Forestar Group Inc. has recently released its 10-Q report, revealing key financial and operational details. The company operates as a residential lot development firm, primarily focused on acquiring land and developing infrastructure for single-family residential communities. It sells these finished lots to local, regional, and national homebuilders and is a majority-owned subsidiary of D.R. Horton, Inc.
In the 10-Q report, Forestar disclosed that for the six months ended March 31, 2024, it sold 6,439 lots with an average sales price of $97,400. At the end of March 31, 2024, the company's lot position consisted of 96,100 residential lots, of which approximately 57,400 were owned and 38,700 were controlled through purchase contracts. Of the 57,400 owned lots, approximately 18,000 were under contract to be sold for an aggregate remaining sales price of approximately $1.6 billion.
The report also highlighted the company's revenue growth, with a 23% increase from the prior year period, driven by improved demand for finished lots as homebuilders increased their pace of new home starts, particularly at affordable price points. Forestar's liquidity position was strong, with $416.2 million of cash and cash equivalents and $382.0 million of available borrowing capacity on its revolving credit facility at the end of March 31, 2024. The company's ratio of net debt to total capital was 16.4%, indicating a low leverage position.
The 10-Q report also discussed Forestar's operational results, including its residential lot sales, cost of sales, selling, general and administrative expenses, and income before income taxes. Additionally, it provided details on the company's land and lot position, liquidity, and capital resources.
As a result of these announcements, the company's shares have moved 1.5% on the market, and are now trading at a price of $31.66. If you want to know more, read the company's complete 10-Q report here.
