ARCHIVE_Capital Division Tour March 2025

LAP Version 8.2

Project: Flynn Jefferson - Forestar CONSOLIDATED

Mid Atlantic Region - Capital - Maryland

9

Prepared:

5/1/24

42248

Revenue

Lot

Direct Construction

Other Direct & Indirect

JDE Code:

# of

Gross

Avg. Lot

Disc. &

Net

Land & Area

Total

Sales

Closing Warranty Interest

Gross Margin

Project

Sq Foot

Units

Base

Options

Revenue

Premium Allow.

Revenue

Develop.

Costs

Permits

Base

Options

Sticks

Commis.

Cost

& Other

in COS

GM%

20' TH Ranson Heights1,889 230 50' SF Ranson Heights1,790 198

339,990 410,268

339,990 410,268

(6,000) (6,000)

333,990 404,268

81,545 126,384

10,930 140,824 10,930 153,986

151,754 164,916

10,020 10,000 3,340 4,032 12,128 10,000 2,021 4,739

73,300 84,079

21.9% 20.8%

Homes Avg

1,843 428

372,502

372,502

(6,000)

366,502

102,288

10,930 146,913

157,843

10,995 10,000 2,730 4,359

78,287

21.4%

1,110,330

PROFITABILITY

TIMING

KEY METRICS

Totals

Per Unit

% of Rev Per sq. ft

Base House

159,430,720

372,502

101.6% 202.10

Hard EM amount

$ $

180,000 Cash

Options

- -

- -

- -

EM Note

-

Number of Product Lines

2

Lot Premium

Hard EMD Date

5/3/22

Average Absorption

7.6

Disc & Allowances Total Net Revenue

(2,568,000)

(6,000)

-1.6% (3.26) 100.0% 198.85

EM Released to Seller

156,862,720

366,502

Initial land closing

Jun-25

Maximum # of Specs

36

No refundables

Land Acquisition

41,775,754 2,003,630 43,779,384

97,607

26.6% 52.96

in Projection

LD Spend Begins Begin Moving Dirt

n/a n/a

ROI and Turnover

Development

4,681

1.3%

2.54

Gross ROI (GM/Avg Inv) Net ROI (PTI/Avg Inv)

48.3% 27.5%

Total Land & Development

102,288

27.9% 55.50

Start Models

Jul-25 Jul-25

First production Start

Turnover Ratio

2.26

Base S&B

62,878,821

146,913

40.1% 79.71

Options

- -

- -

- -

First Sale

Nov-25 Jan-26

Inventory

Area Costs

First Closing

Average Inventory

$12,998,118 21,837,028

Permits

4,678,040 67,556,861

10,930 157,843

3.0%

5.93

Peak Inventory

Total S&B

43.1% 85.64

Last Sale

Jun-30 Aug-30

peak occurs

Aug-28

Last Closing

IRR & NPV

Commissions Closing Costs

4,705,882 4,280,000 1,168,402 1,865,537 33,506,654

10,995 10,000

3.0% 2.7% 0.7% 1.2%

5.97 5.43 1.48 2.36

Interest in COS rate

Internal Rate of Return

43.0%

as a % of COS

Land Close to First Unit Clo (months)

7

Net Present Value

$15,779,216

Warranty & Other

2,730 4,359

base 1.0%

effective First to Last Unit Closing (months) 1.7% Total Project Duration (months)

55 62

Discount Rate

10%

Interest in COS Allocation

GM-Homes

78,287

21.4% 42.47

Land Sale Revenue

- - -

- - -

CASH RECOVERY

Land Sale Cost of Sales

CRA calc begin date = initial land closing date Closings req'd to return committed investment # Months required to return committed investment

Jun-25

GM-Land Sales

43 11

Approved:

Total Gross Margin

33,506,654

78,287

21.4%

Month committed investment is returned

May-26

Date:

Division SG&A

12,549,018 1,926,263 14,475,280 19,031,374

29,320

8.0% 1.2% 9.2%

15.91

For Contract Amendment

Brand Horton

Corp & Reg SGA Alloc

4,501

2.44

ACQ SUMMARY

Homes

Land Sale

Total

230 Lots - Rolling Option of Finished Lots. 198 Lots - Rolling Option of Finished Lots.

Total SGA (Fully Loaded)

33,821 44,466

18.35

Date of initial land sale # lots sold in land sale Land Cost

n/a

Express

Total PTI

12.1% 24.12

40,173,900 1,601,854 2,003,630 43,779,384

40,173,900 1,601,854 2,003,630 43,779,384

Direct Interest Allocation PTI after all Corp Charges

-

-

-

Other Acq Costs

19,031,374

44,466

12.1% 24.12

Dev Cost

Fin Svcs & Rebates

-

-

-

Total Land & Dev

Grand Total PTI

19,031,374

44,467

12.1% 24.12

Initial Land Take

Year 1 Year 2 May-26 May-27

Year 3 May-28

Year 4 May-29

Year 5 Year 6 May-30 Aug-30

ROI by year ending (annualized)

Jun-25

Gross ROI

43.1% 64.5% 38.9% 31.8% 71.7% 234.5%

Net ROI 14.6% 41.8% 21.7% 15.9% 46.1% 159.2% Gross Profit and GM% will differ by Fiscal Year where Interest in COS > the stated rate OR where a lot cost escalator is included in the assumptions. Homes GP & GM per unit by FY FY 2026 FY 2027

FY 2028 FY 2029

FY 2030

#VALUE! #VALUE!

Dollars in 000's As a % of Rev

84.8

80.5

78.1

75.7

72.7

23.2% 22.5%

21.3% 20.3%

19.6%

2/2P8/:2\C0O25M1P:A59NYPWMIDE\Land Acquisition & Development\Properties_ACTIVE\Riverpointe (Flynn-Jefferson Terrace Ranson Heights)\Acquisition\Region Submittal\7. Forestar Assignment\6b. Flynn Forestar LAPs\6e. (CAP-WV) Ranson Heights - Forestar Consolidated_5.1.24v2

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