CLEVELAND, March 30, 2011 /PRNewswire/ -- Forest City
Enterprises, Inc. (NYSE: FCEA and FCEB) today announced EBDT,
net earnings and revenues for the fourth quarter and full year
ended January 31, 2011.
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EBDT
EBDT (Earnings Before Depreciation, Amortization and Deferred
Taxes) for the full year ended January 31,
2011, was $309.9 million, a
new record for the company and a 2.9 percent increase compared with
last year’s $301.1 million. EBDT for
the fourth quarter was $43.1 million,
a 45 percent decrease compared with last year’s fourth-quarter EBDT
of $78.4 million.
EBDT for the fourth quarter and full year 2010 were impacted by
a loss on early extinguishment of debt of $31.7 million ($0.16 on a fully diluted, per-share basis),
related to inducement payments for the early exchange of a portion
of the company’s 2016 Senior Notes for Class A common stock, which
occurred in the final week of the fiscal year.
On a fully diluted, per-share basis, full-year 2010 EBDT was
$1.59, a 20.5 percent decrease from
the prior year’s $2.00 per share.
Per-share EBDT for the fourth quarter of 2010 was
$0.23, compared with $0.43 per share in the fourth quarter of 2009.
Per-share data reflects new Class A common shares and the
“if-converted” effect of convertible debt and convertible preferred
stock issued in 2009 and 2010.
For an explanation of the EBDT and EBDT per share variances, see
the section titled "Review and Discussion of Results" in this news
release. EBDT and EBDT per share are non-Generally Accepted
Accounting Principle (GAAP) measures. A reconciliation of net
earnings (the most directly comparable GAAP measure to EBDT) to
EBDT is provided in the Financial Highlights table in this news
release.
Net Earnings/Loss
For the full year, net earnings attributable to Forest City
Enterprises, Inc., were $58.7
million, or $0.34 per share,
compared with a net loss of $30.7
million, or $0.22 per share,
in 2009. For the fourth quarter of 2010, net loss attributable to
Forest City Enterprises, Inc. was $1.8
million, or $0.01 per share,
compared with net earnings of $6.2
million, or $0.04 per share in
the fourth quarter of 2009.
Net earnings in the fourth quarter were negatively impacted by
impairment charges of $35.7 million
($21.4 million, net of tax),
primarily related to the Village at Gulfstream Park, an
unconsolidated specialty retail center in Hallandale Beach, Florida, that opened in
February, 2010. The property, in which a Forest City subsidiary is 50 percent owner, is
carried on the company’s books under the equity method of
accounting. Due to a slower than anticipated ramp-up of the
operations of the property caused by the severe recessionary
environment at the time of opening, it was determined that the
company was required under GAAP to recognize an impairment of its
equity investment in the property. Despite this, Forest City believes strongly in the long-term
viability of the center, the market area it serves, and the value
proposition of both the existing property and the additional future
entitlements at the site.
Revenues
Revenues for the year ended January 31,
2011, were $1.18 billion, a
4.4 percent decrease compared with prior year revenues of
$1.23 billion. Fourth-quarter
consolidated revenues were $297.8
million compared with $318.5
million last year.
Liquidity
At January 31, 2011, the Company
had $228.0 million ($193.4 million at full consolidation) in cash on
its balance sheet and $222.9 million
of available capacity on the Company’s revolving line of credit.
Review and Discussion of Results
Exhibits illustrating factors impacting both fourth-quarter and
full year 2010 EBDT results, compared with results for the
comparable periods in 2009, are available on the Investor Relations
page of the Company’s web site: www.forestcity.net, and are
included in the company’s year-end 2010 Supplemental Package
furnished to the Securities and Exchange Commission.
Fourth-Quarter EBDT
In the fourth quarter, total EBDT for the company was
$43.1 million, down from $78.4 million in the fourth quarter of 2009.
The largest impact on fourth quarter EBDT was the previously
referenced loss on early extinguishment of debt of $31.7 million ($0.16 on a per-share basis), related to
inducement payments for the early exchange of a portion of the
company’s 2016 Senior Notes for Class A common stock. The exchange,
which occurred in the final week of Forest City’s 2010 fiscal year,
moved $110 million from debt to
equity on the company’s balance sheet.
In operating results, EBDT from the Commercial and Residential
Segments combined (also referred to as the rental properties
portfolio) decreased by $11.5 million
pre-tax. The portfolio was positively impacted by increased hedging
and other financial income of $8.4
million, increased gain on early extinguishment of
nonrecourse mortgage debt of $5.1
million and the ramp up of new properties of $3.0 million. These increases were offset
by decreased income recognized on the sale of state and federal
Historic Preservation, Brownfield and New
Market tax credits of $12.1
million, the 2009 income from Housing and Urban Development
(HUD) replacement reserve of $11.0
million, and reduced pre-tax EBDT from properties sold of
$6.2 million.
The Nets provided a fourth quarter pre-tax EBDT increase of
$13.3 million due to the decrease in
the company’s allocated losses.
Full-year EBDT
For the year, total EBDT was $309.9
million, a new record for the company, and up from
$301.1 million in 2009.
As with EBDT results for the fourth quarter, EBDT for the year
was impacted by increased loss on early extinguishment of corporate
debt of $28.2 million (pre-tax),
primarily related to the previously mentioned inducement payments
for the early exchange of a portion of the company’s 2016 Senior
Notes for Class A common stock.
For fiscal 2010, pre-tax EBDT from the Commercial and
Residential Segments combined decreased $16.7 million pre-tax. Results from the
portfolio were favorably impacted by lower write-offs of abandoned
development projects of $16.3
million, increased NOI on the mature portfolio of
$12.9 million, and the ramp up
of new properties of $12.0 million.
These increases were offset by reduced pre-tax EBDT from
properties sold of $24.2 million,
reduced gain on early extinguishment of nonrecourse mortgage debt
of $16.3 million primarily due to
fewer opportunities to buy back nonrecourse mortgage debt at a
discount, decreased income from the HUD replacement reserve of
$7.7 million, decreased EBDT
from military housing of $10.7
million due to lower construction and development fee income
as anticipated, and increased interest expense on the mature
portfolio of $10.7 million.
Pre-tax EBDT from the Land Segment decreased $7.4 million, primarily due to the 2009 gain on
early extinguishment of nonrecourse mortgage debt of $11.3 million, partially offset by increased
sales.
The Nets provided a pre-tax EBDT increase of $62.9 million, primarily due to the gain on
disposition of partial interest in the Nets of $31.4 million and decreased losses of
$31.5 million due to a decrease in
Forest City’s share of allocated losses as a result of new
operating agreements entered into upon sale of the controlling
interest of the team on May 12,
2010.
Corporate interest expense decreased by $17.0 million, primarily as a result of the
reduction in the strike rate for corporate interest rate swaps and
the retirement of various senior notes in exchange for preferred
stock. Finally, EBDT was impacted by a smaller tax benefit of
$11.8 million compared to prior
year.
Commentary
“We’re pleased with our fiscal 2010 results overall,” said
Charles A. Ratner, Forest City president and chief executive
officer. “Total EBDT reached a new record level as our
portfolio of rental properties continued to perform well throughout
the year. We opened new signature properties, primarily in core
markets, which collectively are achieving more than 175 basis
points of spread to their anticipated cost of permanent debt,
creating real value for the company and shareholders. We also
achieved major milestones in our under-construction pipeline.
In addition, we took advantage of capital market conditions
to further de-leverage our balance sheet, and selectively monetized
assets in our portfolio to capture value and generate liquidity.
Notably, with the start of construction at Foundry Lofts at The
Yards in Washington, D.C., we also
began the process of unlocking embedded entitlement opportunities
to fuel future growth.
“Absent the impact of our debt-for-stock exchange transaction in
the last week of the 2010 fiscal year, our fourth quarter and
full-year EBDT results would have been significantly higher.
Despite this, our decision to take advantage of the
opportunity for early conversion of $110
million of debt to equity was the right one, and we will
continue to make improving our balance sheet a high priority going
forward.
“Just this week, we made a significant announcement that
continues our efforts to further strengthen our balance sheet and
position the company for future growth. On Tuesday, we
announced new joint ventures with investor Madison International
Realty for ownership of a portfolio of 15 of our mature
New York City metropolitan area
specialty retail and entertainment centers. The transaction
equates to a 6.9 percent cap rate and speaks to the quality of
these assets and the significant value embedded in our portfolio.
“On March 1, 2011, we announced
our senior-leadership succession plan, under which I will become
chairman of the board, and David
LaRue will become president and chief executive officer,
effective with our annual meeting of shareholder in June of this
year. Current co-chairmen of the board, Albert Ratner and Sam
Miller, will become co-chairmen emeritus at that time, and
will remain active with the company, but will no longer serve on
the board. The succession plan has been very well received by
our shareholders, associates, lenders, business partners and other
constituencies.”
NOI, Occupancies and Rent
For the full year 2010, overall comparable property net
operating income (NOI) increased 2.1 percent, with increases of 2.1
percent in office, 2.2 percent in retail and 2.7 percent in
apartments. In the fourth quarter of 2010, comparable
property NOI increased 1.1 percent compared with the prior year,
with increases of 0.2 percent in office and 3.4 percent in retail,
and a decrease of 0.8 percent in apartments. The fourth quarter
decline in apartments was primarily due to a decrease in comparable
property NOI in the senior-housing component of the portfolio as a
result of the timing of receipt of government subsidies, which
offset an increase in conventional apartments.
Comparable property NOI, defined as NOI from properties operated
for the full year in both 2010 and 2009, is a non-GAAP financial
measure and is based on the pro-rata consolidation method, also a
non-GAAP financial measure. Included in this release is a schedule
that presents comparable property NOI on the full consolidation
method.
Comparable occupancies at the end of 2010 were 91.2 percent in
the retail portfolio, an increase of 1.1 percentage points
compared with 2009. In the office portfolio, comparable
occupancies decreased to 88.4 percent from 90.0 percent in 2009.
The decrease in the office portfolio was due primarily to
lease expirations at two office buildings in New York, partially offset by occupancy gains
at the Science + Technology Park at Johns
Hopkins in Baltimore.
In the residential portfolio, comparable average occupancies
were 94.7 percent, compared with 92.1 percent in 2009, and
comparable property net rental income (defined as total potential
rent, less vacancies and concessions) ended the year at 91.6
percent, up 1.9 percentage points from 2009. In the company’s
regional malls, leasing spreads decreased 5.8 percent for the year,
primarily related to the company’s strategic decision to prioritize
occupancy and co-tenancy in exchange for short-term rent
concessions in selected lease rollovers. In the office portfolio,
leasing spreads increased 13.8 percent, reflecting strength in
lease renewals in the life-science segment of company’s office
portfolio. Regional mall sales averaged $399 per square foot on a rolling 12-month basis,
while comparable regional mall sales increased 2.7 percent,
compared with results for 2009.
Debt Maturities and Financing Activity
During 2010, Forest City closed
on transactions totaling $1.2 billion
at the Company’s pro-rata share ($1.3
billion at full consolidation) in nonrecourse mortgage
financings, including $272 million at
pro-rata ($231 million at full
consolidation) in refinancing, $196
million of development projects ($593
million at full consolidation) and $683 million ($521
million at full consolidation) in loan extensions and
additional fundings. During the fourth quarter, the Company closed
12 loan transactions totaling $132
million at pro-rata ($107
million at full consolidation).
Since January 31, 2011, the
Company has addressed, through closed loans and committed
financings, $276.6 million at its
pro-rata share ($296.7 million at
full consolidation) of the $1.1
billion at pro-rata and full consolidation of net maturities
(inclusive of notes payable) coming due in fiscal year
2011.
As of January 31, 2011 the
Company's weighted average cost of mortgage debt decreased
to 5.07 percent from 5.17 percent at January 31, 2010, primarily due to a decrease in
both fixed-rate and variable-rate mortgage debt. Fixed-rate
mortgage debt, which represented 71 percent of the Company's
total nonrecourse mortgage debt, and is inclusive of interest rate
swaps, decreased from 6.05 percent at January 31, 2010, to 5.97 percent at
January 31, 2011. Variable-rate
mortgage debt decreased from 3.02 percent at January 31, 2010, to 2.87 percent at January 31, 2011. (All interest rates are at full
consolidation.)
“We continue to see gradual improvement in credit market
conditions and availability of capital at attractive rates to
finance operating properties,” Ratner said. “Throughout the
recession and into the recovery, we have consistently demonstrated
our ability to meet the financing needs of the portfolio, while
retaining the exclusive use of non-recourse mortgage debt at the
property level. This is a testament to the quality of our
real estate portfolio, the long-term relationships we’ve built with
lenders and the skill and perseverance of our finance teams.”
Project Updates
Openings in 2010
During 2010, Forest City opened
four projects, adding $512.3 million
of cost at the Company's pro-rata share ($339.7 million on a full-consolidation basis).
Openings included:
- East River Plaza,
a 527,000-square-foot big-box retail center – the first of its kind
– in Manhattan. The center,
which is currently 90 percent leased, includes the first Costco and
Target stores in Manhattan, as
well as Best Buy, Marshalls, PetSmart, Old Navy, Bob’s Discount
Furniture and others. The center has brought a new type of
shopping experience to many New Yorkers, and the majority of
tenants report strong sales and customer traffic.
- The East 4th and West 4th office buildings at the mixed-use
Waterfront Station project in Southwest Washington, D.C. The two
buildings total 631,000 square feet of office and ground-level
retail space. The office component is fully leased to the
District of Columbia for
governmental offices, and 89 percent of the retail space is also
leased.
- The Village at Gulfstream Park, a
511,000-square-foot mixed-use retail center in Hallandale Beach, Florida. The center, which
is anchored by Gulfstream Park Racetrack and Casino, includes
422,000 square feet of retail space and 89,000 square feet of
Class A office space. Currently, 80 percent of the center is
leased. Restaurant and home furnishings tenants have
consistently reported strong sales since opening, while results for
soft goods tenants have been weaker. As previously
referenced, as a result of the recession and a slower than
anticipated ramp-up for the property, the company recognized a
fourth quarter impairment of its equity investment. Forest
City is committed to the market, to the long-term value proposition
of the center and to the additional future entitlements at the
site.
- Presidio Landmark, a
161-unit apartment project in the Presidio National Park in
San Francisco.
The project’s two components are a 154-unit adaptive
re-use of a historically significant former U.S. Health Service
hospital, and a small number of new, three-story townhomes, all
built to a high standard of sustainability. Lease-up began in
September, 2010 and the project is currently 38 percent
leased.
Under Construction and 2011 openings
At the end of fiscal 2010, Forest
City had four projects under construction with a total
project cost of $1.7 billion at the
Company’s pro-rata share ($2.7
billion at full consolidation). Three of the projects are in
New York: 8 Spruce
Street (formerly Beekman),
a 903-unit residential tower in Manhattan, Westchester’s Ridge Hill, a mixed-use retail center in
Yonkers, New York, and the
Barclays Center arena, the future home of the NBA
Nets in Brooklyn. The fourth
is Foundry Lofts at The Yards in
Washington, D.C.
At 8 Spruce Street, the Frank Gehry-designed apartment high rise in
lower Manhattan, leasing activity
and initial tenant move-ins are underway for the lower floors,
while interior build-out continues on the upper floors. The
property has received a tremendous reception from New Yorkers as
well as national and international media, including praise from
prominent architecture critics. Leasing activity began on
February 18, 2011, and leases have
already been executed for more than 50 units with 17 units already
occupied. Full lease-up of the 76-story building, which has a
total of 903 market-rate units, is expected to extend well into
2012. Project costs are in line with the company’s budget and
the rental market in the Lower Manhattan submarket continues to be
very strong.
Leasing efforts and construction continue at Westchester’s
Ridge Hill, the company’s
mixed-use retail project in Yonkers, New
York, with commitments currently for 45 percent of the
retail space. In December, 2010, Forest City’s announcement that
that Lord & Taylor would anchor the
center with a new, 80,000-square-foot store generated considerable
interest from retailers and has added momentum to leasing efforts.
The center is expected to open in phases beginning in the
second quarter of this year, culminating in the Lord &
Taylor opening in February, 2012.
Other committed tenants include National Amusements, Whole
Foods, Dick’s Sporting Goods, REI, and Cheesecake Factory, among
others, as well as WESTMED Medical Group as an anchor office
tenant. The market area served by Westchester’s Ridge Hill has among the most attractive retail
demographics of any market in the nation.
Work continues at the Barclays Center arena at
Atlantic Yards, with steel now rising several stories above ground
level at the site. With the building taking shape, the
reality of major league sports returning to Brooklyn has helped generate additional
momentum and enthusiasm for the project. Approximately 55 percent
of forecasted contractually obligated revenues are currently under
contract for the arena, which is expected to open in late summer
2012.
Construction continues on Foundry Lofts, the
initial residential building at The Yards mixed-use project in
Washington, D.C. The apartment
building is on track to be completed and commence lease-up in the
third quarter of 2011. This adaptive reuse of a former Navy Yard
industrial building will offer 170 loft-style apartments, including
34 two-level penthouse units, together with a small amount of
street-level retail space. The Washington, D.C. real estate market continues
to be one of the strongest in the country.
Year-End Summary and Outlook
“With our fiscal 2010 results, we mark the end of our second
full year of successfully navigating the worst economic and real
estate market conditions most of us have ever experienced,” Ratner
said. “As a result, we believe Forest City is a stronger company today, with
a much-improved balance sheet, dramatically reduced development
risk, and a fresh sense of optimism about the future.
“Our strong operating portfolio and additional high-quality
projects under construction, together with our strategic focus on
core urban centers and substantial in-place entitlement in large
projects in New York, Washington, Denver and other key markets, positions us
well to take advantage of future growth opportunities. Though
we retain an appropriate measure of caution in our outlook, we are
confident in our ability to continue to build long-term value for
our shareholders, associates, business partners and the communities
where we live and work.”
Corporate Description
Forest City Enterprises, Inc. is a NYSE-listed national real
estate company with $11.8 billion in
total assets. The Company is principally engaged in the ownership,
development, management and acquisition of commercial and
residential real estate and land throughout the United States. For more information,
visit www.forestcity.net.
Supplemental Package
Please refer to the Investor Relations section of the Company's
website at www.forestcity.net for a Supplemental Package, which the
Company will also furnish to the Securities and Exchange Commission
(“SEC”) on Form 8-K. This Supplemental Package includes operating
and financial information for the year ended January 31, 2011, with reconciliations of
non-GAAP financial measures, such as EBDT, comparable NOI and
pro-rata financial statements, to their most directly comparable
GAAP financial measures.
EBDT
The Company uses an additional measure, along with net earnings,
to report its operating results. This non-GAAP measure, referred to
as Earnings Before Depreciation, Amortization and Deferred Taxes
(“EBDT”), is not a measure of operating results or cash flows from
operations as defined by GAAP and may not be directly comparable to
similarly titled measures reported by other companies.
The Company believes that EBDT provides additional information
about its core operations and, along with net earnings, is
necessary to understand its operating results. EBDT is used by the
chief operating decision maker and management in assessing
operating performance and to consider capital requirements and
allocation of resources by segment and on a consolidated basis. The
Company believes EBDT is important to investors because it provides
another method for the investor to measure its long-term operating
performance, as net earnings can vary from year to year due to
property dispositions, acquisitions and other factors that have a
short-term impact.
EBDT is defined as net earnings excluding the following items:
i) gain (loss) on disposition of rental properties, divisions and
other investments (net of tax); ii) the adjustment to recognize
rental revenues and rental expense using the straight-line method;
iii) non-cash charges for real estate depreciation, amortization,
amortization of mortgage procurement costs and deferred income
taxes; iv) preferred payment which is classified as non-controlling
interest expense on the Company's Consolidated Statements of
Operations; v) impairment of real estate (net of tax); vi)
extraordinary items (net of tax); and vii) cumulative or
retrospective effect of change in accounting principle (net of
tax). Unlike the real estate segments, EBDT for the Nets segment
equals net earnings.
EBDT is reconciled to net earnings (loss), the most comparable
financial measure calculated in accordance with GAAP, in the table
titled Financial Highlights below and in the Company's Supplemental
Package, which the Company will also furnish to the SEC on Form
8-K. The adjustment to recognize rental revenues and rental
expenses on the straight-line method is excluded because it is
management's opinion that rental revenues and expenses should be
recognized when due from the tenants or due to the landlord. The
Company excludes depreciation and amortization expense related to
real estate operations from EBDT because it believes the values of
its properties, in general, have appreciated over time in excess of
their original cost. Deferred taxes from real estate operations,
which are the result of timing differences of certain net expense
items deducted in a future year for federal income tax purposes,
are excluded until the year in which they are reflected in the
Company's current tax provision. The impairment of real estate is
excluded from EBDT because it varies from year to year based on
factors unrelated to the Company's overall financial performance
and is related to the ultimate gain on dispositions of operating
properties. The Company's EBDT may not be directly comparable to
similarly titled measures reported by other companies.
Pro-Rata Consolidation Method
This press release contains certain financial measures prepared
in accordance with GAAP under the full consolidation accounting
method and certain financial measures prepared in accordance with
the pro-rata consolidation method (non-GAAP). The Company presents
certain financial amounts under the pro-rata method because it
believes this information is useful to investors as this method
reflects the manner in which the Company operates its business. In
line with industry practice, the Company has made a large number of
investments in which its economic ownership is less than 100
percent as a means of procuring opportunities and sharing risk.
Under the pro-rata consolidation method, the Company generally
presents its investments proportionate to its economic share of
ownership. Under GAAP, the full consolidation method is used to
report partnership assets and liabilities consolidated at 100
percent if deemed to be under its control or if the Company is
deemed to be the primary beneficiary of the variable interest
entities ("VIE"), even if its ownership is not 100 percent. The
Company provides reconciliations from the full consolidation method
to the pro-rata consolidation method in the exhibits below and
throughout its Supplemental Package, which the Company will also
furnish to the SEC on Form 8-K.
Safe Harbor Language
Statements made in this news release that state the Company’s or
management's intentions, hopes, beliefs, expectations or
predictions of the future are forward-looking statements. The
Company's actual results could differ materially from those
expressed or implied in such forward-looking statements due to
various risks, uncertainties and other factors. Risks and factors
that could cause actual results to differ materially from those in
the forward-looking statements include, but are not limited to, the
impact of current lending and capital market conditions on our
liquidity, ability to finance or refinance projects and repay our
debt, the impact of the current economic environment on our
ownership, development and management of our real estate portfolio,
general real estate investment and development risks, vacancies in
our properties, further downturns in the housing market,
competition, illiquidity of real estate investments, bankruptcy or
defaults of tenants, anchor store consolidations or closings,
international activities, the impact of terrorist acts, risks
associated with an investment in a professional sports team, our
substantial debt leverage and the ability to obtain and service
debt, the impact of restrictions imposed by our credit facility and
senior debt, exposure to hedging agreements, the level and
volatility of interest rates, the continued availability of
tax-exempt government financing, the impact of credit rating
downgrades, effects of uninsured or underinsured losses, effects of
a downgrade or failure of our insurance carriers, environmental
liabilities, conflicts of interest, risks associated with the sale
of tax credits, risks associated with developing and managing
properties in partnership with others, the ability to maintain
effective internal controls, compliance with governmental
regulations, increased legislative and regulatory scrutiny of the
financial services industry, volatility in the market price of our
publicly traded securities, inflation risks, litigation
risks, as well as other risks listed from time to time in the
Company’s SEC filings, including but not limited to, the Company’s
annual and quarterly reports.
Forest City
Enterprises, Inc. and Subsidiaries
|
|
Financial
Highlights
|
|
Year Ended
January 31, 2011 and 2010
|
|
(dollars in
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
|
January
31,
|
|
Increase
(Decrease)
|
|
January
31,
|
|
Increase
(Decrease)
|
|
|
|
2011
|
2010
|
|
Amount
|
|
Percent
|
|
2011
|
2010
|
|
Amount
|
|
Percent
|
|
Operating
Results:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations
|
|
$
(24,256)
|
$
17,132
|
|
$
(41,388)
|
|
|
|
$
102,268
|
$
(10,780)
|
|
$
113,048
|
|
|
|
Discontinued operations, net of
tax
|
|
27,858
|
(10,520)
|
|
38,378
|
|
|
|
(16,258)
|
(13,261)
|
|
(2,997)
|
|
|
|
Net earnings (loss)
|
|
3,602
|
6,612
|
|
(3,010)
|
|
|
|
86,010
|
(24,041)
|
|
110,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing operations
attributable to noncontrolling interests
|
|
(5,435)
|
(525)
|
|
(4,910)
|
|
|
|
(22,974)
|
(6,727)
|
|
(16,247)
|
|
|
|
Earnings from discontinued operations
attributable to noncontrolling interests (1)
|
|
-
|
114
|
|
(114)
|
|
|
|
(4,376)
|
117
|
|
(4,493)
|
|
|
|
Net earnings (loss) attributable
to Forest City Enterprises, Inc.
|
|
$
(1,833)
|
$
6,201
|
|
$
(8,034)
|
|
|
|
$
58,660
|
$
(30,651)
|
|
$
89,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred dividends
|
|
(3,850)
|
-
|
|
(3,850)
|
|
|
|
(11,807)
|
-
|
|
(11,807)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Forest City Enterprises, Inc. common shareholders
|
|
$
(5,683)
|
$
6,201
|
|
$
(11,884)
|
|
|
|
$
46,853
|
$
(30,651)
|
|
$
77,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Depreciation,
Amortization and Deferred Taxes (EBDT) (2)
|
|
$
43,149
|
$
78,407
|
|
$
(35,258)
|
|
(45.0%)
|
|
$
309,875
|
$
301,106
|
|
$
8,769
|
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Earnings
(Loss) to Earnings Before Depreciation, Amortization and Deferred
Taxes (EBDT) (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Forest City Enterprises, Inc.
|
|
$
(1,833)
|
$
6,201
|
|
$
(8,034)
|
|
|
|
$
58,660
|
$
(30,651)
|
|
$
89,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization -
Real Estate Groups (7)
|
|
73,379
|
75,433
|
|
(2,054)
|
|
|
|
286,042
|
293,869
|
|
(7,827)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of mortgage
procurement costs - Real Estate Groups (7)
|
|
3,617
|
3,850
|
|
(233)
|
|
|
|
14,341
|
15,583
|
|
(1,242)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax expense -
Real Estate Groups (8)
|
|
(8,772)
|
(10,558)
|
|
1,786
|
|
|
|
36,432
|
(12,852)
|
|
49,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax expense -
Non-Real Estate Groups (8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain
on disposition of other investments
|
|
-
|
454
|
|
(454)
|
|
|
|
-
|
454
|
|
(454)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current income tax expense
on non-operating earnings: (8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
gain on disposition of partial interests in rental
properties
|
|
5,037
|
-
|
|
5,037
|
|
|
|
37,483
|
-
|
|
37,483
|
|
|
|
Gain
on disposition included in discontinued operations
|
|
5,000
|
-
|
|
5,000
|
|
|
|
4,902
|
754
|
|
4,148
|
|
|
|
Gain
on disposition of unconsolidated entities
|
|
495
|
27,471
|
|
(26,976)
|
|
|
|
3,926
|
27,674
|
|
(23,748)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line rent adjustment
(4)
|
|
(7,913)
|
(3,689)
|
|
(4,224)
|
|
|
|
(18,160)
|
(13,242)
|
|
(4,918)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preference payment
(6)
|
|
585
|
585
|
|
-
|
|
|
|
2,341
|
2,341
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of consolidated real
estate, net of minority interest
|
|
-
|
5,783
|
|
(5,783)
|
|
|
|
5,277
|
8,907
|
|
(3,630)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of unconsolidated
real estate
|
|
35,714
|
1,693
|
|
34,021
|
|
|
|
72,459
|
36,356
|
|
36,103
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on disposition of
partial interests in rental properties
|
|
-
|
-
|
|
-
|
|
|
|
(202,878)
|
-
|
|
(202,878)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of
unconsolidated entities
|
|
(15,633)
|
(45,263)
|
|
29,630
|
|
|
|
(23,461)
|
(49,761)
|
|
26,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations:
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of
rental properties
|
|
(46,527)
|
(1,172)
|
|
(45,355)
|
|
|
|
(51,303)
|
(5,720)
|
|
(45,583)
|
|
|
|
Impairment of real
estate
|
|
-
|
17,619
|
|
(17,619)
|
|
|
|
79,603
|
27,394
|
|
52,209
|
|
|
|
Noncontrolling interest - Gain
on disposition
|
|
-
|
-
|
|
-
|
|
|
|
4,211
|
-
|
|
4,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Depreciation,
Amortization and Deferred Taxes (EBDT) (2)
|
|
$
43,149
|
$
78,407
|
|
$
(35,258)
|
|
(45.0%)
|
|
$
309,875
|
$
301,106
|
|
$
8,769
|
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Depreciation,
Amortization and Deferred Taxes (EBDT) (2) (3) (5)
|
|
$
0.23
|
$
0.43
|
|
$
(0.20)
|
|
(46.5%)
|
|
$
1.59
|
$
2.00
|
|
$
(0.41)
|
|
(20.5%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings per Common
Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from continuing
operations
|
|
$
(0.16)
|
$
0.11
|
|
$
(0.27)
|
|
|
|
$
0.59
|
$
(0.08)
|
|
$
0.67
|
|
|
|
Discontinued operations, net of
tax
|
|
0.18
|
(0.07)
|
|
0.25
|
|
|
|
(0.09)
|
(0.09)
|
|
-
|
|
|
|
Net earnings (loss)
|
|
0.02
|
0.04
|
|
(0.02)
|
|
|
|
0.50
|
(0.17)
|
|
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing
operations attributable to noncontrolling interests
|
|
(0.03)
|
-
|
|
(0.03)
|
|
|
|
(0.13)
|
(0.04)
|
|
(0.09)
|
|
|
|
Earnings from discontinued
operations attributable to noncontrolling interests (1)
|
|
-
|
-
|
|
-
|
|
|
|
(0.03)
|
(0.01)
|
|
(0.02)
|
|
|
|
Net earnings attributable to
noncontrolling interests
|
|
(0.03)
|
-
|
|
(0.03)
|
|
|
|
(0.16)
|
(0.05)
|
|
(0.11)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Forest City Enterprises, Inc.
|
|
$
(0.01)
|
$
0.04
|
|
$
(0.05)
|
|
|
|
$
0.34
|
$
(0.22)
|
|
$
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred dividends
|
|
(0.03)
|
-
|
|
(0.03)
|
|
|
|
(0.07)
|
-
|
|
(0.07)
|
|
|
|
Interest on convertible
debt
|
|
-
|
-
|
|
-
|
|
|
|
0.02
|
-
|
|
0.02
|
|
|
|
Preferred distribution on Class
A Common Units
|
|
-
|
-
|
|
-
|
|
|
|
0.01
|
-
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Forest City Enterprises, Inc. common shareholders
|
|
$
(0.04)
|
$
0.04
|
|
$
(0.08)
|
|
|
|
$
0.30
|
$
(0.22)
|
|
$
0.52
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average shares
outstanding (5)
|
|
155,643,554
|
155,324,478
|
|
319,076
|
|
|
|
155,485,243
|
139,825,349
|
|
15,659,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted weighted average shares
outstanding (5)
|
|
202,691,428
|
187,453,699
|
|
15,237,729
|
|
|
|
200,909,266
|
151,890,543
|
|
49,018,723
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forest City
Enterprises, Inc. and Subsidiaries
|
|
Financial
Highlights
|
|
Year Ended
January 31, 2011 and 2010
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
Year
Ended
|
|
|
|
|
|
|
January
31,
|
|
Increase
(Decrease)
|
|
January
31,
|
|
Increase
(Decrease)
|
|
|
|
2011
|
2010
|
|
Amount
|
Percent
|
|
2011
|
2010
|
|
Amount
|
Percent
|
|
Operating Earnings (a non-GAAP
financial measure) and Reconciliation to Net
Earnings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from real estate
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Group
|
|
$
231,626
|
$
248,691
|
|
$
(17,065)
|
|
|
$
934,045
|
$
954,669
|
|
$
(20,624)
|
|
|
Residential
Group
|
|
53,597
|
63,063
|
|
(9,466)
|
|
|
211,485
|
257,077
|
|
(45,592)
|
|
|
Land Development
Group
|
|
12,567
|
6,776
|
|
5,791
|
|
|
32,131
|
20,267
|
|
11,864
|
|
|
The Nets
|
|
-
|
-
|
|
-
|
|
|
-
|
-
|
|
-
|
|
|
Corporate
Activities
|
|
-
|
-
|
|
-
|
|
|
-
|
-
|
|
-
|
|
|
Total
Revenues
|
|
297,790
|
318,530
|
|
(20,740)
|
(6.5%)
|
|
1,177,661
|
1,232,013
|
|
(54,352)
|
(4.4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
(182,787)
|
(181,762)
|
|
(1,025)
|
|
|
(685,783)
|
(704,552)
|
|
18,769
|
|
|
Interest expense
|
|
(71,105)
|
(90,089)
|
|
18,984
|
|
|
(315,340)
|
(343,146)
|
|
27,806
|
|
|
Gain (loss) on early
extinguishment of debt
|
|
(31,688)
|
(1,396)
|
|
(30,292)
|
|
|
(21,035)
|
36,569
|
|
(57,604)
|
|
|
Amortization of mortgage
procurement costs (7)
|
|
(3,418)
|
(3,255)
|
|
(163)
|
|
|
(13,487)
|
(13,709)
|
|
222
|
|
|
Depreciation and amortization
(7)
|
|
(61,399)
|
(65,911)
|
|
4,512
|
|
|
(243,847)
|
(260,223)
|
|
16,376
|
|
|
Interest and other
income
|
|
17,862
|
30,080
|
|
(12,218)
|
|
|
52,826
|
53,999
|
|
(1,173)
|
|
|
Gain on disposition of partial
interests in other investment - Nets
|
|
-
|
-
|
|
-
|
|
|
55,112
|
-
|
|
55,112
|
|
|
Equity in earnings (loss) of
unconsolidated entities, including impairment
|
|
(12,742)
|
30,087
|
|
(42,829)
|
|
|
(30,194)
|
(15,053)
|
|
(15,141)
|
|
|
Impairment of unconsolidated
real estate
|
|
35,714
|
1,693
|
|
34,021
|
|
|
72,459
|
36,356
|
|
36,103
|
|
|
Gain on disposition of
unconsolidated entities
|
|
(15,633)
|
(45,263)
|
|
29,630
|
|
|
(23,461)
|
(49,761)
|
|
26,300
|
|
|
Revenues and interest income
from discontinued operations (1)
|
|
2,169
|
5,804
|
|
(3,635)
|
|
|
17,986
|
30,691
|
|
(12,705)
|
|
|
Expenses from discontinued
operations (1)
|
|
(1,843)
|
(6,468)
|
|
4,625
|
|
|
(17,661)
|
(30,604)
|
|
12,943
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss (a non-GAAP
financial measure)
|
|
(27,080)
|
(7,950)
|
|
(19,130)
|
|
|
25,236
|
(27,420)
|
|
52,656
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(8)
|
|
23,231
|
(13,369)
|
|
36,600
|
|
|
(69,720)
|
12,229
|
|
(81,949)
|
|
|
Income tax expense from
discontinued operations (1) (8)
|
|
(18,995)
|
6,591
|
|
(25,586)
|
|
|
11,717
|
8,326
|
|
3,391
|
|
|
Income tax expense on
non-operating earnings items (see below)
|
|
9,831
|
8,275
|
|
1,556
|
|
|
44,598
|
(6,662)
|
|
51,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings (loss), net
of tax (a non-GAAP financial measure)
|
|
(13,013)
|
(6,453)
|
|
(6,560)
|
|
|
11,831
|
(13,527)
|
|
25,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of consolidated real
estate
|
|
-
|
(5,783)
|
|
5,783
|
|
|
(6,803)
|
(8,907)
|
|
2,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of unconsolidated
real estate
|
|
(35,714)
|
(1,693)
|
|
(34,021)
|
|
|
(72,459)
|
(36,356)
|
|
(36,103)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of
unconsolidated entities
|
|
15,633
|
45,263
|
|
(29,630)
|
|
|
23,461
|
49,761
|
|
(26,300)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on disposition of
partial interest in rental properties
|
|
-
|
-
|
|
-
|
|
|
202,878
|
-
|
|
202,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on disposition of
rental properties included in discontinued operations
(1)
|
|
46,527
|
1,172
|
|
45,355
|
|
|
51,303
|
5,720
|
|
45,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of real estate
included in discontinued operations (1)
|
|
-
|
(17,619)
|
|
17,619
|
|
|
(79,603)
|
(27,394)
|
|
(52,209)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit (expense) on
non-operating earnings: (8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
consolidated real estate
|
|
-
|
2,244
|
|
(2,244)
|
|
|
2,048
|
3,455
|
|
(1,407)
|
|
|
Impairment of
unconsolidated real estate
|
|
14,277
|
656
|
|
13,621
|
|
|
28,527
|
14,100
|
|
14,427
|
|
|
Gain on
disposition of partial interest in rental properties
|
|
825
|
-
|
|
825
|
|
|
(77,852)
|
-
|
|
(77,852)
|
|
|
Gain on
disposition of unconsolidated entities
|
|
(6,063)
|
(17,554)
|
|
11,491
|
|
|
(9,099)
|
(19,299)
|
|
10,200
|
|
|
Gain on
disposition of rental properties included in discontinued
operations
|
|
(18,870)
|
(454)
|
|
(18,416)
|
|
|
(19,094)
|
(2,218)
|
|
(16,876)
|
|
|
Impairment of real
estate included in discontinued operations
|
|
-
|
6,833
|
|
(6,833)
|
|
|
30,872
|
10,624
|
|
20,248
|
|
|
Income tax expense on
non-operating earnings (see above)
|
|
(9,831)
|
(8,275)
|
|
(1,556)
|
|
|
(44,598)
|
6,662
|
|
(51,260)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
|
3,602
|
6,612
|
|
(3,010)
|
|
|
86,010
|
(24,041)
|
|
110,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
Interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing
operations attributable to noncontrolling interests
|
|
(5,435)
|
(525)
|
|
(4,910)
|
|
|
(22,974)
|
(6,727)
|
|
(16,247)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from discontinued
operations attributable to noncontrolling interests (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
earnings
|
|
-
|
114
|
|
(114)
|
|
|
(165)
|
117
|
|
(282)
|
|
|
Impairment of Real
Estate
|
|
-
|
-
|
|
-
|
|
|
-
|
-
|
|
-
|
|
|
Gain on disposition of
rental properties
|
|
-
|
-
|
|
-
|
|
|
(4,211)
|
-
|
|
(4,211)
|
|
|
|
|
-
|
114
|
|
(114)
|
|
|
(4,376)
|
117
|
|
(4,493)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
Interests
|
|
(5,435)
|
(411)
|
|
(5,024)
|
|
|
(27,350)
|
(6,610)
|
|
(20,740)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Forest City Enterprises, Inc.
|
|
$
(1,833)
|
$
6,201
|
|
$
(8,034)
|
|
|
$
58,660
|
$
(30,651)
|
|
$
89,311
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred dividends
|
|
(3,850)
|
-
|
|
(3,850)
|
|
|
(11,807)
|
-
|
|
(11,807)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Forest City Enterprises, Inc. common shareholders
|
|
$
(5,683)
|
$
6,201
|
|
$
(11,884)
|
|
|
$
46,853
|
$
(30,651)
|
|
$
77,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forest City
Enterprises, Inc. and Subsidiaries
|
|
Financial
Highlights
|
|
Year Ended
January 31, 2011 and 2010
|
|
(in
thousands)
|
|
|
|
|
|
1) All earnings of properties
which have been sold or are held for sale are reported as
discontinued operations assuming no significant continuing
involvement.
|
|
|
|
2) The Company uses an
additional measure, along with net earnings, to report its
operating results. This measure, referred to as Earnings Before
Depreciation, Amortization and Deferred Taxes (“EBDT”), is not a
measure of operating results as defined by generally accepted
accounting principles and may not be directly comparable to
similarly-titled measures reported by other companies. The Company
believes that EBDT provides additional information about its
operations, and along with net earnings, is necessary to understand
its operating results. EBDT is defined as net earnings
excluding the following items: i) gain (loss) on disposition of
operating properties, divisions and other investments (net of tax);
ii) the adjustment to recognize rental revenues and rental expense
using the straight-line method; iii) non-cash charges for real
estate depreciation, amortization (including amortization of
mortgage procurement costs) and deferred income taxes; iv)
preferred payment classified as noncontrolling interest expense on
the Company's Consolidated Statement of Earnings; v) impairment of
real estate (net of tax); vi) extraordinary items (net of tax); and
vii) cumulative or retrospective effect of change in
accounting principle (net of tax). See our discussion of EBDT
in the news release.
|
|
|
|
3) For the three and
twelve months ended January 31, 2011, the calculation of EBDT per
share under the if-converted method requires an adjustment for
interest of $2,631 and $10,551, respectively, related to the 3.625%
Puttable Senior Notes and the 5% Convertible Senior Notes.
Therefore EBDT for purposes of calculating per share data is
$45,780 and $320,426 for the three and twelve months ended January
31, 2011, respectively.
|
|
|
|
For the three and twelve months
ended January 31, 2010, the calculation of EBDT per share under the
if-converted method requires an adjustment for interest of $2,641
and $3,051, respectively, related to the 3.625% Puttable Senior
Notes and the 5% Convertible Senior Notes. Therefore EBDT for
purposes of calculating per share data is $81,048 and $304,157 for
the three and twelve months ended January 31, 2010,
respectively.
|
|
|
|
4) The Company recognizes
minimum rents on a straight-line basis over the term of the related
lease pursuant to accounting for leases. The straight-line
rent adjustment is recorded as an increase or decrease to revenue
or operating expense from Forest City Rental Properties
Corporation, a wholly-owned subsidiary of Forest City Enterprises,
Inc., with the applicable offset to either accounts receivable or
accounts payable, as appropriate.
|
|
|
|
5) For the three months
ended January 31, 2011, the effect of 47,047,874 shares of dilutive
securities were not included in the computation of diluted earnings
per share because their effect is anti-dilutive to the loss from
continuing operations. (Since these shares are dilutive for
the computation of EBDT per share for the three months ended
January 31, 2011, diluted weighted average shares outstanding of
202,691,428 were used to arrive at $0.23/share.)
|
|
|
|
For the twelve months ended
January 31, 2011, weighted average shares issuable upon the
conversion of preferred stock and 2016 Notes of 13,115,165 and
14,356,215, respectively, are not included in the calculation of
earnings per share because they are anti-dilutive. They are
included in the calculation of EBDT per share because they are
dilutive to this measure.
|
|
|
|
For the three and twelve months
ended January 31, 2010, the effect of 32,129,221 and 12,065,194
shares of dilutive securities were not included in the computation
of diluted earnings per share because their effect is anti-dilutive
to the loss from continuing operations. (Since these shares
are dilutive for the computation of EBDT per share for the three
and twelve months ended January 31, 2010, diluted weighted average
shares outstanding of 187,453,699 and 151,890,543 were used to
arrive at $0.43/share and $2.00/share, respectively.)
|
|
|
|
6) The preference payment
represents the respective period's share of the annual preferred
payment in connection with the issuance of Class A Common Units in
exchange for Bruce C. Ratner's noncontrolling interest in the
Forest City Ratner Companies portfolio.
|
|
|
|
7) The following table provides
detail of depreciation and amortization and amortization of
mortgage procurement costs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and Amortization
|
|
Depreciation
and Amortization
|
|
|
|
|
Three Months
Ended January 31,
|
|
Year Ended
January 31,
|
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Full Consolidation
|
|
$
61,399
|
$
65,911
|
|
$
243,847
|
$
260,223
|
|
|
Non-Real Estate
|
|
(1,091)
|
(3,108)
|
|
(5,028)
|
(13,480)
|
|
|
Real Estate Groups Full Consolidation
|
|
60,308
|
62,803
|
|
238,819
|
246,743
|
|
|
Real Estate Groups related to
noncontrolling interest
|
|
(2,344)
|
(1,717)
|
|
(9,267)
|
(5,037)
|
|
|
Real Estate Groups
Unconsolidated
|
|
15,237
|
12,654
|
|
52,194
|
43,868
|
|
|
Real Estate Groups Discontinued
Operations
|
|
178
|
1,693
|
|
4,296
|
8,295
|
|
|
Real Estate Groups Pro-Rata
Consolidation
|
|
$
73,379
|
$
75,433
|
|
$
286,042
|
$
293,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization
of Mortgage Procurement Costs
|
|
Amortization
of Mortgage Procurement Costs
|
|
|
|
|
Three Months
Ended January 31,
|
|
Year Ended
January 31,
|
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Full Consolidation
|
|
$
3,418
|
$
3,255
|
|
$
13,487
|
$
13,709
|
|
|
Non-Real Estate
|
|
-
|
-
|
|
-
|
-
|
|
|
Real Estate Groups Full Consolidation
|
|
3,418
|
3,255
|
|
13,487
|
13,709
|
|
|
Real Estate Groups related to
noncontrolling interest
|
|
(422)
|
(117)
|
|
(1,514)
|
(565)
|
|
|
Real Estate Groups
Unconsolidated
|
|
614
|
639
|
|
2,245
|
2,126
|
|
|
Real Estate Groups Discontinued
Operations
|
|
7
|
73
|
|
123
|
313
|
|
|
Real Estate Groups Pro-Rata
Consolidation
|
|
$
3,617
|
$
3,850
|
|
$
14,341
|
$
15,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended January 31,
|
|
Year Ended
January 31,
|
|
|
|
|
2011
|
2010
|
|
2011
|
2010
|
|
8) The following table provides detail
of Income Tax Expense (Benefit):
|
|
(in
thousands)
|
|
(in
thousands)
|
|
|
(A) Operating
earnings
|
|
|
|
|
|
|
|
|
Current
|
|
$
(10,900)
|
$
(11,975)
|
|
$
(41,684)
|
$
(20,680)
|
|
|
Deferred
|
|
(3,292)
|
10,690
|
|
55,028
|
6,707
|
|
|
|
|
(14,192)
|
(1,285)
|
|
13,344
|
(13,973)
|
|
|
|
|
|
|
|
|
|
|
|
(B) Impairment of consolidated
and unconsolidated real estate
|
|
|
|
|
|
|
|
|
Deferred - Consolidated
real estate
|
|
-
|
(2,244)
|
|
(2,048)
|
(3,455)
|
|
|
Deferred - Unconsolidated
real estate
|
|
(14,277)
|
(656)
|
|
(28,527)
|
(14,100)
|
|
|
|
|
(14,277)
|
(2,900)
|
|
(30,575)
|
(17,555)
|
|
|
|
|
|
|
|
|
|
|
|
(C) Net gain on disposition of
partial interests in rental properties
|
|
|
|
|
|
|
|
|
Current
|
|
5,037
|
-
|
|
37,483
|
-
|
|
|
Deferred
|
|
(5,862)
|
-
|
|
40,369
|
-
|
|
|
|
|
(825)
|
-
|
|
77,852
|
-
|
|
|
(D) Gain on disposition of
unconsolidated entities
|
|
|
|
|
|
|
|
|
Current
|
|
495
|
27,471
|
|
3,926
|
27,674
|
|
|
Deferred
|
|
5,568
|
(9,917)
|
|
5,173
|
(8,375)
|
|
|
|
|
6,063
|
17,554
|
|
9,099
|
19,299
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal
(A) (B) (C) (D)
|
|
|
|
|
|
|
|
|
Current
|
|
(5,368)
|
15,496
|
|
(275)
|
6,994
|
|
|
Deferred
|
|
(17,863)
|
(2,127)
|
|
69,995
|
(19,223)
|
|
|
Income tax expense
|
|
(23,231)
|
13,369
|
|
69,720
|
(12,229)
|
|
|
|
|
|
|
|
|
|
|
|
(E) Discontinued
operations
|
|
|
|
|
|
|
|
|
Operating earnings
|
|
|
|
|
|
|
|
|
Current
|
|
(378)
|
(543)
|
|
(1,534)
|
(1,484)
|
|
|
Deferred
|
|
503
|
331
|
|
1,595
|
1,564
|
|
|
|
|
125
|
(212)
|
|
61
|
80
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of
rental properties
|
|
|
|
|
|
|
|
|
Current
|
|
5,000
|
-
|
|
4,902
|
754
|
|
|
Deferred
|
|
13,870
|
-
|
|
14,192
|
1,010
|
|
|
|
|
18,870
|
-
|
|
19,094
|
1,764
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of
Lumber Group
|
|
|
|
|
|
|
|
|
Current
|
|
-
|
-
|
|
-
|
-
|
|
|
Deferred
|
|
-
|
454
|
|
-
|
454
|
|
|
|
|
-
|
454
|
|
-
|
454
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of real estate
|
|
|
|
|
|
|
|
|
Current
|
|
-
|
-
|
|
-
|
-
|
|
|
Deferred
|
|
-
|
(6,833)
|
|
(30,872)
|
(10,624)
|
|
|
|
|
-
|
(6,833)
|
|
(30,872)
|
(10,624)
|
|
|
|
|
18,995
|
(6,591)
|
|
(11,717)
|
(8,326)
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
(A) (B) (C) (D) (E)
|
|
|
|
|
|
|
|
|
Current
|
|
(746)
|
14,953
|
|
3,093
|
6,264
|
|
|
Deferred
|
|
(3,490)
|
(8,175)
|
|
54,910
|
(26,819)
|
|
|
|
|
$
(4,236)
|
$
6,778
|
|
$
58,003
|
$
(20,555)
|
|
|
|
|
|
|
|
|
|
|
|
Recap of
Grand Total:
|
|
|
|
|
|
|
|
|
Real
Estate Groups
|
|
|
|
|
|
|
|
|
Current
|
|
2,629
|
15,766
|
|
23,593
|
14,740
|
|
|
Deferred
|
|
(8,772)
|
(10,558)
|
|
36,432
|
(12,852)
|
|
|
|
|
(6,143)
|
5,208
|
|
60,025
|
1,888
|
|
|
Non-Real Estate Groups
|
|
|
|
|
|
|
|
|
Current
|
|
(3,375)
|
(813)
|
|
(20,500)
|
(8,476)
|
|
|
Deferred
|
|
5,282
|
2,383
|
|
18,478
|
(13,967)
|
|
|
|
|
1,907
|
1,570
|
|
(2,022)
|
(22,443)
|
|
|
Grand
Total
|
|
$
(4,236)
|
$
6,778
|
|
$
58,003
|
$
(20,555)
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Operating
Income (non-GAAP) to Net Earnings (Loss) (GAAP) (in
thousands):
|
|
|
|
|
Three Months
Ended January 31, 2011
|
|
|
Three Months
Ended January 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus
|
|
|
|
|
|
|
Plus
|
|
|
|
|
Full
|
Less
|
Unconsolidated
|
Plus
|
Pro-Rata
|
|
|
Full
|
Less
|
Unconsolidated
|
Plus
|
Pro-Rata
|
|
|
Consolidation
|
Noncontrolling
|
Investments
at
|
Discontinued
|
Consolidation
|
|
|
Consolidation
|
Noncontrolling
|
Investments
at
|
Discontinued
|
Consolidation
|
|
|
(GAAP)
|
Interest
|
Pro-Rata
|
Operations
|
(Non-GAAP)
|
|
|
(GAAP)
|
Interest
|
Pro-Rata
|
Operations
|
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from real estate
operations
|
$
297,790
|
$
19,007
|
$
80,167
|
$
2,170
|
$
361,120
|
|
|
$
318,530
|
$
12,655
|
$
70,909
|
$
5,727
|
$
382,511
|
|
Exclude straight-line rent
adjustment (1)
|
(9,015)
|
-
|
-
|
(144)
|
(9,159)
|
|
|
(5,107)
|
-
|
-
|
(176)
|
(5,283)
|
|
Adjusted revenues
|
288,775
|
19,007
|
80,167
|
2,026
|
351,961
|
|
|
313,423
|
12,655
|
70,909
|
5,551
|
377,228
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add interest and other
income
|
17,862
|
611
|
381
|
(1)
|
17,631
|
|
|
30,080
|
175
|
20,910
|
1
|
50,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add equity in earnings (loss) of
unconsolidated entities, including impairment
|
(12,742)
|
1,719
|
14,081
|
-
|
(380)
|
|
|
30,087
|
5
|
(30,338)
|
-
|
(256)
|
|
Exclude gain on disposition of
unconsolidated entities
|
(15,633)
|
-
|
15,633
|
-
|
-
|
|
|
(45,263)
|
-
|
45,263
|
-
|
-
|
|
Exclude impairment of
unconsolidated real estate
|
35,714
|
-
|
(35,714)
|
-
|
-
|
|
|
1,693
|
-
|
(1,693)
|
-
|
-
|
|
Exclude depreciation and
amortization of unconsolidated entities (see below)
|
15,851
|
-
|
(15,851)
|
-
|
-
|
|
|
13,293
|
-
|
(13,293)
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted total
income
|
329,827
|
21,337
|
58,697
|
2,025
|
369,212
|
|
|
343,313
|
12,835
|
91,758
|
5,552
|
427,788
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
182,787
|
9,454
|
39,254
|
893
|
213,480
|
|
|
181,762
|
6,551
|
71,105
|
2,769
|
249,085
|
|
Add back non-Real Estate
depreciation and amortization (b)
|
1,091
|
-
|
-
|
-
|
1,091
|
|
|
3,108
|
-
|
2,583
|
-
|
5,691
|
|
Add back amortization of
mortgage procurement costs for non-Real Estate Groups
(d)
|
-
|
-
|
-
|
-
|
-
|
|
|
-
|
-
|
161
|
-
|
161
|
|
Exclude straight-line rent
adjustment (2)
|
(1,246)
|
-
|
-
|
-
|
(1,246)
|
|
|
(1,594)
|
-
|
-
|
-
|
(1,594)
|
|
Exclude preference
payment
|
(585)
|
-
|
-
|
-
|
(585)
|
|
|
(585)
|
-
|
-
|
-
|
(585)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
expenses
|
182,047
|
9,454
|
39,254
|
893
|
212,740
|
|
|
182,691
|
6,551
|
73,849
|
2,769
|
252,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
147,780
|
11,883
|
19,443
|
1,132
|
156,472
|
|
|
160,622
|
6,284
|
17,909
|
2,783
|
175,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
(71,105)
|
(3,682)
|
(22,228)
|
(765)
|
(90,416)
|
|
|
(90,089)
|
(3,925)
|
(16,955)
|
(1,743)
|
(104,862)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on early
extinguishment of debt
|
(31,688)
|
-
|
2,785
|
-
|
(28,903)
|
|
|
(1,396)
|
-
|
(954)
|
-
|
(2,350)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings (loss) of
unconsolidated entities, including impairment
|
12,742
|
(1,719)
|
(14,081)
|
-
|
380
|
|
|
(30,087)
|
(5)
|
30,338
|
-
|
256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of
unconsolidated entities
|
15,633
|
-
|
-
|
-
|
15,633
|
|
|
45,263
|
-
|
-
|
-
|
45,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of unconsolidated
real estate
|
(35,714)
|
-
|
-
|
-
|
(35,714)
|
|
|
(1,693)
|
-
|
-
|
-
|
(1,693)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of
unconsolidated entities (see above)
|
(15,851)
|
-
|
15,851
|
-
|
-
|
|
|
(13,293)
|
-
|
13,293
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on disposition of
rental properties and partial interests in rental properties
|
-
|
-
|
-
|
46,527
|
46,527
|
|
|
-
|
-
|
-
|
1,172
|
1,172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of consolidated real
estate
|
-
|
-
|
-
|
-
|
-
|
|
|
(5,783)
|
-
|
-
|
(17,619)
|
(23,402)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization -
Real Estate Groups (a)
|
(60,308)
|
(2,344)
|
(15,237)
|
(178)
|
(73,379)
|
|
|
(62,803)
|
(1,717)
|
(12,654)
|
(1,693)
|
(75,433)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of mortgage
procurement costs - Real Estate Groups (c)
|
(3,418)
|
(422)
|
(614)
|
(7)
|
(3,617)
|
|
|
(3,255)
|
(117)
|
(639)
|
(73)
|
(3,850)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line rent adjustment
(1) + (2)
|
7,769
|
-
|
-
|
144
|
7,913
|
|
|
3,513
|
-
|
-
|
176
|
3,689
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preference payment
|
(585)
|
-
|
-
|
-
|
(585)
|
|
|
(585)
|
-
|
-
|
-
|
(585)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income
taxes
|
(34,745)
|
3,716
|
(14,081)
|
46,853
|
(5,689)
|
|
|
414
|
520
|
30,338
|
(16,997)
|
13,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
23,231
|
-
|
-
|
(18,995)
|
4,236
|
|
|
(13,369)
|
-
|
-
|
6,591
|
(6,778)
|
|
Equity in earnings (loss) of
unconsolidated entities, including impairment
|
(12,742)
|
1,719
|
14,081
|
-
|
(380)
|
|
|
30,087
|
5
|
(30,338)
|
-
|
(256)
|
|
Earnings (loss) from continuing
operations
|
(24,256)
|
5,435
|
-
|
27,858
|
(1,833)
|
|
|
17,132
|
525
|
-
|
(10,406)
|
6,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of
tax
|
27,858
|
-
|
-
|
(27,858)
|
-
|
|
|
(10,520)
|
(114)
|
-
|
10,406
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
3,602
|
5,435
|
-
|
-
|
(1,833)
|
|
|
6,612
|
411
|
-
|
-
|
6,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing
operations attributable to noncontrolling interests
|
(5,435)
|
(5,435)
|
-
|
-
|
-
|
|
|
(525)
|
(525)
|
-
|
-
|
-
|
|
Earnings from discontinued
operations attributable to noncontrolling interests
|
-
|
-
|
-
|
-
|
-
|
|
|
114
|
114
|
-
|
-
|
-
|
|
Noncontrolling
interests
|
(5,435)
|
(5,435)
|
-
|
-
|
-
|
|
|
(411)
|
(411)
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Forest City Enterprises, Inc.
|
$
(1,833)
|
$
-
|
$
-
|
$
-
|
$
(1,833)
|
|
|
$
6,201
|
$
-
|
$
-
|
$
-
|
$
6,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred dividends
|
(3,850)
|
-
|
-
|
-
|
(3,850)
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to
Forest City Enterprises, Inc. common shareholders
|
$
(5,683)
|
$
-
|
$
-
|
$
-
|
$
(5,683)
|
|
|
$
6,201
|
$
-
|
$
-
|
$
-
|
$
6,201
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Depreciation and
amortization - Real Estate Groups
|
$
60,308
|
$
2,344
|
$
15,237
|
$
178
|
$
73,379
|
|
|
$
62,803
|
$
1,717
|
$
12,654
|
$
1,693
|
$
75,433
|
|
(b) Depreciation and
amortization - Non-Real Estate
|
1,091
|
-
|
-
|
-
|
1,091
|
|
|
3,108
|
-
|
2,583
|
-
|
5,691
|
|
Total
depreciation and amortization
|
$
61,399
|
$
2,344
|
$
15,237
|
$
178
|
$
74,470
|
|
|
$
65,911
|
$
1,717
|
$
15,237
|
$
1,693
|
$
81,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Amortization of
mortgage procurement costs - Real Estate Groups
|
$
3,418
|
$
422
|
$
614
|
$
7
|
$
3,617
|
|
|
$
3,255
|
$
117
|
$
639
|
$
73
|
$
3,850
|
|
(d) Amortization of
mortgage procurement costs - Non-Real Estate
|
-
|
-
|
-
|
-
|
-
|
|
|
-
|
-
|
161
|
-
|
161
|
|
Total
amortization of mortgage procurement costs
|
$
3,418
|
$
422
|
$
614
|
$
7
|
$
3,617
|
|
|
$
3,255
|
$
117
|
$
800
|
$
73
|
$
4,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Operating
Income (non-GAAP) to Net Earnings (Loss) (GAAP) (in
thousands):
|
|
|
|
|
Year Ended
January 31, 2011
|
Year Ended
January 31, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus
|
|
|
|
|
|
|
Plus
|
|
|
|
|
Full
|
Less
|
Unconsolidated
|
Plus
|
Pro-Rata
|
|
|
Full
|
Less
|
Unconsolidated
|
Plus
|
Pro-Rata
|
|
|
Consolidation
|
Noncontrolling
|
Investments
at
|
Discontinued
|
Consolidation
|
|
|
Consolidation
|
Noncontrolling
|
Investments
at
|
Discontinued
|
Consolidation
|
|
|
(GAAP)
|
Interest
|
Pro-Rata
|
Operations
|
(Non-GAAP)
|
|
|
(GAAP)
|
Interest
|
Pro-Rata
|
Operations
|
(Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues from real estate
operations
|
$
1,177,661
|
$
68,419
|
$
316,900
|
$
17,848
|
$
1,443,990
|
|
|
$
1,232,013
|
$
50,432
|
$
303,029
|
$
30,378
|
$
1,514,988
|
|
Exclude straight-line rent
adjustment (1)
|
(22,883)
|
-
|
-
|
(609)
|
(23,492)
|
|
|
(18,824)
|
-
|
-
|
(869)
|
(19,693)
|
|
Adjusted revenues
|
1,154,778
|
68,419
|
316,900
|
17,239
|
1,420,498
|
|
|
1,213,189
|
50,432
|
303,029
|
29,509
|
1,495,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add interest and other
income
|
52,826
|
2,635
|
15,666
|
6
|
65,863
|
|
|
53,999
|
718
|
54,476
|
6
|
107,763
|
|
Add gain on disposition of
partial interests in other investment - Nets
|
55,112
|
23,675
|
-
|
-
|
31,437
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add equity in earnings (loss) of
unconsolidated entities, including impairment
|
(30,194)
|
(4,613)
|
19,507
|
-
|
(6,074)
|
|
|
(15,053)
|
(76)
|
15,769
|
-
|
792
|
|
Exclude gain on disposition of
unconsolidated entities
|
(23,461)
|
-
|
23,461
|
-
|
-
|
|
|
(49,761)
|
-
|
49,761
|
-
|
-
|
|
Exclude impairment of
unconsolidated real estate
|
72,459
|
-
|
(72,459)
|
-
|
-
|
|
|
36,356
|
-
|
(36,356)
|
-
|
-
|
|
Exclude depreciation and
amortization of unconsolidated entities (see below)
|
54,439
|
-
|
(54,439)
|
-
|
-
|
|
|
45,994
|
-
|
(45,994)
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted total
income
|
1,335,959
|
90,116
|
248,636
|
17,245
|
1,511,724
|
|
|
1,284,724
|
51,074
|
340,685
|
29,515
|
1,603,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
685,783
|
36,392
|
169,265
|
7,451
|
826,107
|
|
|
704,552
|
24,006
|
259,085
|
12,286
|
951,917
|
|
Add back non-Real Estate
depreciation and amortization (b)
|
5,028
|
-
|
878
|
-
|
5,906
|
|
|
13,480
|
-
|
14,931
|
-
|
28,411
|
|
Add back amortization of
mortgage procurement costs for non-Real Estate Groups
(d)
|
-
|
-
|
69
|
-
|
69
|
|
|
-
|
-
|
563
|
-
|
563
|
|
Exclude straight-line rent
adjustment (2)
|
(5,332)
|
-
|
-
|
-
|
(5,332)
|
|
|
(6,451)
|
-
|
-
|
-
|
(6,451)
|
|
Exclude preference
payment
|
(2,341)
|
-
|
-
|
-
|
(2,341)
|
|
|
(2,341)
|
-
|
-
|
-
|
(2,341)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
expenses
|
683,138
|
36,392
|
170,212
|
7,451
|
824,409
|
|
|
709,240
|
24,006
|
274,579
|
12,286
|
972,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net operating
income
|
652,821
|
53,724
|
78,424
|
9,794
|
687,315
|
|
|
575,484
|
27,068
|
66,106
|
17,229
|
631,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
(315,340)
|
(18,690)
|
(81,184)
|
(5,824)
|
(383,658)
|
|
|
(343,146)
|
(14,739)
|
(66,850)
|
(9,286)
|
(404,543)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on early
extinguishment of debt
|
(21,035)
|
247
|
2,760
|
-
|
(18,522)
|
|
|
36,569
|
-
|
744
|
-
|
37,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings (loss) of
unconsolidated entities, including impairment
|
30,194
|
4,613
|
(19,507)
|
-
|
6,074
|
|
|
15,053
|
76
|
(15,769)
|
-
|
(792)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of
unconsolidated entities
|
23,461
|
-
|
-
|
-
|
23,461
|
|
|
49,761
|
-
|
-
|
-
|
49,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of unconsolidated
real estate
|
(72,459)
|
-
|
-
|
-
|
(72,459)
|
|
|
(36,356)
|
-
|
-
|
-
|
(36,356)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization of
unconsolidated entities (see above)
|
(54,439)
|
-
|
54,439
|
-
|
-
|
|
|
(45,994)
|
-
|
45,994
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain on disposition of
rental properties and partial interests in rental properties
|
202,878
|
-
|
-
|
47,092
|
249,970
|
|
|
-
|
-
|
-
|
5,720
|
5,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of consolidated real
estate
|
(6,803)
|
(1,526)
|
-
|
(79,603)
|
(84,880)
|
|
|
(8,907)
|
-
|
-
|
(27,394)
|
(36,301)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization -
Real Estate Groups (a)
|
(238,819)
|
(9,267)
|
(52,194)
|
(4,296)
|
(286,042)
|
|
|
(246,743)
|
(5,037)
|
(43,868)
|
(8,295)
|
(293,869)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of mortgage
procurement costs - Real Estate Groups (c)
|
(13,487)
|
(1,514)
|
(2,245)
|
(123)
|
(14,341)
|
|
|
(13,709)
|
(565)
|
(2,126)
|
(313)
|
(15,583)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Straight-line rent adjustment
(1) + (2)
|
17,551
|
-
|
-
|
609
|
18,160
|
|
|
12,373
|
-
|
-
|
869
|
13,242
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preference payment
|
(2,341)
|
-
|
-
|
-
|
(2,341)
|
|
|
(2,341)
|
-
|
-
|
-
|
(2,341)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) before income
taxes
|
202,182
|
27,587
|
(19,507)
|
(32,351)
|
122,737
|
|
|
(7,956)
|
6,803
|
(15,769)
|
(21,470)
|
(51,998)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax provision
|
(69,720)
|
-
|
-
|
11,717
|
(58,003)
|
|
|
12,229
|
-
|
-
|
8,326
|
20,555
|
|
Equity in earnings (loss) of
unconsolidated entities, including impairment
|
(30,194)
|
(4,613)
|
19,507
|
-
|
(6,074)
|
|
|
(15,053)
|
(76)
|
15,769
|
-
|
792
|
|
Earnings (loss) from continuing
operations
|
102,268
|
22,974
|
-
|
(20,634)
|
58,660
|
|
|
(10,780)
|
6,727
|
-
|
(13,144)
|
(30,651)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of
tax
|
(16,258)
|
4,376
|
-
|
20,634
|
-
|
|
|
(13,261)
|
(117)
|
-
|
13,144
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
86,010
|
27,350
|
-
|
-
|
58,660
|
|
|
(24,041)
|
6,610
|
-
|
-
|
(30,651)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from continuing
operations attributable to noncontrolling interests
|
(22,974)
|
(22,974)
|
-
|
-
|
-
|
|
|
(6,727)
|
(6,727)
|
-
|
-
|
-
|
|
Earnings from discontinued
operations attributable to noncontrolling interests
|
(4,376)
|
(4,376)
|
-
|
-
|
-
|
|
|
117
|
117
|
-
|
-
|
-
|
|
Noncontrolling
interests
|
(27,350)
|
(27,350)
|
-
|
-
|
-
|
|
|
(6,610)
|
(6,610)
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Forest City Enterprises, Inc.
|
$
58,660
|
$
-
|
$
-
|
$
-
|
$
58,660
|
|
|
$
(30,651)
|
$
-
|
$
-
|
$
-
|
$
(30,651)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred dividends
|
(11,807)
|
-
|
-
|
-
|
(11,807)
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) attributable
to Forest City Enterprises, Inc. common shareholders
|
$
46,853
|
$
-
|
$
-
|
$
-
|
$
46,853
|
|
|
$
(30,651)
|
$
-
|
$
-
|
$
-
|
$
(30,651)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Depreciation and
amortization - Real Estate Groups
|
$
238,819
|
$
9,267
|
$
52,194
|
$
4,296
|
$
286,042
|
|
|
$
246,743
|
$
5,037
|
$
43,868
|
$
8,295
|
$
293,869
|
|
(b) Depreciation and
amortization - Non-Real Estate
|
5,028
|
-
|
878
|
-
|
5,906
|
|
|
13,480
|
-
|
14,931
|
-
|
28,411
|
|
Total
depreciation and amortization
|
$
243,847
|
$
9,267
|
$
53,072
|
$
4,296
|
$
291,948
|
|
|
$
260,223
|
$
5,037
|
$
58,799
|
$
8,295
|
$
322,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c) Amortization of
mortgage procurement costs - Real Estate Groups
|
$
13,487
|
$
1,514
|
$
2,245
|
$
123
|
$
14,341
|
|
|
$
13,709
|
$
565
|
$
2,126
|
$
313
|
$
15,583
|
|
(d) Amortization of
mortgage procurement costs - Non-Real Estate
|
-
|
-
|
69
|
-
|
69
|
|
|
-
|
-
|
563
|
-
|
563
|
|
Total
amortization of mortgage procurement costs
|
$
13,487
|
$
1,514
|
$
2,314
|
$
123
|
$
14,410
|
|
|
$
13,709
|
$
565
|
$
2,689
|
$
313
|
$
16,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forest City
Enterprises, Inc. and Subsidiaries
|
|
Supplemental
Operating Information
|
|
|
|
|
|
|
Net
Operating Income (dollars in
thousands)
|
|
|
|
|
Three Months
Ended January 31, 2011
|
|
|
Three Months
Ended January 31, 2010
|
|
%
Change
|
|
|
|
|
Full
Consolidation (GAAP)
|
Less
Noncontrolling
Interest
|
Plus
Unconsolidated Investments at Pro-Rata
|
Plus
Discontinued Operations
|
Pro-Rata
Consolidation (Non-GAAP)
|
|
|
Full
Consolidation (GAAP)
|
Less
Noncontrolling
Interest
|
Plus
Unconsolidated Investments at Pro-Rata
|
Plus
Discontinued Operations
|
Pro-Rata
Consolidation (Non-GAAP)
|
|
Full
Consolidation (GAAP)
|
|
Pro-Rata
Consolidation (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
$
59,702
|
$
2,913
|
$
5,438
|
$
-
|
$
62,227
|
|
|
$
57,364
|
$
2,658
|
$
5,464
|
$
-
|
$
60,170
|
|
4.1%
|
|
3.4%
|
|
|
Total
|
|
59,073
|
2,915
|
8,036
|
1,132
|
65,326
|
|
|
59,927
|
2,611
|
5,581
|
2,111
|
65,008
|
|
|
|
|
|
Office
Buildings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
57,638
|
2,382
|
1,537
|
-
|
56,793
|
|
|
57,833
|
2,685
|
1,506
|
-
|
56,654
|
|
(0.3%)
|
|
0.2%
|
|
|
Total
|
|
64,886
|
6,125
|
118
|
-
|
58,879
|
|
|
65,248
|
2,608
|
1,506
|
-
|
64,146
|
|
|
|
|
|
Hotels
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
1,788
|
-
|
553
|
-
|
2,341
|
|
|
2,140
|
-
|
564
|
-
|
2,704
|
|
(16.4%)
|
|
(13.4%)
|
|
|
Total
|
|
1,788
|
-
|
553
|
-
|
2,341
|
|
|
2,140
|
-
|
564
|
-
|
2,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
Commercial Land Sales
|
|
282
|
-
|
-
|
-
|
282
|
|
|
(144)
|
-
|
-
|
-
|
(144)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
(1)
|
|
3,361
|
(26)
|
1,966
|
-
|
5,353
|
|
|
4,159
|
423
|
(1,052)
|
-
|
2,684
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
119,128
|
5,295
|
7,528
|
-
|
121,361
|
|
|
117,337
|
5,343
|
7,534
|
-
|
119,528
|
|
1.5%
|
|
1.5%
|
|
|
Total
|
|
129,390
|
9,014
|
10,673
|
1,132
|
132,181
|
|
|
131,330
|
5,642
|
6,599
|
2,111
|
134,398
|
|
|
|
|
|
Residential Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
25,346
|
543
|
6,606
|
-
|
31,409
|
|
|
25,729
|
468
|
6,389
|
-
|
31,650
|
|
(1.5%)
|
|
(0.8%)
|
|
|
Total
|
|
29,441
|
2,315
|
8,447
|
-
|
35,573
|
|
|
38,714
|
860
|
8,706
|
672
|
47,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Military
Housing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
-
|
-
|
-
|
-
|
-
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Total
|
|
7,142
|
-
|
378
|
-
|
7,520
|
|
|
8,522
|
(451)
|
311
|
-
|
9,284
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
(1)
|
|
(2,818)
|
170
|
(191)
|
-
|
(3,179)
|
|
|
4,805
|
(11)
|
-
|
-
|
4,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Residential
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
25,346
|
543
|
6,606
|
-
|
31,409
|
|
|
25,729
|
468
|
6,389
|
-
|
31,650
|
|
(1.5%)
|
|
(0.8%)
|
|
|
Total
|
|
33,765
|
2,485
|
8,634
|
-
|
39,914
|
|
|
52,041
|
398
|
9,017
|
672
|
61,332
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Rental
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
144,474
|
5,838
|
14,134
|
-
|
152,770
|
|
|
143,066
|
5,811
|
13,923
|
-
|
151,178
|
|
1.0%
|
|
1.1%
|
|
|
Total
|
|
163,155
|
11,499
|
19,307
|
1,132
|
172,095
|
|
|
183,371
|
6,040
|
15,616
|
2,783
|
195,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Development
Group
|
|
2,941
|
384
|
136
|
-
|
2,693
|
|
|
365
|
244
|
(323)
|
-
|
(202)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Nets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations
|
|
(312)
|
-
|
-
|
-
|
(312)
|
|
|
(13,648)
|
-
|
2,616
|
-
|
(11,032)
|
|
|
|
|
|
|
Gain on disposition of partial
interest
|
|
-
|
-
|
-
|
-
|
-
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Total
|
|
(312)
|
-
|
-
|
-
|
(312)
|
|
|
(13,648)
|
-
|
2,616
|
-
|
(11,032)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
Activities
|
|
(18,004)
|
-
|
-
|
-
|
(18,004)
|
|
|
(9,466)
|
-
|
-
|
-
|
(9,466)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
$
147,780
|
$
11,883
|
$
19,443
|
$ 1,132
|
$ 156,472
|
|
|
$
160,622
|
$
6,284
|
$
17,909
|
$
2,783
|
$
175,030
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes write-offs of
abandoned development projects, non-capitalizable development costs
and unallocated management and service company overhead, net of
historic and new market tax credit income. Write-offs of
abandoned development projects for the three months ended January
31, 2011 were $7,378 at both full and pro-rata consolidation
compared to $5,490 for the three months ended January 31, 2010 at
both full and pro-rata consolidation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forest City
Enterprises, Inc. and Subsidiaries
|
|
Supplemental
Operating Information
|
|
|
|
|
|
|
Net
Operating Income (dollars in
thousands)
|
|
|
|
|
|
Year Ended
January 31, 2011
|
|
Year Ended
January 31, 2010
|
|
%
Change
|
|
|
|
|
Full
Consolidation
(GAAP)
|
Less
Noncontrolling
Interest
|
Plus
Unconsolidated Investments at Pro-Rata
|
Plus
Discontinued Operations
|
Pro-Rata
Consolidation (Non-GAAP)
|
|
|
Full
Consolidation (GAAP)
|
Less
Noncontrolling Interest
|
Plus
Unconsolidated Investments at Pro-Rata
|
Plus
Discontinued Operations
|
Pro-Rata
Consolidation (Non-GAAP)
|
|
Full
Consolidation (GAAP)
|
|
Pro-Rata
Consolidation (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
$
236,459
|
$
11,366
|
$
21,643
|
$
-
|
$
246,736
|
|
|
$
229,780
|
$
10,448
|
$
22,055
|
$
-
|
$
241,387
|
|
2.9%
|
|
2.2%
|
|
|
Total
|
|
250,055
|
11,379
|
24,738
|
8,894
|
272,308
|
|
|
241,481
|
11,351
|
22,350
|
10,641
|
263,121
|
|
|
|
|
|
Office
Buildings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
235,545
|
10,496
|
15,297
|
-
|
240,346
|
|
|
238,106
|
10,407
|
7,782
|
-
|
235,481
|
|
(1.1%)
|
|
2.1%
|
|
|
Total
|
|
259,111
|
20,508
|
9,950
|
-
|
248,553
|
|
|
257,147
|
10,446
|
7,782
|
-
|
254,483
|
|
|
|
|
|
Hotels
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
11,501
|
-
|
1,480
|
-
|
12,981
|
|
|
11,997
|
-
|
1,510
|
-
|
13,507
|
|
(4.1%)
|
|
(3.9%)
|
|
|
Total
|
|
11,501
|
-
|
1,480
|
-
|
12,981
|
|
|
11,997
|
-
|
1,510
|
-
|
13,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings from
Commercial Land Sales
|
|
|
|
4,652
|
14
|
-
|
-
|
4,638
|
|
|
5,416
|
476
|
-
|
-
|
4,940
|
|
|
|
|
|
Other
(1)
|
|
(3,547)
|
(762)
|
7,132
|
-
|
4,347
|
|
|
(6,677)
|
946
|
(2,561)
|
(677)
|
(10,861)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commercial
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
483,505
|
21,862
|
38,420
|
-
|
500,063
|
|
|
479,883
|
20,855
|
31,347
|
-
|
490,375
|
|
0.8%
|
|
2.0%
|
|
|
Total
|
|
521,772
|
31,139
|
43,300
|
8,894
|
542,827
|
|
|
509,364
|
23,219
|
29,081
|
9,964
|
525,190
|
|
|
|
|
|
Residential Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Apartments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
96,723
|
2,504
|
27,043
|
-
|
121,262
|
|
|
99,151
|
2,042
|
20,969
|
-
|
118,078
|
|
(2.4%)
|
|
2.7%
|
|
|
Total
|
|
113,883
|
4,371
|
31,898
|
900
|
142,310
|
|
|
128,316
|
3,749
|
29,611
|
7,265
|
161,443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Military
Housing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
-
|
-
|
-
|
-
|
-
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Total
|
|
26,966
|
(37)
|
1,503
|
-
|
28,506
|
|
|
37,424
|
(303)
|
1,044
|
-
|
38,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
(1)
|
|
|
|
(3,515)
|
87
|
238
|
-
|
(3,364)
|
|
|
(16,817)
|
(18)
|
231
|
-
|
(16,568)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Residential
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
96,723
|
2,504
|
27,043
|
-
|
121,262
|
|
|
99,151
|
2,042
|
20,969
|
-
|
118,078
|
|
(2.4%)
|
|
2.7%
|
|
|
Total
|
|
137,334
|
4,421
|
33,639
|
900
|
167,452
|
|
|
148,923
|
3,428
|
30,886
|
7,265
|
183,646
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Rental
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
|
580,228
|
24,366
|
65,463
|
-
|
621,325
|
|
|
579,034
|
22,897
|
52,316
|
-
|
608,453
|
|
0.2%
|
|
2.1%
|
|
|
Total
|
|
659,106
|
35,560
|
76,939
|
9,794
|
710,279
|
|
|
658,287
|
26,647
|
59,967
|
17,229
|
708,836
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Land Development
Group
|
|
5,278
|
732
|
339
|
-
|
4,885
|
|
|
2,007
|
421
|
(1,925)
|
-
|
(339)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Nets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operations
|
|
(18,318)
|
(6,243)
|
1,146
|
-
|
(10,929)
|
|
|
(43,489)
|
-
|
8,064
|
-
|
(35,425)
|
|
|
|
|
|
Gain on disposition of
partial interest
|
|
55,112
|
23,675
|
-
|
-
|
31,437
|
|
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Total
|
|
36,794
|
17,432
|
1,146
|
-
|
20,508
|
|
|
(43,489)
|
-
|
8,064
|
-
|
(35,425)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate
Activities
|
|
|
(48,357)
|
-
|
-
|
-
|
(48,357)
|
|
|
(41,321)
|
-
|
-
|
-
|
(41,321)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grand Total
|
|
$
652,821
|
$
53,724
|
$
78,424
|
$
9,794
|
$
687,315
|
|
|
$
575,484
|
$
27,068
|
$
66,106
|
$
17,229
|
$
631,751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes write-offs of
abandoned development projects, non-capitalizable development costs
and unallocated management and service company overhead, net of
historic and new market tax credit income. Write-offs of
abandoned development projects for the year ended January 31, 2011
were $8,056 at full consolidation and $10,613 at pro-rata
consolidation compared to $26,888 for the year ended January 31,
2010 at both full and pro-rata consolidation.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Openings and Acquisitions as of
January 31, 2011
|
|
|
|
|
|
|
|
|
|
Cost at FCE
|
|
|
|
|
|
|
|
|
|
Date
|
|
Pro-Rata
|
Cost at Full
|
Total Cost
|
Pro-Rata Share
|
Sq. ft./
|
|
Gross
|
|
|
|
|
|
Dev (D)
|
Opened
/
|
FCE Legal
|
FCE % (a)
|
Consolidation
|
at 100%
|
(Non-GAAP) (c)
|
No. of
|
|
Leasable
|
|
Lease
|
|
Property
|
Location
|
Acq (A)
|
Acquired
|
Ownership % (a)
|
(1)
|
(GAAP)
(b)
|
(2)
|
(1) X (2)
|
Units
|
|
Area
|
|
Commitment %
|
|
2010
(4)
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Centers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Village at Gulfstream Park (d)
|
Hallandale Beach, FL
|
D
|
Q1-10
|
50.0%
|
50.0%
|
$
0.0
|
$
214.2
|
$
107.1
|
511,000
|
(i)
|
511,000
|
|
80%
|
|
East River Plaza (d)
(e)
|
Manhattan, NY
|
D
|
Q2-10
|
35.0%
|
50.0%
|
0.0
|
390.6
|
195.3
|
527,000
|
|
527,000
|
|
90%
|
|
|
|
|
|
|
|
$
0.0
|
604.8
|
$
302.4
|
1,038,000
|
|
1,038,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office:
|
|
|
|
|
|
|
|
|
|
|
|
|
Waterfront Station - East 4th & West 4th Buildings
|
Washington, D.C.
|
D
|
Q1-10
|
45.0%
|
45.0%
|
$
236.0
|
$
236.0
|
$
106.2
|
631,000
|
(j)
|
|
|
99%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
Presidio Landmark
|
San Francisco, CA
|
D
|
Q3-10
|
100.0%
|
100.0%
|
$
103.7
|
$
103.7
|
$
103.7
|
161
|
|
|
|
38%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total 2010 (f)
|
|
|
|
|
|
$
339.7
|
$
944.5
|
$
512.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Prior Two
Years Openings (17)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
Centers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Promenade in Temecula
Expansion
|
Temecula, CA
|
D
|
Q1-09
|
75.0%
|
100.0%
|
$
113.4
|
$
113.4
|
$
113.4
|
127,000
|
|
127,000
|
|
83%
|
|
Orchard Town
Center
|
Westminster, CO
|
D
|
Q1-08
|
100.0%
|
100.0%
|
148.3
|
148.3
|
148.3
|
980,000
|
|
565,000
|
|
82%
|
|
Shops at
Wiregrass
|
Tampa, FL
|
D
|
Q3-08
|
50.0%
|
100.0%
|
147.5
|
147.5
|
147.5
|
642,000
|
|
352,000
|
|
93%
|
|
White Oak
Village
|
Richmond, VA
|
D
|
Q3-08
|
50.0%
|
100.0%
|
66.1
|
66.1
|
66.1
|
800,000
|
|
294,000
|
|
76%
|
|
|
|
|
|
|
|
$
475.3
|
$
475.3
|
$
475.3
|
2,549,000
|
|
1,338,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Office:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
818 Mission Street
(d)
|
San Francisco, CA
|
A
|
Q1-08
|
50.0%
|
50.0%
|
$
0.0
|
$
15.8
|
$
7.9
|
28,000
|
|
|
|
80%
|
|
Johns Hopkins - 855 North
Wolfe Street
|
East Baltimore, MD
|
D
|
Q1-08
|
76.6%
|
76.6%
|
89.8
|
89.8
|
68.8
|
279,000
|
|
|
|
84%
|
|
Mesa Del Sol - Aperture
Center (d)
|
Albuquerque, NM
|
D
|
Q4-08
|
47.5%
|
47.5%
|
0.0
|
16.2
|
7.7
|
74,000
|
|
|
|
16%
|
|
Mesa Del Sol - Fidelity
(d) (g)
|
Albuquerque, NM
|
D
|
Q4-08/Q3-09
|
47.5%
|
47.5%
|
0.0
|
20.4
|
9.7
|
210,000
|
|
|
|
100%
|
|
|
|
|
|
|
|
$
89.8
|
$
142.2
|
$
94.1
|
591,000
|
|
|
|
|
|
Residential
(h):
|
|
|
|
|
|
|
|
|
|
|
|
|
North Church
Towers
|
Parma Heights, OH
|
A
|
Q3-09
|
100.0%
|
100.0%
|
$
5.0
|
$
5.0
|
$
5.0
|
399
|
|
|
|
90%
|
|
DKLB BKLN (formerly
80 DeKalb) (g)
|
Brooklyn, NY
|
D
|
Q4-09/10
|
80.0%
|
100.0%
|
157.8
|
157.8
|
157.8
|
365
|
|
|
|
99%
|
|
Lucky Strike
|
Richmond, VA
|
D
|
Q1-08
|
100.0%
|
100.0%
|
35.2
|
35.2
|
35.2
|
131
|
|
|
|
95%
|
|
Uptown Apartments (d)
(g)
|
Oakland, CA
|
D
|
Q1-08/Q4-08
|
50.0%
|
50.0%
|
0.0
|
177.6
|
88.8
|
665
|
|
|
|
90%
|
|
Mercantile Place on Main
(g)
|
Dallas, TX
|
D
|
Q1-08/Q4-08
|
100.0%
|
100.0%
|
87.6
|
87.6
|
87.6
|
366
|
|
|
|
89%
|
|
Barrington Place
(d)
|
Raleigh, NC
|
A
|
Q3-08
|
49.0%
|
49.0%
|
0.0
|
23.7
|
11.6
|
274
|
|
|
|
87%
|
|
Legacy Arboretum
(d)
|
Charlotte, NC
|
A
|
Q3-08
|
49.0%
|
49.0%
|
0.0
|
23.1
|
11.3
|
266
|
|
|
|
93%
|
|
Hamel Mill Lofts
(g)
|
Haverhill, MA
|
D
|
Q4-08/Q2-09
|
100.0%
|
100.0%
|
76.9
|
76.9
|
76.9
|
305
|
|
|
|
94%
|
|
Legacy Crossroads
(d) (g)
|
Cary, NC
|
A/D
|
Q4-08/Q3-09
|
50.0%
|
50.0%
|
0.0
|
35.6
|
17.8
|
344
|
|
|
|
94%
|
|
|
|
|
|
|
|
$
362.5
|
$
622.5
|
$
492.0
|
3,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Prior Two Years
Openings (k)
|
|
|
|
|
|
$
927.6
|
$ 1,240.0
|
$
1,061.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total 2009
|
|
|
|
|
|
$
276.2
|
$
276.2
|
$
276.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total 2008
|
|
|
|
|
|
651.4
|
963.8
|
785.2
|
|
|
|
|
|
|
|
|
|
|
|
|
$
927.6
|
$ 1,240.0
|
$
1,061.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See attached
footnotes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Projects
Under Construction as of January 31, 2011 (4)
|
|
|
|
|
|
|
|
|
|
|
Cost at
FCE
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-Rata
|
|
Cost at Full
|
Total Cost
|
Pro-Rata Share
|
|
Sq.
ft./
|
|
Gross
|
|
|
|
|
|
|
Anticipated
|
FCE Legal
|
FCE % (a)
|
|
Consolidation
|
at 100%
|
(Non-GAAP) (c)
|
|
No.
of
|
|
Leasable
|
|
Lease
|
|
|
Property
|
Location
|
Opening
|
Ownership % (a)
|
(1)
|
|
(GAAP) (b)
|
(2)
|
(1) X
(2)
|
|
Units
|
|
Area
|
|
Commitment %
|
|
|
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
Retail
Centers:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Westchester's Ridge Hill
(g)
|
Yonkers, NY
|
2011/2012
|
70.0%
|
100.0%
|
|
$
827.4
|
$
827.4
|
$
827.4
|
|
1,336,000
|
|
1,336,000
|
(l)
|
45%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 Spruce Street (formerly Beekman) (g)
|
Manhattan, NY
|
Q1-11/12
|
49.0%
|
70.0%
|
|
$
875.7
|
$
875.7
|
$
613.0
|
|
903
|
|
|
|
6%
(m)
|
|
|
Foundry Lofts
|
Washington, D.C.
|
Q3-11
|
100.0%
|
100.0%
|
|
60.3
|
60.3
|
60.3
|
|
170
|
|
|
|
|
|
|
|
|
|
|
|
|
$
936.0
|
$
936.0
|
$
673.3
|
|
1,073
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Arena:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barclays Center
|
Brooklyn, NY
|
2012
|
26.6%
|
26.6%
|
|
$
904.3
|
$
904.3
|
$
240.5
|
|
670,000
|
|
18,000 seats
|
(n)
|
55%
(o)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Under Construction
(p)
|
|
|
|
|
|
$
2,667.7
|
$ 2,667.7
|
$
1,741.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee
Development:
|
|
|
|
|
|
|
|
|
|
Sq.ft.
|
|
|
|
|
|
|
Las Vegas City
Hall
|
Las Vegas, NV
|
Q1-12
|
-
(q)
|
-
(q)
|
|
$
0.0
|
$
146.2
|
$
0.0
|
|
270,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FOOTNOTES
|
|
|
|
( a ) As is customary within the
real estate industry, the Company invests in certain real estate
projects through joint ventures. For some of these projects,
the Company provides funding at percentages that differ from the
Company's legal ownership.
|
|
( b ) Amounts are presented on
the full consolidation method of accounting, a GAAP measure. Under
full consolidation, costs are reported as consolidated at 100
percent if we are deemed to have control or to be the primary
beneficiary of our investments in the variable interest entity
("VIE").
|
|
( c ) Cost at pro-rata share
represents Forest City's share of cost, based on the Company's
pro-rata ownership of each property (a non-GAAP measure).
Under the pro-rata consolidation method of accounting the
Company determines its pro-rata share by multiplying its pro-rata
ownership by the total cost of the applicable
property.
|
|
( d ) Reported under the equity
method of accounting. This method represents a GAAP measure for
investments in which the Company is not deemed to have control or
to be the primary beneficiary of our investments in a
VIE.
|
|
( e ) The cost of the property
also includes construction of the 1,248-space parking garage and
structural upgrades to accommodate a possible future residential
project above the retail center. This also includes Costco
which opened Q4-09.
|
|
( f ) The difference between the
full consolidation cost amount (GAAP) of $339.7 million to the
Company's pro-rata share (a non-GAAP measure) of $512.3 million
consists of a reduction to full consolidation for noncontrolling
interest of $129.8 million of cost and the addition of its share of
cost for unconsolidated investments of $302.4
million.
|
|
( g ) Phased-in openings.
Costs are representative of the total project.
|
|
( h ) The lease percentage for
the residential properties represents the occupancy as of January
31, 2011.
|
|
( i ) Includes 89,000 square
feet of office space.
|
|
( j ) Includes 85,000 square
feet of retail space.
|
|
( k ) The difference between the
full consolidation cost amount (GAAP) of $927.6 million to the
Company's pro-rata share (a non-GAAP measure) of $1,061.4 million
consists of a reduction to full consolidation for noncontrolling
interest of $21.0 million of cost and the addition of its share of
cost for unconsolidated investments of $154.8
million.
|
|
( l ) Includes 156,000 square
feet of office space.
|
|
( m ) As of March 29, 2011, 53
leases have been signed since appointments with prospective
residents began on February 18, 2011.
|
|
( n ) The Nets, a member of the
NBA, has a 37 year license agreement to use the
arena.
|
|
( o ) Represents the percentage
of forecasted contractually obligated arena income that is under
contract. Contractually obligated income, which include
revenue from naming rights, sponsorships, suite licenses, Nets
minimum rent and food concession agreements, accounts for 72% of
total forecasted revenues for the Arena.
|
|
( p ) The difference between the
full consolidation cost amount (GAAP) of $2,667.7 million to the
Company's pro-rata share (a non-GAAP measure) of $1,741.2 million
consists of a reduction to full consolidation for noncontrolling
interest of $926.5 million.
|
|
( q ) This is a fee development
project, owned by the City of Las Vegas. Therefore, these
costs are not included on the full consolidation or pro-rata
balance sheet.
|
|
|
Equity Requirements for Projects
Under Construction (a)
|
|
As of January 31,
2011
|
|
|
100%
|
Less
Unconsolidated Investments at 100%
|
Full
Consolidation (GAAP) (b)
|
Less
Noncontrolling Interest
|
Plus
Unconsolidated Investments at Pro-Rata
|
Pro-Rata Consolidation
(Non-GAAP) (c)
|
|
|
(dollars in
millions)
|
|
|
|
|
|
|
|
|
|
Total Cost Under
Construction
|
$ 2,667.7
|
$
-
|
$
2,667.7
|
$
926.5
|
$
-
|
$
1,741.2
|
|
Total Loan Draws and Other
Sources at Completion (d)
|
1,873.3
|
-
|
1,873.3
|
664.5
|
-
|
1,208.8
|
|
Net Equity at
Completion
|
794.4
|
-
|
794.4
|
262.0
|
-
|
532.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Costs Incurred to Date
(e)
|
1,667.9
|
-
|
1,667.9
|
461.2
|
-
|
1,206.7
|
|
Loan Draws and Other Sources to
Date (e)
|
914.9
|
-
|
914.9
|
199.2
|
-
|
715.7
|
|
Net Equity to Date
(e)
|
753.0
|
-
|
753.0
|
262.0
|
-
|
491.0
|
|
|
|
|
|
|
|
|
|
% of Total
Equity
|
95 %
|
|
95 %
|
|
|
92 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remaining Costs
|
999.8
|
-
|
999.8
|
465.3
|
-
|
534.5
|
|
Remaining Loan Draws and Other
Sources (f)
|
958.4
|
-
|
958.4
|
465.3
|
-
|
493.1
|
|
Remaining
Equity
|
$
41.4
|
$
-
|
$
41.4
|
$
-
|
$
-
|
$
41.4
|
|
|
|
|
|
|
|
|
|
% of Total
Equity
|
5 %
|
|
5 %
|
|
|
8 %
|
|
|
|
|
|
|
|
|
|
(a) This schedule includes only
the four properties listed on the previous page. This does
not include costs associated with phased-in units, operating
property renovations and military housing.
|
|
(b) Amounts are presented on the
full consolidation method of accounting, a GAAP measure. Under full
consolidation, costs are reported as consolidated at 100
percent if we are deemed to have control or to be the primary
beneficiary of our investments in the variable interest entity
("VIE").
|
|
(c) Cost at pro-rata share
represents Forest City's share of cost, based on the Company's
pro-rata ownership of each property (a non-GAAP measure).
Under the pro-rata consolidation method of accounting the
Company determines its pro-rata share by multiplying its pro-rata
ownership by the total cost of the applicable property.
|
|
(d) "Other Sources" includes
estimates of third party subsidies and tax credit proceeds.
The timing and the amounts may differ from our
estimates.
|
|
(e) Reflects activity through
January 31, 2011
|
|
(f) One of the loan commitments
require specific leasing hurdles to be achieved prior to drawing
the final amount of the loan. The Company estimates that
approximately $45.0 million at 100% and at full consolidation, and
$31.5 million at pro-rata consolidation of loan commitments are at
risk should these leasing hurdles not be achieved.
|
|
|
|
|
|
|
|
|
Projects Under Development
January 31, 2011
Below is a summary of our active large scale development
projects, which have yet to commence construction, often referred
to as our "shadow pipeline" which are crucial to our long-term
growth. While we cannot make any assurances on the timing or
delivery of these projects, our track record speaks to our ability
to bring large, complex, projects to fruition when there is demand
and available construction financing. The projects listed
below represent pro-rata costs of $566.6
million ($859.0 million at
full consolidation) of Projects Under Development ("PUD") on our
balance sheet and pro-rata mortgage debt of $111.4 million ($190.1
million at full consolidation).
1) Atlantic Yards - Brooklyn, NY
Atlantic Yards is adjacent to the state-of-the art arena, the
Barclays Center, which is designed by the award-winning firms
Ellerbe Becket and SHoP Architects
and is currently under construction. In addition, Atlantic Yards
will feature more than 6,400 units of housing, including over 2,200
affordable units, approximately 250,000 square feet of retail
space, and more than 8 acres of landscaped open space.
2) LiveWork Las Vegas - Las Vegas, NV
LiveWork Las Vegas is a mixed-use project on a 12.7-acre parcel
in downtown Las Vegas. At
full build-out, the project will have a new 260,000-square-foot
City Hall for Las Vegas, a fee
development project, and is also expected to include up to 1
million square feet of office space and approximately 300,000
square feet of retail.
3) The Yards - Washington, D.C.
The Yards is a 42-acre mixed-use project, located in the
neighborhood of the Washington Nationals baseball park in Southeast
D.C. The full development is expected to include up to 2,700
residential units, 1.8 million square feet of office space, and
300,000 square feet of retail and dining space. The Yards
features a 5.5-acre publicly funded public park that is a gathering
place and recreational focus for the community. The first
residential building, Foundry Lofts, commenced construction in
August 2010.
4) Colorado Science + Technology Park at Fitzsimons
- Aurora, CO
The 184-acre Colorado Science + Technology Park at Fitzsimons is
becoming a hub for the biotechnology industry in the Rocky Mountain region. Anchored by the University of Colorado at Denver Health Science
Center, the University of Colorado
Hospital and The Denver Children’s Hospital, the park will offer
cost-effective lease rates; build-to-suit office and research
sites; and flexible lab and office layouts in a cutting-edge
research park. The park is also adjacent to Forest City’s
4,700-acre Stapleton mixed-used development.
5) The Science + Technology Park at Johns Hopkins - Baltimore, MD
The 31-acre Science + Technology Park at Johns Hopkins is a new center for collaborative
research directly adjacent to the world-renowned Johns Hopkins medical and research complex.
Initial plans call for 1.1 million square feet in five
buildings, with future phases that could support additional
expansion. In 2008, the Company opened the first of those
buildings, 855 North Wolfe Street, a 279,000-square-foot office
building anchored by the Johns Hopkins School of Medicine’s
Institute for Basic Biomedical Sciences.
6) Waterfront Station - Washington, D.C.
Located in Southwest
Washington, Waterfront Station is adjacent to the
Waterfront/Southeastern University
MetroRail station. Waterfront Station is expected to include 1.2
million square feet of office space, an estimated 350 residential
units and 125,000 square feet of stores and restaurants. The
project’s first two government office buildings total 631,000
square feet of office, opened in Q1 2010, and included ground-level
retail space. The West 4th St Building received LEED Gold
certification and the East 4th St Building is expected to meet LEED
Silver standards at a minimum. The office component is fully
leased to the District of Columbia
for governmental offices and the retail space is also substantially
leased.
7) 300 Massachusetts Avenue - Cambridge, MA
Located in the science and technology hub of Cambridge, MA, the 300 Massachusetts Avenue
block represents an expansion of University Park @ MIT. In a 50/50 partnership with
MIT, Forest
City is presently focused on a project that reflects a
development program of approximately 260,000 square feet of lab and
office space. Potential redevelopment of the entire block is
possible with the acquisition of adjacent parcels in future phases,
and would result in an approximately 400,000 square foot
project.
Military Housing as of January 31,
2011
Below is a summary of our equity method investments for Military
Housing Development projects. The Company provides development,
construction and management services for these projects and
receives agreed upon fees for these services. The following
phases still have a percentage of units under construction
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|
|
|
|
|
|
|
|
|
|
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Anticipated
|
FCE
|
Cost at
Full
|
Total
Cost
|
No.
|
|
Property
|
Location
|
Opening
|
Pro-Rata
%
|
Consolidation
|
at
100%
|
of
Units
|
|
|
|
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
Military Housing
(7)
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|
|
|
|
|
|
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Pacific Northwest
Communities
|
Seattle, WA
|
2007-2011
|
*
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$
0.0
|
$ 280.5
|
2,985
|
|
Marines, Hawaii Increment
II
|
Honolulu, HI
|
2007-2011
|
*
|
0.0
|
292.7
|
1,175
|
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Navy, Hawaii Increment
III
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Honolulu, HI
|
2007-2011
|
*
|
0.0
|
464.8
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2,520
|
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Navy Midwest
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Chicago, IL
|
2006-2012
|
*
|
0.0
|
200.3
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1,401
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Midwest Millington
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Memphis, TN
|
2008-2012
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*
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0.0
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33.1
|
318
|
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Air Force Academy
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Colorado Springs, CO
|
2007-2013
|
50.0%
|
0.0
|
69.5
|
427
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Hawaii Phase IV
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Kaneohe, HI
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2007-2014
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*
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0.0
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475.1
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1,141
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Total Military
Housing
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|
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$
0.0
|
$ 1,816.0
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9,967
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|
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* The Company's share of
residual cash flow ranges from 0-20% during the life cycle of the
project.
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Recent commitment not yet
closed
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Air Force – Southern Group was
awarded on August 30, 2010. We are currently in exclusive
negotiations with the Air Force. This project is expected to
include 2,185 end state units at four Air Force bases in Sumter,
SC, Manchester, TN, Charleston, SC and Biloxi, MS. There are
330 financially excluded units that will not be encumbered by debt
and which may be removed from the end state at the sole discretion
of the Air Force. The financial closing of the project and
commencement of construction are expected in mid
2011.
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Development fees related to our military housing projects are
earned based on a contractual percentage of the actual development
costs incurred. We also recognize additional development incentive
fees upon successful completion of certain criteria, such as
incentives to realize development cost savings, encourage small and
local business participation, comply with specified safety
standards and other project management incentives as specified in
the development agreements. NOI from development and development
incentive fees is $746,000 and
$5,883,000 for the three months and
year ended January 31, 2011, respectively, and
$4,550,000 and $11,169,000 for the three months and year ended
January 31, 2010, respectively.
Construction management fees are earned based on a contractual
percentage of the actual construction costs incurred. We also
recognize certain construction incentive fees based upon successful
completion of certain criteria as set forth in the construction
contracts. NOI from construction and incentive fees is
$880,000 and $5,634,000 for the three months and year ended
January 31, 2011, respectively, and $2,474,000 and $8,783,000 recognized during the three months and
year ended January 31, 2010, respectively.
Property management and asset management fees are earned based
on a contractual percentage of the annual net rental income and
annual operating income, respectively, that is generated by the
military housing privatization projects as defined in the
agreements. We also recognize certain property management incentive
fees based upon successful completion of certain criteria as set
forth in the property management agreements. Property
management, management incentive and asset management fees
generated NOI of $3,060,000
and $12,865,000 during the three months and year ended
January 31, 2011, respectively, and $3,025,000 and $12,073,000 during the three months and year
ended January 31, 2010, respectively.
Land Held for Development or
Sale as of January 31, 2011
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The Land Development Group
acquires and sells raw land and sells fully-entitled developed lots
to residential, commercial, and industrial customers. The
Land Development Group also owns and develops raw land into
master-planned communities, mixed-use projects and other
residential developments. Below is a summary of our large
Land Development projects.
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Gross
|
Saleable
|
Option
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|
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Location
|
Acres
(1)
|
Acres
(2)
|
Acres
(3)
|
|
|
|
|
|
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|
|
Stapleton - Denver,
CO
|
254
|
156
|
1,369
|
|
|
Mesa del Sol - Albuquerque,
NM
|
3,023
|
1,659
|
5,731
|
|
|
Central Station - Chicago,
IL
|
30
|
30
|
-
|
|
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Texas
|
2,615
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2,357
|
-
|
|
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Florida
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1,412
|
1,412
|
-
|
|
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Carolinas
|
1,349
|
1,029
|
788
|
|
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Ohio
|
996
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663
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470
|
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Arizona
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938
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514
|
-
|
|
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Other
|
798
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789
|
-
|
|
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Total
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11,415
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8,609
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8,358
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|
|
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(1) Represent all acres
currently owned including those used for roadways, open spaces and
parks.
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|
|
(2) Saleable acres represent the
total of all acres currently owned that will be available for
sales. The Land Development Group may choose to further
develop some of the acres into completed sublots prior to
sale.
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|
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(3) Option acres are those acres
that the Land Development Group has a formal option to acquire.
Typically these options are in the form of purchase
agreements with contingencies for the satisfaction of due diligence
reviews.
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Stapleton - Denver,
CO
Stapleton represents one of the nation’s largest urban
redevelopments. At full build out of 4,700 acres or 7.5 square
miles, Stapleton is planned for more than 12,000 homes and
apartments, a projected 3 million square-feet of retail and 10
million square-feet of office/research and development/industrial
space. Centrally located 10 minutes east of Downtown Denver and 20 minutes from
Denver International Airport,
Stapleton will be home to 30,000 residents and 35,000 workers when
complete.
Mesa del Sol -
Albuquerque, NM
Mesa del Sol is a 20-square mile,
mixed-use community on the south mesa of Albuquerque, N.M., five minutes from the
Albuquerque International Airport.
Mesa del Sol’s master plan calls for mixed-use development that
will include 1,400 acres for industrial/commercial and office
development use, 4,400 acres for residential and supporting retail
use, 3,200 acres for open space and parks and 800 acres for schools
and universities.
Central Station - Chicago, IL
Located adjacent to the city’s Museum Campus, and just minutes
from the heart of Chicago's Loop,
the 80-acre Central Station is one of the fastest growing
residential community in the city, with more than 3,656 residential
units completed and occupied, 573 units completed and listed for
sale and another 4,000 units in development. Central Station, a 14
million-square-foot development, is being developed in partnership
with The Fogelson Companies.
Other Significant Land Holdings
Legacy Lakes - Aberdeen, NC
Legacy Lakes is a master-planned community located in the
Pinehurst area. This
community is surrounding the Nicklaus-designed Legacy Golf Course.
Legacy Lakes is 405 acres and includes 718 residential lots.
Of the 405 total acres, 264 are saleable acres and 11 acres
have been sold to date.
Gladden Farms - Marana, AZ
Gladden Farms is a master-planned community that includes
residential and commercial uses in a suburban area of northwest
Tucson. This community includes
parks, trails and a school in a rural setting. Gladden Farms is
1,350 acres and includes approximately 4,141 residential lots and
223 acres of commercial space. As of January 31, 2011, 1,262 lots and 100 commercial
acres have been sold. Of the 1,350 total acres, 904 are
saleable acres and 432 acres have been sold to date.
Cotton Creek -
Mooresville, NC
Cotton Creek is a
master-planned community located in a northern suburb of
Charlotte, NC. This
community will feature a variety of attached and detached home
sites, which will be sold to a mix of national and local builders.
Cotton Creek is 532 acres. When completed the
development is expected to produce approximately 1,300 residential
lots.
Tangerine Crossing -Tucson, AZ
Tangerine Crossing is a master-planned gated residential
community with a major retail component on the exterior in a
desirable region of the Tucson
metropolitan area. This community includes open space, trails
and recreation. Tangerine Crossing is 309 acres and includes
396 residential lots and a 25-acre retail center. As of
January 31, 2011, 201 lots and the 25
commercial acres have been sold. Of the 309 total acres, 103
are saleable acres and 62 acres have been sold to date.
Three Stones – Prosper, TX
Three Stones is a master-planned community of 2,031 acres
located in the growth corridor north of Dallas in the town of Prosper. The community is fully entitled and
the plan includes approximately 3,090 single family lots, 600 units
of attached housing, over 600 acres of parks and open space and 250
acres for commercial/retail use. A variety of single family
lot sizes will be offered, as well as a complete amenity center.
The development of Phase 1 is expected to be completed in late
2012.
San Antonio Portfolio – San Antonio, TX
Forest City owns four (4)
multi-phase communities and finished lots in six (6) additional
locations in the San Antonio area,
predominantly on the west side. Since January 2008, almost 900 of the total 2,563 lots
have been sold. The remaining portfolio is comprised of 510
finished lots and 1,164 undeveloped “paper” lots. Our San
Antonio communities serve several different price ranges, and all
lots are under option contract to one of eight (8) different
builders.
Woodforest – Houston,
TX
Woodforest, which is not included in the acres on the previous
page, is an active, 3,000-acre master planned community, is located
in southern Montgomery County,
north of Houston. Forest
City entered into this project last year through the
formation of a new partnership with Johnson Development, with
Forest City providing capital for
financing and development. The project is zoned for 5,700
units and six (6) active home builders are currently involved with
model homes in place serving a wide range of prices. Over 200
home sales have occurred to date. The project is being
developed adjacent to the 27-hole Woodforest Golf Club that opened
in 2001 and has been rated one of the top courses in the state.
SOURCE Forest City Enterprises, Inc.