114](index=114&type=chunk) - There were no outstanding borrowings on the company's variable-rate revolving credit facility at March 31, 2023[114](index=114&type=chunk) - The company has no exposure to foreign currency fluctuations and no significant exposure to commodity price fluctuations[115](index=115&type=chunk)[116](index=116&type=chunk) [Item 4. Controls and Procedures](index=25&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal controls during the quarter - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[117](index=117&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended March 31, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[118](index=118&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=26&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, for which adequate reserves have been established, with no anticipated material adverse effect on financial position - The company believes it has adequate reserves for probable losses from legal proceedings and does not anticipate a material adverse effect on its financial position or long-term operations[119](index=119&type=chunk) [Item 6. Exhibits](index=27&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The report includes certifications from the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL data files[121](index=121&type=chunk) SIGNATURE - The report was signed on April 24, 2023, by James D. Allen, Executive Vice President and Chief Financial Officer, on behalf of Forestar Group Inc[127](index=127&type=chunk)

Financial Data and Key Metrics Changes - In Q1 2023, net income attributable to the company was $20.8 million or $0.42 per diluted share, down from $40.5 million or $0.81 per diluted share in the prior year quarter [11] - Consolidated revenues for the quarter totaled $216.7 million, compared to $407.6 million during Q1 2022 [11] - Gross profit margin increased by 390 basis points to 21.9%, while pre-tax profit margin was 12.9%, a decrease of 20 basis points from the previous year [81] Business Line Data and Key Metrics Changes - The company sold 2,263 lots during the quarter with an average sales price of $90,100, which is expected to fluctuate based on geographic location and lot size mix [80] - 7% of first quarter deliveries were sold to customers other than D.R. Horton, down from 11% in the prior year quarter [14] - Approximately 30% of owned lots are under contract to sell, representing about $1.5 billion of future revenue [17] Market Data and Key Metrics Changes - New home sales fell 15% in November and housing starts were down 25% in December from a year ago, leading to a revenue decline of nearly 50% [4] - Single-family home starts fell roughly 25% in December from the previous year [12] - The company noted that while materials like concrete and cement are challenging to secure, the cost to develop residential lots continued to decline [12] Company Strategy and Development Direction - The company has been proactively reducing land acquisition over the past 18 months and staging development activity to prepare for increased demand for residential lots [9] - The capital structure and operational flexibility are highlighted as competitive advantages, allowing the company to navigate changing economic conditions effectively [22] - The company plans to leverage its platform and balance sheet to take advantage of opportunities to build shareholder value [26] Management's Comments on Operating Environment and Future Outlook - Management commented on the housing market's transition and the expectation that homebuilders will shift towards buying finished lots from third-party developers [24] - The company is maintaining a strong balance sheet with significant liquidity and modest leverage, ending the quarter with over $580 million of liquidity [21] - Management expressed optimism about the company's ability to execute well and consolidate market share despite the challenging environment [33] Other Important Information - The company incurred $2.4 million of option deposits and due diligence write-offs in the quarter [16] - Total debt at December 31 was $706 million, with a net debt to capital ratio of 28.7%, down from 33.9% in the prior year [20] Q&A Session Summary Question: Will the company continue to increase its market share with D.R. Horton? - Management expects that market share within D.R. Horton will increase, although the pace may be gradual [41] Question: Are there opportunities to buy discounted land or distressed deals? - Management indicated that they have not seen significant oversupply in the market and are monitoring specific markets like Arizona and Colorado for potential risks [43] Question: What is the outlook for average sales price (ASP) in 2023? - Management anticipates that ASP may trend down slightly from $90,100 due to market conditions and geographic mix [46] Question: Are other developers exiting the market? - Management noted that smaller developers are struggling to secure financing, leading to a slowdown in transactions [51] Question: How is the company managing pricing and potential impairments? - Management stated that they have not seen widespread impairments and are actively monitoring projects for indicators of impairment [58]

Investor Presentation Q1 |23 FORESTAR This presentation may include "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. 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. ...

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 December 31, 2022 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 Jurisdict ...