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FORESTAR RE GROUP Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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FORESTAR RE GROUP (FOR) filed Quarterly Report for the period ended 2010-06-30.

Forestar Re Group has a market cap of $556.1 million; its shares were traded at around $15.27 with and P/S ratio of 3.8. FOR is in the portfolios of John Keeley of Keeley Fund Management, Westport Asset Management, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC.

Highlight of Business Operations:

At second quarter-end 2010, assets held for sale includes about 74,000 acres of undeveloped land with a carrying value of $17,977,000 and related timber with a carrying value of $10,002,000. We continue to actively market this land but did not sell any land in first six months 2010 in accordance with these initiatives. Market conditions for timberland have deteriorated since second quarter 2009 due to limited capital availability, increased investor return requirements and alternative investment options for buyers in the marketplace. As a result of these market conditions, additional time may be required to complete the sale of these assets.

In second quarter and first six months 2010, cost of sales include a $900,000 non-cash impairment charge related to a residential real estate project located near Salt Lake City, Utah. In first six months 2009, cost of sales include a $600,000 non-cash impairment charge related to a condominium project in Austin, Texas.

In second quarter 2010, operating expenses principally consist of $2,096,000 in property taxes, $1,434,000 in employee compensation and benefits, $892,000 in professional services and $633,000 in depreciation. In second quarter 2009, operating expenses principally consist of $2,682,000 in property taxes, $1,281,000 in employee compensation and benefits, $740,000 in professional services and $510,000 in depreciation. Property taxes decreased $586,000 principally due to selling over 110,000 acres of timberland in 2009.

In first six months 2010, operating expenses principally consist of $4,184,000 in property taxes, $3,130,000 in employee compensation and benefits, $1,434,000 in professional services and $1,448,000 in depreciation. In first six months 2009, operating expenses principally consist of $5,508,000 in property taxes, $3,083,000 in employee compensation and benefits, $1,379,000 in professional services and $1,038,000 in depreciation. Property taxes decreased $1,324,000 principally due to selling over 110,000 acres of timberland in 2009, and depreciation increased $410,000 principally due to improvements related to commercial operating properties.

Read the The complete Report

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