Ohio (State or other jurisdiction of incorporation or organization) | 1-4372 (Commission File Number) | 34-0863886 (I.R.S. Employer Identification No.) | ||
Terminal Tower, 50 Public Square Suite 1100, Cleveland, Ohio | 44113 | |||
(Address of principal executive offices) | (Zip Code) | |||
Registrant's telephone number, including area code: 216-621-6060 | ||||
Not Applicable | ||||
(Former Name or Former Address, if Changed Since Last Report) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
(d) | Exhibits |
Exhibit Number | Description | |
99.1 | — | Press Release of Forest City Enterprises, Inc. Dated September 5, 2013 |
FOREST CITY ENTERPRISES, INC. | |||
By: | /s/ ROBERT G. O'BRIEN | ||
Name: | Robert G. O’Brien | ||
Title: | Executive Vice President and Chief Financial Officer | ||
Date: | September 5, 2013 |
Exhibit Number | Description | |
99.1 | — | Press Release of Forest City Enterprises, Inc. Dated September 5, 2013 |
AT THE COMPANY | ON THE WEB |
Robert O’Brien | www.forestcity.net |
Executive Vice President – Chief Financial Officer | |
216-621-6060 | |
Jeff Linton | |
Senior Vice President – Corporate Communication | |
216-621-6060 |
• | Results reflect impact of smaller under-construction pipeline, reduced capitalized interest |
• | Continued progress on sustainable capital, non-core dispositions, focused growth |
• | Operating portfolio shows solid fundamentals |
• | Aster Conservatory Green, a 352-unit apartment community at Stapleton in Denver, expected to open in phases beginning in the third quarter of this year. |
• | 3700M, a 381-unit apartment community in Dallas. AIG Global Real Estate is the company's strategic capital partner for this project, expected to open in the second quarter of 2014. |
• | 120 Kingston, a 240-unit apartment community in Boston, with completion anticipated in the second quarter of 2014. |
• | 1111 Stratford, a 128-unit apartment community in Stratford, Connecticut. Phased opening is expected to begin in the third quarter of 2013. |
• | Winchester Lofts, a 158-unit adaptive reuse of a historic industrial building in New Haven, Connecticut. The project is expected to be completed in the third quarter of 2014. |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(in thousands) | |||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. | $ | (16,281 | ) | $ | (43,717 | ) | $ | (35,649 | ) | $ | (20,965 | ) | |
Depreciation and Amortization—Real Estate Groups | 104,963 | 72,493 | 186,403 | 142,910 | |||||||||
Impairment of depreciable rental properties | 8,055 | 3,559 | 8,055 | 4,940 | |||||||||
Gain on disposition of rental properties | (26,153 | ) | (16,107 | ) | (40,690 | ) | (24,021 | ) | |||||
Income tax expense (benefit) adjustments — current and deferred (1) | |||||||||||||
Gain on disposition of rental properties | 11,223 | 6,229 | 16,831 | 9,281 | |||||||||
Impairment of depreciable rental properties | (3,124 | ) | (1,380 | ) | (3,124 | ) | (1,916 | ) | |||||
FFO | $ | 78,683 | $ | 21,077 | $ | 131,826 | $ | 110,229 |
FFO Per Share - Diluted | |||||||||||||
Numerator (in thousands): | |||||||||||||
FFO | $ | 78,683 | $ | 21,077 | $ | 131,826 | $ | 110,229 | |||||
If-Converted Method (adjustments for interest, net of tax): | |||||||||||||
3.625% Puttable Senior Notes due 2014 | 243 | 1,110 | 1,275 | 2,219 | |||||||||
5.000% Convertible Senior Notes due 2016 | 382 | 382 | 765 | 765 | |||||||||
4.250% Convertible Senior Notes due 2018 | 2,277 | 2,277 | 4,554 | 4,554 | |||||||||
3.625% Convertible Senior Notes due 2020 | 220 | — | 220 | — | |||||||||
FFO for per share data | $ | 81,805 | $ | 24,846 | $ | 138,640 | $ | 117,767 | |||||
Denominator | |||||||||||||
Weighted average shares outstanding—Basic | 194,745,051 | 169,454,672 | 189,865,650 | 169,331,996 | |||||||||
Effect of stock options, restricted stock and performance shares | 1,236,260 | 739,767 | 1,222,432 | 838,520 | |||||||||
Effect of convertible preferred stock | — | 14,550,257 | 162,501 | 14,550,257 | |||||||||
Effect of convertible debt | 24,399,311 | 33,499,503 | 28,399,143 | 33,499,503 | |||||||||
Effect of convertible Class A Common Units | 3,646,755 | 3,646,755 | 3,646,755 | 3,646,755 | |||||||||
Weighted average shares outstanding - Diluted | 224,027,377 | 221,890,954 | 223,296,481 | 221,867,031 | |||||||||
FFO Per Share | $ | 0.37 | $ | 0.11 | $ | 0.62 | $ | 0.53 |
(1) | The following table provides detail of Income Tax Expense (Benefit): |
Three Months Ended July 31, | Six Months Ended July 31, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
(in thousands) | |||||||||||||
Current taxes | |||||||||||||
Operating earnings | $ | (25,164 | ) | $ | (6,295 | ) | $ | (34,034 | ) | $ | (10,023 | ) | |
Gain on disposition of rental properties | 4,915 | (21,081 | ) | 12,601 | (16,830 | ) | |||||||
Subtotal | (20,249 | ) | (27,376 | ) | (21,433 | ) | (26,853 | ) | |||||
Discontinued operations | |||||||||||||
Operating earnings | 964 | 6,556 | 1,782 | 6,379 | |||||||||
Gain on disposition of rental properties | 15,557 | — | 16,983 | 1,294 | |||||||||
Subtotal | 16,521 | 6,556 | 18,765 | 7,673 | |||||||||
Total Current taxes | (3,728 | ) | (20,820 | ) | (2,668 | ) | (19,180 | ) | |||||
Deferred taxes | |||||||||||||
Operating earnings | 12,075 | (8,669 | ) | 5,824 | 4,752 | ||||||||
Gain on disposition of rental properties | (4,953 | ) | 27,310 | (13,351 | ) | 22,541 | |||||||
Impairment of depreciable rental properties | (3,124 | ) | (330 | ) | (3,124 | ) | (330 | ) | |||||
Subtotal | 3,998 | 18,311 | (10,651 | ) | 26,963 | ||||||||
Discontinued operations | |||||||||||||
Operating earnings | (145 | ) | (5,831 | ) | (356 | ) | (4,760 | ) | |||||
Gain on disposition of rental properties | (4,296 | ) | — | 598 | 2,276 | ||||||||
Impairment of real estate | — | (1,050 | ) | — | (1,586 | ) | |||||||
Subtotal | (4,441 | ) | (6,881 | ) | 242 | (4,070 | ) | ||||||
Total Deferred taxes | (443 | ) | 11,430 | (10,409 | ) | 22,893 | |||||||
Grand Total | $ | (4,171 | ) | $ | (9,390 | ) | $ | (13,077 | ) | $ | 3,713 |
Reconciliation of Operating FFO to FFO - Pro-Rata Consolidation | Three Months Ended July 31, | Six Months Ended July 31, | |||||||||||||
2013 | 2012 | % Change | 2013 | 2012 | % Change | ||||||||||
Portfolio Pre-tax FFO: | (in thousands) | (in thousands) | |||||||||||||
Commercial Group | $ | 69,579 | $ | 59,377 | $ | 121,411 | $ | 157,932 | |||||||
Residential Group | 23,484 | 31,566 | 47,328 | 63,505 | |||||||||||
Arena | (1,554 | ) | 863 | (3,568 | ) | 2,612 | |||||||||
Land Group | 2,695 | (48,606 | ) | 5,551 | (47,542 | ) | |||||||||
Adjustments to Portfolio Pre-Tax FFO: | |||||||||||||||
Net loss on land held for divestiture activity | 6,459 | 51,852 | 6,154 | 51,852 | |||||||||||
Abandoned development project write-offs | 2,696 | 12,906 | 2,776 | 13,353 | |||||||||||
Tax credit income | (5,978 | ) | (7,956 | ) | (11,369 | ) | (11,881 | ) | |||||||
(Gain) loss on extinguishment of portfolio debt | (24,662 | ) | 1,313 | (24,414 | ) | 1,844 | |||||||||
Change in fair market value of nondesignated hedges | 8,228 | (3,340 | ) | 9,821 | (7,861 | ) | |||||||||
Net gain on change in control of interests | (2,762 | ) | (4,064 | ) | (2,762 | ) | (4,064 | ) | |||||||
Straight-line rent adjustments | (3,692 | ) | (3,775 | ) | (5,991 | ) | (8,610 | ) | |||||||
Participation payments | 1,908 | — | 2,498 | — | |||||||||||
Non-outlot land sales | — | — | (8,927 | ) | (36,484 | ) | |||||||||
Adjustments to Portfolio Pre-Tax FFO subtotal | (17,803 | ) | 46,936 | (32,214 | ) | (1,851 | ) | ||||||||
Portfolio Pre-tax Operating FFO | 76,401 | 90,136 | (15.2)% | 138,508 | 174,656 | (20.7)% | |||||||||
Corporate Group Pre-tax FFO | (28,059 | ) | (28,090 | ) | (62,967 | ) | (54,700 | ) | |||||||
Loss on extinguishment of debt - Corporate Group | — | — | 5,026 | — | |||||||||||
Operating FFO | 48,342 | 62,046 | (22.1)% | 80,567 | 119,956 | (32.8)% | |||||||||
Nets Pre-tax FFO | 268 | (8,272 | ) | (2,713 | ) | (15,230 | ) | ||||||||
Add back adjustments to Portfolio Pre-Tax FFO above | 17,803 | (46,936 | ) | 32,214 | 1,851 | ||||||||||
Add back loss on extinguishment of debt - Corporate Group | — | — | (5,026 | ) | — | ||||||||||
Income tax benefit (expense) on FFO | 12,270 | 14,239 | 26,784 | 3,652 | |||||||||||
FFO | $ | 78,683 | $ | 21,077 | 273.3% | $ | 131,826 | $ | 110,229 | 19.6% | |||||
Operating FFO Per Share - Diluted | |||||||||||||||
Numerator (in thousands): | |||||||||||||||
Operating FFO | $ | 48,342 | $ | 62,046 | $ | 80,567 | $ | 119,956 | |||||||
If-Converted Method (adjustments for interest, pre-tax): | |||||||||||||||
3.625% Puttable Senior Notes due 2014 | 398 | 1,812 | 2,083 | 3,625 | |||||||||||
5.00% Convertible Senior Notes due 2016 | 625 | 625 | 1,250 | 1,250 | |||||||||||
4.25% Convertible Senior Notes due 2018 | 3,719 | 3,719 | 7,438 | 7,438 | |||||||||||
3.625% Convertible Senior Notes due 2020 | 360 | — | 360 | — | |||||||||||
Operating FFO for per share data | $ | 53,444 | $ | 68,202 | $ | 91,698 | $ | 132,269 | |||||||
Denominator | |||||||||||||||
Weighted average shares outstanding—Basic | 194,745,051 | 169,454,672 | 189,865,650 | 169,331,996 | |||||||||||
Effect of stock options, restricted stock and performance shares | 1,236,260 | 739,767 | 1,222,432 | 838,520 | |||||||||||
Effect of convertible preferred stock | — | 14,550,257 | 162,501 | 14,550,257 | |||||||||||
Effect of convertible debt | 24,399,311 | 33,499,503 | 28,399,143 | 33,499,503 | |||||||||||
Effect of convertible Class A Common Units | 3,646,755 | 3,646,755 | 3,646,755 | 3,646,755 | |||||||||||
Weighted average shares outstanding - Diluted | 224,027,377 | 221,890,954 | 223,296,481 | 221,867,031 | |||||||||||
Operating FFO Per Share | $ | 0.24 | $ | 0.31 | $ | 0.41 | $ | 0.60 |
Three Months Ended July 31, 2013 | Three Months Ended July 31, 2012 | ||||||||||||||||||||||||||||||
Full Consolidation (GAAP) | Less Noncontrolling Interest | Plus Unconsolidated Investments at Pro-Rata | Plus Discontinued Operations | Pro-Rata Consolidation (Non-GAAP) | Full Consolidation (GAAP) | Less Noncontrolling Interest | Plus Unconsolidated Investments at Pro-Rata | Plus Discontinued Operations | Pro-Rata Consolidation (Non-GAAP) | ||||||||||||||||||||||
Net operating income | $ | 158,507 | $ | 7,382 | $ | — | $ | 4,284 | $ | 155,409 | $ | 133,746 | $ | 3,516 | $ | — | $ | 10,557 | $ | 140,787 | |||||||||||
Interest expense | (91,723 | ) | (7,081 | ) | (24,219 | ) | (1,515 | ) | (110,376 | ) | (59,354 | ) | (2,674 | ) | (23,966 | ) | (3,624 | ) | (84,270 | ) | |||||||||||
Interest expense of unconsolidated entities | (24,219 | ) | — | 24,219 | — | — | (23,966 | ) | — | 23,966 | — | — | |||||||||||||||||||
Gain (loss) on extinguishment of debt | 24,669 | — | (7 | ) | — | 24,662 | — | — | (1,313 | ) | — | (1,313 | ) | ||||||||||||||||||
Gain (loss) on extinguishment of debt of unconsolidated entities | (7 | ) | — | 7 | — | — | (1,313 | ) | — | 1,313 | — | — | |||||||||||||||||||
Equity in (earnings) loss of unconsolidated entities, including impairment | (8,319 | ) | 844 | 9,903 | — | 740 | 25,612 | (169 | ) | (20,034 | ) | — | 5,747 | ||||||||||||||||||
Net gain (loss) on land held for divestiture activity | (8,007 | ) | (720 | ) | 828 | — | (6,459 | ) | (6,458 | ) | 3,507 | (41,887 | ) | — | (51,852 | ) | |||||||||||||||
Net gain (loss) on land held for divestiture activity of unconsolidated entities | 828 | — | (828 | ) | — | — | (41,887 | ) | — | 41,887 | — | — | |||||||||||||||||||
Net gain (loss) on disposition of rental properties | 4,932 | — | — | 21,221 | 26,153 | — | — | 16,107 | — | 16,107 | |||||||||||||||||||||
Gain (loss) on disposition of unconsolidated entities | — | — | — | — | — | 16,107 | — | (16,107 | ) | — | — | ||||||||||||||||||||
Impairment of consolidated and unconsolidated real estate | (8,055 | ) | — | — | — | (8,055 | ) | (460 | ) | — | (390 | ) | (2,709 | ) | (3,559 | ) | |||||||||||||||
Impairment of unconsolidated real estate | — | — | — | — | — | (390 | ) | — | 390 | — | — | ||||||||||||||||||||
Depreciation and amortization—Real Estate Groups (a) | (90,712 | ) | (4,612 | ) | (18,114 | ) | (749 | ) | (104,963 | ) | (50,321 | ) | (1,586 | ) | (19,686 | ) | (4,072 | ) | (72,493 | ) | |||||||||||
Amortization of mortgage procurement costs | (2,669 | ) | (182 | ) | (771 | ) | (19 | ) | (3,277 | ) | (3,361 | ) | (146 | ) | (813 | ) | (325 | ) | (4,353 | ) | |||||||||||
Depreciation and amortization of unconsolidated entities | (18,885 | ) | — | 18,885 | — | — | (20,499 | ) | — | 20,499 | — | — | |||||||||||||||||||
Straight-line rent adjustment | 3,585 | — | — | 107 | 3,692 | 3,723 | — | — | 52 | 3,775 | |||||||||||||||||||||
Earnings (loss) before income taxes | (60,075 | ) | (4,369 | ) | 9,903 | 23,329 | (22,474 | ) | (28,821 | ) | 2,448 | (20,034 | ) | (121 | ) | (51,424 | ) | ||||||||||||||
Income tax benefit (expense) | 16,251 | — | — | (12,080 | ) | 4,171 | 9,065 | — | — | 325 | 9,390 | ||||||||||||||||||||
Net gain on change in control of interests | 2,762 | — | — | — | 2,762 | 6,766 | 2,702 | — | — | 4,064 | |||||||||||||||||||||
Equity in earnings (loss) of unconsolidated entities, including impairment of depreciable real estate, gross of tax | 7,491 | (844 | ) | (9,075 | ) | — | (740 | ) | 16,275 | 169 | (21,853 | ) | — | (5,747 | ) | ||||||||||||||||
Net gain (loss) on land held for divestiture activity of unconsolidated entities, gross of tax | 828 | — | (828 | ) | — | — | (41,887 | ) | — | 41,887 | — | — | |||||||||||||||||||
8,319 | (844 | ) | (9,903 | ) | — | (740 | ) | (25,612 | ) | 169 | 20,034 | — | (5,747 | ) | |||||||||||||||||
Earnings (loss) from continuing operations | (32,743 | ) | (5,213 | ) | — | 11,249 | (16,281 | ) | (38,602 | ) | 5,319 | — | 204 | (43,717 | ) | ||||||||||||||||
Discontinued operations, net of tax | 11,249 | — | — | (11,249 | ) | — | 718 | 514 | — | (204 | ) | — | |||||||||||||||||||
Net earnings (loss) | (21,494 | ) | (5,213 | ) | — | — | (16,281 | ) | (37,884 | ) | 5,833 | — | — | (43,717 | ) | ||||||||||||||||
Noncontrolling interests | |||||||||||||||||||||||||||||||
(Earnings) loss from continuing operations attributable to noncontrolling interests, gross of tax | 5,213 | 5,213 | — | — | — | (5,319 | ) | (5,319 | ) | — | — | — | |||||||||||||||||||
(Earnings) loss from discontinued operations attributable to noncontrolling interests | — | — | — | — | — | (514 | ) | (514 | ) | — | — | — | |||||||||||||||||||
5,213 | 5,213 | — | — | — | (5,833 | ) | (5,833 | ) | — | — | — | ||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. | $ | (16,281 | ) | $ | — | $ | — | $ | — | $ | (16,281 | ) | $ | (43,717 | ) | $ | — | $ | — | $ | — | $ | (43,717 | ) | |||||||
Preferred dividends | — | — | — | — | — | (3,850 | ) | — | — | — | (3,850 | ) | |||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders | $ | (16,281 | ) | $ | — | $ | — | $ | — | $ | (16,281 | ) | $ | (47,567 | ) | $ | — | $ | — | $ | — | $ | (47,567 | ) | |||||||
(a) Depreciation and amortization - Real Estate Groups | $ | 90,712 | $ | 4,612 | $ | 18,114 | $ | 749 | $ | 104,963 | $ | 50,321 | $ | 1,586 | $ | 19,686 | $ | 4,072 | $ | 72,493 | |||||||||||
Depreciation and amortization - Non-Real Estate | 1,145 | — | — | — | 1,145 | 576 | — | — | — | 576 | |||||||||||||||||||||
Total depreciation and amortization | $ | 91,857 | $ | 4,612 | $ | 18,114 | $ | 749 | $ | 106,108 | $ | 50,897 | $ | 1,586 | $ | 19,686 | $ | 4,072 | $ | 73,069 |
Six Months Ended July 31, 2013 | Six Months Ended July 31, 2012 | ||||||||||||||||||||||||||||||
Full Consolidation (GAAP) | Less Noncontrolling Interest | Plus Unconsolidated Investments at Pro-Rata | Plus Discontinued Operations | Pro-Rata Consolidation (Non-GAAP) | Full Consolidation (GAAP) | Less Noncontrolling Interest | Plus Unconsolidated Investments at Pro-Rata | Plus Discontinued Operations | Pro-Rata Consolidation (Non-GAAP) | ||||||||||||||||||||||
Net operating income | $ | 310,997 | $ | 14,086 | $ | — | $ | 8,329 | $ | 305,240 | $ | 310,060 | $ | 7,483 | $ | — | $ | 19,489 | $ | 322,066 | |||||||||||
Interest expense | (177,974 | ) | (14,411 | ) | (49,273 | ) | (2,761 | ) | (215,597 | ) | (114,244 | ) | (5,396 | ) | (50,298 | ) | (7,345 | ) | (166,491 | ) | |||||||||||
Interest expense of unconsolidated entities | (49,273 | ) | — | 49,273 | — | — | (50,298 | ) | — | 50,298 | — | — | |||||||||||||||||||
Gain (loss) on extinguishment of debt | 19,431 | — | (7 | ) | (36 | ) | 19,388 | (719 | ) | (188 | ) | (1,313 | ) | — | (1,844 | ) | |||||||||||||||
Gain (loss) on extinguishment of debt of unconsolidated entities | (7 | ) | — | 7 | — | — | (1,313 | ) | — | 1,313 | — | — | |||||||||||||||||||
Equity in (earnings) loss of unconsolidated entities | (14,022 | ) | 806 | 19,236 | — | 4,408 | 21,839 | (199 | ) | (9,774 | ) | — | 12,264 | ||||||||||||||||||
Net gain (loss) on land held for divestiture activity | (7,555 | ) | (720 | ) | 681 | — | (6,154 | ) | (6,458 | ) | 3,507 | (41,887 | ) | — | (51,852 | ) | |||||||||||||||
Net gain (loss) on land held for divestiture activity of unconsolidated entities | 681 | — | (681 | ) | — | — | (41,887 | ) | — | 41,887 | — | — | |||||||||||||||||||
Net gain (loss) on disposition of rental properties | 4,932 | — | (1,510 | ) | 37,268 | 40,690 | — | — | 16,107 | 7,914 | 24,021 | ||||||||||||||||||||
Gain (loss) on disposition of unconsolidated entities | (1,510 | ) | — | 1,510 | — | — | 16,107 | — | (16,107 | ) | — | — | |||||||||||||||||||
Impairment of consolidated and unconsolidated real estate | (8,055 | ) | — | — | — | (8,055 | ) | (460 | ) | — | (390 | ) | (4,090 | ) | (4,940 | ) | |||||||||||||||
Impairment of unconsolidated real estate | — | — | — | — | — | (390 | ) | — | 390 | — | — | ||||||||||||||||||||
Depreciation and amortization—Real Estate Groups (a) | (157,857 | ) | (9,360 | ) | (35,930 | ) | (1,976 | ) | (186,403 | ) | (99,065 | ) | (2,580 | ) | (38,847 | ) | (7,578 | ) | (142,910 | ) | |||||||||||
Amortization of mortgage procurement costs | (5,326 | ) | (352 | ) | (1,564 | ) | (50 | ) | (6,588 | ) | (6,063 | ) | (229 | ) | (1,650 | ) | (492 | ) | (7,976 | ) | |||||||||||
Depreciation and amortization of unconsolidated entities | (37,494 | ) | — | 37,494 | — | — | (40,497 | ) | — | 40,497 | — | — | |||||||||||||||||||
Straight-line rent adjustment | 5,819 | — | — | 172 | 5,991 | 7,793 | — | — | 817 | 8,610 | |||||||||||||||||||||
Earnings (loss) before income taxes | (117,213 | ) | (9,951 | ) | 19,236 | 40,946 | (47,080 | ) | (5,595 | ) | 2,398 | (9,774 | ) | 8,715 | (9,052 | ) | |||||||||||||||
Income tax benefit (expense) | 32,084 | — | — | (19,007 | ) | 13,077 | (110 | ) | — | — | (3,603 | ) | (3,713 | ) | |||||||||||||||||
Net gain on change in control of interests | 2,762 | — | — | — | 2,762 | 6,766 | 2,702 | — | — | 4,064 | |||||||||||||||||||||
Equity in earnings (loss) of unconsolidated entities, including impairment of depreciable real estate, gross of tax | 13,341 | (806 | ) | (18,555 | ) | — | (4,408 | ) | 20,048 | 199 | (32,113 | ) | — | (12,264 | ) | ||||||||||||||||
Net gain (loss) on land held for divestiture activity of unconsolidated entities, gross of tax | 681 | — | (681 | ) | — | — | (41,887 | ) | — | 41,887 | — | — | |||||||||||||||||||
14,022 | (806 | ) | (19,236 | ) | — | (4,408 | ) | (21,839 | ) | 199 | 9,774 | — | (12,264 | ) | |||||||||||||||||
Earnings (loss) from continuing operations | (68,345 | ) | (10,757 | ) | — | 21,939 | (35,649 | ) | (20,778 | ) | 5,299 | — | 5,112 | (20,965 | ) | ||||||||||||||||
Discontinued operations, net of tax | 27,777 | 5,838 | — | (21,939 | ) | — | 6,667 | 1,555 | — | (5,112 | ) | — | |||||||||||||||||||
Net earnings (loss) | (40,568 | ) | (4,919 | ) | — | — | (35,649 | ) | (14,111 | ) | 6,854 | — | — | (20,965 | ) | ||||||||||||||||
Noncontrolling interests | |||||||||||||||||||||||||||||||
(Earnings) loss from continuing operations attributable to noncontrolling interests, gross of tax | 10,757 | 10,757 | — | — | — | (5,299 | ) | (5,299 | ) | — | — | — | |||||||||||||||||||
(Earnings) loss from discontinued operations attributable to noncontrolling interests | (5,838 | ) | (5,838 | ) | — | — | — | (1,555 | ) | (1,555 | ) | — | — | — | |||||||||||||||||
4,919 | 4,919 | — | — | — | (6,854 | ) | (6,854 | ) | — | — | — | ||||||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. | $ | (35,649 | ) | $ | — | $ | — | $ | — | $ | (35,649 | ) | $ | (20,965 | ) | $ | — | $ | — | $ | — | $ | (20,965 | ) | |||||||
Preferred dividends | (185 | ) | — | — | — | (185 | ) | (7,700 | ) | — | — | — | (7,700 | ) | |||||||||||||||||
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders | $ | (35,834 | ) | $ | — | $ | — | $ | — | $ | (35,834 | ) | $ | (28,665 | ) | $ | — | $ | — | $ | — | $ | (28,665 | ) | |||||||
(a) Depreciation and amortization—Real Estate Groups | $ | 157,857 | $ | 9,360 | $ | 35,930 | $ | 1,976 | $ | 186,403 | $ | 99,065 | $ | 2,580 | $ | 38,847 | $ | 7,578 | $ | 142,910 | |||||||||||
Depreciation and amortization—Non-Real Estate | 2,375 | — | — | — | 2,375 | 1,196 | — | — | — | 1,196 | |||||||||||||||||||||
Total depreciation and amortization | $ | 160,232 | $ | 9,360 | $ | 35,930 | $ | 1,976 | $ | 188,778 | $ | 100,261 | $ | 2,580 | $ | 38,847 | $ | 7,578 | $ | 144,106 |
Net Operating Income (in thousands) | |||||||||||||||||||||||||||||
Three Months Ended July 31, 2013 | Three Months Ended July 31, 2012 | % Change | |||||||||||||||||||||||||||
Full Consolidation (GAAP) | Less Noncontrolling Interest | Plus Discontinued Operations | Pro-Rata Consolidation (Non-GAAP) | Full Consolidation (GAAP) | Less Noncontrolling Interest | Plus Discontinued Operations | Pro-Rata Consolidation (Non-GAAP) | Full Consolidation (GAAP) | Pro-Rata Consolidation (Non-GAAP) | ||||||||||||||||||||
Commercial Group | |||||||||||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||
Comparable | $ | 55,490 | $ | 1,706 | $ | — | $ | 53,784 | $ | 53,639 | $ | 1,668 | $ | — | $ | 51,971 | 3.5 | % | 3.5 | % | |||||||||
Total | 59,159 | 1,257 | — | 57,902 | 59,428 | 2,079 | 1,472 | 58,821 | |||||||||||||||||||||
Office Buildings | |||||||||||||||||||||||||||||
Comparable | 56,467 | 2,183 | — | 54,284 | 59,044 | 2,054 | — | 56,990 | (4.4 | )% | (4.7 | )% | |||||||||||||||||
Total | 63,430 | 3,182 | 2,554 | 62,802 | 61,691 | 2,091 | 3,976 | 63,576 | |||||||||||||||||||||
Hotels | 1,239 | — | 1,502 | 2,741 | 1,234 | — | 2,478 | 3,712 | |||||||||||||||||||||
Land Sales | 607 | — | — | 607 | 14 | — | — | 14 | |||||||||||||||||||||
Other (1) | (12,175 | ) | (75 | ) | 110 | (11,990 | ) | (11,783 | ) | 39 | 639 | (11,183 | ) | ||||||||||||||||
Total Commercial Group | |||||||||||||||||||||||||||||
Comparable | 111,957 | 3,889 | — | 108,068 | 112,683 | 3,722 | — | 108,961 | (0.6 | )% | (0.8 | )% | |||||||||||||||||
Total | 112,260 | 4,364 | 4,166 | 112,062 | 110,584 | 4,209 | 8,565 | 114,940 | |||||||||||||||||||||
Arena | 6,054 | 2,878 | — | 3,176 | (6,298 | ) | (2,515 | ) | — | (3,783 | ) | ||||||||||||||||||
Residential Group | |||||||||||||||||||||||||||||
Apartments | |||||||||||||||||||||||||||||
Comparable | 37,475 | 606 | — | 36,869 | 35,113 | 681 | — | 34,432 | 6.7 | % | 7.1 | % | |||||||||||||||||
Total | 41,409 | 764 | — | 40,645 | 34,346 | 751 | 1,880 | 35,475 | |||||||||||||||||||||
Subsidized Senior Housing | 3,769 | 161 | — | 3,608 | 4,712 | 165 | — | 4,547 | |||||||||||||||||||||
Military Housing | 4,515 | (10 | ) | — | 4,525 | 7,121 | 49 | — | 7,072 | ||||||||||||||||||||
Other (1) | (6,739 | ) | (2,000 | ) | 118 | (4,621 | ) | (993 | ) | 142 | 112 | (1,023 | ) | ||||||||||||||||
Total Residential Group | |||||||||||||||||||||||||||||
Comparable | 37,475 | 606 | — | 36,869 | 35,113 | 681 | — | 34,432 | 6.7 | % | 7.1 | % | |||||||||||||||||
Total | 42,954 | (1,085 | ) | 118 | 44,157 | 45,186 | 1,107 | 1,992 | 46,071 | ||||||||||||||||||||
Total Rental Properties | |||||||||||||||||||||||||||||
Comparable | 149,432 | 4,495 | — | 144,937 | 147,796 | 4,403 | — | 143,393 | 1.1 | % | 1.1 | % | |||||||||||||||||
Total | 161,268 | 6,157 | 4,284 | 159,395 | 149,472 | 2,801 | 10,557 | 157,228 | |||||||||||||||||||||
Land Development Group | 10,311 | 1,225 | — | 9,086 | 6,394 | 715 | — | 5,679 | |||||||||||||||||||||
The Nets | 268 | — | — | 268 | (8,272 | ) | — | — | (8,272 | ) | |||||||||||||||||||
Corporate Activities | (13,340 | ) | — | — | (13,340 | ) | (13,848 | ) | — | — | (13,848 | ) | |||||||||||||||||
Grand Total | $ | 158,507 | $ | 7,382 | $ | 4,284 | $ | 155,409 | $ | 133,746 | $ | 3,516 | $ | 10,557 | $ | 140,787 |
(1) | Includes write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income. |
Net Operating Income (in thousands) | |||||||||||||||||||||||||||||
Six Months Ended July 31, 2013 | Six Months Ended July 31, 2012 | % Change | |||||||||||||||||||||||||||
Full Consolidation (GAAP) | Less Noncontrolling Interest | Plus Discontinued Operations | Pro-Rata Consolidation (Non-GAAP) | Full Consolidation (GAAP) | Less Noncontrolling Interest | Plus Discontinued Operations | Pro-Rata Consolidation (Non-GAAP) | Full Consolidation (GAAP) | Pro-Rata Consolidation (Non-GAAP) | ||||||||||||||||||||
Commercial Group | |||||||||||||||||||||||||||||
Retail | |||||||||||||||||||||||||||||
Comparable | $ | 111,292 | $ | 3,348 | $ | — | $ | 107,944 | $ | 108,801 | $ | 3,442 | $ | — | $ | 105,359 | 2.3 | % | 2.5 | % | |||||||||
Total | 121,323 | 2,415 | — | 118,908 | 118,923 | 4,155 | 3,044 | 117,812 | |||||||||||||||||||||
Office Buildings | |||||||||||||||||||||||||||||
Comparable | 111,203 | 4,385 | — | 106,818 | 117,751 | 4,294 | — | 113,457 | (5.6 | )% | (5.9 | )% | |||||||||||||||||
Total | 119,639 | 5,544 | 5,067 | 119,162 | 122,803 | 4,498 | 8,044 | 126,349 | |||||||||||||||||||||
Hotels | 1,391 | — | 2,628 | 4,019 | 1,582 | — | 3,227 | 4,809 | |||||||||||||||||||||
Land Sales (1) | 10,844 | — | — | 10,844 | 36,498 | — | — | 36,498 | |||||||||||||||||||||
Other (2) | (22,422 | ) | (499 | ) | 212 | (21,711 | ) | (17,632 | ) | (177 | ) | 1,330 | (16,125 | ) | |||||||||||||||
Total Commercial Group | |||||||||||||||||||||||||||||
Comparable | 222,495 | 7,733 | — | 214,762 | 226,552 | 7,736 | — | 218,816 | (1.8 | )% | (1.9 | )% | |||||||||||||||||
Total | 230,775 | 7,460 | 7,907 | 231,222 | 262,174 | 8,476 | 15,645 | 269,343 | |||||||||||||||||||||
Arena | 10,800 | 5,149 | — | 5,651 | (10,509 | ) | (4,309 | ) | — | (6,200 | ) | ||||||||||||||||||
Residential Group | |||||||||||||||||||||||||||||
Apartments | |||||||||||||||||||||||||||||
Comparable | 72,550 | 1,218 | — | 71,332 | 69,316 | 1,284 | — | 68,032 | 4.7 | % | 4.9 | % | |||||||||||||||||
Total | 78,768 | 1,502 | 220 | 77,486 | 71,529 | 1,525 | 3,639 | 73,643 | |||||||||||||||||||||
Subsidized Senior Housing | 7,664 | 205 | — | 7,459 | 9,111 | 204 | — | 8,907 | |||||||||||||||||||||
Military Housing | 10,377 | 85 | — | 10,292 | 14,663 | 244 | — | 14,419 | |||||||||||||||||||||
Other (2) | (10,417 | ) | (1,894 | ) | 202 | (8,321 | ) | (4,284 | ) | 285 | 205 | (4,364 | ) | ||||||||||||||||
Total Residential Group | |||||||||||||||||||||||||||||
Comparable | 72,550 | 1,218 | — | 71,332 | 69,316 | 1,284 | — | 68,032 | 4.7 | % | 4.9 | % | |||||||||||||||||
Total | 86,392 | (102 | ) | 422 | 86,916 | 91,019 | 2,258 | 3,844 | 92,605 | ||||||||||||||||||||
Total Rental Properties | |||||||||||||||||||||||||||||
Comparable | 295,045 | 8,951 | — | 286,094 | 295,868 | 9,020 | — | 286,848 | (0.3 | )% | (0.3 | )% | |||||||||||||||||
Total | 327,967 | 12,507 | 8,329 | 323,789 | 342,684 | 6,425 | 19,489 | 355,748 | |||||||||||||||||||||
Land Development Group | 13,206 | 1,579 | — | 11,627 | 9,469 | 1,058 | — | 8,411 | |||||||||||||||||||||
The Nets | (2,713 | ) | — | — | (2,713 | ) | (15,230 | ) | — | — | (15,230 | ) | |||||||||||||||||
Corporate Activities | (27,463 | ) | — | — | (27,463 | ) | (26,863 | ) | — | — | (26,863 | ) | |||||||||||||||||
Grand Total | $ | 310,997 | $ | 14,086 | $ | 8,329 | $ | 305,240 | $ | 310,060 | $ | 7,483 | $ | 19,489 | $ | 322,066 |
(1) | Includes $8,927 and $36,484 of NOI generated from certain non-outlot land sales at full and pro-rata consolidation for the six months ended July 31, 2013 and 2012, respectively. |
(2) | Includes write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income. |