v3.25.2
Related Party Disclosures
 9 Months Ended
Jun. 30, 2025
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block] Related Party Transactions
D.R. Horton

The Company has a Shared Services Agreement with D.R. Horton whereby D.R. Horton provides the Company with certain administrative, compliance, operational and procurement services. In the nine months ended June 30, 2025 and 2024, selling, general and administrative expense in the consolidated statements of operations included $5.4 million and $4.1 million for these shared services, $10.8 million and $7.0 million reimbursed to D.R. Horton for the cost of health insurance and other employee benefits and $0.7 million for both periods for other corporate and administrative expenses paid by D.R. Horton on behalf of the Company.

Under the terms of the Master Supply Agreement with D.R. Horton, both companies identify land development opportunities to expand Forestar's portfolio of assets. At June 30, 2025 and September 30, 2024, the Company owned approximately 68,300 and 57,800 residential lots, respectively, of which D.R. Horton had the following involvement.

 June 30, 2025September 30, 2024
 (Dollars in millions)
Residential lots under contract to sell to D.R. Horton24,200 20,500 
Owned lots subject to right of first offer with D.R. Horton based on executed purchase and sale agreements18,500 17,200 
Earnest money deposits from D.R. Horton for lots under contract$225.2 $168.4 
Remaining sales price of lots under contract with D.R. Horton$2,172.5 $1,840.5 

Lot and land sales to D.R. Horton in the three and nine months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30,Nine Months Ended June 30,
 2025202420252024
 (Dollars in millions)
Residential lots sold to D.R. Horton3,075 2,903 7,688 8,842 
Residential lot sales revenues from sales to D.R. Horton$325.0 $265.6 $810.2 $846.6 
(Increase) decrease in contract liabilities
$(1.3)$(0.2)$(0.1)$2.6 
Tract sales and other revenues from D.R. Horton
$3.8 $3.3 $7.7 $4.6 

In the three and nine months ended June 30, 2025, the Company reimbursed D.R. Horton approximately $9.5 million and $17.7 million for pre-acquisition and other due diligence and development costs related to land purchase contracts identified by D.R. Horton that the Company independently underwrote and closed compared to reimbursements of $4.4 million and $15.1 million in the prior year periods. In the three and nine months ended June 30, 2025, the Company reimbursed D.R. Horton approximately $4.2 million and $18.8 million for previously paid earnest money related to those land purchase contracts compared to reimbursements of $4.0 million and $22.7 million in the prior year periods. In the nine months ended June 30, 2025, the Company purchased $2.1 million of water rights from D.R. Horton.

In the three and nine months ended June 30, 2025, the Company paid D.R. Horton $0.1 million and $0.3 million for land development services compared to $0.1 million and $0.8 million for these services in the prior year periods. These amounts are included in cost of sales in the Company’s consolidated statements of operations.

At June 30, 2025 and September 30, 2024, land held for future development primarily consisted of undeveloped land which the Company has under contract to sell to D.R. Horton at a sales price equal to the carrying value of the land at the time of sale plus additional consideration of 12% to 16% per annum.

At June 30, 2025, accrued expenses and other liabilities on the Company's consolidated balance sheets included $3.0 million owed to D.R. Horton for any accrued and unpaid shared service charges, land purchase contract deposits and due diligence and other development cost reimbursements compared to $5.2 million at September 30, 2024.