Market Overview

Forestar Announces New $380 Million Senior Unsecured Revolving Credit Facility

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Forestar
Group Inc
. ("Forestar") (NYSE:FOR) announced that it has entered
into a three-year $380 million senior unsecured revolving credit
facility. The facility has an uncommitted $190 million accordion feature
which could increase the facility to $570 million, subject to certain
conditions and availability of additional bank commitments. The facility
includes a letter of credit sublimit equal to 50% of the revolving
credit commitment, for an initial sublimit of $190 million.

The facility includes financial covenants that require the Company to
maintain a minimum level of tangible net worth, a minimum level of
liquidity and a leverage ratio below a maximum level. The pricing
schedule for outstanding commitments, borrowings and letters of credit
is based on the Company's leverage ratio. Availability under the
facility is subject to a borrowing base determined by the book value of
the Company's real estate assets and unrestricted cash balances.

JPMorgan Chase Bank, N.A., Citibank, N.A., Mizuho Bank, Ltd. and Wells
Fargo Securities, LLC acted as Joint Lead Arrangers and Joint
Bookrunners.

Donald J. Tomnitz, Chairman of the Board, said, "We are excited about
our growth opportunities and believe this is an opportune time to add a
revolving credit facility to Forestar's capital structure. We appreciate
the commitment our valued bank lenders are making to Forestar and their
support of our business."

About Forestar Group Inc.

Forestar Group Inc. is a residential and real estate development company
with operations in 20 markets in 11 states at June 30, 2018, where it
owns, directly or through joint ventures, interests in residential and
mixed-use projects. Forestar is a majority-owned subsidiary of D.R.
Horton, Inc., the largest homebuilder by volume in the United States for
sixteen consecutive years.

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 the facility could increase to $570 million,
subject to certain conditions and availability of additional bank
commitments.

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: general economic, market or business
conditions in Texas, where our real estate activities are concentrated,
or on a national or global scale; our ability to achieve some or all of
our key initiatives; the opportunities (or lack thereof) that may be
presented to us and that we may pursue; our ability to hire and retain
key personnel; future residential or commercial entitlements,
development approvals and the ability to obtain such approvals;
obtaining approvals of reimbursements and other payments from special
improvement districts and the timing of such payments; 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, impairment of long-lived assets,
income taxes, share-based compensation; the levels of resale housing
inventory in our mixed-use development projects and the regions in which
they are located; fluctuations in costs and expenses, including impacts
from shortages in materials or labor; demand for new housing, which can
be affected by a number of factors including the availability of
mortgage credit, job growth and fluctuations in commodity prices;
competitive actions by other companies; changes in governmental
policies, laws or regulations and actions or restrictions of regulatory
agencies; our partners' ability to fund their capital commitments and
otherwise fulfill their operating and financial obligations; inability
to obtain permits for, or changes in laws, governmental policies or
regulations affecting, water withdrawal or usage; the effect of D.R.
Horton's controlling level of ownership on us and our stockholders; our
ability to realize the potential benefits of the strategic relationship
with D.R. Horton; the effect of our merger with D.R. Horton on our
ability to maintain relationships with our vendors and customers; and
the final resolutions or outcomes with respect to our contingent and
other liabilities related to our business. Additional information about
issues that could lead to material changes in performance is contained
in Forestar's annual report on Form 10-K and our most recent quarterly
report on Form 10-Q, both of which are filed with the Securities and
Exchange Commission (SEC).

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