Forestar Group Inc. (NYSE: FOR) today reported second quarter 2013 net income of approximately $0.5 million, or $0.02 per diluted share, compared with second quarter 2012 net income of approximately $0.8 million, or $0.02 per diluted share outstanding. Second quarter 2012 results include after-tax expenses of approximately ($1.6) million, or ($0.05) per diluted share, associated with the acquisition of Credo Petroleum Corporation.
“During second quarter, we remained on track executing our Triple in FOR strategic initiatives. In real estate, residential lot demand remains favorable with option contracts with homebuilders at the strongest level since the start of the housing recovery and higher average per lot pricing compared with second quarter 2012. We continue to focus on building a solid multifamily pipeline in our target markets, which continue to exhibit favorable multifamily market conditions. During the quarter, we began construction on a new multifamily community near Dallas and started pre-leasing at Eleven in Austin. Oil and gas operations continued to gain momentum, with accelerating oil production in the Bakken and Three Forks formations in North Dakota and Lansing-Kansas City formation in Kansas and Nebraska. We are focused on accelerating value realization and capitalizing on strategic and disciplined growth opportunities,” said Jim DeCosmo, president and chief executive officer of Forestar Group.
Second Quarter 2013 Significant Highlights
- Sold 360 developed residential lots, with average pricing per lot up nearly 29% compared with second quarter 2012
- Oil production up nearly 170% compared with second quarter 2012, principally due to the acquisition of Credo Petroleum
- Acquired leasehold interests in over 17,000 net mineral acres, principally located in Nebraska and Kansas
Forestar manages its operations through three business segments: real estate, oil and gas and other natural resources.REAL ESTATE Second Quarter 2013 Significant Highlights
- Sold 360 developed residential lots – Over 1,900 lots under option contracts with homebuilders
- Residential lot margins up 66% compared with second quarter 2012
- Sold 1,042 acres of undeveloped land for nearly $2,580 per acre
- Sold 34 commercial acres for over $103,000 per acre
- Began construction on Midtown Cedar Hill, 354-unit multifamily community near Dallas, Texas
- Pre-leasing begins at Eleven, 257-unit multifamily community in Austin, Texas
|($ in millions)||2Q 2013||2Q 2012||1Q 2013|