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8-K - FORM 8-K - FOREST CITY ENTERPRISES INC | l38214e8vk.htm |
Exhibit 99.1
Forest City Enterprises, Inc.
Supplemental Package
Three and Nine Months Ended October 31, 2009 and 2008
Forest City Enterprises, Inc. and Subsidiaries
Three and Nine Months Ended October 31, 2009 and 2008
Supplemental Package
Three and Nine Months Ended October 31, 2009 and 2008
Supplemental Package
NYSE: FCEA, FCEB
Index
Corporate Overview |
2 | |||
Supplemental Operating Information |
||||
Occupancy Data |
4 | |||
Comparable Net Operating Income (NOI) |
5 | |||
Comparable NOI Detail |
6-7 | |||
Reconciliation of NOI to Net Loss |
8-9 | |||
Lease Expirations Schedules |
10-11 | |||
Schedules of Significant Tenants |
12-13 | |||
Development Pipeline |
14-17 | |||
Supplemental Financial Information |
||||
Projects Under Development Debt and Mortgage Financings |
18 | |||
Scheduled Maturities Table |
19-20 | |||
Upcoming Maturities Summary |
21-24 | |||
Consolidated Balance Sheet Information |
25-28 | |||
Consolidated Earnings Information |
29-32 | |||
Investments in and Advances to Affiliates |
33-35 | |||
Real Estate Activity |
36-39 | |||
Results of Operations Summary |
40-42 | |||
Reconciliation of Net Loss to EBDT |
43-44 | |||
Summary of EBDT |
45-56 |
This Supplemental Package, together with other statements and information publicly disseminated by
us, contains forward-looking statements within the meaning of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such
statements reflect managements current views with respect to financial results related to future
events and are based on assumptions and expectations that may not be realized and are inherently
subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of
which might not even be anticipated. Future events and actual results, financial or otherwise, may
differ from the results discussed in the forward-looking statements. Risk factors discussed in Item
1A of our Form 10-K for the year ended January 31, 2009, as updated in Part II, Item 1A of our Form
10-Q for the three months ended April 30, 2009 and our Form 10-Q for the nine months ended October
31, 2009, and other factors that might cause differences, some of which could be material, include,
but are not limited to, the impact of current 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 commercial real estate portfolio, general real
estate investment and development risks, liquidity risks we could face if we do not close the
transaction with Onexim Group to create a strategic partnership for our Brooklyn Atlantic Yards
project, 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, environmental liabilities, conflicts of interest,
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, litigation risks, as well as other risks listed from time
to time in our reports filed with the Securities and Exchange Commission. We have no obligation to
revise or update any forward-looking statements, other than imposed by law, as a result of future
events or new information. Readers are cautioned not to place undue reliance on such
forward-looking statements.
1
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Corporate Overview
We principally engage in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. We operate through three strategic business units and five reportable segments. The Commercial Group, our largest business unit, owns, develops, acquires and operates regional malls, specialty/urban retail centers, office and life science buildings, hotels and mixed-use projects. The Residential Group owns, develops, acquires and operates residential rental properties, including upscale and middle-market apartments and adaptive re-use developments. Additionally, the Residential Group develops for-sale condominium projects and also owns interests in entities that develop and manage military family housing. New York City operations are part of the Commercial Group or Residential Group depending on the nature of the operations. The Land Development Group acquires and sells both land and developed lots to residential, commercial and industrial customers. It also owns and develops land into master-planned communities and mixed-use projects. Real Estate Groups are the combined Commercial, Residential and Land Development Groups. Corporate Activities and the Nets, a member of the National Basketball Association (NBA) in which we account for our investment on the equity method of accounting, are reportable segments of the Company.
We principally engage in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. We operate through three strategic business units and five reportable segments. The Commercial Group, our largest business unit, owns, develops, acquires and operates regional malls, specialty/urban retail centers, office and life science buildings, hotels and mixed-use projects. The Residential Group owns, develops, acquires and operates residential rental properties, including upscale and middle-market apartments and adaptive re-use developments. Additionally, the Residential Group develops for-sale condominium projects and also owns interests in entities that develop and manage military family housing. New York City operations are part of the Commercial Group or Residential Group depending on the nature of the operations. The Land Development Group acquires and sells both land and developed lots to residential, commercial and industrial customers. It also owns and develops land into master-planned communities and mixed-use projects. Real Estate Groups are the combined Commercial, Residential and Land Development Groups. Corporate Activities and the Nets, a member of the National Basketball Association (NBA) in which we account for our investment on the equity method of accounting, are reportable segments of the Company.
We have approximately $11.9 billion of assets in 27 states and the District of Columbia at
October 31, 2009. Our core markets include the New York City/Philadelphia metropolitan area,
Denver, Boston, the Greater Washington, D.C./Baltimore metropolitan area, Chicago and the state of
California. As a result of an ongoing effort to increase property concentration in the core
markets, these markets now account for approximately 77 percent of the cost of our real estate
portfolio at October 31, 2009. We have offices in Albuquerque, Boston, Chicago, Denver, London
(England), Los Angeles, New York City, San Francisco, Washington, D.C. and our corporate
headquarters in Cleveland, Ohio.
SUPPLEMENTAL FINANCIAL AND OPERATING INFORMATION
We recommend that this supplemental package be read in conjunction with our Form 10-Q for the three and nine months ended October 31, 2009. Effective February 1, 2009, we were required to adopt new accounting guidance on accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) and noncontrolling interests in our consolidated financial statements. These new accounting standards required us to adjust the prior year financial statements to show retrospective application upon adoption including classifying noncontrolling interest as a component of total equity. See pages 8 and 9 of our Form 10-Q for further discussion.
We recommend that this supplemental package be read in conjunction with our Form 10-Q for the three and nine months ended October 31, 2009. Effective February 1, 2009, we were required to adopt new accounting guidance on accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) and noncontrolling interests in our consolidated financial statements. These new accounting standards required us to adjust the prior year financial statements to show retrospective application upon adoption including classifying noncontrolling interest as a component of total equity. See pages 8 and 9 of our Form 10-Q for further discussion.
This supplemental package contains certain measures prepared in accordance with generally accepted
accounting principles (GAAP) under the full consolidation accounting method and certain measures
prepared under the pro-rata consolidation method, a non-GAAP measure. Along with net earnings, we
use an additional measure, Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT),
to report operating results. EBDT is a non-GAAP measure and may not be directly comparable to
similarly-titled measures reported by other companies. The non-GAAP financial measures presented
under the pro-rata consolidation method, comparable net operating income (NOI) and EBDT, provide
supplemental information about our operations. Although these measures are not presented in
accordance with GAAP, we believe they are necessary to understand our business and operating
results, along with net earnings and other GAAP measures. Our investors can use these non-GAAP
measures as supplementary information to evaluate our business. Our non-GAAP measures are not
intended to be performance measures that should be regarded as alternatives to, or more meaningful
than, our GAAP measures.
Consolidation Methods
We present certain financial amounts under the pro-rata consolidation method because we believe this information is useful to investors as this method reflects the manner in which we operate our business. In line with industry practice, we have made a large number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. Under the pro-rata consolidation method, we generally present our investments proportionate to our economic share of ownership. Under GAAP, the full consolidation method is used to report partnership assets and liabilities consolidated at 100% if deemed to be under our control or if we are deemed to be the primary beneficiary of the variable interest entity (VIE), even if our ownership is not 100%. We provide reconciliations from the full consolidation method to the pro-rata consolidation method throughout our supplemental package. Please refer to our property listing for the detail of our consolidated and non-consolidated properties in our supplemental package for the year ended January 31, 2009 on pages 60-72.
We present certain financial amounts under the pro-rata consolidation method because we believe this information is useful to investors as this method reflects the manner in which we operate our business. In line with industry practice, we have made a large number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. Under the pro-rata consolidation method, we generally present our investments proportionate to our economic share of ownership. Under GAAP, the full consolidation method is used to report partnership assets and liabilities consolidated at 100% if deemed to be under our control or if we are deemed to be the primary beneficiary of the variable interest entity (VIE), even if our ownership is not 100%. We provide reconciliations from the full consolidation method to the pro-rata consolidation method throughout our supplemental package. Please refer to our property listing for the detail of our consolidated and non-consolidated properties in our supplemental package for the year ended January 31, 2009 on pages 60-72.
EBDT
We believe that EBDT, along with net earnings, provides additional information about our core operations. While property dispositions, acquisitions or other factors can affect net earnings in the short-term, we believe EBDT presents a more consistent view of the overall financial performance of our business from period-to-period. EBDT is used by the chief operating decision maker and management to assess performance and resource allocations by strategic business unit and on a consolidated basis. EBDT is similar to Funds From Operations (FFO), a measure of performance used by publicly traded Real Estate Investment Trusts (REITs), but may not be directly comparable to similarly titled measures reported by other companies. For additional discussion of EBDT as well as a reconciliation of net earnings (loss) to EBDT see pages 42-44.
We believe that EBDT, along with net earnings, provides additional information about our core operations. While property dispositions, acquisitions or other factors can affect net earnings in the short-term, we believe EBDT presents a more consistent view of the overall financial performance of our business from period-to-period. EBDT is used by the chief operating decision maker and management to assess performance and resource allocations by strategic business unit and on a consolidated basis. EBDT is similar to Funds From Operations (FFO), a measure of performance used by publicly traded Real Estate Investment Trusts (REITs), but may not be directly comparable to similarly titled measures reported by other companies. For additional discussion of EBDT as well as a reconciliation of net earnings (loss) to EBDT see pages 42-44.
2
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Supplemental Operating Information
The operating information contained in this document includes: occupancy data, comparable NOI, reconciliation of NOI to net earnings (loss), retail and office lease expirations, significant retail and office tenant listings, and our development pipeline. We believe this information will give interested parties a better understanding and more information about our operating performance. The term comparable, which is used throughout this document, is generally defined as including properties that were open and operated in both the three and nine months ended October 31, 2009 and 2008.
The operating information contained in this document includes: occupancy data, comparable NOI, reconciliation of NOI to net earnings (loss), retail and office lease expirations, significant retail and office tenant listings, and our development pipeline. We believe this information will give interested parties a better understanding and more information about our operating performance. The term comparable, which is used throughout this document, is generally defined as including properties that were open and operated in both the three and nine months ended October 31, 2009 and 2008.
We believe occupancy rates, retail and office lease expirations, base rent, and significant retail
and office tenant listings represent meaningful operating statistics about us.
Comparable NOI is useful because it measures the performance of the same properties on a
period-to-period basis and, along with EBDT (as discussed beginning on page 42), is used to assess
operating performance and resource allocation of our strategic business units. While property
dispositions, acquisitions or other factors can impact net earnings in the short term, we believe
comparable NOI gives a more consistent view of our overall performance from quarter-to-quarter and
year-to-year. A reconciliation of NOI to net earnings (loss), the most comparable financial
measure calculated in accordance with GAAP, and reconciliation from NOI to comparable NOI are
provided on pages 5-7 of this document, and a reconciliation of NOI to net earnings (loss) for each
strategic business unit can be found on pages 45-56.
Corporate Headquarters
Forest City Enterprises, Inc.
Terminal Tower
50 Public Square, Suite 1100
Cleveland, Ohio 44113
Forest City Enterprises, Inc.
Terminal Tower
50 Public Square, Suite 1100
Cleveland, Ohio 44113
Annual Report on Form 10-K
A copy of the Annual Report on Form 10-K as filed with the Securities and Exchange Commission for the fiscal year ended January 31, 2009, as amended on Form 10-K/A filed September 25, 2009 and updated on Form 8-K filed October 19, 2009, can be found on our website under SEC Filings or may be obtained without charge upon written request to:
A copy of the Annual Report on Form 10-K as filed with the Securities and Exchange Commission for the fiscal year ended January 31, 2009, as amended on Form 10-K/A filed September 25, 2009 and updated on Form 8-K filed October 19, 2009, can be found on our website under SEC Filings or may be obtained without charge upon written request to:
Thomas T. Kmiecik
Assistant Treasurer
tomkmiecik@forestcity.net
Assistant Treasurer
tomkmiecik@forestcity.net
Website
www.forestcity.net
www.forestcity.net
The information contained on this website is not incorporated herein by reference and does not
constitute a part of this supplemental package.
Investor Relations
Robert G. OBrien
Executive Vice President and Chief Financial Officer
Robert G. OBrien
Executive Vice President and Chief Financial Officer
Transfer Agent and Registrar
Wells Fargo
Shareowner Services
P.O. Box 64854
St. Paul, MN 55164-9440
(800) 468-9716
www.shareowneronline.com
Wells Fargo
Shareowner Services
P.O. Box 64854
St. Paul, MN 55164-9440
(800) 468-9716
www.shareowneronline.com
Stock Exchange Listing
NYSE: FCEA and FCEB
NYSE: FCEA and FCEB
Dividend Reinvestment and Stock Purchase Plan
We offer our shareholders the opportunity to purchase additional shares of common stock through the Forest City Enterprises, Inc. Dividend Reinvestment and Stock Purchase Plan (the Plan) at 97% of current market value. You may obtain a copy of the Plan prospectus and an enrollment card by contacting Wells Fargo Shareowner Services at (800) 468-9716.
We offer our shareholders the opportunity to purchase additional shares of common stock through the Forest City Enterprises, Inc. Dividend Reinvestment and Stock Purchase Plan (the Plan) at 97% of current market value. You may obtain a copy of the Plan prospectus and an enrollment card by contacting Wells Fargo Shareowner Services at (800) 468-9716.
3
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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Occupancy Data - October 31, 2009 and 2008
We analyze our occupancy percentages by each of our major product lines as follows:
Average | Average | ||||||||||||||||
Occupancy | Occupancy | Occupancy | Occupancy | ||||||||||||||
As of | Year-to-Date | As of | Year-to-Date | ||||||||||||||
October 31, 2009 | October 31, 2009 | October 31, 2008 | October 31, 2008 | ||||||||||||||
Retail |
|||||||||||||||||
Comparable |
90.1 | % | 90.0 | % | 91.6 | % | 92.4 | % | |||||||||
Total |
88.4 | % | 88.4 | % | 90.4 | % | 91.4 | % | |||||||||
Office |
|||||||||||||||||
Comparable |
89.4 | % | 89.7 | % | 90.0 | % | 90.0 | % | |||||||||
Total |
88.9 | % | 89.1 | % | 89.7 | % | 89.7 | % | |||||||||
Residential (1) |
|||||||||||||||||
Comparable |
92.6 | % | 90.4 | % | 92.9 | % | 92.4 | % | |||||||||
Total |
91.1 | % | 86.5 | % | 91.1 | % | 89.6 | % | |||||||||
Hotels |
|||||||||||||||||
Comparable and Total |
68.5 | % | 70.7 | % | |||||||||||||
Comparable ADR and Total ADR |
$ | 139.56 | $ | 146.07 |
(1) | Excludes military housing units. |
Retail and office occupancy as of October 31, 2009 and 2008 is based on square feet leased at the
end of the fiscal quarter. Average Occupancy Year-to-Date as of October 31, 2009 and 2008 for
retail and office is calculated by dividing the sum of leased square feet at the beginning and end
of the period by two. Residential occupancy as of October 31, 2009 and 2008 represents total units
occupied divided by total units available. Average residential occupancy year-to-date for 2009 and
2008 is calculated by dividing gross potential rent less vacancy by gross potential rent. Average
Daily Rate (ADR) is calculated by dividing revenue by the number of rooms sold for the nine
months ended October 31, 2009 and 2008.
4
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
We use NOI, along with EBDT as discussed on page 2, to assess operating performance. Comparable
NOI is defined as NOI from properties opened and operated in the three and nine months ended
October 31, 2009 and 2008. The following schedules on pages 6-7 present comparable NOI for each of
our major product lines, as well as strategic business unit under which these product lines
operate. A reconciliation of NOI to the most comparable GAAP measure, net earnings (loss), is
presented on pages 8-9. A reconciliation of NOI to net earnings (loss) for each strategic business
unit can be found on pages 45-56.
Comparable Net Operating Income (NOI) (% change over same period, prior year)
Three Months Ended October 31, 2009 | Nine Months Ended October 31, 2009 | |||||||||||||||
Full | Pro-Rata | Full | Pro-Rata | |||||||||||||
Consolidation | Consolidation | Consolidation | Consolidation | |||||||||||||
Retail |
(2.0 | %) | (1.7 | %) | (2.6 | %) | (2.0 | %) | ||||||||
Office |
5.8 | % | 5.6 | % | 7.4 | % | 6.2 | % | ||||||||
Hotel |
6.2 | % | 6.2 | % | (11.9 | %) | (11.9 | %) | ||||||||
Residential |
(2.5 | %) | (3.9 | %) | (1.4 | %) | (3.3 | %) | ||||||||
Total |
1.3 | % | 0.8 | % | 0.8 | % | 0.1 | % |
5
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Net Operating Income (dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended October 31, 2009 | Three Months Ended October 31, 2008 | % Change | |||||||||||||||||||||||||||||||||||||||||||||||
Plus | Plus | ||||||||||||||||||||||||||||||||||||||||||||||||
Full | Less | Unconsolidated | Plus | Pro-Rata | Full | Less | Unconsolidated | Plus | Pro-Rata | Full | Pro-Rata | ||||||||||||||||||||||||||||||||||||||
Consolidation | Noncontrolling | Investments at | Discontinued | Consolidation | Consolidation | Noncontrolling | Investments at | Discontinued | Consolidation | Consolidation | Consolidation | ||||||||||||||||||||||||||||||||||||||
(GAAP) | Interest | Pro-Rata | Operations | (Non-GAAP) | (GAAP) | Interest | Pro-Rata | Operations | (Non-GAAP) | (GAAP) | (Non-GAAP) | ||||||||||||||||||||||||||||||||||||||
Commercial Group |
|||||||||||||||||||||||||||||||||||||||||||||||||
Retail |
|||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
$ | 59,345 | $ | 2,965 | $ | 5,540 | $ | - | $ | 61,920 | $ | 60,584 | $ | 3,194 | $ | 5,597 | $ | - | $ | 62,987 | (2.0 | %) | (1.7 | %) | |||||||||||||||||||||||||
Total |
62,919 | 2,896 | 5,600 | - | 65,623 | 61,510 | 3,007 | 5,657 | 656 | 64,816 | |||||||||||||||||||||||||||||||||||||||
Office Buildings |
|||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
66,058 | 2,622 | 2,353 | - | 65,789 | 62,444 | 2,613 | 2,440 | - | 62,271 | 5.8 | % | 5.6 | % | |||||||||||||||||||||||||||||||||||
Total |
61,493 | 2,592 | 2,433 | - | 61,334 | 65,079 | 2,618 | 2,440 | - | 64,901 | |||||||||||||||||||||||||||||||||||||||
Hotels |
|||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
5,473 | - | - | - | 5,473 | 5,152 | - | - | - | 5,152 | 6.2 | % | 6.2 | % | |||||||||||||||||||||||||||||||||||
Total |
5,473 | - | - | - | 5,473 | 5,152 | - | - | - | 5,152 | |||||||||||||||||||||||||||||||||||||||
Earnings from Commercial |
|||||||||||||||||||||||||||||||||||||||||||||||||
Land Sales |
1,089 | - | - | - | 1,089 | 2,535 | 181 | - | - | 2,354 | |||||||||||||||||||||||||||||||||||||||
Other (1) |
(1,806 | ) | (99 | ) | (790 | ) | - | (2,497 | ) | (8,059 | ) | 430 | (467 | ) | - | (8,956 | ) | ||||||||||||||||||||||||||||||||
Total Commercial Group |
|||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
130,876 | 5,587 | 7,893 | - | 133,182 | 128,180 | 5,807 | 8,037 | - | 130,410 | 2.1 | % | 2.1 | % | |||||||||||||||||||||||||||||||||||
Total |
129,168 | 5,389 | 7,243 | - | 131,022 | 126,217 | 6,236 | 7,630 | 656 | 128,267 | |||||||||||||||||||||||||||||||||||||||
Residential Group Apartments |
|||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
27,988 | 684 | 6,037 | - | 33,341 | 28,701 | 778 | 6,787 | - | 34,710 | (2.5 | %) | (3.9 | %) | |||||||||||||||||||||||||||||||||||
Total |
29,568 | 714 | 6,993 | 1,653 | 37,500 | 31,279 | 764 | 7,915 | 3,066 | 41,496 | |||||||||||||||||||||||||||||||||||||||
Military Housing |
|||||||||||||||||||||||||||||||||||||||||||||||||
Comparable (2) |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||
Total |
7,918 | 110 | 279 | - | 8,087 | 15,110 | 3,532 | (1,282 | ) | - | 10,296 | ||||||||||||||||||||||||||||||||||||||
Other (1) |
(4,378 | ) | 18 | - | - | (4,396 | ) | (8,447 | ) | 54 | - | - | (8,501 | ) | |||||||||||||||||||||||||||||||||||
Total Residential Group |
|||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
27,988 | 684 | 6,037 | - | 33,341 | 28,701 | 778 | 6,787 | - | 34,710 | (2.5 | %) | (3.9 | %) | |||||||||||||||||||||||||||||||||||
Total |
33,108 | 842 | 7,272 | 1,653 | 41,191 | 37,942 | 4,350 | 6,633 | 3,066 | 43,291 | |||||||||||||||||||||||||||||||||||||||
Total Rental Properties |
|||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
158,864 | 6,271 | 13,930 | - | 166,523 | 156,881 | 6,585 | 14,824 | - | 165,120 | 1.3 | % | 0.8 | % | |||||||||||||||||||||||||||||||||||
Total |
162,276 | 6,231 | 14,515 | 1,653 | 172,213 | 164,159 | 10,586 | 14,263 | 3,722 | 171,558 | |||||||||||||||||||||||||||||||||||||||
Land Development Group (3) |
(1,130 | ) | 127 | (1,767 | ) | - | (3,024 | ) | (11,245 | ) | (1,349 | ) | 89 | - | (9,807 | ) | |||||||||||||||||||||||||||||||||
The Nets |
(10,853 | ) | - | 2,499 | - | (8,354 | ) | (9,859 | ) | - | 1,904 | - | (7,955 | ) | |||||||||||||||||||||||||||||||||||
Corporate Activities |
(9,240 | ) | - | - | - | (9,240 | ) | (7,691 | ) | - | - | - | (7,691 | ) | |||||||||||||||||||||||||||||||||||
Grand Total |
$ | 141,053 | $ | 6,358 | $ | 15,247 | $ | 1,653 | $ | 151,595 | $ | 135,364 | $ | 9,237 | $ | 16,256 | $ | 3,722 | $ | 146,105 | |||||||||||||||||||||||||||||
(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 were $3,758 and
$12,500 at both full and pro-rata consolidation for the three months ended October 31, 2009
and 2008, respectively. |
||
(2) | Comparable NOI for Military Housing commences once the operating projects complete
initial development phase. |
||
(3) | Includes reduction in fair value of the Denver Urban Renewal Authority (DURA) purchase
obligation and fee in 2008 of $12,434,000. |
6
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Net Operating Income (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended October 31, 2009 | Nine Months Ended October 31, 2008 | % Change | ||||||||||||||||||||||||||||||||||||||||||||||||||
Plus | Plus | |||||||||||||||||||||||||||||||||||||||||||||||||||
Full | Less | Unconsolidated | Plus | Pro-Rata | Full | Less | Unconsolidated | Plus | Pro-Rata | Full | Pro-Rata | |||||||||||||||||||||||||||||||||||||||||
Consolidation | Noncontrolling | Investments at | Discontinued | Consolidation | Consolidation | Noncontrolling | Investments at | Discontinued | Consolidation | Consolidation | Consolidation | |||||||||||||||||||||||||||||||||||||||||
(GAAP) | Interest | Pro-Rata | Operations | (Non-GAAP) | (GAAP) | Interest | Pro-Rata | Operations | (Non-GAAP) | (GAAP) | (Non-GAAP) | |||||||||||||||||||||||||||||||||||||||||
Commercial Group |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
$ | 173,579 | $ | 8,733 | $ | 16,593 | $ | - | $ | 181,439 | $ | 178,173 | $ | 9,495 | $ | 16,521 | $ | - | $ | 185,199 | (2.6 | %) | (2.0 | %) | ||||||||||||||||||||||||||||
Total |
187,910 | 8,761 | 18,433 | 481 | 198,063 | 182,000 | 9,322 | 17,727 | 1,873 | 192,278 | ||||||||||||||||||||||||||||||||||||||||||
Office Buildings |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
153,690 | 7,560 | 7,037 | - | 153,167 | 143,083 | 6,406 | 7,572 | - | 144,249 | 7.4 | % | 6.2 | % | ||||||||||||||||||||||||||||||||||||||
Total |
190,755 | 7,895 | 7,221 | - | 190,081 | 190,139 | 7,866 | 7,679 | - | 189,952 | ||||||||||||||||||||||||||||||||||||||||||
Hotels |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
10,803 | - | - | - | 10,803 | 12,256 | - | - | - | 12,256 | (11.9 | %) | (11.9 | %) | ||||||||||||||||||||||||||||||||||||||
Total |
10,803 | - | - | - | 10,803 | 12,256 | - | - | - | 12,256 | ||||||||||||||||||||||||||||||||||||||||||
Earnings from Commercial Land Sales |
5,560 | 476 | - | - | 5,084 | 8,412 | 2,421 | - | - | 5,991 | ||||||||||||||||||||||||||||||||||||||||||
Other (1) |
(9,622 | ) | 445 | (3,172 | ) | - | (13,239 | ) | (34,307 | ) | (165 | ) | (2,574 | ) | - | (36,716 | ) | |||||||||||||||||||||||||||||||||||
Total Commercial Group |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
338,072 | 16,293 | 23,630 | - | 345,409 | 333,512 | 15,901 | 24,093 | - | 341,704 | 1.4 | % | 1.1 | % | ||||||||||||||||||||||||||||||||||||||
Total |
385,406 | 17,577 | 22,482 | 481 | 390,792 | 358,500 | 19,444 | 22,832 | 1,873 | 363,761 | ||||||||||||||||||||||||||||||||||||||||||
Residential Group Apartments |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
83,034 | 2,072 | 18,018 | - | 98,980 | 84,220 | 2,189 | 20,283 | - | 102,314 | (1.4 | %) | (3.3 | %) | ||||||||||||||||||||||||||||||||||||||
Total |
91,654 | 2,900 | 21,136 | 4,553 | 114,443 | 88,902 | 2,175 | 23,482 | 9,626 | 119,835 | ||||||||||||||||||||||||||||||||||||||||||
Military Housing |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable (2) |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||
Total |
28,902 | 148 | 733 | - | 29,487 | 40,749 | 3,928 | 778 | - | 37,599 | ||||||||||||||||||||||||||||||||||||||||||
Other (1) |
(21,526 | ) | 90 | - | - | (21,616 | ) | (23,049 | ) | 143 | - | - | (23,192 | ) | ||||||||||||||||||||||||||||||||||||||
Total Residential Group |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
83,034 | 2,072 | 18,018 | - | 98,980 | 84,220 | 2,189 | 20,283 | - | 102,314 | (1.4 | %) | (3.3 | %) | ||||||||||||||||||||||||||||||||||||||
Total |
99,030 | 3,138 | 21,869 | 4,553 | 122,314 | 106,602 | 6,246 | 24,260 | 9,626 | 134,242 | ||||||||||||||||||||||||||||||||||||||||||
Total Rental Properties |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Comparable |
421,106 | 18,365 | 41,648 | - | 444,389 | 417,732 | 18,090 | 44,376 | - | 444,018 | 0.8 | % | 0.1 | % | ||||||||||||||||||||||||||||||||||||||
Total |
484,436 | 20,715 | 44,351 | 5,034 | 513,106 | 465,102 | 25,690 | 47,092 | 11,499 | 498,003 | ||||||||||||||||||||||||||||||||||||||||||
Land Development Group (3) |
1,642 | 177 | (1,602 | ) | - | (137 | ) | (5,087 | ) | (930 | ) | 367 | - | (3,790 | ) | |||||||||||||||||||||||||||||||||||||
The Nets |
(29,841 | ) | - | 5,448 | - | (24,393 | ) | (31,880 | ) | - | 5,207 | - | (26,673 | ) | ||||||||||||||||||||||||||||||||||||||
Corporate Activities |
(31,855 | ) | - | - | - | (31,855 | ) | (31,274 | ) | - | - | - | (31,274 | ) | ||||||||||||||||||||||||||||||||||||||
Grand Total |
$ | 424,382 | $ | 20,892 | $ | 48,197 | $ | 5,034 | $ | 456,721 | $ | 396,861 | $ | 24,760 | $ | 52,666 | $ | 11,499 | $ | 436,266 | ||||||||||||||||||||||||||||||||
(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 were $21,398 and
$41,452 at full consolidation ($21,398 and $39,206 at pro-rata consolidation) for the nine
months ended October 31, 2009 and 2008, respectively. |
||
(2) | Comparable NOI for Military Housing commences once the operating projects complete
initial development phase. |
||
(3) | Includes reduction in fair value of the DURA purchase obligation and fee in 2008 of
$12,434,000. |
7
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Reconciliation of Net Operating Income (non-GAAP) to Net Earnings (Loss) (GAAP) (in thousands)
Three Months Ended October 31, 2009 | Three Months Ended October 31, 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | 306,100 | $ | 12,447 | $ | 74,528 | $ | 1,688 | $ | 369,869 | $ | 330,381 | $ | 16,129 | $ | 87,802 | $ | 4,149 | $ | 406,203 | |||||||||||||||||||||
Exclude straight-line rent adjustment (1) |
(4,774 | ) | - | - | - | (4,774 | ) | (6,062 | ) | - | - | (48 | ) | (6,110 | ) | ||||||||||||||||||||||||||
Adjusted revenues |
301,326 | 12,447 | 74,528 | 1,688 | 365,095 | 324,319 | 16,129 | 87,802 | 4,101 | 400,093 | |||||||||||||||||||||||||||||||
Operating expenses |
171,684 | 6,276 | 51,910 | 35 | 217,353 | 200,441 | 7,295 | 66,096 | 416 | 259,658 | |||||||||||||||||||||||||||||||
Add back non-Real Estate depreciation and amortization (b) |
3,412 | - | 2,351 | - | 5,763 | 3,119 | - | 1,326 | - | 4,445 | |||||||||||||||||||||||||||||||
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d) |
- | - | 161 | - | 161 | - | - | 64 | - | 64 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment (2) |
(1,610 | ) | - | - | - | (1,610 | ) | (1,587 | ) | - | - | - | (1,587 | ) | |||||||||||||||||||||||||||
Exclude preference payment |
(585 | ) | - | - | - | (585 | ) | (877 | ) | - | - | - | (877 | ) | |||||||||||||||||||||||||||
Adjusted operating expenses |
172,901 | 6,276 | 54,422 | 35 | 221,082 | 201,096 | 7,295 | 67,486 | 416 | 261,703 | |||||||||||||||||||||||||||||||
Add interest and other income |
5,522 | 200 | 1,661 | - | 6,983 | 6,752 | 293 | 602 | 37 | 7,098 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
(11,836 | ) | (13 | ) | 12,422 | - | 599 | (3,198 | ) | 110 | 3,925 | - | 617 | ||||||||||||||||||||||||||||
Exclude gain on disposition of unconsolidated entities |
(4,498 | ) | - | 4,498 | - | - | (200 | ) | - | 200 | - | - | |||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
13,200 | - | (13,200 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities (see below) |
10,240 | - | (10,240 | ) | - | - | 8,787 | - | (8,787 | ) | - | - | |||||||||||||||||||||||||||||
Net Operating Income |
141,053 | 6,358 | 15,247 | 1,653 | 151,595 | 135,364 | 9,237 | 16,256 | 3,722 | 146,105 | |||||||||||||||||||||||||||||||
Interest expense |
(87,863 | ) | (4,032 | ) | (17,121 | ) | (502 | ) | (101,454 | ) | (97,081 | ) | (3,617 | ) | (16,227 | ) | (1,883 | ) | (111,574 | ) | |||||||||||||||||||||
Gain (loss) on early extinguishment of debt |
28,902 | - | 1,874 | - | 30,776 | 3,692 | - | (29 | ) | - | 3,663 | ||||||||||||||||||||||||||||||
Equity in earnings (loss), including impairment of unconsolidated entities |
11,836 | 13 | (12,422 | ) | - | (599 | ) | 3,198 | (110 | ) | (3,925 | ) | - | (617 | ) | ||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities |
4,498 | - | - | - | 4,498 | 200 | - | - | - | 200 | |||||||||||||||||||||||||||||||
Impairment of unconsolidated entities |
(13,200 | ) | - | - | - | (13,200 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||
Depreciation and amortization of unconsolidated entities (see above) |
(10,240 | ) | - | 10,240 | - | - | (8,787 | ) | - | 8,787 | - | - | |||||||||||||||||||||||||||||
Impairment of real estate |
(549 | ) | - | - | (9,775 | ) | (10,324 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||
Depreciation
and amortization - Real Estate Groups (a) |
(62,981 | ) | (1,687 | ) | (9,795 | ) | (195 | ) | (71,284 | ) | (60,919 | ) | (1,044 | ) | (8,399 | ) | (1,451 | ) | (69,725 | ) | |||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups (c) |
(3,562 | ) | (126 | ) | (445 | ) | (7 | ) | (3,888 | ) | (2,838 | ) | (114 | ) | (388 | ) | (106 | ) | (3,218 | ) | |||||||||||||||||||||
Straight-line rent adjustment (1) + (2) |
3,164 | - | - | - | 3,164 | 4,475 | - | - | 48 | 4,523 | |||||||||||||||||||||||||||||||
Preference payment |
(585 | ) | - | - | - | (585 | ) | (877 | ) | - | - | - | (877 | ) | |||||||||||||||||||||||||||
Earnings (loss) before income taxes |
10,473 | 526 | (12,422 | ) | (8,826 | ) | (11,301 | ) | (23,573 | ) | 4,352 | (3,925 | ) | 330 | (31,520 | ) | |||||||||||||||||||||||||
Income tax provision |
2,895 | - | - | 3,423 | 6,318 | 11,916 | - | - | (128 | ) | 11,788 | ||||||||||||||||||||||||||||||
Equity in earnings (loss), including impairment of unconsolidated entities |
(11,836 | ) | (13 | ) | 12,422 | - | 599 | (3,198 | ) | 110 | 3,925 | - | 617 | ||||||||||||||||||||||||||||
Earnings (loss) from continuing operations |
1,532 | 513 | - | (5,403 | ) | (4,384 | ) | (14,855 | ) | 4,462 | - | 202 | (19,115 | ) | |||||||||||||||||||||||||||
Discontinued operations, net of tax |
(5,403 | ) | - | - | 5,403 | - | 202 | - | - | (202 | ) | - | |||||||||||||||||||||||||||||
Net earnings (loss) |
(3,871 | ) | 513 | - | - | (4,384 | ) | (14,653 | ) | 4,462 | - | - | (19,115 | ) | |||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interest |
(513 | ) | (513 | ) | - | - | - | (4,462 | ) | (4,462 | ) | - | - | - | |||||||||||||||||||||||||||
Net loss
attributable to Forest City Enterprises, Inc. |
$ | (4,384 | ) | $ | - | $ | - | $ | - | $ | (4,384 | ) | $ | (19,115 | ) | $ | - | $ | - | $ | - | $ | (19,115 | ) | |||||||||||||||||
(a) Depreciation and amortization - Real Estate Groups |
$ | 62,981 | $ | 1,687 | $ | 9,795 | $ | 195 | $ | 71,284 | $ | 60,919 | $ | 1,044 | $ | 8,399 | $ | 1,451 | $ | 69,725 | |||||||||||||||||||||
(b) Depreciation and amortization - Non-Real Estate |
3,412 | - | 2,351 | - | 5,763 | 3,119 | - | 1,326 | - | 4,445 | |||||||||||||||||||||||||||||||
Total depreciation and amortization |
$ | 66,393 | $ | 1,687 | $ | 12,146 | $ | 195 | $ | 77,047 | $ | 64,038 | $ | 1,044 | $ | 9,725 | $ | 1,451 | $ | 74,170 | |||||||||||||||||||||
(c) Amortization of mortgage procurement costs - Real Estate Groups |
$ | 3,562 | $ | 126 | $ | 445 | $ | 7 | $ | 3,888 | $ | 2,838 | $ | 114 | $ | 388 | $ | 106 | $ | 3,218 | |||||||||||||||||||||
(d) Amortization of mortgage procurement costs - Non-Real Estate |
- | - | 161 | - | 161 | - | - | 64 | - | 64 | |||||||||||||||||||||||||||||||
Total amortization of mortgage procurement costs |
$ | 3,562 | $ | 126 | $ | 606 | $ | 7 | $ | 4,049 | $ | 2,838 | $ | 114 | $ | 452 | $ | 106 | $ | 3,282 | |||||||||||||||||||||
8
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Reconciliation of Net Operating Income (non-GAAP) to Net Earnings (Loss) (GAAP) (in thousands)
(continued)
Nine Months Ended October 31, 2009 | Nine Months Ended October 31, 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | 932,889 | $ | 38,008 | $ | 262,820 | $ | 5,476 | $ | 1,163,177 | $ | 960,007 | $ | 47,695 | $ | 287,144 | $ | 13,114 | $ | 1,212,570 | |||||||||||||||||||||
Exclude straight-line rent adjustment (1) |
(14,398 | ) | - | - | (12 | ) | (14,410 | ) | (8,055 | ) | - | - | (147 | ) | (8,202 | ) | |||||||||||||||||||||||||
Adjusted revenues |
918,491 | 38,008 | 262,820 | 5,464 | 1,148,767 | 951,952 | 47,695 | 287,144 | 12,967 | 1,204,368 | |||||||||||||||||||||||||||||||
Operating expenses |
532,000 | 17,578 | 187,980 | 430 | 702,832 | 593,306 | 24,338 | 211,607 | 1,604 | 782,179 | |||||||||||||||||||||||||||||||
Add back non-Real Estate depreciation and amortization (b) |
10,372 | - | 12,348 | - | 22,720 | 9,940 | - | 14,765 | - | 24,705 | |||||||||||||||||||||||||||||||
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d) |
- | - | 402 | - | 402 | - | - | 169 | - | 169 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment (2) |
(4,857 | ) | - | - | - | (4,857 | ) | (4,780 | ) | - | - | - | (4,780 | ) | |||||||||||||||||||||||||||
Exclude preference payment |
(1,756 | ) | - | - | - | (1,756 | ) | (2,744 | ) | - | - | - | (2,744 | ) | |||||||||||||||||||||||||||
Adjusted operating expenses |
535,759 | 17,578 | 200,730 | 430 | 719,341 | 595,722 | 24,338 | 226,541 | 1,604 | 799,529 | |||||||||||||||||||||||||||||||
Add interest and other income |
23,924 | 543 | 2,866 | - | 26,247 | 27,976 | 1,420 | 3,685 | 136 | 30,377 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
(45,140 | ) | (81 | ) | 46,107 | - | 1,048 | (18,787 | ) | (17 | ) | 19,820 | - | 1,050 | |||||||||||||||||||||||||||
Exclude gain on disposition of unconsolidated entities |
(4,498 | ) | - | 4,498 | - | - | (1,081 | ) | - | 1,081 | - | - | |||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
34,663 | - | (34,663 | ) | - | - | 6,026 | - | (6,026 | ) | - | - | |||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities (see below) |
32,701 | - | (32,701 | ) | - | - | 26,497 | - | (26,497 | ) | - | - | |||||||||||||||||||||||||||||
Net Operating Income |
424,382 | 20,892 | 48,197 | 5,034 | 456,721 | 396,861 | 24,760 | 52,666 | 11,499 | 436,266 | |||||||||||||||||||||||||||||||
Interest expense |
(258,434 | ) | (10,832 | ) | (49,895 | ) | (2,184 | ) | (299,681 | ) | (259,450 | ) | (10,359 | ) | (52,407 | ) | (5,721 | ) | (307,219 | ) | |||||||||||||||||||||
Gain (loss) on early extinguishment of debt |
37,965 | - | 1,698 | - | 39,663 | (1,539 | ) | (119 | ) | (51 | ) | - | (1,471 | ) | |||||||||||||||||||||||||||
Equity in earnings (loss), including impairment of unconsolidated entities |
45,140 | 81 | (46,107 | ) | - | (1,048 | ) | 18,787 | 17 | (19,820 | ) | - | (1,050 | ) | |||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities |
4,498 | - | - | - | 4,498 | 1,081 | - | - | - | 1,081 | |||||||||||||||||||||||||||||||
Impairment
of unconsolidated entities |
(34,663 | ) | - | - | - | (34,663 | ) | (6,026 | ) | - | - | - | (6,026 | ) | |||||||||||||||||||||||||||
Depreciation and amortization of unconsolidated entities (see above) |
(32,701 | ) | - | 32,701 | - | - | (26,497 | ) | - | 26,497 | - | - | |||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments |
- | - | - | 4,548 | 4,548 | 150 | - | - | 8,627 | 8,777 | |||||||||||||||||||||||||||||||
Preferred
return on disposition |
- | - | - | - | - | - | - | (208 | ) | - | (208 | ) | |||||||||||||||||||||||||||||
Impairment of real estate |
(3,124 | ) | - | - | (9,775 | ) | (12,899 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups (a) |
(189,287 | ) | (3,412 | ) | (31,214 | ) | (1,347 | ) | (218,436 | ) | (188,670 | ) | (3,575 | ) | (25,167 | ) | (3,911 | ) | (214,173 | ) | |||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups (c) |
(10,645 | ) | (449 | ) | (1,487 | ) | (50 | ) | (11,733 | ) | (8,723 | ) | (383 | ) | (1,330 | ) | (339 | ) | (10,009 | ) | |||||||||||||||||||||
Straight-line rent adjustment (1) + (2) |
9,541 | - | - | 12 | 9,553 | 3,275 | - | - | 147 | 3,422 | |||||||||||||||||||||||||||||||
Preference payment |
(1,756 | ) | - | - | - | (1,756 | ) | (2,744 | ) | - | - | - | (2,744 | ) | |||||||||||||||||||||||||||
Earnings (loss) before income taxes |
(9,084 | ) | 6,280 | (46,107 | ) | (3,762 | ) | (65,233 | ) | (73,495 | ) | 10,341 | (19,820 | ) | 10,302 | (93,354 | ) | ||||||||||||||||||||||||
Income tax provision |
25,874 | - | - | 1,459 | 27,333 | 28,382 | - | - | (3,981 | ) | 24,401 | ||||||||||||||||||||||||||||||
Equity in earnings (loss), including impairment of unconsolidated entities |
(45,140 | ) | (81 | ) | 46,107 | - | 1,048 | (18,787 | ) | (17 | ) | 19,820 | - | 1,050 | |||||||||||||||||||||||||||
Earnings (loss) from continuing operations |
(28,350 | ) | 6,199 | - | (2,303 | ) | (36,852 | ) | (63,900 | ) | 10,324 | - | 6,321 | (67,903 | ) | ||||||||||||||||||||||||||
Discontinued operations, net of tax |
(2,303 | ) | - | - | 2,303 | - | 6,321 | - | - | (6,321 | ) | - | |||||||||||||||||||||||||||||
Net earnings (loss) |
(30,653 | ) | 6,199 | - | - | (36,852 | ) | (57,579 | ) | 10,324 | - | - | (67,903 | ) | |||||||||||||||||||||||||||
Net earnings attributable to noncontrolling interest |
(6,199 | ) | (6,199 | ) | - | - | - | (10,324 | ) | (10,324 | ) | - | - | - | |||||||||||||||||||||||||||
Net loss attributable to Forest City Enterprises, Inc. |
$ | (36,852 | ) | $ | - | $ | - | $ | - | $ | (36,852 | ) | $ | (67,903 | ) | $ | - | $ | - | $ | - | $ | (67,903 | ) | |||||||||||||||||
(a) Depreciation and amortization - Real Estate Groups |
$ | 189,287 | $ | 3,412 | $ | 31,214 | $ | 1,347 | $ | 218,436 | $ | 188,670 | $ | 3,575 | $ | 25,167 | $ | 3,911 | $ | 214,173 | |||||||||||||||||||||
(b) Depreciation and amortization - Non-Real Estate |
10,372 | - | 12,348 | - | 22,720 | 9,940 | - | 14,765 | - | 24,705 | |||||||||||||||||||||||||||||||
Total depreciation and amortization |
$ | 199,659 | $ | 3,412 | $ | 43,562 | $ | 1,347 | $ | 241,156 | $ | 198,610 | $ | 3,575 | $ | 39,932 | $ | 3,911 | $ | 238,878 | |||||||||||||||||||||
(c) Amortization of mortgage procurement costs - Real Estate Groups |
$ | 10,645 | $ | 449 | $ | 1,487 | $ | 50 | $ | 11,733 | $ | 8,723 | $ | 383 | $ | 1,330 | $ | 339 | $ | 10,009 | |||||||||||||||||||||
(d) Amortization of mortgage procurement costs - Non-Real Estate |
- | - | 402 | - | 402 | - | - | 169 | - | 169 | |||||||||||||||||||||||||||||||
Total amortization of mortgage procurement costs |
$ | 10,645 | $ | 449 | $ | 1,889 | $ | 50 | $ | 12,135 | $ | 8,723 | $ | 383 | $ | 1,499 | $ | 339 | $ | 10,178 | |||||||||||||||||||||
9
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Retail Lease Expirations as of October 31, 2009
AVERAGE | ||||||||||||||||||||||||
BASE | ||||||||||||||||||||||||
NUMBER OF | SQUARE FEET | PERCENTAGE | NET | PERCENTAGE | RENT PER | |||||||||||||||||||
EXPIRATION | EXPIRING | OF EXPIRING | OF TOTAL | BASE RENT | OF TOTAL | SQUARE FEET | ||||||||||||||||||
YEAR | LEASES | LEASES (3) | LEASED GLA (1) | EXPIRING (2) | BASE RENT | EXPIRING (3) | ||||||||||||||||||
2009 |
91 | 341,511 | 2.71 | % | $ | 6,681,659 | 2.42 | % | $ | 24.36 | ||||||||||||||
2010 |
250 | 599,143 | 4.75 | 15,028,665 | 5.44 | 30.98 | ||||||||||||||||||
2011 |
330 | 1,194,650 | 9.48 | 28,225,976 | 10.22 | 28.49 | ||||||||||||||||||
2012 |
239 | 925,596 | 7.34 | 22,352,373 | 8.10 | 27.95 | ||||||||||||||||||
2013 |
234 | 1,027,701 | 8.15 | 25,077,209 | 9.08 | 27.48 | ||||||||||||||||||
2014 |
208 | 966,678 | 7.67 | 20,238,298 | 7.33 | 27.23 | ||||||||||||||||||
2015 |
167 | 771,701 | 6.12 | 18,173,524 | 6.58 | 27.49 | ||||||||||||||||||
2016 |
228 | 1,201,090 | 9.53 | 32,793,756 | 11.88 | 37.79 | ||||||||||||||||||
2017 |
150 | 1,020,477 | 8.10 | 22,588,385 | 8.18 | 25.97 | ||||||||||||||||||
2018 |
170 | 856,466 | 6.80 | 18,191,261 | 6.59 | 23.32 | ||||||||||||||||||
2019 |
93 | 886,353 | 7.03 | 18,845,869 | 6.83 | 22.81 | ||||||||||||||||||
Thereafter |
92 | 2,810,976 | 22.32 | 47,909,903 | 17.35 | 19.61 | ||||||||||||||||||
Total |
2,252 | 12,602,342 | 100.00 | % | $ | 276,106,878 | 100.00 | % | $ | 26.17 | ||||||||||||||
(1) | GLA = Gross Leasable Area. |
||
(2) | Net base rent expiring is an operating statistic and is not comparable to rental revenue, a
GAAP financial measure. The primary differences arise because net base rent is determined
using the tenants contractual rental agreements at our ownership share of the base rental
income from expiring leases as determined within the rent agreement and it does not include
adjustments such as the impact of straight-line rent and contingent rental payments, which
are not reasonably estimable. |
||
(3) | Square feet of expiring leases and average base rent per square feet are operating
statistics that represent 100% of the square footage and base rental income per square foot
from expiring leases. |
10
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Office Lease Expirations as of October 31, 2009
AVERAGE | ||||||||||||||||||||||||
BASE | ||||||||||||||||||||||||
NUMBER OF | SQUARE FEET | PERCENTAGE | NET | PERCENTAGE | RENT PER | |||||||||||||||||||
EXPIRATION | EXPIRING | OF EXPIRING | OF TOTAL | BASE RENT | OF TOTAL | SQUARE FEET | ||||||||||||||||||
YEAR | LEASES | LEASES (3) | LEASED GLA (1) | EXPIRING (2) | BASE RENT | EXPIRING (3) | ||||||||||||||||||
2009 |
24 | 102,024 | 0.93 | % | $ | 2,131,818 | 0.68 | % | $ | 23.05 | ||||||||||||||
2010 |
92 | 1,120,742 | 10.26 | 24,006,921 | 7.63 | 25.14 | ||||||||||||||||||
2011 |
68 | 698,954 | 6.40 | 16,539,531 | 5.26 | 26.44 | ||||||||||||||||||
2012 |
74 | 1,109,527 | 10.16 | 31,722,090 | 10.08 | 30.37 | ||||||||||||||||||
2013 |
73 | 1,168,280 | 10.70 | 26,839,777 | 8.53 | 24.46 | ||||||||||||||||||
2014 |
39 | 785,026 | 7.19 | 20,529,419 | 6.52 | 30.40 | ||||||||||||||||||
2015 |
10 | 255,836 | 2.34 | 4,665,093 | 1.48 | 19.12 | ||||||||||||||||||
2016 |
20 | 484,252 | 4.43 | 9,370,983 | 2.98 | 22.06 | ||||||||||||||||||
2017 |
17 | 251,670 | 2.30 | 7,966,325 | 2.53 | 34.39 | ||||||||||||||||||
2018 |
16 | 1,048,025 | 9.60 | 30,014,917 | 9.54 | 32.59 | ||||||||||||||||||
2019 |
17 | 689,141 | 6.31 | 16,355,416 | 5.20 | 25.62 | ||||||||||||||||||
Thereafter |
35 | 3,206,569 | 29.38 | 124,485,681 | 39.57 | 40.73 | ||||||||||||||||||
Total |
485 | 10,920,046 | 100.00 | % | $ | 314,627,971 | 100.00 | % | $ | 31.30 | ||||||||||||||
(1) | GLA = Gross Leasable Area. |
||
(2) | Net base rent expiring is an operating statistic and is not comparable to rental revenue, a
GAAP financial measure. The primary differences arise because net base rent is determined
using the tenants contractual rental agreements at our ownership share of the base rental
income from expiring leases as determined within the rent agreement and it does not include
adjustments such as the impact of straight-line rent and contingent rental payments, which
are not reasonably estimable. |
||
(3) | Square feet of expiring leases and average base rent per square feet are operating
statistics that represent 100% of the square footage and base rental income per square foot
from expiring leases. |
11
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Schedule of Significant Retail Tenants as of October 31, 2009
(Based on net base rent 1% or greater of the Companys ownership share)
NUMBER | LEASED | PERCENTAGE OF | ||||||||||
OF | SQUARE | TOTAL RETAIL | ||||||||||
TENANT | LEASES | FEET | SQUARE FEET | |||||||||
AMC Entertainment, Inc. |
6 | 515,097 | 4.09 | % | ||||||||
Bass Pro Shops, Inc. |
3 | 510,855 | 4.05 | |||||||||
Regal Entertainment Group |
5 | 381,461 | 3.03 | |||||||||
TJX Companies |
10 | 313,861 | 2.49 | |||||||||
The Gap |
24 | 305,756 | 2.43 | |||||||||
The Home Depot |
2 | 282,000 | 2.24 | |||||||||
Dicks Sporting Goods |
5 | 257,486 | 2.04 | |||||||||
The Limited |
39 | 230,934 | 1.83 | |||||||||
Abercrombie & Fitch Stores, Inc. |
30 | 223,567 | 1.77 | |||||||||
Footlocker, Inc. |
40 | 153,693 | 1.22 | |||||||||
Pathmark Stores, Inc. |
2 | 123,500 | 0.98 | |||||||||
American Eagle Outfitters |
19 | 109,994 | 0.87 | |||||||||
H&M |
6 | 77,327 | 0.62 | |||||||||
Subtotal |
191 | 3,485,531 | 27.66 | |||||||||
All Others |
2,061 | 9,116,811 | 72.34 | |||||||||
Total |
2,252 | 12,602,342 | 100.00 | % | ||||||||
12
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Schedule of Significant Office Tenants as of October 31, 2009
(Based on net base rent 2% or greater of the Companys ownership share)
LEASED | PERCENTAGE OF | |||||||
SQUARE | TOTAL OFFICE | |||||||
TENANT | FEET | SQUARE FEET | ||||||
City of New York |
890,185 | 8.15 | % | |||||
Millennium Pharmaceuticals, Inc. |
628,934 | 5.76 | ||||||
U.S. Government |
620,402 | 5.68 | ||||||
Morgan Stanley & Co. |
444,685 | 4.07 | ||||||
Securities Industry Automation Corp. |
433,971 | 3.97 | ||||||
Wellchoice, Inc. |
392,514 | 3.59 | ||||||
JP Morgan Chase & Co. |
385,254 | 3.53 | ||||||
Forest City Enterprises, Inc. (1) |
368,909 | 3.38 | ||||||
Bank of New York |
323,043 | 2.96 | ||||||
National Grid |
254,034 | 2.33 | ||||||
Alkermes, Inc. |
210,248 | 1.93 | ||||||
Clearbridge Advisors, LLC, a Legg Mason Company |
193,249 | 1.77 | ||||||
Covington & Burling, LLP |
160,565 | 1.47 | ||||||
Seyfarth Shaw, LLP |
96,909 | 0.89 | ||||||
Subtotal |
5,402,902 | 49.48 | ||||||
All Others |
5,517,144 | 50.52 | ||||||
Total |
10,920,046 | 100.00 | % | |||||
(1) | All intercompany rental income is eliminated in consolidation. |
13
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Development Pipeline
October 31, 2009
2009 Openings and Acquisitions (2)
October 31, 2009
2009 Openings and Acquisitions (2)
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 | ||||||||||||||||||||||||||||||||||
Property | Location | Acq (A) | Acquired | Ownership % (a) | (1) | (GAAP) (b) | (2) | (1) X (2) | Units | Area | ||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||
Retail Centers: |
||||||||||||||||||||||||||||||||||||||||||
Promenade at Temecula Expansion |
Temecula, CA | D | Q1-09 | 75.0 | % | 100.0 | % | $ | 107.0 | $ | 107.0 | $ | 107.0 | 127,000 | 127,000 | |||||||||||||||||||||||||||
Residential: |
||||||||||||||||||||||||||||||||||||||||||
North Church Towers (d) |
Parma Heights, OH | A | Q3-09 | 100.0 | % | 100.0 | % | $ | 5.6 | $ | 5.6 | $ | 5.6 | 399 | ||||||||||||||||||||||||||||
Total Openings and Acquisitions |
$ | 112.6 | $ | 112.6 | $ | 112.6 | ||||||||||||||||||||||||||||||||||||
Residential Phased-In Units (e) (f): | Opened in 09 / Total |
|||||||||||||||||||||||||||||||||||||||||
Cobblestone Court |
Painesville, OH | D | 2006-09 | 50.0 | % | 50.0 | % | $ | 0.0 | $ | 30.3 | $ | 15.2 | 72/400 |
||||||||||||||||||||||||||||
Sutton Landing |
Brimfield, OH | D | 2007-09 | 50.0 | % | 50.0 | % | 0.0 | 15.9 | 8.0 | 36/216 |
|||||||||||||||||||||||||||||||
Stratford Crossing |
Wadsworth, OH | D | 2007-10 | 50.0 | % | 50.0 | % | 0.0 | 25.3 | 12.7 | 36/348 |
|||||||||||||||||||||||||||||||
Total (g) | $ | 0.0 | $ | 71.5 | $ | 35.9 | 144/964 |
|||||||||||||||||||||||||||||||||||
See attached footnotes.
14
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Development Pipeline
October 31, 2009
Under Construction (7)
October 31, 2009
Under Construction (7)
Cost at FCE | ||||||||||||||||||||||||||||||||||||||||||||||
Pro-Rata | Cost at Full | Total Cost | Pro-Rata Share | Sq. ft./ | Gross | |||||||||||||||||||||||||||||||||||||||||
Dev (D) | Anticipated | FCE Legal | FCE % (a) | Consolidation | at 100% | (Non-GAAP) (c) | No. of | Leasable | Lease | |||||||||||||||||||||||||||||||||||||
Property | Location | Acq (A) | Opening | Ownership % (a) | (1) | (GAAP) (b) | (2) | (1) X (2) | Units | Area | Commitment % | |||||||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||||||||||||||||||
Retail Centers: |
||||||||||||||||||||||||||||||||||||||||||||||
East River
Plaza (e) (f) (m) |
Manhattan, NY | D | Q4-09/10 | 35.0 | % | 50.0 | % | $ | 0.0 | $ | 398.1 | $ | 199.1 | 527,000 | 527,000 | 92 | % | |||||||||||||||||||||||||||||
Village at Gulfstream Park |
Hallandale Beach, FL | D | Q1-10 | 50.0 | % | 50.0 | % | 203.6 | 203.6 | 101.8 | 497,000 | 497,000 | (j) | 70 | % | |||||||||||||||||||||||||||||||
Ridge Hill (e) |
Yonkers, NY | D | 2011/2012 | 70.0 | % | 100.0 | % | 798.7 | 798.7 | 798.7 | 1,336,000 | 1,336,000 | (k) | 33 | % | |||||||||||||||||||||||||||||||
$ | 1,002.3 | $ | 1,400.4 | $ | 1,099.6 | 2,360,000 | 2,360,000 | |||||||||||||||||||||||||||||||||||||||
Office: |
||||||||||||||||||||||||||||||||||||||||||||||
Waterfront Station - East 4th & West 4th Buildings |
Washington, D.C. | D | Q1-10 | 45.0 | % | 45.0 | % | $ | 326.7 | $ | 326.7 | $ | 147.0 | 628,000 | (l) | 97 | % | |||||||||||||||||||||||||||||
Residential: |
||||||||||||||||||||||||||||||||||||||||||||||
80 Dekalb Avenue (e) |
Brooklyn, NY | D | Q4-09/10 | 70.0 | % | 100.0 | % | $ | 163.3 | $ | 163.3 | $ | 163.3 | 365 | ||||||||||||||||||||||||||||||||
Presidio |
San Francisco, CA | D | Q3-10 | 100.0 | % | 100.0 | % | 110.7 | 110.7 | 110.7 | 161 | |||||||||||||||||||||||||||||||||||
Beekman (e) |
Manhattan, NY | D | Q1-11/12 | 49.0 | % | 70.0 | % | 875.7 | 875.7 | 613.0 | 904 | |||||||||||||||||||||||||||||||||||
$ | 1,149.7 | $ | 1,149.7 | $ | 887.0 | 1,430 | ||||||||||||||||||||||||||||||||||||||||
Total Under Construction (h) |
$ | 2,478.7 | $ | 2,876.8 | $ | 2,133.6 | ||||||||||||||||||||||||||||||||||||||||
Residential Phased-In Units (e) (f): |
Under Const./Total |
|||||||||||||||||||||||||||||||||||||||||||||
Cobblestone Court |
Painesville, OH | D | 2006-09 | 50.0 | % | 50.0 | % | $ | 0.0 | $ | 30.3 | $ | 15.2 | 24/400 |
||||||||||||||||||||||||||||||||
Stratford Crossing |
Wadsworth, OH | D | 2007-10 | 50.0 | % | 50.0 | % | 0.0 | 25.3 | 12.7 | 96/348 |
|||||||||||||||||||||||||||||||||||
Total (i) | $ | 0.0 | $ | 55.6 | $ | 27.9 | 120/748 |
|||||||||||||||||||||||||||||||||||||||
See attached footnotes.
Military
Housing see footnote n.
15
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Development Pipeline
October 31, 2009 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 Companys 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 Citys share of cost, based on the Companys
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) | The Company exchanged its 50% ownership interest in Boulevard Towers, an apartment community
located in Amherst, New York, for 100% ownership in North Church Towers, in a nonmonetary
exchange. |
|
(e) | Phased-in openings. Costs are representative of the total project. |
|
(f) | 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. |
|
(g) | The difference between the full consolidation cost amount (GAAP) of $0.0 million to the
Companys pro-rata share (a non-GAAP measure) of $35.9 million consists of the Companys share
of cost for unconsolidated investments of $35.9 million. |
|
(h) | The difference between the full consolidation cost amount (GAAP) of $2,478.7 million to the
Companys pro-rata share (a non-GAAP measure) of $2,133.6 million consists of a reduction to
full consolidation for noncontrolling interest of $544.2 million of cost and the addition of
its share of cost for unconsolidated investments of $199.1 million. |
|
(i) | The difference between the full consolidation cost amount (GAAP) of $0.0 million to the
Companys pro-rata share (a non-GAAP measure) of $27.9 million consists of the Companys share
of cost for unconsolidated investments of $27.9 million. |
|
(j) | Includes 89,000 square feet of office space. Excluding this office space from the
calculation of the preleased percentage would result in the retail space being 85% preleased.
In addition, includes 35,000 square feet site for Crate & Barrel, opening Q4-09. |
|
(k) | Includes 156,000 square feet of office space. |
|
(l) | Includes 85,000 square feet of retail space. |
|
(m) | Total cost includes
construction of the 1,248-space parking garage and structural
upgrades to accommodate a possible future residential project above
the retail center. |
|
(n) | 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. (See pages 6-7 for net fee revenue
included in NOI.) |
Property | Location | Anticipated Opening |
FCE Pro-Rata % |
Cost at Full Consolidation |
Total Cost at 100% |
Sq. ft./ No. of Units |
||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Military Housing Under Construction (7) |
||||||||||||||||||||||||
Navy Midwest |
Chicago, IL | 2006-2010 | * | $ | 0.0 | $ | 248.8 | 1,658 | ||||||||||||||||
Air Force Academy |
Colorado Springs, CO | 2007-2009 | 50.0 | % | 0.0 | 69.5 | 427 | |||||||||||||||||
Pacific Northwest Communities |
Seattle, WA | 2007-2010 | * | 0.0 | 280.5 | 2,986 | ||||||||||||||||||
Midwest Millington |
Memphis, TN | 2008-2010 | * | 0.0 | 37.0 | 318 | ||||||||||||||||||
Marines, Hawaii Increment II |
Honolulu, HI | 2007-2011 | * | 0.0 | 293.3 | 1,175 | ||||||||||||||||||
Navy, Hawaii Increment III |
Honolulu, HI | 2007-2011 | * | 0.0 | 535.1 | 2,520 | ||||||||||||||||||
Hawaii Phase IV |
Kaneohe, HI | 2007-2014 | * | 0.0 | 364.0 | 917 | ||||||||||||||||||
Total Military Housing Under Construction |
$ | 0.0 | $ | 1,828.2 | 10,001 | |||||||||||||||||||
* The Companys share of residual cash flow ranges from 0-20% during the life cycle of the
project. |
16
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information
Supplemental Operating Information
Development Pipeline
October 31, 2009
Equity Requirements for Projects Under Construction (1)
October 31, 2009
Equity Requirements for Projects Under Construction (1)
Less | Plus | |||||||||||||||||||||||
Unconsolidated | Full | Less | Unconsolidated | Pro - Rata | ||||||||||||||||||||
Investments | Consolidation | Noncontrolling | Investments | Consolidation | ||||||||||||||||||||
100% | at 100% | (GAAP) | Interest | at Pro Rata | (Non-GAAP) | |||||||||||||||||||
(dollars in millions) | ||||||||||||||||||||||||
Total Cost Under Construction |
$ | 2,876.8 | $ | 398.1 | $ | 2,478.7 | $ | 544.2 | $ | 199.1 | $ | 2,133.6 | ||||||||||||
Total Loan Draws and Other Sources at Completion (2) |
2,111.2 | 285.0 | 1,826.2 | 387.0 | 142.5 | 1,581.7 | ||||||||||||||||||
Net Equity at Completion |
$ | 765.6 | $ | 113.1 | $ | 652.5 | $ | 157.2 | $ | 56.6 | $ | 551.9 | ||||||||||||
Net Costs Incurred to Date |
$ | 2,005.3 | $ | 353.4 | $ | 1,651.9 | $ | 396.3 | $ | 176.7 | $ | 1,432.3 | ||||||||||||
Loan Draws and Other Sources to Date |
1,363.6 | 211.1 | 1,152.5 | 246.9 | 105.5 | 1,011.1 | ||||||||||||||||||
Net Equity to Date |
$ | 641.7 | $ | 142.3 | $ | 499.4 | $ | 149.4 | $ | 71.2 | $ | 421.2 | ||||||||||||
% of Total Equity |
84% | 77% | 76% | |||||||||||||||||||||
Remaining Costs |
$ | 871.5 | $ | 44.7 | $ | 826.8 | $ | 147.9 | $ | 22.4 | $ | 701.3 | ||||||||||||
Remaining Loan Draws and Other Sources (3) |
747.6 | 73.9 | 673.7 | 140.1 | 37.0 | 570.6 | ||||||||||||||||||
Remaining Equity |
$ | 123.9 | $ | (29.2 | ) | $ | 153.1 | $ | 7.8 | $ | (14.6 | ) | $ | 130.7 | ||||||||||
% of Total Equity |
16% | 23% | 24% |
(1) | This schedule includes only the seven properties listed on page 15. This does not include
costs associated with phased-in units, operating property renovations and military housing. |
||
(2) | Other Sources includes third party subsidies, tax credit proceeds and outlot land sales. |
||
(3) | Three 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 $165.9
million at 100% and at full consolidation, and $88.5 million at pro-rata consolidation of
loan commitments are at risk should these leasing hurdles not be achieved. |
17
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Debt for Projects under Development
We use nonrecourse mortgage debt for the financing of our development pipeline. We draw on these
financings to partially fund the cost incurred with the development of our real estate. As of
October 31, 2009, the detail of how much is outstanding compared to the total commitment under the
financing is as follows:
Plus | ||||||||||||||||
Full | Less | Unconsolidated | Pro-Rata | |||||||||||||
Consolidation | Noncontrolling | Investments at | Consolidation | |||||||||||||
(GAAP) | Interest | Pro-Rata | (Non-GAAP) | |||||||||||||
(in thousands) | ||||||||||||||||
Outstanding |
||||||||||||||||
Fixed |
$ | - | $ | - | $ | 96,201 | $ | 96,201 | ||||||||
Variable |
||||||||||||||||
Taxable |
1,028,706 | 273,397 | 97,426 | 852,735 | ||||||||||||
Tax-Exempt |
335,660 | 61,986 | 20,000 | 293,674 | ||||||||||||
Total outstanding on projects under development (1) |
$ | 1,364,366 | $ | 335,383 | $ | 213,627 | $ | 1,242,610 | ||||||||
Commitment |
||||||||||||||||
Fixed |
$ | - | $ | - | $ | 99,061 | $ | 99,061 | ||||||||
Variable |
||||||||||||||||
Taxable |
1,661,893 | 425,950 | 127,831 | 1,363,774 | ||||||||||||
Tax-Exempt |
335,660 | 61,986 | 20,000 | 293,674 | ||||||||||||
Total commitment |
$ | 1,997,553 | $ | 487,936 | $ | 246,892 | $ | 1,756,509 | ||||||||
(1) | Proceeds from outstanding debt of $137,349 and $138,383, at full and pro-rata
consolidation, respectively, described above is recorded as restricted cash in our
Consolidated Balance Sheet. For bonds issued in conjunction with development, the full
amount of the bonds at the beginning of construction must remain in escrow until costs
are incurred. |
Non-Recourse Mortgage Financings
Our primary capital strategy seeks to isolate the operating and financial risk at the property
level to maximize returns and reduce risk on and of our equity capital. As such, substantially all
of our operating and development properties are separately encumbered with nonrecourse mortgage
debt.
We use taxable and tax-exempt nonrecourse debt for our real estate projects. For those real estate
projects financed with taxable debt, we generally seek long-term, fixed-rate financing for those
operating projects whose loans mature within the next 12 months or are projected to open and
achieve stabilized operations during that same time frame. However, due to the limited
availability of long-term fixed rate mortgage debt based upon current market conditions, we are
attempting to extend maturities with existing lenders at current market terms. For real estate
projects financed with tax-exempt debt, we generally utilize variable-rate debt. For construction
loans, we generally pursue variable-rate financings with maturities ranging from two to five years.
We are actively working to refinance and/or extend the maturities of the nonrecourse debt that is
coming due in the next 24 months. During the nine months ended October 31, 2009, we completed the
following financings:
Plus | ||||||||||||||||
Less | Unconsolidated | |||||||||||||||
Full | Noncontrolling | Investments at | Pro-Rata | |||||||||||||
Purpose of Financing | Consolidation | Interest | Pro-Rata | Consolidation | ||||||||||||
(in thousands) | ||||||||||||||||
Refinancings |
$ | 277,841 | $ | 62,031 | $ | 31,493 | $ | 247,303 | ||||||||
Loan extensions/additional fundings |
1,095,701 | 84,464 | 143,505 | 1,154,742 | ||||||||||||
$ | 1,373,542 | $ | 146,495 | $ | 174,998 | $ | 1,402,045 | |||||||||
18
(THIS PAGE INTENTIONALLY LEFT BLANK)
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Scheduled Maturities Table: Nonrecourse Mortgage Debt (dollars in thousands)
As of October 31, 2009
As of October 31, 2009
Period Ending January 31, 2010 | Fiscal Year Ending January 31, 2011 | ||||||||||||||||||||||||||||||||||
Plus | Plus | ||||||||||||||||||||||||||||||||||
Less | Unconsolidated | Less | Unconsolidated | ||||||||||||||||||||||||||||||||
Full | Noncontrolling | Investments at | Pro-Rata | Full | Noncontrolling | Investments at | Pro-Rata | ||||||||||||||||||||||||||||
Consolidation | Interest | Pro-Rata | Consolidation | Consolidation | Interest | Pro-Rata | Consolidation | ||||||||||||||||||||||||||||
Fixed: |
|||||||||||||||||||||||||||||||||||
Fixed-rate debt |
$ | 49,126 | $ | 649 | $ | 11,052 | $ | 59,529 | $ | 221,611 | $ | 15,326 | $ | 23,148 | $ | 229,433 | |||||||||||||||||||
Weighted average rate |
6.29 | % | 6.35 | % | 6.77 | % | 6.38 | % | 7.18 | % | 6.49 | % | 7.09 | % | 7.22 | % | |||||||||||||||||||
Variable: |
|||||||||||||||||||||||||||||||||||
Variable-rate debt |
283,237 | 14,380 | 103,064 | 371,921 | 453,128 | 53,014 | 17,666 | 417,780 | |||||||||||||||||||||||||||
Weighted average rate |
2.29 | % | 2.28 | % | 1.75 | % | 2.14 | % | 3.16 | % | 3.48 | % | 2.71 | % | 3.10 | % | |||||||||||||||||||
Tax-Exempt |
- | - | 43,688 | 43,688 | - | - | - | - | |||||||||||||||||||||||||||
Weighted average rate |
- | % | - | % | 0.85 | % | 0.85 | % | - | % | - | % | - | % | - | % | |||||||||||||||||||
Total variable-rate debt |
283,237 | 14,380 | 146,752 | 415,609 | 453,128 | 53,014 | 17,666 | 417,780 | |||||||||||||||||||||||||||
Total Nonrecourse Mortgage Debt |
$ | 332,363 | $ | 15,029 | $ | 157,804 | $ | 475,138 | $ | 674,739 | $ | 68,340 | $ | 40,814 | $ | 647,213 | |||||||||||||||||||
Weighted Average Rate |
2.89 | % | 2.45 | % | 1.85 | % | 2.56 | % | 4.48 | % | 4.16 | % | 5.19 | % | 4.56 | % | |||||||||||||||||||
Fiscal Year Ending January 31, 2012 | Fiscal Year Ending January 31, 2013 | ||||||||||||||||||||||||||||||||||
Plus | Plus | ||||||||||||||||||||||||||||||||||
Less | Unconsolidated | Less | Unconsolidated | ||||||||||||||||||||||||||||||||
Full | Noncontrolling | Investments at | Pro-Rata | Full | Noncontrolling | Investments at | Pro-Rata | ||||||||||||||||||||||||||||
Consolidation | Interest | Pro-Rata | Consolidation | Consolidation | Interest | Pro-Rata | Consolidation | ||||||||||||||||||||||||||||
Fixed: |
|||||||||||||||||||||||||||||||||||
Fixed-rate debt |
$ | 354,292 | $ | 4,183 | $ | 74,734 | $ | 424,843 | $ | 330,529 | $ | 7,574 | $ | 30,059 | $ | 353,014 | |||||||||||||||||||
Weighted average rate |
7.03 | % | 5.10 | % | 6.28 | % | 6.91 | % | 5.98 | % | 6.22 | % | 6.54 | % | 6.02 | % | |||||||||||||||||||
Variable: |
|||||||||||||||||||||||||||||||||||
Variable-rate debt |
391,782 | 146,205 | 69,199 | 314,776 | 643,687 | 72,367 | 4,704 | 576,024 | |||||||||||||||||||||||||||
Weighted average rate |
3.39 | % | 3.62 | % | 3.31 | % | 3.26 | % | 5.44 | % | 3.09 | % | 2.88 | % | 5.72 | % | |||||||||||||||||||
Tax-Exempt |
132,430 | 67 | - | 132,363 | 204,616 | 62,057 | - | 142,559 | |||||||||||||||||||||||||||
Weighted average rate |
2.66 | % | 3.76 | % | - | % | 2.66 | % | 2.72 | % | 2.72 | % | - | % | 2.72 | % | |||||||||||||||||||
Total variable-rate debt |
524,212 | 146,272 | 69,199 | 447,139 | 848,303 | 134,424 | 4,704 | 718,583 | |||||||||||||||||||||||||||
Total Nonrecourse Mortgage Debt |
$ | 878,504 | $ | 150,455 | $ | 143,933 | $ | 871,982 | $ | 1,178,832 | $ | 141,998 | $ | 34,763 | $ | 1,071,597 | |||||||||||||||||||
Weighted Average Rate |
4.74 | % | 3.66 | % | 4.85 | % | 4.95 | % | 5.12 | % | 3.10 | % | 6.04 | % | 5.42 | % | |||||||||||||||||||
19
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Scheduled Maturities Table: Nonrecourse Mortgage Debt (dollars in thousands) (continued)
As of October 31, 2009
As of October 31, 2009
Fiscal Year Ending January 31, 2014 | Thereafter | ||||||||||||||||||||||||||||||||||
Plus | Plus | ||||||||||||||||||||||||||||||||||
Less | Unconsolidated | Less | Unconsolidated | ||||||||||||||||||||||||||||||||
Full | Noncontrolling | Investments at | Pro-Rata | Full | Noncontrolling | Investments at | Pro-Rata | ||||||||||||||||||||||||||||
Consolidation | Interest | Pro-Rata | Consolidation | Consolidation | Interest | Pro-Rata | Consolidation | ||||||||||||||||||||||||||||
Fixed: |
|||||||||||||||||||||||||||||||||||
Fixed-rate debt |
$ | 751,859 | $ | 14,663 | $ | 42,664 | $ | 779,860 | $ | 2,322,159 | $ | 178,713 | $ | 831,281 | $ | 2,974,727 | |||||||||||||||||||
Weighted average rate |
5.85 | % | 5.61 | % | 5.81 | % | 5.85 | % | 5.88 | % | 5.91 | % | 5.74 | % | 5.84 | % | |||||||||||||||||||
Variable: |
|||||||||||||||||||||||||||||||||||
Variable-rate debt |
46,412 | - | 1,754 | 48,166 | 652,414 | - | 54,207 | 706,621 | |||||||||||||||||||||||||||
Weighted average rate |
6.05 | % | - | % | 2.42 | % | 5.92 | % | 6.31 | % | - | % | 2.66 | % | 6.03 | % | |||||||||||||||||||
Tax-Exempt |
91,565 | 77 | - | 91,488 | 534,776 | 21,964 | 157,357 | 670,169 | |||||||||||||||||||||||||||
Weighted average rate |
1.55 | % | 3.74 | % | - | % | 1.55 | % | 1.53 | % | 2.65 | % | 0.99 | % | 1.37 | % | |||||||||||||||||||
Total variable-rate debt |
137,977 | 77 | 1,754 | 139,654 | 1,187,190 | 21,964 | 211,564 | 1,376,790 | |||||||||||||||||||||||||||
Total Nonrecourse Mortgage Debt |
$ | 889,836 | $ | 14,740 | $ | 44,418 | $ | 919,514 | $ | 3,509,349 | $ | 200,677 | $ | 1,042,845 | $ | 4,351,517 | |||||||||||||||||||
Weighted Average Rate |
5.42 | % | 5.60 | % | 5.67 | % | 5.43 | % | 5.30 | % | 5.55 | % | 4.86 | % | 5.18 | % | |||||||||||||||||||
Total | |||||||||||||||||||||||||||||||||||
Plus | |||||||||||||||||||||||||||||||||||
Less | Unconsolidated | ||||||||||||||||||||||||||||||||||
Full | Noncontrolling | Investments at | Pro-Rata | ||||||||||||||||||||||||||||||||
Consolidation | Interest | Pro-Rata | Consolidation | ||||||||||||||||||||||||||||||||
Fixed: |
|||||||||||||||||||||||||||||||||||
Fixed-rate debt |
$ | 4,029,576 | $ | 221,108 | $ | 1,012,938 | $ | 4,821,406 | |||||||||||||||||||||||||||
Weighted average rate |
6.06 | % | 5.92 | % | 5.84 | % | 6.02 | % | |||||||||||||||||||||||||||
Variable: |
|||||||||||||||||||||||||||||||||||
Variable-rate debt |
2,470,660 | 285,966 | 250,594 | 2,435,288 | |||||||||||||||||||||||||||||||
Weighted average rate |
4.58 | % | 3.39 | % | 2.47 | % | 4.50 | % | |||||||||||||||||||||||||||
Tax-Exempt |
963,387 | 84,165 | 201,045 | 1,080,267 | |||||||||||||||||||||||||||||||
Weighted average rate |
1.94 | % | 2.70 | % | 0.96 | % | 1.70 | % | |||||||||||||||||||||||||||
Total variable-rate debt |
3,434,047 | 370,131 | 451,639 | 3,515,555 | |||||||||||||||||||||||||||||||
Total Nonrecourse Mortgage Debt |
$ | 7,463,623 | $ | 591,239 | $ | 1,464,577 | $ | 8,336,961 | |||||||||||||||||||||||||||
Weighted Average Rate |
5.04 | % | 4.24 | % | 4.60 | % | 5.02 | % | |||||||||||||||||||||||||||
20
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
The following tables provide detail of our maturities for 2009, 2010 and 2011 as of October 31,
2009, as well as the level of exposure to various lending sources, operating/development
designation and product type:
Upcoming Maturities Summary (dollars in thousands)
As of October 31, 2009
As of October 31, 2009
Less | Plus | |||||||||||||||||||||||||
Unconsolidated | Full | Less | Unconsolidated | Pro-Rata | ||||||||||||||||||||||
Investments | Consolidation | Noncontrolling | Investments | Consolidation | ||||||||||||||||||||||
Year Ending January 31, 2010 | 100% | at 100% | (GAAP) | Interest | at Pro Rata | (Non-GAAP) | ||||||||||||||||||||
Total Maturities (Nonrecourse Mortgage Debt) |
$ | 653,403 | $ | 321,040 | $ | 332,363 | $ | 15,029 | $ | 157,804 | $ | 475,138 | ||||||||||||||
Less: Scheduled Payments |
29,084 | 6,804 | 22,280 | 2,616 | 3,442 | 23,106 | ||||||||||||||||||||
Net Maturities |
624,319 | 314,236 | 310,083 | 12,413 | 154,362 | 452,032 | ||||||||||||||||||||
Add: Notes Payable |
9,471 | 7,006 | 2,465 | 2,059 | 3,222 | 3,628 | ||||||||||||||||||||
Total Maturities (including Notes Payable) |
633,790 | 321,242 | 312,548 | 14,472 | 157,584 | 455,660 | ||||||||||||||||||||
Closed Loans / To be Fully Amortized (3) |
204,723 | 120,178 | 84,545 | - | 61,380 | 145,925 | ||||||||||||||||||||
Committed Deals / Automatic Extensions (3) |
19,131 | 7,375 | 11,756 | - | 3,687 | 15,443 | ||||||||||||||||||||
Extension Available (1) (3) |
350,406 | 165,422 | 184,984 | 12,412 | 82,711 | 255,283 | ||||||||||||||||||||
Subtotal |
574,260 | 292,975 | 281,285 | 12,412 | 147,778 | 416,651 | ||||||||||||||||||||
Remaining to Finance |
$ | 59,530 | $ | 28,267 | $ | 31,263 | $ | 2,060 | $ | 9,806 | $ | 39,009 | ||||||||||||||
Less | Plus | |||||||||||||||||||||||||
Unconsolidated | Full | Less | Unconsolidated | Pro-Rata | ||||||||||||||||||||||
Investments | Consolidation | Noncontrolling | Investments | Consolidation | ||||||||||||||||||||||
Year Ending January 31, 2011 | 100% | at 100% | (GAAP) | Interest | at Pro Rata | (Non-GAAP) | ||||||||||||||||||||
Total Maturities (Nonrecourse Mortgage Debt) |
$ | 761,890 | $ | 87,151 | $ | 674,739 | $ | 68,340 | $ | 40,814 | $ | 647,213 | ||||||||||||||
Less: Scheduled Payments |
104,172 | 30,151 | 74,021 | 2,557 | 15,530 | 86,994 | ||||||||||||||||||||
Add: Corporate Debt (2) |
37,016 | - | 37,016 | - | - | 37,016 | ||||||||||||||||||||
Net Maturities |
694,734 | 57,000 | 637,734 | 65,783 | 25,284 | 597,235 | ||||||||||||||||||||
Add: Notes Payable |
56,285 | 54,154 | 2,131 | 41 | 12,511 | 14,601 | ||||||||||||||||||||
Total Maturities (including Notes Payable) |
751,019 | 111,154 | 639,865 | 65,824 | 37,795 | 611,836 | ||||||||||||||||||||
Closed Loans / To be Fully Amortized (3) |
332 | 332 | - | - | 160 | 160 | ||||||||||||||||||||
Committed Deals / Automatic Extensions (3) |
123,418 | - | 123,418 | 480 | - | 122,938 | ||||||||||||||||||||
Extension Available (1) (3) |
237,235 | 30,692 | 206,543 | 52,857 | 13,543 | 167,229 | ||||||||||||||||||||
Subtotal |
360,985 | 31,024 | 329,961 | 53,337 | 13,703 | 290,327 | ||||||||||||||||||||
Remaining to Finance |
$ | 390,034 | $ | 80,130 | $ | 309,904 | $ | 12,487 | $ | 24,092 | $ | 321,509 | ||||||||||||||
Less | Plus | |||||||||||||||||||||||||
Unconsolidated | Full | Less | Unconsolidated | Pro-Rata | ||||||||||||||||||||||
Investments | Consolidation | Noncontrolling | Investments | Consolidation | ||||||||||||||||||||||
Year Ending January 31, 2012 | 100% | at 100% | (GAAP) | Interest | at Pro Rata | (Non-GAAP) | ||||||||||||||||||||
Total Maturities (Nonrecourse Mortgage Debt) |
$ | 1,175,475 | $ | 296,971 | $ | 878,504 | $ | 150,455 | $ | 143,933 | $ | 871,982 | ||||||||||||||
Less: Scheduled Payments |
95,563 | 23,721 | 71,842 | 2,850 | 12,375 | 81,367 | ||||||||||||||||||||
Add: Corporate Debt (4) |
105,067 | - | 105,067 | - | - | 105,067 | ||||||||||||||||||||
Net Maturities |
1,184,979 | 273,250 | 911,729 | 147,605 | 131,558 | 895,682 | ||||||||||||||||||||
Add: Notes Payable |
63,072 | 61,546 | 1,526 | 43 | 13,889 | 15,372 | ||||||||||||||||||||
Total Maturities (including Notes Payable) |
1,248,051 | 334,796 | 913,255 | 147,648 | 145,447 | 911,054 | ||||||||||||||||||||
Closed Loans / To be Fully Amortized (3) |
233 | 233 | - | - | 116 | 116 | ||||||||||||||||||||
Committed Deals / Automatic Extensions (3) |
50,297 | 50,297 | - | - | 25,148 | 25,148 | ||||||||||||||||||||
Extension Available (1) (3) |
428,490 | 29,977 | 398,513 | 88,222 | 14,988 | 325,279 | ||||||||||||||||||||
Subtotal |
479,020 | 80,507 | 398,513 | 88,222 | 40,252 | 350,543 | ||||||||||||||||||||
Remaining to Finance |
$ | 769,031 | $ | 254,289 | $ | 514,742 | $ | 59,426 | $ | 105,195 | $ | 560,511 | ||||||||||||||
(1) | Includes loans that have extension options available, all of which require some predefined
condition in order to qualify for the extension, such as, meeting or exceeding leasing
hurdles, loan to value ratios or debt service coverage requirements. We cannot give assurance
that the defined hurdles or milestones will be achieved to qualify for these extensions. |
||
(2) | The credit facility amount of $37,016 outstanding as of October 31, 2009 has a maximum
commitment of $750,000. The remaining availability of $712,984 is further reduced by $66,814
in outstanding letters of credit as of October 31, 2009. (We have reached an agreement with
our bank group on the principal terms of a new, two-year, revolving credit facility with a
maximum commitment of $500,000 that is expected to close by December 31, 2009.) |
||
(3) | Reflects activity through December 8, 2009. |
||
(4) | Outstanding principal amount of the puttable equity-linked senior notes due 2011. |
21
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Net Maturities at 100%, by Operations and Development Projects (dollars in thousands)
As of October 31, 2009
As of October 31, 2009
Year Ending January 31, | 2010 | 2011 | 2012 | Total by Type |
Percent | Max | Median | |||||||||||||||||||||||
Operating |
$ | 448,961 | $ | 560,751 | $ | 627,850 | $ | 1,637,562 | 65% | $ | 131,984 | $ | 15,620 | |||||||||||||||||
Development/ Land |
9,936 | 68,397 | 246,369 | 324,702 | 13% | 156,891 | 5,032 | |||||||||||||||||||||||
Under Construction |
165,422 | 65,586 | 310,760 | 541,768 | 22% | 165,422 | 101,293 | |||||||||||||||||||||||
Total By Maturity |
$ | 624,319 | $ | 694,734 | $ | 1,184,979 | $ | 2,504,032 | 100% | $ | 165,422 | $ | 12,403 | |||||||||||||||||
Net Maturities at 100%, by Lender Type (dollars in thousands)
As of October 31, 2009
As of October 31, 2009
Year Ending January 31, | 2010 | 2011 | 2012 | Total | Percent | Max | Median | |||||||||||||||||||||||
Conventional Lenders |
$ | 505,082 | $ | 315,134 | $ | 670,794 | $ | 1,491,010 | 59% | $ | 165,422 | $ | 11,270 | |||||||||||||||||
Life Insurance |
4,179 | 105,177 | 305,027 | 414,383 | 17% | 97,490 | 45,858 | |||||||||||||||||||||||
Fannie/Freddie |
96,128 | 28,377 | 65,700 | 190,205 | 8% | 80,000 | 10,895 | |||||||||||||||||||||||
State and Local Government |
1,774 | 11,178 | 8,839 | 21,791 | 1% | 10,903 | 1,190 | |||||||||||||||||||||||
Securitized |
17,156 | 234,868 | 134,619 | 386,643 | 15% | 105,067 | 42,195 | |||||||||||||||||||||||
Total By Maturity |
$ | 624,319 | $ | 694,734 | $ | 1,184,979 | $ | 2,504,032 | 100% | $ | 165,422 | $ | 12,403 | |||||||||||||||||
Net Maturities at 100%, by Product Type (dollars in thousands)
As of October 31, 2009
As of October 31, 2009
Year Ending January 31, | 2010 | 2011 | 2012 | Total | Percent | Max | Median | |||||||||||||||||||||||
Apartments |
$ | 96,128 | $ | 28,377 | $ | 289,067 | $ | 413,572 | 17% | $ | 137,000 | $ | 11,325 | |||||||||||||||||
Retail |
425,271 | 318,278 | 188,819 | 932,368 | 37% | 165,422 | 15,078 | |||||||||||||||||||||||
Office |
94,758 | 184,230 | 355,656 | 634,644 | 25% | 160,403 | 17,550 | |||||||||||||||||||||||
Hotel |
- | 63,858 | - | 63,858 | 3% | 45,858 | 71,042 | |||||||||||||||||||||||
Land |
8,162 | 62,975 | 246,370 | 317,507 | 12% | 156,891 | 5,138 | |||||||||||||||||||||||
Corporate |
- | 37,016 | 105,067 | 142,083 | 6% | 105,067 | 71,042 | |||||||||||||||||||||||
Total By Maturity |
$ | 624,319 | $ | 694,734 | $ | 1,184,979 | $ | 2,504,032 | 100% | $ | 165,422 | $ | 12,403 | |||||||||||||||||
22
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Net Maturities by Operations and Development Projects (dollars in thousands)
As of October 31, 2009
As of October 31, 2009
Less Unconsolidated | Full Consolidation | |||||||||||||||||||||||||||||||||||||||||||||||||
At 100% | Investments at 100% | (GAAP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ending January 31, | 2010 | 2011 | 2012 | Total | 2010 | 2011 | 2012 | Total | 2010 | 2011 | 2012 | Total | ||||||||||||||||||||||||||||||||||||||
Operating |
$ | 448,961 | $ | 560,751 | $ | 627,850 | $ | 1,637,562 | $ | 147,039 | $ | 49,675 | $ | 157,014 | $ | 353,728 | $ | 301,922 | $ | 511,076 | $ | 470,836 | $ | 1,283,834 | ||||||||||||||||||||||||||
Count |
15 | 22 | 22 | 59 | 8 | 6 | 9 | 23 | 7 | 16 | 13 | 36 | ||||||||||||||||||||||||||||||||||||||
Development/ Land (1) |
9,936 | 68,397 | 246,369 | 324,702 | 1,775 | 7,325 | 102,879 | 111,979 | 8,161 | 61,072 | 143,490 | 212,723 | ||||||||||||||||||||||||||||||||||||||
Count |
6 | 5 | 7 | 18 | 1 | 1 | 5 | 7 | 5 | 4 | 2 | 11 | ||||||||||||||||||||||||||||||||||||||
Under Construction (2) |
165,422 | 65,586 | 310,760 | 541,768 | 165,422 | - | 13,357 | 178,779 | - | 65,586 | 297,403 | 362,989 | ||||||||||||||||||||||||||||||||||||||
Count |
1 | 1 | 4 | 6 | 1 | - | 1 | 2 | - | 1 | 3 | 4 | ||||||||||||||||||||||||||||||||||||||
Total By Maturity |
$ | 624,319 | $ | 694,734 | $ | 1,184,979 | $ | 2,504,032 | $ | 314,236 | $ | 57,000 | $ | 273,250 | $ | 644,486 | $ | 310,083 | $ | 637,734 | $ | 911,729 | $ | 1,859,546 | ||||||||||||||||||||||||||
Total Count |
22 | 28 | 33 | 83 | 10 | 7 | 15 | 32 | 12 | 21 | 18 | 51 | ||||||||||||||||||||||||||||||||||||||
(1) | $324,702 and $212,723 outstanding at 100% and Full Consolidation, respectively, have maximum commitments available of $366,591 at 100% and $227,928 at Full Consolidation. | ||
(2) | $541,768 and $362,989 outstanding at 100% and Full Consolidation, respectively, have maximum commitments available of $800,496 at 100% and $560,900 at Full Consolidation. |
Net Maturities by Lender Type (dollars in thousands)
As of October 31, 2009
As of October 31, 2009
Less Unconsolidated | Full Consolidation | |||||||||||||||||||||||||||||||||||||||||||||||||
At 100% | Investments at 100% | (GAAP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ending January 31, | 2010 | 2011 | 2012 | Total | 2010 | 2011 | 2012 | Total | 2010 | 2011 | 2012 | Total | ||||||||||||||||||||||||||||||||||||||
Conventional Lenders (1) |
$ | 505,082 | $ | 315,134 | $ | 670,794 | $ | 1,491,010 | $ | 223,910 | $ | 30,749 | $ | 145,266 | $ | 399,925 | $ | 281,172 | $ | 284,385 | $ | 525,528 | $ | 1,091,085 | ||||||||||||||||||||||||||
Count |
16 | 17 | 16 | 49 | 6 | 4 | 8 | 18 | 10 | 13 | 8 | 31 | ||||||||||||||||||||||||||||||||||||||
Life Insurance (2) |
4,179 | 105,177 | 305,027 | 414,383 | 4,179 | - | 86,594 | 90,773 | - | 105,177 | 218,433 | 323,610 | ||||||||||||||||||||||||||||||||||||||
Count |
1 | 2 | 6 | 9 | 1 | - | 2 | 3 | - | 2 | 4 | 6 | ||||||||||||||||||||||||||||||||||||||
Fannie/Freddie |
96,128 | 28,377 | 65,700 | 190,205 | 84,373 | 25,975 | 41,157 | 151,505 | 11,755 | 2,402 | 24,543 | 38,700 | ||||||||||||||||||||||||||||||||||||||
Count |
3 | 3 | 5 | 11 | 2 | 2 | 4 | 8 | 1 | 1 | 1 | 3 | ||||||||||||||||||||||||||||||||||||||
State and Local Government |
1,774 | 11,178 | 8,839 | 21,791 | 1,774 | 276 | 233 | 2,283 | - | 10,902 | 8,606 | 19,508 | ||||||||||||||||||||||||||||||||||||||
Count |
1 | 2 | 3 | 6 | 1 | 1 | 1 | 3 | - | 1 | 2 | 3 | ||||||||||||||||||||||||||||||||||||||
Securitized |
17,156 | 234,868 | 134,619 | 386,643 | - | - | - | - | 17,156 | 234,868 | 134,619 | 386,643 | ||||||||||||||||||||||||||||||||||||||
Count |
1 | 4 | 3 | 8 | - | - | - | - | 1 | 4 | 3 | 8 | ||||||||||||||||||||||||||||||||||||||
Total By Maturity |
$ | 624,319 | $ | 694,734 | $ | 1,184,979 | $ | 2,504,032 | $ | 314,236 | $ | 57,000 | $ | 273,250 | $ | 644,486 | $ | 310,083 | $ | 637,734 | $ | 911,729 | $ | 1,859,546 | ||||||||||||||||||||||||||
Total Count |
22 | 28 | 33 | 83 | 10 | 7 | 15 | 32 | 12 | 21 | 18 | 51 | ||||||||||||||||||||||||||||||||||||||
(1) | Of the $1,491,010 at 100% and $1,091,085 at Full Consolidation, $53,815 and $22,900 at 100% and Full Consolidation, respectively, can be securitized by the Lender at the Lenders options without the Companys knowledge. As of October 31, 2009, it is the Companys belief that loans described are currently not securitized. | ||
(2) | Of the $414,383 at 100% and $323,610 at Full Consolidation, $124,100 and $46,137 at 100% and Full Consolidation, respectively, can be securitized by the Lender at the Lenders options without the Companys knowledge. As of October 31, 2009, it is the Companys belief that loans described are currently not securitized. |
23
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Net Maturities by Product Type (dollars in thousands)
As of October 31, 2009
As of October 31, 2009
Less Unconsolidated | Full Consolidation | |||||||||||||||||||||||||||||||||||||||||||||||||
At 100% | Investments at 100% | (GAAP) | ||||||||||||||||||||||||||||||||||||||||||||||||
Year Ending January 31, | 2010 | 2011 | 2012 | Total | 2010 | 2011 | 2012 | Total | 2010 | 2011 | 2012 | Total | ||||||||||||||||||||||||||||||||||||||
Apartments |
$ | 96,128 | $ | 28,377 | $ | 289,067 | $ | 413,572 | $ | 84,372 | $ | 25,975 | $ | 79,089 | $ | 189,436 | $ | 11,756 | $ | 2,402 | $ | 209,978 | $ | 224,136 | ||||||||||||||||||||||||||
Count |
3 | 3 | 12 | 18 | 2 | 2 | 7 | 11 | 1 | 1 | 5 | 7 | ||||||||||||||||||||||||||||||||||||||
Retail |
425,271 | 318,278 | 188,819 | 932,368 | 188,105 | 6,092 | - | 194,197 | 237,166 | 312,186 | 188,819 | 738,171 | ||||||||||||||||||||||||||||||||||||||
Count |
9 | 11 | 4 | 24 | 4 | 2 | - | 6 | 5 | 9 | 4 | 18 | ||||||||||||||||||||||||||||||||||||||
Office |
94,758 | 184,230 | 355,656 | 634,644 | 41,759 | 17,608 | 91,283 | 150,650 | 52,999 | 166,622 | 264,373 | 483,994 | ||||||||||||||||||||||||||||||||||||||
Count |
5 | 6 | 9 | 20 | 4 | 2 | 3 | 9 | 1 | 4 | 6 | 11 | ||||||||||||||||||||||||||||||||||||||
Hotel |
- | 63,858 | - | 63,858 | - | - | - | - | - | 63,858 | - | 63,858 | ||||||||||||||||||||||||||||||||||||||
Count |
- | 2 | - | 2 | - | - | - | - | - | 2 | - | 2 | ||||||||||||||||||||||||||||||||||||||
Land |
8,162 | 62,975 | 246,370 | 317,507 | - | 7,325 | 102,878 | 110,203 | 8,162 | 55,650 | 143,492 | 207,304 | ||||||||||||||||||||||||||||||||||||||
Count |
5 | 5 | 7 | 17 | - | 1 | 5 | 6 | 5 | 4 | 2 | 11 | ||||||||||||||||||||||||||||||||||||||
Corporate |
- | 37,016 | 105,067 | 142,083 | - | - | - | - | - | 37,016 | 105,067 | 142,083 | ||||||||||||||||||||||||||||||||||||||
Count |
- | 1 | 1 | 2 | - | - | - | - | - | 1 | 1 | 2 | ||||||||||||||||||||||||||||||||||||||
Total By Maturity |
$ | 624,319 | $ | 694,734 | $ | 1,184,979 | $ | 2,504,032 | $ | 314,236 | $ | 57,000 | $ | 273,250 | $ | 644,486 | $ | 310,083 | $ | 637,734 | $ | 911,729 | $ | 1,859,546 | ||||||||||||||||||||||||||
Total Count |
22 | 28 | 33 | 83 | 10 | 7 | 15 | 32 | 12 | 21 | 18 | 51 | ||||||||||||||||||||||||||||||||||||||
24
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
As discussed earlier, we present certain financial amounts under the pro-rata consolidation method
(a non-GAAP measure). This information is useful to our investors because we believe that it more
accurately reflects the manner in which we operate our business. This is because, in line with
industry practice, we have a large number of investments in which our economic ownership is less
than 100% as a means of procuring opportunities and sharing risk. The tables below present amounts
for both full consolidation, a GAAP measure, and pro-rata consolidation, providing a reconciliation
of the difference between the two methods. Under the pro-rata consolidation method, we present our
partnership investments proportionate to our share of ownership for each line item of our
consolidated financial statements. Under full consolidation, partnership assets and liabilities are
reported as consolidated at 100% if deemed to be under our control or if we are deemed to be the
primary beneficiary for our investments in a VIE. Partnership assets and liabilities are reported
on the equity or cost method of accounting if we do not have control, or, in the case of
investments in VIEs, we are not deemed the primary beneficiary.
Consolidated Balance Sheet Information October 31, 2009 (Unaudited)
Plus | ||||||||||||||||
Full | Less | Unconsolidated | Pro-Rata | |||||||||||||
Consolidation | Noncontrolling | Investments at | Consolidation | |||||||||||||
(GAAP) | Interest | Pro-Rata | (Non-GAAP) | |||||||||||||
(in thousands) | ||||||||||||||||
Assets |
||||||||||||||||
Real Estate |
||||||||||||||||
Completed rental properties |
||||||||||||||||
Residential |
$ | 1,652,884 | $ | 41,242 | $ | 820,346 | $ | 2,431,988 | ||||||||
Commercial |
||||||||||||||||
Retail Centers |
3,332,398 | 108,578 | 423,165 | 3,646,985 | ||||||||||||
Office and other buildings |
3,345,160 | 129,330 | 208,584 | 3,424,414 | ||||||||||||
Corporate and other equipment |
9,736 | - | 1 | 9,737 | ||||||||||||
Total Completed rental properties |
8,340,178 | 279,150 | 1,452,096 | 9,513,124 | ||||||||||||
Projects under development |
||||||||||||||||
Under construction |
||||||||||||||||
Residential |
809,891 | 164,598 | 22,427 | 667,720 | ||||||||||||
Commercial |
||||||||||||||||
Retail Centers |
772,672 | 71,077 | 246,184 | 947,779 | ||||||||||||
Office and other buildings |
256,391 | 121,095 | 5,996 | 141,292 | ||||||||||||
Subtotal Under construction |
1,838,954 | 356,770 | 274,607 | 1,756,791 | ||||||||||||
Under development |
||||||||||||||||
Residential (1) |
115,379 | - | 6,118 | 121,497 | ||||||||||||
Commercial |
||||||||||||||||
Retail Centers |
34,289 | 101 | 10,866 | 45,054 | ||||||||||||
Office and other buildings (1) |
705,090 | 239,111 | 57,808 | 523,787 | ||||||||||||
Subtotal Under development |
854,758 | 239,212 | 74,792 | 690,338 | ||||||||||||
Total Projects under development |
2,693,712 | 595,982 | 349,399 | 2,447,129 | ||||||||||||
Land held for development or sale |
221,059 | 22,348 | 117,477 | 316,188 | ||||||||||||
Total Real Estate |
11,254,949 | 897,480 | 1,918,972 | 12,276,441 | ||||||||||||
Less accumulated depreciation |
(1,545,892 | ) | (56,216 | ) | (358,486 | ) | (1,848,162 | ) | ||||||||
Real Estate, net |
9,709,057 | 841,264 | 1,560,486 | 10,428,279 | ||||||||||||
Cash and equivalents |
321,804 | 6,816 | 18,121 | 333,109 | ||||||||||||
Restricted cash |
363,098 | 47,575 | 92,389 | 407,912 | ||||||||||||
Notes and accounts receivable, net |
371,158 | 16,051 | 61,765 | 416,872 | ||||||||||||
Investments in and advances to affiliates |
239,936 | (114,280 | ) | (55,816 | ) | 298,400 | ||||||||||
Other assets |
888,564 | 69,780 | 72,370 | 891,154 | ||||||||||||
Total Assets |
$ | 11,893,617 | $ | 867,206 | $ | 1,749,315 | $ | 12,775,726 | ||||||||
25
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Consolidated Balance Sheet Information October 31, 2009 (Unaudited)
Plus | ||||||||||||||||
Full | Less | Unconsolidated | Pro-Rata | |||||||||||||
Consolidation | Noncontrolling | Investments at | Consolidation | |||||||||||||
(GAAP) | Interest | Pro-Rata | (Non-GAAP) | |||||||||||||
(in thousands) | ||||||||||||||||
Liabilities and Equity |
||||||||||||||||
Liabilities |
||||||||||||||||
Mortgage debt, nonrecourse |
||||||||||||||||
Completed rental properties |
||||||||||||||||
Residential |
$ | 1,033,072 | $ | 33,742 | $ | 616,600 | $ | 1,615,930 | ||||||||
Commercial |
||||||||||||||||
Retail Centers |
2,519,861 | 117,963 | 435,128 | 2,837,026 | ||||||||||||
Office and other buildings |
2,479,891 | 99,694 | 148,092 | 2,528,289 | ||||||||||||
Total Completed rental properties |
6,032,824 | 251,399 | 1,199,820 | 6,981,245 | ||||||||||||
Projects under development |
||||||||||||||||
Under construction |
||||||||||||||||
Residential |
578,950 | 134,353 | 90,206 | 534,803 | ||||||||||||
Commercial |
||||||||||||||||
Retail Centers |
425,857 | 32,793 | 116,332 | 509,396 | ||||||||||||
Office and other buildings |
160,403 | 88,222 | - | 72,181 | ||||||||||||
Subtotal Under construction |
1,165,210 | 255,368 | 206,538 | 1,116,380 | ||||||||||||
Under development |
||||||||||||||||
Residential (1) |
- | - | - | - | ||||||||||||
Commercial |
||||||||||||||||
Retail Centers |
- | - | - | - | ||||||||||||
Office and other buildings (1) |
199,156 | 80,015 | 7,089 | 126,230 | ||||||||||||
Subtotal Under development |
199,156 | 80,015 | 7,089 | 126,230 | ||||||||||||
Total Projects under development |
1,364,366 | 335,383 | 213,627 | 1,242,610 | ||||||||||||
Land held for development or sale |
66,433 | 4,457 | 51,130 | 113,106 | ||||||||||||
Total Mortgage debt, nonrecourse |
7,463,623 | 591,239 | 1,464,577 | 8,336,961 | ||||||||||||
Notes payable |
181,374 | 13,154 | 98,426 | 266,646 | ||||||||||||
Bank revolving credit facility |
37,016 | - | - | 37,016 | ||||||||||||
Senior and subordinated debt |
1,075,555 | - | - | 1,075,555 | ||||||||||||
Accounts payable and accrued expenses |
1,199,171 | 90,093 | 187,145 | 1,296,223 | ||||||||||||
Deferred income taxes |
442,863 | - | - | 442,863 | ||||||||||||
Total Liabilities |
10,399,602 | 694,486 | 1,750,148 | 11,455,264 | ||||||||||||
Equity |
||||||||||||||||
Shareholders Equity |
||||||||||||||||
Shareholders equity before accumulated other comprehensive loss |
1,225,829 | - | - | 1,225,829 | ||||||||||||
Accumulated other comprehensive loss |
(91,388 | ) | - | - | (91,388 | ) | ||||||||||
Total Shareholders Equity |
1,134,441 | - | - | 1,134,441 | ||||||||||||
Noncontrolling interest |
359,574 | 172,720 | (833 | ) | 186,021 | |||||||||||
Total Equity |
1,494,015 | 172,720 | (833 | ) | 1,320,462 | |||||||||||
Total Liabilities and Equity |
$ | 11,893,617 | $ | 867,206 | $ | 1,749,315 | $ | 12,775,726 | ||||||||
(1) | The mixed-use Atlantic Yards project formerly included in Residential is currently presented in Office and other buildings. |
26
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Consolidated Balance Sheet Information January 31, 2009 (Unaudited)
Full | Plus | Pro-Rata | ||||||||||||||
Consolidation | Less | Unconsolidated | Consolidation | |||||||||||||
(GAAP) | Noncontrolling | Investments at | (Non-GAAP) | |||||||||||||
(As Adjusted) | Interest | Pro-Rata | (As Adjusted) | |||||||||||||
(in thousands) | ||||||||||||||||
Assets |
||||||||||||||||
Real Estate |
||||||||||||||||
Completed rental properties |
||||||||||||||||
Residential |
$ | 1,701,737 | $ | 37,677 | $ | 781,758 | $ | 2,445,818 | ||||||||
Commercial |
||||||||||||||||
Retail Centers |
3,242,908 | 84,003 | 418,820 | 3,577,725 | ||||||||||||
Office and other buildings |
3,256,301 | 116,427 | 190,506 | 3,330,380 | ||||||||||||
Corporate and other equipment |
11,198 | - | 1 | 11,199 | ||||||||||||
Total Completed rental properties |
8,212,144 | 238,107 | 1,391,085 | 9,365,122 | ||||||||||||
Projects under development |
||||||||||||||||
Under construction |
||||||||||||||||
Residential |
512,859 | 110,944 | 53,129 | 455,044 | ||||||||||||
Commercial |
||||||||||||||||
Retail Centers |
653,508 | 43,721 | 203,931 | 813,718 | ||||||||||||
Office and other buildings |
210,569 | 77,144 | 24,704 | 158,129 | ||||||||||||
Subtotal Under construction |
1,376,936 | 231,809 | 281,764 | 1,426,891 | ||||||||||||
Under development |
||||||||||||||||
Residential (1) |
144,989 | - | 8,133 | 153,122 | ||||||||||||
Commercial |
||||||||||||||||
Retail Centers |
37,712 | 101 | 10,825 | 48,436 | ||||||||||||
Office and other buildings (1) |
681,579 | 235,722 | 53,921 | 499,778 | ||||||||||||
Subtotal Under development |
864,280 | 235,823 | 72,879 | 701,336 | ||||||||||||
Total Projects under development |
2,241,216 | 467,632 | 354,643 | 2,128,227 | ||||||||||||
Land held for development or sale |
195,213 | 19,629 | 122,377 | 297,961 | ||||||||||||
Total Real Estate |
10,648,573 | 725,368 | 1,868,105 | 11,791,310 | ||||||||||||
Less accumulated depreciation |
(1,419,271 | ) | (47,555 | ) | (332,619 | ) | (1,704,335 | ) | ||||||||
Real Estate, net |
9,229,302 | 677,813 | 1,535,486 | 10,086,975 | ||||||||||||
Cash and equivalents |
267,305 | 5,111 | 11,858 | 274,052 | ||||||||||||
Restricted cash |
291,224 | 31,529 | 115,863 | 375,558 | ||||||||||||
Notes and accounts receivable, net |
427,410 | 14,767 | 65,488 | 478,131 | ||||||||||||
Investments in and advances to affiliates |
228,995 | (95,740 | ) | (60,221 | ) | 264,514 | ||||||||||
Other assets |
936,271 | 63,022 | 77,733 | 950,982 | ||||||||||||
Total Assets |
$ | 11,380,507 | $ | 696,502 | $ | 1,746,207 | $ | 12,430,212 | ||||||||
27
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Consolidated Balance Sheet Information January 31, 2009 (Unaudited)
Full | Plus | Pro-Rata | ||||||||||||||
Consolidation | Less | Unconsolidated | Consolidation | |||||||||||||
(GAAP) | Noncontrolling | Investments at | (Non-GAAP) | |||||||||||||
(As Adjusted) | Interest | Pro-Rata | (As Adjusted) | |||||||||||||
(in thousands) | ||||||||||||||||
Liabilities and Equity |
||||||||||||||||
Liabilities |
||||||||||||||||
Mortgage debt, nonrecourse |
||||||||||||||||
Completed rental properties |
||||||||||||||||
Residential |
$ | 1,078,486 | $ | 30,524 | $ | 618,829 | $ | 1,666,791 | ||||||||
Commercial |
||||||||||||||||
Retail Centers |
2,532,986 | 83,953 | 437,451 | 2,886,484 | ||||||||||||
Office and other buildings |
2,474,846 | 100,560 | 116,964 | 2,491,250 | ||||||||||||
Total Completed rental properties |
6,086,318 | 215,037 | 1,173,244 | 7,044,525 | ||||||||||||
Projects under development |
||||||||||||||||
Under construction |
||||||||||||||||
Residential |
264,250 | 61,986 | 103,574 | 305,838 | ||||||||||||
Commercial |
||||||||||||||||
Retail Centers |
337,218 | 22,446 | 99,684 | 414,456 | ||||||||||||
Office and other buildings |
72,608 | 36,304 | 15,623 | 51,927 | ||||||||||||
Subtotal Under construction |
674,076 | 120,736 | 218,881 | 772,221 | ||||||||||||
Under development |
||||||||||||||||
Residential (1) |
- | - | - | - | ||||||||||||
Commercial |
||||||||||||||||
Retail Centers |
- | - | - | - | ||||||||||||
Office and other buildings (1) |
227,217 | 91,727 | 22,398 | 157,888 | ||||||||||||
Subtotal Under development |
227,217 | 91,727 | 22,398 | 157,888 | ||||||||||||
Total Projects under development |
901,293 | 212,463 | 241,279 | 930,109 | ||||||||||||
Land held for development or sale |
90,779 | 11,519 | 60,491 | 139,751 | ||||||||||||
Total Mortgage debt, nonrecourse |
7,078,390 | 439,019 | 1,475,014 | 8,114,385 | ||||||||||||
Notes payable |
181,919 | 12,794 | 90,013 | 259,138 | ||||||||||||
Bank revolving credit facility |
365,500 | - | - | 365,500 | ||||||||||||
Senior and subordinated debt |
846,064 | - | - | 846,064 | ||||||||||||
Accounts payable and accrued expenses |
1,277,199 | 93,663 | 181,961 | 1,365,497 | ||||||||||||
Deferred income taxes |
455,336 | - | - | 455,336 | ||||||||||||
Total Liabilities |
10,204,408 | 545,476 | 1,746,988 | 11,405,920 | ||||||||||||
Equity |
||||||||||||||||
Shareholders Equity |
||||||||||||||||
Shareholders equity before accumulated other comprehensive loss |
945,792 | - | - | 945,792 | ||||||||||||
Accumulated other comprehensive loss |
(107,521 | ) | - | - | (107,521 | ) | ||||||||||
Total Shareholders Equity |
838,271 | - | - | 838,271 | ||||||||||||
Noncontrolling interest |
337,828 | 151,026 | (781 | ) | 186,021 | |||||||||||
Total Equity |
1,176,099 | 151,026 | (781 | ) | 1,024,292 | |||||||||||
Total Liabilities and Equity |
$ | 11,380,507 | $ | 696,502 | $ | 1,746,207 | $ | 12,430,212 | ||||||||
(1) | The mixed-use Atlantic Yards project has been reclassified from Residential to Office and other buildings to conform to the current years presentation. |
28
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Consolidated Earnings Information Three Months Ended October 31, 2009 (Unaudited)
Plus | ||||||||||||||||||||
Full | Less | Unconsolidated | Plus | Pro-Rata | ||||||||||||||||
Consolidation | Noncontrolling | Investments at | Discontinued | Consolidation | ||||||||||||||||
(GAAP) | Interest | Pro-Rata | Operations | (Non-GAAP) | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues from real estate operations |
$ | 306,100 | $ | 12,447 | $ | 74,528 | $ | 1,688 | $ | 369,869 | ||||||||||
Expenses |
||||||||||||||||||||
Operating expenses |
171,684 | 6,276 | 51,910 | 35 | 217,353 | |||||||||||||||
Depreciation and amortization |
66,393 | 1,687 | 12,146 | 195 | 77,047 | |||||||||||||||
Impairment of real estate |
549 | - | 13,200 | 9,775 | 23,524 | |||||||||||||||
238,626 | 7,963 | 77,256 | 10,005 | 317,924 | ||||||||||||||||
Interest expense |
(87,863 | ) | (4,032 | ) | (17,121 | ) | (502 | ) | (101,454 | ) | ||||||||||
Amortization of mortgage procurement costs |
(3,562 | ) | (126 | ) | (606 | ) | (7 | ) | (4,049 | ) | ||||||||||
Gain on early extinguishment of debt |
28,902 | - | 1,874 | - | 30,776 | |||||||||||||||
Interest and other income |
5,522 | 200 | 1,661 | - | 6,983 | |||||||||||||||
Gain on disposition of rental properties |
- | - | 4,498 | - | 4,498 | |||||||||||||||
Earnings (loss) before income taxes |
10,473 | 526 | (12,422 | ) | (8,826 | ) | (11,301 | ) | ||||||||||||
Income tax expense (benefit) |
||||||||||||||||||||
Current |
3,991 | - | - | (3,019 | ) | 972 | ||||||||||||||
Deferred |
(6,886 | ) | - | - | (404 | ) | (7,290 | ) | ||||||||||||
(2,895 | ) | - | - | (3,423 | ) | (6,318 | ) | |||||||||||||
Equity in earnings (loss), including impairment of
unconsolidated entities |
(11,836 | ) | (13 | ) | 12,422 | - | 599 | |||||||||||||
Earnings (loss) from continuing operations |
1,532 | 513 | - | (5,403 | ) | (4,384 | ) | |||||||||||||
Discontinued operations, net of tax: |
||||||||||||||||||||
Operating loss from rental properties |
(5,403 | ) | - | - | 5,403 | - | ||||||||||||||
Net earnings (loss) |
(3,871 | ) | 513 | - | - | (4,384 | ) | |||||||||||||
Net earnings attributable to noncontrolling interest |
(513 | ) | (513 | ) | - | - | - | |||||||||||||
Net loss attributable to Forest City Enterprises, Inc. |
$ | (4,384 | ) | $ | - | $ | - | $ | - | $ | (4,384 | ) | ||||||||
29
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Consolidated
Earnings Information Nine Months Ended October 31, 2009 (Unaudited)
Plus | ||||||||||||||||||||
Full | Less | Unconsolidated | Plus | Pro-Rata | ||||||||||||||||
Consolidation | Noncontrolling | Investments at | Discontinued | Consolidation | ||||||||||||||||
(GAAP) | Interest | Pro-Rata | Operations | (Non-GAAP) | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues from real estate operations |
$ | 932,889 | $ | 38,008 | $ | 262,820 | $ | 5,476 | $ | 1,163,177 | ||||||||||
Expenses |
||||||||||||||||||||
Operating expenses |
532,000 | 17,578 | 187,980 | 430 | 702,832 | |||||||||||||||
Depreciation and amortization |
199,659 | 3,412 | 43,562 | 1,347 | 241,156 | |||||||||||||||
Impairment of real estate |
3,124 | - | 34,663 | 9,775 | 47,562 | |||||||||||||||
734,783 | 20,990 | 266,205 | 11,552 | 991,550 | ||||||||||||||||
Interest expense |
(258,434 | ) | (10,832 | ) | (49,895 | ) | (2,184 | ) | (299,681 | ) | ||||||||||
Amortization of mortgage procurement costs |
(10,645 | ) | (449 | ) | (1,889 | ) | (50 | ) | (12,135 | ) | ||||||||||
Gain on early extinguishment of debt |
37,965 | - | 1,698 | - | 39,663 | |||||||||||||||
Interest and other income |
23,924 | 543 | 2,866 | - | 26,247 | |||||||||||||||
Gain on disposition of rental properties |
- | - | 4,498 | 4,548 | 9,046 | |||||||||||||||
Earnings (loss) before income taxes |
(9,084 | ) | 6,280 | (46,107 | ) | (3,762 | ) | (65,233 | ) | |||||||||||
Income tax expense (benefit) |
||||||||||||||||||||
Current |
(9,537 | ) | - | - | 848 | (8,689 | ) | |||||||||||||
Deferred |
(16,337 | ) | - | - | (2,307 | ) | (18,644 | ) | ||||||||||||
(25,874 | ) | - | - | (1,459 | ) | (27,333 | ) | |||||||||||||
Equity in earnings (loss), including impairment of
unconsolidated entities |
(45,140 | ) | (81 | ) | 46,107 | - | 1,048 | |||||||||||||
Earnings (loss) from continuing operations |
(28,350 | ) | 6,199 | - | (2,303 | ) | (36,852 | ) | ||||||||||||
Discontinued operations, net of tax: |
||||||||||||||||||||
Operating loss from rental properties |
(5,087 | ) | - | - | 5,087 | - | ||||||||||||||
Gain on disposition of rental properties |
2,784 | - | - | (2,784 | ) | - | ||||||||||||||
(2,303 | ) | - | - | 2,303 | - | |||||||||||||||
Net earnings (loss) |
(30,653 | ) | 6,199 | - | - | (36,852 | ) | |||||||||||||
Net earnings attributable to noncontrolling interest |
(6,199 | ) | (6,199 | ) | - | - | - | |||||||||||||
Net loss attributable to Forest City Enterprises, Inc. |
$ | (36,852 | ) | $ | - | $ | - | $ | - | $ | (36,852 | ) | ||||||||
30
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Consolidated Earnings Information Three Months Ended October 31, 2008 (Unaudited)
Full | Plus | Pro-Rata | ||||||||||||||||||
Consolidation | Less | Unconsolidated | Plus | Consolidation | ||||||||||||||||
(GAAP) | Noncontrolling | Investments at | Discontinued | (Non-GAAP) | ||||||||||||||||
(As Adjusted) | Interest | Pro-Rata | Operations | (As Adjusted) | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues from real estate operations |
$ | 330,381 | $ | 16,129 | $ | 87,802 | $ | 4,149 | $ | 406,203 | ||||||||||
Expenses |
||||||||||||||||||||
Operating expenses |
200,441 | 7,295 | 66,096 | 416 | 259,658 | |||||||||||||||
Depreciation and amortization |
64,038 | 1,044 | 9,725 | 1,451 | 74,170 | |||||||||||||||
264,479 | 8,339 | 75,821 | 1,867 | 333,828 | ||||||||||||||||
Interest expense |
(97,081 | ) | (3,617 | ) | (16,227 | ) | (1,883 | ) | (111,574 | ) | ||||||||||
Amortization of mortgage procurement costs |
(2,838 | ) | (114 | ) | (452 | ) | (106 | ) | (3,282 | ) | ||||||||||
Gain (loss) on early extinguishment of debt |
3,692 | - | (29 | ) | - | 3,663 | ||||||||||||||
Interest and other income |
6,752 | 293 | 602 | 37 | 7,098 | |||||||||||||||
Gain on disposition of rental properties |
- | - | 200 | - | 200 | |||||||||||||||
Earnings (loss) before income taxes |
(23,573 | ) | 4,352 | (3,925 | ) | 330 | (31,520 | ) | ||||||||||||
Income tax expense (benefit) |
||||||||||||||||||||
Current |
(4,499 | ) | - | - | 110 | (4,389 | ) | |||||||||||||
Deferred |
(7,417 | ) | - | - | 18 | (7,399 | ) | |||||||||||||
(11,916 | ) | - | - | 128 | (11,788 | ) | ||||||||||||||
Equity in earnings (loss) of unconsolidated entities |
(3,198 | ) | 110 | 3,925 | - | 617 | ||||||||||||||
Earnings (loss) from continuing operations |
(14,855 | ) | 4,462 | - | 202 | (19,115 | ) | |||||||||||||
Discontinued operations, net of tax: |
||||||||||||||||||||
Operating earnings from rental properties |
202 | - | - | (202 | ) | - | ||||||||||||||
Net earnings (loss) |
(14,653 | ) | 4,462 | - | - | (19,115 | ) | |||||||||||||
Net earnings attributable to noncontrolling interest |
(4,462 | ) | (4,462 | ) | - | - | - | |||||||||||||
Net loss attributable to Forest City Enterprises, Inc. |
$ | (19,115 | ) | $ | - | $ | - | $ | - | $ | (19,115 | ) | ||||||||
31
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Consolidated Earnings Information Nine Months Ended October 31, 2008 (Unaudited)
Full | Plus | Pro-Rata | ||||||||||||||||||
Consolidation | Less | Unconsolidated | Plus | Consolidation | ||||||||||||||||
(GAAP) | Noncontrolling | Investments at | Discontinued | (Non-GAAP) | ||||||||||||||||
(As Adjusted) | Interest | Pro-Rata | Operations | (As Adjusted) | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Revenues from real estate operations |
$ | 960,007 | $ | 47,695 | $ | 287,144 | $ | 13,114 | $ | 1,212,570 | ||||||||||
Expenses |
||||||||||||||||||||
Operating expenses |
593,306 | 24,338 | 211,607 | 1,604 | 782,179 | |||||||||||||||
Depreciation and amortization |
198,610 | 3,575 | 39,932 | 3,911 | 238,878 | |||||||||||||||
Impairment of real estate |
- | - | 6,026 | - | 6,026 | |||||||||||||||
791,916 | 27,913 | 257,565 | 5,515 | 1,027,083 | ||||||||||||||||
Interest expense |
(259,450 | ) | (10,359 | ) | (52,407 | ) | (5,721 | ) | (307,219 | ) | ||||||||||
Amortization of mortgage procurement costs |
(8,723 | ) | (383 | ) | (1,499 | ) | (339 | ) | (10,178 | ) | ||||||||||
Loss on early extinguishment of debt |
(1,539 | ) | (119 | ) | (51 | ) | - | (1,471 | ) | |||||||||||
Interest and other income |
27,976 | 1,420 | 3,685 | 136 | 30,377 | |||||||||||||||
Gain on disposition of rental properties and other investments |
150 | - | 873 | 8,627 | 9,650 | |||||||||||||||
Earnings (loss) before income taxes |
(73,495 | ) | 10,341 | (19,820 | ) | 10,302 | (93,354 | ) | ||||||||||||
Income tax expense (benefit) |
||||||||||||||||||||
Current |
(15,044 | ) | - | - | (636 | ) | (15,680 | ) | ||||||||||||
Deferred |
(13,338 | ) | - | - | 4,617 | (8,721 | ) | |||||||||||||
(28,382 | ) | - | - | 3,981 | (24,401 | ) | ||||||||||||||
Equity in earnings (loss), including impairment of
unconsolidated entities |
(18,787 | ) | (17 | ) | 19,820 | - | 1,050 | |||||||||||||
Earnings (loss) from continuing operations |
(63,900 | ) | 10,324 | - | 6,321 | (67,903 | ) | |||||||||||||
Discontinued operations, net of tax: |
||||||||||||||||||||
Operating earnings from rental properties |
1,027 | - | - | (1,027 | ) | - | ||||||||||||||
Gain on disposition of rental properties |
5,294 | - | - | (5,294 | ) | - | ||||||||||||||
6,321 | - | - | (6,321 | ) | - | |||||||||||||||
Net earnings (loss) |
(57,579 | ) | 10,324 | - | - | (67,903 | ) | |||||||||||||
Net earnings attributable to noncontrolling interest |
(10,324 | ) | (10,324 | ) | - | - | - | |||||||||||||
Net loss attributable to Forest City Enterprises, Inc. |
$ | (67,903 | ) | $ | - | $ | - | $ | - | $ | (67,903 | ) | ||||||||
32
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
The following schedules present information on investments in and advances to affiliates.
Investments in and Advances to Affiliates
Included in Investments in and Advances to Affiliates in the Consolidated Balance Sheet Information
tables are unconsolidated investments in entities that we do not control and/or are not the primary
beneficiary, and that are accounted for under the equity method of accounting, as well as advances
to partners and other affiliates.
Following is a reconciliation of members and partners equity to our carrying value in the
accompanying Consolidated Balance Sheet Information:
October 31, 2009 | January 31, 2009 (As Adjusted) |
|||||||
(in thousands) | ||||||||
Members and partners equity, as below |
$ | 527,035 | $ | 595,163 | ||||
Equity of other members and partners |
471,219 | 534,942 | ||||||
Companys investment in partnerships |
$ | 55,816 | $ | 60,221 | ||||
Advances to and on behalf of other
affiliates |
184,120 | 168,774 | ||||||
Total Investments in
and Advances to
Affiliates |
$ | 239,936 | $ | 228,995 | ||||
Summarized financial information for the equity method investments is as follows:
Combined (100%) | Pro-Rata Share | |||||||||||||||
(GAAP) | (Non-GAAP) | |||||||||||||||
October 31, 2009 | January 31, 2009 | October 31, 2009 | January 31, 2009 | |||||||||||||
(in thousands) | ||||||||||||||||
Balance Sheet: |
||||||||||||||||
Real Estate |
||||||||||||||||
Completed rental properties |
$ | 4,334,121 | $ | 3,967,896 | $ | 1,452,096 | $ | 1,391,085 | ||||||||
Projects under development |
890,582 | 931,411 | 349,399 | 354,643 | ||||||||||||
Land held for development or sale |
269,716 | 278,438 | 117,477 | 122,377 | ||||||||||||
Total Real Estate |
5,494,419 | 5,177,745 | 1,918,972 | 1,868,105 | ||||||||||||
Less accumulated depreciation |
(763,985 | ) | (680,013 | ) | (358,486 | ) | (332,619 | ) | ||||||||
Real Estate, net |
4,730,434 | 4,497,732 | 1,560,486 | 1,535,486 | ||||||||||||
Restricted
cash - Military housing bond funds |
550,440 | 795,616 | 25,165 | 43,085 | ||||||||||||
Other restricted cash |
211,583 | 207,507 | 67,224 | 72,778 | ||||||||||||
Other assets |
458,971 | 482,431 | 152,256 | 155,079 | ||||||||||||
Total Assets |
$ | 5,951,428 | $ | 5,983,286 | $ | 1,805,131 | $ | 1,806,428 | ||||||||
Mortgage debt, nonrecourse |
$ | 4,557,677 | $ | 4,571,375 | $ | 1,464,577 | $ | 1,475,014 | ||||||||
Other liabilities |
866,716 | 816,748 | 285,571 | 271,974 | ||||||||||||
Total Liabilities |
5,424,393 | 5,388,123 | 1,750,148 | 1,746,988 | ||||||||||||
Members and partners equity |
527,035 | 595,163 | 55,816 | 60,221 | ||||||||||||
Noncontrolling interest |
- | - | (833 | ) | (781 | ) | ||||||||||
Total Equity |
527,035 | 595,163 | 54,983 | 59,440 | ||||||||||||
Total Liabilities and Members/Partners Equity |
$ | 5,951,428 | $ | 5,983,286 | $ | 1,805,131 | $ | 1,806,428 | ||||||||
33
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Investments in and Advances to Affiliates (continued)
Combined (100%) | Pro-Rata Share | |||||||||||||||
(GAAP) | (Non-GAAP) | |||||||||||||||
Three Months Ended October 31, | 2009 | 2008 | 2009 | 2008 | ||||||||||||
(in thousands) | ||||||||||||||||
Operations: |
||||||||||||||||
Revenues |
$ | 197,158 | $ | 222,403 | $ | 74,528 | $ | 87,802 | ||||||||
Equity in earnings of unconsolidated entities on a pro-rata basis |
- | - | 599 | 617 | ||||||||||||
Operating expenses |
(123,318 | ) | (157,284 | ) | (51,910 | ) | (66,096 | ) | ||||||||
Interest expense including early extinguishment of debt |
(56,789 | ) | (56,941 | ) | (15,247 | ) | (16,256 | ) | ||||||||
Impairment of unconsolidated entities (1) |
(13,200 | ) | - | (13,200 | ) | - | ||||||||||
Depreciation and amortization |
(35,239 | ) | (28,352 | ) | (12,752 | ) | (10,177 | ) | ||||||||
Interest and other income |
1,182 | 13,644 | 1,661 | 602 | ||||||||||||
Noncontrolling interest |
- | - | (13 | ) | 110 | |||||||||||
Loss from continuing operations |
(30,206 | ) | (6,530 | ) | (16,334 | ) | (3,398 | ) | ||||||||
Discontinued operations: |
||||||||||||||||
Operating
earnings (loss) from rental properties |
(78 | ) | 117 | - | - | |||||||||||
Gain on disposition of unconsolidated entities (2) |
8,997 | 400 | 4,498 | 200 | ||||||||||||
Discontinued operations subtotal |
8,919 | 517 | 4,498 | 200 | ||||||||||||
Net loss (pre-tax) |
$ | (21,287 | ) | $ | (6,013 | ) | $ | (11,836 | ) | $ | (3,198 | ) | ||||
Combined (100%) | Pro-Rata Share | |||||||||||||||
(GAAP) | (Non-GAAP) | |||||||||||||||
Nine Months Ended October 31, | 2009 | 2008 | 2009 | 2008 | ||||||||||||
(in thousands) | ||||||||||||||||
Operations: |
||||||||||||||||
Revenues |
$ | 682,898 | $ | 714,669 | $ | 262,820 | $ | 287,144 | ||||||||
Equity in earnings of unconsolidated entities on a pro-rata basis |
- | - | 1,048 | 1,050 | ||||||||||||
Operating expenses |
(454,249 | ) | (525,674 | ) | (187,980 | ) | (211,607 | ) | ||||||||
Interest expense including early extinguishment of debt |
(170,749 | ) | (171,777 | ) | (48,197 | ) | (52,458 | ) | ||||||||
Impairment of unconsolidated entities (1) |
(36,403 | ) | (45,713 | ) | (34,663 | ) | (6,026 | ) | ||||||||
Depreciation and amortization |
(127,963 | ) | (106,307 | ) | (45,451 | ) | (41,431 | ) | ||||||||
Interest and other income |
9,954 | 45,652 | 2,866 | 3,685 | ||||||||||||
Preferred return on disposition |
- | (208 | ) | - | (208 | ) | ||||||||||
Noncontrolling interest |
- | - | (81 | ) | (17 | ) | ||||||||||
Loss from continuing operations |
(96,512 | ) | (89,358 | ) | (49,638 | ) | (19,868 | ) | ||||||||
Discontinued operations: |
||||||||||||||||
Operating earnings from rental properties |
159 | 416 | - | - | ||||||||||||
Gain on disposition of unconsolidated entities (2) |
8,997 | 3,470 | 4,498 | 1,081 | ||||||||||||
Discontinued operations subtotal |
9,156 | 3,886 | 4,498 | 1,081 | ||||||||||||
Net loss (pre-tax) |
$ | (87,356 | ) | $ | (85,472 | ) | $ | (45,140 | ) | $ | (18,787 | ) | ||||
34
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Investments in and Advances to Affiliates (continued)
(1) | The following tables show the detail of impairment of unconsolidated entities: |
Combined (100%) | Pro-Rata Share | Combined (100%) | Pro-Rata Share | |||||||||||||||||||||||||||||||||||||
(GAAP) | (Non-GAAP) | (GAAP) | (Non-GAAP) | |||||||||||||||||||||||||||||||||||||
Three Months Ended October 31, | Nine Months Ended October 31, | |||||||||||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||
Apartment Communities: |
||||||||||||||||||||||||||||||||||||||||
Millender Center |
(Detroit, Michigan) | $ | 3,247 | $ | - | $ | 3,247 | $ | - | $ | 10,317 | $ | - | $ | 10,317 | $ | - | |||||||||||||||||||||||
Uptown Apartments |
(Oakland, California) | - | - | - | - | 6,781 | - | 6,781 | - | |||||||||||||||||||||||||||||||
Metropolitan Lofts |
(Los Angeles, California) | 1,466 | - | 1,466 | - | 2,505 | - | 2,505 | - | |||||||||||||||||||||||||||||||
Residences at University Park |
(Cambridge, Massachusetts) | - | - | 855 | - | 855 | - | |||||||||||||||||||||||||||||||||
Fenimore Court |
(Detroit, Michigan) | - | - | - | - | 693 | - | 693 | - | |||||||||||||||||||||||||||||||
Mercury (Condominiums) |
(Los Angeles, California) | - | - | - | - | - | 12,006 | - | 4,098 | |||||||||||||||||||||||||||||||
Classic Residence by Hyatt (Supported-Living Apartments) |
(Yonkers, New York) | - | - | - | - | 4,892 | - | 3,152 | - | |||||||||||||||||||||||||||||||
Navy Midwest (Land owned by Military
Housing Project) |
(Chicago, Illinois) | - | - | - | - | - | 30,000 | - | 300 | |||||||||||||||||||||||||||||||
Specialty Retail Centers: |
||||||||||||||||||||||||||||||||||||||||
Southgate Mall |
(Yuma, Arizona) | - | - | - | - | 1,611 | - | 1,611 | - | |||||||||||||||||||||||||||||||
El Centro Mall |
(El Centro, California) | - | - | - | - | - | 3,342 | - | 1,263 | |||||||||||||||||||||||||||||||
Pittsburgh Peripheral (Land Project) |
(Pittsburgh, Pennsylvania) | 7,217 | - | 7,217 | - | 7,217 | - | 7,217 | - | |||||||||||||||||||||||||||||||
Shamrock Business Center (Land Project) |
(Painesville, Ohio) | 1,150 | - | 1,150 | - | 1,150 | - | 1,150 | - | |||||||||||||||||||||||||||||||
Other |
120 | - | 120 | - | 382 | 365 | 382 | 365 | ||||||||||||||||||||||||||||||||
Total impairment of unconsolidated entities |
$ | 13,200 | $ | - | $ | 13,200 | $ | - | $ | 36,403 | $ | 45,713 | $ | 34,663 | $ | 6,026 | ||||||||||||||||||||||||
(2) | Upon disposition, investments accounted for on the equity method are not classified as
discontinued operations, therefore, gains or losses on the sale of equity method properties
are reported in continuing operations when sold. The following table shows the detail of
gain on disposition of unconsolidated entities: |
Combined (100%) | Pro-Rata Share | Combined (100%) | Pro-Rata Share | |||||||||||||||||||||||||||||||||
(GAAP) | (Non-GAAP) | (GAAP) | (Non-GAAP) | |||||||||||||||||||||||||||||||||
Three Months Ended October 31, | Nine Months Ended October 31, | |||||||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||
Boulevard Towers (Apartment Community) (a) |
(Amherst, New York) | $ | 8,997 | $ | - | $ | 4,498 | $ | - | $ | 8,997 | $ | - | $ | 4,498 | $ | - | |||||||||||||||||||
Emery Richmond (Office Building) |
(Warrensville Heights, Ohio) | - | 400 | - | 200 | - | 400 | - | 200 | |||||||||||||||||||||||||||
One International Place (Office Building) |
(Cleveland, Ohio) | - | - | - | - | - | 3,070 | - | 881 | |||||||||||||||||||||||||||
Total gain on disposition of unconsolidated entities |
$ | 8,997 | $ | 400 | $ | 4,498 | $ | 200 | $ | 8,997 | $ | 3,470 | $ | 4,498 | $ | 1,081 | ||||||||||||||||||||
(a) | The Company disposed of its
50% ownership interest in Boulevard Towers in a
nonmonetary exchange for 100% ownership interest in North Church
Towers, an apartment
complex in Parma Heights, Ohio. |
35
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Forest City Rental Properties Corporation (Rental Properties) is a wholly-owned subsidiary of
Forest City Enterprises, Inc. engaged in the ownership, development, management and acquisition of
real estate projects, including regional malls, specialty/urban retail centers, office and life
science buildings, hotels, mixed-use projects, as well as large land development projects,
residential rental properties, development of for-sale condominium projects and also owns interests
in entities that develop and manage military family housing.
The following is a summary of the real estate activity of Rental Properties as presented on
pro-rata consolidation including a reconciliation from full consolidation to pro-rata
consolidation.
Pro-Rata Consolidation (Non-GAAP) | ||||||||||||||||
Nine Months Ended | ||||||||||||||||
October 31, | For the Years Ended January 31, | |||||||||||||||
2009 | 2009 | 2008 | 2007 | |||||||||||||
(in thousands) | ||||||||||||||||
Rental Properties Real Estate Activity |
||||||||||||||||
Real estate |
||||||||||||||||
Completed rental properties |
$ | 9,503,388 | $ | 9,353,924 | $ | 8,457,590 | $ | 7,510,737 | ||||||||
Projects under development |
2,447,129 | 2,128,065 | 1,827,219 | 1,570,112 | ||||||||||||
Land held for development or sale |
123,703 | 116,675 | 90,151 | 79,909 | ||||||||||||
Total real estate - Rental Properties |
12,074,220 | 11,598,664 | 10,374,960 | 9,160,758 | ||||||||||||
Less accumulated depreciation |
(1,842,917 | ) | (1,698,362 | ) | (1,468,313 | ) | (1,295,623 | ) | ||||||||
Real estate, net - Rental Properties |
$ | 10,231,303 | $ | 9,900,302 | $ | 8,906,647 | $ | 7,865,135 | ||||||||
Plus real estate, net - Land Group and Corporate |
196,976 | 186,673 | 182,031 | 170,811 | ||||||||||||
Real estate, net - Forest City Enterprises |
$ | 10,428,279 | $ | 10,086,975 | $ | 9,088,678 | $ | 8,035,946 | ||||||||
Real estate activity during the year |
||||||||||||||||
Completed rental properties |
||||||||||||||||
Capital expenditures |
$ | 40,381 | $ | 99,130 | $ | 108,166 | $ | 87,237 | ||||||||
Transferred from projects under development |
270,336 | 729,370 | 707,827 | 547,667 | ||||||||||||
Acquisitions |
- | 98,160 | 335,750 | 314,779 | ||||||||||||
Exchange of cash and Class A Common Units for
partners interest |
- | - | - | 228,958 | ||||||||||||
Other (5) |
(67,378 | ) | 116,679 | 8,502 | 310,275 | |||||||||||
Total additions |
243,339 | 1,043,339 | 1,160,245 | 1,488,916 | ||||||||||||
Dispositions |
(93,875 | ) (1) | (147,005 | ) (2) | (213,392 | ) (3) | (297,368 | ) (4) | ||||||||
Completed rental properties, net additions |
149,464 | 896,334 | 946,853 | 1,191,548 | ||||||||||||
Projects under development |
||||||||||||||||
New development |
627,793 | 1,023,035 | 1,119,554 | 813,834 | ||||||||||||
Transferred to completed rental properties |
(270,336 | ) | (729,370 | ) | (707,827 | ) | (547,667 | ) | ||||||||
Cost of land sales |
(38,393 | ) | (34,391 | ) | (161,492 | ) | (38,135 | ) | ||||||||
Other (6) |
- | 41,572 | 6,872 | 145,417 | ||||||||||||
Projects under development, net additions |
319,064 | 300,846 | 257,107 | 373,449 | ||||||||||||
Land held for development or sale, net additions |
7,028 | 26,524 | 10,242 | 29,634 | ||||||||||||
Increase in real estate, at cost |
$ | 475,556 | $ | 1,223,704 | $ | 1,214,202 | $ | 1,594,631 | ||||||||
36
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Plus | ||||||||||||||||||||
Less | Unconsolidated | Plus | Pro-Rata | |||||||||||||||||
Full | Noncontrolling | Investments | Discontinued | Consolidation | ||||||||||||||||
Nine Months Ended October 31, 2009 | Consolidation | Interest | at Pro-Rata | Operations | (Non-GAAP) | |||||||||||||||
(in thousands) | ||||||||||||||||||||
2009 |
||||||||||||||||||||
Real estate |
||||||||||||||||||||
Completed rental properties |
$ | 8,330,443 | $ | 279,150 | $ | 1,452,095 | $ | - | $ | 9,503,388 | ||||||||||
Projects under development |
2,693,712 | 595,982 | 349,399 | - | 2,447,129 | |||||||||||||||
Land held for development or sale |
71,259 | 5,826 | 58,270 | - | 123,703 | |||||||||||||||
Total real estate - Rental Properties |
11,095,414 | 880,958 | 1,859,764 | - | 12,074,220 | |||||||||||||||
Less accumulated depreciation |
(1,540,648 | ) | (56,216 | ) | (358,485 | ) | - | (1,842,917 | ) | |||||||||||
Real estate, net - Rental Properties |
$ | 9,554,766 | $ | 824,742 | $ | 1,501,279 | $ | - | $ | 10,231,303 | ||||||||||
Plus real estate, net - Land Group and Corporate |
154,291 | 16,522 | 59,207 | - | 196,976 | |||||||||||||||
Real estate, net - Forest City Enterprises |
$ | 9,709,057 | $ | 841,264 | $ | 1,560,486 | $ | - | $ | 10,428,279 | ||||||||||
Real estate activity during the year |
||||||||||||||||||||
Completed rental properties |
||||||||||||||||||||
Capital expenditures |
$ | 30,134 | $ | 1,688 | $ | 11,935 | $ | - | $ | 40,381 | ||||||||||
Transferred from projects under development |
219,932 | 9,424 | 59,828 | - | 270,336 | |||||||||||||||
Acquisitions |
- | - | - | - | - | |||||||||||||||
Other (5) |
(26,695 | ) | 29,931 | (10,752 | ) | - | (67,378 | ) | ||||||||||||
Total additions |
223,371 | 41,043 | 61,011 | - | 243,339 | |||||||||||||||
Dispositions |
(93,875 | ) | - | - | - | (93,875) | (1) | |||||||||||||
Completed rental properties, net additions |
129,496 | 41,043 | 61,011 | - | 149,464 | |||||||||||||||
Projects under development |
||||||||||||||||||||
New development |
694,908 | 137,774 | 70,659 | - | 627,793 | |||||||||||||||
Transferred to completed rental properties |
(219,932 | ) | (9,424 | ) | (59,828 | ) | - | (270,336 | ) | |||||||||||
Cost of land sales |
(22,318 | ) | - | (16,075 | ) | - | (38,393 | ) | ||||||||||||
Projects under development, net additions |
452,658 | 128,350 | (5,244 | ) | - | 319,064 | ||||||||||||||
Land held for development or sale, net additions |
2,715 | 54 | 4,367 | - | 7,028 | |||||||||||||||
Increase (decrease) in real estate, at cost |
$ | 584,869 | $ | 169,447 | $ | 60,134 | $ | - | $ | 475,556 | ||||||||||
37
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Plus | ||||||||||||||||||||
Less | Unconsolidated | Plus | Pro-Rata | |||||||||||||||||
Full | Noncontrolling | Investments | Discontinued | Consolidation | ||||||||||||||||
Years Ended January 31, | Consolidation | Interest | at Pro-Rata | Operations | (Non-GAAP) | |||||||||||||||
(in thousands) | ||||||||||||||||||||
2009 |
||||||||||||||||||||
Real estate - end of year |
||||||||||||||||||||
Completed rental properties |
$ | 8,200,947 | $ | 238,107 | $ | 1,391,084 | $ | - | $ | 9,353,924 | ||||||||||
Projects under development |
2,241,054 | 467,632 | 354,643 | - | 2,128,065 | |||||||||||||||
Land held for development or sale |
68,544 | 5,772 | 53,903 | - | 116,675 | |||||||||||||||
Total real estate - Rental Properties |
10,510,545 | 711,511 | 1,799,630 | - | 11,598,664 | |||||||||||||||
Less accumulated depreciation |
(1,413,299 | ) | (47,555 | ) | (332,618 | ) | - | (1,698,362 | ) | |||||||||||
Real estate, net - Rental Properties |
$ | 9,097,246 | $ | 663,956 | $ | 1,467,012 | $ | - | $ | 9,900,302 | ||||||||||
Plus real estate, net - Land Group and Corporate |
132,056 | 13,857 | 68,474 | - | 186,673 | |||||||||||||||
Real estate, net - Forest City Enterprises |
$ | 9,229,302 | $ | 677,813 | $ | 1,535,486 | $ | - | $ | 10,086,975 | ||||||||||
Real estate activity during the year |
||||||||||||||||||||
Completed rental properties |
||||||||||||||||||||
Capital expenditures |
$ | 90,348 | $ | 2,415 | $ | 11,197 | $ | - | $ | 99,130 | ||||||||||
Transferred from projects under development |
591,992 | 10,886 | 148,264 | - | 729,370 | |||||||||||||||
Acquisitions |
80,972 | 2,641 | 19,829 | - | 98,160 | |||||||||||||||
Other (5) |
13,031 | (94,407 | ) | 9,241 | - | 116,679 | ||||||||||||||
Total additions |
776,343 | (78,465 | ) | 188,531 | - | 1,043,339 | ||||||||||||||
Dispositions |
(128,010 | ) | (17,820 | ) | (5,487 | ) | (31,328 | ) | (147,005 | ) (2) | ||||||||||
Completed rental properties, net additions |
648,333 | (96,285 | ) | 183,044 | (31,328 | ) | 896,334 | |||||||||||||
Projects under development |
||||||||||||||||||||
New development |
922,248 | 134,386 | 235,173 | - | 1,023,035 | |||||||||||||||
Transferred to completed rental properties |
(591,992 | ) | (10,886 | ) | (148,264 | ) | - | (729,370 | ) | |||||||||||
Cost of land sales |
(12,264 | ) | (141 | ) | (22,268 | ) | - | (34,391 | ) | |||||||||||
Other (6) |
416,695 | 158,467 | (216,656 | ) | - | 41,572 | ||||||||||||||
Projects under development, net additions |
734,687 | 281,826 | (152,015 | ) | - | 300,846 | ||||||||||||||
Land held for development or sale, net additions |
15,930 | 851 | 11,445 | - | 26,524 | |||||||||||||||
Increase (decrease) in real estate, at cost |
$ | 1,398,950 | $ | 186,392 | $ | 42,474 | $ | (31,328 | ) | $ | 1,223,704 | |||||||||
2008 |
||||||||||||||||||||
Real estate - end of year |
||||||||||||||||||||
Completed rental properties |
$ | 7,552,614 | $ | 334,392 | $ | 1,208,040 | $ | 31,328 | $ | 8,457,590 | ||||||||||
Projects under development |
1,506,367 | 185,806 | 506,658 | - | 1,827,219 | |||||||||||||||
Land held for development or sale |
52,614 | 4,921 | 42,458 | - | 90,151 | |||||||||||||||
Total real estate - Rental Properties |
9,111,595 | 525,119 | 1,757,156 | 31,328 | 10,374,960 | |||||||||||||||
Less accumulated depreciation |
(1,239,163 | ) | (73,924 | ) | (301,604 | ) | (1,470 | ) | (1,468,313 | ) | ||||||||||
Real estate, net - Rental Properties |
$ | 7,872,432 | $ | 451,195 | $ | 1,455,552 | $ | 29,858 | $ | 8,906,647 | ||||||||||
Plus real estate, net - Land Group and Corporate |
108,891 | 2,737 | 75,877 | - | 182,031 | |||||||||||||||
Real estate, net - Forest City Enterprises |
$ | 7,981,323 | $ | 453,932 | $ | 1,531,429 | $ | 29,858 | $ | 9,088,678 | ||||||||||
Real estate activity during the year |
||||||||||||||||||||
Completed rental properties |
||||||||||||||||||||
Capital expenditures |
$ | 91,677 | $ | 3,588 | $ | 20,077 | $ | - | $ | 108,166 | ||||||||||
Transferred from projects under development |
681,021 | 11,656 | 38,462 | - | 707,827 | |||||||||||||||
Acquisitions |
334,655 | - | 1,095 | - | 335,750 | |||||||||||||||
Other (5) |
17,652 | (27,175 | ) | (36,325 | ) | - | 8,502 | |||||||||||||
Total additions |
1,125,005 | (11,931 | ) | 23,309 | - | 1,160,245 | ||||||||||||||
Operating property held for sale |
(31,328 | ) | - | - | 31,328 | - | ||||||||||||||
Dispositions |
(190,534 | ) | - | (22,858 | ) | - | (213,392 | ) (3) | ||||||||||||
Completed rental properties, net additions |
903,143 | (11,931 | ) | 451 | 31,328 | 946,853 | ||||||||||||||
Projects under development |
||||||||||||||||||||
New development |
908,349 | 71,499 | 282,704 | - | 1,119,554 | |||||||||||||||
Transferred to completed rental properties |
(681,021 | ) | (11,656 | ) | (38,462 | ) | - | (707,827 | ) | |||||||||||
Cost of land sales |
(125,940 | ) | (697 | ) | (36,249 | ) | - | (161,492 | ) | |||||||||||
Other (6) |
6,872 | - | - | - | 6,872 | |||||||||||||||
Projects under development, net additions |
108,260 | 59,146 | 207,993 | - | 257,107 | |||||||||||||||
Land held for development or sale, net additions |
(5,794 | ) | (596 | ) | 15,440 | - | 10,242 | |||||||||||||
Increase (decrease) in real estate, at cost |
$ | 1,005,609 | $ | 46,619 | $ | 223,884 | $ | 31,328 | $ | 1,214,202 | ||||||||||
38
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Plus | ||||||||||||||||||||
Less | Unconsolidated | Plus | Pro-Rata | |||||||||||||||||
Full | Noncontrolling | Investments | Discontinued | Consolidation | ||||||||||||||||
Year Ended January 31, | Consolidation | Interest | at Pro-Rata | Operations | (Non-GAAP) | |||||||||||||||
(in thousands) | ||||||||||||||||||||
2007 |
||||||||||||||||||||
Real estate - end of year |
||||||||||||||||||||
Completed rental properties |
$ | 6,649,471 | $ | 346,323 | $ | 1,207,589 | $ | - | $ | 7,510,737 | ||||||||||
Projects under development |
1,398,107 | 126,660 | 298,665 | - | 1,570,112 | |||||||||||||||
Land held for development or sale |
58,408 | 5,517 | 27,018 | - | 79,909 | |||||||||||||||
Total real estate - Rental Properties |
8,105,986 | 478,500 | 1,533,272 | - | 9,160,758 | |||||||||||||||
Less accumulated depreciation |
(1,080,432 | ) | (70,863 | ) | (286,054 | ) | - | (1,295,623 | ) | |||||||||||
Real estate, net - Rental Properties |
$ | 7,025,554 | $ | 407,637 | $ | 1,247,218 | $ | - | $ | 7,865,135 | ||||||||||
Plus real estate, net - Land Group and Corporate |
119,764 | 515 | 51,562 | - | 170,811 | |||||||||||||||
Real estate, net - Forest City Enterprises |
$ | 7,145,318 | $ | 408,152 | $ | 1,298,780 | $ | - | $ | 8,035,946 | ||||||||||
Real estate activity during the year |
||||||||||||||||||||
Completed rental properties |
||||||||||||||||||||
Capital expenditures |
$ | 78,663 | $ | 17,488 | $ | 26,062 | $ | - | $ | 87,237 | ||||||||||
Transferred from projects under development |
359,649 | 6,835 | 194,853 | - | 547,667 | |||||||||||||||
Acquisitions |
218,763 | 17,785 | 113,801 | - | 314,779 | |||||||||||||||
Exchange of cash and Class A Common Units for partners interest |
228,958 | - | - | - | 228,958 | |||||||||||||||
Other (5) |
32,884 | (330,388 | ) | (52,997 | ) | - | 310,275 | |||||||||||||
Total additions |
918,917 | (288,280 | ) | 281,719 | - | 1,488,916 | ||||||||||||||
Dispositions |
(423,281 | ) | (131,224 | ) | (5,311 | ) | - | (297,368 | ) (4) | |||||||||||
Completed rental properties, net additions |
495,636 | (419,504 | ) | 276,408 | - | 1,191,548 | ||||||||||||||
Projects under development |
||||||||||||||||||||
New development |
686,039 | 49,927 | 177,722 | - | 813,834 | |||||||||||||||
Transferred to completed rental properties |
(359,649 | ) | (6,835 | ) | (194,853 | ) | - | (547,667 | ) | |||||||||||
Cost of land sales |
(29,085 | ) | (673 | ) | (9,723 | ) | - | (38,135 | ) | |||||||||||
Other (6) |
214,546 | - | (69,129 | ) | - | 145,417 | ||||||||||||||
Projects under development, net additions |
511,851 | 42,419 | (95,983 | ) | - | 373,449 | ||||||||||||||
Land held for development or sale, net additions |
20,317 | 2,097 | 11,414 | - | 29,634 | |||||||||||||||
Increase (decrease) in real estate, at cost |
$ | 1,027,804 | $ | (374,988 | ) | $ | 191,839 | $ | - | $ | 1,594,631 | |||||||||
(1) | Reflects the dispositions of Grand Avenue (a 100,000 square foot specialty retail
center in Queens, New York), Sterling Glen of Glen Cove (an 80-unit supported-living
apartment community in Glen Cove, New York), and Sterling Glen of Great Neck (a 142-unit
supported-living apartment community in Great Neck, New York). |
||
(2) | Primarily reflects the dispositions of: Sterling Glen of Lynbrook (a 130-unit
supported-living apartment community in Lynbrook, New York), Sterling Glen of Rye Brook (a
168-unit supported-living apartment community in Rye Brook, New York), One International
Place (an 88,000 square foot office building in Cleveland, Ohio) and Emery Richmond (a
5,000 square foot office building in Warrensville Heights,
Ohio). |
||
(3) | Primarily reflects the dispositions of: Landings of Brentwood (a 724-unit apartment
community in Nashville, Tennessee), Sterling Glen of Bayshore (an 85-unit supported-living
apartment community in Bayshore, New York), Sterling Glen of Center City (a 135-unit
supported-living apartment community in Philadelphia, Pennsylvania), Sterling Glen of
Darien (an 80-unit supported-living apartment community in Darien, Connecticut), Sterling
Glen of Forest Hills (an 83-unit supported-living apartment community in Forest Hills, New
York), Sterling Glen of Plainview (a 79-unit supported-living apartment community in
Plainview, New York), Sterling Glen of Stamford (a 166-unit supported-living apartment
community in Stamford, Connecticut), University Park at MIT Hotel (210 rooms in Cambridge,
Massachusetts). |
||
(4) | Primarily reflects the dispositions of: Providence at Palm Harbor (a 236-unit
apartment community in Tampa, Florida), Mount Vernon Square (a 1,387-unit apartment
community in Alexandria, Virginia), Midtown Plaza (a 240,000 square foot specialty retail
center in Parma, Ohio), G Street (a 13,000 square foot retail center in Philadelphia,
Pennsylvania), Battery Park City (a 166,000 square foot specialty retail center in
Manhattan, New York), Embassy Suites Hotel and Hilton Times Square (463 and 444 rooms
respectively in Manhattan, New York). |
||
(5) | Relates to non-cash changes in completed rental properties with increases primarily due
to assuming a larger portion of the existing mortgage debt upon acquisition of a partners
interest and decreases primarily due to impairment of real estate
assets. |
||
(6) | Change to full consolidation method of accounting from equity method due to the
occurrence of a triggering event as described in accounting guidance related to
consolidation of variable interest entities, for Waterfront Station, Village at Gulfstream
Park, Shops at Wiregrass and a mixed-use development project located in Las Vegas, Nevada
in the Commercial Group for the year ended January 31, 2009 and primarily New York Times
for the year ended
January 31, 2007. This also includes the retrospective application of accounting for
convertible debt instruments that may be settled in cash upon conversion (including partial
cash settlement). |
39
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Results of Operations
Net Loss Attributable to Forest City Enterprises, Inc. Net loss attributable to Forest City
Enterprises, Inc. for the three months ended October 31, 2009 was $4,384,000 versus $19,115,000 for
the three months ended October 31, 2008. Although we have substantial recurring revenue sources
from our properties, we also enter into significant one-time transactions, which could create
substantial variances in net earnings (loss) between periods. This variance is primarily
attributable to the following increases, which are net of tax and noncontrolling interests:
| $16,599,000 ($27,113,000, pre-tax, which includes $1,903,000 for unconsolidated
entities) related to the 2009 early extinguishment of nonrecourse
mortgage debt at an underperforming retail project and the gain on early
extinguishment of debt on the exchange of a portion of our puttable equity-linked senior
notes due October 15, 2011 for a new issue of puttable equity-linked senior notes due
October 15, 2014; |
||
| $7,630,000 ($12,434,000, pre-tax) related to the reduction in fair value of the Denver
Urban Renewal Authority (DURA) purchase obligation and
fee, that resulted from the Lehman Brothers, Inc. bankruptcy in 2008; |
||
| $5,352,000 ($8,742,000, pre-tax) of decreased write-offs of abandoned development
projects in 2009 compared to 2008; |
||
| $2,753,000 ($4,498,000, pre-tax) related to the 2009 gain on disposition of our
unconsolidated investment in Boulevard Towers, an apartment community in Amherst, New York; |
||
| $1,128,000 ($1,843,000, pre-tax, which includes $1,449,000 for unconsolidated entities)
related to an increase in income recognized on the sale of state and federal Historic
Preservation Tax Credits and New Market Tax Credits; and |
||
| $1,041,000 ($1,700,000, pre-tax) related to the change in fair market value of
derivatives between the comparable periods, which was marked to market through interest
expense as a result of the derivatives not qualifying for hedge accounting. |
These increases were partially offset by the following decreases, net of tax and noncontrolling
interests:
| $14,400,000 ($23,524,000, pre-tax) related to the 2009 increase in impairment charges of
consolidated (including discontinued properties) and unconsolidated entities; |
||
| $2,877,000 ($4,709,000, pre-tax) primarily related to military housing fee income from
the management and development of units in Hawaii, Illinois, Washington and Colorado; |
||
| $2,448,000 ($3,998,000, pre-tax)
related to the 2009 participation payment on the refinancing of
45/75 Sidney Street, office buildings in Cambridge,
Massachusetts; and |
||
| $2,441,000 ($3,978,000, pre-tax) related to the 2008 lease termination fee income at an
office building in Cleveland, Ohio. |
Net loss attributable to Forest City Enterprises, Inc. for the nine months ended October 31, 2009
was $36,852,000 versus $67,903,000 for the nine months ended October 31, 2008. This variance is
primarily attributable to the following increases, which are net of tax and noncontrolling
interests:
| $25,182,000 ($41,134,000, pre-tax, which includes $1,749,000 for unconsolidated
entities) related to the 2009 early extinguishment of nonrecourse
mortgage debt at an underperforming retail project
and Gladden Farms, a land development project located in Marana,
Arizona and the gain on early extinguishment of debt on the exchange
of a portion of our puttable equity-linked senior notes due October 15, 2011 for a new
issue of puttable equity-linked senior notes due October 15, 2014; |
||
| $10,902,000 ($17,808,000, pre-tax) of decreased write-offs of abandoned development
projects in 2009 compared to 2008; |
||
| $7,630,000 ($12,434,000, pre-tax) related to the reduction in fair value of the DURA
purchase obligation and fee, that resulted from the Lehman Brothers,
Inc. bankruptcy in 2008; |
||
| $2,784,000 ($4,548,000, pre-tax) related to the 2009 gain on disposition of Grand
Avenue, a specialty retail center in Queens, New York; |
||
| $2,753,000 ($4,498,000, pre-tax) related to the 2009 gain on disposition of our
unconsolidated investment in Boulevard Towers; |
||
| $2,596,000 ($4,241,000, pre-tax, which includes $1,449,000 for unconsolidated entities)
related to an increase in income recognized on the sale of state and federal Historic
Preservation Tax Credits and New Market Tax Credits; |
40
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
| $2,203,000 ($3,599,000, pre-tax) related to a gain recognized in 2009 for insurance
proceeds received related to fire damage of an apartment building in excess of the net book
value of the damaged asset; |
||
| $1,860,000 ($3,031,000, pre-tax) related
to the 2008 participation payments on the
refinancing of 350 Massachusetts Avenue, an unconsolidated office building and Jackson
Building, a consolidated office building, both located in Cambridge, Massachusetts; |
||
| $1,622,000 ($2,649,000, pre-tax) related to the change in fair market value of
derivatives between the comparable periods, which was marked to market through interest
expense as a result of the derivatives not qualifying for hedge accounting; |
||
| $1,467,000 ($2,396,000, pre-tax) related to the 2009 net gain on an industrial land sale
at Mesa del Sol in Albuquerque, New Mexico; and |
||
| $1,295,000 ($2,039,000, pre-tax) related to a decrease in allocated losses from our
equity investment in the New Jersey Nets basketball team. |
These increases were partially offset by the following decreases, net of tax and noncontrolling
interests:
| $25,418,000 ($41,536,000, pre-tax) related to the 2009 increase in impairment charges of
consolidated (including discontinued properties) and unconsolidated entities; |
||
| $5,245,000 ($8,117,000, pre-tax) primarily related to military housing fee income from
the management and development of units in Hawaii, Illinois, Washington and Colorado; |
||
| $5,294,000 ($8,627,000, pre-tax) related to the 2008 gain on disposition of Sterling
Glen of Lynbrook, a supported-living apartment community in Lynbrook, New York; |
||
| $2,448,000 ($3,998,000, pre-tax) related
to the 2009 participation payment on the refinancing of 45/75
Sidney Street; |
||
| $2,441,000 ($3,978,000, pre-tax) related to the 2008 lease termination fee income at an
office building in Cleveland, Ohio; and |
||
| $2,056,000 ($3,350,000, pre-tax) related to the 2008 gain on the sale of an ownership
interest in a parking management company. |
Net Operating Income (NOI) from Real Estate Groups 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 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.
Full Consolidation Under the full consolidation method (GAAP), NOI from the combination
of the Commercial Group and the Residential Group (Rental Properties) for the three months ended
October 31, 2009 was $162,276,000 compared to $164,159,000 for the three months ended October 31,
2008, a 1.1% decrease. NOI for the nine months ended October 31, 2009 was $484,436,000 compared to
$465,102,000 for the nine months ended October 31, 2008, a 4.2% increase. A reconciliation of NOI
to the most comparable GAAP measure, net earnings (loss), is presented on pages 8-9. A
reconciliation of NOI to net earnings (loss) for each strategic business unit can be found on pages
45-56.
Pro-Rata Consolidation Management also analyzes property NOI using the pro-rata
consolidation method because it provides operating data at our ownership share, and we publicly
disclose and discuss our performance using this method of consolidation to complement our GAAP
disclosures. Under the pro-rata consolidation method, NOI from Rental Properties for the three
months ended October 31, 2009 was $172,213,000 compared to $171,558,000 for the three months ended
October 31, 2008, a 0.4% increase. NOI for the nine months ended October 31, 2009 was $513,106,000
compared to $498,003,000 for the nine months ended October 31, 2008, a 3.0% increase.
Comparable NOI increased 0.8% for the three months ended October 31, 2009 compared to the prior
year. Retail comparable NOI decreased 1.7% while office and hotel comparable NOI increased 5.6%
and 6.2%, respectively, from the prior year and our residential portfolio decreased 3.9%.
Comparable NOI increased 0.1% for the nine months ended October 31, 2009 compared to the prior
year. Retail and hotel comparable NOI decreased 2.0% and 11.9%, respectively, while office
comparable NOI increased 6.2% from the prior year and our residential portfolio decreased 3.3%.
41
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
EBDT - We use an additional measure, along with net earnings, to report our operating results. This
non-GAAP measure, referred to as 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.
We believe that EBDT provides additional information about our core operations and, along with net
earnings, is necessary to understand our 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. We believe EBDT is
important to investors because it provides another method for the investor to measure our 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 noncontrolling interest expense on our
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). Unlike the real estate segments, EBDT for the Nets segment equals net earnings.
EBDT is reconciled to net loss, the most comparable financial measure calculated in accordance with
GAAP, on page 43. The adjustment to recognize rental revenues and rental expenses on the
straight-line method is excluded because it is managements opinion that rental revenues and
expenses should be recognized when due from the tenants or due to the landlord. We exclude
depreciation and amortization expense related to real estate operations from EBDT because we
believe the values of our 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 our current tax provision. The
impairment of real estate is excluded from EBDT because it varies from year to year based on
factors unrelated to our overall financial performance and is related to the ultimate gain on
dispositions of operating properties. Our EBDT may not be directly comparable to similarly-titled
measures reported by other companies.
Our EBDT for the three months ended October 31, 2009 increased by $41,474,000, or 94.0%, to
$85,612,000 from $44,138,000 for the three months ended October 31, 2008. Our Commercial and
Residential Segments combined provided a pre-tax EBDT increase of $36,936,000. This is primarily
the result of decreased interest expense on our mature portfolio of $6,570,000, the ramp up of new
properties of $3,127,000, a gain on early extinguishment of nonrecourse mortgage debt of
$24,248,000, primarily at an underperforming retail project and decreased write-offs of abandoned development projects
of $8,742,000. These increases in the portfolio were partially offset by a pre-tax EBDT decrease in
military housing of $3,432,000 and the 2008 lease termination fee income which did not recur of
$3,978,000 at an office building in Cleveland, Ohio.
Our Land Segment provided a pre-tax EBDT increase of $7,841,000. This increase includes a reduction in fair value of the DURA purchase obligation and fee, that
resulted from the Lehman Brothers, Inc. bankruptcy of $12,434,000 in
2008, which was partially offset by lower land sales.
Our EBDT for the nine months ended October 31, 2009 increased by $74,264,000, or 50.0%, to
$222,699,000 from $148,435,000 for the nine months ended October 31, 2008. Our Commercial and
Residential Segments combined provided a pre-tax EBDT increase of $64,157,000. This is primarily
the result of decreased interest expense on our mature portfolio of $15,068,000, the ramp up of new
properties of $7,212,000, a gain on early extinguishment of nonrecourse mortgage debt of
$28,803,000, primarily at an underperforming retail project, decreased write-offs of abandoned
development projects of $17,808,000 and increased income recognized on the sale of state and federal
Historic Preservation and New Market tax credits of $4,241,000. These increases in the portfolio
were partially offset by a pre-tax EBDT decrease due to the 2008 lease termination fee income which
did not recur of $12,228,000, the decrease in military housing of
$7,117,000 and $3,283,000 in reduced EBDT from properties sold.
In addition, our Land Segment provided a pre-tax EBDT increase of $13,552,000. This increase
includes a reduction in fair value of the DURA purchase obligation
and fee, that resulted from the Lehman Brothers, Inc.
bankruptcy of $12,434,000 in 2008, and a gain on early extinguishment of nonrecourse mortgage debt of
$11,340,000. These increases were partially offset by lower land sales in addition to reduced fee
income and profit participation at Stapleton.
Corporate pre-tax EBDT decreased $11,781,000. This pre-tax EBDT decrease includes the company-wide
severance and outplacement expenses of $8,720,000 and increased corporate interest expense of
$12,191,000 (which includes the non-cash interest of the adoption of accounting guidance for
convertible instruments in 2009 only), partially offset by cost savings initiatives of $7,975,000.
The reduced losses on the Nets provided a pre-tax EBDT increase of $2,039,000. EBDT was favorably
impacted by a larger tax benefit of $6,297,000 compared to the prior year.
42
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of EBDT - The information in the following tables present amounts for both full
consolidation and pro-rata consolidation, providing a reconciliation of the difference between the
two methods, as well as a reconciliation from NOI to EBDT to net earnings (loss). Under the pro-rata
consolidation method, we present our partnership investments proportionate to our pro-rata share
for each line item of our consolidated financial statements. Under full consolidation, partnership
assets and liabilities are reported as consolidated at 100% if deemed under our control or if we
are deemed to be the primary beneficiary for investments in VIEs, or on the equity method of
accounting if we do not have control or are not the primary beneficiary for investments in VIEs.
Reconciliation of Net Loss to Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)
Three Months Ended October 31, | Nine Months Ended October 31, | ||||||||||||||||
2009 | 2008 | 2009 | 2008 | ||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||
Net loss attributable to Forest City Enterprises, Inc. |
$ | (4,384 | ) | $ | (19,115 | ) | $ | (36,852 | ) | $ | (67,903 | ) | |||||
Depreciation and amortization Real Estate Groups (4) |
71,284 | 69,725 | 218,436 | 214,173 | |||||||||||||
Amortization of mortgage procurement costs Real Estate Groups (4) |
3,888 | 3,218 | 11,733 | 10,009 | |||||||||||||
Deferred income tax expense Real Estate Groups (5) |
1,205 | (5,920 | ) | (2,294 | ) | (5,266 | ) | ||||||||||
Deferred income tax expense - Non-Real Estate Groups: (5) |
|||||||||||||||||
Gain on disposition of other investments |
- | - | - | 58 | |||||||||||||
Current income tax expense on non-operating earnings: (5) |
|||||||||||||||||
Gain on disposition included in discontinued operations |
(3,031 | ) | - | 754 | - | ||||||||||||
Gain on disposition of unconsolidated entities |
203 | (833 | ) | 203 | 506 | ||||||||||||
Straight-line rent adjustment (2) |
(3,164 | ) | (4,523 | ) | (9,553 | ) | (3,422 | ) | |||||||||
Preference payment (3) |
585 | 877 | 1,756 | 2,744 | |||||||||||||
Preferred
return on disposition |
- | - | - | 208 | |||||||||||||
Impairment of real estate |
549 | - | 3,124 | - | |||||||||||||
Impairment of unconsolidated entities |
13,200 | - | 34,663 | 6,026 | |||||||||||||
Gain on disposition of unconsolidated entities |
(4,498 | ) | (200 | ) | (4,498 | ) | (1,081 | ) | |||||||||
Gain on disposition of other investments |
- | - | - | (150 | ) | ||||||||||||
Discontinued operations: (1) |
|||||||||||||||||
Gain on disposition of rental properties |
- | - | (4,548 | ) | (8,627 | ) | |||||||||||
Impairment of real estate |
9,775 | - | 9,775 | - | |||||||||||||
Retrospective
adoption of accounting guidance for convertible debt instruments |
- | 909 | - | 1,160 | |||||||||||||
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) |
$ | 85,612 | $ | 44,138 | $ | 222,699 | $ | 148,435 | |||||||||
(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 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. |
||
(3) | The preference payment represents the respective periods share of the annual preferred
payment in connection with the issuance of Class A Common Units in exchange for Bruce C.
Ratners noncontrolling interest in the Forest City Ratner Companies portfolio. |
||
(4) | The following table provides detail of depreciation and amortization and amortization of
mortgage procurement costs. |
Depreciation and Amortization | Amortization of Mortgage Procurement Costs | |||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
October 31, | October 31, | October 31, | October 31, | |||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||
Full Consolidation |
$ | 66,393 | $ | 64,038 | $ | 199,659 | $ | 198,610 | $ | 3,562 | $ | 2,838 | $ | 10,645 | $ | 8,723 | ||||||||||||||||||
Non-Real Estate |
(3,412 | ) | (3,119 | ) | (10,372 | ) | (9,940 | ) | - | - | - | - | ||||||||||||||||||||||
Real Estate Groups Full Consolidation |
62,981 | 60,919 | 189,287 | 188,670 | 3,562 | 2,838 | 10,645 | 8,723 | ||||||||||||||||||||||||||
Real Estate Groups related to noncontrolling interest |
(1,687 | ) | (1,044 | ) | (3,412 | ) | (3,575 | ) | (126 | ) | (114 | ) | (449 | ) | (383 | ) | ||||||||||||||||||
Real Estate Groups Unconsolidated |
9,795 | 8,399 | 31,214 | 25,167 | 445 | 388 | 1,487 | 1,330 | ||||||||||||||||||||||||||
Real Estate Groups Discontinued Operations |
195 | 1,451 | 1,347 | 3,911 | 7 | 106 | 50 | 339 | ||||||||||||||||||||||||||
Real Estate Groups Pro-Rata Consolidation |
$ | 71,284 | $ | 69,725 | $ | 218,436 | $ | 214,173 | $ | 3,888 | $ | 3,218 | $ | 11,733 | $ | 10,009 | ||||||||||||||||||
43
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
(5) | The following table provides detail of Income Tax Expense (Benefit): |
Three Months Ended October 31, | Nine Months Ended October 31, | |||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||
(A) | Operating earnings |
|||||||||||||||||
Current |
$ | 3,788 | $ | (3,666 | ) | $ | (9,740 | ) | $ | (15,550 | ) | |||||||
Deferred |
(3,095 | ) | (8,328 | ) | (3,224 | ) | (10,900 | ) | ||||||||||
693 | (11,994 | ) | (12,964 | ) | (26,450 | ) | ||||||||||||
(B) | Impairment of real estate |
|||||||||||||||||
Deferred |
(212 | ) | - | (1,211 | ) | (141 | ) | |||||||||||
Deferred - Unconsolidated entities |
(5,121 | ) | - | (13,444 | ) | (2,187 | ) | |||||||||||
(5,333 | ) | - | (14,655 | ) | (2,328 | ) | ||||||||||||
(C) | Gain on disposition of other investments |
|||||||||||||||||
Current - Non-Real Estate Groups |
- | - | - | - | ||||||||||||||
Deferred - Non-Real Estate Groups |
- | - | - | 58 | ||||||||||||||
- | - | - | 58 | |||||||||||||||
(D) | Gain on disposition of unconsolidated entities |
|||||||||||||||||
Current |
203 | (833 | ) | 203 | 506 | |||||||||||||
Deferred |
1,542 | 911 | 1,542 | (168 | ) | |||||||||||||
1,745 | 78 | 1,745 | 338 | |||||||||||||||
Subtotal (A) (B) (C) (D) |
||||||||||||||||||
Current |
3,991 | (4,499 | ) | (9,537 | ) | (15,044 | ) | |||||||||||
Deferred |
(6,886 | ) | (7,417 | ) | (16,337 | ) | (13,338 | ) | ||||||||||
Income tax expense |
(2,895 | ) | (11,916 | ) | (25,874 | ) | (28,382 | ) | ||||||||||
(E) | Discontinued operations |
|||||||||||||||||
Operating earnings |
||||||||||||||||||
Current |
12 | 110 | 94 | (636 | ) | |||||||||||||
Deferred |
356 | 18 | 474 | 1,284 | ||||||||||||||
368 | 128 | 568 | 648 | |||||||||||||||
Gain on disposition of rental properties |
||||||||||||||||||
Current |
(3,031 | ) | - | 754 | - | |||||||||||||
Deferred |
3,031 | - | 1,010 | 3,333 | ||||||||||||||
- | - | 1,764 | 3,333 | |||||||||||||||
Impairment of real estate |
||||||||||||||||||
Current |
- | - | - | - | ||||||||||||||
Deferred |
(3,791 | ) | - | (3,791 | ) | - | ||||||||||||
(3,791 | ) | - | (3,791 | ) | - | |||||||||||||
(3,423 | ) | 128 | (1,459 | ) | 3,981 | |||||||||||||
Grand Total (A) (B) (C) (D) (E) |
||||||||||||||||||
Current |
972 | (4,389 | ) | (8,689 | ) | (15,680 | ) | |||||||||||
Deferred |
(7,290 | ) | (7,399 | ) | (18,644 | ) | (8,721 | ) | ||||||||||
$ | (6,318 | ) | $ | (11,788 | ) | $ | (27,333 | ) | $ | (24,401 | ) | |||||||
Recap of Grand Total: |
||||||||||||||||||
Real Estate Groups |
||||||||||||||||||
Current |
$ | 3,183 | $ | (10,642 | ) | $ | (1,026 | ) | $ | (570 | ) | |||||||
Deferred |
1,205 | (5,920 | ) | (2,294 | ) | (5,266 | ) | |||||||||||
4,388 | (16,562 | ) | (3,320 | ) | (5,836 | ) | ||||||||||||
Non-Real Estate Groups |
||||||||||||||||||
Current |
(2,211 | ) | 6,253 | (7,663 | ) | (15,110 | ) | |||||||||||
Deferred |
(8,495 | ) | (1,479 | ) | (16,350 | ) | (3,455 | ) | ||||||||||
(10,706 | ) | 4,774 | (24,013 | ) | (18,565 | ) | ||||||||||||
Grand Total |
$ | (6,318 | ) | $ | (11,788 | ) | $ | (27,333 | ) | $ | (24,401 | ) | ||||||
44
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Three Months
Ended October 31, 2009 and 2008 (in thousands)
Commercial Group 2009 | Commercial Group 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | 241,317 | $ | 10,612 | $ | 28,032 | $ | - | $ | 258,737 | $ | 247,643 | $ | 10,438 | $ | 27,876 | $ | 999 | $ | 266,080 | |||||||||||||||||||||
Exclude straight-line rent adjustment |
(4,759 | ) | - | - | - | (4,759 | ) | (6,061 | ) | - | - | (48 | ) | (6,109 | ) | ||||||||||||||||||||||||||
Adjusted revenues |
236,558 | 10,612 | 28,032 | - | 253,978 | 241,582 | 10,438 | 27,876 | 951 | 259,971 | |||||||||||||||||||||||||||||||
Operating expenses |
116,634 | 5,241 | 14,473 | - | 125,866 | 123,587 | 4,278 | 15,201 | 296 | 134,806 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
1,591 | - | - | - | 1,591 | 1,520 | - | - | - | 1,520 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
(1,611 | ) | - | - | - | (1,611 | ) | (1,587 | ) | - | - | - | (1,587 | ) | |||||||||||||||||||||||||||
Exclude preference payment |
(585 | ) | - | - | - | (585 | ) | (877 | ) | - | - | - | (877 | ) | |||||||||||||||||||||||||||
Adjusted operating expenses |
116,029 | 5,241 | 14,473 | - | 125,261 | 122,643 | 4,278 | 15,201 | 296 | 133,862 | |||||||||||||||||||||||||||||||
Add interest and other income |
843 | 17 | 1,481 | - | 2,307 | 1,255 | 74 | 977 | 1 | 2,159 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
(3,831 | ) | 1 | 3,830 | - | (2 | ) | 2,227 | 2 | (2,226 | ) | - | (1 | ) | |||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
- | - | - | - | - | (200 | ) | - | 200 | - | - | ||||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
7,217 | - | (7,217 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
4,410 | - | (4,410 | ) | - | - | 3,996 | - | (3,996 | ) | - | - | |||||||||||||||||||||||||||||
Net operating income |
129,168 | 5,389 | 7,243 | - | 131,022 | 126,217 | 6,236 | 7,630 | 656 | 128,267 | |||||||||||||||||||||||||||||||
Interest expense |
62,770 | 3,599 | 7,243 | - | 66,414 | 64,777 | 3,129 | 7,630 | 404 | 69,682 | |||||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
(24,219 | ) | - | - | - | (24,219 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
1,790 | 1,790 | - | - | - | 3,107 | 3,107 | - | - | - | |||||||||||||||||||||||||||||||
Exclude
retrospective adoption of accounting guidance for convertible debt
instruments |
- | - | - | - | - | 1,359 | - | - | - | 1,359 | |||||||||||||||||||||||||||||||
Add: Pre-Tax
EBDT from discontinued operations |
- | - | - | - | - | 252 | - | - | (252 | ) | - | ||||||||||||||||||||||||||||||
Pre-Tax
EBDT |
88,827 | - | - | - | 88,827 | 57,226 | - | - | - | 57,226 | |||||||||||||||||||||||||||||||
Income tax expense (benefit) |
3,713 | - | - | - | 3,713 | 1,334 | - | - | - | 1,334 | |||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 85,114 | $ | - | $ | - | $ | - | $ | 85,114 | $ | 55,892 | $ | - | $ | - | $ | - | $ | 55,892 | |||||||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 85,114 | $ | - | $ | - | $ | - | $ | 85,114 | $ | 55,892 | $ | - | $ | - | $ | - | $ | 55,892 | |||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(51,995 | ) | - | - | - | (51,995 | ) | (49,582 | ) | - | - | (300 | ) | (49,882 | ) | ||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(3,214 | ) | - | - | - | (3,214 | ) | (2,250 | ) | - | - | (7 | ) | (2,257 | ) | ||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(10,078 | ) | - | - | - | (10,078 | ) | (2,016 | ) | - | - | (7 | ) | (2,023 | ) | ||||||||||||||||||||||||||
Straight-line rent adjustment |
3,148 | - | - | - | 3,148 | 4,474 | - | - | 48 | 4,522 | |||||||||||||||||||||||||||||||
Preference payment |
(585 | ) | - | - | - | (585 | ) | (877 | ) | - | - | - | (877 | ) | |||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | - | - | - | - | - | 122 | - | 122 | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
- | - | - | - | - | 122 | - | (122 | ) | - | - | ||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | (4,417 | ) | - | (4,417 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
(4,417 | ) | - | 4,417 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Retrospective
adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | 1,359 | - | - | - | 1,359 | |||||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | (300 | ) | - | - | 300 | - | ||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | (7 | ) | - | - | 7 | - | ||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
- | - | - | - | - | (7 | ) | - | - | 7 | - | ||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | 48 | - | - | (48 | ) | - | ||||||||||||||||||||||||||||||
Gain on disposition of rental properties |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | 17,973 | $ | - | $ | - | $ | - | $ | 17,973 | $ | 6,856 | $ | - | $ | - | $ | - | $ | 6,856 | |||||||||||||||||||||
45
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Three Months
Ended October 31, 2009 and 2008 (in thousands) (continued)
Residential Group 2009 | Residential Group 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | 58,663 | $ | 1,491 | $ | 38,694 | $ | 1,688 | $ | 97,554 | $ | 72,475 | $ | 5,353 | $ | 51,740 | $ | 3,150 | $ | 122,012 | |||||||||||||||||||||
Exclude straight-line rent adjustment |
(15 | ) | - | - | - | (15 | ) | (2 | ) | - | - | - | (2 | ) | |||||||||||||||||||||||||||
Adjusted revenues |
58,648 | 1,491 | 38,694 | 1,688 | 97,539 | 72,473 | 5,353 | 51,740 | 3,150 | 122,010 | |||||||||||||||||||||||||||||||
Operating expenses |
35,110 | 643 | 23,784 | 35 | 58,286 | 44,455 | 1,173 | 37,625 | 120 | 81,027 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
954 | - | - | - | 954 | 777 | - | - | - | 777 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
1 | - | - | - | 1 | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted operating expenses |
36,065 | 643 | 23,784 | 35 | 59,241 | 45,232 | 1,173 | 37,625 | 120 | 81,804 | |||||||||||||||||||||||||||||||
Add interest and other income |
2,712 | 8 | 93 | - | 2,797 | 3,743 | 62 | (444 | ) | 36 | 3,273 | ||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
1,814 | (14 | ) | (1,732 | ) | - | 96 | 2,225 | 108 | (2,305 | ) | - | (188 | ) | |||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
(4,498 | ) | - | 4,498 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
4,713 | - | (4,713 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
5,784 | - | (5,784 | ) | - | - | 4,733 | - | (4,733 | ) | - | - | |||||||||||||||||||||||||||||
Net operating income |
33,108 | 842 | 7,272 | 1,653 | 41,191 | 37,942 | 4,350 | 6,633 | 3,066 | 43,291 | |||||||||||||||||||||||||||||||
Interest expense |
5,512 | 349 | 7,272 | 502 | 12,937 | 12,411 | 457 | 6,604 | 1,479 | 20,037 | |||||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
- | - | - | - | - | - | - | 29 | - | 29 | |||||||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
493 | 493 | - | - | - | 3,893 | 3,893 | - | - | - | |||||||||||||||||||||||||||||||
Exclude retrospective adoption of accounting guidance for convertible debt
instruments |
- | - | - | - | - | 306 | - | - | - | 306 | |||||||||||||||||||||||||||||||
Add: Pre-Tax EBDT from discontinued operations |
1,151 | - | - | (1,151 | ) | - | 1,587 | - | - | (1,587 | ) | - | |||||||||||||||||||||||||||||
Pre-Tax EBDT |
28,254 | - | - | - | 28,254 | 22,919 | - | - | - | 22,919 | |||||||||||||||||||||||||||||||
Income tax expense (benefit) |
1,462 | - | - | - | 1,462 | (3,253 | ) | - | - | - | (3,253 | ) | |||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 26,792 | $ | - | $ | - | $ | - | $ | 26,792 | $ | 26,172 | $ | - | $ | - | $ | - | $ | 26,172 | |||||||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 26,792 | $ | - | $ | - | $ | - | $ | 26,792 | $ | 26,172 | $ | - | $ | - | $ | - | $ | 26,172 | |||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(19,007 | ) | - | - | (195 | ) | (19,202 | ) | (18,523 | ) | - | - | (1,151 | ) | (19,674 | ) | |||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(602 | ) | - | - | (7 | ) | (609 | ) | (781 | ) | - | - | (99 | ) | (880 | ) | |||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(1,950 | ) | - | - | (356 | ) | (2,306 | ) | (4,041 | ) | - | - | (11 | ) | (4,052 | ) | |||||||||||||||||||||||||
Straight-line rent adjustment |
16 | - | - | - | 16 | 2 | - | - | - | 2 | |||||||||||||||||||||||||||||||
Preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | 2,753 | - | 2,753 | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
2,753 | - | (2,753 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | (2,885 | ) | (5,984 | ) | (8,869 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
(2,885 | ) | - | 2,885 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Retrospective
adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | 306 | - | - | - | 306 | |||||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(195 | ) | - | - | 195 | - | (1,151 | ) | - | - | 1,151 | - | |||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(7 | ) | - | - | 7 | - | (99 | ) | - | - | 99 | - | |||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(356 | ) | - | - | 356 | - | (11 | ) | - | - | 11 | - | |||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
(5,984 | ) | - | - | 5,984 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | (1,425 | ) | $ | - | $ | - | $ | - | $ | (1,425 | ) | $ | 1,874 | $ | - | $ | - | $ | - | $ | 1,874 | |||||||||||||||||||
46
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Three Months
Ended October 31, 2009 and 2008 (in thousands) (continued)
Land Development Group 2009 | Land Development Group 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | 6,120 | $ | 344 | $ | 1,658 | $ | - | $ | 7,434 | $ | 10,263 | $ | 338 | $ | 4,128 | $ | - | $ | 14,053 | |||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | 1 | - | - | - | 1 | |||||||||||||||||||||||||||||||
Adjusted revenues |
6,120 | 344 | 1,658 | - | 7,434 | 10,264 | 338 | 4,128 | - | 14,054 | |||||||||||||||||||||||||||||||
Operating expenses |
11,224 | 392 | 1,593 | - | 12,425 | 25,323 | 1,844 | 2,583 | - | 26,062 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
135 | - | - | - | 135 | 129 | - | - | - | 129 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted operating expenses |
11,359 | 392 | 1,593 | - | 12,560 | 25,452 | 1,844 | 2,583 | - | 26,191 | |||||||||||||||||||||||||||||||
Add interest and other income |
1,759 | 175 | 13 | - | 1,597 | 1,676 | 157 | 5 | - | 1,524 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
1,034 | - | (529 | ) | - | 505 | 2,209 | - | (1,403 | ) | - | 806 | |||||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
1,270 | - | (1,270 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
46 | - | (46 | ) | - | - | 58 | - | (58 | ) | - | - | |||||||||||||||||||||||||||||
Net operating income |
(1,130 | ) | 127 | (1,767 | ) | - | (3,024 | ) | (11,245 | ) | (1,349 | ) | 89 | - | (9,807 | ) | |||||||||||||||||||||||||
Interest expense |
817 | 84 | 107 | - | 840 | (127 | ) | 31 | 89 | - | (69 | ) | |||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
- | - | (1,874 | ) | - | (1,874 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
43 | 43 | - | - | - | (1,380 | ) | (1,380 | ) | - | - | - | |||||||||||||||||||||||||||||
Exclude retrospective adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | 93 | - | - | - | 93 | |||||||||||||||||||||||||||||||
Add: Pre-Tax EBDT from discontinued operations |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Pre-Tax EBDT |
(1,990 | ) | - | - | - | (1,990 | ) | (9,831 | ) | - | - | - | (9,831 | ) | |||||||||||||||||||||||||||
Income tax expense (benefit) |
1,031 | - | - | - | 1,031 | 3,391 | - | - | - | 3,391 | |||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | (3,021 | ) | $ | - | $ | - | $ | - | $ | (3,021 | ) | $ | (13,222 | ) | $ | - | $ | - | $ | - | $ | (13,222 | ) | |||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | (3,021 | ) | $ | - | $ | - | $ | - | $ | (3,021 | ) | $ | (13,222 | ) | $ | - | $ | - | $ | - | $ | (13,222 | ) | |||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(87 | ) | - | - | - | (87 | ) | (169 | ) | - | - | - | (169 | ) | |||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(65 | ) | - | - | - | (65 | ) | (81 | ) | - | - | - | (81 | ) | |||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
1,657 | - | - | - | 1,657 | 7,702 | - | - | - | 7,702 | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | (1 | ) | - | - | - | (1 | ) | |||||||||||||||||||||||||||||
Preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
(336 | ) | - | (778 | ) | - | (1,114 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
(778 | ) | - | 778 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Retrospective adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | 93 | - | - | - | 93 | |||||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | (2,630 | ) | $ | - | $ | - | $ | - | $ | (2,630 | ) | $ | (5,678 | ) | $ | - | $ | - | $ | - | $ | (5,678 | ) | |||||||||||||||||
47
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Three Months
Ended October 31, 2009 and 2008 (in thousands) (continued)
The Nets 2009 | The Nets 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | - | $ | - | $ | 6,144 | $ | - | $ | 6,144 | $ | - | $ | - | $ | 4,058 | $ | - | $ | 4,058 | |||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted revenues |
- | - | 6,144 | - | 6,144 | - | - | 4,058 | - | 4,058 | |||||||||||||||||||||||||||||||
Operating expenses |
- | - | 12,060 | - | 12,060 | - | - | 10,687 | - | 10,687 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
- | - | 2,512 | - | 2,512 | - | - | 1,390 | - | 1,390 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted operating expenses |
- | - | 14,572 | - | 14,572 | - | - | 12,077 | - | 12,077 | |||||||||||||||||||||||||||||||
Add interest and other income |
- | - | 74 | - | 74 | - | - | 64 | - | 64 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
(10,853 | ) | - | 10,853 | - | - | (9,859 | ) | - | 9,859 | - | - | |||||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net operating income |
(10,853 | ) | - | 2,499 | - | (8,354 | ) | (9,859 | ) | - | 1,904 | - | (7,955 | ) | |||||||||||||||||||||||||||
Interest expense |
- | - | 2,499 | - | 2,499 | - | - | 1,904 | - | 1,904 | |||||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude
retrospective adoption of accounting guidance for convertible debt
instruments |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Add: Pre-Tax
EBDT from discontinued operations |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Pre-Tax EBDT |
(10,853 | ) | - | - | - | (10,853 | ) | (9,859 | ) | - | - | - | (9,859 | ) | |||||||||||||||||||||||||||
Income tax expense (benefit) |
(3,788 | ) | - | - | - | (3,788 | ) | (3,377 | ) | - | - | - | (3,377 | ) | |||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | (7,065 | ) | $ | - | $ | - | $ | - | $ | (7,065 | ) | $ | (6,482 | ) | $ | - | $ | - | $ | - | $ | (6,482 | ) | |||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | (7,065 | ) | $ | - | $ | - | $ | - | $ | (7,065 | ) | $ | (6,482 | ) | $ | - | $ | - | $ | - | $ | (6,482 | ) | |||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Retrospective adoption of accounting guidance for convertible debt
instruments |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | (7,065 | ) | $ | - | $ | - | $ | - | $ | (7,065 | ) | $ | (6,482 | ) | $ | - | $ | - | $ | - | $ | (6,482 | ) | |||||||||||||||||
48
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Three Months
Ended October 31, 2009 and 2008 (in thousands) (continued)
Corporate Activities 2009 | Corporate Activities 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted revenues |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Operating expenses |
8,716 | - | - | - | 8,716 | 7,076 | - | - | - | 7,076 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
732 | - | - | - | 732 | 693 | - | - | - | 693 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted operating expenses |
9,448 | - | - | - | 9,448 | 7,769 | - | - | - | 7,769 | |||||||||||||||||||||||||||||||
Add interest and other income |
208 | - | - | - | 208 | 78 | - | - | - | 78 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net operating income |
(9,240 | ) | - | - | - | (9,240 | ) | (7,691 | ) | - | - | - | (7,691 | ) | |||||||||||||||||||||||||||
Interest expense |
18,764 | - | - | - | 18,764 | 20,020 | - | - | - | 20,020 | |||||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
(4,683 | ) | - | - | - | (4,683 | ) | (3,692 | ) | - | - | - | (3,692 | ) | |||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude
retrospective adoption of accounting guidance for convertible debt
instruments |
- | - | - | - | - | (2,667 | ) | - | - | - | (2,667 | ) | |||||||||||||||||||||||||||||
Add: Pre-Tax
EBDT from discontinued operations |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Pre-Tax EBDT |
(23,321 | ) | - | - | - | (23,321 | ) | (21,352 | ) | - | - | - | (21,352 | ) | |||||||||||||||||||||||||||
Income tax expense (benefit) |
(7,113 | ) | - | - | - | (7,113 | ) | (3,130 | ) | - | - | - | (3,130 | ) | |||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | (16,208 | ) | $ | - | $ | - | $ | - | $ | (16,208 | ) | $ | (18,222 | ) | $ | - | $ | - | $ | - | $ | (18,222 | ) | |||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | (16,208 | ) | $ | - | $ | - | $ | - | $ | (16,208 | ) | $ | (18,222 | ) | $ | - | $ | - | $ | - | $ | (18,222 | ) | |||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
4,971 | - | - | - | 4,971 | 5,204 | - | - | - | 5,204 | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Retrospective adoption of accounting guidance for convertible debt
instruments |
- | - | - | - | - | (2,667 | ) | - | - | - | (2,667 | ) | |||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | (11,237 | ) | $ | - | $ | - | $ | - | $ | (11,237 | ) | $ | (15,685 | ) | $ | - | $ | - | $ | - | $ | (15,685 | ) | |||||||||||||||||
49
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Three Months
Ended October 31, 2009 and 2008 (in thousands) (continued)
Total 2009 | Total 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | 306,100 | $ | 12,447 | $ | 74,528 | $ | 1,688 | $ | 369,869 | $ | 330,381 | $ | 16,129 | $ | 87,802 | $ | 4,149 | $ | 406,203 | |||||||||||||||||||||
Exclude straight-line rent adjustment |
(4,774 | ) | - | - | - | (4,774 | ) | (6,062 | ) | - | - | (48 | ) | (6,110 | ) | ||||||||||||||||||||||||||
Adjusted revenues |
301,326 | 12,447 | 74,528 | 1,688 | 365,095 | 324,319 | 16,129 | 87,802 | 4,101 | 400,093 | |||||||||||||||||||||||||||||||
Operating expenses |
171,684 | 6,276 | 51,910 | 35 | 217,353 | 200,441 | 7,295 | 66,096 | 416 | 259,658 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
3,412 | - | 2,512 | - | 5,924 | 3,119 | - | 1,390 | - | 4,509 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
(1,610 | ) | - | - | - | (1,610 | ) | (1,587 | ) | - | - | - | (1,587 | ) | |||||||||||||||||||||||||||
Exclude preference payment |
(585 | ) | - | - | - | (585 | ) | (877 | ) | - | - | - | (877 | ) | |||||||||||||||||||||||||||
Adjusted operating expenses |
172,901 | 6,276 | 54,422 | 35 | 221,082 | 201,096 | 7,295 | 67,486 | 416 | 261,703 | |||||||||||||||||||||||||||||||
Add interest and other income |
5,522 | 200 | 1,661 | - | 6,983 | 6,752 | 293 | 602 | 37 | 7,098 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
(11,836 | ) | (13 | ) | 12,422 | - | 599 | (3,198 | ) | 110 | 3,925 | - | 617 | ||||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
(4,498 | ) | - | 4,498 | - | - | (200 | ) | - | 200 | - | - | |||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
13,200 | - | (13,200 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
10,240 | - | (10,240 | ) | - | - | 8,787 | - | (8,787 | ) | - | - | |||||||||||||||||||||||||||||
Net operating income |
141,053 | 6,358 | 15,247 | 1,653 | 151,595 | 135,364 | 9,237 | 16,256 | 3,722 | 146,105 | |||||||||||||||||||||||||||||||
Interest expense |
87,863 | 4,032 | 17,121 | 502 | 101,454 | 97,081 | 3,617 | 16,227 | 1,883 | 111,574 | |||||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
(28,902 | ) | - | (1,874 | ) | - | (30,776 | ) | (3,692 | ) | - | 29 | - | (3,663 | ) | ||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
2,326 | 2,326 | - | - | - | 5,620 | 5,620 | - | - | - | |||||||||||||||||||||||||||||||
Exclude retrospective adoption of accounting guidance for convertible debt
instruments |
- | - | - | - | - | (909 | ) | - | - | - | (909 | ) | |||||||||||||||||||||||||||||
Add: Pre-Tax
EBDT from discontinued operations |
1,151 | - | - | (1,151 | ) | - | 1,839 | - | - | (1,839 | ) | - | |||||||||||||||||||||||||||||
Pre-Tax EBDT |
80,917 | - | - | - | 80,917 | 39,103 | - | - | - | 39,103 | |||||||||||||||||||||||||||||||
Income tax expense (benefit) |
(4,695 | ) | - | - | - | (4,695 | ) | (5,035 | ) | - | - | - | (5,035 | ) | |||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 85,612 | $ | - | $ | - | $ | - | $ | 85,612 | $ | 44,138 | $ | - | $ | - | $ | - | $ | 44,138 | |||||||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 85,612 | $ | - | $ | - | $ | - | $ | 85,612 | $ | 44,138 | $ | - | $ | - | $ | - | $ | 44,138 | |||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(71,089 | ) | - | - | (195 | ) | (71,284 | ) | (68,274 | ) | - | - | (1,451 | ) | (69,725 | ) | |||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(3,881 | ) | - | - | (7 | ) | (3,888 | ) | (3,112 | ) | - | - | (106 | ) | (3,218 | ) | |||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(5,400 | ) | - | - | (356 | ) | (5,756 | ) | 6,849 | - | - | (18 | ) | 6,831 | |||||||||||||||||||||||||||
Straight-line rent adjustment |
3,164 | - | - | - | 3,164 | 4,475 | - | - | 48 | 4,523 | |||||||||||||||||||||||||||||||
Preference payment |
(585 | ) | - | - | - | (585 | ) | (877 | ) | - | - | - | (877 | ) | |||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | 2,753 | - | 2,753 | - | - | 122 | - | 122 | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
2,753 | - | (2,753 | ) | - | - | 122 | - | (122 | ) | - | - | |||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
(336 | ) | - | (8,080 | ) | (5,984 | ) | (14,400 | ) | - | - | - | - | - | |||||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
(8,080 | ) | - | 8,080 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Retrospective adoption of accounting guidance for convertible debt
instruments |
- | - | - | - | - | (909 | ) | - | - | - | (909 | ) | |||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(195 | ) | - | - | 195 | - | (1,451 | ) | - | - | 1,451 | - | |||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(7 | ) | - | - | 7 | - | (106 | ) | - | - | 106 | - | |||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(356 | ) | - | - | 356 | - | (18 | ) | - | - | 18 | - | |||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | 48 | - | - | (48 | ) | - | ||||||||||||||||||||||||||||||
Gain on disposition of rental properties |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
(5,984 | ) | - | - | 5,984 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | (4,384 | ) | $ | - | $ | - | $ | - | $ | (4,384 | ) | $ | (19,115 | ) | $ | - | $ | - | $ | - | $ | (19,115 | ) | |||||||||||||||||
50
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Nine Months Ended
October 31, 2009 and 2008 (in thousands)
Commercial Group 2009 | Commercial Group 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | 720,755 | $ | 32,960 | $ | 83,078 | $ | 813 | $ | 771,686 | $ | 715,991 | $ | 29,351 | $ | 82,172 | $ | 2,958 | $ | 771,770 | |||||||||||||||||||||
Exclude straight-line rent adjustment |
(14,367 | ) | - | - | (12 | ) | (14,379 | ) | (8,036 | ) | - | - | (147 | ) | (8,183 | ) | |||||||||||||||||||||||||
Adjusted revenues |
706,388 | 32,960 | 83,078 | 801 | 757,307 | 707,955 | 29,351 | 82,172 | 2,811 | 763,587 | |||||||||||||||||||||||||||||||
Operating expenses |
343,224 | 15,341 | 44,860 | 320 | 373,063 | 375,932 | 10,175 | 45,228 | 944 | 411,929 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
4,876 | - | - | - | 4,876 | 4,630 | - | - | - | 4,630 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
(4,857 | ) | - | - | - | (4,857 | ) | (4,780 | ) | - | - | - | (4,780 | ) | |||||||||||||||||||||||||||
Exclude preference payment |
(1,756 | ) | - | - | - | (1,756 | ) | (2,744 | ) | - | - | - | (2,744 | ) | |||||||||||||||||||||||||||
Adjusted operating expenses |
341,487 | 15,341 | 44,860 | 320 | 371,326 | 373,038 | 10,175 | 45,228 | 944 | 409,035 | |||||||||||||||||||||||||||||||
Add interest and other income |
2,645 | (43 | ) | 2,125 | - | 4,813 | 7,599 | 298 | 2,052 | 6 | 9,359 | ||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
(3,863 | ) | 1 | 3,862 | - | (2 | ) | 4,092 | (30 | ) | (4,272 | ) | - | (150 | ) | ||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
- | - | - | - | - | (1,081 | ) | - | 1,081 | - | - | ||||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
8,828 | - | (8,828 | ) | - | - | 1,263 | - | (1,263 | ) | - | - | |||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
12,895 | - | (12,895 | ) | - | - | 11,710 | - | (11,710 | ) | - | - | |||||||||||||||||||||||||||||
Net operating income |
385,406 | 17,577 | 22,482 | 481 | 390,792 | 358,500 | 19,444 | 22,832 | 1,873 | 363,761 | |||||||||||||||||||||||||||||||
Interest expense |
175,916 | 9,571 | 22,482 | 322 | 189,149 | 177,171 | 9,148 | 22,832 | 1,196 | 192,051 | |||||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
(24,219 | ) | - | - | - | (24,219 | ) | 1,479 | 119 | - | - | 1,360 | |||||||||||||||||||||||||||||
Preferred return on disposition |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
8,006 | 8,006 | - | - | - | 10,177 | 10,177 | - | - | - | |||||||||||||||||||||||||||||||
Exclude
retrospective adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | 4,615 | - | - | - | 4,615 | |||||||||||||||||||||||||||||||
Add: Pre-Tax EBDT from discontinued operations |
159 | - | - | (159 | ) | - | 677 | - | - | (677 | ) | - | |||||||||||||||||||||||||||||
Pre-Tax EBDT |
225,862 | - | - | - | 225,862 | 165,735 | - | - | - | 165,735 | |||||||||||||||||||||||||||||||
Income tax expense (benefit) |
8,088 | - | - | - | 8,088 | 2,717 | - | - | - | 2,717 | |||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 217,774 | $ | - | $ | - | $ | - | $ | 217,774 | $ | 163,018 | $ | - | $ | - | $ | - | $ | 163,018 | |||||||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 217,774 | $ | - | $ | - | $ | - | $ | 217,774 | $ | 163,018 | $ | - | $ | - | $ | - | $ | 163,018 | |||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(157,683 | ) | - | - | (107 | ) | (157,790 | ) | (155,294 | ) | - | - | (678 | ) | (155,972 | ) | |||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(9,322 | ) | - | - | (5 | ) | (9,327 | ) | (7,282 | ) | - | - | (21 | ) | (7,303 | ) | |||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(12,471 | ) | - | - | (31 | ) | (12,502 | ) | (13 | ) | - | - | (24 | ) | (37 | ) | |||||||||||||||||||||||||
Straight-line rent adjustment |
9,510 | - | - | 12 | 9,522 | 3,256 | - | - | 147 | 3,403 | |||||||||||||||||||||||||||||||
Preference payment |
(1,756 | ) | - | - | - | (1,756 | ) | (2,744 | ) | - | - | - | (2,744 | ) | |||||||||||||||||||||||||||
Preferred return on disposition, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | - | 2,784 | 2,784 | - | - | 663 | - | 663 | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
- | - | - | - | - | 663 | - | (663 | ) | - | - | ||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | (5,404 | ) | - | (5,404 | ) | - | - | (775 | ) | - | (775 | ) | |||||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
(5,404 | ) | - | 5,404 | - | - | (775 | ) | - | 775 | - | - | |||||||||||||||||||||||||||||
Retrospective
adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | 4,615 | - | - | - | 4,615 | |||||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(107 | ) | - | - | 107 | - | (678 | ) | - | - | 678 | - | |||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(5 | ) | - | - | 5 | - | (21 | ) | - | - | 21 | - | |||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(31 | ) | - | - | 31 | - | (24 | ) | - | - | 24 | - | |||||||||||||||||||||||||||||
Straight-line rent adjustment |
12 | - | - | (12 | ) | - | 147 | - | - | (147 | ) | - | |||||||||||||||||||||||||||||
Gain on disposition of rental properties |
2,784 | - | - | (2,784 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | 43,301 | $ | - | $ | - | $ | - | $ | 43,301 | $ | 4,868 | $ | - | $ | - | $ | - | $ | 4,868 | |||||||||||||||||||||
51
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Nine Months Ended
October 31, 2009 and 2008 (in thousands) (continued)
Residential Group 2009 | Residential Group 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | 198,643 | $ | 4,221 | $ | 140,264 | $ | 4,663 | $ | 339,349 | $ | 220,172 | $ | 17,300 | $ | 155,163 | $ | 10,156 | $ | 368,191 | |||||||||||||||||||||
Exclude straight-line rent adjustment |
(31 | ) | - | - | - | (31 | ) | (21 | ) | - | - | - | (21 | ) | |||||||||||||||||||||||||||
Adjusted revenues |
198,612 | 4,221 | 140,264 | 4,663 | 339,318 | 220,151 | 17,300 | 155,163 | 10,156 | 368,170 | |||||||||||||||||||||||||||||||
Operating expenses |
134,110 | 1,060 | 94,526 | 110 | 227,686 | 142,655 | 11,237 | 109,983 | 660 | 242,061 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
2,871 | - | - | - | 2,871 | 2,694 | - | - | - | 2,694 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted operating expenses |
136,981 | 1,060 | 94,526 | 110 | 230,557 | 145,349 | 11,237 | 109,983 | 660 | 244,755 | |||||||||||||||||||||||||||||||
Add interest and other income |
12,842 | 59 | 489 | - | 13,272 | 9,861 | 170 | 1,499 | 130 | 11,320 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
(14,856 | ) | (82 | ) | 15,055 | - | 281 | 2,937 | 13 | (3,417 | ) | - | (493 | ) | |||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
(4,498 | ) | - | 4,498 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
24,303 | - | (24,303 | ) | - | - | 4,398 | - | (4,398 | ) | - | - | |||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
19,608 | - | (19,608 | ) | - | - | 14,604 | - | (14,604 | ) | - | - | |||||||||||||||||||||||||||||
Net operating income |
99,030 | 3,138 | 21,869 | 4,553 | 122,314 | 106,602 | 6,246 | 24,260 | 9,626 | 134,242 | |||||||||||||||||||||||||||||||
Interest expense |
21,460 | 1,056 | 21,693 | 1,862 | 43,959 | 28,359 | 1,121 | 24,001 | 4,525 | 55,764 | |||||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
403 | - | 176 | - | 579 | 3,752 | - | 51 | - | 3,803 | |||||||||||||||||||||||||||||||
Preferred return on disposition |
- | - | - | - | - | 208 | - | (208 | ) | - | - | ||||||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
2,082 | 2,082 | - | - | - | 5,125 | 5,125 | - | - | - | |||||||||||||||||||||||||||||||
Exclude retrospective adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | 929 | - | - | - | 929 | |||||||||||||||||||||||||||||||
Add: Pre-Tax EBDT from discontinued operations |
2,691 | - | - | (2,691 | ) | - | 5,101 | - | - | (5,101 | ) | - | |||||||||||||||||||||||||||||
Pre-Tax EBDT |
77,776 | - | - | - | 77,776 | 73,746 | - | - | - | 73,746 | |||||||||||||||||||||||||||||||
Income tax expense (benefit) |
(4,341 | ) | - | - | - | (4,341 | ) | 3 | - | - | - | 3 | |||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 82,117 | $ | - | $ | - | $ | - | $ | 82,117 | $ | 73,743 | $ | - | $ | - | $ | - | $ | 73,743 | |||||||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 82,117 | $ | - | $ | - | $ | - | $ | 82,117 | $ | 73,743 | $ | - | $ | - | $ | - | $ | 73,743 | |||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(59,131 | ) | - | - | (1,240 | ) | (60,371 | ) | (54,648 | ) | - | - | (3,233 | ) | (57,881 | ) | |||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(1,951 | ) | - | - | (45 | ) | (1,996 | ) | (2,053 | ) | - | - | (318 | ) | (2,371 | ) | |||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(9,929 | ) | - | - | (443 | ) | (10,372 | ) | (3,366 | ) | - | - | (1,260 | ) | (4,626 | ) | |||||||||||||||||||||||||
Straight-line rent adjustment |
31 | - | - | - | 31 | 21 | - | - | - | 21 | |||||||||||||||||||||||||||||||
Preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Preferred return on disposition, net of tax |
- | - | - | - | - | (128 | ) | - | - | - | (128 | ) | |||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | 2,753 | - | 2,753 | - | - | - | 5,294 | 5,294 | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
2,753 | - | (2,753 | ) | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
(897 | ) | - | (14,877 | ) | (5,984 | ) | (21,758 | ) | - | - | (2,699 | ) | - | (2,699 | ) | |||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
(14,877 | ) | - | 14,877 | - | - | (2,699 | ) | - | 2,699 | - | - | |||||||||||||||||||||||||||||
Retrospective adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | 929 | - | - | - | 929 | |||||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(1,240 | ) | - | - | 1,240 | - | (3,233 | ) | - | - | 3,233 | - | |||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(45 | ) | - | - | 45 | - | (318 | ) | - | - | 318 | - | |||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(443 | ) | - | - | 443 | - | (1,260 | ) | - | - | 1,260 | - | |||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties |
- | - | - | - | - | 5,294 | - | - | (5,294 | ) | - | ||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
(5,984 | ) | - | - | 5,984 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | (9,596 | ) | $ | - | $ | - | $ | - | $ | (9,596 | ) | $ | 12,282 | $ | - | $ | - | $ | - | $ | 12,282 | |||||||||||||||||||
52
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Nine Months Ended
October 31, 2009 and 2008 (in thousands) (continued)
Land Development Group 2009 | Land Development Group 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | 13,491 | $ | 827 | $ | 8,778 | $ | - | $ | 21,442 | $ | 23,844 | $ | 1,044 | $ | 13,158 | $ | - | $ | 35,958 | |||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | 2 | - | - | - | 2 | |||||||||||||||||||||||||||||||
Adjusted revenues |
13,491 | 827 | 8,778 | - | 21,442 | 23,846 | 1,044 | 13,158 | - | 35,960 | |||||||||||||||||||||||||||||||
Operating expenses |
24,049 | 1,177 | 6,036 | - | 28,908 | 44,847 | 2,926 | 7,916 | - | 49,837 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
406 | - | - | - | 406 | 412 | - | - | - | 412 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted operating expenses |
24,455 | 1,177 | 6,036 | - | 29,314 | 45,259 | 2,926 | 7,916 | - | 50,249 | |||||||||||||||||||||||||||||||
Add interest and other income |
7,456 | 527 | 37 | - | 6,966 | 9,714 | 952 | 44 | - | 8,806 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
3,420 | - | (2,651 | ) | - | 769 | 6,064 | - | (4,371 | ) | - | 1,693 | |||||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
1,532 | - | (1,532 | ) | - | - | 365 | - | (365 | ) | - | - | |||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
198 | - | (198 | ) | - | - | 183 | - | (183 | ) | - | - | |||||||||||||||||||||||||||||
Net operating income |
1,642 | 177 | (1,602 | ) | - | (137 | ) | (5,087 | ) | (930 | ) | 367 | - | (3,790 | ) | ||||||||||||||||||||||||||
Interest expense |
1,623 | 205 | 272 | - | 1,690 | (299 | ) | 90 | 367 | - | (22 | ) | |||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
(9,466 | ) | - | (1,874 | ) | - | (11,340 | ) | - | - | - | - | - | ||||||||||||||||||||||||||||
Preferred return on disposition |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
(28 | ) | (28 | ) | - | - | - | (1,020 | ) | (1,020 | ) | - | - | - | |||||||||||||||||||||||||||
Exclude retrospective adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | 271 | - | - | - | 271 | |||||||||||||||||||||||||||||||
Add: Pre-Tax EBDT from discontinued operations |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Pre-Tax EBDT |
9,513 | - | - | - | 9,513 | (4,039 | ) | - | - | - | (4,039 | ) | |||||||||||||||||||||||||||||
Income tax expense (benefit) |
1,695 | - | - | - | 1,695 | 7,485 | - | - | - | 7,485 | |||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 7,818 | $ | - | $ | - | $ | - | $ | 7,818 | $ | (11,524 | ) | $ | - | $ | - | $ | - | $ | (11,524 | ) | |||||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 7,818 | $ | - | $ | - | $ | - | $ | 7,818 | $ | (11,524 | ) | $ | - | $ | - | $ | - | $ | (11,524 | ) | |||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(275 | ) | - | - | - | (275 | ) | (320 | ) | - | - | - | (320 | ) | |||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(410 | ) | - | - | - | (410 | ) | (335 | ) | - | - | - | (335 | ) | |||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(1,829 | ) | - | - | - | (1,829 | ) | 9,543 | - | - | - | 9,543 | |||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | (2 | ) | - | - | - | (2 | ) | |||||||||||||||||||||||||||||
Preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Preferred return on disposition, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
(1,016 | ) | - | (938 | ) | - | (1,954 | ) | - | - | (224 | ) | - | (224 | ) | ||||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
(938 | ) | - | 938 | - | - | (224 | ) | - | 224 | - | - | |||||||||||||||||||||||||||||
Retrospective adoption
of accounting guidance for convertible debt instruments |
- | - | - | - | - | 271 | - | - | - | 271 | |||||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | 3,350 | $ | - | $ | - | $ | - | $ | 3,350 | $ | (2,591 | ) | $ | - | $ | - | $ | - | $ | (2,591 | ) | |||||||||||||||||||
53
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Nine Months Ended
October 31, 2009 and 2008 (in thousands) (continued)
The Nets 2009 | The Nets 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | - | $ | - | $ | 30,700 | $ | - | $ | 30,700 | $ | - | $ | - | $ | 36,651 | $ | - | $ | 36,651 | |||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted revenues |
- | - | 30,700 | - | 30,700 | - | - | 36,651 | - | 36,651 | |||||||||||||||||||||||||||||||
Operating expenses |
- | - | 42,558 | - | 42,558 | - | - | 48,480 | - | 48,480 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
- | - | 12,750 | - | 12,750 | - | - | 14,934 | - | 14,934 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted operating expenses |
- | - | 55,308 | - | 55,308 | - | - | 63,414 | - | 63,414 | |||||||||||||||||||||||||||||||
Add interest and other income |
- | - | 215 | - | 215 | - | - | 90 | - | 90 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
(29,841 | ) | - | 29,841 | - | - | (31,880 | ) | - | 31,880 | - | - | |||||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net operating income |
(29,841 | ) | - | 5,448 | - | (24,393 | ) | (31,880 | ) | - | 5,207 | - | (26,673 | ) | |||||||||||||||||||||||||||
Interest expense |
- | - | 5,448 | - | 5,448 | - | - | 5,207 | - | 5,207 | |||||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Preferred return on disposition |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude
retrospective adoption of accounting guidance for convertible debt
instruments |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Add: Pre-Tax
EBDT from discontinued operations |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Pre-Tax EBDT |
(29,841 | ) | - | - | - | (29,841 | ) | (31,880 | ) | - | - | - | (31,880 | ) | |||||||||||||||||||||||||||
Income tax expense (benefit) |
(10,222 | ) | - | - | - | (10,222 | ) | (10,966 | ) | - | - | - | (10,966 | ) | |||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | (19,619 | ) | $ | - | $ | - | $ | - | $ | (19,619 | ) | $ | (20,914 | ) | $ | - | $ | - | $ | - | $ | (20,914 | ) | |||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | (19,619 | ) | $ | - | $ | - | $ | - | $ | (19,619 | ) | $ | (20,914 | ) | $ | - | $ | - | $ | - | $ | (20,914 | ) | |||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Preferred return on disposition, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Retrospective
adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | (19,619 | ) | $ | - | $ | - | $ | - | $ | (19,619 | ) | $ | (20,914 | ) | $ | - | $ | - | $ | - | $ | (20,914 | ) | |||||||||||||||||
54
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Nine Months Ended
October 31, 2009 and 2008 (in thousands) (continued)
Corporate Activities 2009 | Corporate Activities 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted revenues |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Operating expenses |
30,617 | - | - | - | 30,617 | 29,872 | - | - | - | 29,872 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
2,219 | - | - | - | 2,219 | 2,204 | - | - | - | 2,204 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Adjusted operating expenses |
32,836 | - | - | - | 32,836 | 32,076 | - | - | - | 32,076 | |||||||||||||||||||||||||||||||
Add interest and other income |
981 | - | - | - | 981 | 802 | - | - | - | 802 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net operating income |
(31,855 | ) | - | - | - | (31,855 | ) | (31,274 | ) | - | - | - | (31,274 | ) | |||||||||||||||||||||||||||
Interest expense |
59,435 | - | - | - | 59,435 | 54,219 | - | - | - | 54,219 | |||||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
(4,683 | ) | - | - | - | (4,683 | ) | (3,692 | ) | - | - | - | (3,692 | ) | |||||||||||||||||||||||||||
Preferred return on disposition |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Exclude retrospective adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | (6,975 | ) | - | - | - | (6,975 | ) | |||||||||||||||||||||||||||||
Add: Pre-Tax EBDT from discontinued operations |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Pre-Tax EBDT |
(86,607 | ) | - | - | - | (86,607 | ) | (74,826 | ) | - | - | - | (74,826 | ) | |||||||||||||||||||||||||||
Income tax expense (benefit) |
(21,216 | ) | - | - | - | (21,216 | ) | (18,938 | ) | - | - | - | (18,938 | ) | |||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | (65,391 | ) | $ | - | $ | - | $ | - | $ | (65,391 | ) | $ | (55,888 | ) | $ | - | $ | - | $ | - | $ | (55,888 | ) | |||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | (65,391 | ) | $ | - | $ | - | $ | - | $ | (65,391 | ) | $ | (55,888 | ) | $ | - | $ | - | $ | - | $ | (55,888 | ) | |||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
11,103 | - | - | - | 11,103 | 1,223 | - | - | - | 1,223 | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Preference payment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Preferred return on disposition, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | - | - | - | 92 | - | - | - | 92 | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Retrospective adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | (6,975 | ) | - | - | - | (6,975 | ) | |||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Straight-line rent adjustment |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Gain on disposition of rental properties |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
- | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | (54,288 | ) | $ | - | $ | - | $ | - | $ | (54,288 | ) | $ | (61,548 | ) | $ | - | $ | - | $ | - | $ | (61,548 | ) | |||||||||||||||||
55
Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information
Supplemental Financial Information
Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) Nine Months Ended
October 31, 2009 and 2008 (in thousands) (continued)
Total 2009 | Total 2008 | ||||||||||||||||||||||||||||||||||||||||
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 |
$ | 932,889 | $ | 38,008 | $ | 262,820 | $ | 5,476 | $ | 1,163,177 | $ | 960,007 | $ | 47,695 | $ | 287,144 | $ | 13,114 | $ | 1,212,570 | |||||||||||||||||||||
Exclude straight-line rent adjustment |
(14,398 | ) | - | - | (12 | ) | (14,410 | ) | (8,055 | ) | - | - | (147 | ) | (8,202 | ) | |||||||||||||||||||||||||
Adjusted revenues |
918,491 | 38,008 | 262,820 | 5,464 | 1,148,767 | 951,952 | 47,695 | 287,144 | 12,967 | 1,204,368 | |||||||||||||||||||||||||||||||
Operating expenses |
532,000 | 17,578 | 187,980 | 430 | 702,832 | 593,306 | 24,338 | 211,607 | 1,604 | 782,179 | |||||||||||||||||||||||||||||||
Non-Real Estate depreciation and amortization
and amortization of mortgage procurement costs |
10,372 | - | 12,750 | - | 23,122 | 9,940 | - | 14,934 | - | 24,874 | |||||||||||||||||||||||||||||||
Exclude straight-line rent adjustment |
(4,857 | ) | - | - | - | (4,857 | ) | (4,780 | ) | - | - | - | (4,780 | ) | |||||||||||||||||||||||||||
Exclude preference payment |
(1,756 | ) | - | - | - | (1,756 | ) | (2,744 | ) | - | - | - | (2,744 | ) | |||||||||||||||||||||||||||
Adjusted operating expenses |
535,759 | 17,578 | 200,730 | 430 | 719,341 | 595,722 | 24,338 | 226,541 | 1,604 | 799,529 | |||||||||||||||||||||||||||||||
Add interest and other income |
23,924 | 543 | 2,866 | - | 26,247 | 27,976 | 1,420 | 3,685 | 136 | 30,377 | |||||||||||||||||||||||||||||||
Add equity in earnings (loss), including impairment of unconsolidated entities |
(45,140 | ) | (81 | ) | 46,107 | - | 1,048 | (18,787 | ) | (17 | ) | 19,820 | - | 1,050 | |||||||||||||||||||||||||||
Exclude gain on dispositon of unconsolidated entities |
(4,498 | ) | - | 4,498 | - | - | (1,081 | ) | - | 1,081 | - | - | |||||||||||||||||||||||||||||
Exclude impairment of unconsolidated entities |
34,663 | - | (34,663 | ) | - | - | 6,026 | - | (6,026 | ) | - | - | |||||||||||||||||||||||||||||
Exclude depreciation and amortization of unconsolidated entities |
32,701 | - | (32,701 | ) | - | - | 26,497 | - | (26,497 | ) | - | - | |||||||||||||||||||||||||||||
Net operating income |
424,382 | 20,892 | 48,197 | 5,034 | 456,721 | 396,861 | 24,760 | 52,666 | 11,499 | 436,266 | |||||||||||||||||||||||||||||||
Interest expense |
258,434 | 10,832 | 49,895 | 2,184 | 299,681 | 259,450 | 10,359 | 52,407 | 5,721 | 307,219 | |||||||||||||||||||||||||||||||
(Gain) loss on early extinguishment of debt |
(37,965 | ) | - | (1,698 | ) | - | (39,663 | ) | 1,539 | 119 | 51 | - | 1,471 | ||||||||||||||||||||||||||||
Preferred return on disposition |
- | - | - | - | - | 208 | - | (208 | ) | - | - | ||||||||||||||||||||||||||||||
Noncontrolling interest in earnings before depreciation and amortization |
10,060 | 10,060 | - | - | - | 14,282 | 14,282 | - | - | - | |||||||||||||||||||||||||||||||
Exclude retrospective adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | (1,160 | ) | - | - | - | (1,160 | ) | |||||||||||||||||||||||||||||
Add: Pre-Tax EBDT from discontinued operations |
2,850 | - | - | (2,850 | ) | - | 5,778 | - | - | (5,778 | ) | - | |||||||||||||||||||||||||||||
Pre-Tax EBDT |
196,703 | - | - | - | 196,703 | 128,736 | - | - | - | 128,736 | |||||||||||||||||||||||||||||||
Income tax expense (benefit) |
(25,996 | ) | - | - | - | (25,996 | ) | (19,699 | ) | - | - | - | (19,699 | ) | |||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 222,699 | $ | - | $ | - | $ | - | $ | 222,699 | $ | 148,435 | $ | - | $ | - | $ | - | $ | 148,435 | |||||||||||||||||||||
Reconciliation to net earnings: |
|||||||||||||||||||||||||||||||||||||||||
Earnings before depreciation, amortization and deferred taxes (EBDT) |
$ | 222,699 | $ | - | $ | - | $ | - | $ | 222,699 | $ | 148,435 | $ | - | $ | - | $ | - | $ | 148,435 | |||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(217,089 | ) | - | - | (1,347 | ) | (218,436 | ) | (210,262 | ) | - | - | (3,911 | ) | (214,173 | ) | |||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(11,683 | ) | - | - | (50 | ) | (11,733 | ) | (9,670 | ) | - | - | (339 | ) | (10,009 | ) | |||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(13,126 | ) | - | - | (474 | ) | (13,600 | ) | 7,387 | - | - | (1,284 | ) | 6,103 | |||||||||||||||||||||||||||
Straight-line rent adjustment |
9,541 | - | - | 12 | 9,553 | 3,275 | - | - | 147 | 3,422 | |||||||||||||||||||||||||||||||
Preference payment |
(1,756 | ) | - | - | - | (1,756 | ) | (2,744 | ) | - | - | - | (2,744 | ) | |||||||||||||||||||||||||||
Preferred return on disposition, net of tax |
- | - | - | - | - | (128 | ) | - | - | - | (128 | ) | |||||||||||||||||||||||||||||
Gain on disposition of rental properties and other investments, net of tax |
- | - | 2,753 | 2,784 | 5,537 | 92 | - | 663 | 5,294 | 6,049 | |||||||||||||||||||||||||||||||
Gain on disposition of unconsolidated entities, net of tax |
2,753 | - | (2,753 | ) | - | - | 663 | - | (663 | ) | - | - | |||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
(1,913 | ) | - | (21,219 | ) | (5,984 | ) | (29,116 | ) | - | - | (3,698 | ) | - | (3,698 | ) | |||||||||||||||||||||||||
Impairment of unconsolidated entities, net of tax |
(21,219 | ) | - | 21,219 | - | - | (3,698 | ) | - | 3,698 | - | - | |||||||||||||||||||||||||||||
Retrospective
adoption of accounting guidance for convertible debt instruments |
- | - | - | - | - | (1,160 | ) | - | - | - | (1,160 | ) | |||||||||||||||||||||||||||||
Discontinued operations, net of tax: |
|||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization - Real Estate Groups |
(1,347 | ) | - | - | 1,347 | - | (3,911 | ) | - | - | 3,911 | - | |||||||||||||||||||||||||||||
Amortization of mortgage procurement costs - Real Estate Groups |
(50 | ) | - | - | 50 | - | (339 | ) | - | - | 339 | - | |||||||||||||||||||||||||||||
Deferred taxes - Real Estate Groups |
(474 | ) | - | - | 474 | - | (1,284 | ) | - | - | 1,284 | - | |||||||||||||||||||||||||||||
Straight-line rent adjustment |
12 | - | - | (12 | ) | - | 147 | - | - | (147 | ) | - | |||||||||||||||||||||||||||||
Gain on disposition of rental properties |
2,784 | - | - | (2,784 | ) | - | 5,294 | - | - | (5,294 | ) | - | |||||||||||||||||||||||||||||
Impairment of real estate, net of tax |
(5,984 | ) | - | - | 5,984 | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. |
$ | (36,852 | ) | $ | - | $ | - | $ | - | $ | (36,852 | ) | $ | (67,903 | ) | $ | - | $ | - | $ | - | $ | (67,903 | ) | |||||||||||||||||
56