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/FIRST AND FINAL ADD -- CLTH011 -- Forest City Enterprises, Inc. Earnings/ Reconciliation of Net Operating Income (non-GAAP) to Net Earnings (Loss)
(GAAP) (in thousands):
Three Months Ended July 31, 2008
Plus
Unconsol- Plus
Full idated Discon- Pro-Rata
Consol- Less Invest- tinued Consol-
idation Minority ments at Opera- idation
(GAAP) Interest Pro-Rata tions (Non-GAAP)
------------------------------------------------
Revenues from real estate
operations $330,239 $15,053 $108,196 $162 $423,544
Exclude straight-line rent
adjustment (1) 2,638 - - - 2,638
--------------------------------------------
Adjusted revenues 332,877 15,053 108,196 162 426,182
Operating expenses 186,090 5,324 80,936 76 261,778
Add back non-Real Estate
depreciation and
amortization (b) 3,502 - 2,828 - 6,330
Add back amortization of
mortgage procurement
costs for non-Real Estate
Groups (d) - - 60 - 60
Exclude straight-line rent
adjustment (2) (1,610) - - - (1,610)
Exclude preference payment (931) - - - (931)
--------------------------------------------
Adjusted operating
expenses 187,051 5,324 83,824 76 265,627
Add interest and other
income 12,887 652 1,482 31 13,748
Add equity in earnings
(loss) of unconsolidated
entities (5,577) (146) 6,503 - 1,072
Add back provision for
decline in real estate of
equity method rental
properties 5,661 - (5,661) - -
Add back equity method
depreciation and
amortization expense (see
below) 8,721 - (8,721) - -
--------------------------------------------
Net Operating Income 167,518 10,235 17,975 117 175,375
Interest expense (82,350) (3,402) (17,767) (43) (96,758)
Loss on early
extinguishment of debt (52) - - - (52)
Equity in earnings (loss)
of unconsolidated
entities 5,577 146 (6,503) - (1,072)
Provision for decline in
real estate of equity
method properties (5,661) - - - (5,661)
Equity method depreciation
and amortization expense
(see above) (8,721) - 8,721 - -
Gain on disposition of
rental properties and
other investments - - - 8,627 8,627
Preferred return on
disposition - - (208) - (208)
Provision for decline in
real estate (365) - - - (365)
Depreciation and
amortization - Real
Estate Groups (a) (66,726) (1,548) (8,325) (90) (73,593)
Amortization of mortgage
procurement costs - Real
Estate Groups (c) (3,169) (117) (396) - (3,448)
Straight-line rent
adjustment (1) + (2) (4,248) - - - (4,248)
Preference payment (931) - - - (931)
--------------------------------------------
Earnings (loss) before
income taxes 872 5,314 (6,503) 8,611 (2,334)
Income tax provision (3,723) - - (3,327) (7,050)
Minority Interest (5,168) (5,168) - - -
Equity in earnings (loss)
of unconsolidated
entities (5,577) (146) 6,503 - 1,072
--------------------------------------------
Earnings (loss) from
continuing operations (13,596) - - 5,284 (8,312)
Discontinued operations,
net of tax 5,284 - - (5,284) -
--------------------------------------------
Net earnings (loss) $(8,312) $- $- $- $(8,312)
============================================
(a) Depreciation and
amortization - Real
Estate Groups $66,726 $1,548 $8,325 $90 $73,593
(b) Depreciation and
amortization - Non-Real
Estate 3,502 - 2,828 - 6,330
--------------------------------------------
Total depreciation
and amortization $70,228 $1,548 $11,153 $90 $79,923
============================================
(c) Amortization of
mortgage procurement
costs - Real Estate
Groups $3,169 $117 $396 $- $3,448
(d) Amortization of
mortgage procurement
costs - Non-Real Estate - - 60 - 60
--------------------------------------------
Total amortization
of mortgage
procurement costs $3,169 $117 $456 $- $3,508
============================================
Reconciliation of Net Operating Income (non-GAAP) to Net Earnings (Loss)
(GAAP) (in thousands):
Three Months Ended July 31, 2007
Plus
Unconsol- Plus
Full idated Discon- Pro-Rata
Consol- Less Invest- tinued Consol-
idation Minority ments at Opera- idation
(GAAP) Interest Pro-Rata tions (Non-GAAP)
------------------------------------------------
Revenues from real estate
operations $287,586 $15,329 $96,040 $12,397 $380,694
Exclude straight-line rent
adjustment (1) (7,158) - - - (7,158)
--------------------------------------------
Adjusted revenues 280,428 15,329 96,040 12,397 373,536
Operating expenses 177,186 4,853 62,399 11,883 246,615
Add back non-Real Estate
depreciation and
amortization (b) 2,022 - 638 - 2,660
Add back amortization of
mortgage procurement
costs for non-Real Estate
Groups (d) - - 10 - 10
Exclude straight-line rent
adjustment (2) (3,688) - - - (3,688)
Exclude preference payment (936) - - - (936)
--------------------------------------------
Adjusted operating
expenses 174,584 4,853 63,047 11,883 244,661
Add interest and other
income 23,423 601 6,228 112 29,162
Add equity in earnings
(loss) of unconsolidated
entities 7,773 232 (7,791) - (250)
Add back provision for
decline in real estate of
equity method rental
properties - - - - -
Add back equity method
depreciation and
amortization expense (see
below) 9,914 - (9,914) - -
--------------------------------------------
Net Operating Income 146,954 11,309 21,516 626 157,787
Interest expense (72,708) (4,391) (16,443) (2,000) (86,760)
Loss on early
extinguishment of debt (1,640) - (39) (363) (2,042)
Equity in earnings (loss)
of unconsolidated
entities (7,773) (232) 7,791 - 250
Provision for decline in
real estate of equity
method properties - - - - -
Equity method depreciation
and amortization expense
(see above) (9,914) - 9,914 - -
Gain on disposition of
rental properties and
other investments 431 - - 106,318 106,749
Preferred return on
disposition - - (5,034) - (5,034)
Provision for decline in
real estate - - - - -
Depreciation and
amortization - Real
Estate Groups (a) (53,719) (1,138) (8,988) (921) (62,490)
Amortization of mortgage
procurement costs - Real
Estate Groups (c) (2,839) (261) (926) (34) (3,538)
Straight-line rent
adjustment (1) + (2) 3,470 - - - 3,470
Preference payment (936) - - - (936)
--------------------------------------------
Earnings (loss) before
income taxes 1,326 5,287 7,791 103,626 107,456
Income tax provision 609 - - (40,040) (39,431)
Minority Interest (5,519) (5,519) - - -
Equity in earnings (loss)
of unconsolidated
entities 7,773 232 (7,791) - (250)
--------------------------------------------
Earnings (loss) from
continuing operations 4,189 - - 63,586 67,775
Discontinued operations,
net of tax 63,586 - - (63,586) -
--------------------------------------------
Net earnings (loss) $67,775 $- $- $- $67,775
============================================
(a) Depreciation and
amortization - Real
Estate Groups $53,719 $1,138 $8,988 $921 $62,490
(b) Depreciation and
amortization - Non-Real
Estate 2,022 - 638 - 2,660
--------------------------------------------
Total depreciation
and amortization $55,741 $1,138 $9,626 $921 $65,150
============================================
(c) Amortization of
mortgage procurement
costs - Real Estate
Groups $2,839 $261 $926 $34 $3,538
(d) Amortization of
mortgage procurement
costs - Non-Real Estate - - 10 - 10
--------------------------------------------
Total amortization
of mortgage
procurement costs $2,839 $261 $936 $34 $3,548
============================================
Reconciliation of Net Operating Income (non-GAAP) to Net Earnings (Loss)
(GAAP) (in thousands):
Six Months Ended July 31, 2008
Plus
Unconsol- Plus
Full idated Discon- Pro-Rata
Consol- Less Invest- tinued Consol-
idation Minority ments at Opera- idation
(GAAP) Interest Pro-Rata tions (Non-GAAP)
------------------------------------------------
Revenues from real estate
operations $637,885 $31,566 $199,342 $706 $806,367
Exclude straight-line rent
adjustment (1) (2,092) - - - (2,092)
--------------------------------------------
Adjusted revenues 635,793 31,566 199,342 706 804,275
Operating expenses 393,766 17,043 145,511 287 522,521
Add back non-Real Estate
depreciation and
amortization (b) 6,821 - 13,439 - 20,260
Add back amortization of
mortgage procurement
costs for non-Real Estate
Groups (d) - - 105 - 105
Exclude straight-line rent
adjustment (2) (3,193) - - - (3,193)
Exclude preference payment (1,867) - - - (1,867)
--------------------------------------------
Adjusted operating
expenses 395,527 17,043 159,055 287 537,826
Add interest and other
income 21,288 1,127 3,083 35 23,279
Add equity in earnings
(loss) of unconsolidated
entities (15,224) (127) 15,530 - 433
Remove gain on disposition
recorded on equity method (881) - 881 - -
Add back provision for
decline in real estate of
equity method rental
properties 5,661 - (5,661) - -
Add back equity method
depreciation and
amortization expense (see
below) 17,710 - (17,710) - -
--------------------------------------------
Net Operating Income 268,820 15,523 36,410 454 290,161
Interest expense (165,721) (6,742) (36,180) (235) (195,394)
Loss on early
extinguishment of debt (5,231) (119) (22) - (5,134)
Equity in earnings (loss)
of unconsolidated
entities 15,224 127 (15,530) - (433)
Gain on disposition of
equity method rental
properties 881 - - - 881
Provision for decline in
real estate of equity
method properties (5,661) - - - (5,661)
Equity method depreciation
and amortization expense
(see above) (17,710) - 17,710 - -
Gain on disposition of
rental properties and
other investments 150 - - 8,627 8,777
Preferred return on
disposition - - (208) - (208)
Provision for decline in
real estate (365) - - - (365)
Depreciation and
amortization - Real
Estate Groups (a) (130,026) (2,531) (16,768) (95) (144,358)
Amortization of mortgage
procurement costs - Real
Estate Groups (c) (6,107) (269) (942) (11) (6,791)
Straight-line rent
adjustment (1) + (2) (1,101) - - - (1,101)
Preference payment (1,867) - - - (1,867)
--------------------------------------------
Earnings (loss) before
income taxes (48,714) 5,989 (15,530) 8,740 (61,493)
Income tax provision 15,856 - - (3,377) 12,479
Minority Interest (5,862) (5,862) - - -
Equity in earnings (loss)
of unconsolidated
entities (15,224) (127) 15,530 - 433
--------------------------------------------
Earnings (loss) from
continuing operations (53,944) - - 5,363 (48,581)
Discontinued operations,
net of tax 5,363 - - (5,363) -
--------------------------------------------
Net earnings (loss) $(48,581) $- $- $- $(48,581)
============================================
(a) Depreciation and
amortization - Real
Estate Groups $130,026 $2,531 $16,768 $95 $144,358
(b) Depreciation and
amortization - Non-Real
Estate 6,821 - 13,439 - 20,260
--------------------------------------------
Total depreciation
and amortization $136,847 $2,531 $30,207 $95 $164,618
============================================
(c) Amortization of
mortgage procurement
costs - Real Estate
Groups $6,107 $269 $942 $11 $6,791
(d) Amortization of
mortgage procurement
costs - Non-Real Estate - - 105 - 105
--------------------------------------------
Total amortization
of mortgage
procurement costs $6,107 $269 $1,047 $11 $6,896
============================================
Reconciliation of Net Operating Income (non-GAAP) to Net Earnings (Loss)
(GAAP) (in thousands):
Six Months Ended July 31, 2007
Plus
Unconsol- Plus
Full idated Discon- Pro-Rata
Consol- Less Invest- tinued Consol-
idation Minority ments at Opera- idation
(GAAP) Interest Pro-Rata tions (Non-GAAP)
------------------------------------------------
Revenues from real estate
operations $555,951 $30,645 $173,222 $24,599 $723,127
Exclude straight-line
rent adjustment (1) (13,000) - - - (13,000)
--------------------------------------------
Adjusted revenues 542,951 30,645 173,222 24,599 710,127
Operating expenses 345,778 10,648 112,953 20,730 468,813
Add back non-Real Estate
depreciation and
amortization (b) 4,019 - 2,517 - 6,536
Add back amortization of
mortgage procurement
costs for non-Real
Estate Groups (d) - - 33 - 33
Exclude straight-line
rent adjustment (2) (5,380) - - - (5,380)
Exclude preference
payment (1,834) - - - (1,834)
--------------------------------------------
Adjusted operating
expenses 342,583 10,648 115,503 20,730 468,168
Add interest and other
income 34,822 1,424 6,851 209 40,458
Add equity in earnings
(loss) of unconsolidated
entities 9,134 584 (9,099) - (549)
Remove gain on
disposition recorded on
equity method (2,106) - 2,106 - -
Add back provision for
decline in real estate
of equity method rental
properties - - - - -
Add back equity method
depreciation and
amortization expense
(see below) 18,787 - (18,787) - -
--------------------------------------------
Net Operating Income 261,005 22,005 38,790 4,078 281,868
Interest expense (149,507) (8,871) (33,297) (3,608) (177,541)
Loss on early
extinguishment of debt (4,184) (821) (459) (363) (4,185)
Equity in earnings (loss)
of unconsolidated
entities (9,134) (584) 9,099 - 549
Gain on disposition of
equity method rental
properties 2,106 - - - 2,106
Provision for decline in
real estate of equity
method properties - - - - -
Equity method
depreciation and
amortization expense
(see above) (18,787) - 18,787 - -
Gain on disposition of
rental properties and
other investments 431 - - 106,318 106,749
Preferred return on
disposition - - (5,034) - (5,034)
Provision for decline in
real estate - - - - -
Depreciation and
amortization - Real
Estate Groups (a) (111,509) (3,825) (17,381) (1,934) (126,999)
Amortization of mortgage
procurement costs - Real
Estate Groups (c) (5,403) (421) (1,406) (69) (6,457)
Straight-line rent
adjustment (1) + (2) 7,620 - - - 7,620
Preference payment (1,834) - - - (1,834)
--------------------------------------------
Earnings (loss) before
income taxes (29,196) 7,483 9,099 104,422 76,842
Income tax provision 14,649 - - (40,348) (25,699)
Minority Interest (8,067) (8,067) - - -
Equity in earnings (loss)
of unconsolidated
entities 9,134 584 (9,099) - (549)
--------------------------------------------
Earnings (loss) from
continuing operations (13,480) - - 64,074 50,594
Discontinued operations,
net of tax 64,074 - - (64,074) -
--------------------------------------------
Net earnings (loss) $50,594 $- $- $- $50,594
============================================
(a) Depreciation and
amortization - Real
Estate Groups $111,509 $3,825 $17,381 $1,934 $126,999
(b) Depreciation and
amortization - Non-Real
Estate 4,019 - 2,517 - 6,536
--------------------------------------------
Total depreciation
and amortization $115,528 $3,825 $19,898 $1,934 $133,535
============================================
(c) Amortization of
mortgage procurement
costs - Real Estate
Groups $5,403 $421 $1,406 $69 $6,457
(d) Amortization of
mortgage procurement
costs - Non-Real Estate - - 33 - 33
--------------------------------------------
Total amortization
of mortgage
procurement costs $5,403 $421 $1,439 $69 $6,490
============================================
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Net Operating Income (dollars in thousands)
-------------------------------------------
Three Months Ended July 31, 2008
--------------------------------
Plus
Unconsol- Plus
Full idated Discon- Pro-Rata
Consol- Less Invest- tinued Consol-
idation Minority ments at Opera- idation
(GAAP) Interest Pro-Rata tions (Non-GAAP)
------------------------------------------------
Commercial Group
Retail
Comparable $59,276 $2,652 $5,470 $- $62,094
--------------------------------------------------------------------
Total 61,535 3,342 5,515 - 63,708
Office Buildings
Comparable 44,489 1,670 2,326 - 45,145
--------------------------------------------------------------------
Total 70,339 2,589 2,445 - 70,195
Hotels
Comparable 5,511 - 6 - 5,517
--------------------------------------------------------------------
Total 5,996 143 6 - 5,859
Earnings from Commercial
Land Sales 4,855 2,005 - - 2,850
Other(1) (3,374) 598 (555) - (4,527)
--------------------------------------------------------------------
Total Commercial Group
Comparable 109,276 4,322 7,802 - 112,756
--------------------------------------------------------------------
Total 139,351 8,677 7,411 - 138,085
Residential Group
Apartments
Comparable 28,641 1,047 6,498 - 34,092
--------------------------------------------------------------------
Total 31,324 711 7,611 117 38,341
Military Housing
Comparable (2) - - - - -
--------------------------------------------------------------------
Total 15,661 396 936 - 16,201
Other (1) (6,716) 50 179 - (6,587)
--------------------------------------------------------------------
Sale of Residential
Development Project - - - - -
--------------------------------------------------------------------
Total Residential Group
Comparable 28,641 1,047 6,498 - 34,092
--------------------------------------------------------------------
Total 40,269 1,157 8,726 117 47,955
Total Rental Properties
Comparable 137,917 5,369 14,300 - 146,848
--------------------------------------------------------------------
Total 179,620 9,834 16,137 117 186,040
Land Development Group 6,717 401 148 - 6,464
The Nets (8,548) - 1,690 - (6,858)
Corporate Activities (10,271) - - - (10,271)
-------------------------------------------------------------------------
Grand Total $167,518 $10,235 $17,975 $117 $175,375
-------------------------------------------------------------------------
Net Operating Income (dollars in thousands)
-------------------------------------------
Three Months Ended July 31, 2007
--------------------------------
Plus
Unconsol- Plus
Full idated Discon- Pro-Rata
Consol- Less Invest- tinued Consol-
idation Minority ments at Opera- idation
(GAAP) Interest Pro-Rata tions (Non-GAAP)
------------------------------------------------
Commercial Group
Retail
Comparable $57,431 $2,674 $4,640 $- $59,397
--------------------------------------------------------------------
Total 62,586 4,588 4,955 - 62,953
Office Buildings
Comparable 46,734 2,613 1,707 - 45,828
--------------------------------------------------------------------
Total 48,298 4,266 1,847 - 45,879
Hotels
Comparable 5,525 - 278 - 5,803
--------------------------------------------------------------------
Total 5,993 (51) 486 - 6,530
Earnings from Commercial
Land Sales (316) - - - (316)
Other (1) (2,890) 944 (32) - (3,866)
--------------------------------------------------------------------
Total Commercial Group
Comparable 109,690 5,287 6,625 - 111,028
--------------------------------------------------------------------
Total 113,671 9,747 7,256 - 111,180
Residential Group
Apartments
Comparable 27,398 752 7,240 - 33,886
--------------------------------------------------------------------
Total 31,671 1,344 13,034 626 43,987
Military Housing
Comparable (2) - - - - -
--------------------------------------------------------------------
Total 1,493 (89) 375 - 1,957
Other (1) (5,103) 4 339 - (4,768)
--------------------------------------------------------------------
Sale of Residential
Development Project 10,090 - - - 10,090
--------------------------------------------------------------------
Total Residential Group
Comparable 27,398 752 7,240 - 33,886
--------------------------------------------------------------------
Total 38,151 1,259 13,748 626 51,266
Total Rental Properties
Comparable 137,088 6,039 13,865 - 144,914
--------------------------------------------------------------------
Total 151,822 11,006 21,004 626 162,446
Land Development Group 6,873 303 83 - 6,653
The Nets (2,226) - 429 - (1,797)
Corporate Activities (9,515) - - - (9,515)
-------------------------------------------------------------------------
Grand Total $146,954 $11,309 $21,516 $626 $157,787
-------------------------------------------------------------------------
Net Operating Income (dollars in thousands)
-------------------------------------------
% Change
---------------------------------
Pro-Rata
Full Consolidation Consolidation
(GAAP) (Non-GAAP)
---------------------------------
Commercial Group
Retail
Comparable 3.2% 4.5%
Total
Office Buildings
Comparable (4.8%) (1.5%)
Total
Hotels
Comparable (0.3%) (4.9%)
Total
Earnings from Commercial
Land Sales
Other (1)
Total Commercial Group
Comparable (0.4%) 1.6%
Total
Residential Group
Apartments
Comparable 4.5% 0.6%
Total
Military Housing
Comparable (2)
Total
Other (1)
Sale of Residential
Development Project
Total Residential Group
Comparable 4.5% 0.6%
Total
Total Rental Properties
Comparable 0.6% 1.3%
Total
Land Development Group
The Nets
Corporate Activities
Grand Total
(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.
(2) Comparable NOI for Military Housing commences once the operating
projects complete initial development phase.
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Net Operating Income (dollars in thousands)
-------------------------------------------
Six Months Ended July 31, 2008
------------------------------
Plus
Unconsol- Plus
Full idated Discon- Pro-Rata
Consol- Less Invest- tinued Consol-
idation Minority ments at Opera- idation
(GAAP) Interest Pro-Rata tions (Non-GAAP)
------------------------------------------------
Commercial Group
Retail
Comparable $116,143 $5,327 $10,924 $- $121,740
--------------------------------------------------------------------
Total 122,733 6,315 11,044 - 127,462
Office Buildings
Comparable 89,575 4,190 4,689 - 90,074
--------------------------------------------------------------------
Total 125,267 4,993 5,023 - 125,297
Hotels
Comparable 6,766 - 216 - 6,982
--------------------------------------------------------------------
Total 9,079 676 216 - 8,619
Earnings from Commercial
Land Sales 5,879 2,242 - - 3,637
Other (1) (29,458) (1,018) (1,081) - (29,521)
--------------------------------------------------------------------
Total Commercial Group
Comparable 212,484 9,517 15,829 - 218,796
--------------------------------------------------------------------
Total 233,500 13,208 15,202 - 235,494
Residential Group
Apartments
Comparable 55,371 1,431 13,250 - 67,190
--------------------------------------------------------------------
Total 64,464 1,405 15,598 454 79,111
Military Housing
Comparable (2) - - - - -
--------------------------------------------------------------------
Total 25,619 396 2,060 - 27,283
Other (1) (15,317) 95 (31) - (15,443)
--------------------------------------------------------------------
Sale of Residential
Development Project - - - - -
--------------------------------------------------------------------
Total Residential Group
Comparable 55,371 1,431 13,250 - 67,190
--------------------------------------------------------------------
Total 74,766 1,896 17,627 454 90,951
Total Rental Properties
Comparable 267,855 10,948 29,079 - 285,986
--------------------------------------------------------------------
Total 308,266 15,104 32,829 454 326,445
Land Development Group 6,158 419 278 - 6,017
The Nets (22,021) - 3,303 - (18,718)
Corporate Activities (23,583) - - - (23,583)
-------------------------------------------------------------------------
Grand Total $268,820 $15,523 $36,410 $454 $290,161
-------------------------------------------------------------------------
Net Operating Income (dollars in thousands)
-------------------------------------------
Six Months Ended July 31, 2007
------------------------------
Plus
Unconsol- Plus
Full idated Discon- Pro-Rata
Consol- Less Invest- tinued Consol-
idation Minority ments at Opera- idation
(GAAP) Interest Pro-Rata tions (Non-GAAP)
------------------------------------------------
Commercial Group
Retail
Comparable $112,509 $5,389 $10,877 $- $117,997
--------------------------------------------------------------------
Total 118,308 7,315 11,220 - 122,213
Office Buildings
Comparable 91,170 5,157 2,890 - 88,903
--------------------------------------------------------------------
Total 94,532 7,807 3,089 - 89,814
Hotels
Comparable 7,426 - 552 - 7,978
--------------------------------------------------------------------
Total 8,286 101 969 - 9,154
Earnings from Commercial
Land Sales 2,064 434 - - 1,630
Other (1) (9,192) 3,043 99 - (12,136)
--------------------------------------------------------------------
Total Commercial Group
Comparable 211,105 10,546 14,319 - 214,878
--------------------------------------------------------------------
Total 213,998 18,700 15,377 - 210,675
Residential Group
Apartments
Comparable 52,202 1,398 14,917 - 65,721
--------------------------------------------------------------------
Total 60,120 2,656 21,793 4,079 83,336
Military Housing
Comparable (2) - - - - -
--------------------------------------------------------------------
Total 4,859 (89) 560 - 5,508
Other(1) (9,339) 4 99 (1) (9,245)
--------------------------------------------------------------------
Sale of Residential
Development Project 10,090 - - - 10,090
--------------------------------------------------------------------
Total Residential Group
Comparable 52,202 1,398 14,917 - 65,721
--------------------------------------------------------------------
Total 65,730 2,571 22,452 4,078 89,689
Total Rental Properties
Comparable 263,307 11,944 29,236 - 280,599
--------------------------------------------------------------------
Total 279,728 21,271 37,829 4,078 300,364
Land Development Group 10,096 734 199 - 9,561
The Nets (5,477) - 762 - (4,715)
Corporate Activities (23,342) - - - (23,342)
-------------------------------------------------------------------------
Grand Total $261,005 $22,005 $38,790 $4,078 $281,868
-------------------------------------------------------------------------
Net Operating Income (dollars in thousands)
-------------------------------------------
% Change
-----------------------------------
Pro-Rata
Full Consolidation Consolidation
(GAAP) (Non-GAAP)
-----------------------------------
Commercial Group
Retail
Comparable 3.2% 3.2%
Total
Office Buildings
Comparable (1.7%) 1.3%
Total
Hotels
Comparable (8.9%) (12.5%)
Total
Earnings from Commercial
Land Sales
Other (1)
Total Commercial Group
Comparable 0.7% 1.8%
Total
Residential Group
Apartments
Comparable 6.1% 2.2%
Total
Military Housing
Comparable (2)
Total
Other (1)
Sale of Residential
Development Project
Total Residential Group
Comparable 6.1% 2.2%
Total
Total Rental Properties
Comparable 1.7% 1.9%
Total
Land Development Group
The Nets
Corporate Activities
Grand Total
(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.
(2) Comparable NOI for Military Housing commences once the operating
projects complete initial development phase.
Development Pipeline
July 31, 2008
2008 Openings and Acquisitions (6)
Dev FCE Legal Pro-
(D) Date Owner- Rata
Acq Opened / ship % FCE %
Property Location (A) Acquired (h) (h)(1)
--------------------------------------------------------------------------
Retail Centers:
Orchard Town Center Westminster,
CO D Q1-08 100.0% 100.0%
Office:
818 Mission Street (c) San Francisco,
CA A Q1-08 50.0% 50.0%
Johns Hopkins
- 855 North Wolfe Street East Baltimore,
MD D Q1-08 76.6% 76.6%
Residential:
Lucky Strike Richmond, VA D Q1-08 100.0% 100.0%
Uptown Apartments(c)(e) Oakland, CA D Q1-08/Q3-08 50.0% 50.0%
Mercantile Place on
Main (e) Dallas, TX D Q1-08/Q4-08 100.0% 100.0%
Total Openings and
Acquisitions (d)
--------------------------------------------------------------------------
Residential Phased-In
Units (c)(e):
Cobblestone Court Painesville,
OH D 2006-08 50.0% 50.0%
Stratford Crossing Wadsworth, OH D 2007-09 50.0% 50.0%
Sutton Landing Brimfield, OH D 2007-09 50.0% 50.0%
Total (g)
--------------------------------------------------------------------------
See Attached Footnotes
Cost at Cost at FCE
Full Pro-Rata
Consoli- Total Share
dation Cost (Non-GAAP) Sq. ft./ Gross
Property (GAAP) at 100% (b) No. of Leasable
(a) (2) (1)X(2) Units Area
--------------------------------------------------------------------------
(in millions)
--------------------------
Retail Centers:
Orchard Town Center $170.5 $170.5 $170.5 980,000 565,000 (f)
--------------------------========= ============
Office:
818 Mission Street (c) $0.0 $20.6 $10.3 34,000
Johns Hopkins - 855 North
Wolfe Street 111.5 111.5 85.4 278,000 (i)
------------------------------------
$111.5 $132.1 $95.7 312,000
--------------------------==========
Residential:
Lucky Strike $38.5 $38.5 $38.5 131
Uptown Apartments (c)(e) 0.0 205.4 102.7 665
Mercantile Place on
Main (e) 146.1 146.1 146.1 366 (j)
------------------------------------
$184.6 $390.0 $287.3 1,162
--------------------------==========
Total Openings and --------------------------
Acquisitions (d) $466.6 $692.6 $553.5
==========================
--------------------------------------------------------------
Residential Phased-In
Units (c) (e): Opened in '08 /
Total
---------------
Cobblestone Court $0.0 $24.6 $12.3 96/304
Stratford Crossing 0.0 25.3 12.7 72/348
Sutton Landing 0.0 15.9 8.0 84/216
------------------------------------
Total (g) $0.0 $65.8 $33.0 252/868
====================================
--------------------------------------------------------------
See Attached Footnotes
Development Pipeline
July 31, 2008
Under Construction (13)
Dev FCE Pro-
(D) Antici- Legal Rata
Acq pated Ownership FCE %
Property Location (A) Opening % (h) (h)(1)
--------------------------------------------------------------------------
Retail Centers:
Shops at Wiregrass Tampa, FL D Q3-08 50.0% 100.0%
White Oak Village Richmond, VA D Q3-08 50.0% 100.0%
Promenade at Temecula Expansion Temecula, CA D Q1-09 75.0% 75.0%
Village at Gulfstream (c) Hallandale,
FL D Q3-09 50.0% 50.0%
East River Plaza (c) Manhattan,
NY D Q3-09 35.0% 50.0%
Ridge Hill (e) Yonkers, NY D Q4-09/Q2-10 70.0% 100.0%
Office:
Mesa Del Sol Town Center(c) Albuquerque,
NM D Q4-08 47.5% 47.5%
Mesa Del Sol - Fidelity (c) Albuquerque,
NM D Q4-08 47.5% 47.5%
Waterfront Station - East
4th & West 4th Buildings(c) Washington
DC D Q1-10 45.0% 45.0%
Residential:
Haverhill Haverhill,
MA D Q1-09 100.0% 100.0%
80 Dekalb Avenue (e) Brooklyn, NY D Q3-09/Q1-10 70.0% 100.0%
The Yards - Pattern Shop Lofts Washington
DC D Q4-09 90.0% 90.0%
Beekman (e) Manhattan,
NY D Q2-10/11 49.0% 70.0%
Total Under Construction (k)
--------------------------------------------------------------------------
Residential Phased-In
Units (c) (e):
Stratford Crossing Wadsworth,
OH D 2007-09 50.0% 50.0%
Sutton Landing Brimfield,
OH D 2007-09 50.0% 50.0%
Total (p)
--------------------------------------------------------------------------
See Attached Footnotes
Military Housing - see Footnote q
Development Pipeline
July 31, 2008
Under Construction (13)
Cost at Cost at FCE
Full Pro-Rata
Consoli- Total Share
dation Cost (Non-GAAP) Sq. ft./
Property (GAAP) at 100% (b) No. of
(a) (2) (1)X(2) Units
--------------------------------------------------------------------------
(in millions)
-----------------------------
Retail Centers:
Shops at Wiregrass $149.1 $149.1 $149.1 646,000
White Oak Village 70.6 70.6 70.6 800,000
Promenade at Temecula Expansion 102.9 102.9 77.2 126,000
Village at Gulfstream (c) 0.0 182.2 91.1 466,000
East River Plaza (c) 0.0 407.4 203.7 517,000
Ridge Hill (e) 670.7 670.7 670.7 1,200,000
----------------------------------------
$993.3 $1,582.9 $1,262.4 3,755,000
------------------------------==========
Office:
Mesa Del Sol Town Center (c) $0.0 $18.7 $8.9 74,000 (n)
Mesa Del Sol - Fidelity (c) 0.0 30.9 14.7 210,000
Waterfront Station - East 4th
& West 4th Buildings (c) 0.0 330.2 148.6 628,000 (o)
----------------------------------------
$0.0 $379.8 $172.2 912,000
------------------------------==========
Residential:
Haverhill $75.3 $75.3 $75.3 305
80 Dekalb Avenue (e) 152.0 152.0 152.0 365
The Yards - Pattern Shop Lofts 55.0 55.0 49.5 170
Beekman (e) 875.7 875.7 613.0 904
----------------------------------------
$1,158.0 $1,158.0 $889.8 1,744
------------------------------==========
-----------------------------
Total Under Construction (k) $2,151.3 $3,120.7 $2,324.4
=============================
--------------------------------------------------------------------------
Residential Phased-In
Units (c) (e): Under Const. / Total
--------------------
Stratford Crossing $0.0 $25.3 $12.7 168/348
Sutton Landing 0.0 15.9 8.0 108/216
----------------------------------------
Total (p) $0.0 $41.2 $20.7 276/564
========================================
--------------------------------------------------------------------------
See Attached Footnotes
Military Housing - see Footnote q
Development Pipeline
July 31, 2008
Under Construction (13) Gross
Leasable Lease
Property Area Commitment%
Retail Centers:
Shops at Wiregrass 356,000 78%
White Oak Village 294,000 89%
Promenade at Temecula Expansion 126,000 57%
Village at Gulfstream (c) 466,000 (l) 40%
East River Plaza (c) 517,000 70%
Ridge Hill (e) 1,200,000 (m) 14%
-----------
2,959,000
===========
Office:
Mesa Del Sol Town Center (c) 31%
Mesa Del Sol - Fidelity (c) 100%
Waterfront Station - East 4th & West
4th Buildings (c) 98%
Residential:
Haverhill
80 Dekalb Avenue (e)
The Yards - Pattern Shop Lofts
Beekman (e)
Total Under Construction (k)
--------------------------------------------------------------------------
Residential Phased-In Units (c) (e):
Stratford Crossing
Sutton Landing
Total (p)
--------------------------------------------------------------------------
See Attached Footnotes
Military Housing - see Footnote q
Development Pipeline
July 31, 2008 Footnotes
(a) 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").
(b) 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.
(c) 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.
(d) The difference between the full consolidation cost amount (GAAP) of
$466.6 million to the Company's pro-rata share (a non-GAAP measure) of
$553.5 million consists of a reduction to full consolidation for
minority interest of $26.1 million of cost and the addition of its
share of cost for unconsolidated investments of $113.0 million.
(e) Phased-in openings. Costs are representative of the total project.
(f) Includes 177,000 square feet for Target and 97,000 square feet for
JC Penney that opened in Q3-06, as well as 16,000 square feet of
office space.
(g) The difference between the full consolidation cost amount (GAAP) of
$0.0 million to the Company's pro-rata share (a non-GAAP measure) of
$33.0 million consists of the Company's share of cost for
unconsolidated investments of $33.0 million.
(h) 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.
(i) Includes 22,000 square feet of retail space.
(j) Includes 18,000 square feet of retail space.
(k) The difference between the full consolidation cost amount (GAAP) of
$2,151.3 million to the Company's pro-rata share (a non-GAAP measure)
of $2,324.4 million consists of a reduction to full consolidation for
minority interest of $293.9 million of cost and the addition of its
share of cost for unconsolidated investments of $467.0 million.
(l) Includes 86,000 square feet of office space.
(m) Includes 156,000 square feet of office space.
(n) Includes 22,000 square feet of retail space.
(o) Includes 85,000 square feet of retail space.
(p) The difference between the full consolidation cost amount (GAAP) of
$0.0 million to the Company's pro-rata share (a non-GAAP measure) of
$20.7 million consists of the Company's share of cost for
unconsolidated investments of $20.7 million.
(q) Below is a summary of our equity method investments for Military
Housing Development projects. The Company provides services for these
projects including development, construction, and management and
receives agreed upon fees for these services. (See pages 6-7 for net
fee revenue included in NOI.)
FCE Cost Total Sq.ft./
Antici- Pro- at Full Cost No. of
pated Rata% Consol- at 100% Units
Property Location Opening (h) idation(a)
--------------------------------------------------------------------------
(in millions)
-----------------------------
Military Housing: -
Openings (1)
Ohana Military
Communities,
Hawaii
Increment I Honolulu,
HI 2005-Q2-08 * $0.0 $316.5 1,952
----------------------------
Military Housing
Under
Construction (7)
Midwest Millington Memphis,
TN 2008-2009 * $0.0 $38.1 318
Navy Midwest Chicago,
IL 2006-2009 * 0.0 264.7 1,658
Air Force Academy Colorado
Springs,
CO 2007-2009 50.0% 0.0 82.5 427
Marines, Hawaii
Increment II Honolulu,
HI 2007-2010 * 0.0 338.8 1,175
Navy, Hawaii
Increment III Honolulu,
HI 2007-2010 * 0.0 614.6 2,519
Pacific Northwest
Communities Seattle,
WA 2007-2010 * 0.0 264.5 2,986
Hawaii Phase IV Kaneohe,
HI 2007-2014 * 0.0 257.9 917
----------------------------
Total Under
Construction $0.0 $1,861.1 10,000
----------------------------
Total Military
Housing (8) $0.0 $2,177.6 11,952
============================
* The Company's share of residual cash flow ranges from 0-20% during
the life cycle of the project.
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