Summary of FORESTAR GROUP INC.

Entry into a Material Definitive Agreement, Financial Statements and Exhibits

ITEM 1.01 Entry into a Material Definitive Agreement.
On June 29, 2009, Forestar Group Inc. (the "Company") issued a press release announcing, as part of its strategic initiatives designed to enhance shareholder value, that its wholly owned subsidiary, Forestar (USA) Real Estate Group Inc. ("Forestar Real Estate"), had entered into a definitive agreement (the "Agreement") with Holland M. Ware ("Ware") to sell to Ware approximately 20,000 acres of HBU timberlands located in Georgia (the "Timberlands") for a cash purchase price of $39,492,100.
The parties anticipate closing the transaction in third quarter 2009, subject to customary closing conditions. The Company intends to use the proceeds from this sale to reduce debt in accordance with its previously announced strategic initiatives.
A copy of the press release issued by the Company is attached to this Current Report on Form 8-K as Exhibit 99.1.

ITEM 9.01 Financial Statements and Exhibits.

(d) Exhibits.

  Exhibit No.   Description of Exhibit

  99.1          Press Release issued by Forestar Group Inc., dated June 29, 2009