CLEVELAND, Dec. 6, 2012 /PRNewswire/ -- Forest City
Enterprises, Inc. (NYSE: FCEA and FCEB) today announced FFO,
Operating FFO, net earnings/loss and revenues for the year to date
and the third quarter ended October 31,
2012.
FFO
Third-quarter FFO (funds from operations) was $79.6 million, compared with $61.2 million in the third quarter of 2011. On a
fully diluted, per-share basis, third-quarter 2012 FFO was
$0.37, compared with $0.29 in 2011.
Year-to-date FFO was $189.9
million, or $0.91 per share,
compared with $218.9 million, or
$1.07 per share, for the first nine
months of 2011. A full description of factors impacting FFO and FFO
per share for the third quarter and first nine months of 2012 is
included in the company's third-quarter 2012 Supplemental Package
furnished to the SEC and available on the company's website.
FFO and FFO per share are non-GAAP measures commonly used by
publicly traded real estate companies. Included with this press
release is a table reconciling FFO to net earnings (loss), the most
comparable GAAP measure.
Operating FFO
In an effort to provide investors with additional information
about its core operations, the company initiated reporting
Operating FFO in the second quarter of 2012. Operating FFO is a
non-GAAP measure derived from FFO. Included with this press release
are tables reconciling Operating FFO to FFO, and then to net
earnings (loss).
Third-quarter Operating FFO was $65.0
million, a 19.8 percent increase over third-quarter 2011
Operating FFO of $54.3 million.
Year-to-date Operating FFO was $192.9
million, a 10.2 percent increase compared with $175.1 million for the first nine months of 2011.
For additional explanation of factors impacting Operating FFO
variances, see the section titled "Review of Results" in this news
release.
Net Earnings/Loss
The third-quarter net loss attributable to Forest City
Enterprises, Inc. was $1.1 million,
compared with a net loss of $36.8
million in the third quarter of 2011. The net loss for the
nine months ended October 31, 2012,
was $22.0 million, compared with net
earnings of $18.9 million for the
same period in 2011. The company's reported net earnings/loss are
impacted by a variety of factors, including transactions, which can
create substantial variances in net earnings/loss between reporting
periods. A full description of these factors is included in the
company's third quarter 2012 Supplemental Package furnished to the
SEC and available on the company's website, www.forestcity.net.
After preferred stock dividends and inducements related to a
preferred stock conversion during the quarter, the third-quarter
net loss attributable to Forest City Enterprises, Inc. common
shareholders was $18.8 million, or
$0.11 per share, compared with a net
loss of $40.7 million, or
$0.24 per share, for the third
quarter of 2011. For the first nine months of 2012, the net loss
attributable to common shareholders was $47.5 million, or $0.28 per share, compared with net earnings of
$7.4 million, or $0.04 per share, in 2011. Per-share amounts are
on a fully diluted basis.
In addition to factors that also impacted Operating FFO, as
mentioned under "Review of Results" later in this press release,
net earnings/loss was negatively impacted by a third-quarter
impairment of $30.2 million on an
office building in Cleveland. The company made the decision
to reposition the asset after evaluating a number of potential
long-term strategies for the property. That decision changed
the probable holding period for the asset and required the company
to adjust the carrying value of the asset to its estimated fair
market value.
Revenues
Third-quarter 2012 consolidated revenues from real estate
operations increased to $291.4
million, from $252.6 million
in the third quarter of 2011. For the first nine months of 2012,
consolidated revenues from real estate operations were $843.1 million, compared with $794.2 million for the first nine months of
2011.
Commentary
"Our results for the third quarter and year to date continued to
reflect solid overall performance from our portfolio, particularly
multifamily," said David J. LaRue,
Forest City president and chief executive officer. "Third-quarter
FFO was up over last year, and Operating FFO showed double-digit
increases over the prior year for both the quarter and year to
date. These results also reflect continued execution on the key
drivers of our strategic plan.
"In residential multifamily, growth in comparable property net
operating income was in line with peers, following four consecutive
quarters of double-digit gains. Comp NOI in both retail and office
was up modestly, and leasing spreads were up 10.7 percent in our
regional malls and 2.6 percent in office, on a rolling 12-month
basis. Our regional mall sales averaged $465 per square foot on a rolling 12-month basis,
the eighth consecutive quarter of increases, and our year-to-date
comparable mall sales increased 5.2 percent, compared with the same
period in 2011, demonstrating solid fundamentals in our retail
portfolio.
"We continued to focus on strengthening our capital structure
during the quarter, executing privately negotiated exchanges for
$133.7 million of our 7 percent
convertible preferred stock for common stock and a cash inducement.
The transaction substantially reduced the outstanding preferred,
was non-dilutive and eliminated approximately $9.4 million in future annual fixed
charges.
"The widely celebrated opening of the Barclays Center arena in
Brooklyn was a highlight of the
quarter. The state-of-the-art arena has performed very well
and day-of-event revenues have been in line with our expectations
to date. The opening also marks the delivery of the last of our
"Big 3" New York projects – 8
Spruce Street, Westchester's
Ridge Hill and now Barclays
Center. Our under-construction pipeline now consists of seven
projects with total costs of $257
million, at full consolidation, down from $1.9 billion at this same time last year, and
down from $2.7 billion at its peak in
2010. It has been a remarkable journey through very difficult
conditions, and one that some doubted we would be able to
complete. Today we are a much stronger company with a
dramatically reduced risk profile, a focused strategy, and
substantial future opportunity.
"We continue to demonstrate our value-creation model as we take
advantage of existing entitlement in our core markets to drive
future growth. The latest example is B2, the first apartment
building at Atlantic Yards in Brooklyn, where we expect to break ground
December 18. The project will be built using state-of-the-art
modular technology that is expected to reduce costs over time,
while also speeding delivery and improving quality and
sustainability.
"We continue to make progress in executing our strategy of
focusing on core rental properties by exiting our land development
business. To date, we have closed the sale of approximately three
quarters of the land projects targeted for disposition, and we
continue to market the balance.
"As we first announced at our October
22 Investor Day at Barclays Center, we are in the process of
finalizing a partnership with a large institutional investor to
create a $400 million multifamily
development fund to invest in five of our core markets. The fund
will target activation of our existing entitlement as well as
select new opportunities. We expect to complete the
partnership agreement before the end of the year and to provide
investors with more detail at that time.
"We are also in the final stages of closing the previously
announced effort to bring a partner into to the ownership of 8
Spruce Street, our apartment high rise in lower Manhattan, and to monetize some of the
substantial value created by the development of this iconic
property. The transaction values the property at
approximately $1 billion, and we
expect to close by the end of the year.
"Finally, earlier this week, we announced the addition of a new
independent director to our board, achieving our goal of moving to
a majority independent board. Kenneth J.
Bacon is a seasoned executive who has held senior positions
with Fannie Mae, Resolution Trust and Morgan Stanley, among others,
and who also has outstanding board experience, having served as a
director for Comcast Corporation since 2002. We are thrilled
that he has joined our board."
Review of Results
Third-quarter Operating FFO was $65.0
million, a 19.8 percent increase over third-quarter 2011
Operating FFO of $54.3 million.
Year-to-date Operating FFO was $192.9
million, a 10.2 percent increase compared with $175.1 million for the first nine months of
2011.
The increase in Operating FFO for the first nine months of 2012,
compared with the same period in 2011, is attributable to a variety
of factors. Overall Operating FFO from the company's
Commercial, Residential and Land portfolio increased $24.2 million. The largest components of
this increase were higher NOI from mature properties of
$16.4 million, decreased interest
expense of $12.9 million, increased
income from the change in fair market value of derivatives of
$10.9 million, and increased
residential lot sales, primarily at Stapleton in Denver, of $6.7
million. These increases were offset by a number of
factors, the most significant of which were reduced capitalized
interest on projects under construction and development, including
land development, of $18.5 million,
reduced Operating FFO from properties sold of $6.6 million, and non-recurring 2011 lease
cancellation fee income of $6.5
million.
Corporate Operating FFO decreased $6.4
million, primarily due to increased severance, outplacement
and general corporate expenses of $3.9
million, and increased interest expense of $2.5 million, primarily related to certain senior
notes, offset by lower average borrowings on the company's bank
revolving credit facility.
A full description of factors impacting Operating FFO for the
third quarter and first nine months of 2012 is included in the
company's third quarter 2012 Supplemental Package furnished to the
SEC and available on the company's website.
NOI, Occupancies and Rent
Overall comparable property NOI increased 1.8 percent during the
third quarter, compared with the same period in 2011, with
increases of 6.0 percent in apartments, 0.6 percent in office, and
0.5 percent in retail.
Comparable property NOI, defined as NOI from properties operated
in the three months ended October 31,
2012 and 2011, 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 are schedules that present
comparable property NOI on the full-consolidation method and a
reconciliation of NOI to net earnings (loss).
Comparable office occupancies were 90.4 percent as of
October 31, 2012, compared with 90.6
percent at the same point last year. On a rolling 12-month basis,
rent per square foot in new office leases increased 2.6 percent
over expiring leases.
At October 31, 2012, comparable
retail occupancies were 91.6 percent, compared with 91.9 percent at
the end of the third quarter of 2011. Sales in the company's
regional malls averaged $465 per
square foot on a rolling 12-month basis, up from $434 per square foot for the same period in 2011,
and up from $461 per square foot at
the end of the second quarter of 2012. Year-to-date comparable
sales in the company's regional malls increased 5.2 percent,
compared with results for the first nine months of 2011. On a
rolling 12-month basis, new, same-space leases in the company's
regional malls increased 10.7 percent over prior rents.
In the residential portfolio, comparable average occupancies for
the nine months ended October 31,
2012, were 94.7 percent, up from 94.6 percent last year.
Average monthly residential rents for the company's comparable
apartments rose to $1,194
year-to-date, a 4.6 percent increase compared with $1,141 at October 31,
2011. Average rents in the company's comparable apartments
in its core markets were $1,585
year-to-date, a 5.4 percent increase from $1,504 for the first nine months of 2011.
Debt Maturities, Financing Activity and Liquidity
Since January 31, 2012, the
company has addressed, through closed loans and committed
financings, $1.1 billion at full
consolidation ($1.3 billion at its
pro-rata share) of the $1.2 billion
($1.4 billion at pro-rata) of
long-term debt maturities coming due in fiscal year 2012.
Additionally, inclusive of Senior and Subordinated Debt, the
company addressed $260.3 million
($279.3 million at pro-rata) of loans
maturing in future years.
In financing its real estate assets, the company uses
nonrecourse mortgage debt at the property level and seeks to fix
its mortgage debt through long-term financings. This allows
the company to benefit from historically low interest rates in the
current environment. For the first nine months of 2012, the
company's overall weighted-average cost of debt decreased to 5.10
percent, compared with 5.21 percent at October 31, 2011. Fixed-rate debt represented 84
percent of total debt at October 31,
2012. The company's weighted-average life of its debt
increased to 6.90 years at October 31,
2012, from 5.40 years for the same period in 2011.
At October 31, 2012, the company
had $268.8 million ($238.6 million at full consolidation) in cash on
its balance sheet and $213.8 million
of available capacity on its revolving bank line of credit.
Recent Openings and Projects Under Construction
At the end of the third quarter, Forest City had seven projects
under construction at a total cost of $323.9
million, at the company's pro-rata share ($257.2 million at full consolidation). This
compares with $1.3 billion at
pro-rata ($1.9 billion at full
consolidation) at the end of the third quarter of 2011.
As previously mentioned, the September
28 opening of the Barclays Center arena in
Brooklyn was a highlight of the
third quarter and an event that drew international attention to the
property and to Brooklyn. In just its first two months of
operations, the facility has already hosted dozens of major events.
Initial event-day revenues have met the company's expectations, and
the quality of the customer experience and venue operations have
exceeded expectations.
At the beginning of the third quarter, the company opened the
first phase of Botanica Eastbridge at Stapleton in
Denver, and the 118-unit apartment
community is 27 percent leased. Also at Stapleton, lease-up
continues for Aster Town Center, which opened its
85-unit first phase in the first quarter of this year. Aster
is already 97 percent leased.
In Washington, D.C., three
separate projects are underway at The Yards, our mixed-use
development in the rapidly growing Capitol Riverfront
District. At Boilermaker Shops, a
40,000-square-foot, adaptive reuse project with ground level retail
and mezzanine office space, initial tenants move-ins are underway
with openings expected to begin during the fourth quarter.
Construction continues at Lumber Shed, a
32,000-square-foot, adaptive-reuse office building with
street-level retail, and at Twelve12, a mixed-use
project with 218 rental apartments above a 50,000-square-foot
Harris Teeter grocery store and a
28,000-square-foot Vida Fitness facility. Lumber Shed is
expected to open in the third quarter of 2013, with Twelve12
following in the third quarter of 2014.
Construction continues on the Continental
Building, a 203-unit, adaptive-reuse apartment community in
downtown Dallas at the company's
Mercantile Place on Main development. Completion is expected in the
first quarter of 2013.
In Boston, construction
continues on 120 Kingston, a 240-unit apartment
building. The project is located on the Rose Kennedy Greenway near
the border of the city's financial district and Chinatown
neighborhoods, and is expected to be completed in the second
quarter of 2014.
Finally, during the third quarter the company activated an
existing entitlement and commenced construction of Stratford
Avenue Apartments, a 128-unit multifamily project in
Fairfield, Connecticut.
Outlook
"Overall, our third quarter and nine month results met our
expectations, as evidenced by strong Operating FFO results in both
periods," said LaRue. "As we have since the beginning of the year,
we continue to execute on our key strategies: focusing on core
markets and products, building a strong capital structure and
improving our balance sheet, and pursuing operational excellence to
drive growth from the mature portfolio, newly opened projects, and
new development.
"While we remain alert to changing conditions and cautious
regarding macroeconomic factors, we are confident in our strategy
and in our ability to deliver enhanced value for our shareholders
and other stakeholders."
Corporate Description
Forest City Enterprises, Inc. is an NYSE-listed national real
estate company with $10.7 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 SEC on Form 8-K. This Supplemental
Package includes operating and financial information for the three
months and nine months ended October 31,
2012, with reconciliations of non-GAAP financial measures,
such as FFO, Operating FFO, EBDT, comparable NOI and results
prepared using the pro-rata consolidation method, to their most
directly comparable GAAP financial measures.
FFO
The company uses FFO, along with EBDT and net earnings (loss) to
report its operating results. The majority of the company's peers
in the publically traded real estate industry are Real Estate
Investment Trusts ("REITs") and report operations using FFO as
defined by the National Association of Real Estate Investment
Trusts ("NAREIT"). FFO provides supplemental information about the
company's operations. Although FFO is not presented in accordance
with GAAP, the company believes it is necessary to understand its
business and operating results, along with net earnings, the most
comparable GAAP measure. The company believes its presentation of
FFO provides important supplemental information to its
investors.
FFO is defined by NAREIT as net earnings excluding the following
items: i) gain (loss) on disposition of rental properties,
divisions and other investments (net of tax); ii) non-cash charges
for real estate depreciation and amortization; iii) impairment of
depreciable real estate (net of tax); iv) extraordinary items (net
of tax); and v) cumulative or retrospective effect of change in
accounting principle (net of tax). FFO is reconciled to net
earnings (loss), the most comparable financial measure calculated
in accordance with GAAP, in the table titled Reconciliation of FFO
and EBDT to Net Earnings/Loss below and in the company's
Supplemental Package, which the company will also furnish to the
SEC on Form 8-K.
Operating FFO
Operating FFO is defined as FFO, as defined by NAREIT, adjusted
to exclude: i) activity related to our land held for divestiture
(including impairment charges); ii) impairment of Land Group
projects; iii) write-offs of abandoned development projects; iv)
income recognized on state and federal historic and other tax
credits; v) gains or losses from extinguishment of debt; vi) gains
or losses on change in control of interests; vii) the adjustment to
recognize rental revenues and rental expense using the
straight-line method; viii) other non-recurring items such as
income generated from the casino land sale; ix) the Nets pre-tax
FFO; and x) income taxes on FFO.
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 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.
NOI
NOI, a non-GAAP measure, is defined as revenues (excluding
straight-line rent adjustments) less operating expenses (including
depreciation and amortization and amortization of mortgage
procurement costs for non-real estate groups) plus interest income
plus equity in earnings (loss) of unconsolidated entities
(excluding gain on disposition and impairment of unconsolidated
entities) plus interest expense, gain (loss) on extinguishment of
debt, depreciation and amortization of unconsolidated
entities. We believe NOI provides us, as well as our
investors, additional information about our core business
operations and, along with earnings, is necessary to understand our
business and operating results.
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 its
liquidity, ability to finance or refinance projects and repay its
debt, the impact of the current economic environment on its
ownership, development and management of its real estate portfolio,
general real estate investment and development risks, vacancies in
its properties, the strategic decision to reposition or divest
portions of the company's land business, 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, its substantial debt leverage and the
ability to obtain and service debt, the impact of restrictions
imposed by its 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 its
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 its publicly traded securities, inflation
risks, litigation risks, cybersecurity risks and cyber incidents,
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.
Reconciliation of FFO and EBDT to Net Earnings
(Loss)
|
Three
Months Ended
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
Nine
Months Ended
|
|
October
31, 2012
|
|
October
31, 2011
|
|
October
31, 2012
|
|
October
31, 2011
|
|
FFO
|
EBDT
|
|
FFO
|
EBDT
|
|
FFO
|
EBDT
|
|
FFO
|
EBDT
|
|
(in
thousands)
|
Net earnings (loss) attributable to Forest City
Enterprises, Inc.
|
$
(1,078)
|
$
(1,078)
|
|
$
(36,801)
|
$
(36,801)
|
|
$
(22,043)
|
$
(22,043)
|
|
$
18,900
|
$
18,900
|
Depreciation and Amortization—Real Estate
Groups
|
73,526
|
73,526
|
|
71,304
|
71,304
|
|
216,436
|
216,436
|
|
209,062
|
209,062
|
Impairment of depreciable rental
properties
|
30,364
|
30,364
|
|
49,446
|
49,446
|
|
35,304
|
35,304
|
|
53,116
|
53,116
|
Gain on disposition of rental properties and partial
interests in rental properties
|
(19,299)
|
(19,299)
|
|
(5,849)
|
(5,849)
|
|
(43,320)
|
(43,320)
|
|
(67,914)
|
(67,914)
|
Income tax expense (benefit) adjustments — current
and deferred (1)
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposition of rental properties and
partial interests in rental properties
|
7,893
|
7,893
|
|
2,275
|
2,275
|
|
17,174
|
17,174
|
|
26,339
|
26,339
|
Impairment of depreciable rental
properties
|
(11,776)
|
(11,776)
|
|
(19,177)
|
(19,177)
|
|
(13,692)
|
(13,692)
|
|
(20,600)
|
(20,600)
|
Straight-line rent adjustments
|
-
|
(3,107)
|
|
-
|
(3,268)
|
|
-
|
(11,717)
|
|
-
|
(2,995)
|
Net gain on change in control of interests
|
-
|
-
|
|
-
|
-
|
|
-
|
(4,064)
|
|
-
|
-
|
Net (gain) loss on land held for divestiture
activity
|
-
|
(277)
|
|
-
|
-
|
|
-
|
51,575
|
|
-
|
-
|
Impairment of Land Group projects
|
-
|
-
|
|
-
|
2,550
|
|
-
|
-
|
|
-
|
3,950
|
Amortization of mortgage procurement costs—Real
Estate Groups
|
-
|
3,364
|
|
-
|
4,052
|
|
-
|
11,340
|
|
-
|
11,099
|
Preference payment
|
-
|
-
|
|
-
|
585
|
|
-
|
-
|
|
-
|
1,756
|
Allowance for projects under development
revision
|
-
|
-
|
|
-
|
(2,000)
|
|
-
|
-
|
|
-
|
(2,000)
|
Income tax expense (benefit) adjustments — current
and deferred (1)
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax expense (benefit) on
operating earnings
|
-
|
(2,547)
|
|
-
|
15,349
|
|
-
|
17,655
|
|
-
|
46,378
|
Impairment of Land Group projects
|
-
|
-
|
|
-
|
(989)
|
|
-
|
-
|
|
-
|
(1,532)
|
Net gain (loss) on land held for divestiture
activity
|
-
|
115
|
|
-
|
-
|
|
-
|
(20,003)
|
|
-
|
-
|
Net gain on change in control of
interests
|
-
|
-
|
|
-
|
-
|
|
-
|
1,576
|
|
-
|
-
|
FFO/EBDT
|
$
79,630
|
$
77,178
|
|
$
61,198
|
$
77,477
|
|
$
189,859
|
$
236,221
|
|
$
218,903
|
$
275,559
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The following table provides detail of
Income Tax Expense (Benefit) in thousands:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended October 31,
|
|
|
|
Nine
Months Ended October 31,
|
|
|
|
|
2012
|
2011
|
|
|
|
|
2012
|
2011
|
|
|
|
Current taxes
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
|
$
(3,575)
|
$
(13,357)
|
|
|
|
|
$
(8,941)
|
$
(37,501)
|
|
|
|
Gain on disposition of rental properties and partial
interests in rental properties
|
(565)
|
10
|
|
|
|
|
(21,732)
|
39,179
|
|
|
|
Net gain (loss) on land held for divestiture
activity
|
(17,967)
|
-
|
|
|
|
|
(16,299)
|
-
|
|
|
|
Subtotal
|
(22,107)
|
(13,347)
|
|
|
|
|
(46,972)
|
1,678
|
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
|
7
|
(543)
|
|
|
|
|
61
|
(285)
|
|
|
|
Gain on disposition of rental properties and partial
interests in rental properties
|
15,961
|
-
|
|
|
|
|
21,592
|
2,792
|
|
|
|
Subtotal
|
15,968
|
(543)
|
|
|
|
|
21,653
|
2,507
|
|
|
|
Total Current taxes
|
(6,139)
|
(13,890)
|
|
|
|
|
(25,319)
|
4,185
|
|
|
|
Deferred taxes
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
|
(2,545)
|
15,210
|
|
|
|
|
17,478
|
45,721
|
|
|
|
Gain on disposition of rental properties and partial
interests in rental properties
|
(252)
|
2,265
|
|
|
|
|
26,966
|
(29,729)
|
|
|
|
Impairment of depreciable rental
properties
|
(11,712)
|
(15,199)
|
|
|
|
|
(12,042)
|
(15,290)
|
|
|
|
Impairment of Land Group projects
|
-
|
(989)
|
|
|
|
|
-
|
(1,532)
|
|
|
|
Net gain (loss) on land held for divestiture
activity
|
18,082
|
-
|
|
|
|
|
(3,704)
|
-
|
|
|
|
Net gain on change in control of interests
|
-
|
-
|
|
|
|
|
1,576
|
-
|
|
|
|
Subtotal
|
3,573
|
1,287
|
|
|
|
|
30,274
|
(830)
|
|
|
|
Discontinued operations
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings
|
(2)
|
139
|
|
|
|
|
177
|
657
|
|
|
|
Gain on disposition of rental properties and partial
interests in rental properties
|
(7,251)
|
-
|
|
|
|
|
(9,652)
|
14,097
|
|
|
|
Impairment of real estate
|
(64)
|
(3,978)
|
|
|
|
|
(1,650)
|
(5,310)
|
|
|
|
Subtotal
|
(7,317)
|
(3,839)
|
|
|
|
|
(11,125)
|
9,444
|
|
|
|
Total Deferred taxes
|
(3,744)
|
(2,552)
|
|
|
|
|
19,149
|
8,614
|
|
|
|
Grand
Total
|
$
(9,883)
|
$
(16,442)
|
|
|
|
|
$
(6,170)
|
$
12,799
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Operating FFO to
FFO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro-Rata Consolidation
|
|
Three
Months Ended October 31,
|
|
|
Nine
Months Ended October 31,
|
|
|
|
2012
|
2011
|
%
Change
|
|
2012
|
2011
|
%
Change
|
|
|
(in
thousands)
|
|
|
(in
thousands)
|
|
Portfolio
Pre-tax FFO:
|
|
|
|
|
|
|
|
|
Commercial Group
|
|
$
79,614
|
$
74,531
|
|
|
$
240,158
|
$
260,563
|
|
Residential Group
|
|
33,042
|
25,791
|
|
|
96,547
|
70,947
|
|
Land Group
|
|
615
|
523
|
|
|
(46,927)
|
(131)
|
|
|
|
|
|
|
|
|
|
|
Adjustments to Portfolio Pre-Tax FFO:
|
|
|
|
|
|
|
|
|
Net loss
(gain) on land held for divestiture activity
|
|
(277)
|
-
|
|
|
51,575
|
-
|
|
Impairment
of Land Group project
|
|
-
|
2,550
|
|
|
-
|
3,950
|
|
Abandoned
development project write-offs
|
|
401
|
2,686
|
|
|
13,754
|
7,931
|
|
Tax credit
income
|
|
(4,851)
|
(5,144)
|
|
|
(16,732)
|
(24,784)
|
|
(Gain)
loss on extinguishment of portfolio debt
|
|
(9,019)
|
(15,465)
|
|
|
(7,175)
|
(18,147)
|
|
Net gain
on change in control of interests
|
|
-
|
-
|
|
|
(4,064)
|
-
|
|
Straight-line rent adjustments
|
|
(3,107)
|
(3,268)
|
|
|
(11,717)
|
(2,995)
|
|
Casino
land sale
|
|
-
|
-
|
|
|
(36,484)
|
(42,622)
|
|
Adjustments to Portfolio Pre-Tax FFO
subtotal
|
|
(16,853)
|
(18,641)
|
|
|
(10,843)
|
(76,667)
|
|
Portfolio Pre-tax Operating FFO
|
|
96,418
|
82,204
|
17.3
%
|
|
278,935
|
254,712
|
9.5
%
|
Corporate Group Pre-tax FFO
|
|
(32,164)
|
(27,904)
|
|
|
(86,864)
|
(90,447)
|
|
Loss on extinguishment of debt - Corporate
Group
|
|
789
|
-
|
|
|
789
|
10,800
|
|
Operating FFO
|
|
65,043
|
54,300
|
19.8
%
|
|
192,860
|
175,065
|
10.2
%
|
Nets Pre-tax FFO
|
|
(7,477)
|
(11,283)
|
|
|
(22,707)
|
(14,969)
|
|
Add back adjustments to Portfolio Pre-Tax FFO
above
|
|
16,853
|
18,641
|
|
|
10,843
|
76,667
|
|
Add back loss on extinguishment of debt - Corporate
Group
|
|
(789)
|
-
|
|
|
(789)
|
(10,800)
|
|
Income tax benefit (expense) on FFO
|
|
6,000
|
(460)
|
|
|
9,652
|
(7,060)
|
|
FFO
|
|
$
79,630
|
$
61,198
|
30.1
%
|
|
$
189,859
|
$
218,903
|
(13.3)%
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Operating Income (non-GAAP)
to Net Earnings (Loss) (GAAP) (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended October 31, 2012
|
|
Three
Months Ended October 31, 2011
|
|
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)
|
Net
operating income
|
$
162,922
|
$
6,507
|
$
-
|
$
349
|
$
156,764
|
|
$
143,387
|
$
4,218
|
$
-
|
$
2,643
|
$
141,812
|
Interest
expense
|
(69,300)
|
(4,007)
|
(25,932)
|
(159)
|
(91,384)
|
|
(65,334)
|
(1,710)
|
(26,211)
|
(1,865)
|
(91,700)
|
Interest
expense of unconsolidated entities
|
(25,932)
|
-
|
25,932
|
-
|
-
|
|
(26,211)
|
-
|
26,211
|
-
|
-
|
Gain
(loss) on extinguishment of debt
|
8,007
|
(415)
|
-
|
(192)
|
8,230
|
|
15,101
|
1,511
|
1,875
|
-
|
15,465
|
Gain on
extinguishment of debt of unconsolidated entities
|
-
|
-
|
-
|
-
|
-
|
|
1,875
|
-
|
(1,875)
|
-
|
-
|
Equity in
(earnings) loss of unconsolidated entities, including
impairment
|
(3,906)
|
(61)
|
11,187
|
-
|
7,342
|
|
40,016
|
(38)
|
(28,967)
|
-
|
11,087
|
Net gain
(loss) on land held for divestiture activity
|
807
|
247
|
(283)
|
-
|
277
|
|
-
|
-
|
-
|
-
|
-
|
Net loss
on land held for divestiture activity of unconsolidated
entities
|
(283)
|
-
|
283
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
Net gain
on disposition of rental properties and partial interests in rental
properties
|
-
|
-
|
-
|
19,299
|
19,299
|
|
5,849
|
-
|
-
|
-
|
5,849
|
Impairment
of consolidated real estate
|
(30,200)
|
-
|
-
|
(164)
|
(30,364)
|
|
(450)
|
-
|
(41,289)
|
(10,257)
|
(51,996)
|
Impairment
of unconsolidated real estate
|
-
|
-
|
-
|
-
|
-
|
|
(41,289)
|
-
|
41,289
|
-
|
-
|
Depreciation and amortization—Real Estate Groups
(a)
|
(57,044)
|
(2,699)
|
(19,145)
|
(36)
|
(73,526)
|
|
(52,568)
|
(1,174)
|
(18,024)
|
(1,886)
|
(71,304)
|
Amortization of mortgage procurement costs—Real
Estate Groups (b)
|
(2,665)
|
(74)
|
(773)
|
-
|
(3,364)
|
|
(3,371)
|
(166)
|
(805)
|
(42)
|
(4,052)
|
Depreciation and amortization of unconsolidated
entities
|
(19,918)
|
-
|
19,918
|
-
|
-
|
|
(18,829)
|
-
|
18,829
|
-
|
-
|
Straight-line rent adjustment
|
3,055
|
-
|
-
|
52
|
3,107
|
|
3,167
|
-
|
-
|
101
|
3,268
|
Preference
payment
|
-
|
-
|
-
|
-
|
-
|
|
(585)
|
-
|
-
|
-
|
(585)
|
Earnings (loss) before income taxes
|
(34,457)
|
(502)
|
11,187
|
19,149
|
(3,619)
|
|
758
|
2,641
|
(28,967)
|
(11,306)
|
(42,156)
|
Income tax
benefit (expense)
|
18,534
|
-
|
-
|
(8,651)
|
9,883
|
|
12,060
|
-
|
-
|
4,382
|
16,442
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
earnings (loss) of unconsolidated entities, including
impairment
|
4,189
|
61
|
(11,470)
|
-
|
(7,342)
|
|
(40,016)
|
38
|
28,967
|
-
|
(11,087)
|
Net loss
on land held for divestiture activity of unconsolidated
entities
|
(283)
|
-
|
283
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
|
3,906
|
61
|
(11,187)
|
-
|
(7,342)
|
|
(40,016)
|
38
|
28,967
|
-
|
(11,087)
|
Earnings (loss) from continuing
operations
|
(12,017)
|
(441)
|
-
|
10,498
|
(1,078)
|
|
(27,198)
|
2,679
|
-
|
(6,924)
|
(36,801)
|
Discontinued operations, net of tax
|
10,370
|
(128)
|
-
|
(10,498)
|
-
|
|
(6,860)
|
64
|
-
|
6,924
|
-
|
Net
earnings (loss)
|
(1,647)
|
(569)
|
-
|
-
|
(1,078)
|
|
(34,058)
|
2,743
|
-
|
-
|
(36,801)
|
Noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
(Earnings)
loss from continuing operations attributable to noncontrolling
interests
|
441
|
441
|
-
|
-
|
-
|
|
(2,679)
|
(2,679)
|
-
|
-
|
-
|
(Earnings)
loss from discontinued operations attributable to noncontrolling
interests
|
128
|
128
|
-
|
-
|
-
|
|
(64)
|
(64)
|
-
|
-
|
-
|
|
569
|
569
|
-
|
-
|
-
|
|
(2,743)
|
(2,743)
|
-
|
-
|
-
|
Net
loss attributable to Forest City Enterprises, Inc.
|
$
(1,078)
|
$
-
|
$
-
|
$
-
|
$
(1,078)
|
|
$
(36,801)
|
$
-
|
$
-
|
$
-
|
$
(36,801)
|
Preferred
dividends and inducements of preferred stock conversion
|
(17,731)
|
-
|
-
|
-
|
(17,731)
|
|
(3,850)
|
-
|
-
|
-
|
(3,850)
|
Net
loss attributable to Forest City Enterprises, Inc. common
shareholders
|
$
(18,809)
|
$
-
|
$
-
|
$
-
|
$
(18,809)
|
|
$
(40,651)
|
$
-
|
$
-
|
$
-
|
$
(40,651)
|
(a)
Depreciation and amortization - Real Estate Groups
|
$
57,044
|
$
2,699
|
$
19,145
|
$
36
|
$
73,526
|
|
$
52,568
|
$
1,174
|
$
18,024
|
$
1,886
|
$
71,304
|
Depreciation and
amortization—Non-Real Estate
|
1,037
|
-
|
-
|
-
|
1,037
|
|
1,012
|
-
|
-
|
-
|
1,012
|
Total depreciation and
amortization
|
$
58,081
|
$
2,699
|
$
19,145
|
$
36
|
$
74,563
|
|
$
53,580
|
$
1,174
|
$
18,024
|
$
1,886
|
$
72,316
|
(b)
Amortization of mortgage procurement costs - Real Estate
Groups
|
$
2,665
|
$
74
|
$
773
|
$
-
|
$
3,364
|
|
$
3,371
|
$
166
|
$
805
|
$
42
|
$
4,052
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Operating Income (non-GAAP)
to Net Earnings (Loss) (GAAP) (in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended October 31, 2012
|
|
Nine
Months Ended October 31, 2011
|
|
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)
|
Net
operating income
|
$
487,481
|
$
13,380
|
$
-
|
$
4,729
|
$
478,830
|
|
$
496,804
|
$
14,224
|
$
-
|
$
14,107
|
$
496,687
|
Interest
expense
|
(188,640)
|
(9,408)
|
(76,230)
|
(2,413)
|
(257,875)
|
|
(192,545)
|
(9,065)
|
(74,501)
|
(6,280)
|
(264,261)
|
Interest
expense of unconsolidated entities
|
(76,230)
|
-
|
76,230
|
-
|
-
|
|
(74,501)
|
-
|
74,501
|
-
|
-
|
Gain
(loss) on extinguishment of debt
|
7,288
|
(603)
|
(1,313)
|
(192)
|
6,386
|
|
9,334
|
1,507
|
(480)
|
-
|
7,347
|
Loss on
extinguishment of debt of unconsolidated entities
|
(1,313)
|
-
|
1,313
|
-
|
-
|
|
(480)
|
-
|
480
|
-
|
-
|
Equity in
(earnings) loss of unconsolidated entities, including
impairment
|
17,933
|
(260)
|
1,413
|
-
|
19,606
|
|
17,637
|
(228)
|
(3,076)
|
-
|
14,789
|
Net gain
(loss) on land held for divestiture activity
|
(5,651)
|
3,754
|
(42,170)
|
-
|
(51,575)
|
|
-
|
-
|
-
|
-
|
-
|
Net loss
on land held for divestiture activity of unconsolidated
entities
|
(42,170)
|
-
|
42,170
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
Net gain
on disposition of rental properties and partial interests in rental
properties
|
-
|
-
|
16,107
|
27,213
|
43,320
|
|
15,410
|
-
|
12,567
|
39,937
|
67,914
|
Gain on
disposition of unconsolidated entities
|
16,107
|
-
|
(16,107)
|
-
|
-
|
|
12,567
|
-
|
(12,567)
|
-
|
-
|
Impairment
of consolidated real estate
|
(30,660)
|
-
|
(390)
|
(4,254)
|
(35,304)
|
|
(2,085)
|
-
|
(41,289)
|
(13,692)
|
(57,066)
|
Impairment
of unconsolidated real estate
|
(390)
|
-
|
390
|
-
|
-
|
|
(41,289)
|
-
|
41,289
|
-
|
-
|
Depreciation and amortization—Real Estate Groups
(a)
|
(161,414)
|
(4,695)
|
(57,992)
|
(1,725)
|
(216,436)
|
|
(158,488)
|
(4,370)
|
(47,724)
|
(7,220)
|
(209,062)
|
Amortization of mortgage procurement costs—Real
Estate Groups (b)
|
(9,054)
|
(303)
|
(2,423)
|
(166)
|
(11,340)
|
|
(8,791)
|
(425)
|
(2,157)
|
(576)
|
(11,099)
|
Depreciation and amortization of unconsolidated
entities
|
(60,415)
|
-
|
60,415
|
-
|
-
|
|
(49,881)
|
-
|
49,881
|
-
|
-
|
Straight-line rent adjustment
|
11,338
|
-
|
-
|
379
|
11,717
|
|
2,070
|
-
|
-
|
925
|
2,995
|
Preference
payment
|
-
|
-
|
-
|
-
|
-
|
|
(1,756)
|
-
|
-
|
-
|
(1,756)
|
Earnings (loss) before income taxes
|
(35,790)
|
1,865
|
1,413
|
23,571
|
(12,671)
|
|
24,006
|
1,643
|
(3,076)
|
27,201
|
46,488
|
Income tax
benefit (expense)
|
16,698
|
-
|
-
|
(10,528)
|
6,170
|
|
(848)
|
-
|
-
|
(11,951)
|
(12,799)
|
Net gain
on change in control of interests
|
6,766
|
2,702
|
-
|
-
|
4,064
|
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in
earnings (loss) of unconsolidated entities, including
impairment
|
24,237
|
260
|
(43,583)
|
-
|
(19,606)
|
|
(17,637)
|
228
|
3,076
|
-
|
(14,789)
|
Net loss
on land held for divestiture activity of unconsolidated
entities
|
(42,170)
|
-
|
42,170
|
-
|
-
|
|
-
|
-
|
-
|
-
|
-
|
|
(17,933)
|
260
|
(1,413)
|
-
|
(19,606)
|
|
(17,637)
|
228
|
3,076
|
-
|
(14,789)
|
Earnings (loss) from continuing
operations
|
(30,259)
|
4,827
|
-
|
13,043
|
(22,043)
|
|
5,521
|
1,871
|
-
|
15,250
|
18,900
|
Discontinued operations, net of tax
|
14,501
|
1,458
|
-
|
(13,043)
|
-
|
|
99,475
|
84,225
|
-
|
(15,250)
|
-
|
Net
earnings (loss)
|
(15,758)
|
6,285
|
-
|
-
|
(22,043)
|
|
104,996
|
86,096
|
-
|
-
|
18,900
|
Noncontrolling interests
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
from continuing operations attributable to noncontrolling
interests
|
(4,827)
|
(4,827)
|
-
|
-
|
-
|
|
(1,871)
|
(1,871)
|
-
|
-
|
-
|
Earnings
from discontinued operations attributable to noncontrolling
interests
|
(1,458)
|
(1,458)
|
-
|
-
|
-
|
|
(84,225)
|
(84,225)
|
-
|
-
|
-
|
|
(6,285)
|
(6,285)
|
-
|
-
|
-
|
|
(86,096)
|
(86,096)
|
-
|
-
|
-
|
Net
earnings (loss) attributable to Forest City Enterprises,
Inc.
|
$
(22,043)
|
$
-
|
$
-
|
$
-
|
$
(22,043)
|
|
$
18,900
|
$
-
|
$
-
|
$
-
|
$
18,900
|
Preferred
dividends and inducements of preferred stock conversion
|
(25,431)
|
-
|
-
|
-
|
(25,431)
|
|
(11,550)
|
-
|
-
|
-
|
(11,550)
|
Net
earnings (loss) attributable to Forest City Enterprises, Inc.
common shareholders
|
$
(47,474)
|
$
-
|
$
-
|
$
-
|
$
(47,474)
|
|
$
7,350
|
$
-
|
$
-
|
$
-
|
$
7,350
|
(a)
Depreciation and amortization—Real Estate Groups
|
$
161,414
|
$
4,695
|
$
57,992
|
$
1,725
|
$
216,436
|
|
$
158,488
|
$
4,370
|
$
47,724
|
$
7,220
|
$
209,062
|
Depreciation and
amortization—Non-Real Estate
|
2,233
|
-
|
-
|
-
|
2,233
|
|
2,400
|
-
|
-
|
-
|
2,400
|
Total depreciation and
amortization
|
$
163,647
|
$
4,695
|
$
57,992
|
$
1,725
|
$
218,669
|
|
$
160,888
|
$
4,370
|
$
47,724
|
$
7,220
|
$
211,462
|
(b)
Amortization of mortgage procurement costs—Real Estate
Groups
|
$
9,054
|
$
303
|
$
2,423
|
$
166
|
$
11,340
|
|
$
8,791
|
$
425
|
$
2,157
|
$
576
|
$
11,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Operating Income (in thousands)
|
|
Three
Months Ended October 31, 2012
|
|
Three
Months Ended October 31, 2011
|
%
Change
|
|
Full
Consolidation
(GAAP)
|
Less
Noncontrolling
Interest
|
Plus
Discontinued
Operations
|
Pro-Rata
Consolidation
(Non-GAAP)
|
|
Full
Consolidation
(GAAP)
|
Less
Noncontrolling
Interest
|
Plus
Discontinued
Operations
|
Pro-Rata
Consolidation
(Non-GAAP)
|
Full
Consolidation
(GAAP)
|
Pro-Rata
Consolidation
(Non-GAAP)
|
Commercial Group
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
$
58,212
|
$
1,569
|
$
-
|
$
56,643
|
|
$
58,067
|
$
1,700
|
$
-
|
$
56,367
|
0.2
%
|
0.5
%
|
Total
|
62,012
|
2,106
|
590
|
60,496
|
|
58,046
|
2,031
|
1,823
|
57,838
|
|
|
Office Buildings
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
61,843
|
1,822
|
-
|
60,021
|
|
61,388
|
1,718
|
-
|
59,670
|
0.7
%
|
0.6
%
|
Total
|
62,383
|
1,798
|
-
|
60,585
|
|
61,932
|
1,230
|
(49)
|
60,653
|
|
|
Arena
|
1,278
|
802
|
-
|
476
|
|
(2,210)
|
(974)
|
-
|
(1,236)
|
|
|
Hotels
|
4,200
|
-
|
-
|
4,200
|
|
3,217
|
-
|
(88)
|
3,129
|
|
|
Land Sales
|
3,703
|
-
|
-
|
3,703
|
|
128
|
-
|
-
|
128
|
|
|
Other (1)
|
(259)
|
(7)
|
(183)
|
(435)
|
|
(2,151)
|
665
|
522
|
(2,294)
|
|
|
Total
Commercial Group
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
120,055
|
3,391
|
-
|
116,664
|
|
119,455
|
3,418
|
-
|
116,037
|
0.5
%
|
0.5
%
|
Total
|
133,317
|
4,699
|
407
|
129,025
|
|
118,962
|
2,952
|
2,208
|
118,218
|
|
|
Residential Group
|
|
|
|
|
|
|
|
|
|
|
|
Apartments
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
36,463
|
635
|
-
|
35,828
|
|
34,475
|
672
|
-
|
33,803
|
5.8
%
|
6.0
%
|
Total
|
39,051
|
852
|
(58)
|
38,141
|
|
35,428
|
600
|
435
|
35,263
|
|
|
Subsidized Senior Housing
|
6,471
|
55
|
-
|
6,416
|
|
4,437
|
101
|
-
|
4,336
|
|
|
Military Housing
|
6,770
|
285
|
-
|
6,485
|
|
8,626
|
97
|
-
|
8,529
|
|
|
Land Sales
|
-
|
-
|
-
|
-
|
|
46
|
-
|
-
|
46
|
|
|
Other (1)
|
(1,569)
|
131
|
-
|
(1,700)
|
|
(2,745)
|
148
|
-
|
(2,893)
|
|
|
Total
Residential Group
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
36,463
|
635
|
-
|
35,828
|
|
34,475
|
672
|
-
|
33,803
|
5.8
%
|
6.0
%
|
Total
|
50,723
|
1,323
|
(58)
|
49,342
|
|
45,792
|
946
|
435
|
45,281
|
|
|
Total
Rental Properties
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
156,518
|
4,026
|
-
|
152,492
|
|
153,930
|
4,090
|
-
|
149,840
|
1.7
%
|
1.8
%
|
Total
|
184,040
|
6,022
|
349
|
178,367
|
|
164,754
|
3,898
|
2,643
|
163,499
|
|
|
Land
Development Group
|
886
|
485
|
-
|
401
|
|
2,333
|
320
|
-
|
2,013
|
|
|
The
Nets
|
(7,477)
|
-
|
-
|
(7,477)
|
|
(11,283)
|
-
|
-
|
(11,283)
|
|
|
Corporate Activities
|
(14,527)
|
-
|
-
|
(14,527)
|
|
(12,417)
|
-
|
-
|
(12,417)
|
|
|
Grand
Total
|
$
162,922
|
$
6,507
|
$
349
|
$
156,764
|
|
$
143,387
|
$
4,218
|
$
2,643
|
$
141,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes write-offs of abandoned development projects,
non-capitalizable development costs and unallocated management and
service company overhead, net of tax credit income.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Operating Income (in thousands)
|
|
Nine
Months Ended October 31, 2012
|
|
Nine
Months Ended October 31, 2011
|
%
Change
|
|
Full
Consolidation
(GAAP)
|
Less
Noncontrolling
Interest
|
Plus
Discontinued
Operations
|
Pro-Rata
Consolidation
(Non-GAAP)
|
|
Full
Consolidation
(GAAP)
|
Less
Noncontrolling
Interest
|
Plus
Discontinued
Operations
|
Pro-Rata
Consolidation
(Non-GAAP)
|
Full
Consolidation
(GAAP)
|
Pro-Rata
Consolidation
(Non-GAAP)
|
Commercial Group
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
$
172,557
|
$
5,011
|
$
-
|
$
167,546
|
|
$
169,492
|
$
5,064
|
$
-
|
$
164,428
|
1.8
%
|
1.9
%
|
Total
|
180,932
|
5,645
|
3,021
|
178,308
|
|
181,487
|
7,320
|
5,699
|
179,866
|
|
|
Office Buildings
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
190,958
|
6,132
|
-
|
184,826
|
|
184,404
|
4,982
|
-
|
179,422
|
3.6
%
|
3.0
%
|
Total
|
193,054
|
6,229
|
-
|
186,825
|
|
190,757
|
4,900
|
2,823
|
188,680
|
|
|
Arena
|
(9,231)
|
(3,507)
|
-
|
(5,724)
|
|
(6,561)
|
(2,852)
|
-
|
(3,709)
|
|
|
Hotels
|
9,009
|
-
|
-
|
9,009
|
|
7,844
|
-
|
2,054
|
9,898
|
|
|
Land Sales (1)
|
40,201
|
-
|
-
|
40,201
|
|
42,801
|
(782)
|
684
|
44,267
|
|
|
Other (2)
|
(17,457)
|
(184)
|
822
|
(16,451)
|
|
(215)
|
1,959
|
1,545
|
(629)
|
|
|
Total
Commercial Group
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
363,515
|
11,143
|
-
|
352,372
|
|
353,896
|
10,046
|
-
|
343,850
|
2.7
%
|
2.5
%
|
Total
|
396,508
|
8,183
|
3,843
|
392,168
|
|
416,113
|
10,545
|
12,805
|
418,373
|
|
|
Residential Group
|
|
|
|
|
|
|
|
|
|
|
|
Apartments
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
107,137
|
1,992
|
-
|
105,145
|
|
99,129
|
1,832
|
-
|
97,297
|
8.1
%
|
8.1
%
|
Total
|
113,348
|
2,450
|
886
|
111,784
|
|
98,250
|
1,798
|
1,302
|
97,754
|
|
|
Subsidized Senior Housing
|
15,582
|
259
|
-
|
15,323
|
|
12,418
|
351
|
-
|
12,067
|
|
|
Military Housing
|
21,433
|
529
|
-
|
20,904
|
|
19,793
|
335
|
-
|
19,458
|
|
|
Land Sales
|
-
|
-
|
-
|
-
|
|
204
|
16
|
-
|
188
|
|
|
Other (2)
|
(5,648)
|
416
|
-
|
(6,064)
|
|
(2,780)
|
425
|
-
|
(3,205)
|
|
|
Total
Residential Group
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
107,137
|
1,992
|
-
|
105,145
|
|
99,129
|
1,832
|
-
|
97,297
|
8.1
%
|
8.1
%
|
Total
|
144,715
|
3,654
|
886
|
141,947
|
|
127,885
|
2,925
|
1,302
|
126,262
|
|
|
Total
Rental Properties
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
|
470,652
|
13,135
|
-
|
457,517
|
|
453,025
|
11,878
|
-
|
441,147
|
3.9
%
|
3.7
%
|
Total
|
541,223
|
11,837
|
4,729
|
534,115
|
|
543,998
|
13,470
|
14,107
|
544,635
|
|
|
Land
Development Group
|
10,355
|
1,543
|
-
|
8,812
|
|
5,227
|
754
|
-
|
4,473
|
|
|
The
Nets
|
(22,707)
|
-
|
-
|
(22,707)
|
|
(14,969)
|
-
|
-
|
(14,969)
|
|
|
Corporate Activities
|
(41,390)
|
-
|
-
|
(41,390)
|
|
(37,452)
|
-
|
-
|
(37,452)
|
|
|
Grand
Total
|
$
487,481
|
$
13,380
|
$
4,729
|
$
478,830
|
|
$
496,804
|
$
14,224
|
$
14,107
|
$
496,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
Includes $36,484 and $42,622 of NOI generated from the casino land
sale at full and pro-rata consolidation for the nine months ended
October 31, 2012 and 2011, respectively.
|
(2)
Includes write-offs of abandoned development projects,
non-capitalizable development costs and unallocated management and
service company overhead, net of tax credit
income.
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Forest City Enterprises, Inc.