Forestar (US:FOR)2021-04-21 03:48Company Overview - Forestar is a residential lot developer focused on short duration, fully-entitled projects, operating in 54 markets across 22 states[3,4] - The company has a strategic relationship with D.R Horton, with D.R Horton currently owning 64% of Forestar[3] - Forestar's owned and controlled lot position is 84,500[5] Financial Highlights - Forestar's revenues are approximately $1.12 billion[5] - The company's liquidity is approximately $500 million[5] - The equity market capitalization is approximately $1.25 billion[5] - Forestar anticipates a 40% to 45% growth in lot deliveries in fiscal year 2021, projecting revenues between $1.20 to $1.25 billion with a pre-tax profit margin of 10.0% to 10.5%[19] Strategic Advantages - Forestar's business model focuses on return-driven residential lot development with a high-turnover, lower-risk strategy[7] - The company is increasing its sourced lots to 48% of total owned lots, up from 31% a year ago[28] - Forestar expects to invest over $1.5 billion in land acquisition and development in fiscal year 2021[23]