Forestar Group Inc. ("Forestar") (NYSE: FOR), a leading national residential lot developer, today reported financial results for its first quarter ended December 31, 2019. Net income attributable to Forestar for the first quarter of fiscal 2020 increased 412% to $16.9 million, or $0.35 per diluted share, compared to $3.3 million, or $0.08 per diluted share in the same quarter of fiscal 2019. Revenues for the first quarter of fiscal 2020 increased 542% to $247.2 million from $38.5 million in the same quarter of fiscal 2019. Residential lots sold in the quarter increased 368% to 2,422 lots compared to 518 lots in the same quarter of fiscal 2019.

The Company's lot position at December 31, 2019 consisted of 44,500 lots, of which 32,200 were owned and 12,300 were controlled through purchase contracts. Of the Company's owned lot position, 25,600 lots, or 80%, were under contract to sell or subject to a right of first offer to D.R. Horton, Inc. ("D.R. Horton") at December 31, 2019.

The Company ended the first quarter with $373.3 million of unrestricted cash, $351.3 million of available borrowing capacity on its unsecured revolving credit facility and a net debt to total capital ratio of 9.7%. Net debt to total capital consists of debt net of unrestricted cash divided by stockholders’ equity plus debt net of unrestricted cash.

Donald J. Tomnitz, Chairman of the Board, said, “Forestar is a highly differentiated, national residential lot manufacturer operating in over 50 markets across the United States. Our team delivered a solid first quarter and made significant progress toward executing on our plans for fiscal 2020. Our strategic relationship with D.R. Horton, the nation’s largest homebuilder, continues to support the rapid expansion of our operating platform and de-risks our significant growth expectations. Forestar's returns-focused business model is centered on our high turnover, lower risk lot manufacturing strategy, and we are well-positioned to consolidate market share in the under-served lot development market that lacks well-capitalized and national participants. We are excited about the opportunities ahead and continue to expect to deliver 10,000 lots during fiscal 2020 and 12,000 lots in fiscal 2021."

Conference Call and Webcast Details
The Company will host a conference call today (Thursday, January 23) at 5:00 p.m. Eastern Time. The dial-in number is 877-407-9205, and the call will also be webcast from the Company’s website at investor.forestar.com.

About Forestar Group Inc.
Forestar Group Inc. is a residential lot development company with operations in 51 markets and 20 states at December 31, 2019 and is a majority-owned subsidiary of D.R. Horton, the largest homebuilder by volume in the United States since 2002.

Forward-Looking Statements
Portions of this document may constitute “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although Forestar believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. All forward-looking statements are based upon information available to Forestar on the date this release was issued. Forestar does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements in this release include that our strategic relationship with D.R. Horton, the nation’s largest homebuilder, continues to support the rapid expansion of our operating platform and de-risks our significant growth expectations and that Forestar's returns-focused business model is centered on our high turnover, lower risk lot manufacturing strategy, and we are well-positioned to consolidate market share in the under-served lot development market that lacks well-capitalized and national participants. Forward-looking statements also include that we are excited about the opportunities ahead and continue to expect to deliver 10,000 lots during fiscal 2020 and 12,000 lots in fiscal 2021.

Factors that may cause the actual results to be materially different from the future results expressed by the forward-looking statements include, but are not limited to: the effect of D.R. Horton's controlling level of ownership on us and the holders of our securities; our ability to realize the potential benefits of the strategic relationship with D.R. Horton; the effect of our strategic relationship with D.R. Horton on our ability to maintain relationships with our vendors and customers; demand for new housing, which can be affected by a number of factors including the availability of mortgage credit, job growth and fluctuations in interest rates; competitive actions by other companies; accuracy of estimates and other assumptions related to investment in and development of real estate, the expected timing and pricing of land and lot sales and related cost of real estate sales; our ability to comply with our debt covenants, restrictions and limitations; our ability to hire and retain key personnel; changes in governmental policies, laws or regulations and actions or restrictions of regulatory agencies; general economic, market or business conditions where our real estate activities are concentrated; our ability to achieve our strategic initiatives; our ability to obtain future entitlement and development approvals; our ability to obtain or the availability of surety bonds to secure our performance related to construction and development activities and the pricing of bonds; obtaining reimbursements and other payments from governmental districts and other agencies and timing of such payments; the levels of resale housing inventory in our projects and the regions in which they are located; fluctuations in costs and expenses, including impacts from shortages in materials or labor; the opportunities (or lack thereof) that may be presented to us and that we may pursue; the strength of our information technology systems and the risk of cybersecurity breaches; and the conditions of the capital markets and our ability to raise capital to fund expected growth. Additional information about issues that could lead to material changes in performance is contained in Forestar's annual report on Form 10-K, which is filed with the Securities and Exchange Commission.

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