Forestar Group(NYSE) FOR

Forestar Group Inc. prepares land for new housing communities. It helps homebuilders by providing ready-to-build residential lots. The company focuses on affordable sites for entry-level home buyers.

What Does Forestar Build?

• Residential Lot Development: Buying land and securing legal development permits to build infrastructure for single-family homes.
• Lot Banking: Investing in finished lots for short periods to use cash before starting longer development projects.
• Tract Sales: Selling large pieces of undeveloped land or specific sites meant for apartment buildings to builders.

Strategic Land and Capital Moves

• Established an at-the-market equity offering program in November 2024, which allows the company to sell shares directly to the open market.
• Issued $500 million in senior notes due 2033 during March 2025 to manage the long-term capital structure.
• Repurchased $329.4 million of senior notes due 2026 in March 2025 to reduce near-term debt obligations.
• Increased revolving credit facility capacity to $715 million through additional bank commitments in October 2025 and March 2026.
• Repaid a $9.9 million non-recourse note payable in December 2025.

The Advantage of National Scale

Forestar benefits from a strategic relationship with D.R. Horton, which owns 62% of the company. This partnership provides a stable customer for developed lots while the company operates across 65 different markets.

A Look at the Numbers

• Total revenues were $1.1 billion in the nine months ended June 30, 2026, up 6% year over year.
• Net income attributable to the company reached $83.5 million for the nine-month period ended June 30, 2026.
• Sold 8,541 residential lots during the nine months ended June 30, 2026. The average sales price per lot rose 8% year over year to $113,000.
• Available liquidity was $1.1 billion as of June 30, 2026, consisting of cash and revolving credit capacity.

Steady Evolution in Land Development

Forestar has transitioned into a focused residential lot developer with a national footprint and strong ties to D.R. Horton. Its disciplined capital management and focus on affordable price points support its position in the land industry.