Our Strategy

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 entitlement 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 principally by negotiating terms and conditions that yield the highest value generally through lease revenues and royalties, and additional interest in production. Leasing mineral acreage for exploration and production activities creates significant value through lease bonus and ultimately increased production and reserves. 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 rights located in Texas and Louisiana. We remain committed to growing our business and will invest capital principally in our strategic growth corridors through disciplined investments that meet our return criteria.

We fundamentally believe the execution of our strategy will create exceptional long-term value for shareholders.