Forestar Group Inc. (NYSE: FOR) today reported first quarter 2014 net income of approximately $8.3 million, or $0.19 per diluted share outstanding, compared with first quarter 2013 net income of approximately $4.0 million, or $0.11 per diluted share outstanding.
“During first quarter, record residential lot sales activity was fueled by growing builder demand for lots in high quality locations. We also increased lot development activities in existing communities in response to higher demand, with the majority of lots being developed already under contract with homebuilders. Multifamily market conditions remained strong in our target markets, and we continue to grow our multifamily business, finishing the quarter with four projects under construction and adding two new sites to our development pipeline. We continued to strengthen our real estate portfolio through the acquisition of our partner's interest in Lantana, an award-winning community near Dallas. Oil and gas activity continued to be negatively impacted by severe weather conditions in North Dakota, however, production in the Bakken and Three Forks formations in North Dakota and the Lansing-Kansas City formation in Kansas and Nebraska is expected to accelerate going forward. We are focused on executing and delivering our Growing FORward strategic initiatives to grow through strategic and disciplined investment and increase returns,” said Jim DeCosmo, president and chief executive officer of Forestar Group.
First Quarter 2014 Significant Highlights
- Sold 974 developed residential lots, including 367 bulk lot sales, up over 118% compared with first quarter 2013, with 831 acres of residential tract sales
- Oil production up over 16% compared with first quarter 2013, with 21 new gross wells drilled reaching total depth in first quarter 2014
Forestar manages its operations through three business segments: real estate, oil and gas and other natural resources.REAL ESTATE First Quarter 2014 Significant Highlights (Includes Ventures)
- Sold 9,329 acres of undeveloped land for over $2,100 per acre
- Sold 974 developed residential lots, including 367 bulk lot sales from two non-core communities; over 1,400 lots under option contracts with homebuilders
- Sold 831 acres of residential tracts for over $1,800 per acre
- Acquired partner's interest in Lantana master-planned community near Dallas for $8 million
|($ in millions)||1Q 2014||1Q 2013||4Q 2013|