Forestar Real Estate Group Inc. (NYSE: FOR) is engaged in real estate development and mineral operations in the United States. The company owns directly or through ventures about 373,000 acres of real estate located in ten states and thirteen markets and about 622,000 net mineral acres of oil and gas mineral interests.
The company operates in two segments: real estate and natural resources.
The real estate segment secures entitlements and develops infrastructure on its lands, primarily for single-family residential and mixed-use communities. The company owns approximately 303,000 acres in a broad area around Atlanta, Georgia, with the balance located primarily in Texas. Forestar also actively invest in new projects principally in its strategic growth corridors, which are regions of accelerated growth across the southern half of the United States that possess key demographic and growth characteristics that make them attractive for long-term real estate investment.
The company's real estate projects are located among the fastest growing markets in the United States. Forestar has 24 real estate projects representing almost 29,000 acres in the entitlement process, and 78 entitled, developed or under development projects in eight states and 12 markets encompassing approximately 16,000 remaining acres, comprised of about 30,000 residential lots and about 1,900 commercial acres.
The natural resources segment is focused on maximizing the value from royalties and other lease revenues from its oil and gas mineral interests located in Texas, Louisiana, Alabama and Georgia. In addition, the company sells wood fiber from its land, primarily in Georgia, and lease land for recreational uses. The company also has a 45% nonparticipating royalty interest in groundwater produced or withdrawn for commercial purposes or sold from approximately 1.38 million acres in Texas, Louisiana, Georgia, and Alabama.
