8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________________________

Form 8-K

_____________________________________________________________

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): August 4, 2015

_____________________________________________________________

Forest City Enterprises, Inc.

(Exact name of registrant as specified in its charter)

_____________________________________________________________

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)

_____________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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))

Item 2.02. Results of Operations and Financial Condition.

The information in this Current Report on Form 8-K, including exhibits, is being furnished and shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K, including exhibits, shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing, except as may be expressly set forth by specific reference in such filing.

On August 4, 2015, Forest City Enterprises, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter of 2015. This press release refers to its supplemental package which is available on its website. The supplemental package and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

The following exhibits are furnished herewith.

Exhibit Number		Description
99.1	—	Forest City Enterprises, Inc. Supplemental Package for the quarter ended June 30, 2015.
99.2	—	Press Release dated August 4, 2015.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		FOREST CITY ENTERPRISES, INC.
		By:	/s/ ROBERT G. O'BRIEN
		Name:	Robert G. O’Brien
		Title:	Executive Vice President and Chief Financial Officer
Date:	August 4, 2015

EXHIBIT INDEX

Exhibit Number		Description
99.1	—	Forest City Enterprises, Inc. Supplemental Package for the quarter ended June 30, 2015.
99.2	—	Press Release dated August 4, 2015.

EX-99.1

Exhibit 99.1

Supplemental Package

For the Quarter Ended June 30, 2015

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Package

Second Quarter 2015

NYSE: FCEA, FCEB

Index

Corporate Description	2
Selected Financial Information
Consolidated Balance Sheets	5
Consolidated Statements of Operations	9
Net Asset Value Components	13
Supplemental Operating Information
Occupancy Data	15
Retail Sales Data	16
Leasing Summary	17
Comparable Net Operating Income (NOI)	20
NOI Detail	21
NOI by Product Type	23
NOI by Core Market	24
Reconciliation of NOI to Earnings (Loss) Before Income Taxes	25
Segment Operating Results	27
Reconciliation of Net Earnings (Loss) to FFO	35
Reconciliation of FFO to Operating FFO	36
Reconciliation of Net Earnings (Loss) to EBITDA	37
Operating FFO Bridges	39
Historical Trends	41
Development Pipeline	43
Supplemental Financial Information
Common Stock Data/Financial Covenants	48
Nonrecourse Debt Maturities Table	49
Summary of FFO by Segment	51

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 management’s 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, perhaps materially, from the results discussed in the forward-looking statements. Risk factors discussed in Item 1A of our Form 10-Q for the quarter ended June 30, 2015 and Item 1A of our Form 10-K for the year ended December 31, 2014 and other factors that might cause differences, some of which could be material, include, but are not limited to, the company's conversion to REIT status, its ability to qualify or to remain qualified as a REIT, realizing the anticipated benefits to shareholders if it successfully elects REIT status, the impact of complying with REIT qualification requirements, the amount and timing of any future distributions including those that it would be required to make as a REIT, the impact of issuing equity, debt or both to satisfy its E&P Distribution and other REIT conversion costs, the impact of covenants that could prevent it from satisfying REIT distribution requirements, its lack of experience operating as a REIT if it successfully converts, the impact of current lending and capital market conditions on its liquidity, its ability to finance or refinance projects or repay its debt, the impact of the slow economic recovery on its ownership, development and management of its commercial real estate portfolio, general real estate investment and development risks, using modular construction as a new construction methodology and owning a factory to produce modular units, vacancies in its properties, risks associated with developing and managing properties in partnership with others, 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 and other armed conflicts, risks of owning and operating an arena, risks associated with an investment in a professional sports team, the ability to sell all or a portion of its ownership interests in a professional sports team and arena, its substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by its credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, effects of a downgrade or failure of its insurance carriers, environmental liabilities, conflicts of interest, risks associated with the sale of tax credits, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, changes in federal, state or local tax laws, volatility in the market price of its publicly traded securities, inflation risks, litigation risks, cybersecurity risks, cyber incidents, its ability to achieve its strategic goals are based on significant assumptions, the effect on the market price of its common stock following its E&P Distribution and its conversion to REIT status, its ability to obtain the shareholder approval necessary for it to convert to REIT status, its ability to complete non-core asset sales, the impact to its deferred tax liability balance upon conversion to REIT status, and its ability to obtain requisite consents needed to complete the conversion to REIT status as well as other risks listed from time to time in the company's SEC filings, including but not limited to, the company's annual and quarterly reports. We have no obligation to revise or update any forward-looking statements, other than as 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 Financial and Operating Information

Corporate Description

We principally engage in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. We have $10.3 billion of consolidated assets in 24 states and the District of Columbia at June 30, 2015. Our core markets include Boston, Chicago, Dallas, Denver, Los Angeles, Philadelphia and the greater metropolitan areas of New York City, San Francisco and Washington D.C. We have regional offices in Boston, Dallas, Denver, Los Angeles, New York City, San Francisco, Washington, D.C. and our corporate headquarters in Cleveland, Ohio.

We operate through three strategic business units, which represent four reportable operating segments (collectively, the "Real Estate Groups"):

• Commercial Group, our largest strategic business unit, owns, develops, acquires and operates regional malls, specialty/urban retail centers, office and life science buildings and mixed-use projects. Additionally, it operates Barclays Center, a sports and entertainment arena located in Brooklyn, New York, which is reported as a separate operating segment ("Arena").

• Residential Group owns, develops, acquires and operates residential rental properties, including upscale and middle-market apartments, adaptive re-use developments and subsidized senior housing. Additionally, it owns interests in entities that develop and manage military family housing.

• Land Development Group acquires and sells both land and developed lots to residential, commercial and industrial customers at its Stapleton project in Denver, Colorado.

Corporate Activities is the other reportable operating segment, which includes our equity method investment in the Brooklyn Nets (the "Nets"), a member of the National Basketball Association ("NBA").

REIT Conversion

On January 13, 2015, we announced our Board of Directors approved a plan to pursue conversion to Real Estate Investment Trust ("REIT") status. On July 10, 2015, Forest City Realty Trust, Inc., our newly formed wholly owned subsidiary, filed a registration statement on Form S-4 containing a preliminary proxy statement of the Company and a preliminary prospectus of Forest City Realty Trust, Inc. with the Securities and Exchange Commission in connection with our plan to convert to REIT status. We expect to elect REIT status for our taxable year ended December 31, 2016, subject to business conditions, the completion of related preparatory work, obtaining necessary regulatory approvals and third-party consents.

Supplemental Financial and Operating Information

We recommend this supplemental package be read in conjunction with our Form 10-Q for the three and six months ended June 30, 2015. This supplemental package contains information prepared in accordance with generally accepted accounting principles ("GAAP") under the full consolidation accounting method and information prepared under the pro-rata consolidation method, a non-GAAP measure. We present certain financial amounts under the pro-rata consolidation method because we believe this information is useful to financial statement users as this method reflects the manner in which we operate our business. We believe the non-GAAP financial and operating information presented under the pro-rata consolidation method, net operating income ("NOI"), comparable NOI, Funds From Operations ("FFO"), Operating FFO, Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA are necessary to understand our business and operating results, along with net earnings and other GAAP measures. Our financial statement users 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

In line with industry practice, we have a number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. Under GAAP, the full consolidation method is used to report assets and liabilities 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%. Under the pro-rata consolidation method, we generally present our investments proportionate to our economic share of ownership. We provide reconciliations from the full consolidation method to the pro-rata consolidation method throughout this supplemental package.

FFO

The majority of our peers in the publicly traded real estate industry are REITs and report operations using FFO as defined by the National Association of Real Estate Investment Trusts ("NAREIT"). Although we are not a REIT, we believe it is important to publish this measure to allow for easier comparison of our performance to our peers. The major difference between us and our REIT peers is that we are a taxable entity and any taxable income we generate could result in payment of federal or state income taxes. Our REIT peers typically do not pay federal or state income taxes on their qualified REIT investments, but distribute a significant portion of their taxable income to shareholders. Due to our effective tax management policies, we have not historically been a significant payer of income taxes. This has allowed us to retain our internally generated cash flows but has also resulted in large non-cash expenses for deferred taxes as required by GAAP.

2

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial and Operating Information

FFO is defined by NAREIT as net earnings excluding the following items at our proportionate share: i) gain (loss) on full or partial disposition of rental properties, divisions and other investments (net of tax); ii) non-cash charges for real estate depreciation and amortization; iii) impairment of depreciable real estate (net of tax); and iv) cumulative or retrospective effect of change in accounting principle (net of tax).

Operating FFO

In addition to reporting FFO, we report Operating FFO as an additional measure of our operating performance. We believe it is appropriate to adjust FFO for significant items driven by transactional activity and factors relating to the financial and real estate markets, rather than factors specific to the on-going operating performance of our properties. We use Operating FFO as an indicator of continuing operating results in planning and executing our business strategy. Operating FFO should not be considered to be an alternative to net earnings computed under GAAP as an indicator of our operating performance and may not be directly comparable to similarly-titled measures reported by other companies.

We define Operating FFO as FFO adjusted to exclude: i) impairment of non-depreciable real estate; ii) write-offs of abandoned development projects and demolition costs; iii) income recognized on state and federal historic and other tax credits; iv) gains or losses from extinguishment of debt; v) change in fair market value of nondesignated hedges; vi) gains or losses on change in control of interests; vii) the adjustment to recognize rental revenues and rental expense using the straight-line method; viii) participation payments to ground lessors on refinancing of our properties; ix) other transactional items; x) the Nets pre-tax FFO; and xi) income taxes on FFO.

EBITDA

EBITDA, a non-GAAP measure, is defined as net earnings excluding the following items at our proportionate share: i) non-cash charges for depreciation and amortization; ii) interest expense; iii) amortization of mortgage procurement costs; and iv) income taxes. EBITDA may not be directly comparable to similarly-titled measures reported by other companies.

Adjusted EBITDA

We define Adjusted EBITDA as EBITDA adjusted to exclude: i) impairment of real estate; ii) gains or losses from extinguishment of debt; iii) gain (loss) on full or partial disposition of rental properties, development projects and other investments; iv) gains or losses on change in control of interests; and v) other transactional items. We believe EBITDA, Adjusted EBITDA and net debt to Adjusted EBITDA provide additional information in evaluating our credit and ability to service our debt obligations. Adjusted EBITDA may not be directly comparable to similarly-titled measures reported by other companies.

NOI

NOI, a non-GAAP measure, is defined as revenues (excluding straight-line rent adjustments) less operating expenses (including depreciation and amortization for non-real estate groups) plus interest income, equity in earnings (loss) of unconsolidated entities (excluding gain (loss) on disposition, impairment, interest expense, gain (loss) on extinguishment of debt and depreciation and amortization of unconsolidated entities). We believe NOI provides additional information about our core operations and, along with earnings, is necessary to understand our business and operating results. NOI may not be directly comparable to similarly-titled measures reported by other companies.

Comparable NOI

In addition to NOI, we use comparable NOI as a metric to evaluate the performance of our multi-family, office and retail properties. This measure provides a same-store comparison of operating results of all stabilized properties that are open and operating in all periods presented. Write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income, are not directly attributable to an operating property and are considered non-comparable NOI. In addition, certain income and expense items at the property level, such as lease termination income, real estate tax assessments or rebates and participation payments as a result of refinancing transactions and NOI impacts of changes in ownership percentages, are excluded from comparable NOI and are included in non-comparable NOI. Retained properties that are considered non-comparable are disclosed in the Segment Operating Results of this supplemental package. Other properties and activities such as Arena, subsidized senior housing, military housing, corporate activities and land sales are not evaluated on a comparable basis and the NOI from these properties and activities is considered non-comparable NOI.

Comparable NOI is an operating statistic defined as NOI from stabilized properties operated in all periods presented, net of noncontrolling interests. Comparable NOI is useful because it measures the performance of the same properties on a period-to-period basis and is used to assess operating performance and resource allocation of the operating properties within our strategic business units. While property dispositions, acquisitions or other factors impact net earnings in the short term, we believe comparable NOI presents a more consistent view of the overall performance of our operating portfolio from period to period. A reconciliation of NOI to earnings (loss) before income taxes, the most comparable financial measure calculated in accordance with GAAP, a reconciliation of NOI to earnings (loss) before income taxes for each strategic business unit and a reconciliation from NOI to comparable NOI are included in this supplemental package.

3

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial and Operating Information

Supplemental Operating Information

The operating information contained in this document includes: occupancy data, retail sales data, leasing summaries, comparable NOI, NOI by product type and core market, reconciliation of NOI to earnings (loss) before income taxes, segment operating results discussion, reconciliation of net earnings (loss) to FFO, reconciliation of FFO to Operating FFO, reconciliation of net earnings (loss) to EBITDA, Operating FFO bridges, historical trends and our development pipeline. We believe this information gives 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 stabilized properties open and operated in both the three and six months ended June 30, 2015 and 2014. We believe occupancy data, retail sales data, leasing spreads on retail and office properties, and other rental rate information on multi-family properties represent meaningful operating statistics about us.

Corporate Headquarters

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 year ended December 31, 2014, can be found on our website under SEC Filings or may be obtained without charge upon written request to:

Jeffrey B. Linton

Senior Vice President - Corporate Communication

JeffLinton@forestcity.net

Website

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

Jeffrey M. Frericks

Vice President - Capital Markets

JeffreyFrericks@forestcity.net

Investor Presentations

Please note we periodically post updated investor presentations on the Investors page of our website at www.forestcity.net. It is possible the periodic updates may include information deemed to be material. Therefore, we encourage investors, the media, and other interested parties to review the Investors page of our website at www.forestcity.net for the most recent investor presentation.

Transfer Agent and Registrar

Wells Fargo

Shareowner Services

P.O. Box 64854

St. Paul, MN 55164-9440

(800) 468-9716

www.shareowneronline.com

NYSE Listings

FCEA - Class A Common Stock ($.33 1/3 par value)

FCEB - Class B Common Stock ($.33 1/3 par value)

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”). You may obtain a copy of the Plan prospectus and an enrollment card by contacting Wells Fargo Shareowner Services at (800) 468-9716 or by visiting www.shareowneronline.com.

4

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet – June 30, 2015 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties
Residential	$	2,596,651		$	369,493		$	993,490		$	3,220,648
Commercial
Retail centers	1,755,718			—			1,664,284			3,420,002
Office buildings	3,732,452			110,169			92,544			3,714,827
Arena	942,259			580,746			—			361,513
Corporate and other equipment	10,364			—			—			10,364
Total completed rental properties	9,037,444			1,060,408			2,750,318			10,727,354
Projects under construction
Residential	320,922			178,353			74,881			217,450
Commercial
Retail centers	—			—			—			—
Office buildings	34,994			—			55,801			90,795
Total projects under construction	355,916			178,353			130,682			308,245
Projects under development
Operating properties	35,004			—			11,444			46,448
Residential	140,173			25,506			226,612			341,279
Commercial
Retail centers	39,104			—			3,941			43,045
Office buildings	88,930			8,834			3,470			83,566
Total projects under development	303,211			34,340			245,467			514,338
Total projects under construction and development	659,127			212,693			376,149			822,583
Land inventory	93,918			5,044			10,217			99,091
Total Real Estate	9,790,489			1,278,145			3,136,684			11,649,028
Less accumulated depreciation	(1,658,183		)	(122,613		)	(623,296		)	(2,158,866		)
Real Estate, net	8,132,306			1,155,532			2,513,388			9,490,162
Cash and equivalents	334,850			58,832			54,558			330,576
Restricted cash	244,890			27,190			118,450			336,150
Notes and accounts receivable, net	446,160			31,559			56,762			471,363
Investments in and advances to unconsolidated entities	667,485			(125,862		)	(652,424		)	140,923
Lease and mortgage procurement costs, net	174,058			24,352			82,232			231,938
Prepaid expenses and other deferred costs, net	114,762			14,186			15,727			116,303
Intangible assets, net	213,792			16,007			15,853			213,638
Total Assets	$	10,328,303		$	1,201,796		$	2,204,546		$	11,331,053

5

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet – June 30, 2015 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Liabilities and Equity
Liabilities
Mortgage debt and notes payable, nonrecourse
Completed rental properties
Residential	$	1,424,181		$	206,252		$	684,948		$	1,902,877
Commercial
Retail centers	635,892			—			1,246,154			1,882,046
Office buildings	1,771,073			43,884			64,784			1,791,973
Arena	459,274			312,794			—			146,480
Total completed rental properties	4,290,420			562,930			1,995,886			5,723,376
Projects under construction
Residential	85,382			20,376			2,241			67,247
Commercial
Retail centers	—			—			—			—
Office buildings	28,796			—			35,214			64,010
Total projects under construction	114,178			20,376			37,455			131,257
Projects under development
Operating properties	—			—			—			—
Residential	31,742			—			125,965			157,707
Commercial
Retail centers	—			—			—			—
Office buildings	—			—			—			—
Total projects under development	31,742			—			125,965			157,707
Total projects under construction and development	145,920			20,376			163,420			288,964
Land inventory	—			—			8,580			8,580
Total mortgage debt and notes payable, nonrecourse	4,436,340			583,306			2,167,886			6,020,920
Revolving credit facility	—			—			—			—
Convertible senior debt	411,194			—			—			411,194
Construction payables	141,716			54,206			22,827			110,337
Operating accounts payable and accrued expenses	717,475			93,106			149,376			773,745
Accrued derivative liability	87,050			—			7,857			94,907
Total Accounts payable, accrued expenses and other liabilities	946,241			147,312			180,060			978,989
Cash distributions and losses in excess of investments in unconsolidated entities	138,697			(21,361		)	(143,400		)	16,658
Deferred income taxes	668,172			—			—			668,172
Total Liabilities	6,600,644			709,257			2,204,546			8,095,933
Redeemable Noncontrolling Interest	173,281			173,281			—			—
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss	3,135,591			—			—			3,135,591
Accumulated other comprehensive loss	(52,133		)	—			—			(52,133		)
Total Shareholders’ Equity	3,083,458			—			—			3,083,458
Noncontrolling interest	470,920			319,258			—			151,662
Total Equity	3,554,378			319,258			—			3,235,120
Total Liabilities and Equity	$	10,328,303		$	1,201,796		$	2,204,546		$	11,331,053

6

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet – December 31, 2014 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties
Residential	$	2,470,813		$	370,855		$	1,060,830		$	3,160,788
Commercial
Retail centers	1,747,127			—			1,654,140			3,401,267
Office buildings	2,584,854			107,656			262,524			2,739,722
Arena	940,029			579,518			—			360,511
Corporate and other equipment	10,738			—			—			10,738
Total completed rental properties	7,753,561			1,058,029			2,977,494			9,673,026
Projects under construction
Residential	176,148			96,567			9,262			88,843
Commercial
Retail centers	—			—			—			—
Office buildings	8,940			—			42,923			51,863
Total projects under construction	185,088			96,567			52,185			140,706
Projects under development
Operating properties	29,187			—			12,589			41,776
Residential	139,923			22,769			214,084			331,238
Commercial
Retail centers	33,807			—			4,014			37,821
Office buildings	89,952			8,791			3,180			84,341
Total projects under development	292,869			31,560			233,867			495,176
Total projects under construction and development	477,957			128,127			286,052			635,882
Land inventory	97,469			5,351			8,537			100,655
Total Real Estate	8,328,987			1,191,507			3,272,083			10,409,563
Less accumulated depreciation	(1,555,965		)	(106,096		)	(680,584		)	(2,130,453		)
Real Estate, net	6,773,022			1,085,411			2,591,499			8,279,110
Cash and equivalents	326,518			41,062			79,716			365,172
Restricted cash	266,530			30,484			125,680			361,726
Notes and accounts receivable, net	419,038			26,052			59,786			452,772
Investments in and advances to unconsolidated entities	620,466			(105,718		)	(605,009		)	121,175
Lease and mortgage procurement costs, net	173,104			24,061			81,617			230,660
Prepaid expenses and other deferred costs, net	112,484			12,635			14,702			114,551
Intangible assets, net	123,778			17,554			16,436			122,660
Total Assets	$	8,814,940		$	1,131,541		$	2,364,427		$	10,047,826

7

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet – December 31, 2014 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Liabilities and Equity
Liabilities
Mortgage debt and notes payable, nonrecourse
Completed rental properties
Residential	$	1,376,329		$	202,112		$	740,668		$	1,914,885
Commercial
Retail centers	638,310			—			1,252,645			1,890,955
Office buildings	1,642,913			72,277			247,424			1,818,060
Arena	457,055			310,381			—			146,674
Total completed rental properties	4,114,607			584,770			2,240,737			5,770,574
Projects under construction
Residential	61,905			4,266			1,293			58,932
Commercial
Retail centers	—			—			—			—
Office buildings	29,422			—			23,370			52,792
Total projects under construction	91,327			4,266			24,663			111,724
Projects under development
Operating properties	—			—			—			—
Residential	32,267			—			97,467			129,734
Commercial
Retail centers	—			—			—			—
Office buildings	—			—			—			—
Total projects under development	32,267			—			97,467			129,734
Total projects under construction and development	123,594			4,266			122,130			241,458
Land inventory	—			—			8,580			8,580
Total mortgage debt and notes payable, nonrecourse	4,238,201			589,036			2,371,447			6,020,612
Revolving credit facility	—			—			—			—
Convertible senior debt	700,000			—			—			700,000
Construction payables	110,108			26,866			34,557			117,799
Operating accounts payable and accrued expenses	634,541			71,262			162,154			725,433
Accrued derivative liability	102,362			—			7,755			110,117
Total Accounts payable, accrued expenses and other liabilities	847,011			98,128			204,466			953,349
Cash distributions and losses in excess of investments in unconsolidated entities	211,493			(21,775		)	(211,486		)	21,782
Deferred income taxes	482,474			—			—			482,474
Total Liabilities	6,479,179			665,389			2,364,427			8,178,217
Redeemable Noncontrolling Interest	183,038			183,038			—			—
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss	1,776,793			—			—			1,776,793
Accumulated other comprehensive loss	(58,846		)	—			—			(58,846		)
Total Shareholders’ Equity	1,717,947			—			—			1,717,947
Noncontrolling interest	434,776			283,114			—			151,662
Total Equity	2,152,723			283,114			—			1,869,609
Total Liabilities and Equity	$	8,814,940		$	1,131,541		$	2,364,427		$	10,047,826

8

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statement of Operations – Three Months Ended June 30, 2015 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Revenues
Rental	$	147,980		$	11,410		$	62,880		$	199,450
Tenant recoveries	32,355			2,117			17,184			47,422
Service and management fees	11,863			37			1,637			13,463
Parking and other	14,623			647			4,954			18,930
Arena	27,040			12,201			—			14,839
Land sales	15,391			1,539			139			13,991
Subsidized Senior Housing	—			—			12,223			12,223
Military Housing	10,507			1,655			1,412			10,264
Total revenues	259,759			29,606			100,429			330,582
Expenses
Property operating and management	95,707			4,883			24,374			115,198
Real estate taxes	21,910			1,823			8,129			28,216
Ground rent	3,047			79			3,083			6,051
Arena operating	17,862			7,901			—			9,961
Cost of land sales	4,216			394			—			3,822
Subsidized Senior Housing operating	—			—			7,362			7,362
Military Housing operating	2,126			918			633			1,841
Corporate general and administrative	12,201			—			—			12,201
REIT conversion and reorganization costs	9,771			—			—			9,771
	166,840			15,998			43,581			194,423
Depreciation and amortization	65,002			7,585			20,527			77,944
Write-offs of abandoned development projects	5,778			—			10,191			15,969
Total expenses	237,620			23,583			74,299			288,336
Operating income	22,139			6,023			26,130			42,246
Interest and other income	9,278			506			363			9,135
Net gain on disposition of full or partial interests in rental properties	—			—			19,284			19,284
Net gain on change in control of interests	487,684			—			—			487,684
Interest expense	(47,752		)	(7,263		)	(25,182		)	(65,671		)
Amortization of mortgage procurement costs	(1,862		)	(45		)	(791		)	(2,608		)
Loss on extinguishment of debt	(3,190		)	—			(383		)	(3,573		)
Earnings (loss) before income taxes	466,297			(779		)	19,421			486,497
Income tax expense
Current	5,268			—			—			5,268
Deferred	176,962			—			—			176,962
	182,230			—			—			182,230
Earnings (loss) from unconsolidated entities, gross of tax	19,009			99			(19,421		)	(511		)
Net earnings (loss)	303,076			(680		)	—			303,756
Noncontrolling interests
Loss attributable to noncontrolling interests, gross of tax	680			680			—			—
Net earnings attributable to Forest City Enterprises, Inc.	$	303,756		$	—		$	—		$	303,756

9

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statement of Operations – Six Months Ended June 30, 2015 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Revenues
Rental	$	289,086		$	22,423		$	127,481		$	394,144
Tenant recoveries	63,080			3,761			35,470			94,789
Service and management fees	21,483			72			3,351			24,762
Parking and other	26,499			1,216			10,301			35,584
Arena	55,860			25,202			—			30,658
Land sales	24,054			2,403			1,099			22,750
Subsidized Senior Housing	—			—			24,102			24,102
Military Housing	16,779			1,655			2,781			17,905
Total revenues	496,841			56,732			204,585			644,694
Expenses
Property operating and management	188,725			8,854			50,831			230,702
Real estate taxes	42,698			3,316			17,047			56,429
Ground rent	5,675			167			6,181			11,689
Arena operating	37,820			16,868			—			20,952
Cost of land sales	6,527			611			—			5,916
Subsidized Senior Housing operating	—			—			15,442			15,442
Military Housing operating	4,351			923			1,347			4,775
Corporate general and administrative	25,704			—			—			25,704
REIT conversion and reorganization costs	15,983			—			—			15,983
	327,483			30,739			90,848			387,592
Depreciation and amortization	126,816			15,146			42,196			153,866
Write-offs of abandoned development projects	5,778			—			10,191			15,969
Total expenses	460,077			45,885			143,235			557,427
Operating income	36,764			10,847			61,350			87,267
Interest and other income	18,982			916			646			18,712
Net gain on disposition of full or partial interests in rental properties	—			—			19,284			19,284
Net gain on change in control of interests	487,684			—			—			487,684
Interest expense	(100,328		)	(15,176		)	(51,036		)	(136,188		)
Amortization of mortgage procurement costs	(3,963		)	(144		)	(1,588		)	(5,407		)
Loss on extinguishment of debt	(38,344		)	—			(608		)	(38,952		)
Earnings (loss) before income taxes	400,795			(3,557		)	28,048			432,400
Income tax expense
Current	3,524			—			—			3,524
Deferred	179,521			—			—			179,521
	183,045			—			—			183,045
Earnings from unconsolidated entities, gross of tax	28,322			82			(28,048		)	192
Net earnings (loss)	246,072			(3,475		)	—			249,547
Noncontrolling interests
Loss attributable to noncontrolling interests, gross of tax	3,475			3,475			—			—
Net earnings attributable to Forest City Enterprises, Inc.	$	249,547		$	—		$	—		$	249,547

10

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statement of Operations – Three Months Ended June 30, 2014 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Revenues
Rental	$	130,562		$	3,671		$	69,088		$	136		$	196,115
Tenant recoveries	25,542			1,391			19,160			(97		)	43,214
Service and management fees	10,916			27			2,157			—			13,046
Parking and other	12,520			228			5,440			—			17,732
Arena	24,572			11,090			—			—			13,482
Land sales	18,537			1,791			1,571			—			18,317
Subsidized Senior Housing	—			—			11,635			—			11,635
Military Housing	6,988			(31		)	1,433			—			8,452
Total revenues	229,637			18,167			110,484			39			321,993
Expenses
Property operating and management	89,637			1,546			25,833			181			114,105
Real estate taxes	19,548			750			9,739			(1,930		)	26,607
Ground rent	2,174			87			2,987			—			5,074
Arena operating	14,818			6,609			—			—			8,209
Cost of land sales	7,837			655			985			—			8,167
Subsidized Senior Housing operating	—			—			7,297			—			7,297
Military Housing operating	1,734			(24		)	725			—			2,483
Corporate general and administrative	10,059			—			—			—			10,059
	145,807			9,623			47,566			(1,749		)	182,001
Depreciation and amortization	59,318			4,747			22,180			—			76,751
Write-offs of abandoned development projects and demolition costs	933			—			—			—			933
Impairment of real estate	129,829			—			—			—			129,829
Total expenses	335,887			14,370			69,746			(1,749		)	389,514
Operating income (loss)	(106,250		)	3,797			40,738			1,788			(67,521		)
Interest and other income	12,375			566			(372		)	—			11,437
Net loss on disposition of partial interest in development project	(19,590		)	(3,379		)	—			—			(16,211		)
Net gain on disposition of full or partial interests in rental properties	—			—			16,090			1,276			17,366
Interest expense	(57,153		)	(5,848		)	(27,905		)	(55		)	(79,265		)
Amortization of mortgage procurement costs	(1,768		)	(87		)	(788		)	—			(2,469		)
Loss on extinguishment of debt	(714		)	—			(44		)	(431		)	(1,189		)
Earnings (loss) before income taxes	(173,100		)	(4,951		)	27,719			2,578			(137,852		)
Income tax expense (benefit)
Current	(30,435		)	—			—			1,928			(28,507		)
Deferred	(16,512		)	—			—			(490		)	(17,002		)
	(46,947		)	—			—			1,438			(45,509		)
Earnings (loss) from unconsolidated entities, gross of tax	27,168			98			(27,719		)	—			(649		)
Earnings (loss) from continuing operations	(98,985		)	(4,853		)	—			1,140			(92,992		)
Discontinued operations, net of tax
Operating earnings from rental properties	797			—			—			(797		)	—
Gain on disposition of rental properties	343			—			—			(343		)	—
	1,140			—			—			(1,140		)	—
Net loss	(97,845		)	(4,853		)	—			—			(92,992		)
Noncontrolling interests
Loss from continuing operations attributable to noncontrolling interests, gross of tax	4,853			4,853			—			—			—
Net loss attributable to Forest City Enterprises, Inc.	$	(92,992	)	$	—		$	—		$	—		$	(92,992	)

11

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statement of Operations – Six Months Ended June 30, 2014 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Revenues
Rental	$	258,483		$	7,390		$	140,541		$	4,015		$	395,649
Tenant recoveries	59,064			3,289			37,156			1,377			94,308
Service and management fees	23,903			77			3,605			—			27,431
Parking and other	24,668			491			11,057			36			35,270
Arena	59,929			27,040			—			—			32,889
Land sales	35,244			3,462			2,441			1,601			35,824
Subsidized Senior Housing	—			—			23,296			—			23,296
Military Housing	17,883			1,358			2,846			—			19,371
Total revenues	479,174			43,107			220,942			7,029			664,038
Expenses
Property operating and management	190,728			3,360			54,458			2,539			244,365
Real estate taxes	39,754			1,607			18,550			(667		)	56,030
Ground rent	4,054			175			7,134			—			11,013
Arena operating	38,294			17,112			—			—			21,182
Cost of land sales	14,202			1,258			990			1,142			15,076
Subsidized Senior Housing operating	—			—			15,425			—			15,425
Military Housing operating	8,258			1,311			1,523			—			8,470
Corporate general and administrative	21,620			—			—			—			21,620
	316,910			24,823			98,080			3,014			393,181
Depreciation and amortization	114,327			9,362			42,983			986			148,934
Write-offs of abandoned development projects and demolition costs	933			—			—			—			933
Impairment of real estate	129,829			—			—			—			129,829
Total expenses	561,999			34,185			141,063			4,000			672,877
Operating income (loss)	(82,825		)	8,922			79,879			3,029			(8,839		)
Interest and other income	23,878			1,032			196			—			23,042
Net loss on disposition of partial interest in development project	(19,590		)	(3,379		)	—			—			(16,211		)
Net gain (loss) on disposition of full or partial interests in rental properties	(467		)	—			40,886			28,042			68,461
Net gain on change in control of interests	2,759			—			—			—			2,759
Interest expense	(119,605		)	(12,376		)	(55,905		)	(5,538		)	(168,672		)
Amortization of mortgage procurement costs	(3,893		)	(250		)	(1,589		)	(41		)	(5,273		)
Loss on extinguishment of debt	(878		)	—			(296		)	(448		)	(1,622		)
Earnings (loss) before income taxes	(200,621		)	(6,051		)	63,171			25,044			(106,355		)
Income tax expense (benefit)
Current	5,499			—			—			3,675			9,174
Deferred	(48,515		)	—			—			8,407			(40,108		)
	(43,016		)	—			—			12,082			(30,934		)
Earnings (loss) from unconsolidated entities, gross of tax	61,197			77			(63,171		)	—			(2,051		)
Earnings (loss) from continuing operations	(96,408		)	(5,974		)	—			12,962			(77,472		)
Discontinued operations, net of tax
Operating loss from rental properties	(1,844		)	(8		)	—			1,836			—
Gain on disposition of rental properties	14,856			58			—			(14,798		)	—
	13,012			50			—			(12,962		)	—
Net loss	(83,396		)	(5,924		)	—			—			(77,472		)
Noncontrolling interests
Loss from continuing operations attributable to noncontrolling interests, gross of tax	5,974			5,974			—			—			—
Earnings from discontinued operations attributable to noncontrolling interests	(50		)	(50		)	—			—			—
	5,924			5,924			—			—			—
Net loss attributable to Forest City Enterprises, Inc.	$	(77,472	)	$	—		$	—		$	—		$	(77,472	)

12

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Net Asset Value Components – June 30, 2015

The following represents components of our business relevant to calculate Net Asset Value (“NAV”), a non-GAAP measure. There is no directly comparable GAAP financial measure to NAV. We consider NAV to be a useful supplemental measure which assists both management and investors to estimate the fair value of our Company. The calculation of NAV involves significant estimates and can be calculated using various methods. Each individual investor must determine the specific methodology, assumptions and estimates to use to arrive at an estimated NAV of the Company.

The components of NAV do not consider the potential changes in rental and fee income streams or development platform. The components include non-GAAP financial measures, such as NOI and information related to our rental properties business prepared using the pro-rata consolidation method. Although these measures are not presented in accordance with GAAP, investors can use these non-GAAP measures as supplementary information to evaluate our business. The non-GAAP measures presented are not intended to be performance measures that should be regarded as alternatives to, or more meaningful than, our GAAP measures.

Net Asset Value Components - June 30, 2015
Completed Rental Properties
	Q2 2015			Net Stabilized			Stabilized			Annualized			Nonrecourse
(Dollars in millions at pro-rata)	NOI (1)			Adjustments (2)			NOI			Stabilized NOI (3)			Debt (4)
Commercial Real Estate	A			B			=A+B
Retail
Regional Malls	$	31.6		$	4.1		$	35.7		$	142.8		$	(1,361.2	)
Specialty Retail Centers	13.3			0.3			13.6			54.4			(520.8		)
Subtotal Retail	$	44.9		$	4.4		$	49.3		$	197.2		$	(1,882.0	)
Office
Life Science	$	14.1		$	8.1		$	22.2		$	88.8		$	(563.5	)
New York	36.0			0.3			36.3			145.2			(1,066.1		)
Central Business District	5.1			(0.2		)	4.9			19.6			(57.6		)
Suburban/Other	4.3			(0.3		)	4.0			16.0			(104.8		)
Subtotal Office	$	59.5		$	7.9		$	67.4		$	269.6		$	(1,792.0	)
Arena	$	4.9		$	2.7		$	7.6		$	30.3		$	(146.5	)
Residential Real Estate
Apartments, Core Markets	$	30.7		$	3.0		$	33.7		$	134.8		$	(1,362.7	)
Apartments, Non-Core Markets	10.7			1.8			12.5			50.0			(380.8		)
Subsidized Senior Housing	4.9			(0.8		)	4.1			16.4			(130.8		)
Military Housing	8.8			(4.5		)	4.3			17.0			(28.6		)
Subtotal Rental Properties	$	164.4		$	14.5		$	178.9		$	715.3		$	(5,723.4	)
Other	(26.6		)	17.8			(8.8		)	(35.0		)	—
Total Rental Properties	$	137.8		$	32.3		$	170.1		$	680.3		$	(5,723.4	)
Development Pipeline										Book Value (4)
Projects under construction										$	308.2		$	(131.3	)
Projects under development										$	514.3		$	(157.7	)
Land inventory										$	99.1		$	(8.6	)
Other Tangible Assets
Cash and equivalents										$	330.6
Restricted cash										$	336.2
Notes and accounts receivable, net (5)										$	471.4
Net investments and advances to unconsolidated entities										$	124.3
Prepaid expenses and other deferred costs, net										$	116.3
Recourse Debt and Other Liabilities
Revolving credit facility										$	—
Convertible senior debt										$	(411.2	)
Less: convertible debt										$	411.2
Construction payables										$	(110.3	)
Operating accounts payable and accrued expenses (6)										$	(773.7	)
Share Data (in millions)
Diluted weighted average number of shares for the three months ended June 30, 2015										257.9
Shares outstanding (including diluted shares) as of June 30, 2015										274.8

13

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Net Asset Value Components – June 30, 2015(continued)

(1) Q2 2015 NOI is reconciled to NOI at full consolidation by Product Group for the three months ended June 30, 2015 in the Supplemental Operating Information section of this supplemental package.

(2) The net stabilized adjustments column represents net adjustments assumed to arrive at an estimated annualized stabilized NOI for properties currently in initial lease-up periods, net of the removal of partial period NOI for recently sold properties. The following properties are currently in their initial lease-up periods:

	Cost at Full Consolidation (GAAP)		Cost at FCE Pro-Rata Share (Non-GAAP)		Lease Commitment % as of
Property					July 28, 2015
	(in millions)
Apartments:
Radian	$	0.0	$	65.0	97%; Retail: 100%
The Yards - Twelve12	$	119.5	$	119.5	95%; Retail: 96%
3700M	$	0.0	$	22.7	84%
Winchester Lofts (Non-Core Market)	$	62.8	$	62.8	72%
Regional Mall:
Westchester's Ridge Hill	$	891.1	$	891.1	71%/81%

a) NOI for the apartments in the above tableis reflected at 5% of the pro-rata cost. This assumption does not reflect our anticipated NOI, but rather is used in order to establish a hypothetical basis for an estimated valuation of leased-up properties.

b) NOI for Westchester's Ridge Hill is reflected at 4% of the pro-rata cost disclosed in the above table. This assumption does not reflect our anticipated NOI, but rather is used in order to establish a hypothetical basis for an estimated valuation of this leased-up property. The lease commitment percentage above represents 71% of leases that have been signed of the total 1,336,000 square feet after construction is complete. The leased percentage excluding Parcel L is 81%. Parcel L is a self contained pad site at the southern end of the center and has been assumed to be leased in the future predominantly to a single retail tenant in its own phase. Given its location on the end of the site, the lease commitment percentage has been presented both with and without the anticipated square footage for Parcel L in the denominator of Gross Leasable Area.

c) Annual NOI for the Arena is expected to stabilize at approximately $55 million at full consolidation in the 2016 calendar year. Based on the partnership agreement, we expect to receive 55% of the NOI allocation until certain member loans are repaid. Therefore, we have included a stabilization adjustment to the Q2 2015 NOI to arrive at an annual stabilized NOI of $30.3 million.

In addition, we include stabilization adjustments to the Q2 2015 NOI as follows:

d) Due to the June 2015 acquisition of our former partner's 49% equity interest in seven life science office properties and two parking garages at University Park at MIT ("MIT Assets") (Life Science), we have included stabilization adjustments to the Q2 2015 NOI to reflect NOI at our new 100% ownership percentage. The estimated cash on cost yield of this investment is approximately 5.25%, based on forward 12-month NOI, adjusted for the stabilization of 88 Sidney Street, one of the seven office buildings, which had a temporary decline in occupancy.

e) Due to planned renovations at Ballston Common (Regional Mall), we have included stabilization adjustments to the Q2 2015 NOI to arrive at our estimate of stabilized NOI.

f) Due to quarterly fluctuations of NOI as a result of distribution restrictions from our limited-distribution subsidized senior housing properties, we have included a stabilization adjustment to the Q2 2015 NOI to arrive at our estimate of stabilized NOI.

g) At the conclusion of the initial development period at each of our military housing communities, we estimate the ongoing property and asset management fees, net of operating expenses, to be $17.0 million.

h) Other excludes write-offs of abandoned development projects of $16.0 million, tax credit income of $4.0 million and certain variable development and operating overhead.

The net stabilized adjustments are not comparable to any GAAP measure and therefore do not have a reconciliation to the nearest comparable GAAP measure.

(3) Pro-rata annualized stabilized NOI is calculated by taking the Q2 2015 stabilized NOI times a multiple of four.

(4) Amounts are derived from the respective pro-rata balance sheet line item as of June 30, 2015 and are reconciled to their GAAP equivalents in the Selected Financial Information section of this supplemental package.

(5) Includes $161.0 million of straight-line rent receivable (net of $8.7 million of allowance for doubtful accounts).

(6) Includes $61.0 million of straight-line rent payable.

14

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Occupancy Data

Retail and office occupancy data represents leased occupancy at the end of the quarter. Leased occupancy percentage is calculated by dividing the sum of the total tenant occupied space under the lease and vacant space under lease by gross leasable area ("GLA"). Occupancy data includes leases with original terms of one year or less.

	Leased Occupancy
	As of June 30,
Retail	2015	2014
Comparable	93.6%	91.9%
Total	93.3%	91.8%
Office
Comparable	95.7%	93.5%
Total	95.1%	91.7%

Residential occupancy data represents economic occupancy, which is calculated by dividing the period-to-date gross potential rent less vacancy by gross potential rent. Residential occupancy data excludes military and limited-distribution subsidized senior housing units.

	Economic Occupancy
	Six Months Ended June 30,
Residential	2015	2014
Comparable	95.3%	94.5%
Total	93.3%	92.2%

The graph below provides comparable leased and economic occupancy data as reported in previous quarters. Prior period amounts may differ from above since the properties qualifying as comparable change from period to period.

Comparable Occupancy Percentage Trend

15

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Retail Sales Data

The following provides retail sales data for small shop inline tenants at our regional malls. We believe this data allows investors to better understand the productivity of our small shop inline tenants.

The graph below represents regional mall sales for tenants that were open and operating for the duration of each rolling 12-month period presented. Those tenants that have begun and/or ceased operations in the rolling 12-month periods shown are not included.

FCE Regional Mall Sales per Square Foot ^{(1) (2)} 

Rolling 12-month basis for periods presented

(1) All sales data is derived from schedules provided by our tenants and is not subject to the same internal control and verification procedures applied to other data supplied in this supplemental package.

(2) The increase for the rolling 12-months ended September 30, 2014 over the prior period is partially due to the inclusion of sales data at Westchester’s Ridge Hill. With a comparable inclusion of Westchester’s Ridge Hill sales data, sales per square foot for the rolling 12-months ended June 30, 2014 would have been $520.

16

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Leasing Summary

Retail Centers

The following tables represent those new leases and GLA signed and rent per square foot ("SF") on the same space in which there was a former tenant and existing tenant renewals.

Regional Malls

Quarter	Number of Leases Signed	GLA Signed	Contractual Rent Per SF (1)		Expired Rent  Per SF (1)		Cash Basis % Change over Prior Rent
Q3 2014	45	128,871	$	50.33	$	41.58	21.0	%
Q4 2014	31	115,496	$	59.57	$	47.42	25.6	%
Q1 2015	34	169,951	$	46.51	$	36.92	26.0	%
Q2 2015	21	48,967	$	63.79	$	49.62	28.6	%
Total	131	463,285	$	52.89	$	42.23	25.2	%

Specialty Retail Centers

Quarter	Number of Leases Signed	GLA Signed	Contractual Rent Per SF (1)		Expired Rent  Per SF (1)		Cash Basis % Change over Prior Rent
Q3 2014	4	9,169	$	32.40	$	30.36	6.7	%
Q4 2014	3	23,198	$	52.55	$	50.48	4.1	%
Q1 2015	11	40,421	$	34.55	$	35.41	(2.4	)%
Q2 2015	7	42,562	$	31.74	$	29.95	6.0	%
Total	25	115,350	$	36.96	$	36.02	2.6	%

Office Buildings

The following table represents those new leases and GLA signed on the same space in which there was a former tenant and existing tenant renewals along with all other new leases signed within the rolling 12-month period.

	Same-Space Leases								Other New Leases
Quarter	Number of Leases Signed	GLA Signed	Contractual Rent Per SF (1)		Expired  Rent Per SF (1)		Cash Basis  % Change over Prior Rent		Number of Leases Signed	GLA Signed	Contractual Rent Per SF (1)		Total GLA Signed
Q3 2014	14	136,474	$	55.11	$	55.63	(0.9	)%	3	21,513	$	21.18	157,987
Q4 2014	38	450,848	$	40.31	$	38.36	5.1	%	5	44,432	$	36.26	495,280
Q1 2015	18	75,460	$	22.49	$	21.40	5.1	%	2	8,196	$	21.94	83,656
Q2 2015	24	223,312	$	33.34	$	31.82	4.8	%	4	4,696	$	20.89	228,008
Total	94	886,094	$	39.51	$	37.95	4.1	%	14	78,837	$	29.74	964,931

(1) Retail and Office contractual rent per square foot includes base rent and fixed additional charges for common area maintenance and real estate taxes as of rental commencement. Retail contractual rent per square foot also includes fixed additional marketing/promotional charges. For all expiring leases, contractual rent per square foot includes any applicable escalations.

17

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Apartment Communities

The following tables present leasing information of our apartment communities. Prior period amounts may differ from data as reported in previous quarters since the properties that qualify as comparable change from period to period.

Quarterly Comparison

		Monthly Average Residential Rental Rates (2)						Economic Residential Occupancy
Comparable Apartment	Leasable Units	Three Months Ended June 30,						Three Months Ended June 30,
Communities (1)	at Pro-Rata % (3)	2015		2014		% Change		2015		2014		% Change
Core Markets	7,967	$	1,894	$	1,843	2.8	%	95.9	%	95.9	%	—
Non-Core Markets	7,401	$	890	$	870	2.3	%	94.8	%	93.2	%	1.6	%
Total Comparable Apartments	15,368	$	1,411	$	1,375	2.6	%	95.6	%	95.1	%	0.5	%

Year-to-Date Comparison

		Monthly Average Residential Rental Rates (2)						Economic Residential Occupancy
Comparable Apartment	Leasable Units	Six Months Ended June 30,						Six Months Ended June 30,
Communities (1)	at Pro-Rata % (3)	2015		2014		% Change		2015		2014		% Change
Core Markets	7,967	$	1,886	$	1,836	2.7	%	95.7	%	95.4	%	0.3	%
Non-Core Markets	7,401	$	886	$	867	2.2	%	94.3	%	92.6	%	1.7	%
Total Comparable Apartments	15,368	$	1,405	$	1,369	2.6	%	95.3	%	94.5	%	0.8	%

Sequential Comparison

		Monthly Average Residential Rental Rates (2)						Economic Residential Occupancy
		Three Months Ended						Three Months Ended
Comparable Apartment	Leasable Units	June 30,		March 31,				June 30,		March 31,
Communities (1)	at Pro-Rata % (3)	2015		2015		% Change		2015		2015		% Change
Core Markets	8,487	$	1,863	$	1,847	0.9	%	95.9	%	95.2	%	0.7	%
Non-Core Markets	7,759	$	936	$	925	1.2	%	94.8	%	93.8	%	1.0	%
Total Comparable Apartments	16,246	$	1,420	$	1,407	0.9	%	95.6	%	94.7	%	0.9	%

(1) Includes stabilized apartment communities completely opened and operated in the periods presented. These apartment communities include units leased at affordable apartment rates which provide a discount from average market rental rates. For the three months ended June 30, 2015, 17.5% of leasable units in core markets and 4.7% of leasable units in non-core markets were affordable housing units. Excludes all military and limited-distribution subsidized senior housing units.

(2) Represents gross potential rent less concessions.

(3) Leasable units at pro-rata represent our share of comparable leasable units at the apartment community.

18

(THIS PAGE INTENTIONALLY LEFT BLANK)

19

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Comparable NOI - Pro-Rata

	Three Months Ended		Six Months Ended
	June 30, 2015		June 30, 2015
Retail	4.4	%	5.4	%
Office	2.4	%	3.9	%
Apartments	5.2	%	5.7	%
Total	3.8	%	4.8	%

The tables below provide the percentage change of Comparable NOI as reported in previous quarters. GAAP reconciliations for previous periods can be found in prior supplemental packages furnished with the Securities and Exchange Commission and are available on our website at www.forestcity.net.

Quarterly Historical Trends											Annual Historical Trends
	Three Months Ended											Year Ended		11 Months Ended		Year Ended
	June 30, 2015		March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014			December 31, 2014		December 31, 2013		January 31, 2013
Retail	4.4	%	6.4	%	10.5	%	6.5	%	2.3	%	Retail	2.6	%	3.6	%	2.1	%
Office	2.4	%	4.4	%	9.2	%	4.7	%	7.1	%	Office	6.6	%	(6.4	)%	2.1	%
Apartments	5.2	%	5.5	%	2.8	%	3.4	%	4.6	%	Apartments	4.3	%	4.7	%	7.3	%
Total	3.8	%	5.3	%	7.7	%	4.8	%	5.0	%	Total	4.8	%	(0.2	)%	3.2	%

20

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

	Net Operating Income(in thousands)
	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014											% Change
	Full Consolidation (1)			Less Noncontrolling Interest			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (1)			Less Noncontrolling Interest			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (1)		Pro-Rata Consolidation (Non-GAAP)
Retail
Comparable
Adjusted revenues	$	76,233		$	—		$	76,233		$	72,808		$	—		$	—	$	72,808		4.7	%	4.7	%
Adjusted operating expenses	34,801			—			34,801			33,115			—			—		33,115			5.1	%	5.1	%
Comparable NOI	41,432			—			41,432			39,693			—			—		39,693			4.4	%	4.4	%
Non-Comparable NOI	3,492			—			3,492			3,846			—			1,808		5,654
Total	44,924			—			44,924			43,539			—			1,808		45,347
Office Buildings
Comparable
Adjusted revenues	106,661			4,900			101,761			101,388			4,325			—		97,063			5.2	%	4.8	%
Adjusted operating expenses	45,554			2,426			43,128			41,884			2,081			—		39,803			8.8	%	8.4	%
Comparable NOI	61,107			2,474			58,633			59,504			2,244			—		57,260			2.7	%	2.4	%
Non-Comparable NOI	920			84			836			(176		)	(40		)	—		(136		)
Total	62,027			2,558			59,469			59,328			2,204			—		57,124
Apartments
Comparable
Adjusted revenues	72,052			4,347			67,705			69,072			4,019			—		65,053			4.3	%	4.1	%
Adjusted operating expenses	30,240			1,653			28,587			29,456			1,573			—		27,883			2.7	%	2.5	%
Comparable NOI	41,812			2,694			39,118			39,616			2,446			—		37,170			5.5	%	5.2	%
Non-Comparable NOI	5,144			2,814			2,330			2,027			(1,688		)	—		3,715
Total	46,956			5,508			41,448			41,643			758			—		40,885
Arena	9,153			4,300			4,853			9,357			4,481			—		4,876
Subsidized Senior Housing	4,894			—			4,894			4,392			—			—		4,392
Military Housing	9,587			737			8,850			5,701			(6		)	—		5,707
Land sales	—			—			—			488			13			—		475
Write-offs of abandoned development projects and demolition costs	(15,969		)	—			(15,969		)	(933		)	—			—		(933		)
Other (2)	(10,991		)	(370		)	(10,621		)	(10,906		)	363			—		(11,269		)
Total Rental Properties
Comparable
Adjusted revenues	254,946			9,247			245,699			243,268			8,344			—		234,924			4.8	%	4.6	%
Adjusted operating expenses	110,595			4,079			106,516			104,455			3,654			—		100,801			5.9	%	5.7	%
Comparable NOI	144,351			5,168			139,183			138,813			4,690			—		134,123			4.0	%	3.8	%
Non-Comparable NOI	6,230			7,565			(1,335		)	13,796			3,123			1,808		12,481
Total	150,581			12,733			137,848			152,609			7,813			1,808		146,604
Land Development Group	14,310			1,480			12,830			13,635			1,395			—		12,240
Corporate Activities	(13,630		)	—			(13,630		)	(10,928		)	—			—		(10,928		)
Corporate Activities - REIT conversion and reorganization costs	(9,771		)	—			(9,771		)	—			—			—		—
Grand Total	$	141,490		$	14,213		$	127,277		$	155,316		$	9,208		$	1,808	$	147,916

(1) Includes the Company's pro-rata share of NOI from unconsolidated subsidiaries accounted for under the equity method of accounting.

(2) Includes non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income.

21

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

	Net Operating Income(in thousands)
	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014												% Change
	Full Consolidation (1)			Less Noncontrolling Interest			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (1)			Less Noncontrolling Interest			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (1)		Pro-Rata Consolidation (Non-GAAP)
Retail
Comparable
Adjusted revenues	$	151,450		$	—		$	151,450		$	146,085		$	—		$	—		$	146,085		3.7	%	3.7	%
Adjusted operating expenses	69,481			—			69,481			68,281			—			—			68,281			1.8	%	1.8	%
Comparable NOI	81,969			—			81,969			77,804			—			—			77,804			5.4	%	5.4	%
Non-Comparable NOI	7,306			—			7,306			6,886			—			3,678			10,564
Total	89,275			—			89,275			84,690			—			3,678			88,368
Office Buildings
Comparable
Adjusted revenues	210,118			9,552			200,566			201,582			9,013			—			192,569			4.2	%	4.2	%
Adjusted operating expenses	90,581			4,730			85,851			86,572			4,410			—			82,162			4.6	%	4.5	%
Comparable NOI	119,537			4,822			114,715			115,010			4,603			—			110,407			3.9	%	3.9	%
Non-Comparable NOI	2,974			258			2,716			(565		)	130			(43		)	(738		)
Total	122,511			5,080			117,431			114,445			4,733			(43		)	109,669
Apartments
Comparable
Adjusted revenues	142,874			8,600			134,274			137,254			7,939			—			129,315			4.1	%	3.8	%
Adjusted operating expenses	61,072			3,195			57,877			60,162			3,144			—			57,018			1.5	%	1.5	%
Comparable NOI	81,802			5,405			76,397			77,092			4,795			—			72,297			6.1	%	5.7	%
Non-Comparable NOI	10,660			6,420			4,240			3,874			(3,201		)	—			7,075
Total	92,462			11,825			80,637			80,966			1,594			—			79,372
Arena	17,987			8,334			9,653			21,221			9,928			—			11,293
Subsidized Senior Housing	8,713			—			8,713			7,956			—			—			7,956
Military Housing	14,948			732			14,216			10,680			47			—			10,633
Land sales	—			—			—			488			13			459			934
Write-offs of abandoned development projects and demolition costs	(15,969		)	—			(15,969		)	(933		)	—			—			(933		)
Other (2)	(26,522		)	(1,378		)	(25,144		)	(21,107		)	411			—			(21,518		)
Total Rental Properties
Comparable
Adjusted revenues	504,442			18,152			486,290			484,921			16,952			—			467,969			4.0	%	3.9	%
Adjusted operating expenses	221,134			7,925			213,209			215,015			7,554			—			207,461			2.8	%	2.8	%
Comparable NOI	283,308			10,227			273,081			269,906			9,398			—			260,508			5.0	%	4.8	%
Non-Comparable NOI	20,097			14,366			5,731			28,500			7,328			4,094			25,266
Total	303,405			24,593			278,812			298,406			16,726			4,094			285,774
Land Development Group	25,482			2,398			23,084			26,515			2,667			—			23,848
Corporate Activities	(28,608		)	—			(28,608		)	(24,349		)	—			—			(24,349		)
Corporate Activities - REIT conversion and reorganization costs	(15,983		)	—			(15,983		)	—			—			—			—
Grand Total	$	284,296		$	26,991		$	257,305		$	300,572		$	19,393		$	4,094		$	285,273

(1) Includes the Company's pro-rata share of NOI from unconsolidated subsidiaries accounted for under the equity method of accounting.

(2) Includes non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income and a 2014 legal settlement at Heritage, an apartment community in San Diego, California.

22

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income by Product Type

Pro-Rata Consolidation (dollars in thousands)

Six Months Ended June 30, 2015 Six Months Ended June 30, 2014

NOI by Product Type	$	333,356		NOI by Product Type	$	320,780
Arena	9,653			Arena	11,293
Corporate Activities	(28,608		)	Corporate Activities	(24,349		)
Corporate Activities - REIT conversion and reorganization costs	(15,983		)	Corporate Activities - REIT conversion and reorganization costs	—
Write-offs of abandoned development projects	(15,969		)	Write-offs of abandoned development projects and demolition costs	(933		)
Other (3)	(25,144		)	Other (3)	(21,518		)
Grand Total NOI	$	257,305		Grand Total NOI	$	285,273

(1) Includes commercial and residential outlot land sales.

(2) Includes limited-distribution subsidized senior housing.

(3) Includes non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income and a 2014 legal settlement at Heritage.

23

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income by Core Market

Pro-Rata Consolidation (dollars in thousands)

Six Months Ended June 30, 2015 Six Months Ended June 30, 2014

NOI by Market	$	319,140		NOI by Market	$	310,147
Arena	9,653			Arena	11,293
Military Housing	14,216			Military Housing	10,633
Corporate Activities	(28,608		)	Corporate Activities	(24,349		)
Corporate Activities - REIT conversion and reorganization costs	(15,983		)	Corporate Activities - REIT conversion and reorganization costs	—
Write-offs of abandoned development projects	(15,969		)	Write-offs of abandoned development projects and demolition costs	(933		)
Other (3)	(25,144		)	Other (3)	(21,518		)
Grand Total NOI	$	257,305		Grand Total NOI	$	285,273

(1) Includes Richmond, Virginia.

(2) Represents Regional Malls located in Non-Core Markets. Regional Malls located in Core Markets are included in their applicable Core Markets.

(3) Includes non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income and a 2014 legal settlement at Heritage.

24

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Reconciliation of Net Operating Income (non-GAAP) to Earnings (Loss) Before Income Taxes (GAAP)(in thousands)

	Three Months Ended June 30, 2015												Three Months Ended June 30, 2014
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			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)
Total revenues	$	259,759		$	29,606		$	100,429		$	330,582		$	229,637		$	18,167		$	110,484		$	39		$	321,993
Exclude straight-line adjustment	(738		)	—			—			(738		)	(1,354		)	—			—			20			(1,334		)
Add interest and other income	9,278			506			363			9,135			12,375			566			(372		)	—			11,437
Equity in earnings (loss) of unconsolidated entities	19,009			99			(19,421		)	(511		)	27,168			98			(27,719		)	—			(649		)
Exclude operating expenses of unconsolidated entities	43,581			—			(43,581		)	—			47,566			—			(47,566		)	—			—
Exclude write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			—			—			—			—			—
Exclude gain on disposition of unconsolidated entities	(19,284		)	—			19,284			—			(16,090		)	—			16,090			—			—
Exclude depreciation and amortization of unconsolidated entities	21,318			—			(21,318		)	—			22,968			—			(22,968		)	—			—
Exclude interest expense of unconsolidated entities	25,182			—			(25,182		)	—			27,905			—			(27,905		)	—			—
Exclude loss on extinguishment of debt of unconsolidated entities	383			—			(383		)	—			44			—			(44		)	—			—
Adjusted revenues	368,679			30,211			—			338,468			350,219			18,831			—			59			331,447
Operating expenses	166,840			15,998			43,581			194,423			145,807			9,623			47,566			(1,749		)	182,001
Operating expenses of unconsolidated entities	43,581			—			(43,581		)	—			47,566			—			(47,566		)	—			—
Write-offs of abandoned development projects and demolition costs	5,778			—			10,191			15,969			933			—			—			—			933
Write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			—			—			—			—			—
Non-Real Estate depreciation and amortization	1,230			—			—			1,230			1,090			—			—			—			1,090
Exclude straight-line rent adjustment	(431		)	—			—			(431		)	(493		)	—			—			—			(493		)
Adjusted operating expenses	227,189			15,998			—			211,191			194,903			9,623			—			(1,749		)	183,531
Net operating income	$	141,490		$	14,213		$	—		$	127,277		$	155,316		$	9,208		$	—		$	1,808		$	147,916
Interest expense	(47,752		)	(7,263		)	(25,182		)	(65,671		)	(57,153		)	(5,848		)	(27,905		)	(55		)	(79,265		)
Interest expense of unconsolidated entities	(25,182		)	—			25,182			—			(27,905		)	—			27,905			—			—
Loss on extinguishment of debt	(3,190		)	—			(383		)	(3,573		)	(714		)	—			(44		)	(431		)	(1,189		)
Loss on extinguishment of debt of unconsolidated entities	(383		)	—			383			—			(44		)	—			44			—			—
Equity in (earnings) loss of unconsolidated entities	(19,009		)	(99		)	19,421			511			(27,168		)	(98		)	27,719			—			649
Net loss on disposition of partial interest in development project	—			—			—			—			(19,590		)	(3,379		)	—			—			(16,211		)
Net gain on disposition of full or partial interests in rental properties	—			—			19,284			19,284			—			—			16,090			1,276			17,366
Gain on disposition of unconsolidated entities	19,284			—			(19,284		)	—			16,090			—			(16,090		)	—			—
Net gain on change in control of interests	487,684			—			—			487,684			—			—			—			—			—
Impairment of consolidated and unconsolidated real estate	—			—			—			—			(129,829		)	—			—			—			(129,829		)
Depreciation and amortization—Real Estate Groups (a)	(63,772		)	(7,585		)	(20,527		)	(76,714		)	(58,228		)	(4,747		)	(22,180		)	—			(75,661		)
Amortization of mortgage procurement costs	(1,862		)	(45		)	(791		)	(2,608		)	(1,768		)	(87		)	(788		)	—			(2,469		)
Depreciation and amortization of unconsolidated entities	(21,318		)	—			21,318			—			(22,968		)	—			22,968			—			—
Straight-line rent adjustment	307			—			—			307			861			—			—			(20		)	841
Earnings (loss) before income taxes	$	466,297		$	(779	)	$	19,421		$	486,497		$	(173,100	)	$	(4,951	)	$	27,719		$	2,578		$	(137,852	)
(a) Depreciation and amortization—Real Estate Groups	$	63,772		$	7,585		$	20,527		$	76,714		$	58,228		$	4,747		$	22,180		$	—		$	75,661
Depreciation and amortization—Non-Real Estate	1,230			—			—			1,230			1,090			—			—			—			1,090
Total depreciation and amortization	$	65,002		$	7,585		$	20,527		$	77,944		$	59,318		$	4,747		$	22,180		$	—		$	76,751

25

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Reconciliation of Net Operating Income (non-GAAP) to Earnings (Loss) Before Income Taxes (GAAP)(in thousands) (continued)
	Six Months Ended June 30, 2015												Six Months Ended June 30, 2014
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			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)
Total revenues	$	496,841		$	56,732		$	204,585		$	644,694		$	479,174		$	43,107		$	220,942		$	7,029		$	664,038
Exclude straight-line adjustment	(1,247		)	—			—			(1,247		)	(4,388		)	—			—			79			(4,309		)
Add interest and other income	18,982			916			646			18,712			23,878			1,032			196			—			23,042
Equity in earnings (loss) of unconsolidated entities	28,322			82			(28,048		)	192			61,197			77			(63,171		)	—			(2,051		)
Exclude operating expenses of unconsolidated entities	90,848			—			(90,848		)	—			98,080			—			(98,080		)	—			—
Exclude write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			—			—			—			—			—
Exclude gain on disposition of unconsolidated entities	(19,284		)	—			19,284			—			(40,886		)	—			40,886			—			—
Exclude depreciation and amortization of unconsolidated entities	43,784			—			(43,784		)	—			44,572			—			(44,572		)	—			—
Exclude interest expense of unconsolidated entities	51,036			—			(51,036		)	—			55,905			—			(55,905		)	—			—
Exclude loss on extinguishment of debt of unconsolidated entities	608			—			(608		)	—			296			—			(296		)	—			—
Adjusted revenues	720,081			57,730			—			662,351			717,828			44,216			—			7,108			680,720
Operating expenses	327,483			30,739			90,848			387,592			316,910			24,823			98,080			3,014			393,181
Operating expenses of unconsolidated entities	90,848			—			(90,848		)	—			98,080			—			(98,080		)	—			—
Write-offs of abandoned development projects and demolition costs	5,778			—			10,191			15,969			933			—			—			—			933
Write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			—			—			—			—			—
Non-Real Estate depreciation and amortization	2,372			—			—			2,372			2,267			—			—			—			2,267
Exclude straight-line rent adjustment	(887		)	—			—			(887		)	(934		)	—			—			—			(934		)
Adjusted operating expenses	435,785			30,739			—			405,046			417,256			24,823			—			3,014			395,447
Net operating income	$	284,296		$	26,991		$	—		$	257,305		$	300,572		$	19,393		$	—		$	4,094		$	285,273
Interest expense	(100,328		)	(15,176		)	(51,036		)	(136,188		)	(119,605		)	(12,376		)	(55,905		)	(5,538		)	(168,672		)
Interest expense of unconsolidated entities	(51,036		)	—			51,036			—			(55,905		)	—			55,905			—			—
Loss on extinguishment of debt	(38,344		)	—			(608		)	(38,952		)	(878		)	—			(296		)	(448		)	(1,622		)
Loss on extinguishment of debt of unconsolidated entities	(608		)	—			608			—			(296		)	—			296			—			—
Equity in (earnings) loss of unconsolidated entities	(28,322		)	(82		)	28,048			(192		)	(61,197		)	(77		)	63,171			—			2,051
Net loss on disposition of partial interest in development project	—			—			—			—			(19,590		)	(3,379		)	—			—			(16,211		)
Net gain (loss) on disposition of full or partial interests in rental properties	—			—			19,284			19,284			(467		)	—			40,886			28,042			68,461
Gain on disposition of unconsolidated entities	19,284			—			(19,284		)	—			40,886			—			(40,886		)	—			—
Net gain on change in control of interests	487,684			—			—			487,684			2,759			—			—			—			2,759
Impairment of consolidated and unconsolidated real estate	—			—			—			—			(129,829		)	—			—			—			(129,829		)
Depreciation and amortization—Real Estate Groups (a)	(124,444		)	(15,146		)	(42,196		)	(151,494		)	(112,060		)	(9,362		)	(42,983		)	(986		)	(146,667		)
Amortization of mortgage procurement costs	(3,963		)	(144		)	(1,588		)	(5,407		)	(3,893		)	(250		)	(1,589		)	(41		)	(5,273		)
Depreciation and amortization of unconsolidated entities	(43,784		)	—			43,784			—			(44,572		)	—			44,572			—			—
Straight-line rent adjustment	360			—			—			360			3,454			—			—			(79		)	3,375
Earnings (loss) before income taxes	$	400,795		$	(3,557	)	$	28,048		$	432,400		$	(200,621	)	$	(6,051	)	$	63,171		$	25,044		$	(106,355	)
(a) Depreciation and amortization—Real Estate Groups	$	124,444		$	15,146		$	42,196		$	151,494		$	112,060		$	9,362		$	42,983		$	986		$	146,667
Depreciation and amortization—Non-Real Estate	2,372			—			—			2,372			2,267			—			—			—			2,267
Total depreciation and amortization	$	126,816		$	15,146		$	42,196		$	153,866		$	114,327		$	9,362		$	42,983		$	986		$	148,934

26

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Segment Operating Results - Quarterly Comparison

The following tables present revenues, operating expenses and interest expense by segment on a pro-rata basis for the three months ended June 30, 2015 compared with the three months ended June 30, 2014.

	Commercial Group			Residential Group			Arena		Land Development Group			Total
Revenues for the three months ended June 30, 2014	$	189,228		$	100,404		$	13,482	$	18,879		$	321,993
Increase (decrease) due to:
Comparable portfolio	7,251			1,565			—		—			8,816
Non-comparable properties (1)	6			6,382			1,357		—			7,745
Properties in which partners' interest recently acquired	2,993			1,710			—		—			4,703
Recently disposed properties	(4,271		)	(5,370		)	—		—			(9,641		)
Properties in which partial interest was recently disposed	—			(2,798		)	—		—			(2,798		)
Land sales	(1,584		)	(135		)	—		(2,607		)	(4,326		)
Military housing	—			1,812			—		—			1,812
Subsidized senior housing	—			588			—		—			588
Other	1,266			931			—		(507		)	1,690
Revenues for the three months ended June 30, 2015	$	194,889		$	105,089		$	14,839	$	15,765		$	330,582

	Corporate Activities		Commercial Group			Residential Group			Arena		Land Development Group			Total
Operating expenses for the three months ended June 30, 2014	$	10,059	$	97,645		$	56,382		$	8,209	$	9,706		$	182,001
Increase (decrease) due to:
Comparable portfolio	—		3,896			1,300			—		—			5,196
Non-comparable properties (1)	—		(156		)	2,106			1,752		—			3,702
Properties in which partners' interest recently acquired	—		1,155			671			—		—			1,826
Recently disposed properties	—		(801		)	(3,449		)	—		—			(4,250		)
Properties in which partial interest was recently disposed	—		—			(1,297		)	—		—			(1,297		)
Land cost of sales	—		(1,228		)	(16		)	—		(3,101		)	(4,345		)
Military housing	—		—			(642		)	—		—			(642		)
Subsidized senior housing	—		—			65			—		—			65
REIT conversion and reorganization costs	9,771		—						—		—			9,771
Development, management, corporate and other expenses	2,142		(3,880		)	4,090			—		44			2,396
Operating expenses for the three months ended June 30, 2015	$	21,972	$	96,631		$	59,210		$	9,961	$	6,649		$	194,423

	Corporate Activities			Commercial Group			Residential Group			Arena		Land Development Group			Total
Interest expense for the three months ended June 30, 2014	$	9,555		$	51,872		$	13,157		$	4,748	$	(67	)	$	79,265
Increase (decrease) due to:
Comparable portfolio	—			(3,118		)	(617		)	—		—			(3,735		)
Non-comparable properties (1)	—			164			1,617			33		—			1,814
Properties in which partners' interest recently acquired	—			291			(21		)	—		—			270
Recently disposed properties	—			(1,052		)	(791		)	—		—			(1,843		)
Properties in which partial interest was recently disposed	—			—			(2,075		)	—		—			(2,075		)
Capitalized interest	—			(2,310		)	(2,191		)	—		87			(4,414		)
Mark-to-market adjustments on non-designated swaps	(18		)	(51		)	(871		)	—		(311		)	(1,251		)
Corporate borrowings	(3,501		)	—			—			—		—			(3,501		)
Other	—			1,063			(6		)	—		84			1,141
Interest expense for the three months ended June 30, 2015	$	6,036		$	46,859		$	8,202		$	4,781	$	(207	)	$	65,671

27

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

(1) The following table presents the increases (decreases) in revenues, operating expenses and interest expense for Commercial and Residential properties in lease-up and other non-comparable properties:

		Three Months Ended June 30, 2015 vs. 2014
Property	Quarter Opened	Revenues			Operating Expenses			Interest Expense
Commercial:
Property in lease-up:
The Yards - Lumbershed	Q3-13	$	66		$	29		$	15
Non-comparable property:
Ballston Common		(60		)	(185		)	149
Total Commercial		$	6		$	(156	)	$	164
Residential:
Properties in lease-up:
1111 Stratford	Q3-13/Q1-14	$	326		$	(88	)	$	(20	)
2175 Market Street	Q4-14	198			26			34
3700M	Q3-14	350			180			135
Aster Conservatory Green	Q3-13/14	832			126			337
Radian	Q2-14	894			95			281
The Continental	Q1-13	27			(99		)	(14		)
The Yards - Twelve12	Q2-14	2,011			948			517
Winchester Lofts	Q4-14	175			290			160
Non-comparable properties:
Heritage		909			(38		)	(96		)
500 Sterling Place		660			666			283
Total Residential		$	6,382		$	2,106		$	1,617

Commercial Group- Quarterly Comparison

The increases in revenues, operating expenses and interest expense related to partners’ interest recently acquired are related to Boulevard Mall (Q4-2014), a regional mall located in Amherst, New York, and seven life science office properties and two parking facilities at University Park at MIT, a mixed-use life science office campus in Cambridge, Massachusetts. The decreases in revenues, operating expenses and interest expense related to recent disposals are due to our ongoing strategy to sell operating assets in non-core markets. The decrease in interest expense for the comparable portfolio is primarily due to the paydown of nonrecourse mortgage notes for One MetroTech Center,Harlem Office, Ballston Common Office Center and Skylight Office Tower.

Ballston Common, a regional mall in Arlington, Virginia, is classified as a non-comparable property due to its upcoming planned renovation project.

Residential Group- Quarterly Comparison

The increases in revenues and operating expenses related to partners’ interest recently acquired are related to three operating apartment communities located in Northeast Ohio. The decreases in revenues, operating expenses and interest expense related to recent disposals are due to our ongoing strategy to sell operating assets in non-core markets. The decreases in revenues, operating expenses and interest expense related to partial interest recently disposed are related to the contribution of two operating apartment communities into our strategic capital partnership with Arizona State Retirement System in the prior year.

Heritage is classified as a non-comparable property due to its recently completed renovation project resulting in a significant number of units being off-line.

500 Sterling Place, an apartment community in Brooklyn, New York, was acquired (Q1-2015) and is classified as a non-comparable property.

Corporate Activities- Quarterly Comparison

The increase in operating expenses is primarily due to a recovery of a $3,200,000 legal settlement in 2014 which did not recur in 2015. The decrease in interest expense is due to the privately negotiated exchanges of a portion of our Senior Notes due 2016, 2018 and 2020 for Class A common stock in the first quarter of 2015.

28

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Segment Operating Results - Year-to-Date Comparison

The following tables present revenues, operating expenses and interest expense by segment on a pro-rata basis for the six months ended June 30, 2015 compared with the six months ended June 30, 2014.

	Commercial Group			Residential Group			Arena			Land Development Group			Total
Revenues for the six months ended June 30, 2014	$	390,447		$	204,296		$	32,889		$	36,406		$	664,038
Increase (decrease) due to:
Comparable portfolio	10,407			4,038			—			—			14,445
Non-comparable properties (1)	22			12,409			(2,231		)	—			10,200
Properties in which partners' interest recently acquired	4,207			1,775			—			—			5,982
Recently disposed properties	(14,044		)	(10,252		)	—			—			(24,296		)
Properties in which partial interest was recently disposed	—			(6,481		)	—			—			(6,481		)
Land sales	(3,184		)	(135		)	—			(9,755		)	(13,074		)
Military housing	—			(1,466		)	—			—			(1,466		)
Subsidized senior housing	—			806			—			—			806
Other	(3,638		)	(1,314		)	—			(508		)	(5,460		)
Revenues for the six months ended June 30, 2015	$	384,217		$	203,676		$	30,658		$	26,143		$	644,694

	Corporate Activities		Commercial Group			Residential Group			Arena			Land Development Group			Total
Operating expenses for the six months ended June 30, 2014	$	21,620	$	210,075		$	121,921		$	21,182		$	18,383		$	393,181
Increase (decrease) due to:
Comparable portfolio	—		2,690			1,055			—			—			3,745
Non-comparable properties (1)	—		(462		)	4,489			(230		)	—			3,797
Properties in which partners' interest recently acquired	—		917			637			—			—			1,554
Recently disposed properties	—		(6,680		)	(6,276		)	—			—			(12,956		)
Properties in which partial interest was recently disposed	—		—			(2,911		)	—			—			(2,911		)
Land cost of sales	—		(2,370		)	(21		)	—			(6,769		)	(9,160		)
Military housing	—		—			(3,695		)	—			—			(3,695		)
Subsidized senior housing	—		—			17			—			—			17
REIT conversion and reorganization costs	15,983		—			—			—			—			15,983
Development, management, corporate and other expenses	4,084		(11,026		)	5,284			—			(305		)	(1,963		)
Operating expenses for the six months ended June 30, 2015	$	41,687	$	193,144		$	120,500		$	20,952		$	11,309		$	387,592

	Corporate Activities			Commercial Group			Residential Group			Arena		Land Development Group			Total
Interest expense for the six months ended June 30, 2014	$	18,837		$	110,759		$	29,710		$	9,456	$	(90	)	$	168,672
Increase (decrease) due to:
Comparable portfolio	—			(5,882		)	(1,094		)	—		—			(6,976		)
Non-comparable properties (1)	—			166			3,925			129		—			4,220
Properties in which partners' interest recently acquired	—			476			(26		)	—		—			450
Recently disposed properties	—			(7,533		)	(1,694		)	—		—			(9,227		)
Properties in which partial interest was recently disposed	—						(4,198		)	—		—			(4,198		)
Capitalized interest	—			(3,688		)	(4,556		)	—		178			(8,066		)
Mark-to-market adjustments on non-designated swaps	(44		)	(82		)	(4,218		)	—		(662		)	(5,006		)
Corporate borrowings	(4,611		)	—			—			—		—			(4,611		)
Other	—			298			614			—		18			930
Interest expense for the six months ended June 30, 2015	$	14,182		$	94,514		$	18,463		$	9,585	$	(556	)	$	136,188

29

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

(1) The following table presents the increases (decreases) in revenues, operating expenses and interest expense for Commercial and Residential properties in lease-up and other non-comparable properties:

		Six Months Ended June 30, 2015 vs. 2014
Property	Quarter Opened	Revenues			Operating Expenses			Interest Expense
Commercial:
Property in lease-up:
The Yards - Lumbershed	Q3-13	$	63		$	4		$	39
Non-comparable property:
Ballston Common		(41		)	(466		)	127
Total Commercial		$	22		$	(462	)	$	166
Residential:
Properties in lease-up:
1111 Stratford	Q3-13/Q1-14	$	767		$	(129	)	$	—
2175 Market Street	Q4-14	320			91			65
3700M	Q3-14	607			451			265
Aster Conservatory Green	Q3-13/14	1,793			306			570
Radian	Q2-14	1,601			505			788
The Continental	Q1-13	197			(65		)	6
The Yards - Twelve12	Q2-14	3,730			1,588			1,044
Winchester Lofts	Q4-14	249			592			799
Non-comparable properties:
Heritage		1,950			425			(139		)
500 Sterling Place		1,195			725			527
Total Residential		$	12,409		$	4,489		$	3,925

Commercial Group - Year-to-Date Comparison

The increases in revenues, operating expenses and interest expense related to partners’ interest recently acquired are related to Boulevard Mall (Q4-2014), a regional mall located in Amherst, New York, and seven life science office properties and two parking facilities at University Park at MIT, a mixed-use life science office campus in Cambridge, Massachusetts. The decreases in revenues, operating expenses and interest expense related to recent disposals are due to our ongoing strategy to sell operating assets in non-core markets. The decrease in interest expense for the comparable portfolio is primarily due to the paydown of nonrecourse mortgage notes for One MetroTech Center,Harlem Office, Ballston Common Office Center and Skylight Office Tower.

Ballston Common, a regional mall in Arlington, Virginia, is classified as a non-comparable property due to its upcoming planned renovation project.

Residential Group - Year-to-Date Comparison

The increases in revenues and operating expenses related to partners’ interest recently acquired are related to three operating apartment communities located in Northeast Ohio. The decreases in revenues, operating expenses and interest expense related to recent disposals are due to our ongoing strategy to sell operating assets in non-core markets. The decreases in revenues, operating expenses and interest expense related to partial interest recently disposed are related to the contribution of two operating apartment communities into our strategic capital partnership with Arizona State Retirement System in the prior year.

Heritage is classified as a non-comparable property due to its recently completed renovation project resulting in a significant number of units being off-line.

500 Sterling Place, an apartment community in Brooklyn, New York, was acquired (Q1-2015) and is classified as a non-comparable property.

Corporate Activities - Year-to-Date Comparison

The increase in operating expenses is primarily due to a recovery of a $3,200,000 legal settlement in 2014 which did not recur in 2015. The decrease in interest expense is due to the privately negotiated exchanges of a portion of our Senior Notes due 2016, 2018 and 2020 for Class A common stock in the first quarter of 2015.

30

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Earnings (Loss) Attributable to Forest City Enterprises, Inc. - Quarterly Comparison

Net earnings attributable to Forest City Enterprises, Inc. for the three months ended June 30, 2015 was $303,756,000 versus net loss of $(92,992,000) for the three months ended June 30, 2014. Although we have substantial recurring revenue sources, significant transactions often create substantial variances in operating results between periods. The variance to the prior year period is primarily attributable to the following fluctuations, which are pre-tax, include unconsolidated investment activity and are net of noncontrolling interests:

Asset Dispositions - $15,155,000

• $16,211,000 related to the net loss on partial disposition of our interest in Pacific Park Brooklyn, a 22 acre mixed-use project in Brooklyn, New York, related to the formation of a new joint venture with Greenland in 2014;

• $(2,974,000) related to a combined fluctuation in revenues, operating expenses and interest expense at properties in which we disposed of our full or partial interest during 2015 and 2014; and

• $1,918,000 related to increased gains on disposition of full or partial interest in rental properties and unconsolidated investments in 2015 compared to 2014.

Financing Transactions - $6,782,000

• $4,414,000 related to a decrease in interest expense in 2015 compared with 2014 due to increased capitalized interest on projects under construction and development as we increased our construction pipeline;

• $3,501,000 related to a decrease in interest expense on corporate debt due to separate, privately negotiated exchange transactions involving certain Senior Notes due 2016, 2018 and 2020 during February and March 2015;

• $(2,384,000) related to increased losses on extinguishment of debt in 2015 compared to 2014; and

• $1,251,000 related to the change in fair market value of certain derivatives not qualifying for hedge accounting between the comparable periods, which was marked to market through interest expense.

Non-Cash Transactions - $602,477,000

• $487,684,000 related to gains on change in control of interest from the June 2015 acquisition of our partner’s 49% equity ownership interest in the MIT Assets, and the April 2015 acquisition of our partner’s 50% equity ownership interest in three operating apartment communities (Cherry Tree,Chestnut Lake and Stratford Crossing);

• $129,829,000 related to decreased impairment of real estate in 2015 compared to 2014; and

• $(15,036,000) related to increased write-offs of abandoned development projects in 2015 compared to 2014.

Operations - $2,270,000

• $(9,771,000) related to REIT conversion and reorganization costs incurred in 2015;

• $7,355,000 related to a combined fluctuation in revenues, operating expenses and interest expense in our comparable portfolio in 2015 compared with 2014;

• $2,607,000 related to a combined fluctuation in revenues, operating expenses and interest expense in properties in which we recently acquired our partners’ interest;

• $2,454,000 related to a combined fluctuation in revenues and operating expenses in our Military Housing business unit in 2015 compared with 2014;

• $(2,302,000) in interest and other income primarily related to decreases in the income recognition on the allocation of state and federal historic preservation, low income housing and new market tax credits in 2015 compared with 2014; and

• $1,927,000 related to a combined fluctuation in revenues, operating expenses and interest expense at properties in lease-up at June 30, 2015.

Income Taxes

• $(227,739,000) due to increased income tax expense attributable to both continuing and discontinued operations primarily related to the fluctuations in pre-tax earnings. These fluctuations are primarily due to the various transactions discussed herein.

31

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Earnings (Loss) Attributable to Forest City Enterprises, Inc. - Year-to-Date Comparison

Net earnings attributable to Forest City Enterprises, Inc. for the six months ended June 30, 2015 was $249,547,000 versus net loss of $(77,472,000) for the six months ended June 30, 2014. The variance to the prior year period is primarily attributable to the following fluctuations, which are pre-tax, include unconsolidated investment activity and are net of noncontrolling interests:

Asset Dispositions - $(37,437,000)

• $(49,177,000) related to decreased gains on disposition of full or partial interest in rental properties and unconsolidated investments in 2015 compared to 2014;

• $16,211,000 related to the net loss on partial disposition of our interest in Pacific Park Brooklyn, related to the formation of a new joint venture with Greenland in 2014;

• $(2,986,000) related to decreased Land Development Group sales in 2015 compared with 2014, primarily at our Stapleton project; and

• $(1,485,000) related to a combined fluctuation in revenues, operating expenses and interest expense at properties in which we disposed of our full or partial interest during 2015 and 2014.

Financing Transactions - $(19,647,000)

• $(37,330,000) related to increased losses on extinguishment of debt in February and March 2015 compared with 2014 primarily due to to separate, privately negotiated exchange transactions involving a portion of Senior Notes due 2016, 2018 and 2020;

• $8,066,000 related to a decrease in interest expense in 2015 compared with 2014 due to increased capitalized interest on projects under construction and development as we increased our construction pipeline;

• $5,006,000 related to the change in fair market value of certain derivatives not qualifying for hedge accounting between the comparable periods, which was marked to market through interest expense; and

• $4,611,000 related to a decrease in interest expense on corporate debt due to separate, privately negotiated exchange transactions involving certain Senior Notes due 2016, 2018 and 2020 in February and March 2015.

Non-Cash Transactions - $594,786,000

• $484,925,000 related to increased gains on change in control of interest in 2015 compared with 2014 activity primarily from the June 2015 acquisition of our partner’s 49% equity ownership interest in the MIT Assets, and the April 2015 acquisition of our partner’s 50% equity ownership interest in three operating apartment communities (Cherry Tree,Chestnut Lake and Stratford Crossing) offset by 2014 activity;

• $129,829,000 related to decreased impairment of real estate in 2015 compared to 2014;

• $(15,036,000) related to increased write-offs of abandoned development projects in 2015 compared to 2014; and

• $(4,932,000) related to an increase in depreciation and amortization expense in 2015 compared with 2014 primarily due to recently opened properties and the change from equity method of accounting to full consolidation method upon the acquisition of our partner's interest in the MIT Assets and three operating apartment communities in Q2 2015, and one apartment community and one regional mall in Q4 2014. These increases were partially offset by the disposition of full or partial interests in several properties during 2015 and 2014.

Operations - $3,848,000

• $17,676,000 related to a combined fluctuation in revenues, operating expenses and interest expense in our comparable portfolio in 2015 compared with 2014;

• $(15,983,000) related to REIT conversion and reorganization costs incurred in 2015;

• $(4,330,000) in interest and other income primarily related to income recognized by a legal settlement at Heritage in 2014, which did not recur in 2015, and decreases in the income recognition on the allocation of state and federal historic preservation, low income housing and new market tax credits in 2015 compared with 2014;

• $3,978,000 related to a combined fluctuation in revenues, operating expenses and interest expense in properties in which we recently acquired our partners’ interest;

• $2,408,000 related to a combined fluctuation in revenues, operating expenses and interest expense at properties in lease-up at June 30, 2015;

• $2,229,000 related to a combined fluctuation in revenues and operating expenses in our Military Housing business unit in 2015 compared with 2014; and

32

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

• $(2,130,000) related to a combined fluctuation in revenues, operating expenses and interest expense at Barclays Center in 2015 compared with 2014.

Income Taxes

• $(213,979,000) due to increased income tax expense attributable to both continuing and discontinued operations primarily related to the fluctuations in pre-tax earnings, including gains included in discontinued operations. These fluctuations are primarily due to the various transactions discussed herein.

Capital Expenditures for our Operating Portfolio – Our diversified real estate portfolio requires capital expenditures, including tenant improvements, to maintain and improve its operating performance. The following table represents our capital expenditures by segment:

	Six Months Ended June 30, 2015				Six Months Ended June 30, 2014
	Full Consolidation (GAAP)		Pro-Rata Consolidation (Non-GAAP)		Full Consolidation (GAAP)		Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Operating properties:
Commercial Group	$	13,272	$	23,294	$	9,415	$	18,730
Residential Group	6,009		10,448		6,576		11,454
Arena	2,314		787		1,390		473
Other	22		22		31		31
Total operating properties	21,617		34,551		17,412		30,688
Tenant improvements
Commercial Group	20,867		24,824		6,475		11,652
Total capital expenditures	$	42,484	$	59,375	$	23,887	$	42,340

33

(THIS PAGE INTENTIONALLY LEFT BLANK)

34

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Reconciliation of Net Earnings (Loss) to FFO

The table below reconciles net earnings (loss), the most comparable GAAP measure, to FFO, a non-GAAP measure.

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in thousands)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	303,756		$	(92,992	)	$	249,547		$	(77,472	)
Depreciation and Amortization—Real Estate Groups	76,714			75,661			151,494			146,667
Gain on disposition of full or partial interests in rental properties	(19,284		)	(17,366		)	(19,284		)	(68,461		)
Impairment of depreciable rental properties	—			129,059			—			129,059
Income tax expense (benefit) adjustment — current and deferred (1):
Gain on disposition of full or partial interests in rental properties	7,461			8,820			7,461			28,718
Impairment of depreciable rental properties	—			(50,053		)	—			(50,053		)
FFO attributable to Forest City Enterprises, Inc.	$	368,647		$	53,129		$	389,218		$	108,458
FFO Per Share - Diluted
Numerator(in thousands):
FFO attributable to Forest City Enterprises, Inc.	$	368,647		$	53,129		$	389,218		$	108,458
If-Converted Method (adjustments for interest, net of tax):
5.000% Notes due 2016	73			382			383			765
4.250% Notes due 2018	1,495			2,277			3,529			4,554
3.625% Notes due 2020	953			1,664			2,396			3,328
FFO for per share data	$	371,168		$	57,452		$	395,526		$	117,105
Denominator:
Weighted average shares outstanding—Basic	233,377,771			198,341,355			218,254,445			198,041,879
Effect of stock options, restricted stock and performance shares	3,160,648			1,540,864			2,964,450			1,733,435
Effect of convertible debt	18,389,062			32,138,215			23,211,264			32,138,215
Effect of convertible Class A Common Units	2,973,190			3,461,710			2,973,190			3,553,721
Weighted average shares outstanding - Diluted	257,900,671			235,482,144			247,403,349			235,467,250
FFO Per Share	$	1.44		$	0.24		$	1.60		$	0.50

(1) The following table provides detail of income tax expense (benefit):

	Three Months Ended June 30,					Six Months Ended June 30,
	2015		2014			2015		2014
	(in thousands)
Income tax expense (benefit) on FFO
Operating Earnings:
Current taxes	$	2,386	$	(15,215	)	$	642	$	(6,582	)
Deferred taxes	172,383		10,939			174,942		(3,017		)
Total income tax expense (benefit) on FFO	174,769		(4,276		)	175,584		(9,599		)
Income tax expense (benefit) on non-FFO
Disposition of full or partial interests in rental properties:
Current taxes	$	2,882	$	(13,292	)	$	2,882	$	15,756
Deferred taxes	4,579		22,112			4,579		12,962
Disposition of full or partial interests in rental properties	7,461		8,820			7,461		28,718
Impairment of depreciable rental properties
Deferred taxes	$	—	$	(50,053	)	$	—	$	(50,053	)
Total income tax expense (benefit) on non-FFO	7,461		(41,233		)	7,461		(21,335		)
Grand Total	$	182,230	$	(45,509	)	$	183,045	$	(30,934	)

35

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Reconciliation of FFO to Operating FFO - Pro-Rata Consolidation

	Three Months Ended June 30,							Six Months Ended June 30,
	2015			2014			% Change	2015			2014			% Change
	(in thousands)							(in thousands)
FFO attributable to Forest City Enterprises, Inc.	$	368,647		$	53,129			$	389,218		$	108,458
Impairment of non-depreciable real estate	—			770				—			770
Write-offs of abandoned development projects and demolition costs	15,969			933				15,969			933
Tax credit income	(3,957		)	(5,480		)		(7,212		)	(9,427		)
Loss on extinguishment of debt	3,573			1,189				38,952			1,622
Change in fair market value of nondesignated hedges	(2,979		)	(1,681		)		(5,092		)	2,991
Net gain on change in control of interests	(487,684		)	—				(487,684		)	(2,759		)
Straight-line rent adjustments	(307		)	(841		)		(360		)	(3,375		)
Participation payments	—			—				—			1,469
Net loss on disposition of partial interest in development project	—			16,211				—			16,211
REIT conversion and reorganization costs	9,771			—				15,983			—
Nets Pre-tax FFO	791			261				1,593			1,414
Income tax expense (benefit) on FFO	174,769			(4,276		)		175,584			(9,599		)
Operating FFO attributable to Forest City Enterprises, Inc.	$	78,593		$	60,215		30.5%	$	136,951		$	108,708		26.0%
Operating FFO Per Share - Diluted
Numerator(in thousands):
Operating FFO attributable to Forest City Enterprises, Inc.	$	78,593		$	60,215			$	136,951		$	108,708
If-Converted Method (adjustments for interest, pre-tax):
5.000% Notes due 2016	119			625				626			1,250
4.250% Notes due 2018	2,443			3,719				5,765			7,438
3.625% Notes due 2020	1,557			2,719				3,914			5,438
Operating FFO for per share data	$	82,712		$	67,278			$	147,256		$	122,834
Denominator:
Weighted average shares outstanding - Diluted	257,900,671			235,482,144				247,403,349			235,467,250
Operating FFO Per Share	$	0.32		$	0.29			$	0.60		$	0.52

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in thousands)						(in thousands)
Operating FFO by segment:
Commercial Group	$	49,430		$	37,834		$	94,112		$	69,109
Residential Group	35,240			30,190			60,990			55,683
Arena	72			108			68			1,757
Land Group	12,726			12,305			22,978			23,931
Corporate Group	(18,875		)	(20,222		)	(41,197		)	(41,772		)
Operating FFO	$	78,593		$	60,215		$	136,951		$	108,708

36

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Reconciliation of Net Earnings (Loss) to EBITDA - Pro-Rata Consolidation

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in thousands)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	303,756		$	(92,992	)	$	249,547		$	(77,472	)
Depreciation and amortization	77,944			76,751			153,866			148,934
Interest expense	65,671			79,265			136,188			168,672
Amortization of mortgage procurement costs	2,608			2,469			5,407			5,273
Income tax expense (benefit)	182,230			(45,509		)	183,045			(30,934		)
EBITDA attributable to Forest City Enterprises, Inc	$	632,209		$	19,984		$	728,053		$	214,473
Impairment of real estate	—			129,829			—			129,829
Net loss on extinguishment of debt	3,573			1,189			38,952			1,622
Net loss on disposition of partial interest in development project	—			16,211			—			16,211
Net gain on disposition of full or partial interests in rental properties	(19,284		)	(17,366		)	(19,284		)	(68,461		)
Net gain on change in control of interests	(487,684		)	—			(487,684		)	(2,759		)
Adjusted EBITDA attributable to Forest City Enterprises, Inc.	$	128,814		$	149,847		$	260,037		$	290,915
	As of June 30,						As of June 30,
	2015			2014			2015			2014
	(in thousands)
Total mortgage debt and notes payable, nonrecourse	$	6,020,920		$	6,013,635		$	6,020,920		$	6,013,635
Revolving credit facility	—			308,000			—			308,000
Convertible senior debt	411,194			700,000			411,194			700,000
Total debt	$	6,432,114		$	7,021,635		$	6,432,114		$	7,021,635
Less cash and equivalents	(330,576		)	(490,792		)	(330,576		)	(490,792		)
Net Debt	$	6,101,538		$	6,530,843		$	6,101,538		$	6,530,843
Net Debt to Adjusted EBITDA (Annualized) (1) (2)	11.8		x	10.9		x	11.7		x	11.2		x

(1) Due to the June 2015 acquisition of our partner’s 49% equity ownership interest in the MIT Assets, the June 30, 2015 Net Debt includes approximately $178,000 of debt without the benefit of additional EBITDA expected to be generated by our additional ownership interests. Absent this debt, the Net Debt to Adjusted EBITDA for the three and six months ended June 30, 2015 would have been 11.5x and 11.4x, respectively.

(2) Adjusted EBITDA for the three and six months ended June 30, 2015 includes write-offs of abandoned development projects of $15,969. Absent this annualized expense, along with the adjustment described in (1) above, the Net Debt to Adjusted EBITDA for the three and six months ended June 30, 2015 would have been 10.2x and 10.7x, respectively.

37

(THIS PAGE INTENTIONALLY LEFT BLANK)

38

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

* Other is primarily related to a recovery of a $3.2 million legal settlement in 2014 which did not recur in 2015.

39

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

* Other is primarily related to a recovery of a $3.2 million legal settlement in 2014 which did not recur in 2015.

40

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Historical Trends

Through the implementation of our strategic plan, we approach our business by:

• Focusing on core markets and products as we develop, own and operate a high-quality portfolio

• Driving operational excellence through all aspects of our company

• Building a strong, sustaining capital structure, improved balance sheet and debt metrics

The tables below illustrate our progress as we continue to implement our strategic plan. The financial and operating data presented is as reported in previous year-end supplemental packages. GAAP reconciliations for previous years can be found in prior supplemental packages furnished with the Securities and Exchange Commission ("SEC") and are available on our website at www.forestcity.net.

Development ratio is calculated in accordance with our financial covenants contained in our revolving credit facility. Total debt includes outstanding borrowings on our revolving credit facility, convertible senior debt, nonrecourse mortgages and notes payable. Net debt to Adjusted EBITDA is defined as total debt, less cash and equivalents, divided by Adjusted EBITDA. All metrics are reflected at our pro-rata share.

41

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Historical Trends (continued)

* Represents data for the year ended December 31, 2013, which is consistent with our new calendar year-end. As such, data for the year ended December 31, 2013 includes results for the month ended January 31, 2013, which has previously been included in the financial results for the year ended January 31, 2013 included in our supplemental package furnished with the SEC on March 27, 2013.

** Due to the June 2015 acquisition of our partner’s 49% equity ownership interest in the MIT Assets, the June 30, 2015 Net Debt includes approximately $178,000,000 of debt without the benefit of additional EBITDA expected to be generated by our additional ownership interests. Absent this debt, the Net Debt to Adjusted EBITDA for the rolling 12-months ended June 30, 2015 would have been 10.7x.

** Adjusted EBITDA for the rolling 12-months ended June 30, 2015 includes write-offs of abandoned development projects of $16,691,000. Absent this expense, along with the adjustment described above, the Net Debt to Adjusted EBITDA for the rolling 12-months ended June 30, 2015 would have been 10.4x.

42

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Development Pipeline

Property Acquisition/Expansion Opening and Projects Under Construction

June 30, 2015

	Location	Date Acquired/ Anticipated Opening	FCE Legal Ownership % (a)			Pro-Rata FCE % (a) (1)			Total Cost at 100% (2)		Cost at Full Consolidation (GAAP) (b)		Cost at FCE Pro-Rata Share (Non-GAAP) (c) (1) X (2)			Sq. ft./ No. of Units	Gross Leasable Area	Lease Commitment % (d)
									(in millions)
2015 Property Acquisition
Residential:
500 Sterling Place	Brooklyn, NY	Q1-15	100	%		100	%		$	48.1	$	48.1	$	48.1		77	—	91%
2015 Property Expansion Opening
Retail:
Galleria at Sunset	Henderson, NV	Q2-15	51	%	(e)	51	%		$	24.7	$	0.0	$	12.6		32,000	32,000	84%
Projects Under Construction
Residential:
Arizona State Retirement System Joint Venture:
The Yards - Arris	Washington, D.C.	Q1-16	25	%		25	%		$	145.1	$	145.1	$	36.3		327	19,000
Blossom Plaza	Los Angeles, CA	Q2-16	25	%		25	%		104.9		104.9		26.2			237	19,000
Eliot on 4th (1001 4th Street, SW)	Washington, D.C.	Q4-16	25	%		25	%		143.0		143.0		35.8			365	5,000
Museum Towers II	Philadelphia, PA	Q4-16	25	%		25	%		114.0		114.0		28.5			286	—
									507.0		507.0		126.8			1,215	43,000
Greenland Joint Venture:
535 Carlton	Brooklyn, NY	Q4-16/17	30	%	(e)	30	%		164.6		0.0		49.4			298	—
550 Vanderbilt (condominiums)	Brooklyn, NY	Q1-17/18	30	%	(e)	30	%		361.6		0.0		108.5			278	7,000
38 Sixth Ave	Brooklyn, NY	Q2-17/18	30	%	(e)	30	%		202.7		0.0		60.8			303	28,000
Pacific Park - Parking (f)	Brooklyn, NY	Q3-16/18	30	%	(e)	30	%		99.6		0.0		29.9			—	—
									828.5		0.0		248.6			879	35,000
Aster Town Center II	Denver, CO	Q3/Q4-15	90	%		90	%		23.4		23.4		21.1			135	—
The Lofts at Capitol Quarter	Washington, D.C.	Q4-15/Q1-16	25	%	(e)	25	%		53.8		0.0		13.5			195	—
B2 BKLYN	Brooklyn, NY	Q3-16	100	%		100	%		162.1		162.1		162.1			363	4,000
									$	1,574.8	$	692.5	$	572.1		2,787	82,000
Office:
300 Massachusetts Ave	Cambridge, MA	Q1-16	50	%	(e)	50	%		$	175.0	$	0.0	$	87.5		246,000	246,000	96%
1812 Ashland Ave	Baltimore, MD	Q3-16	85	%		100	%		60.7		60.7		60.7			164,000	164,000	70%
The Bridge at Cornell Tech	Roosevelt Island, NY	Q2-17	100	%		100	%		164.1		164.1		164.1			235,000	235,000	39%
									$	399.8	$	224.8	$	312.3		645,000	645,000
Retail Expansion:
Boulevard Mall	Buffalo, NY	Q4-15	100	%		100	%		10.9		10.9		10.9			46,000	46,000	100%
Total Projects Under Construction									$	1,985.5	$	928.2	$	895.3
Estimated Initial Yield on Cost													5.5% - 6.0%		(g)
Other
Kapolei Lofts	Kapolei, HI	Q3-15/Q1-17	100	%		0	%	(h)	$	154.8	$	154.8	$	0.0		499	—

See footnotes on the following page.

43

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

FOOTNOTES

(a) The Company invests in certain real estate projects through joint ventures and, at times, may provide funding at percentages that differ from the Company's legal ownership.

(b) Amounts represent estimated project costs to achieve stabilization and are presented on the full consolidation method of accounting, a GAAP measure. Under full consolidation, costs are reported as consolidated at 100% if we are deemed to have control or to be the primary beneficiary of our investments in the Company's VIE. Upon completion, our completed rental properties recorded on the consolidated balance sheet may include costs, in addition to costs above, not allocated to our partners, such as corporate capitalized interest.

(c) Project cost at pro-rata share represents the Company's share of project cost, based on the Company's pro-rata ownership of each property (a non-GAAP measure). Under the pro-rata consolidation method of accounting, the Company determines its pro-rata share by multiplying its pro-rata ownership by the total project cost of the applicable property.

(d) Lease commitments as of July 28, 2015.

(e) 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.

(f) Expected to include 950 parking spaces.

(g) Range of estimated initial yield on cost is calculated using estimated pro-rata initial stabilized NOI divided by FCE pro-rata share of project cost per above, net of anticipated subsidies and other cost adjustments. 550 Vanderbilt (condominiums) has been excluded from estimated initial yield on cost.

(h) Kapolei Lofts is a residential project currently under construction on land leased by the Company. The land lessor is entitled to a preferred return that currently exceeds anticipated operating cash flow of the project, and therefore, this project is reflected at 0% for pro-rata purposes.  In accordance with the waterfall provisions of the distribution Agreement, the Company expects to share in the net proceeds upon a sale of the project.

44

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Development Pipeline

Projects Under Development

June 30, 2015

Below is a summary of our active large scale development projects which are crucial to our long-term growth. While we cannot make any assurances on the timing or delivery of these projects, our track record speaks to our ability to bring large, complex projects to fruition when there is demand and available construction financing. The projects listed below represent pro-rata costs of $321.5 million ($138.6 million at full consolidation) of Projects Under Development on our balance sheet and pro-rata mortgage debt of $136.5 million ($10.6 million at full consolidation).

1) Pacific Park Brooklyn- Brooklyn, NY

Pacific Park Brooklyn, a 22-acre mixed-use project, is located adjacent to the state-of-the-art arena, Barclays Center. At full build-out, Pacific ParkBrooklyn is expected to feature more than 6,400 units of housing, including 2,250 affordable units, approximately 250,000 square feet of retail space, and more than 8 acres of landscaped open space. Projects currently under construction include B2 BKLYN, a 50% market-rate and 50% affordable rental building with 363 residential units, 535 Carlton, a 100% affordable rental building with 298 residential units, 550 Vanderbilt, 278-unit condominium building, 38 Sixth Ave, a 303-unit, 100% affordable rental building and a parking garage which is expected to include 950 parking spaces.

2) The Yards - Washington, D.C.

The Yards is a 42-acre mixed-use project, located in the neighborhood of the Washington Nationals baseball park in the Capitol Riverfront District. At full build-out, the project is expected to include up to 2,800 residential units, 1.8 million square feet of office space and approximately 300,000 square feet of retail and dining space. The Yards features a 5.5-acre publicly funded public park that is a gathering place and recreational focus for the community. Current completed projects include a 170-unit residential building, Foundry Lofts;two retail centers: Boilermaker Shops and Lumber Shed, with 40,000 and 31,000 square feet, respectively; and Twelve12, a mixed-use property, with 218 residential units and 88,000 square feet of retail space. Arris, a mixed-use project, is currently under construction and is expected to feature 327 residential units and 19,000 square feet of retail space.

3) The Science + Technology Park at Johns Hopkins - Baltimore, MD

The Science + Technology Park at Johns Hopkins is a 31-acre center for collaborative research directly adjacent to the world-renowned Johns Hopkins medical and research complex. Plans call for 1.1 million square feet in five buildings, with future phases able to support additional expansion. Current completed projects include the 279,000 square-foot 855 North Wolfe Street,a 492,000 square-foot parking garage for Johns Hopkins and a 234,000 square-foot commercial building developed on a fee basis which is fully leased by the Department of Health & Mental Hygiene. Currently under construction is a 164,000 square-foot office building, 1812 Ashland Ave.

4) Waterfront Station - Washington, D.C.

Located in Southwest Washington, D.C., Waterfront Station is adjacent to the Waterfront/Southeastern University MetroRail station. Waterfront Station is expected to include 660,000 square feet of office space, 365 residential units and 40,000 square feet of retail stores and restaurants. Currently under construction is a 365-unit residential building, Eliot on 4th.

5) Pier 70 - San Francisco, CA

Pier 70 is a former shipyard on San Francisco's eastern waterfront. The Forest City master development area of 28 acres is a mixed-use project, which is expected to include 3.2 million total square feet, consisting of 900,000 to 1.8 million square feet of office space, approximately 400,000 square feet of traditional retail, local production, and cultural/community uses, 1,000 to 2,000 residential units, approximately 2,000 parking spaces and 7 acres of waterfront parks.

6) 5M - San Francisco, CA

5M is a mixed-use project on approximately 4 acres in downtown San Francisco. 5M is expected to include approximately 800,000 square feet of commercial uses and 690 residential units. The project will retain two existing historic buildings as well as the iconic San Francisco Chronicle building and would create significant new open spaces for the neighborhood. The project is designed to house a dynamic ground-floor mix featuring local retail and arts, cultural and community uses for a total of approximately 1.7 million square feet of development.

45

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Development Pipeline

Land Inventory

Land inventory represents undeveloped land parcels we currently do not intend to hold for future vertical development. A summary of our land inventory follows:

	June 30, 2015				December 31, 2014
	Full Consolidation (GAAP)		Pro-Rata Consolidation (Non-GAAP)		Full Consolidation (GAAP)		Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Stapleton	$	48,273	$	43,559	$	51,604	$	46,583
Commercial outlots	45,645		55,532		45,865		54,072
Total Land Inventory (1)	$	93,918	$	99,091	$	97,469	$	100,655

(1) A full reconciliation of pro-rata consolidation (non-GAAP) to their GAAP equivalents can be found in the Selected Financial Information section of this supplemental package.

Stapleton

Stapleton represents one of the nation's largest urban redevelopments. At full build-out of 4,700 acres or 7.5 square miles, Stapleton is planned for more than 12,000 homes and apartments, 3 million square feet of retail and 10 million square feet of office/research and development/industrial space. Located 10 minutes east of Downtown Denver and 20 minutes from Denver International Airport, Stapleton is expected to be home to 30,000 residents and 35,000 workers when complete. As of June 30, 2015, we own 223 gross acres, of which 93 acres are saleable. We also have an option to purchase an additional 846 gross acres at Stapleton.

Commercial Outlots

Commercial outlots are primarily undeveloped parcels of land adjacent to our retail assets throughout the United States. These parcels are sold to third party operators that benefit from being in close proximity to the existing retail asset. Typically, these outlots have zoning and entitlements consistent with our retail asset. Also included in commercial outlots is Las Vegas Land, a 13.5 acre parcel of undeveloped land located in downtown Las Vegas, NV adjacent to the City Hall.

46

(THIS PAGE INTENTIONALLY LEFT BLANK)

47

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Common Stock Data (NYSE: FCE A and FCE B)

The following summarizes information related to the Company’s Class A and Class B common stock based on information reported by the New York Stock Exchange:

	Quarter Ended
	June 30, 2015		March 31, 2015		December 31, 2014		September 30, 2014		June 30, 2014
Class A Common Stock
Closing Price, end of period	$	22.10	$	25.52	$	21.30	$	19.56	$	19.87
High Closing Price	$	25.73	$	25.79	$	21.67	$	21.30	$	20.09
Low Closing Price	$	22.10	$	21.00	$	19.20	$	19.17	$	18.46
Average Closing Price	$	23.68	$	24.53	$	20.79	$	19.99	$	19.10
Total Volume	102,548,636		69,096,438		70,389,527		47,200,607		40,112,884
Average Volume	1,627,756		1,132,728		1,099,836		737,509		636,712
Common shares outstanding, end of period	231,391,181		193,501,911		179,763,952		179,695,113		179,662,635
Class B Common Stock
Closing Price, end of period	$	23.00	$	25.50	$	21.34	$	19.83	$	19.89
High Closing Price	$	25.71	$	25.75	$	21.70	$	21.30	$	20.05
Low Closing Price	$	22.50	$	21.05	$	19.24	$	19.13	$	18.48
Average Closing Price	$	23.87	$	24.63	$	20.70	$	20.03	$	19.08
Total Volume	64,791		37,129		59,140		121,763		46,127
Average Volume	1,028		609		924		1,903		732
Common shares outstanding, end of period	18,891,153		18,942,503		19,208,517		19,220,506		19,227,650
Common Equity Market Capitalization	$	5,548,241,619	$	5,421,202,595	$	4,238,881,931	$	3,895,979,044	$	3,952,334,516
Quarterly dividends declared per common share Class A and Class B	$	—	$	—	$	—	$	—	$	—

Financial Covenants

The Company’s revolving credit facility contains certain restrictive financial covenants. A summary of the key financial covenants as defined in the agreement, all of which the Company is compliant with at June 30, 2015, follows:

	Requirement Per  Agreement		As of June 30, 2015			As of March 31, 2015			As of December 31, 2014			As of September 30, 2014
	(dollars in thousands)
Credit Facility Financial Covenants
Debt Service Coverage Ratio	1.45x		1.97		x	1.88		x	1.81		x	1.72		x
Debt Yield Ratio	>9.50%		12.50		%	11.88		%	12.11		%	11.80		%
Cash Flow Coverage Ratio	3.00x		8.62		x	7.40		x	6.91		x	6.36		x
Total Development Ratio	<17%		6.39		%	6.33		%	5.70		%	7.18		%
Minimum Consolidated Shareholders’ Equity, as defined	$	2,925,050	$	5,242,324		$	4,155,729		$	3,848,400		$	3,755,092

48

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Nonrecourse Debt Maturities Table(dollars in thousands)

As of June 30, 2015

	Year Ending December 31, 2015												Year Ending December 31, 2016
	Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation			Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation
Fixed:
Fixed-rate debt	$	30,172		$	1,629		$	31,710		$	60,253		$	203,036		$	46,400		$	173,438		$	330,074
Weighted average rate	6.08		%	8.18		%	5.72		%	5.84		%	7.86		%	10.75		%	5.72		%	6.33		%
Variable:
Variable-rate debt	37,841			4,123			9,660			43,378			73,819			—			2,257			76,076
Weighted average rate	3.04		%	2.93		%	3.65		%	3.19		%	2.33		%	—		%	3.39		%	2.36		%
Tax-Exempt	45,000			—			546			45,546			—			—			—			—
Weighted average rate	2.28		%	—		%	1.44		%	2.27		%	—		%	—		%	—		%	—		%
Total variable-rate debt	82,841			4,123			10,206			88,924			73,819			—			2,257			76,076
Total Nonrecourse Debt	$	113,013		$	5,752		$	41,916		$	149,177		$	276,855		$	46,400		$	175,695		$	406,150
Weighted Average Rate	3.55		%	4.42		%	5.19		%	3.98		%	6.39		%	10.75		%	5.69		%	5.59		%
	Year Ending December 31, 2017												Year Ending December 31, 2018
	Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation			Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation
Fixed:
Fixed-rate debt	$	267,196		$	10,954		$	358,553		$	614,795		$	208,108		$	7,083		$	248,988		$	450,013
Weighted average rate	5.65		%	5.99		%	5.73		%	5.69		%	4.57		%	3.81		%	4.99		%	4.81		%
Variable:
Variable-rate debt	981,806			354			62,624			1,044,076			23,712			—			2,502			26,214
Weighted average rate	5.79		%	2.73		%	1.56		%	5.54		%	3.20		%	—		%	3.48		%	3.23		%
Tax-Exempt	—			—			25,234			25,234			95,798			13,247			53,040			135,591
Weighted average rate	—		%	—		%	0.97		%	0.97		%	1.22		%	1.98		%	2.07		%	1.48		%
Total variable-rate debt	981,806			354			87,858			1,069,310			119,510			13,247			55,542			161,805
Total Nonrecourse Debt	$	1,249,002		$	11,308		$	446,411		$	1,684,105		$	327,618		$	20,330		$	304,530		$	611,818
Weighted Average Rate	5.76		%	5.88		%	4.87		%	5.52		%	3.49		%	2.62		%	4.47		%	4.01		%

49

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Debt(dollars in thousands) (continued)

As of June 30, 2015

	Year Ending December 31, 2019												Thereafter
	Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation			Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation
Fixed:
Fixed-rate debt	$	115,147		$	3,885		$	40,563		$	151,825		$	1,583,631		$	335,574		$	962,090		$	2,210,147
Weighted average rate	3.96		%	4.80		%	5.74		%	4.42		%	5.38		%	7.32		%	4.38		%	4.65		%
Variable:
Variable-rate debt	241,068			53,293			106,780			294,555			53,222			—			3,041			56,263
Weighted average rate	2.17		%	1.25		%	4.14		%	3.05		%	3.07		%	—		%	1.16		%	2.97		%
Tax-Exempt	8,500			—			20,000			28,500			468,284			106,764			66,860			428,380
Weighted average rate	3.05		%	—		%	0.87		%	1.52		%	1.12		%	1.31		%	1.01		%	1.05		%
Total variable-rate debt	249,568			53,293			126,780			323,055			521,506			106,764			69,901			484,643
Total Nonrecourse Debt	$	364,715		$	57,178		$	167,343		$	474,880		$	2,105,137		$	442,338		$	1,031,991		$	2,694,790
Weighted Average Rate	2.76		%	1.50		%	4.14		%	3.40		%	4.37		%	5.87		%	4.15		%	4.04		%
	Total
	Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation
Fixed:
Fixed-rate debt	$	2,407,290		$	405,525		$	1,815,342		$	3,817,107
Weighted average rate	5.49		%	7.60		%	4.91		%	4.99		%
Variable:
Variable-rate debt	1,411,468			57,770			186,864			1,540,562
Weighted average rate	4.77		%	1.38		%	3.18		%	4.70		%
Tax-Exempt	617,582			120,011			165,680			663,251
Weighted average rate	1.24		%	1.38		%	1.33		%	1.24		%
Total variable-rate debt	2,029,050			177,781			352,544			2,203,813
Total Nonrecourse Debt	$	4,436,340		$	583,306		$	2,167,886		$	6,020,920
Weighted Average Rate	4.67		%	5.70		%	4.49		%	4.50		%

50

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of FFO by Segment - Three and Six Months Ended June 30, 2015 (in thousands)

	Three Months Ended June 30, 2015												Six Months Ended June 30, 2015
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
Commercial Group
Total revenues	$	134,607		$	5,274		$	65,556		$	194,889		$	263,152		$	10,036		$	131,101		$	384,217
Exclude straight-line rent adjustment	(555		)	—			—			(555		)	(865		)	—			—			(865		)
Add interest and other income	1,273			4			55			1,324			3,906			10			89			3,985
Equity in earnings (loss) of unconsolidated entities	8,265			—			(8,265		)	—			14,992			—			(14,992		)	—
Exclude operating expenses of unconsolidated entities	25,182			—			(25,182		)	—			51,174			—			(51,174		)	—
Exclude write-offs of abandoned development projects of unconsolidated entities	—			—			—			—			—			—			—			—
Exclude gain on disposition of unconsolidated entities	—			—			—			—			—			—			—			—
Exclude depreciation and amortization of unconsolidated entities	14,080			—			(14,080		)	—			28,471			—			(28,471		)	—
Exclude interest expense of unconsolidated entities	18,084			—			(18,084		)	—			36,545			—			(36,545		)	—
Exclude loss on extinguishment of debt of unconsolidated entities	—			—			—			—			8			—			(8		)	—
Adjusted revenues	200,936			5,278			—			195,658			397,383			10,046			—			387,337
Operating expenses	74,119			2,670			25,182			96,631			147,209			5,239			51,174			193,144
Operating expenses of unconsolidated entities	25,182			—			(25,182		)	—			51,174			—			(51,174		)	—
Write-offs of abandoned development projects	5,104			—			—			5,104			5,104			—			—			5,104
Write-offs of abandoned development projects of unconsolidated entities	—			—			—			—			—			—			—			—
Non-Real Estate depreciation and amortization	285			—			—			285			505			—			—			505
Exclude straight-line rent adjustment	(391		)	—			—			(391		)	(827		)	—			—			(827		)
Adjusted operating expenses	104,299			2,670			—			101,629			203,165			5,239			—			197,926
Net operating income	96,637			2,608			—			94,029			194,218			4,807			—			189,411
Interest expense	(29,849		)	(1,074		)	(18,084		)	(46,859		)	(60,171		)	(2,202		)	(36,545		)	(94,514		)
Interest expense of unconsolidated entities	(18,084		)	—			18,084			—			(36,545		)	—			36,545			—
Loss on extinguishment of debt	(3,102		)	—			—			(3,102		)	(3,114		)	—			(8		)	(3,122		)
Loss on extinguishment of debt of unconsolidated entities	—			—			—			—			(8		)	—			8			—
Amortization of mortgage procurement costs - Real Estate Groups	(1,756		)	—			—			(1,756		)	(3,720		)	—			—			(3,720		)
Net gain on change in control of interests	463,643			—			—			463,643			463,643			—			—			463,643
Straight-line rent adjustment	164			—			—			164			38			—			—			38
Noncontrolling interest in FFO	(1,534		)	(1,534		)	—			—			(2,605		)	(2,605		)	—			—
Income tax benefit (expense) on FFO	—			—			—			—			—			—			—			—
FFO attributable to Forest City Enterprises, Inc.	$	506,119		$	—		$	—		$	506,119		$	551,736		$	—		$	—		$	551,736
Depreciation and amortization - Real Estate Groups	(46,172		)	—			—			(46,172		)	(91,856		)	—			—			(91,856		)
Net gain on disposition of full or partial interests in rental properties	—			—			—			—			—			—			—			—
Gain on disposition of unconsolidated entities	—			—			—			—			—			—			—			—
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	459,947		$	—		$	—		$	459,947		$	459,880		$	—		$	—		$	459,880

51

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of FFO by Segment - Three and Six Months Ended June 30, 2015 (in thousands) (continued)

	Three Months Ended June 30, 2015												Six Months Ended June 30, 2015
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
Residential Group
Total revenues	$	80,860		$	10,408		$	34,637		$	105,089		$	150,520		$	18,776		$	71,932		$	203,676
Exclude straight-line rent adjustment	(175		)	—			—			(175		)	(363		)	—			—			(363		)
Add interest and other income	3,764			92			306			3,978			6,760			95			554			7,219
Equity in earnings (loss) of unconsolidated entities	12,048			99			(11,669		)	280			13,758			82			(12,836		)	840
Exclude operating expenses of unconsolidated entities	17,821			—			(17,821		)	—			38,599			—			(38,599		)	—
Exclude write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			10,191			—			(10,191		)	—
Exclude gain on disposition of unconsolidated entities	(19,284		)	—			19,284			—			(19,284		)	—			19,284			—
Exclude depreciation and amortization of unconsolidated entities	7,228			—			(7,228		)	—			15,293			—			(15,293		)	—
Exclude interest expense of unconsolidated entities	6,935			—			(6,935		)	—			14,251			—			(14,251		)	—
Exclude loss on extinguishment of debt of unconsolidated entities	383			—			(383		)	—			600			—			(600		)	—
Adjusted revenues	119,771			10,599			—			109,172			230,325			18,953			—			211,372
Operating expenses	46,163			4,774			17,821			59,210			89,402			7,501			38,599			120,500
Operating expenses of unconsolidated entities	17,821			—			(17,821		)	—			38,599			—			(38,599		)	—
Write-offs of abandoned development projects	674			—			10,191			10,865			674			—			10,191			10,865
Write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			10,191			—			(10,191		)	—
Non-Real Estate depreciation and amortization	171			—			—			171			319			—			—			319
Exclude straight-line rent adjustment	(40		)	—			—			(40		)	(60		)	—			—			(60		)
Adjusted operating expenses	74,980			4,774			—			70,206			139,125			7,501			—			131,624
Net operating income	44,791			5,825			—			38,966			91,200			11,452			—			79,748
Interest expense	(2,145		)	(878		)	(6,935		)	(8,202		)	(6,610		)	(2,398		)	(14,251		)	(18,463		)
Interest expense of unconsolidated entities	(6,935		)	—			6,935			—			(14,251		)	—			14,251			—
Loss on extinguishment of debt	(88		)	—			(383		)	(471		)	(88		)	—			(600		)	(688		)
Loss on extinguishment of debt of unconsolidated entities	(383		)	—			383			—			(600		)	—			600			—
Amortization of mortgage procurement costs - Real Estate Groups	(852		)	—			—			(852		)	(1,687		)	—			—			(1,687		)
Net gain on change in control of interests	24,041			—			—			24,041			24,041			—			—			24,041
Straight-line rent adjustment	135			—			—			135			303			—			—			303
Noncontrolling interest in FFO	(4,947		)	(4,947		)	—			—			(9,054		)	(9,054		)	—			—
Income tax benefit (expense) on FFO	—			—			—			—			—			—			—			—
FFO attributable to Forest City Enterprises, Inc.	$	53,617		$	—		$	—		$	53,617		$	83,254		$	—		$	—		$	83,254
Depreciation and amortization - Real Estate Groups	(25,108		)	—			—			(25,108		)	(49,108		)	—			—			(49,108		)
Net gain on disposition of full or partial interests in rental properties	—			—			19,284			19,284			—			—			19,284			19,284
Gain on disposition of unconsolidated entities	19,284			—			(19,284		)	—			19,284			—			(19,284		)	—
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	47,793		$	—		$	—		$	47,793		$	53,430		$	—		$	—		$	53,430

52

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of FFO by Segment - Three and Six Months Ended June 30, 2015 (in thousands) (continued)

	Three Months Ended June 30, 2015											Six Months Ended June 30, 2015
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata		Pro-Rata Consolidation (Non-GAAP)
Arena
Total revenues	$	27,040		$	12,201		$	—	$	14,839		$	55,860		$	25,202		$	—	$	30,658
Exclude straight-line rent adjustment	(8		)	—			—		(8		)	(19		)	—			—		(19		)
Add interest and other income	—			—			—		—			—			—			—		—
Equity in earnings (loss) of unconsolidated entities	—			—			—		—			—			—			—		—
Exclude operating expenses of unconsolidated entities	—			—			—		—			—			—			—		—
Exclude write-offs of abandoned development projects of unconsolidated entities	—			—			—		—			—			—			—		—
Exclude gain on disposition of unconsolidated entities	—			—			—		—			—			—			—		—
Exclude depreciation and amortization of unconsolidated entities	—			—			—		—			—			—			—		—
Exclude interest expense of unconsolidated entities	—			—			—		—			—			—			—		—
Exclude loss on extinguishment of debt of unconsolidated entities	—			—			—		—			—			—			—		—
Adjusted revenues	27,032			12,201			—		14,831			55,841			25,202			—		30,639
Operating expenses	17,862			7,901			—		9,961			37,820			16,868			—		20,952
Operating expenses of unconsolidated entities	—			—			—		—			—			—			—		—
Write-offs of abandoned development projects	—			—			—		—			—			—			—		—
Write-offs of abandoned development projects of unconsolidated entities	—			—			—		—			—			—			—		—
Non-Real Estate depreciation and amortization	17			—			—		17			34			—			—		34
Exclude straight-line rent adjustment	—			—			—		—			—			—			—		—
Adjusted operating expenses	17,879			7,901			—		9,978			37,854			16,868			—		20,986
Net operating income	9,153			4,300			—		4,853			17,987			8,334			—		9,653
Interest expense	(10,127		)	(5,346		)	—		(4,781		)	(20,235		)	(10,650		)	—		(9,585		)
Interest expense of unconsolidated entities	—			—			—		—			—			—			—		—
Loss on extinguishment of debt	—			—			—		—			—			—			—		—
Loss on extinguishment of debt of unconsolidated entities	—			—			—		—			—			—			—		—
Amortization of mortgage procurement costs - Real Estate Groups	—			—			—		—			—			—			—		—
Net gain on change in control of interests	—			—			—		—			—			—			—		—
Straight-line rent adjustment	8			—			—		8			19			—			—		19
Noncontrolling interest in FFO	1,046			1,046			—		—			2,316			2,316			—		—
Income tax benefit (expense) on FFO	—			—			—		—			—			—			—		—
FFO attributable to Forest City Enterprises, Inc.	$	80		$	—		$	—	$	80		$	87		$	—		$	—	$	87
Depreciation and amortization - Real Estate Groups	(5,062		)	—			—		(5,062		)	(10,117		)	—			—		(10,117		)
Net gain on disposition of full or partial interests in rental properties	—			—			—		—			—			—			—		—
Gain on disposition of unconsolidated entities	—			—			—		—			—			—			—		—
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(4,982	)	$	—		$	—	$	(4,982	)	$	(10,030	)	$	—		$	—	$	(10,030	)

53

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of FFO by Segment - Three and Six Months Ended June 30, 2015 (in thousands) (continued)

	Three Months Ended June 30, 2015												Six Months Ended June 30, 2015
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
Land Group
Total revenues	$	17,252		$	1,723		$	236		$	15,765		$	27,309		$	2,718		$	1,552		$	26,143
Exclude straight-line rent adjustment	—			—			—			—			—			—			—			—
Add interest and other income	4,141			410			2			3,733			8,181			811			3			7,373
Equity in earnings (loss) of unconsolidated entities	(513		)	—			513			—			1,165			—			(220		)	945
Exclude operating expenses of unconsolidated entities	578			—			(578		)	—			1,075			—			(1,075		)	—
Exclude write-offs of abandoned development projects of unconsolidated entities	—			—			—			—			—			—			—			—
Exclude gain on disposition of unconsolidated entities	—			—			—			—			—			—			—			—
Exclude depreciation and amortization of unconsolidated entities	10			—			(10		)	—			20			—			(20		)	—
Exclude interest expense of unconsolidated entities	163			—			(163		)	—			240			—			(240		)	—
Exclude loss on extinguishment of debt of unconsolidated entities	—			—			—			—			—			—			—			—
Adjusted revenues	21,631			2,133			—			19,498			37,990			3,529			—			34,461
Operating expenses	6,724			653			578			6,649			11,365			1,131			1,075			11,309
Operating expenses of unconsolidated entities	578			—			(578		)	—			1,075			—			(1,075		)	—
Write-offs of abandoned development projects	—			—			—			—			—			—			—			—
Write-offs of abandoned development projects of unconsolidated entities	—			—			—			—			—			—			—			—
Non-Real Estate depreciation and amortization	19			—			—			19			68			—			—			68
Exclude straight-line rent adjustment	—			—			—			—			—			—			—			—
Adjusted operating expenses	7,321			653			—			6,668			12,508			1,131			—			11,377
Net operating income	14,310			1,480			—			12,830			25,482			2,398			—			23,084
Interest expense	405			35			(163		)	207			870			74			(240		)	556
Interest expense of unconsolidated entities	(163		)	—			163			—			(240		)	—			240			—
Loss on extinguishment of debt	—			—			—			—			—			—			—			—
Loss on extinguishment of debt of unconsolidated entities	—			—			—			—			—			—			—			—
Amortization of mortgage procurement costs - Real Estate Groups	—			—			—			—			—			—			—			—
Net gain on change in control of interests	—			—			—			—			—			—			—			—
Straight-line rent adjustment	—			—			—			—			—			—			—			—
Noncontrolling interest in FFO	(1,515		)	(1,515		)	—			—			(2,472		)	(2,472		)	—			—
Income tax benefit (expense) on FFO	—			—			—			—			—			—			—			—
FFO attributable to Forest City Enterprises, Inc.	$	13,037		$	—		$	—		$	13,037		$	23,640		$	—		$	—		$	23,640
Depreciation and amortization - Real Estate Groups	(372		)	—			—			(372		)	(413		)	—			—			(413		)
Net gain on disposition of full or partial interests in rental properties	—			—			—			—			—			—			—			—
Gain on disposition of unconsolidated entities	—			—			—			—			—			—			—			—
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	12,665		$	—		$	—		$	12,665		$	23,227		$	—		$	—		$	23,227

54

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of FFO by Segment - Three and Six Months Ended June 30, 2015 (in thousands) (continued)

	Three Months Ended June 30, 2015										Six Months Ended June 30, 2015
	Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Pro-Rata Consolidation (Non-GAAP)
Corporate Group
Total revenues	$	—		$	—	$	—	$	—		$	—		$	—	$	—	$	—
Exclude straight-line rent adjustment	—			—		—		—			—			—		—		—
Add interest and other income	100			—		—		100			135			—		—		135
Equity in earnings (loss) of unconsolidated entities	(791		)	—		—		(791		)	(1,593		)	—		—		(1,593		)
Exclude operating expenses of unconsolidated entities	—			—		—		—			—			—		—		—
Exclude write-offs of abandoned development projects of unconsolidated entities	—			—		—		—			—			—		—		—
Exclude gain on disposition of unconsolidated entities	—			—		—		—			—			—		—		—
Exclude depreciation and amortization of unconsolidated entities	—			—		—		—			—			—		—		—
Exclude interest expense of unconsolidated entities	—			—		—		—			—			—		—		—
Exclude loss on extinguishment of debt of unconsolidated entities	—			—		—		—			—			—		—		—
Adjusted revenues	(691		)	—		—		(691		)	(1,458		)	—		—		(1,458		)
Operating expenses	21,972			—		—		21,972			41,687			—		—		41,687
Operating expenses of unconsolidated entities	—			—		—		—			—			—		—		—
Write-offs of abandoned development projects	—			—		—		—			—			—		—		—
Write-offs of abandoned development projects of unconsolidated entities	—			—		—		—			—			—		—		—
Non-Real Estate depreciation and amortization	738			—		—		738			1,446			—		—		1,446
Exclude straight-line rent adjustment	—			—		—		—			—			—		—		—
Adjusted operating expenses	22,710			—		—		22,710			43,133			—		—		43,133
Net operating income	(23,401		)	—		—		(23,401		)	(44,591		)	—		—		(44,591		)
Interest expense	(6,036		)	—		—		(6,036		)	(14,182		)	—		—		(14,182		)
Interest expense of unconsolidated entities	—			—		—		—			—			—		—		—
Loss on extinguishment of debt	—			—		—		—			(35,142		)	—		—		(35,142		)
Loss on extinguishment of debt of unconsolidated entities	—			—		—		—			—			—		—		—
Amortization of mortgage procurement costs - Real Estate Groups	—			—		—		—			—			—		—		—
Net gain on change in control of interests	—			—		—		—			—			—		—		—
Straight-line rent adjustment	—			—		—		—			—			—		—		—
Noncontrolling interest in FFO	—			—		—		—			—			—		—		—
Income tax benefit (expense) on FFO	(174,769		)	—		—		(174,769		)	(175,584		)	—		—		(175,584		)
FFO attributable to Forest City Enterprises, Inc.	$	(204,206	)	$	—	$	—	$	(204,206	)	$	(269,499	)	$	—	$	—	$	(269,499	)
Depreciation and amortization - Real Estate Groups	—			—		—		—			—			—		—		—
Net gain on disposition of full or partial interests in rental properties	—			—		—		—			—			—		—		—
Gain on disposition of unconsolidated entities	—			—		—		—			—			—		—		—
Income tax benefit (expense) on non-FFO:
Gain on disposition of rental properties	(7,461		)	—		—		(7,461		)	(7,461		)	—		—		(7,461		)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(211,667	)	$	—	$	—	$	(211,667	)	$	(276,960	)	$	—	$	—	$	(276,960	)

55

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of FFO by Segment - Three and Six Months Ended June 30, 2015 (in thousands) (continued)

	Three Months Ended June 30, 2015												Six Months Ended June 30, 2015
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
Total
Total revenues	$	259,759		$	29,606		$	100,429		$	330,582		$	496,841		$	56,732		$	204,585		$	644,694
Exclude straight-line rent adjustment	(738		)	—			—			(738		)	(1,247		)	—			—			(1,247		)
Add interest and other income	9,278			506			363			9,135			18,982			916			646			18,712
Equity in earnings (loss) of unconsolidated entities	19,009			99			(19,421		)	(511		)	28,322			82			(28,048		)	192
Exclude operating expenses of unconsolidated entities	43,581			—			(43,581		)	—			90,848			—			(90,848		)	—
Exclude write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			10,191			—			(10,191		)	—
Exclude gain on disposition of unconsolidated entities	(19,284		)	—			19,284			—			(19,284		)	—			19,284			—
Exclude depreciation and amortization of unconsolidated entities	21,318			—			(21,318		)	—			43,784			—			(43,784		)	—
Exclude interest expense of unconsolidated entities	25,182			—			(25,182		)	—			51,036			—			(51,036		)	—
Exclude loss on extinguishment of debt of unconsolidated entities	383			—			(383		)	—			608			—			(608		)	—
Adjusted revenues	368,679			30,211			—			338,468			720,081			57,730			—			662,351
Operating expenses	166,840			15,998			43,581			194,423			327,483			30,739			90,848			387,592
Operating expenses of unconsolidated entities	43,581			—			(43,581		)	—			90,848			—			(90,848		)	—
Write-offs of abandoned development projects	5,778			—			10,191			15,969			5,778			—			10,191			15,969
Write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			10,191			—			(10,191		)	—
Non-Real Estate depreciation and amortization	1,230			—			—			1,230			2,372			—			—			2,372
Exclude straight-line rent adjustment	(431		)	—			—			(431		)	(887		)	—			—			(887		)
Adjusted operating expenses	227,189			15,998			—			211,191			435,785			30,739			—			405,046
Net operating income	141,490			14,213			—			127,277			284,296			26,991			—			257,305
Interest expense	(47,752		)	(7,263		)	(25,182		)	(65,671		)	(100,328		)	(15,176		)	(51,036		)	(136,188		)
Interest expense of unconsolidated entities	(25,182		)	—			25,182			—			(51,036		)	—			51,036			—
Loss on extinguishment of debt	(3,190		)	—			(383		)	(3,573		)	(38,344		)	—			(608		)	(38,952		)
Loss on extinguishment of debt of unconsolidated entities	(383		)	—			383			—			(608		)	—			608			—
Amortization of mortgage procurement costs - Real Estate Groups	(2,608		)	—			—			(2,608		)	(5,407		)	—			—			(5,407		)
Net gain on change in control of interests	487,684			—			—			487,684			487,684			—			—			487,684
Straight-line rent adjustment	307			—			—			307			360			—			—			360
Noncontrolling interest in FFO	(6,950		)	(6,950		)	—			—			(11,815		)	(11,815		)	—			—
Income tax benefit (expense) on FFO	(174,769		)	—			—			(174,769		)	(175,584		)	—			—			(175,584		)
FFO attributable to Forest City Enterprises, Inc.	$	368,647		$	—		$	—		$	368,647		$	389,218		$	—		$	—		$	389,218
Depreciation and amortization - Real Estate Groups	(76,714		)	—			—			(76,714		)	(151,494		)	—			—			(151,494		)
Net gain on disposition of full or partial interests in rental properties	—			—			19,284			19,284			—			—			19,284			19,284
Gain on disposition of unconsolidated entities	19,284			—			(19,284		)	—			19,284			—			(19,284		)	—
Income tax benefit (expense) on non-FFO:
Gain on disposition of rental properties	(7,461		)	—			—			(7,461		)	(7,461		)	—			—			(7,461		)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	303,756		$	—		$	—		$	303,756		$	249,547		$	—		$	—		$	249,547

56

EX-99.2

Exhibit 99.2

AT THE COMPANY	ON THE WEB
Jeff Frericks	www.forestcity.net
Vice President – Capital Markets
216-621-6060
Jeff Linton
Senior Vice President – Corporate Communication
216-621-6060

FOR IMMEDIATE RELEASE

Forest City Reports 2015 Second-Quarter and Year-to-Date Results

• Operating FFO up 31 percent over second quarter 2014

• Overall Comp NOI up 3.8 percent, led by retail and apartments

• FFO, net earnings up significantly, driven by gains on change in control of interests

• De-leveraging continues: $138.9 million senior notes exchanged after quarter end

• REIT conversion on track for January 1, 2016

CLEVELAND, Ohio - August 4, 2015 - Forest City Enterprises, Inc. (NYSE: FCEA and FCEB) today announced Operating FFO, FFO, net earnings/loss and revenues for the three and six months ended June 30, 2015.

Operating FFO

Operating FFO for the three months ended June 30, 2015 was $78.6 million, a 31 percent increase, compared with $60.2 million for the three months ended June 30, 2014. For the six months ended June 30, 2015, Operating FFO was $137.0 million, a 26 percent increase, compared with $108.7 million for the six months ended June 30, 2014.

Positive factors impacting second-quarter 2015 Operating FFO, compared with the second quarter of 2014, included decreased interest expense, both corporate and in the mature portfolio, of $7.3 million; increased net operating income (NOI) from the mature portfolio of $5.1 million; increased capitalized interest to active development projects of $4.4 million; increased Operating FFO from new property openings and acquisitions of $3.6 million; increased Operating FFO from military housing of $3.5 million, primarily related to incentives earned for a recently completed Navy development phase; and increased land sales at the company's Stapleton project in Denver of $1.5 million. These positive factors were partially offset by lower Operating FFO from properties sold of $3.1 million, and by reduced Operating FFO from other sources of $3.9 million, primarily related to a non-recurring 2014 legal settlement recovery.

Factors impacting Operating FFO for the second quarter and year to date are illustrated in bridge diagrams included in the company's supplemental package for the three and six months ended June 30, 2015, furnished to the Securities and Exchange Commission (SEC) and available on the company's website, www.forestcity.net.

1

Operating FFO is a non-GAAP measure derived from FFO. The company believes Operating FFO provides investors with additional information about its core operations. Included with this press release is a table reconciling FFO to Operating FFO.

FFO

Total FFO for the three months ended June 30, 2015 was $368.6 million, or $1.44 per share, compared with $53.1 million, or $0.24 per share for the three months ended June 30, 2014. Year-to-date 2015 FFO was $389.2 million, or $1.60 per share, compared with $108.5 million, or $0.50 per share for the six months ended June 30, 2014. Per-share amounts are on a fully diluted basis.

In addition to the factors listed above related to Operating FFO, second-quarter 2015 FFO results were positively impacted by significant net gains on change in control of interests of $298.4 million, net of tax, or $1.16 per share, primarily related to the acquisition in the quarter of full equity ownership of seven life-science office properties and two parking facilities at University Park at MIT in Cambridge. These increases were partially offset by higher write-offs of abandoned development projects of $15.0 million. In addition, the company had costs related to its planned 2016 conversion to a real estate investment trust (REIT) of $9.8 million ($6.0 million, net of tax), or $0.02 per share, in the quarter.

FFO and FFO per share are non-GAAP measures commonly used by publicly traded real estate companies. Included with this press release is a table reconciling net earnings/loss, the most comparable GAAP measure, to FFO.

Net Earnings/Loss

For the three months ended June 30, 2015, the company had net earnings of $303.8 million, or $1.18 per share, compared with a net loss of $93.0 million, or $0.47 per share, for the three months ended June 30, 2014. As indicated above under FFO, the significant positive variance in net earnings for the second quarter, compared with the same period in 2014, was primarily driven by increased net gains on change in control of interests, offset primarily by higher deferred income tax expense. For the six months ended June 30, 2015, the company had net earnings of $249.5 million, or $1.04 per share, compared with a net loss of $77.5 million, or $0.39 per share, for the six months ended June 30, 2014. Per-share amounts are on a fully diluted basis.

Additional explanations of factors impacting FFO, Operating FFO and net earnings/loss for the three and six months ended June 30, 2015, are included in the company's supplemental package for the quarter ended June 30, 2015, furnished to the SEC and available on the company's website, www.forestcity.net.

Revenues

Consolidated revenues for the three months ended June 30, 2015, were $259.8 million, compared with $229.6 million for the three months ended June 30, 2014. Year-to-date consolidated revenues were $496.8 million, compared with $479.2 million for the six months ended June 30, 2014.

Commentary

"Our strong results for the second quarter and year to date are a direct reflection of the ongoing execution of our strategic plan, including continued de-leveraging, focusing on core properties and strong, urban markets, and driving operational excellence throughout the business," said David J. LaRue, president and chief executive officer.

"Operating FFO was up significantly over the same quarter last year, with increased NOI from the mature portfolio and lower interest expense from our de-leveraging program being the biggest drivers of that

2

improvement. FFO and net earnings both had large quarter-over-quarter positive variances, driven primarily by net gains on change in control of interests stemming from the acquisition during the quarter of our former partner's interest in seven life-science office properties and two related parking facilities at our University Park at MIT mixed-use, tech office campus in Cambridge, Massachusetts.

"Comp NOI and comp occupancy were up across all major asset classes - apartments, retail, and office. Results in the apartment portfolio continued to reflect the strength of the properties and the markets we serve, as well as the skill of our operating teams. Two recently opened properties, Radian in Boston and Twelve12 in Washington, D.C., achieved stabilization during the quarter.

"The retail portfolio showed continued solid performance with growth in comp NOI and occupancies. Notably, our comp malls achieved a fifth consecutive quarter of rolling 12-month rent increases above 20 percent in new, same-space leases, compared with prior rents. This is a key indicator for continued strong results from our regional malls.

"In the office portfolio, comp NOI results reflect a vacancy at 88 Sidney Street at University Park at MIT. That vacancy is now fully leased and we expect office to show improving results as those new rents come on line.

"We continue to pursue non-core asset dispositions, though the pace has clearly not met our expectations. We remain confident in our ability to close targeted asset sales within the 18 to 36 month timeframe we shared with investors in May, and we will use proceeds to continue our de-leveraging efforts. The timing of these asset sales will not impact our timeline for REIT conversion.

"After the end of the quarter, we executed privately negotiated exchanges of $138.9 million of convertible senior notes for common stock and cash. Year to date, we have completed privately negotiated exchanges for $427.8 million out of a total of $700 million of convertible senior notes that were outstanding at the beginning of the year.

"In our under-construction pipeline, we have begun construction on six new projects, year to date, and anticipate starting another three by yearend. This robust level of activity reflects our strategy of activating entitled development opportunities, including through our ASRS fund and our strategic partnership with Greenland, USA. As these new properties are completed and stabilized, they will contribute meaningfully to future results. The strength of the pipeline also demonstrates our ability to expand in our core markets and create value by adding to our already strong operating portfolio.

"We are making solid progress on our 2016 REIT conversion. Our wholly owned subsidiary, Forest City Realty Trust, recently filed a preliminary registration statement on Form S-4 in connection with our plan to convert to REIT status, and we expect to hold a special shareholder meeting in the fall for the required shareholder vote. Despite the rigors of the conversion process itself, our teams are hitting key milestones and we are confident in meeting our yearend deadline.

"We are also nearing completion on the design of a new organizational structure for the company that will better align with our strategies and enable us to better leverage our unique capabilities across asset classes and in urban, mixed-use projects. We also expect the new structure to result in streamlined processes, better sharing of best practices and improved operating margins."

3

NOI, Occupancies and Rent

Overall comparable NOI increased 3.8 percent for the three months ended June 30, 2015, compared with the same period in 2014, with increases of 5.2 percent in apartments, 4.4 percent in retail, and 2.4 percent in office.

In the residential portfolio, average monthly rents per unit for the company's total comparable apartments rose to $1,405 for the six months ended June 30, 2015, a 2.6 percent increase compared with $1,369 for the six months ended June 30, 2014. Comparable average rents per unit in the company's core markets were $1,886, a 2.7 percent increase from $1,836 for the comparable period in 2014. Comparable economic occupancies for the six months ended June 30, 2015, were 95.3 percent, up from 94.5 percent for the same period in 2014.

In the retail portfolio, comparable retail occupancies at the end of the second quarter increased to 93.6 percent, up from 91.9 percent at June 30, 2014. Sales in the company's regional malls averaged $555 per square foot on a rolling 12-month basis, up from $550 per square foot at March 31, 2015, and from $515 per square foot at June 30, 2014. For the rolling 12-month period ended June 30, 2015, new, same-space leases in the company's regional malls increased 25.2 percent over prior rents.

Comparable office occupancies increased to 95.7 percent at June 30, 2015, compared with 93.5 percent at June 30, 2014. For the rolling 12-month period ended June 30, 2015, rent per square foot in new office same-space leases increased 4.1 percent over prior rents.

Comparable NOI, defined as NOI from stabilized properties operated in the three months ended June 30, 2015 and 2014, is a non-GAAP financial measure and is based on the pro-rata consolidation method, also a non-GAAP financial measure. Included in this release is a schedule that presents comparable NOI on the full-consolidation method and a reconciliation of NOI to earnings/loss before income taxes.

Openings and Projects Under Construction

During the second quarter, Forest City completed and opened a 32,000-square-foot restaurant-driven expansion of Galleria at Sunset, a regional mall in Henderson, Nevada, near Las Vegas. The expansion followed a renovation of the mall and includes a Bravo! Cucina Italiano and Larsen's Grille.

At June 30, 2015, Forest City had 14 projects under construction at a total cost at full consolidation of $928.2 million, or $895.3 million at the company's pro-rata share. These include:

RETAIL EXPANSION:

• Boulevard Mall, a regional mall in Buffalo, New York, is undergoing a 46,000-square-foot expansion that will include the addition of a new Dick's Sporting Goods store as well as interior and customer amenity upgrades. The expansion is expected to be completed in the fourth quarter of 2015.

RESIDENTIAL:

• Arris, a 327-unit apartment community with 19,000 square feet of street-level retail, at The Yards in Washington, D.C., is expected to be completed in the first quarter of 2016.

• Blossom Plaza, a 237-unit apartment community with 19,000 square feet of street-level retail, in the Chinatown neighborhood of Los Angeles. The project is expected to be completed in the second quarter of 2016.

4

• Eliot on 4th (formerly 1001 4th Street, SW), a 365-unit apartment community with 5,000 square feet of retail space at the company's Waterfront Station mixed-use project in Washington, D.C. The property is expected to be completed in the fourth quarter of 2016.

• Museum Towers II, a 286-unit apartment community in Philadelphia. The project is expected to be completed in the fourth quarter of 2016.

Arris, Blossom Plaza, Eliot on 4th and Museum Towers II are all part of the company's ASRS residential development fund.

Other residential projects currently under construction include the following three properties at Pacific Park Brooklyn that are part of the company's strategic partnership with Greenland USA:

• 535 Carlton, a 298-unit, all-affordable apartment community. It is expected to begin phased opening in the fourth quarter of 2016.

• 550 Vanderbilt, a 278-unit condominium property, which is expected to be begin phased opening in the first quarter of 2017.

• 38 Sixth Avenue, a 303-unit, all-affordable apartment community with 28,000 feet of street-level retail. It is expected to begin phased opening in the second quarter of 2017.

Remaining residential projects under construction include:

• B2 BKLYN, a 363-unit apartment community at Pacific Park Brooklyn. It is expected to be completed in the third quarter of 2016.

• Aster Town Center II, a 135-unit apartment community at Stapleton in Denver. It is expected to open in phases beginning in the third quarter of 2015.

• Lofts at Capitol Quarter, a 195-unit apartment community in Washington, D.C., in which the company is partnering with a regional developer and the District of Columbia Housing Authority, is expected to open in phases beginning in the fourth quarter of 2015.

OFFICE:

• 300 Massachusetts Avenue, a 246,000-square-foot, fully leased office building at University Park at MIT in Cambridge, is being developed in partnership with MIT and is expected to be completed in the first quarter of 2016.

• 1812 Ashland Avenue, a 164,000-square-foot office building at the company's Science + Technology Park at Johns Hopkins in Baltimore. The building is 70 percent pre-leased and is expected to be completed in the third quarter of 2016.

• The Bridge at Cornell Tech, a 235,000-square-foot corporate "co-location" building at Cornell Tech's new campus on Roosevelt Island in New York City. The building is expected to open in the second quarter of 2017.

5

Outlook

"Second-quarter and year-to-date results demonstrate strong, positive momentum as we achieve growth from our mature portfolio, further de-lever, and focus our portfolio around strong core markets and on owning, managing and developing unique, high-performing properties," said LaRue. "We remain positive in our outlook for the business, including our pipeline of future opportunities. As we progress toward REIT conversion and a new organizational structure that will better align with our strategies, we are confident in our ability to meet the challenges ahead and focused on creating value for all stakeholders."

REIT Conversion

On January 13, 2015, the company announced its Board of Directors approved a plan to pursue conversion to REIT status. On July 10, 2015, Forest City Realty Trust, Inc., the company's newly formed wholly owned subsidiary, filed a registration statement on Form S-4 containing a preliminary proxy statement of the company and a preliminary prospectus of Forest City Realty Trust, Inc. with the SEC in connection with the company's plan to convert to REIT status. The company expects to elect REIT status for its taxable year ending December 31, 2016, subject to business conditions, the completion of related preparatory work, obtaining necessary regulatory approvals and third-party consents.

Corporate Description

Forest City Enterprises, Inc. is an NYSE-listed national real estate company with $10.3 billion in consolidated assets. The company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. For more information, visit www.forestcity.net.

Supplemental Package

Please refer to the Investor Relations section of the company's website at www.forestcity.net for a supplemental package, which the company will furnish to the SEC on Form 8-K. The supplemental package includes operating and financial information for the quarter ended June 30, 2015, with reconciliations of non-GAAP financial measures, such as Operating FFO, FFO, NOI, comparable NOI and results prepared using the pro-rata consolidation method, to their most directly comparable GAAP financial measures.

Investor Presentations

Please note the company periodically posts updated investor presentations on the Investors page of its website at www.forestcity.net. It is possible the periodic updates may include information deemed to be material. Therefore, the company encourages investors, the media, and other interested parties to review the Investors page of its website at www.forestcity.net for the most recent investor presentation.

FFO

The company uses FFO, along with net earnings/loss to report its operating results. The majority of the company's peers in the publicly traded real estate industry are REITs and report operations using FFO as defined by the National Association of Real Estate Investment Trusts (NAREIT). FFO provides supplemental information about the company's operations. Although FFO is not presented in accordance with GAAP, the company believes it is necessary to understand its business and operating results, along with net earnings, the most comparable GAAP measure.

FFO is defined by NAREIT as net earnings/loss excluding the following items, at the company's proportionate share: i) gain/loss on full or partial disposition of rental properties, divisions and other investments (net of tax); ii) non-cash charges for real estate depreciation and amortization; iii) impairment

6

of depreciable real estate (net of tax); and iv) cumulative or retrospective effect of change in accounting principle (net of tax). Net earnings/loss, the most comparable financial measure calculated in accordance with GAAP, is reconciled to FFO in the table titled Reconciliation of Net Earnings (Loss) to FFO below and in the company's supplemental package, which the company will furnish to the SEC on Form 8-K.

Operating FFO

The company defines Operating FFO as FFO adjusted to exclude: i) impairment of non-depreciable real estate; ii) write-offs of abandoned development projects and demolition costs; iii) income recognized on state and federal historic and other tax credits; iv) gains or losses from extinguishment of debt; v) change in fair market value of nondesignated hedges; vi) gains or losses on change in control of interests; vii) the adjustment to recognize rental revenues and rental expense using the straight-line method; viii) participation payments to ground lessors on refinancing of our properties; ix) other transactional items; x) the Nets pre-tax FFO; and xi) income taxes on FFO. The company believes its presentation of FFO and Operating FFO provides important supplemental information to its investors. Operating FFO should not be considered to be an alternative to net earnings computed under GAAP as an indicator of our operating performance and may not be directly comparable to similarly titled measures reported by other companies.

Pro-Rata Consolidation Method

This press release contains certain financial measures prepared in accordance with GAAP under the full consolidation accounting method and certain financial measures prepared in accordance with the pro-rata consolidation method (non-GAAP). The company presents certain financial amounts under the pro-rata method because it believes this information is useful to investors as this method reflects the manner in which the company operates its business. In line with industry practice, the company has made a large number of investments in which its economic ownership is less than 100 percent as a means of procuring opportunities and sharing risk. Under the pro-rata consolidation method, the company presents its investments proportionate to its economic share of ownership. Under GAAP, the full consolidation method is used to report partnership assets and liabilities consolidated at 100 percent if deemed to be under its control or if the company is deemed to be the primary beneficiary of the variable interest entities (VIE), even if its ownership is not 100 percent. The company provides reconciliations from the full consolidation method to the pro-rata consolidation method below and throughout its supplemental package, which the company will furnish to the SEC on Form 8-K.

NOI

NOI, a non-GAAP measure, is defined as revenues (excluding straight-line rent adjustments) less operating expenses (including depreciation and amortization for non-real estate groups) plus interest income, equity in earnings/loss of unconsolidated entities (excluding gain/loss on disposition, impairment, interest expense, gain/loss on extinguishment of debt and depreciation and amortization of unconsolidated entities). The company believes NOI provides additional information about the company's core operations and, along with earnings, is necessary to understand the business and operating results. NOI may not be directly comparable to similarly-titled measures reported by other companies.

Comparable NOI

In addition to NOI, the company uses comparable NOI as a metric to evaluate the performance of its multifamily, office and retail properties. This measure provides a same-store comparison of operating results of all stabilized properties that are open and operating in all periods presented. Write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income, are not directly attributable to an operating property and are considered non-comparable NOI. In addition, certain income and expense items at the property

7

level, such as lease termination income, real estate tax assessments or rebates and participation payments as a result of refinancing transactions and NOI impacts of changes in ownership percentages, are excluded from comparable NOI and are included in non-comparable NOI. Retained properties that are considered non-comparable are disclosed in the company's supplemental package, which the company will furnish to the SEC on Form 8-K. Other properties and activities such as Arena, subsidized senior housing, military housing, corporate activities and land sales are not evaluated on a comparable basis and the NOI from these properties and activities is considered non-comparable NOI.

Safe Harbor Language

Statements made in this news release that state the company's or management's intentions, hopes, beliefs, expectations or predictions of the future are forward-looking statements. The company's actual results could differ materially from those expressed or implied in such forward-looking statements due to various risks, uncertainties and other factors. Risks and factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, the company's conversion to REIT status, its ability to qualify or to remain qualified as a REIT, realizing the anticipated benefits to shareholders if it successfully elects REIT status, the impact of complying with REIT qualification requirements, the amount and timing of any future distributions including those that it would be required to make as a REIT, the impact of issuing equity, debt or both to satisfy its E&P Distribution and other REIT conversion costs, the impact of covenants that could prevent it from satisfying REIT distribution requirements, its lack of experience operating as a REIT if it successfully converts, the impact of current lending and capital market conditions on its liquidity, its ability to finance or refinance projects or repay its debt, the impact of the slow economic recovery on its ownership, development and management of its commercial real estate portfolio, general real estate investment and development risks, using modular construction as a new construction methodology and owning a factory to produce modular units, vacancies in its properties, risks associated with developing and managing properties in partnership with others, 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 and other armed conflicts, risks of owning and operating an arena, risks associated with an investment in a professional sports team, the ability to sell all or a portion of its ownership interests in a professional sports team and arena, its substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by its credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, effects of a downgrade or failure of its insurance carriers, environmental liabilities, conflicts of interest, risks associated with the sale of tax credits, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, changes in federal, state or local tax laws, volatility in the market price of its publicly traded securities, inflation risks, litigation risks, cybersecurity risks, cyber incidents, its ability to achieve its strategic goals are based on significant assumptions, the effect on the market price of its common stock following its E&P Distribution and its conversion to REIT status, its ability to obtain the shareholder approval necessary for it to convert to REIT status, its ability to complete non-core asset sales, the impact to its deferred tax liability balance upon conversion to REIT status, and its ability to obtain requisite consents needed to complete the conversion to REIT status as well as other risks listed from time to time in the company's SEC filings, including but not limited to, the company's annual and quarterly reports.

8

Reconciliation of Net Earnings (Loss) to FFO

The table below reconciles net earnings (loss), the most comparable GAAP measure, to FFO, a non-GAAP measure.

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in thousands)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	303,756		$	(92,992	)	$	249,547		$	(77,472	)
Depreciation and Amortization—Real Estate Groups	76,714			75,661			151,494			146,667
Gain on disposition of full or partial interests in rental properties	(19,284		)	(17,366		)	(19,284		)	(68,461		)
Impairment of depreciable rental properties	—			129,059			—			129,059
Income tax expense adjustment — current and deferred (1):
Gain on disposition of full or partial interests in rental properties	7,461			8,820			7,461			28,718
Impairment of depreciable rental properties	—			(50,053		)	—			(50,053		)
FFO attributable to Forest City Enterprises, Inc.	$	368,647		$	53,129		$	389,218		$	108,458
FFO Per Share - Diluted
Numerator(in thousands):
FFO attributable to Forest City Enterprises, Inc.	$	368,647		$	53,129		$	389,218		$	108,458
If-Converted Method (adjustments for interest, net of tax):
5.000% Notes due 2016	73			382			383			765
4.250% Notes due 2018	1,495			2,277			3,529			4,554
3.625% Notes due 2020	953			1,664			2,396			3,328
FFO for per share data	$	371,168		$	57,452		$	395,526		$	117,105
Denominator:
Weighted average shares outstanding—Basic	233,377,771			198,341,355			218,254,445			198,041,879
Effect of stock options, restricted stock and performance shares	3,160,648			1,540,864			2,964,450			1,733,435
Effect of convertible debt	18,389,062			32,138,215			23,211,264			32,138,215
Effect of convertible Class A Common Units	2,973,190			3,461,710			2,973,190			3,553,721
Weighted average shares outstanding - Diluted	257,900,671			235,482,144			247,403,349			235,467,250
FFO Per Share	$	1.44		$	0.24		$	1.60		$	0.50

(1) The following table provides detail of income tax expense (benefit):

	Three Months Ended June 30,					Six Months Ended June 30,
	2015		2014			2015		2014
	(in thousands)
Income tax expense (benefit) on FFO
Operating Earnings:
Current taxes	$	2,386	$	(15,215	)	$	642	$	(6,582	)
Deferred taxes	172,383		10,939			174,942		(3,017		)
Total income tax expense (benefit) on FFO	174,769		(4,276		)	175,584		(9,599		)
Income tax expense (benefit) on non-FFO
Disposition of full or partial interests in rental properties:
Current taxes	$	2,882	$	(13,292	)	$	2,882	$	15,756
Deferred taxes	4,579		22,112			4,579		12,962
Disposition of full or partial interests in rental properties	7,461		8,820			7,461		28,718
Impairment of depreciable rental properties
Deferred taxes	$	—	$	(50,053	)	$	—	$	(50,053	)
Total income tax expense (benefit) on non-FFO	7,461		(41,233		)	7,461		(21,335		)
Grand Total	$	182,230	$	(45,509	)	$	183,045	$	(30,934	)

9

Reconciliation of FFO to Operating FFO - Pro-Rata Consolidation

	Three Months Ended June 30,							Six Months Ended June 30,
	2015			2014			% Change	2015			2014			% Change
	(in thousands)							(in thousands)
FFO attributable to Forest City Enterprises, Inc.	$	368,647		$	53,129			$	389,218		$	108,458
Impairment of non-depreciable real estate	—			770				—			770
Write-offs of abandoned development projects and demolition costs	15,969			933				15,969			933
Tax credit income	(3,957		)	(5,480		)		(7,212		)	(9,427		)
Loss on extinguishment of debt	3,573			1,189				38,952			1,622
Change in fair market value of nondesignated hedges	(2,979		)	(1,681		)		(5,092		)	2,991
Net gain on change in control of interests	(487,684		)	—				(487,684		)	(2,759		)
Straight-line rent adjustments	(307		)	(841		)		(360		)	(3,375		)
Participation payments	—			—				—			1,469
Net loss on disposition of partial interest in development project	—			16,211				—			16,211
REIT conversion and reorganization costs	9,771			—				15,983			—
Nets Pre-tax FFO	791			261				1,593			1,414
Income tax expense (benefit) on FFO	174,769			(4,276		)		175,584			(9,599		)
Operating FFO attributable to Forest City Enterprises, Inc.	$	78,593		$	60,215		30.5%	$	136,951		$	108,708		26.0%
Operating FFO Per Share - Diluted
Numerator(in thousands):
Operating FFO attributable to Forest City Enterprises, Inc.	$	78,593		$	60,215			$	136,951		$	108,708
If-Converted Method (adjustments for interest, pre-tax):
5.000% Notes due 2016	119			625				626			1,250
4.250% Notes due 2018	2,443			3,719				5,765			7,438
3.625% Notes due 2020	1,557			2,719				3,914			5,438
Operating FFO for per share data	$	82,712		$	67,278			$	147,256		$	122,834
Denominator:
Weighted average shares outstanding - Diluted	257,900,671			235,482,144				247,403,349			235,467,250
Operating FFO Per Share	$	0.32		$	0.29			$	0.60		$	0.52

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in thousands)						(in thousands)
Operating FFO by segment:
Commercial Group	$	49,430		$	37,834		$	94,112		$	69,109
Residential Group	35,240			30,190			60,990			55,683
Arena	72			108			68			1,757
Land Group	12,726			12,305			22,978			23,931
Corporate Group	(18,875		)	(20,222		)	(41,197		)	(41,772		)
Operating FFO	$	78,593		$	60,215		$	136,951		$	108,708

10

Reconciliation of Net Operating Income (non-GAAP) to Earnings (Loss) Before Income Taxes (GAAP)(in thousands)

	Three Months Ended June 30, 2015												Three Months Ended June 30, 2014
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			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)
Total revenues	$	259,759		$	29,606		$	100,429		$	330,582		$	229,637		$	18,167		$	110,484		$	39		$	321,993
Exclude straight-line adjustment	(738		)	—			—			(738		)	(1,354		)	—			—			20			(1,334		)
Add interest and other income	9,278			506			363			9,135			12,375			566			(372		)	—			11,437
Equity in earnings (loss) of unconsolidated entities	19,009			99			(19,421		)	(511		)	27,168			98			(27,719		)	—			(649		)
Exclude operating expenses of unconsolidated entities	43,581			—			(43,581		)	—			47,566			—			(47,566		)	—			—
Exclude write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			—			—			—			—			—
Exclude gain on disposition of unconsolidated entities	(19,284		)	—			19,284			—			(16,090		)	—			16,090			—			—
Exclude depreciation and amortization of unconsolidated entities	21,318			—			(21,318		)	—			22,968			—			(22,968		)	—			—
Exclude interest expense of unconsolidated entities	25,182			—			(25,182		)	—			27,905			—			(27,905		)	—			—
Exclude loss on extinguishment of debt of unconsolidated entities	383			—			(383		)	—			44			—			(44		)	—			—
Adjusted revenues	368,679			30,211			—			338,468			350,219			18,831			—			59			331,447
Operating expenses	166,840			15,998			43,581			194,423			145,807			9,623			47,566			(1,749		)	182,001
Operating expenses of unconsolidated entities	43,581			—			(43,581		)	—			47,566			—			(47,566		)	—			—
Write-offs of abandoned development projects and demolition costs	5,778			—			10,191			15,969			933			—			—			—			933
Write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			—			—			—			—			—
Non-Real Estate depreciation and amortization	1,230			—			—			1,230			1,090			—			—			—			1,090
Exclude straight-line rent adjustment	(431		)	—			—			(431		)	(493		)	—			—			—			(493		)
Adjusted operating expenses	227,189			15,998			—			211,191			194,903			9,623			—			(1,749		)	183,531
Net operating income	$	141,490		$	14,213		$	—		$	127,277		$	155,316		$	9,208		$	—		$	1,808		$	147,916
Interest expense	(47,752		)	(7,263		)	(25,182		)	(65,671		)	(57,153		)	(5,848		)	(27,905		)	(55		)	(79,265		)
Interest expense of unconsolidated entities	(25,182		)	—			25,182			—			(27,905		)	—			27,905			—			—
Loss on extinguishment of debt	(3,190		)	—			(383		)	(3,573		)	(714		)	—			(44		)	(431		)	(1,189		)
Loss on extinguishment of debt of unconsolidated entities	(383		)	—			383			—			(44		)	—			44			—			—
Equity in (earnings) loss of unconsolidated entities	(19,009		)	(99		)	19,421			511			(27,168		)	(98		)	27,719			—			649
Net loss on disposition of partial interest in development project	—			—			—			—			(19,590		)	(3,379		)	—			—			(16,211		)
Net gain on disposition of full or partial interests in rental properties	—			—			19,284			19,284			—			—			16,090			1,276			17,366
Gain on disposition of unconsolidated entities	19,284			—			(19,284		)	—			16,090			—			(16,090		)	—			—
Net gain on change in control of interests	487,684			—			—			487,684			—			—			—			—			—
Impairment of consolidated and unconsolidated real estate	—			—			—			—			(129,829		)	—			—			—			(129,829		)
Depreciation and amortization—Real Estate Groups (a)	(63,772		)	(7,585		)	(20,527		)	(76,714		)	(58,228		)	(4,747		)	(22,180		)	—			(75,661		)
Amortization of mortgage procurement costs	(1,862		)	(45		)	(791		)	(2,608		)	(1,768		)	(87		)	(788		)	—			(2,469		)
Depreciation and amortization of unconsolidated entities	(21,318		)	—			21,318			—			(22,968		)	—			22,968			—			—
Straight-line rent adjustment	307			—			—			307			861			—			—			(20		)	841
Earnings (loss) before income taxes	$	466,297		$	(779	)	$	19,421		$	486,497		$	(173,100	)	$	(4,951	)	$	27,719		$	2,578		$	(137,852	)
(a) Depreciation and amortization—Real Estate Groups	$	63,772		$	7,585		$	20,527		$	76,714		$	58,228		$	4,747		$	22,180		$	—		$	75,661
Depreciation and amortization—Non-Real Estate	1,230			—			—			1,230			1,090			—			—			—			1,090
Total depreciation and amortization	$	65,002		$	7,585		$	20,527		$	77,944		$	59,318		$	4,747		$	22,180		$	—		$	76,751

11

Reconciliation of Net Operating Income (non-GAAP) to Earnings (Loss) Before Income Taxes (GAAP)(in thousands) (continued)

	Six Months Ended June 30, 2015												Six Months Ended June 30, 2014
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			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)
Total revenues	$	496,841		$	56,732		$	204,585		$	644,694		$	479,174		$	43,107		$	220,942		$	7,029		$	664,038
Exclude straight-line adjustment	(1,247		)	—			—			(1,247		)	(4,388		)	—			—			79			(4,309		)
Add interest and other income	18,982			916			646			18,712			23,878			1,032			196			—			23,042
Equity in earnings (loss) of unconsolidated entities	28,322			82			(28,048		)	192			61,197			77			(63,171		)	—			(2,051		)
Exclude operating expenses of unconsolidated entities	90,848			—			(90,848		)	—			98,080			—			(98,080		)	—			—
Exclude write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			—			—			—			—			—
Exclude gain on disposition of unconsolidated entities	(19,284		)	—			19,284			—			(40,886		)	—			40,886			—			—
Exclude depreciation and amortization of unconsolidated entities	43,784			—			(43,784		)	—			44,572			—			(44,572		)	—			—
Exclude interest expense of unconsolidated entities	51,036			—			(51,036		)	—			55,905			—			(55,905		)	—			—
Exclude loss on extinguishment of debt of unconsolidated entities	608			—			(608		)	—			296			—			(296		)	—			—
Adjusted revenues	720,081			57,730			—			662,351			717,828			44,216			—			7,108			680,720
Operating expenses	327,483			30,739			90,848			387,592			316,910			24,823			98,080			3,014			393,181
Operating expenses of unconsolidated entities	90,848			—			(90,848		)	—			98,080			—			(98,080		)	—			—
Write-offs of abandoned development projects and demolition costs	5,778			—			10,191			15,969			933			—			—			—			933
Write-offs of abandoned development projects of unconsolidated entities	10,191			—			(10,191		)	—			—			—			—			—			—
Non-Real Estate depreciation and amortization	2,372			—			—			2,372			2,267			—			—			—			2,267
Exclude straight-line rent adjustment	(887		)	—			—			(887		)	(934		)	—			—			—			(934		)
Adjusted operating expenses	435,785			30,739			—			405,046			417,256			24,823			—			3,014			395,447
Net operating income	$	284,296		$	26,991		$	—		$	257,305		$	300,572		$	19,393		$	—		$	4,094		$	285,273
Interest expense	(100,328		)	(15,176		)	(51,036		)	(136,188		)	(119,605		)	(12,376		)	(55,905		)	(5,538		)	(168,672		)
Interest expense of unconsolidated entities	(51,036		)	—			51,036			—			(55,905		)	—			55,905			—			—
Loss on extinguishment of debt	(38,344		)	—			(608		)	(38,952		)	(878		)	—			(296		)	(448		)	(1,622		)
Loss on extinguishment of debt of unconsolidated entities	(608		)	—			608			—			(296		)	—			296			—			—
Equity in (earnings) loss of unconsolidated entities	(28,322		)	(82		)	28,048			(192		)	(61,197		)	(77		)	63,171			—			2,051
Net loss on disposition of partial interest in development project	—			—			—			—			(19,590		)	(3,379		)	—			—			(16,211		)
Net gain (loss) on disposition of full or partial interests in rental properties	—			—			19,284			19,284			(467		)	—			40,886			28,042			68,461
Gain on disposition of unconsolidated entities	19,284			—			(19,284		)	—			40,886			—			(40,886		)	—			—
Net gain on change in control of interests	487,684			—			—			487,684			2,759			—			—			—			2,759
Impairment of consolidated and unconsolidated real estate	—			—			—			—			(129,829		)	—			—			—			(129,829		)
Depreciation and amortization—Real Estate Groups (a)	(124,444		)	(15,146		)	(42,196		)	(151,494		)	(112,060		)	(9,362		)	(42,983		)	(986		)	(146,667		)
Amortization of mortgage procurement costs	(3,963		)	(144		)	(1,588		)	(5,407		)	(3,893		)	(250		)	(1,589		)	(41		)	(5,273		)
Depreciation and amortization of unconsolidated entities	(43,784		)	—			43,784			—			(44,572		)	—			44,572			—			—
Straight-line rent adjustment	360			—			—			360			3,454			—			—			(79		)	3,375
Earnings (loss) before income taxes	$	400,795		$	(3,557	)	$	28,048		$	432,400		$	(200,621	)	$	(6,051	)	$	63,171		$	25,044		$	(106,355	)
(a) Depreciation and amortization—Real Estate Groups	$	124,444		$	15,146		$	42,196		$	151,494		$	112,060		$	9,362		$	42,983		$	986		$	146,667
Depreciation and amortization—Non-Real Estate	2,372			—			—			2,372			2,267			—			—			—			2,267
Total depreciation and amortization	$	126,816		$	15,146		$	42,196		$	153,866		$	114,327		$	9,362		$	42,983		$	986		$	148,934

12

	Net Operating Income(in thousands)
	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014											% Change
	Full Consolidation (1)			Less Noncontrolling Interest			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (1)			Less Noncontrolling Interest			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (1)		Pro-Rata Consolidation (Non-GAAP)
Retail
Comparable
Adjusted revenues	$	76,233		$	—		$	76,233		$	72,808		$	—		$	—	$	72,808		4.7	%	4.7	%
Adjusted operating expenses	34,801			—			34,801			33,115			—			—		33,115			5.1	%	5.1	%
Comparable NOI	41,432			—			41,432			39,693			—			—		39,693			4.4	%	4.4	%
Non-Comparable NOI	3,492			—			3,492			3,846			—			1,808		5,654
Total	44,924			—			44,924			43,539			—			1,808		45,347
Office Buildings
Comparable
Adjusted revenues	106,661			4,900			101,761			101,388			4,325			—		97,063			5.2	%	4.8	%
Adjusted operating expenses	45,554			2,426			43,128			41,884			2,081			—		39,803			8.8	%	8.4	%
Comparable NOI	61,107			2,474			58,633			59,504			2,244			—		57,260			2.7	%	2.4	%
Non-Comparable NOI	920			84			836			(176		)	(40		)	—		(136		)
Total	62,027			2,558			59,469			59,328			2,204			—		57,124
Apartments
Comparable
Adjusted revenues	72,052			4,347			67,705			69,072			4,019			—		65,053			4.3	%	4.1	%
Adjusted operating expenses	30,240			1,653			28,587			29,456			1,573			—		27,883			2.7	%	2.5	%
Comparable NOI	41,812			2,694			39,118			39,616			2,446			—		37,170			5.5	%	5.2	%
Non-Comparable NOI	5,144			2,814			2,330			2,027			(1,688		)	—		3,715
Total	46,956			5,508			41,448			41,643			758			—		40,885
Arena	9,153			4,300			4,853			9,357			4,481			—		4,876
Subsidized Senior Housing	4,894			—			4,894			4,392			—			—		4,392
Military Housing	9,587			737			8,850			5,701			(6		)	—		5,707
Land sales	—			—			—			488			13			—		475
Write-offs of abandoned development projects and demolition costs	(15,969		)	—			(15,969		)	(933		)	—			—		(933		)
Other (2)	(10,991		)	(370		)	(10,621		)	(10,906		)	363			—		(11,269		)
Total Rental Properties
Comparable
Adjusted revenues	254,946			9,247			245,699			243,268			8,344			—		234,924			4.8	%	4.6	%
Adjusted operating expenses	110,595			4,079			106,516			104,455			3,654			—		100,801			5.9	%	5.7	%
Comparable NOI	144,351			5,168			139,183			138,813			4,690			—		134,123			4.0	%	3.8	%
Non-Comparable NOI	6,230			7,565			(1,335		)	13,796			3,123			1,808		12,481
Total	150,581			12,733			137,848			152,609			7,813			1,808		146,604
Land Development Group	14,310			1,480			12,830			13,635			1,395			—		12,240
Corporate Activities	(13,630		)	—			(13,630		)	(10,928		)	—			—		(10,928		)
Corporate Activities - REIT conversion and reorganization costs	(9,771		)	—			(9,771		)	—			—			—		—
Grand Total	$	141,490		$	14,213		$	127,277		$	155,316		$	9,208		$	1,808	$	147,916

(1) Includes the Company's pro-rata share of NOI from unconsolidated subsidiaries accounted for under the equity method of accounting.

(2) Includes non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income.

13

	Net Operating Income(in thousands)
	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014												% Change
	Full Consolidation (1)			Less Noncontrolling Interest			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (1)			Less Noncontrolling Interest			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (1)		Pro-Rata Consolidation (Non-GAAP)
Retail
Comparable
Adjusted revenues	$	151,450		$	—		$	151,450		$	146,085		$	—		$	—		$	146,085		3.7	%	3.7	%
Adjusted operating expenses	69,481			—			69,481			68,281			—			—			68,281			1.8	%	1.8	%
Comparable NOI	81,969			—			81,969			77,804			—			—			77,804			5.4	%	5.4	%
Non-Comparable NOI	7,306			—			7,306			6,886			—			3,678			10,564
Total	89,275			—			89,275			84,690			—			3,678			88,368
Office Buildings
Comparable
Adjusted revenues	210,118			9,552			200,566			201,582			9,013			—			192,569			4.2	%	4.2	%
Adjusted operating expenses	90,581			4,730			85,851			86,572			4,410			—			82,162			4.6	%	4.5	%
Comparable NOI	119,537			4,822			114,715			115,010			4,603			—			110,407			3.9	%	3.9	%
Non-Comparable NOI	2,974			258			2,716			(565		)	130			(43		)	(738		)
Total	122,511			5,080			117,431			114,445			4,733			(43		)	109,669
Apartments
Comparable
Adjusted revenues	142,874			8,600			134,274			137,254			7,939			—			129,315			4.1	%	3.8	%
Adjusted operating expenses	61,072			3,195			57,877			60,162			3,144			—			57,018			1.5	%	1.5	%
Comparable NOI	81,802			5,405			76,397			77,092			4,795			—			72,297			6.1	%	5.7	%
Non-Comparable NOI	10,660			6,420			4,240			3,874			(3,201		)	—			7,075
Total	92,462			11,825			80,637			80,966			1,594			—			79,372
Arena	17,987			8,334			9,653			21,221			9,928			—			11,293
Subsidized Senior Housing	8,713			—			8,713			7,956			—			—			7,956
Military Housing	14,948			732			14,216			10,680			47			—			10,633
Land sales	—			—			—			488			13			459			934
Write-offs of abandoned development projects and demolition costs	(15,969		)	—			(15,969		)	(933		)	—			—			(933		)
Other (2)	(26,522		)	(1,378		)	(25,144		)	(21,107		)	411			—			(21,518		)
Total Rental Properties
Comparable
Adjusted revenues	504,442			18,152			486,290			484,921			16,952			—			467,969			4.0	%	3.9	%
Adjusted operating expenses	221,134			7,925			213,209			215,015			7,554			—			207,461			2.8	%	2.8	%
Comparable NOI	283,308			10,227			273,081			269,906			9,398			—			260,508			5.0	%	4.8	%
Non-Comparable NOI	20,097			14,366			5,731			28,500			7,328			4,094			25,266
Total	303,405			24,593			278,812			298,406			16,726			4,094			285,774
Land Development Group	25,482			2,398			23,084			26,515			2,667			—			23,848
Corporate Activities	(28,608		)	—			(28,608		)	(24,349		)	—			—			(24,349		)
Corporate Activities - REIT conversion and reorganization costs	(15,983		)	—			(15,983		)	—			—			—			—
Grand Total	$	284,296		$	26,991		$	257,305		$	300,572		$	19,393		$	4,094		$	285,273

(1) Includes the Company's pro-rata share of NOI from unconsolidated subsidiaries accounted for under the equity method of accounting.

(2) Includes non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income and a 2014 legal settlement at Heritage, an apartment community in San Diego, California.

14