Discontinued Operations and Gain on Disposition of Rental Properties

9 Months Ended

Oct. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Gain on Disposition of Rental Properties

Discontinued Operations and Gain on Disposition of Rental Properties

The following table summarizes the rental properties included in discontinued operations:

Property	Location	Square Feet/ Number of Units	Period Disposed	Three Months Ended 10/31/13	Nine Months Ended 10/31/13	Three Months Ended 10/31/12	Nine Months Ended 10/31/12
Commercial Group:
Colorado Studios	Denver, Colorado	75,000 square feet	Q3-2013	Yes	Yes	Yes	Yes
Higbee Building	Cleveland, Ohio	815,000 square feet	Q2-2013	—	Yes	Yes	Yes
Sheraton Station Square	Pittsburgh, Pennsylvania	399 rooms	Q2-2013	—	Yes	Yes	Yes
Fairmont Plaza	San Jose, California	335,000 square feet	Q4-2012	—	—	Yes	Yes
White Oak Village	Richmond, Virginia	843,000 square feet	Q3-2012	—	—	Yes	Yes
Quebec Square	Denver, Colorado	739,000 square feet	Q1-2012	—	—	—	Yes
Six triple net lease properties	Various	287,000 square feet	Various (1)	—	Yes	Yes	Yes
Residential Group:
Millender Center	Detroit, Michigan	339 units	Q1-2013	—	Yes	Yes	Yes
Emerald Palms	Miami, Florida	505 units	Q4-2012	—	—	Yes	Yes
Southfield	Whitemarsh, Maryland	212 units	Q3-2012	—	—	Yes	Yes

(1) Includes one triple net lease property disposed of during Q1-2013, three triple net lease properties disposed of during Q3-2012 and two triple net lease properties disposed of during Q2-2012.

The following table summarizes the operating results related to discontinued operations:

	Three Months Ended October 31,						Nine Months Ended October 31,
	2013			2012			2013			2012
	(in thousands)
Revenues from real estate operations	$	135		$	20,227		$	20,782		$	60,604
Expenses
Operating expenses	429			10,972			12,639			31,171
Depreciation and amortization	—			2,638			2,014			9,658
Impairment of real estate	—			164			—			4,254
	429			13,774			14,653			45,083
Interest expense	(16		)	(2,715		)	(2,785		)	(10,076		)
Amortization of mortgage procurement costs	—			(54		)	(50		)	(546		)
Loss on extinguishment of debt	—			(192		)	(40		)	(192		)
Interest income	—			(7		)	225			272
Gain on disposition of rental properties	1,239			19,299			44,342			28,178
Earnings before income taxes	929			22,784			47,821			33,157
Income tax expense	261			10,142			19,306			13,718
Earnings from discontinued operations	668			12,642			28,515			19,439
Noncontrolling interest
Gain on disposition of rental properties	125			—			5,960			965
Operating earnings (loss) from rental properties	3			(207		)	16			393
	128			(207		)	5,976			1,358
Earnings from discontinued operations attributable to Forest City Enterprises, Inc.	$	540		$	12,849		$	22,539		$	18,081

The following table summarizes the pre-tax gain on disposition of rental properties:

	Three Months Ended October 31,					Nine Months Ended October 31,
	2013		2012			2013		2012
	(in thousands)
Apartment Communities:
Millender Center	$	—	$	—		$	21,660	$	—
Southfield	—		13,445			—		13,445
Sheraton Station Square (Hotel)	—		—			18,096		—
Office Buildings:
Higbee Building	—		—			2,922		—
Colorado Studios	1,239		—			1,239		—
Triple net lease properties	—		6,568			222		6,568
Quebec Square (Specialty Retail Center)	—		—			—		8,879
Other	—		(714		)	203		(714		)
	$	1,239	$	19,299		$	44,342	$	28,178

Gain (Loss) on Disposition of Unconsolidated Entities

Upon disposition, investments accounted for on the equity method are not classified as discontinued operations; therefore, gains or losses on the disposition of these properties are reported in continuing operations. The following table summarizes gains and losses on the disposition of unconsolidated entities, which are included in equity in earnings:

		Three Months Ended October 31,				Nine Months Ended October 31,
		2013		2012		2013			2012
		(in thousands)
Westin Convention Center (Hotel)	Pittsburgh, Pennsylvania	$	32,741	$	—	$	32,741		$	—
Office Buildings:
Liberty Center	Pittsburgh, Pennsylvania	1,540		—		1,540			—
Chagrin Plaza I & II	Beachwood, Ohio	—		—		—			1,628
Specialty Retail Centers:
Plaza at Robinson Town Center	Pittsburgh, Pennsylvania	—		—		(1,510		)	—
Village at Gulfstream Park	Hallandale Beach, Florida	—		—		—			14,479
		$	34,281	$	—	$	32,771		$	16,107