Forestar Group

Forestar Group

Forestar Group operates as a residential lot development company, majority-owned by D.R. Horton, the largest homebuilder in the United States by volume. The firm was originally incorporated in 1955 and has operated in its current form since a 2017 recapitalization that gave Horton a 75% controlling stake. Executive Chairman Donald Tomnitz and President and CEO Anthony Oxley lead the firm from its headquarters in Arlington, Texas. The company acquires entitled and developed land, then puts lots under development for sale primarily to D.R. Horton, but also to other national and regional homebuilders. Its asset base is concentrated in three product types: residential single-family lots, residential tract development, and mixed-use projects. Geographic exposure covers high-growth Sun Belt markets including Texas, Florida, Georgia, and the Carolinas, as well as markets in the Midwest and West. The firm reported $1.5 billion in revenue for fiscal 2023, developing and delivering over 18,000 lots during the year. Forestar employs a capital-light model by partnering with D.R. Horton on lot takedown schedules and using a revolving credit facility for land acquisitions. The company's lot pipeline is expanding at double-digit annual rates; in fiscal 2023 it grew to 102,100 controlled lots, a 29% increase year-over-year. While the firm does not operate philanthropic foundations or club vehicles in its own name, its strategic trajectory is directly tied to Horton's build cycle. Recent activity: the board extended the company's shareholder rights plan through October 2026, preserving structural protections around the controlling ownership relationship. Unlike most land banks, Forestar does not act as a diversified asset manager or family office — it is an operating company with a single, deeply integrated customer relationship. That relationship with D.R. Horton creates a captive demand channel that independent developers cannot replicate. The board's staggered terms and the rights plan underscore a governance built for long-term operational alignment rather than near-term liquidity, making it a unique instrument for public-market exposure to US housing starts.