Our Strategy | Land and Resources
Responsibly Managing Land and Natural Resources for
We have the proven ability to develop multiple dimensions of value from land and natural resources.
We have a strong portfolio of competitive low-basis land and natural resources which are well located in attractive real estate markets, active oil and gas basins and near municipalities seeking competitive groundwater solutions. These assets provide us with a long-term competitive advantage and position our business to benefit from economic growth. Our team has the proven ability to identify and deliver multiple dimensions of value from land and natural resources – above and below the ground, today and in the future. We achieve this value creation potential through our thoughtful and comprehensive evaluation of every acre and every asset in our portfolio.
We are focused on maximizing long-term real estate values through entitlement and development of strategically located residential and mixed-use communities. Moving land through entitlement creates significant real estate value. Once entitlements are secured, additional investment in development is driven by a return on capital discipline. Base entitlements typically include zoning, access to water, sewer and roads. Additional entitlements such as flexible land use provisions, annexation, and the creation of local financing districts which provide Forestar a mechanism for reimbursement of major infrastructure costs, generate additional value for our business.
We maximize the value of our mineral assets by promoting leasing, exploration and production activity by increasing the acreage leased, lease rates, royalty interests and negotiating additional interests in production. In addition, we may elect to participate in working interests in high-quality, lower-risk, conventional and horizontal oil and natural gas prospects.
In addition, we realize value from our undeveloped lands by selling wood fiber and leasing our land for recreational purposes.
We are evaluating alternatives to realize the potential value from water, principally from our interests located in Texas.
We remain committed to growing our business and will invest capital principally in our strategic growth corridors through disciplined investments that prove up our assets and meet our return criteria. This pledge to take land to its highest purpose is founded on our core values to responsibly manage land and natural resources for future generations. This vision, in combination with our competitive portfolio of assets, a dynamic and experienced management team, and a commitment to growth ideally positions our business for today and the future.
We fundamentally believe the execution of our strategy will create exceptional long-term value for shareholders.