Forestar Group Inc. (NYSE: FOR)

Forestar Group Inc. is a national well capitalized residential lot development company focused primarily on making investments in land acquisition and development to sell finished single family residential lots to homebuilders. The company is listed on the New York Stock Exchange under the ticker symbol FOR and also trades on the NYSE Texas. Forestar Group Inc. operates in 64 markets across 23 states and aims to consolidate market share in the highly fragmented lot development industry. Its strategy emphasizes entitled short duration projects that can be developed in phases to match market demand and improve capital efficiency. The company also engages in lot banking and land banking to use available capital before deploying it into longer term development projects.

The company generates revenue primarily from the sale of finished single family residential lots to homebuilders. In addition the company earns income from lot banking and land banking activities where it purchases finished lots or undeveloped land with the intent to sell them within a short time frame. Under the Master Supply Agreement the company supplies finished lots to D. R. Horton on market terms and both parties collaborate to identify land development opportunities. For the year ended September 30 2025 the company sold 14,240 lots with an average sales price of $108,400. At September 30 2025 the lot position consisted of 99,800 residential lots of which approximately 65,100 were owned and 34,700 were controlled through purchase contracts. Of the owned lots about 23,800 were under contract to be sold representing an aggregate remaining sales price of approximately $2.1 billion.

The company operates through a single reportable segment.

• Real Estate Segment: This segment engages in land acquisition entitlement development and sale of finished single family residential lots to homebuilders and also conducts lot banking and land banking activities to manage short term investments.

Forestar Group Inc. holds a notable position in the lot development industry due to its geographic diversification and focus on entitled short duration projects which enhance capital efficiency and returns. The company faces competition from numerous local regional and national developers and homebuilders but the industry remains highly fragmented with no single competitor holding meaningful market share. Its relationship with D. R. Horton provides a steady demand channel and access to shared services which strengthens its competitive stance. The company's emphasis on entitled land reduces development risk and allows it to move quickly from acquisition to sale. By maintaining a diversified footprint across multiple states Forestar Group Inc. mitigates the impact of local economic cycles on its earnings.

The company's customers are primarily local regional and national homebuilders. D. R. Horton is a significant customer under the Master Supply Agreement representing a substantial portion of the company's lot sales. Forestar Group Inc. also markets some of its communities to build to rent operators seeking rental housing projects. In addition the company serves individual consumers who purchase homes built on its lots through their chosen homebuilder.