Forest City Enterprises, Inc.

Supplemental Package

Years Ended January 31, 2006 and 2005

Forest City Enterprises, Inc. and Subsidiaries

Years Ended January 31, 2006 and 2005

Supplemental Package

NYSE: FCEA, FCEB

Index

Corporate Overview			2-3
Supplemental Operating Information
	Occupancy Data		4
	Comparable Net Operating Income (NOI)		5
	Comparable NOI Detail		6-7
	Reconciliation of NOI to Net Earnings		8-9
	Lease Expirations Schedules		10-11
	Schedules of Significant Tenants		12-13
	Development Pipeline		14-16
Supplemental Financial Information
	Mortgage Financings		17
	Scheduled Maturities Table		18-19
	Forest City Enterprises, Inc.
		Consolidated Balance Sheet Information	20-21
		Consolidated Earnings Information	22-23
		Investments in and Advances to Affiliates	24-25
		Real Estate and Related Nonrecourse Mortgage Debt	26-27
	Forest City Rental Properties Corporation
		Consolidated Balance Sheet Information	28-29
		Consolidated Earnings Information	30-31
		Real Estate Activity	32-35
	Results of Operations Summary		36-38
	Reconciliation of Net Earnings to EBDT		39-40
	Summary of EBDT		41-54

This Supplemental Package, together with other statements and information publicly disseminated by the Company, 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 which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial or otherwise, may differ from the results discussed in the forward-looking statements. Risk factors discussed in Item 1A of the Company’s Form 10-K for the year ended January 31, 2006 and other factors that might cause differences, some of which could be material, include, but are not limited to, real estate development and investment risks including lack of satisfactory financing, construction and lease-up delays and cost overruns, the effect of economic and market conditions on a nationwide basis as well as regionally in areas where the Company has a geographic concentration of properties, reliance on major tenants, the impact of terrorist acts, the Company’s substantial leverage and the ability to obtain and service debt, guarantees under the Company’s credit facility, the level and volatility of interest rates, continued availability of tax-exempt government financing, the sustainability of substantial operations at the subsidiary level, illiquidity of real estate investments, dependence on rental income from real property, conflicts of interest, financial stability of tenants within the retail industry which may be impacted by competition and consumer spending, potential liability from syndicated properties, effects of uninsured loss, environmental liabilities, partnership risks, litigation risks, risks associated with an investment in a professional sports franchise, the rate revenue increases versus the rate of expense increases, as well as other risks listed from time to time in the Company’s reports filed with the United States Securities and Exchange Commission. The Company has no obligation to revise or update any forward-looking statements, other than imposed by law, as a result of future events or new information. Readers are cautioned not to place undue reliance on such forward-looking statements.

1

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Corporate Overview

We principally engage in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. We operate through three strategic business units. The Commercial Group, our largest business unit, owns, develops, acquires and operates regional malls, specialty/urban retail centers, office and life science buildings, hotels and mixed-use projects. The Residential Group owns, develops, acquires and operates residential rental property, including upscale and middle-market apartments, adaptive re-use developments and supported-living communities. Additionally, the Residential Group develops for-sale condominium projects and also owns, develops and manages military family housing. New York City operations through our partnership with Forest City Ratner Companies are part of the Commercial Group or Residential Group depending on the nature of the operations. Real Estate Groups are the combined Commercial and Residential Groups. The Land Development Group acquires and sells both land and developed lots to residential, commercial and industrial customers. It also owns and develops land into master-planned communities and mixed-use projects. The Nets, a franchise of the National Basketball Association (“NBA”) in which we account for our investment on the equity method of accounting, is a reportable segment of the Company.

We have approximately $8.0 billion of assets in 25 states and the District of Columbia at January 31, 2006. Our core markets include New York City/ Philadelphia metropolitan area, Denver, Boston, Greater Washington D.C./ Baltimore metropolitan area, Chicago and California. As a result of an ongoing effort to increase property concentration in the core markets, these markets now account for approximately 74 percent of the cost of our real estate portfolio at January 31, 2006. We have offices in Boston, Chicago, Denver, Los Angeles, New York City, San Francisco, Washington, D.C. and our corporate headquarters are in Cleveland, Ohio.

SUPPLEMENTAL FINANCIAL AND OPERATING INFORMATION

This supplemental package contains certain measures prepared in accordance with the generally accepted accounting principles (“GAAP”) under the full consolidation accounting method, and certain measures prepared under the pro-rata consolidation method, a non-GAAP measure. Along with net earnings, we use an additional measure, Earnings before Depreciation, Amortization and Deferred Taxes (“EBDT”), to report operating results. EBDT is a non-GAAP measure and may not be directly comparable to similarly-titled measures reported by other companies. The financial measures presented under the pro-rata consolidation method, comparable net operating income (“NOI”) and EBDT, provide supplemental information about our operations. Although these measures are not presented in accordance with GAAP, we believe they are necessary to understand our business and operating results, along with net earnings and other GAAP measures. Our investors can use these non-GAAP measures as supplementary information to evaluate our business. Our non-GAAP measures are not intended to be performance measures that should be regarded as alternatives to or more meaningful than, our GAAP measures.

Consolidation Methods

We present certain financial amounts under the pro-rata consolidation method because we believe this information is useful to investors as this method reflects the manner in which we operate our business. In line with industry practice, we have made a large number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. Under the pro-rata consolidation method, we generally present our investments proportionate to our economic share of ownership. Under GAAP, the full consolidation method is used to report partnership assets and liabilities consolidated at 100% if deemed to be under our control or if we are deemed to be the primary beneficiary of the variable interest entity (“VIE”), even if our ownership is not 100%. We provide reconciliations from the full consolidation method to the pro-rata consolidation method throughout our supplemental package. Please refer to our property listing for the detail of our consolidated and non-consolidated properties in our Form 10-K for the year ended January 31, 2006 on pages 15-26.

EBDT

We believe that EBDT, along with net earnings, provides additional information about our core operations. While property dispositions, acquisitions or other factors can affect net earnings in the short-term, we believe EBDT presents a more consistent view of the overall financial performance of our business from period-to-period. EBDT is used by the chief operating decision maker and management to assess performance and resource allocations by strategic business unit and on a consolidated basis. EBDT is similar to Funds From Operations (“FFO”), a measure of performance used by publicly traded Real Estate Investment Trusts (“REIT”), but may not be directly comparable to similarly titled measures reported by other companies. (See pages 37-40 for additional discussion of EBDT as well as a reconciliation of EBDT to net earnings.)

Supplemental Operating Information

The operating information contained in this document includes: occupancy data, comparable NOI, reconciliation of NOI to net earnings, retail and office lease expirations, significant retail and office tenant listings, and our development pipeline. We believe this information will give interested parties a better understanding and more information about the operating performance of our Company.

2

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

The term “comparable,” which is used throughout this document, is generally defined as including properties that were open and operated in both the fiscal years ended January 31, 2006 and 2005.

We believe occupancy rates, retail and office lease expirations, base rent, and significant retail and office tenant listings represent meaningful operating statistics about our Company. This information will give interested parties a better understanding and more information about the operating performance of our Company.

Comparable NOI is useful because it measures the performance of the same properties on a period-to-period basis and, along with EBDT (as discussed beginning on pages 37-38), is used to assess operating performance and resource allocation of our strategic business units. While property dispositions, acquisitions or other factors can impact net earnings in the short term, we believe comparable NOI gives a more consistent view of our overall performance from quarter-to-quarter and year-to-year. A reconciliation of net earnings, the most comparable financial measure calculated in accordance with GAAP, to NOI and reconciliation from NOI to comparable NOI are provided on pages 6-9 of this document. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 41-54.

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 for the fiscal year ended January 31, 2006 as filed with the Securities and Exchange Commission can be found on our website or may be obtained without charge upon written request to:

Thomas T. Kmiecik

Assistant Treasurer

tomkmiecik@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

Thomas G. Smith

Executive Vice President,

Chief Financial Officer and Secretary

Transfer Agent and Registrar

National City Bank

Stock Transfer Department

P.O. Box 92301

Cleveland, OH 44193-0900

(800) 622-6757

www.shareholder.inquiries@nationalcity.com

Stock Exchange Listing

NYSE: FCEA and FCEB

Dividend Reinvestment and Stock Purchase Plan

The Company offers its stockholders the opportunity to purchase additional shares of common stock through the Forest City Enterprises, Inc. Dividend Reinvestment and Stock Purchase Plan (the “Plan”) at 97% of current market value. A copy of the Plan prospectus and an enrollment card may be obtained by contacting National City Bank at (800) 622-6757.

3

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Occupancy Data – January 31, 2006 and 2005

We analyze our occupancy percentages by each of our major product lines as follows:

				Average				Average
		Occupancy		Occupancy		Occupancy		Occupancy
		As of		Year-to-Date		As of		Year-to-Date
		January 31, 2006		January 31, 2006		January 31, 2005		January 31, 2005
Retail
	Comparable		94.7%		93.6%		92.5%		92.3%
	Total		94.0%		93.1%		92.2%		91.9%
Office
	Comparable		92.5%		92.8%		93.1%		93.6%
	Total		92.6%		92.9%		93.1%		92.7%
Residential
	Comparable		94.3%		93.4%		92.5%		92.6%
	Total		91.6%		89.2%		92.1%		90.7%
Hotels
	Comparable and Total				74.6%				75.4%
	ADR			$	186.37			$	166.34

Retail and office occupancy as of January 31, 2006 and 2005 is based on square feet leased at the end of the fiscal year. Average Occupancy Year-to-Date as of January 31, 2006 and 2005 for retail and office is calculated by dividing the sum of leased square feet at the beginning and end of the period by two. Residential occupancy as of January 31, 2006 and 2005 represents total units occupied divided by total units available. Average residential occupancy year-to-date for 2006 and 2005 is calculated by dividing gross potential rent less vacancy by gross potential rent. Average Daily Rate (“ADR”) is calculated by dividing revenue by the number of rooms sold for the years ended January 31, 2006 and 2005.

4

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

We use NOI, along with EBDT as discussed on pages 2-3, to assess operating performance. Comparable NOI is defined as NOI from properties opened and operated a full year in both 2005 and 2004. The schedules on pages 6-7 present comparable NOI for each of our major product lines, as well as each strategic business unit under which those product lines operate. A reconciliation of NOI to the most comparable GAAP measure, net earnings, is presented on pages 8-9. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 41-54.

Comparable Net Operating Income (NOI) (% change over same period, prior year)

	Three Months Ended January 31, 2006						Year Ended January 31, 2006
	Full			Pro-Rata			Full			Pro-Rata
	Consolidation			Consolidation			Consolidation			Consolidation
Retail		6.6	%		6.3	%		4.2	%		3.6	%
Office		(0.7	)%		(1.1	)%		(0.5	)%		(0.9	)%
Hotel		12.3	%		3.5	%		23.7	%		13.1	%
Residential		3.4	%		5.1	%		5.3	%		4.6	%
Total		3.5	%		3.2	%		4.0	%		2.9	%

5

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income (dollars in thousands)

				Three Months Ended January 31, 2006														Three Months Ended January 31, 2005															% Change
										Plus														Plus
				Full			Less			Unconsolidated			Plus		Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata			Full			Pro-Rata
				Consolidation			Minority			Investments at			Discontinued		Consolidation			Consolidation			Minority			Investments at			Discontinued			Consolidation			Consolidation			Consolidation
				(GAAP)			Interest			Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)			(GAAP)			(Non-GAAP)
Commercial Group
	Retail
		Comparable		$	40,942		$	4,952		$	3,001		$	—	$	38,991		$	38,423		$	4,647		$	2,908		$	—		$	36,684			6.6	%		6.3	%
		Total			53,481			6,605			3,007			—		49,883			47,781			5,652			3,193			(50	)		45,272
	Office Buildings
		Comparable			42,829			5,473			1,061			—		38,417			43,118			5,743			1,488			—			38,863			(0.7	)%		(1.1	)%
		Total			41,950			5,118			1,061			—		37,893			43,851			5,969			1,488			(61	)		39,309
	Hotels
		Comparable			8,017			2,474			467			—		6,010			7,136			1,941			611			—			5,806			12.3	%		3.5	%
		Total			4,367			585			467			2,513		6,762			4,405			(68	)		611			2,712			7,796
	Earnings from Commercial Land Sales				30,241			16,285			—			—		13,956			1,108			—			—			—			1,108
	Development Fees				2,897			1,159			—			—		1,738			13,559			5,425			—			—			8,134
	Other				(3,540	)		(1,215	)		(321	)		—		(2,646	)		(11,073	)		(803	)		28			—			(10,242	)
Total Commercial Group
		Comparable			91,788			12,899			4,529			—		83,418			88,677			12,331			5,007			—			81,353			3.5	%		2.5	%
			Total		129,396			28,537			4,214			2,513		107,586			99,631			16,175			5,320			2,601			91,377
Residential Group Apartments
		Comparable			24,828			935			7,119			—		31,012			24,003			936			6,436			—			29,503			3.4	%		5.1	%
		Total			23,423			1,443			8,492			313		30,785			24,101			1,029			7,437			1,556			32,065
Total Real Estate Groups
		Comparable			116,616			13,834			11,648			—		114,430			112,680			13,267			11,443			—			110,856			3.5	%		3.2	%
		Total			152,819			29,980			12,706			2,826		138,371			123,732			17,204			12,757			4,157			123,442
Land Development Group					32,184			2,128			162			—		30,218			14,071			1,486			(123	)		—			12,462
The Nets					(7,537	)		—			1,000			—		(6,537	)		(9,259	)		—			362			—			(8,897	)
Corporate Activities					(10,469	)		—			—			—		(10,469	)		(11,236	)		—			—			—			(11,236	)
Grand Total				$	166,997		$	32,108		$	13,868		$	2,826	$	151,583		$	117,308		$	18,690		$	12,996		$	4,157		$	115,771

6

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income (dollars in thousands)

			Year Ended January 31, 2006													Year Ended January 31, 2005												% Change
								Plus													Plus
			Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Pro-Rata
			Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Consolidation
			(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			(Non-GAAP)
Commercial Group
	Retail
		Comparable	$	154,675		$	18,787	$	11,812		$	—	$	147,700		$	148,476		$	17,694	$	11,729	$	—	$	142,511			4.2	%		3.6	%
		Total		185,666			16,353		11,950			—		181,263			164,632			15,558		13,397		1,214		163,685
	Office Buildings
		Comparable		161,624			21,207		4,025			—		144,442			162,419			21,422		4,700		—		145,697			(0.5	)%		(0.9	)%
		Total		170,424			21,475		4,025			—		152,974			162,699			22,761		4,700		2,165		146,803
	Hotels
		Comparable		34,858			9,651		1,899			—		27,106			28,183			6,690		2,473		—		23,966			23.7	%		13.1	%
		Total		21,503			839		1,899			11,825		34,388			19,274			512		2,473		8,692		29,927
	Earnings from Commercial Land Sales			67,989			18,389		—			—		49,600			1,599			—		—		—		1,599
	Development Fees			10,614			4,247		—			—		6,367			33,205			13,286		—		—		19,919
	Other			(9,411	)		5,610		(214	)		—		(15,235	)		(9,798	)		3,999		164		—		(13,633	)
Total Commercial Group
		Comparable		351,157			49,645		17,736			—		319,248			339,078			45,806		18,902		—		312,174			3.6	%		2.3	%
		Total		446,785			66,913		17,660			11,825		409,357			371,611			56,116		20,734		12,071		348,300
Residential Group
	Apartments
		Comparable		100,461			4,006		26,835			—		123,290			95,374			3,862		26,334		—		117,846			5.3	%		4.6	%
		Total		95,838			5,061		31,584			5,298		127,659			95,447			4,315		28,918		11,568		131,618
Total Real Estate Groups
		Comparable		451,618			53,651		44,571			—		442,538			434,452			49,668		45,236		—		430,020			4.0	%		2.9	%
		Total		542,623			71,974		49,244			17,123		537,016			467,058			60,431		49,652		23,639		479,918
Land Development Group				102,002			5,704		353			—		96,651			88,141			6,460		548		—		82,229
The Nets				(24,534	)		—		2,992			—		(21,542	)		(10,889	)		—		518		—		(10,371	)
Corporate Activities				(36,192	)		—		—			—		(36,192	)		(34,690	)		—		—		—		(34,690	)
Grand Total			$	583,899		$	77,678	$	52,589		$	17,123	$	575,933		$	509,620		$	66,891	$	50,718	$	23,639	$	517,086

7

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Reconciliation of Net Operating Income (non-GAAP) to Net Earnings (GAAP) (in thousands):

			Three Months Ended January 31, 2006															Three Months Ended January 31, 2005
									Plus															Plus
			Full			Less			Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
			Consolidation			Minority			Investments			Discontinued			Consolidation			Consolidation			Minority			Investments			Discontinued			Consolidation
			(GAAP)			Interest			at Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			at Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations			$	332,756		$	48,949		$	86,592		$	10,518		$	380,917		$	272,132		$	35,600		$	60,290		$	14,672		$	311,494
Exclude straight- line rent adjustment (1)				(6,403	)		—			—			—			(6,403	)		(2,696	)		—			—			—			(2,696	)
Adjusted revenues				326,353			48,949			86,592			10,518			374,514			269,436			35,600			60,290			14,672			308,798
Operating expenses				186,451			17,824			52,252			8,151			229,030			163,014			17,449			37,801			11,073			194,439
Add back depreciation and amortization for non- Real Estate Groups (b)				368			—			3,228			—			3,596			217			—			3,687			—			3,904
Add back amortization of mortgage procurement costs for non-Real Estate Groups(d)				83			—			1,582			—			1,665			103			—			147			—			250
Exclude straight- line rent adjustment (2)				(1,605	)		—			—			(321	)		(1,926	)		(1,617	)		—			—			(443	)		(2,060	)
Adjusted operating expenses				185,297			17,824			57,062			7,830			232,365			161,717			17,449			41,635			10,630			196,533
Add interest income				9,351			983			713			138			9,219			8,484			539			434			115			8,494
Add equity in earnings of unconsolidated entities				9,172			—			(8,957	)		—			215			(6,279	)		—			1,291			—			(4,988	)
Add back equity method depreciation and amortization expense (see below)				7,418			—			(7,418	)		—			—			7,384			—			(7,384	)		—			—
Net Operating Income				166,997			32,108			13,868			2,826			151,583			117,308			18,690			12,996			4,157			115,771
Interest expense, including early extinguishment of debt				(75,228	)		(6,262	)		(13,868	)		(4,240	)		(87,074	)		(67,269	)		(8,096	)		(12,996	)		(5,673	)		(77,842	)
Gain on disposition of rental properties and other investments				(100	)		—			—			33,722			33,622			438			—			—			15,608			16,046
Provision for decline in real estate				(1,774	)		(26	)		—			—			(1,748	)		—			—			—			—			—
Depreciation and amortization — Real Estate Groups(a)				(48,632	)		(2,432	)		(7,080	)		(922	)		(54,202	)		(45,722	)		(4,365	)		(7,165	)		(2,401	)		(50,923	)
Amortization of mortgage procurement costs — Real Estate Groups(c)				(2,728	)		(207	)		(338	)		(60	)		(2,919	)		(3,136	)		(1,070	)		(219	)		(130	)		(2,415	)
Straight-line rent adjustment(1) +(2)				4,798			—			—			(321	)		4,477			1,079			—			—			(443	)		636
Equity method depreciation and amortization expense (see above)				(7,418	)		—			7,418			—			—			(7,384	)		—			7,384			—			—
Earnings before income taxes				35,915			23,181			—			31,005			43,739			(4,686	)		5,159			—			11,118			1,273
Income tax provision				(3,523	)		—			—			(11,981	)		(15,504	)		(1,916	)		—			—			(4,460	)		(6,376	)
Earnings before minority interest and discontinued operations				32,392			23,181			—			19,024			28,235			(6,602	)		5,159			—			6,658			(5,103	)
Minority Interest				(23,181	)		(23,181	)		—			—			—			(5,159	)		(5,159	)		—			—			—
Earnings from continuing operations				9,211			—			—			19,024			28,235			(11,761	)		—			—			6,658			(5,103	)
Discontinued operations, net of tax and minority interest:
	Operating earnings from Lumber Group			—			—			—			—			—			(1,219	)		—			—			—			(1,219	)
	Operating loss from rental properties			(1,667	)		—			—			1,667			—			(2,778	)		—			—			2,778			—
	Loss on disposition of division of Lumber Group			—			—			—			—			—			12,162			—			—			—			12,162
	Gain on disposition of rental properties			20,691			—			—			(20,691	)		—			9,436			—			—			(9,436	)		—
				19,024			—			—			(19,024	)		—			17,601			—			—			(6,658	)		10,943
Net earnings			$	28,235		$	—		$	—		$	—		$	28,235		$	5,840		$	—		$	—		$	—		$	5,840
(a) Depreciation and amortization — Real Estate Groups			$	48,632		$	2,432		$	7,080		$	922		$	54,202		$	45,722		$	4,365		$	7,165		$	2,401		$	50,923
(b) Depreciation and amortization — Non-Real Estate Groups				368			—			3,228			—			3,596			217			—			3,687			—			3,904
		Total depreciation and amortization	$	49,000		$	2,432		$	10,308		$	922		$	57,798		$	45,939		$	4,365		$	10,852		$	2,401		$	54,827
(c) Amortization of mortgage procurement costs — Real Estate Groups			$	2,728		$	207		$	338		$	60		$	2,919		$	3,136		$	1,070		$	219		$	130		$	2,415
(d) Amortization of mortgage procurement costs — Non-Real Estate Groups				83			—			1,582			—			1,665			103			—			147			—			250
		Total amortization of mortgage procurement costs	$	2,811		$	207		$	1,920		$	60		$	4,584		$	3,239		$	1,070		$	366		$	130		$	2,665

8

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Reconciliation of Net Operating Income (non-GAAP) to Net Earnings (GAAP) (in thousands):

		Year Ended January 31, 2006															Year Ended January 31, 2005
								Plus															Plus
		Full			Less			Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
		Consolidation			Minority			Investments at			Discontinued			Consolidation			Consolidation			Minority			Investments at			Discontinued			Consolidation
		(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations		$	1,200,775		$	140,603		$	318,282		$	54,649		$	1,433,103		$	986,054		$	133,886		$	260,844		$	63,015		$	1,176,027
Exclude straight- line rent adjustment (1)			(18,392	)		—			—			—			(18,392	)		(12,748	)		—			—			(849	)		(13,597	)
Adjusted revenues			1,182,383			140,603			318,282			54,649			1,414,711			973,306			133,886			260,844			62,166			1,162,430
Operating expenses			694,296			65,591			194,900			39,382			862,987			567,276			71,239			155,898			40,338			692,273
Add back depreciation and amortization for non- Real Estate Groups (b)			1,104			—			13,086			—			14,190			1,086			—			3,764			—			4,850
Add back amortization of mortgage procurement costs for non-Real Estate Groups(d)			369			—			2,035			—			2,404			243			—			413			—			656
Exclude straight- line rent adjustment (2)			(6,159	)		—			—			(1,573	)		(7,732	)		(8,757	)		—			—			(1,558	)		(10,315	)
Adjusted operating expenses			689,610			65,591			210,021			37,809			871,849			559,848			71,239			160,075			38,780			687,464
Add interest income			28,095			2,666			1,218			283			26,930			45,302			4,244			550			253			41,861
Add equity in earnings of unconsolidated entities			55,201			—			(49,060	)		—			6,141			54,392			—			(54,370	)		—			22
Remove gain on disposition recorded on equity method			(21,023	)		—			21,023			—			—			(31,996	)		—			31,996			—			—
Add back provision for decline recorded on equity method			704			—			(704	)		—			—			—			—			—			—			—
Add back equity method depreciation and amortization expense (see below)			28,149			—			(28,149	)		—			—			28,464			—			(28,227	)		—			237
Net Operating Income			583,899			77,678			52,589			17,123			575,933			509,620			66,891			50,718			23,639			517,086
Interest expense, including early extinguishment of debt			(280,530	)		(29,115	)		(52,589	)		(14,814	)		(318,818	)		(243,316	)		(28,035	)		(50,718	)		(18,990	)		(284,989	)
Gain on disposition of equity method rental properties (e)			21,023			—			—			—			21,023			31,996			—			—			—			31,996
Gain on disposition of rental properties and other investments			506			—			—			43,198			43,704			438			—			—			67,645			68,083
Provision for decline in real estate			(7,874	)		(1,432	)		—			—			(6,442	)		—			—			—			—			—
Provision for decline in real estate of equity method rental properties			(704	)		—			—			—			(704	)		—			—			—			—			—
Depreciation and amortization — Real Estate Groups(a)			(173,688	)		(14,355	)		(26,905	)		(6,477	)		(192,715	)		(151,999	)		(10,870	)		(27,163	)		(10,680	)		(178,972	)
Amortization of mortgage procurement costs — Real Estate Groups(c)			(12,178	)		(2,280	)		(1,244	)		(436	)		(11,578	)		(13,184	)		(2,825	)		(1,064	)		(677	)		(12,100	)
Straight-line rent adjustment(1) +(2)			12,233			—			—			(1,573	)		10,660			3,991			—			—			(709	)		3,282
Equity method depreciation and amortization expense (see above)			(28,149	)		—			28,149			—			—			(28,464	)		—			28,227			—			(237	)
Earnings before income taxes			114,538			30,496			—			37,021			121,063			109,082			25,161			—			60,228			144,149
Income tax provision			(23,238	)		—			—			(14,306	)		(37,544	)		(39,913	)		—			—			(23,815	)		(63,728	)
Earnings before minority interest, discontinued operations and cumulative effect of change in accounting principle			91,300			30,496			—			22,715			83,519			69,169			25,161			—			36,413			80,421
Minority Interest			(30,496	)		(30,496	)		—			—			—			(25,161	)		(25,161	)		—			—			—
Earnings from continuing operations			60,804			—			—			22,715			83,519			44,008			—			—			36,413			80,421
Discontinued operations, net of tax and minority interest:
	Operating earnings from Lumber Group		—			—			—			—			—			4,545			—			—			—			4,545
	Operating earnings (loss) from rental properties		(3,790	)		—			—			3,790			—			(4,480	)		—			—			4,480			—
	Loss on disposition of division of Lumber Group		—			—			—			—			—			11,501			—			—			—			11,501
	Gain on disposition of rental properties		26,505			—			—			(26,505	)		—			40,893			—			—			(40,893	)		—
			22,715			—			—			(22,715	)		—			52,459			—			—			(36,413	)		16,046
Cumulative effect of change in accounting principle, net of tax			—			—			—			—			—			(11,261	)		—			—			—			(11,261	)
Net earnings		$	83,519		$	—		$	—		$	—		$	83,519		$	85,206		$	—		$	—		$	—		$	85,206
(a) Depreciation and amortization — Real Estate Groups		$	173,688		$	14,355		$	26,905		$	6,477		$	192,715		$	151,999		$	10,870		$	27,163		$	10,680		$	178,972
(b) Depreciation and amortization — Non-Real Estate Groups			1,104			—			13,086			—			14,190			1,086			—			3,764			—			4,850
Total depreciation and amortization		$	174,792		$	14,355		$	39,991		$	6,477		$	206,905		$	153,085		$	10,870		$	30,927		$	10,680		$	183,822
(c) Amortization of mortgage procurement costs — Real Estate Groups		$	12,178		$	2,280		$	1,244		$	436		$	11,578		$	13,184		$	2,825		$	1,064		$	677		$	12,100
(d)Amortization of mortgage procurement costs — Non-Real Estate Groups			369			—			2,035			—			2,404			243			—			413			—			656
Total amortization of mortgage procurement costs		$	12,547		$	2,280		$	3,279		$	436		$	13,982		$	13,427		$	2,825		$	1,477		$	677		$	12,756
(e) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 and therefore are reported in continuing operations when sold. For the year ended January 31, 2006, three equity method investments were sold including Showcase, Colony Place, and Flower Park Plaza, resulting in a pre-tax gain on disposition of $21,023. For the year ended January 31, 2005, three equity method investments were sold including Chapel Hill Mall, Manhattan Town Center Mall, and Chapel Hill Suburban, resulting in a pre-tax gain of $31,996 which is included in Equity in Earnings of Unconsolidated Entities in the Company’s Consolidated Statement of Earnings.

9

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Retail Lease Expirations as of January 31, 2006

														AVERAGE
														BASE
		NUMBER		SQUARE FEET		PERCENTAGE			NET		PERCENTAGE			RENT PER
EXPIRATION		OF EXPIRING		OF EXPIRING		OF TOTAL			BASE RENT		OF TOTAL			SQUARE FEET
YEAR		LEASES		LEASES(3)		LEASED GLA(1)			EXPIRING(2)		BASE RENT			EXPIRING(3)
2006			212		531,446		5.10	%	$	10,874,589		5.72	%	$	27.00
2007			179		617,882		5.93			9,488,187		4.99			21.21
2008			177		612,860		5.88			10,883,186		5.72			24.06
2009			228		792,345		7.60			12,879,694		6.77			23.06
2010			194		602,771		5.78			12,386,467		6.51			26.18
2011			241		1,039,781		9.98			24,527,308		12.90			28.59
2012			126		681,380		6.54			14,074,899		7.40			25.69
2013			139		589,145		5.66			14,958,286		7.87			28.41
2014			157		678,516		6.51			12,664,460		6.66			27.47
2015			166		805,577		7.73			18,489,680		9.72			26.81
	Thereafter		101		3,468,909		33.29			48,944,388		25.74			18.34
	Total		1,920		10,420,612		100.00	%	$	190,171,144		100.00	%	$	23.42

(1)	GLA = Gross Leasable Area.
(2)	Net base rent expiring is an operating statistic and is not comparable to rental revenue, a GAAP financial measure. The primary differences arise because net base rent is determined using the tenant’s contractual rental agreements at the Company’s ownership share of the base rental income from expiring leases as determined within the rent agreement and it does not include adjustments such as the impact of straight-line rent and contingent rental payments, which are not reasonably estimatable.
(3)	Square feet of expiring leases and average base rent per square feet are operating statistics that represent 100% of the square footage and base rental income per square foot from expiring leases.

10

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Office Lease Expirations as of January 31, 2006

														AVERAGE
														BASE
		NUMBER		SQUARE FEET		PERCENTAGE			NET		PERCENTAGE			RENT PER
EXPIRATION		OF EXPIRING		OF EXPIRING		OF TOTAL			BASE RENT		OF TOTAL			SQUARE FEET
YEAR		LEASES		LEASES(3)		LEASED GLA(1)			EXPIRING(2)		BASE RENT			EXPIRING(3)
2006			56		541,591		6.34	%	$	9,059,447		4.72	%	$	24.40
2007			55		399,450		4.68			6,817,429		3.55			22.93
2008			64		521,295		6.11			9,568,004		4.98			22.07
2009			44		384,482		4.50			7,967,033		4.15			25.40
2010			42		1,031,295		12.08			15,788,606		8.22			24.26
2011			13		348,254		4.08			9,573,866		4.98			31.48
2012			14		702,542		8.23			19,586,393		10.20			31.59
2013			17		695,574		8.15			14,514,877		7.56			24.90
2014			9		582,721		6.83			12,687,700		6.61			28.45
2015			4		94,767		1.11			2,363,823		1.23			25.74
	Thereafter		32		3,235,023		37.89			84,115,572		43.80			30.65
	Total		350		8,536,994		100.00	%	$	192,042,750		100.00	%	$	27.80

(1)	GLA = Gross Leasable Area.
(2)	Net base rent expiring is an operating statistic and is not comparable to rental revenue, a GAAP financial measure. The primary differences arise because net base rent is determined using the tenant’s contractual rental agreements at the Company’s ownership share of the base rental income from expiring leases as determined within the rent agreement and it does not include adjustments such as the impact of straight-line rent and contingent rental payments, which are not reasonably estimatable.
(3)	Square feet of expiring leases and average base rent per square feet are operating statistics that represent 100% of the square footage and base rental income per square foot from expiring leases.

11

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Significant Retail Tenants as of January 31, 2006

(Based on net base rent 1% or greater of the Company’s ownership share)

					PERCENTAGE
	NUMBER		LEASED		OF TOTAL
	OF		SQUARE		RETAIL
TENANT	LEASES		FEET		SQUARE FEET
Regal Entertainment Group		6		451,072		4.33	%
AMC Entertainment, Inc.		4		325,563		3.12
The Gap		23		289,509		2.78
The Home Depot		2		282,000		2.71
TJX Companies		8		272,554		2.61
The Limited		37		231,126		2.22
Dick’s Sporting Goods		3		226,408		2.17
Circuit City Stores, Inc		6		199,107		1.91
Lowe’s Home Center, Inc.		1		151,273		1.45
Abercrombie & Fitch Stores, Inc.		21		142,266		1.37
Footlocker, Inc.		36		127,633		1.22
Pathmark Stores, Inc.		2		123,500		1.19
Ahold USA (Stop & Shop)		2		115,861		1.11
Subtotal		151		2,937,872		28.19
All Others		1,769		7,482,740		71.81
Total		1,920		10,420,612		100.00	%

12

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Significant Office Tenants as of January 31, 2006

(Based on net base rent 2% or greater of the Company’s ownership share)

			PERCENTAGE
			OF TOTAL
	LEASED		OFFICE
TENANT	SQUARE FEET		SQUARE FEET
City of New York		855,008		10.02	%
Millennium Pharmaceuticals, Inc.		725,833		8.50
U.S. Government		717,780		8.41
Morgan Stanley & Co.		444,685		5.21
Securities Industry Automation Corp.		428,786		5.02
Wellchoice, Inc.		392,514		4.60
Keyspan Energy		328,679		3.85
Bank of New York		317,572		3.72
Forest City Enterprises, Inc.(1)		288,531		3.38
Bear Stearns		275,244		3.22
Alkermes, Inc.		210,248		2.46
Partners Health Care System, Inc.		136,150		1.60
University of Pennsylvania		121,630		1.42
Subtotal		5,242,660		61.41
All Others		3,294,334		38.59
Total		8,536,994		100.00	%

(1)  All intercompany rental income is eliminated in consolidation.

13

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Development Pipeline

January 31, 2006

2005 Openings and Acquisitions(11)

																	Cost at FCE
							FCE Legal			Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share
			Dev.(D)		Date Opened/		Ownership%(i)			FCE%(i)			Consolidation		at 100%		(Non-GAAP)(b)
Property	Location		Acq.(A)		Acquired		(1)			(2)			(GAAP)(a)		(3)		(2)X(3)		Sq. Ft./No. of Units
													(in millions)
Retail Centers:
Saddle Rock Village		Aurora, CO		D		Q1-05/Q3-06		80.0	%		100.0	%	$	33.8	$	33.8	$	33.8		354,000
Short Pump Town Center Expansion		Richmond, VA		D		Q3-05		50.0	%		100.0	%		27.9		27.9		27.9		88,000
Simi Valley Town Center		Simi Valley, CA		D		Q3-05		85.0	%		100.0	%		147.8		147.8		147.8		660,000
Northfield at Stapleton Phase I(l)		Denver, CO		D		Q4-05		95.0	%		97.4	%		35.3		35.3		34.4		400,000
													$	244.8	$	244.8	$	243.9		1,502,000
Office:
Ballston Common Office Center		Arlington, VA		A		Q2-05		50.0	%		100.0	%	$	63.0	$	63.0	$	63.0		176,000
Residential:
23 Sidney Street		Cambridge, MA		D		Q1-05		100.0	%		100.0	%	$	18.0	$	18.0	$	18.0		51
Metro 417		Los Angeles, CA		D		Q2-05		75.0	%		100.0	%		78.5		78.5		78.5		277
100 Lansdowne Street		Cambridge, MA		D		Q3-05		100.0	%		100.0	%		65.9		65.9		65.9		203
Ashton Mill		Cumberland, RI		D		Q3-05		90.0	%		100.0	%		46.3		46.3		46.3		193
Sterling Glen of Lynbrook(g)		Lynbrook, NY		D		Q4-05		80.0	%		100.0	%		31.1		31.1		31.1		100
Met Lofts(c)		Los Angeles, CA		D		Q4-05		50.0	%		50.0	%		0.0		65.7		32.8		264
													$	239.8	$	305.5	$	272.6		1,088
Total 2005 Openings(d)													$	547.6	$	613.3	$	579.5

												Opened in ’05/ Total
Residential Phased-In Units(c)(e)
Newport Landing	Coventry, OH	D	2002-05	50.0	%	50.0	%	$	0.0	$	16.0	$	8.0	60/336
Arbor Glen	Twinsburg, OH	D	2004-07	50.0	%	50.0	%		0.0		18.4		9.2	48/288
Woodgate/Evergreen Farms	Olmsted Township, OH	D	2004-07	33.0	%	33.0	%		0.0		22.9		7.6	84/348
Pine Ridge Expansion	Willoughby Hills, OH	D	2005-06	50.0	%	50.0	%		0.0		15.2		7.6	69/162
Total(f)								$	0.0	$	72.5	$	32.4	261/1,134

See attached 2005 footnotes.

14

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Development Pipeline

January 31, 2006

Under Construction or to be acquired (17)

						FCE										Cost at FCE
						Legal			Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share
			Dev.(D)	Anticipated		Ownership%(i)			FCE %(i)			Consolidation		at 100%		(Non-GAAP)(b)		Sq. Ft./			Pre-Leased
Property	Location		Acq.(A)	Opening		(1)			(2)			(GAAP)(a)		(3)		(2)X(3)		No. of Units			%
												(in millions)
Retail Centers:
Northfield at Stapleton Phase II & III(l)		Denver, CO	D		Q1-06/Q3-06		95.0	%		97.4	%	$	142.5	$	142.5	$	138.8		723,000	(j)		49%
San Francisco Centre-Emporium(c)		San Francisco, CA	D		Q3-06		50.0	%		50.0	%		0.0		425.0		212.5		964,000	(k)		74%
San Francisco Centre(c)		San Francisco, CA	A		Q3-06		50.0	%		50.0	%		0.0		151.8		75.9		508,000			100%
Promenade Bolingbrook		Bolingbrook, IL	D		Q1-07		100.0	%		100.0	%		117.7		117.7		117.7		731,000	(j)		43%
												$	260.2	$	837.0	$	544.9		2,926,000
Office:
Advent Solar(c)		Albuquerque, NM	D		Q2-06		50.0	%		50.0	%	$	0.0	$	8.9	$	4.5		88,000			100%
Illinois Science and Technology Park		Skokie, IL	A/D		Q3-06		100.0	%		100.0	%		77.5		77.5		77.5		661,000			0%
Edgeworth Building		Richmond, VA	D		Q4-06		100.0	%		100.0	%		35.2		35.2		35.2		187,000			54%
Stapleton Medical Office Building		Denver, CO	D		Q4-06		90.0	%		90.0	%		11.0		11.0		9.9		45,000			44%
New York Times(c)		Manhattan, NY	D		Q2-07		28.0	%		40.0	%		0.0		415.0		166.0		734,000			0%
												$	123.7	$	547.6	$	293.1		1,715,000
Residential:
Sky55		Chicago, IL	D		Q1-06		100.0	%		100.0	%	$	110.7	$	110.7	$	110.7		411
1251 S. Michigan		Chicago, IL	D		Q1-06		100.0	%		100.0	%		12.0		12.0		12.0		91
Sterling Glen of Roslyn(g)		Roslyn, NY	D		Q2-06		40.0	%		100.0	%		74.9		74.9		74.9		158
Ohana Military Communities(c)(e)		Honolulu, HI	D		2005-2008		10.0	%		10.0	%		0.0		316.5		31.7		1,952
Dallas Mercantile		Dallas, TX	D		Q2-07/Q2-08		100.0	%		100.0	%		116.2		116.2		116.2		362	(n)
												$	313.8	$	630.3	$	345.5		2,974
																		Pre-Sold %
Condominiums:
1100 Wilshire(c)		Los Angeles, CA	D		Q2-06		50.0	%		50.0	%	$	0.0	$	115.9	$	58.0		228			90%
Cutters Ridge at Tobacco Row		Richmond, VA	D		Q3-06		100.0	%		100.0	%		4.5		4.5		4.5		12			0%
Mercury(c)(o)		Los Angeles, CA	D		Q1-07		50.0	%		50.0	%		0.0		138.0		69.0		238			0%
												$	4.5	$	258.4	$	131.5		478
Total Under Construction(h)												$	702.2	$	2,273.3	$	1,315.0
LESS: Above properties to be sold as condominiums													4.5		258.4		131.5
Under Construction less Condominiums												$	697.7	$	2,014.9	$	1,183.5

												Under Const./ Total
Residential Phased-In Units Under Construction:(c)(e)
Arbor Glen	Twinsburg, OH	D	2004-07	50.0	%	50.0	%	$	0.0	$	18.4	$	9.2	96/288
Woodgate/ Evergreen Farms	Olmsted Township, OH	D	2004-07	33.0	%	33.0	%		0.0		22.9		7.6	144/348
Pine Ridge Expansion	Willoughby Hills, OH	D	2005-06	50.0	%	50.0	%		0.0		15.2		7.6	93 /162
Cobblestone Court	Painesville, OH	D	2006-08	50.0	%	50.0	%		0.0		24.6		12.3	112/304
Total(m)								$	0.0	$	81.1	$	36.7	445/1,102

See attached 2005 footnotes.

15

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Development Pipeline

2005 Footnotes

(a)	Amounts are presented on the full consolidation method of accounting, a GAAP measure. Under full consolidation, costs are reported as consolidated at 100 percent if we are deemed to have control or to be the primary beneficiary of our investments in the variable interest entity (“VIE”).
(b)	Cost at pro-rata share represents Forest City’s share of 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 cost of the applicable property.
(c)	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.
(d)	The difference between the full consolidation amount (GAAP) of $547.6 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $579.5 million of cost consists of a reduction to full consolidation for minority interest of $0.9 million of cost and the addition of its share of cost for unconsolidated investments of $32.8 million.
(e)	Phased-in openings. Costs are representative of the total project.
(f)	The difference between the full consolidation amount (GAAP) of $0.0 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $32.4 million of cost consists of the Company’s share of cost for unconsolidated investments of $32.4 million.
(g)	Supported-living property.
(h)	The difference between the full consolidation amount (GAAP) of $702.2 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $1,315.0 million of cost consists of a reduction to full consolidation for minority interest of $4.8 million of cost and the addition of its share of cost for unconsolidated investments of $617.6 million.
(i)	As is customary within the real estate industry, the Company invests in certain real estate projects through joint ventures. For some of these projects, the Company provides funding at percentages that differ from the Company’s legal ownership. The Company consolidates its investments in these projects in accordance with FIN No. 46(R) at a consolidation percentage that is reflected in the Pro-Rata FCE % column.
(j)	Includes 39,000 square feet of office space.
(k)	Includes 235,000 square feet of office space.
(l)	Phased opening: Phase I opened Q4-05, Phase II opens Q1-06, Phase III opens Q3-06.
(m)	The difference between the full consolidation amount (GAAP) of $0.0 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $36.7 million of cost consists of Forest City’s share of cost for unconsolidated investments of $36.7 million.
(n)	Project includes 18,000 square feet of retail space.
(o)	Formerly 3800 Wilshire.

16

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Mortgage Financings

Our primary capital strategy seeks to isolate the financial risk at the property level to maximize returns and reduce risk on and of our equity capital. Our mortgage debt is nonrecourse, including our construction loans. We operate as a C-corporation and retain substantially all of our internally generated cash flows. We recycle this cash flow, together with refinancing and property sale proceeds to fund new development and acquisitions that drive favorable returns for our shareholders. This strategy provides us with the necessary liquidity to take advantage of investment opportunities.

We use taxable and tax-exempt nonrecourse debt for our real estate projects. For those projects financed with taxable debt, we generally seek long-term, fixed rate financing for those real estate project loans which mature within the next 12 months, as well as those real estate projects which are projected to open and achieve stabilized operations during that same time frame. For real estate projects financed with tax-exempt debt, we generally utilize variable rate debt. For construction loans, we generally pursue variable-rate financings with maturities ranging from two to five years.

We are actively working to extend the maturities and/or refinance the nonrecourse debt that is coming due in 2006 and 2007. During the year ended January 31, 2006, we completed the following financings:

					Plus
					Unconsolidated
	Full		Less Minority		Investments at		Pro-Rata
Purpose of Financing	Consolidation		Interest		Pro-Rata		Consolidation
	(in thousands)
Refinancings	$	891,304	$	225,431	$	109,649	$	775,522
Development projects (commitment)/acquisitions		622,659		19,675		78,810		681,794
Loan extensions/additional fundings		226,639		17,720		31,463		240,382
	$	1,740,602	$	262,826	$	219,922	$	1,697,698

17

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

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

As of January 31, 2006

		Fiscal Year Ending January 31, 2007												Fiscal Year Ending January 31, 2008
								Plus												Plus
					Less			Unconsolidated									Less			Unconsolidated
		Full			Minority			Investments at			Pro-Rata			Full			Minority			Investments at			Pro-Rata
		Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
	Fixed-rate debt	$	292,266		$	16,889		$	14,736		$	290,113		$	160,787		$	27,293		$	96,070		$	229,564
	Weighted average rate		7.07	%		7.17	%		6.66	%		7.04	%		6.90	%		6.95	%		7.46	%		7.13	%
	UDAG		8,385			176			12,077			20,286			728			180			—			548
	Weighted average rate		0.23	%		2.78	%		7.22	%		4.37	%		2.56	%		2.74	%		—			2.50	%
	Total fixed-rate debt		300,651			17,065			26,813			310,399			161,515			27,473			96,070			230,112
Variable:
	Variable-rate debt		272,941			9,043			90,814			354,712			267,609			45,531			56,291			278,369
	Weighted average rate		6.50	%		6.28	%		6.95	%		6.62	%		6.50	%		6.82	%		6.51	%		6.45	%
	Tax-Exempt		112,152			7,741			31,356			135,767			127,670			2,400			2,670			127,940
	Weighted average rate		4.25	%		4.22	%		4.76	%		4.37	%		4.50	%		4.55	%		3.52	%		4.48	%
	Total variable-rate debt		385,093			16,784			122,170			490,479			395,279			47,931			58,961			406,309
Total Nonrecourse Mortgage Debt		$	685,744		$	33,849		$	148,983		$	800,878		$	556,794		$	75,404		$	155,031		$	636,421
Weighted Average Rate			6.30	%		6.24	%		6.48	%		6.33	%		6.15	%		6.79	%		7.05	%		6.29	%

		Fiscal Year Ending January 31, 2009												Fiscal Year Ending January 31, 2010
								Plus												Plus
					Less			Unconsolidated									Less			Unconsolidated
		Full			Minority			Investments at			Pro-Rata			Full			Minority			Investments at			Pro-Rata
		Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
	Fixed-rate debt	$	122,819		$	19,103		$	86,257		$	189,973		$	267,652		$	57,667		$	97,790		$	307,775
	Weighted average rate		6.81	%		7.00	%		6.81	%		6.79	%		7.04	%		7.43	%		7.07	%		6.98	%
	UDAG		726			188			948			1,486			724			197			—			527
	Weighted average rate		2.50	%		2.80	%		—			0.87	%		2.44	%		2.85	%		—			2.28	%
	Total fixed-rate debt		123,545			19,291			87,205			191,459			268,376			57,864			97,790			308,302
Variable:
	Variable-rate debt		25,532			—			64,213			89,745			3,190			—			10,681			13,871
	Weighted average rate		6.47	%		—			6.94	%		6.81	%		5.81	%		—			5.72	%		5.74	%
	Tax-Exempt		16,000			—			82			16,082			277,000			15,600			40,090			301,490
	Weighted average rate		4.59	%		—			3.76	%		4.59	%		4.70	%		4.24	%		3.55	%		4.57	%
	Total variable-rate debt		41,532			—			64,295			105,827			280,190			15,600			50,771			315,361
Total Nonrecourse Mortgage Debt		$	165,077		$	19,291		$	151,500		$	297,286		$	548,566		$	73,464		$	148,561		$	623,663
Weighted Average Rate			6.52	%		6.96	%		6.82	%		6.65	%		5.85	%		6.74	%		6.02	%		5.78	%

18

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

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

As of January 31, 2006

		Fiscal Year Ending January 31, 2011												Thereafter
								Plus												Plus
					Less			Unconsolidated									Less			Unconsolidated
		Full			Minority			Investments at			Pro-Rata			Full			Minority			Investments at			Pro-Rata
		Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
	Fixed-rate debt	$	345,062		$	110,960		$	18,662		$	252,764		$	2,357,321		$	275,768		$	253,053		$	2,334,606
	Weighted average rate		6.88	%		6.64	%		7.35	%		7.02	%		6.10	%		6.42	%		5.95	%		6.04	%
	UDAG		20,671			13,065			—			7,606			72,189			5,499			—			66,690
	Weighted average rate		1.80	%		0.99	%		—			3.19	%		1.81	%		1.96	%		—			1.79	%
	Total fixed-rate debt		365,733			124,025			18,662			260,370			2,429,510			281,267			253,053			2,401,296
Variable:
	Variable-rate debt		47,549			—			7,309			54,858			61,775			—			34,184			95,959
	Weighted average rate		5.74	%		—			8.27	%		6.08	%		5.99	%		—			5.63	%		5.86	%
	Tax-Exempt		28,660			6,520			4,824			26,964			270,024			11,780			44,000			302,244
	Weighted average rate		5.29	%		5.51	%		3.76	%		4.96	%		4.20	%		3.96	%		3.93	%		4.17	%
	Total variable-rate debt		76,209			6,520			12,133			81,822			331,799			11,780			78,184			398,203
Total Nonrecourse Mortgage Debt		$	441,942		$	130,545		$	30,795		$	342,192		$	2,761,309		$	293,047		$	331,237		$	2,799,499
Weighted Average Rate			6.42	%		6.02	%		7.01	%		6.62	%		5.80	%		6.24	%		5.64	%		5.74	%

		Total
								Plus
					Less			Unconsolidated
		Full			Minority			Investments at			Pro-Rata
		Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
	Fixed-rate debt	$	3,545,907		$	507,680		$	566,568		$	3,604,795
	Weighted average rate		6.39	%		6.66	%		6.59	%		6.38	%
	UDAG		103,423			19,305			13,025			97,143
	Weighted average rate		1.69	%		1.34	%		6.69	%		2.43	%
	Total fixed-rate debt		3,649,330			526,985			579,593			3,701,938
Variable:
	Variable-rate debt		678,596			54,574			263,492			887,514
	Weighted average rate		6.40	%		6.73	%		6.67	%		6.46	%
	Tax-Exempt		831,506			44,041			123,022			910,487
	Weighted average rate		4.47	%		4.37	%		4.00	%		4.41	%
	Total variable-rate debt		1,510,102			98,615			386,514			1,798,001
Total Nonrecourse Mortgage Debt		$	5,159,432		$	625,600		$	966,107		$	5,499,939
Weighted Average Rate			5.98	%		6.34	%		6.28	%		6.00	%

19

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

As discussed on page 2, we present certain financial amounts under the pro-rata consolidation method (a non-GAAP measure). This information is useful to our investors because we believe that it more accurately reflects the manner in which we operate our business. This is because, in line with industry practice, we have a large number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. The tables below present amounts for both full consolidation, a GAAP measure, and pro-rata consolidation, providing a reconciliation of the difference between the two methods. Under the pro-rata consolidation method, we present our partnership investments proportionate to our share of ownership for each line item of our consolidated financial statements. Under full consolidation, partnership assets and liabilities are reported as consolidated at 100% if deemed to be under our control or if we are deemed to be the primary beneficiary for our investments in a VIE. Partnership assets and liabilities are reported on the equity or cost method of accounting if we do not have control, or, in the case of investments in VIEs, the Company is not deemed the primary beneficiary.

Consolidated Balance Sheet Information – January 31, 2006 (unaudited)

									Plus
			Full						Unconsolidated			Pro-Rata
			Consolidation			Less Minority			Investments at			Consolidation
			(GAAP)			Interest			Pro-Rata			(Non-GAAP)
			(in thousands)
Assets
Real Estate
	Completed rental properties		$	6,162,995		$	765,827		$	931,183		$	6,328,351
	Projects under development			886,256			84,241			394,648			1,196,663
	Land held for development or sale			105,875			3,420			97,566			200,021
		Total Real Estate		7,155,126			853,488			1,423,397			7,725,035
	Less accumulated depreciation			(986,594	)		(147,375	)		(269,412	)		(1,108,631	)
		Real Estate, net		6,168,532			706,113			1,153,985			6,616,404
Cash and equivalents				254,734			33,026			13,522			235,230
Restricted cash				430,264			31,942			51,241			449,563
Notes and accounts receivable, net				265,264			30,562			(2,045	)		232,657
Investments in and advances to affiliates				361,942			—			(155,245	)		206,697
Other assets				509,605			37,042			93,873			566,436
		Total Assets	$	7,990,341		$	838,685		$	1,155,331		$	8,306,987
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse			$	5,159,432		$	625,600		$	966,107		$	5,499,939
Notes payable				89,174			19,214			91,710			161,670
Bank revolving credit facility				82,500			—			—			82,500
Senior and subordinated debt				599,400			—			—			599,400
Accounts payable and accrued expenses				674,949			91,155			97,514			681,308
Deferred income taxes				387,788			—			—			387,788
		Total Liabilities		6,993,243			735,969			1,155,331			7,412,605
Minority Interest				102,716			102,716			—			—
		Total Shareholders’ Equity		894,382			—			—			894,382
		Total Liabilities and Shareholders’ Equity	$	7,990,341		$	838,685		$	1,155,331		$	8,306,987

20

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Consolidated Balance Sheet Information – January 31, 2005 (unaudited)

										Plus
				Full						Unconsolidated			Pro-Rata
				Consolidation			Less Minority			Investments at			Consolidation
				(GAAP)			Interest			Pro-Rata			(Non-GAAP)
				(in thousands)
Assets
Real Estate
	Completed rental properties			$	5,708,558		$	843,631		$	929,275		$	5,794,202
	Projects under development				634,441			20,300			255,124			869,265
	Land held for development or sale				94,907			3,577			93,755			185,085
		Total Real Estate			6,437,906			867,508			1,278,154			6,848,552
	Less accumulated depreciation				(865,562	)		(141,674	)		(255,221	)		(979,109	)
		Real Estate, net			5,572,344			725,834			1,022,933			5,869,443
Cash and equivalents					276,492			24,090			11,956			264,358
Restricted cash					347,267			28,478			57,296			376,085
Notes and accounts receivable, net					212,868			51,127			854			162,595
Investments in and advances to affiliates					415,234			—			(166,337	)		248,897
Other assets					497,880			48,581			99,463			548,762
			Total Assets	$	7,322,085		$	878,110		$	1,026,165		$	7,470,140
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse				$	4,787,191		$	649,959		$	892,617		$	5,029,849
Notes payable					93,432			16,529			51,706			128,609
Bank revolving credit facility					—			—			—			—
Senior and subordinated debt					599,400			—			—			599,400
Accounts payable and accrued expenses					587,274			115,849			81,842			553,267
Deferred income taxes					354,490			—			—			354,490
			Total Liabilities		6,421,787			782,337			1,026,165			6,665,615
Minority Interest					95,773			95,773			—			—
			Total Shareholders’ Equity		804,525			—			—			804,525
			Total Liabilities and Shareholders’ Equity	$	7,322,085		$	878,110		$	1,026,165		$	7,470,140

21

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Consolidated Earnings Information – Year Ended January 31, 2006 (unaudited)

								Plus
		Full			Less			Unconsolidated			Plus			Pro-Rata
		Consolidation			Minority			Investments at			Discontinued			Consolidation
		(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
		(in thousands)
Revenues from real estate operations		$	1,200,775		$	140,603		$	318,282		$	54,649		$	1,433,103
Expenses
	Operating expenses		694,296			65,591			194,900			39,382			862,987
	Interest expense, including early extinguishment of debt		280,530			29,115			52,589			14,814			318,818
	Amortization of mortgage procurement costs		12,547			2,280			3,279			436			13,982
	Provision for decline in real estate		7,874			1,432			704			—			7,146
	Depreciation and amortization		174,792			14,355			39,991			6,477			206,905
			1,170,039			112,773			291,463			61,109			1,409,838
Interest income			28,095			2,666			1,218			283			26,930
Equity in earnings of unconsolidated entities (Note 1)			55,201			—			(49,060	)		—			6,141
Gain on disposition of rental properties and other investments			506			—			21,023			43,198			64,727
Earnings before income taxes			114,538			30,496			—			37,021			121,063
Income tax expense (benefit)
	Current		1,263			—			—			(4,223	)		(2,960	)
	Deferred		21,975			—			—			18,529			40,504
			23,238			—			—			14,306			37,544
Earnings before minority interest and discontinued operations			91,300			30,496			—			22,715			83,519
Minority interest			(30,496	)		(30,496	)		—			—			—
Earnings from continuing operations (Note 1)			60,804			—			—			22,715			83,519
Discontinued operations, net of tax and minority interest:
	Operating (losses) earnings from rental properties		(3,790	)		—			—			3,790			—
	Gain on disposition of rental properties		26,505			—			—			(26,505	)		—
			22,715			—			—			(22,715	)		—
Net earnings		$	83,519		$	—		$	—		$	—		$	83,519

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the year ended January 31, 2006, three equity method investments were sold, Showcase, Colony Place and Flower Park Plaza. A pre-tax gain of $21,023 ($12,900 net of tax) has been reported in equity in earnings of unconsolidated entities in the Consolidated Statements of Earnings, and therefore is included in earnings from continuing operations.

22

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Consolidated Earnings Information – Year Ended January 31, 2005 (unaudited)

								Plus
		Full			Less			Unconsolidated			Plus			Pro-Rata
		Consolidation			Minority			Investments at			Discontinued			Consolidation
		(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
		(in thousands)
Revenues from real estate operations		$	986,054		$	133,886		$	260,844		$	63,015		$	1,176,027
Expenses
	Operating expenses		567,276			71,239			155,898			40,338			692,273
	Interest expense, including early extinguishment of debt		243,316			28,035			50,718			18,990			284,989
	Amortization of mortgage procurement costs		13,427			2,825			1,477			677			12,756
	Depreciation and amortization		153,085			10,870			30,927			10,680			183,822
			977,104			112,969			239,020			70,685			1,173,840
Interest income			45,302			4,244			550			253			41,861
Equity in earnings of unconsolidated entities (Note 1)			54,392			—			(54,370	)		—			22
Gain on disposition of rental properties and other investments			438			—			31,996			67,645			100,079
Earnings before income taxes			109,082			25,161			—			60,228			144,149
Income tax expense (benefit)
	Current		(12,857	)		—			—			3,155			(9,702	)
	Deferred		52,770			—			—			20,660			73,430
			39,913			—			—			23,815			63,728
Earnings before minority interest, discontinued operations, and cumulative effect of change in accounting principle			69,169			25,161			—			36,413			80,421
Minority interest			(25,161	)		(25,161	)		—			—			—
Earnings from continuing operations (Note 1)			44,008			—			—			36,413			80,421
Discontinued operations, net of tax and minority interest:
	Operating earnings from Lumber Group		4,545			—			—			—			4,545
	Operating loss from rental properties		(4,480	)		—			—			4,480			—
	Gain on disposition of Lumber Group		11,501			—			—			—			11,501
	Gain on disposition of rental properties		40,893			—			—			(40,893	)		—
			52,459			—			—			(36,413	)		16,046
Cumulative effect of change in accounting principle, net of tax			(11,261	)		—			—			—			(11,261	)
Net earnings		$	85,206		$	—		$	—		$	—		$	85,206

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the year ended January 31, 2005, three equity method investments were sold, Chapel Hill Mall, Manhattan Town Center Mall and Chapel Hill Suburban. A pre-tax gain of $31,996 ($19,341 net of tax) has been reported in equity in earnings of unconsolidated entities in the Consolidated Statements of Earnings, and therefore is included in earnings from continuing operations.

23

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

The following schedules present information on investments in and advances to affiliates.

Investments in and Advances to Affiliates

      Included in Investments in and Advances to Affiliates in the Consolidated Balance Sheet Information tables are unconsolidated investments in entities which we do not control and/or are not the primary beneficiary, and which are accounted for under the equity method of accounting, as well as advances to partners and other affiliates.

Following is a reconciliation of members’ and partners’ equity to our carrying value in the accompanying Consolidated Balance Sheet Information:

	January 31,
	2006		2005
	(in thousands)
Members’ and partners’ equity, as below	$	564,280	$	619,670
Equity of other members and partners		409,035		453,333
Company’s investment in partnerships		155,245		166,337
Advances to and on behalf of other affiliates(1)		206,697		248,897
Total Investments in and advances to affiliates	$	361,942	$	415,234

(1)  As is customary within the real estate industry, the Company invests in certain projects through joint ventures. The Company provides funding for certain of its partners’ equity contributions. The most significant partnership for which the Company provides funding relates to Forest City Ratner Companies, representing the Commercial Group’s New York City operations and one unconsolidated project reported in the Residential Group. The Company consolidates the majority of its investments in these Commercial Group projects. The Company’s partner is the President and Chief Executive Officer of Forest City Ratner Companies and is the cousin to five executive officers of the Company. At January 31, 2006 and 2005, amounts advanced for projects on behalf of this partner, collateralized solely by each respective partnership interest were $50,230 and $63,213, respectively, of the $206,697 and $248,897 presented above for “Advances to and on behalf of other affiliates.” These advances entitle the Company to a preferred return on and of the outstanding balances, which are payable solely from cash flows of each respective property, as well as a deficit restoration obligation provided by the partner.

Summarized financial information for the equity method investments is as follows:

		Combined (100%)						Pro-Rata Share
		(GAAP)						(Non-GAAP)
		January 31,						January 31,
		2006			2005			2006			2005
		(in thousands)						(in thousands)
Balance Sheet:
Completed rental properties		$	1,946,922		$	1,879,706		$	931,183		$	929,275
Projects under development			854,316			564,712			394,648			255,124
Land held for development or sale			181,315			177,080			97,566			93,755
Accumulated depreciation			(529,501	)		(497,566	)		(269,412	)		(255,221	)
Restricted cash			317,850			362,583			51,241			57,296
Other assets			469,676			542,567			105,350			112,273
	Total Assets	$	3,240,578		$	3,029,082		$	1,310,576		$	1,192,502
Mortgage debt, nonrecourse		$	2,145,146		$	2,012,578		$	966,107		$	892,617
Other liabilities			531,152			396,834			189,224			133,548
Members’ and partners’ equity			564,280			619,670			155,245			166,337
	Total Liabilities and Members’/ Partners’ Equity	$	3,240,578		$	3,029,082		$	1,310,576		$	1,192,502

24

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Investments in and Advances to Affiliates (continued)

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Year Ended January 31,	2006			2005			2006			2005
	(in thousands)
Operations:
Revenues	$	692,793		$	530,990		$	318,282		$	260,844
Equity in earnings of unconsolidated entities on a pro-rata basis		—			—			6,141			22
Operating expenses		(427,520	)		(318,625	)		(194,900	)		(155,898	)
Interest expense including early extinguishment of debt		(122,550	)		(106,556	)		(52,589	)		(50,718	)
Provision for decline in real estate		(704	)		—			(704	)		—
Depreciation and amortization		(113,144	)		(77,985	)		(43,270	)		(32,404	)
Interest income		9,756			3,592			1,218			550
Gain on disposition of rental properties(2)		85,802			61,427			21,023			31,996
Net Earnings (pre-tax)	$	124,433		$	92,843		$	55,201		$	54,392

(2)  The following table shows the detail of gain on disposition of rental properties that were held by equity method investments:

		Combined (100%)				Pro-Rata Share
		(GAAP)				(Non-GAAP)
		Year Ended January 31,
		2006		2005		2006		2005
		(in thousands)
Showcase (Specialty Retail Center)	(Las Vegas, Nevada)	$	71,005	$	—	$	13,145	$	—
Colony Place (Apartments)	(Fort Myers, Florida)		10,703		—		5,352		—
Flower Park Plaza (Apartments)	(Santa Ana, California)		4,094		—		2,526		—
Chapel Hill Mall (Regional Mall)	(Akron, Ohio)		—		56,455		—		27,943
Manhattan Town Center Mall (Regional Mall)	(Manhattan, Kansas)		—		3,141		—		3,138
Chapel Hill Suburban (Specialty Retail Center)	(Akron, Ohio)		—		1,831		—		915
Total		$	85,802	$	61,427	$	21,023	$	31,996

25

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Real Estate and Related Nonrecourse Mortgage Debt

				January 31, 2006
						Less				Nonrecourse
						Accumulated				Mortgage
				Total Cost		Depreciation		Net Cost		Debt
				(in thousands)
Full Consolidation:
Completed rental properties
Residential				$	1,540,151	$	182,166	$	1,357,985	$	1,095,723
Commercial
	Retail centers				2,217,154		276,886		1,940,268		1,814,124
	Office and other buildings				2,396,530		523,197		1,873,333		1,711,772
Corporate and other equipment					9,160		4,345		4,815		—
					6,162,995		986,594		5,176,401		4,621,619
Projects under development
Residential
	Under construction				172,724		—		172,724		158,000
	In development(1)				182,235		—		182,235		216,599
Commercial
	Retail centers
			Under construction		165,614		—		165,614		48,711
			In development		135,480		—		135,480		5,924
	Office and other buildings
			Under construction		40,296		—		40,296		26,650
			In development		189,907		—		189,907		52,822
					886,256		—		886,256		508,706
Land held for development or sale					105,875		—		105,875		29,107
Total real estate and mortgage debt				$	7,155,126	$	986,594	$	6,168,532	$	5,159,432
Less Minority Interest:
Completed rental properties
Residential				$	110,630	$	10,108	$	100,522	$	85,052
Commercial
	Retail centers				221,132		26,510		194,622		214,442
	Office and other buildings				434,065		110,757		323,308		289,774
Corporate and other equipment					—		—		—		—
					765,827		147,375		618,452		589,268
Projects under development
Residential
	Under construction				7,280		—		7,280		13,000
	In development				109		—		109		—
Commercial
	Retail centers
		Under construction			4,539		—		4,539		—
		In development			6,561		—		6,561		2,962
	Office and other buildings
	Under construction				84		—		84		—
		In development			65,668		—		65,668		20,370
					84,241		—		84,241		36,332
Land held for development or sale					3,420		—		3,420		—
Total real estate and mortgage debt				$	853,488	$	147,375	$	706,113	$	625,600

(1)  Nonrecourse mortgage debt includes $160,000 in municipals bonds issued to fund construction expected to commence in the first quarter of 2006. At January 31, 2006, substantially all the bond funds are in restricted cash on the Consolidated Balance Sheets.

26

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Real Estate and Related Nonrecourse Mortgage Debt (continued)

			January 31, 2006
					Less				Nonrecourse
					Accumulated				Mortgage
			Total Cost		Depreciation		Net Cost		Debt
			(in thousands)
Plus Unconsolidated Investments at Pro-Rata:
Completed rental properties
Residential			$	618,179	$	165,367	$	452,812	$	524,939
Commercial
	Retail centers			155,499		46,119		109,380		167,322
	Office and other buildings			157,503		57,926		99,577		101,860
Corporate and other equipment				2		—		2		—
				931,183		269,412		661,771		794,121
Projects under development
Residential
	Under construction			89,274		—		89,274		40,672
	In development			5,966		—		5,966		—
Commercial
	Retail centers
		Under construction		127,365		—		127,365		49,658
		In development		78,372		—		78,372		22,430
	Office and other buildings
		Under construction		73,545		—		73,545		—
		In development		20,126		—		20,126		5,620
				394,648		—		394,648		118,380
Land held for development or sale				97,566		—		97,566		53,606
Total real estate and mortgage debt			$	1,423,397	$	269,412	$	1,153,985	$	966,107
Pro-Rata Consolidation (Non-GAAP):
Completed rental properties
Residential			$	2,047,700	$	337,425	$	1,710,275	$	1,535,610
Commercial
	Retail centers			2,151,521		296,495		1,855,026		1,767,004
	Office and other buildings			2,119,968		470,366		1,649,602		1,523,858
Corporate and other equipment				9,162		4,345		4,817		—
				6,328,351		1,108,631		5,219,720		4,826,472
Projects under development
Residential
	Under construction		$	254,718	$	—	$	254,718	$	185,672
	In development(1)			188,092		—		188,092		216,599
Commercial
	Retail centers
		Under construction		288,440		—		288,440		98,369
		In development		207,291		—		207,291		25,392
	Office and other buildings
		Under construction		113,757		—		113,757		26,650
		In development		144,365		—		144,365		38,072
				1,196,663		—		1,196,663		590,754
Land held for development or sale				200,021		—		200,021		82,713
Total real estate and mortgage debt			$	7,725,035	$	1,108,631	$	6,616,404	$	5,499,939

27

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Rental Properties Corporation (“Rental Properties”) is a wholly-owned subsidiary of Forest City Enterprises, Inc. engaged in the ownership, development, acquisition and management of real estate projects, including apartment complexes, regional malls and retail centers, hotels, office buildings and mixed-use facilities, as well as large land development projects. Consolidated Balance Sheet information and Consolidated Earnings information for Rental Properties and its subsidiaries follow.

Forest City Rental Properties Corporation and Subsidiaries

Consolidated Balance Sheet Information — January 31, 2006 (unaudited)

									Plus
			Full						Unconsolidated			Pro-Rata
			Consolidation			Less Minority			Investments at			Consolidation
			(GAAP)			Interest			Pro-Rata			(Non-GAAP)
			(in thousands)
Assets
Real Estate
	Completed rental properties		$	6,153,835		$	765,827		$	931,181		$	6,319,189
	Projects under development			886,256			84,241			394,648			1,196,663
	Land for development or sale			38,091			3,420			15,604			50,275
		Total Real Estate		7,078,182			853,488			1,341,433			7,566,127
	Less accumulated depreciation			(982,249	)		(147,375	)		(269,412	)		(1,104,286	)
		Real Estate, net		6,095,933			706,113			1,072,021			6,461,841
Cash and equivalents				141,471			33,026			9,675			118,120
Restricted cash				429,176			31,942			50,516			447,750
Notes and accounts receivable, net				242,952			30,562			(3,885	)		208,505
Investments in and advances to affiliates				298,596			—			(111,992	)		186,604
Other assets				429,496			37,042			93,415			485,869
		Total Assets	$	7,637,624		$	838,685		$	1,109,750		$	7,908,689
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse			$	5,130,324		$	625,600		$	928,502		$	5,433,226
Notes payable				77,230			19,214			88,822			146,838
Bank revolving credit facility				82,500			—			—			82,500
Senior and subordinated debt				20,400			—			—			20,400
Accounts payable and accrued expenses(1)				970,437			91,155			92,426			971,708
Deferred income taxes				428,453			—			—			428,453
		Total Liabilities		6,709,344			735,969			1,109,750			7,083,125
Minority Interest				102,716			102,716			—			—
		Total Shareholders’ Equity		825,564			—			—			825,564
		Total Liabilities and Shareholders’ Equity	$	7,637,624		$	838,685		$	1,109,750		$	7,908,689

(1)  Included in the Full Consolidation balance is $398,895 of liabilities payable to Forest City Enterprises, Inc.

28

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Rental Properties Corporation and Subsidiaries
Consolidated Balance Sheet Information — January 31, 2005 (unaudited)

									Plus
			Full						Unconsolidated			Pro-Rata
			Consolidation			Less Minority			Investments at			Consolidation
			(GAAP)			Interest			Pro-Rata			(Non-GAAP)
			(in thousands)
Assets
Real Estate
	Completed rental properties		$	5,691,161		$	843,631		$	929,276		$	5,776,806
	Projects under development			634,441			20,300			255,124			869,265
	Land held for development or sale			40,546			3,577			16,038			53,007
		Total Real Estate		6,366,148			867,508			1,200,438			6,699,078
	Less accumulated depreciation			(861,516	)		(141,674	)		(255,221	)		(975,063	)
		Real Estate, net		5,504,632			725,834			945,217			5,724,015
Cash and equivalents				113,260			24,090			6,951			96,121
Restricted cash				347,158			28,478			56,824			375,504
Notes and accounts receivable, net				193,321			51,127			(1,724	)		140,470
Investments in and advances to affiliates				357,499			—			(123,448	)		234,051
Other assets				436,269			48,581			98,756			486,444
		Total Assets	$	6,952,139		$	878,110		$	982,576		$	7,056,605
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse			$	4,765,467		$	649,959		$	855,944		$	4,971,452
Notes payable				83,662			16,529			50,586			117,719
Bank revolving credit facility				—			—			—			—
Senior and subordinated debt				20,400			—			—			20,400
Accounts payable and accrued expenses (1)				881,665			115,849			76,046			841,862
Deferred income taxes				379,305			—			—			379,305
		Total Liabilities		6,130,499			782,337			982,576			6,330,738
Minority Interest				95,773			95,773			—			—
		Total Shareholders’ Equity		725,867			—			—			725,867
		Total Liabilities and Shareholders’ Equity	$	6,952,139		$	878,110		$	982,576		$	7,056,605

(1)  Included in the Full Consolidation balance is $377,060 of liabilities payable to Forest City Enterprises, Inc.

29

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Rental Properties Corporation and Subsidiaries
Consolidated Earnings Information — Year Ended January 31, 2006 (unaudited)

								Plus
		Full			Less			Unconsolidated			Plus			Pro-Rata
		Consolidation			Minority			Investments at			Discontinued			Consolidation
		(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
		(in thousands)
Revenues from real estate operations		$	1,171,776		$	140,603		$	273,959		$	54,649		$	1,359,781
Expenses
	Operating expenses		634,553			65,591			168,761			39,382			777,105
	Interest expense, including early extinguishment of debt		276,709			29,115			52,269			14,814			314,677
	Amortization of mortgage procurement costs		12,178			2,280			2,963			436			13,297
	Provision for decline in real estate		6,356			1,432			704			—			5,628
	Depreciation and amortization		173,688			14,355			39,783			6,477			205,593
			1,103,484			112,773			264,480			61,109			1,316,300
Interest income			26,353			2,666			1,078			283			25,048
Equity in earnings of unconsolidated entities (Note 1)			34,588			—			(31,580	)		—			3,008
Gain on disposition of rental properties			—			—			21,023			43,198			64,221
Earnings before income taxes			129,233			30,496			—			37,021			135,758
Income tax expense (benefit)
	Current		231			—			—			(4,223	)		(3,992	)
	Deferred		26,374			—			—			18,529			44,903
			26,605			—			—			14,306			40,911
Earnings before minority interest and discontinued operations			102,628			30,496			—			22,715			94,847
Minority interest			(30,496	)		(30,496	)		—			—			—
Earnings from continuing operations (Note 1)			72,132			—			—			22,715			94,847
Discontinued operations, net of tax and minority interest
	Operating loss from rental properties		(3,790	)		—			—			3,790			—
	Gain on disposition of rental properties		26,505			—			—			(26,505	)		—
			22,715			—			—			(22,715	)		—
Net earnings		$	94,847		$	—		$	—		$	—		$	94,847

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the year ended January 31, 2006, three equity method investments were sold, Showcase, Colony Place and Flower Park Plaza. A pre-tax gain of $21,023 ($12,900 net of tax) has been reported in equity in earnings of unconsolidated entities in the Consolidated Statements of Earnings, and therefore is included in earnings from continuing operations.

30

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Rental Properties Corporation and Subsidiaries

Consolidated Earnings Information – Year Ended January 31, 2005 (unaudited)

								Plus
		Full			Less			Unconsolidated			Plus			Pro-Rata
		Consolidation			Minority			Investments at			Discontinued			Consolidation
		(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
		(in thousands)
Revenues from real estate operations		$	962,658		$	133,886		$	233,691		$	63,015		$	1,125,478
Expenses
	Operating expenses		513,616			71,239			135,229			40,338			617,944
	Interest expense, including early extinguishment of debt		239,067			28,035			50,200			18,990			280,222
	Amortization of mortgage procurement costs		13,184			2,825			1,127			677			12,163
	Depreciation and amortization		151,999			10,870			30,880			10,680			182,689
			917,866			112,969			217,436			70,685			1,093,018
Interest income			44,624			4,244			444			253			41,077
Equity in earnings of unconsolidated entities (Note 1)			45,136			—			(48,695	)		—			(3,559	)
Gain on disposition of rental properties			—			—			31,996			67,645			99,641
Earnings before income taxes			134,552			25,161			—			60,228			169,619
Income tax expense (benefit)
	Current		(1,175	)		—			—			3,155			1,980
	Deferred		49,218			—			—			20,660			69,878
			48,043			—			—			23,815			71,858
Earnings before minority interest, discontinued operations and cumulative effect of change in accounting principle			86,509			25,161			—			36,413			97,761
Minority interest			(25,161	)		(25,161	)		—			—			—
Earnings from continuing operations (Note 1)			61,348			—			—			36,413			97,761
Discontinued operations, net of tax and minority interest
	Operating loss from rental properties		(4,480	)		—			—			4,480			—
	Gain on disposition of rental properties		40,893			—			—			(40,893	)		—
			36,413			—			—			(36,413	)		—
Cumulative effect of change in accounting principle, net of tax			(11,261	)		—			—			—			(11,261	)
Net earnings		$	86,500		$	—		$	—		$	—		$	86,500

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the year ended January 31,2005, three equity method investments were sold, Chapel Hill Mall, Manhattan Town Center Mall and Chapel Hill Suburban. A pre-tax gain of $31,996 ($19,341 net of tax) has been reported in equity in earnings of unconsolidated entities in the Consolidated Statements of Earnings, and therefore is included in earnings from continuing operations.

31

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

The following is a summary of the real estate activity of the Company’s Real Estate Groups as presented on pro-rata consolidation including a reconciliation from full consolidation to pro-rata consolidation.

Forest City Rental Properties Corporation – Real Estate Activity⁽¹⁾

				Pro-Rata Consolidation (Non-GAAP)
				January 31,
				2006			2005			2004			2003			2002
				(in thousands)
Forest City Rental Properties Corporation – Real Estate Activity(1)
Real estate – end of year
	Completed rental properties			$	6,319,189		$	5,776,806		$	4,786,035		$	4,082,080		$	3,614,420
	Projects under development				1,196,663			869,265			541,476			575,558			483,730
	Land held for development or sale				50,275			53,007			53,089			51,751			59,375
		Real estate, at cost			7,566,127			6,699,078			5,380,600			4,709,389			4,157,525
	Less accumulated depreciation				(1,104,286	)		(975,063	)		(816,395	)		(697,055	)		(613,902	)
		Total real estate		$	6,461,841		$	5,724,015		$	4,564,205		$	4,012,334		$	3,543,623
Real estate activity during the year
	Completed rental properties
		Capital expenditures		$	66,239		$	127,486		$	38,890		$	43,266		$	67,422
		Transferred from projects under development			534,820			612,111			377,578			305,982			363,180
		Acquisitions			58,667			115,185			374,305			172,860			78,499
		Other additions(7)			81,396			337,293			—			—			—
			Total additions		741,122			1,192,075			790,773			522,108			509,101
		Dispositions			(198,739	) (2)		(201,304	) (3)		(86,818	) (4)		(54,448	) (5)		(110,092	) (6)
	Completed rental properties, net additions				542,383			990,771			703,955			467,660			399,009
	Projects under development
		New development			926,217			885,320			343,496			397,810			389,303
		Transferred to completed rental properties			(534,820	)		(612,111	)		(377,578	)		(305,982	)		(363,180	)
		Cost of Commercial Group Land Sales			(63,999	)		—			—			—			—
		Other additions			—			54,580			—			—			—
	Projects under development, net additions				327,398			327,789			(34,082	)		91,828			26,123
	Land held for development or sale, net change				(2,732	)		(82	)		1,338			(7,624	)		16,624
	Increase in real estate, at cost			$	867,049		$	1,318,478		$	671,211		$	551,864		$	441,756

32

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Rental Properties Corporation – Real Estate Activity⁽¹⁾ – (Continued)

										Plus
										Unconsolidated			Pro-Rata
				Full			Less Minority			Investments at			Consolidation
Years Ended January 31,				Consolidation			Interest			Pro-Rata			(Non-GAAP)
				(in thousands)
2006
Real estate – end of year
	Completed rental properties			$	6,153,835		$	765,827		$	931,181		$	6,319,189
	Projects under development				886,256			84,241			394,648			1,196,663
	Land held for development or sale				38,091			3,420			15,604			50,275
		Real estate, at cost			7,078,182			853,488			1,341,433			7,566,127
	Less accumulated depreciation				(982,249	)		(147,375	)		(269,412	)		(1,104,286	)
		Total real estate		$	6,095,933		$	706,113		$	1,072,021		$	6,461,841
Real estate activity during the year
	Completed rental properties
		Capital expenditures		$	78,132		$	1,855		$	(10,038	)	$	66,239
		Transferred from projects under development			490,278			11,968			56,510			534,820
		Acquisitions			58,667			—			—			58,667
		Other additions(7)			—			(86,432	)		(5,036	)		81,396
			Total additions		627,077			(72,609	)		41,436			741,122
		Dispositions			(164,403	)		(5,195	)		(39,531	)		(198,739	) (2)
		Completed rental properties, net additions			462,674			(77,804	)		1,905			542,383
	Projects under development
		New development			807,768			78,696			197,145			926,217
		Transferred to completed rental properties			(490,278	)		(11,968	)		(56,510	)		(534,820	)
		Cost of Commercial Group Land Sales			(65,675	)		(2,787	)		(1,111	)		(63,999	)
		Projects under development, net additions			251,815			63,941			139,524			327,398
		Land held for development or sale, net change			(2,455	)		(157	)		(434	)		(2,732	)
	Increase in real estate, at cost			$	712,034		$	(14,020	)	$	140,995		$	867,049
2005
Real estate – end of year
	Completed rental properties			$	5,691,161		$	843,631		$	929,276		$	5,776,806
	Projects under development				634,441			20,300			255,124			869,265
	Land held for development or sale				40,546			3,577			16,038			53,007
		Real estate, at cost			6,366,148			867,508			1,200,438			6,699,078
	Less accumulated depreciation				(861,516	)		(141,674	)		(255,221	)		(975,063	)
		Total real estate		$	5,504,632		$	725,834		$	945,217		$	5,724,015
Real estate activity during the year
	Completed rental properties
		Capital expenditures		$	93,664		$	11,524		$	45,346		$	127,486
		Transferred from projects under development			643,324			39,168			7,955			612,111
		Acquisitions			108,076			(6,201	)		908			115,185
		Other additions(7)			538,173			111,815			(89,065	)		337,293
			Total additions		1,383,237			156,306			(34,856	)		1,192,075
		Dispositions			(187,651	)		(18,721	)		(32,374	)		(201,304	) (3)
		Completed rental properties, net additions			1,195,586			137,585			(67,230	)		990,771
	Projects under development
		New development			771,183			44,142			158,279			885,320
		Transferred to completed rental properties			(643,324	)		(39,168	)		(7,955	)		(612,111	)
		Other additions			—			(54,580	)		—			54,580
		Projects under development, net transfers			127,859		$	(49,606	)	$	150,324		$	327,789
		Land held for development or sale, net change			3,142			484			(2,740	)		(82	)
	Increase in real estate, at cost			$	1,326,587			88,463			80,354			1,318,478

33

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Rental Properties Corporation – Real Estate Activity⁽¹⁾ – (Continued)

										Plus
										Unconsolidated			Pro-Rata
				Full			Less Minority			Investments at			Consolidation
Years Ended January 31,				Consolidation			Interest			Pro-Rata			(Non-GAAP)
				(in thousands)
2004
Real estate – end of year
	Completed rental properties			$	4,495,575		$	706,046		$	996,506		$	4,786,035
	Projects under development				506,582			69,906			104,800			541,476
	Land held for development or sale				37,404			3,093			18,778			53,089
		Real estate, at cost			5,039,561			779,045			1,120,084			5,380,600
	Less accumulated depreciation				(710,986	)		(109,941	)		(215,350	)		(816,395	)
		Total real estate		$	4,328,575		$	669,104		$	904,734		$	4,564,205
Real estate activity during the year
	Completed rental properties
		Capital expenditures		$	36,159		$	4,806		$	7,537		$	38,890
		Transferred from projects under development			304,321			53,599			126,856			377,578
		Acquisitions			382,472			24,021			15,854			374,305
			Total additions		722,952			82,426			150,247			790,773
		Dispositions			(68,179	)		(10,384	)		(29,023	)		(86,818	)(4)
		Completed rental properties, net additions			654,773			72,042			121,224			703,955
	Projects under development
		New development			274,469			48,953			117,980			343,496
		Transferred to completed rental properties			(304,321	)		(53,599	)		(126,856	)		(377,578	)
		Projects under development, net additions			(29,852	)		(4,646	)		(8,876	)		(34,082	)
		Land held for development or sale, net change			1,362			213			189			1,338
	Increase in real estate, at cost			$	626,283		$	67,609		$	112,537		$	671,211
2003
Real estate – end of year
	Completed rental properties			$	3,840,802		$	634,004		$	875,282		$	4,082,080
	Projects under development				536,434			74,552			113,676			575,558
	Land held for development or sale				36,042			2,880			18,589			51,751
		Real estate, at cost			4,413,278			711,436			1,007,547			4,709,389
	Less accumulated depreciation				(597,787	)		(96,033	)		(195,301	)		(697,055	)
		Total real estate		$	3,815,491		$	615,403		$	812,246		$	4,012,334
Real estate activity during the year
	Completed rental properties
		Capital expenditures		$	37,909		$	14,539		$	19,896		$	43,266
		Transferred from projects under development			265,720			26,514			66,776			305,982
		Acquisitions			158,872			24			14,012			172,860
			Total additions		462,501			41,077			100,684			522,108
		Dispositions			(53,268	)		(61	)		(1,241	)		(54,448	)(5)
		Completed rental properties, net additions			409,233			41,016			99,443			467,660
	Projects under development
		New development			383,459			61,947			76,298			397,810
		Transferred to completed rental properties			(265,720	)		(26,514	)		(66,776	)		(305,982	)
		Projects under development, net additions (transfers)			117,739			35,433			9,522			91,828
		Land held for development or sale, net change			(6,467	)		(495	)		(1,652	)		(7,624	)
	Increase in real estate, at cost			$	520,505		$	75,954		$	107,313		$	551,864

34

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Rental Properties Corporation – Real Estate Activity⁽¹⁾ – (Continued)

										Plus
										Unconsolidated			Pro-Rata
				Full			Less Minority			Investments at			Consolidation
Years Ended January 31,				Consolidation			Interest			Pro-Rata			(Non-GAAP)
				(in thousands)
2002
Real estate – end of year
	Completed rental properties			$	3,431,569		$	592,988		$	775,839		$	3,614,420
	Projects under development				418,695			39,119			104,154			483,730
	Land held for development or sale				42,509			3,375			20,241			59,375
		Real estate, at cost			3,892,773			635,482			900,234			4,157,525
	Less accumulated depreciation				(519,584	)		(80,877	)		(175,195	)		(613,902	)
		Total real estate		$	3,373,189		$	554,605		$	725,039		$	3,543,623
Real estate activity during the year
	Completed rental properties
		Capital expenditures		$	74,881		$	11,232		$	3,773		$	67,422
		Transferred from projects under development			263,428			28,972			128,724			363,180
		Acquisitions			83,830			5,331			—			78,499
			Total additions		422,139			45,535			132,497			509,101
		Dispositions			(100,622	)		(27,122	)		(36,592	)		(110,092	)(6)
		Completed rental properties, net additions			321,517			18,413			95,905			399,009
	Projects under development
		New development			274,978			14,768			129,093			389,303
		Transferred to completed rental properties			(263,428	)		(28,972	)		(128,724	)		(363,180	)
		Projects under development, net transfers			11,550			(14,204	)		369			26,123
		Land held for development or sale, net additions			16,846			1,751			1,529			16,624
	Increase in real estate, at cost			$	349,913		$	5,960		$	97,803		$	441,756

(1)	The table includes only the real estate activity for the Company’s Real Estate Groups owned by Forest City Rental Properties Corporation, a wholly-owned subsidiary engaged in the ownership, development, acquisition and management of real estate projects, including apartment complexes, regional malls and retail centers, hotels, office buildings and mixed-use facilities, as well as large land development projects.
(2)	Primarily reflects the dispositions of Cherrywood Village, Ranchstone, Colony Place, Enclave, Flower Park, and Showcase. Cherrywood Village and Ranchstone are apartment communities in Denver, Colorado with 360 and 368 units, respectively. Colony Place is a 300-unit apartment community in Fort Myers, Florida. Enclave is a 637-unit apartment community in San Jose, California. Flower Park is a 199-unit apartment community in Santa Ana, California. Showcase has 186,000 square feet in Las Vegas, Nevada.
(3)	Primarily reflects the dispositions of Woodlake, Regency Towers, Bridgewater, Arboretum Place, Trellis at Lee’s Mill, Silver Hill, Colony Woods, Manhattan Town Center, Chapel Hill Mall, Chapel Hill Suburban, Pavilion, Flatbush Avenue, and Hunting Park. Woodlake is a 534-unit apartment community in Silver Spring, Maryland. Regency Towers is a 372-unit apartment community in Jackson, New Jersey. Arboretum Place, Silver Hill, and Trellis at Lee’s Mill are apartment communities in Newport News, Virginia with 184, 153 and 176 units, respectively. Bridgewater is a 216-unit apartment community in Hampton, Virginia. Colony Woods is a 396-unit apartment community in Bellevue, Washington. Chapel Hill Mall and Chapel Hill Suburban have 860,000 and 117,000 square feet, respectively in Akron, Ohio. Pavilion has 250,000 square feet in San Jose, California. Flatbush Avenue has 142,000 square feet in Brooklyn, New York. Hunting Park has 125,000 square feet in Philadelphia, Pennsylvania. Manhattan Town Center has 392,000 square feet in Manhattan, Kansas.
(4)	Primarily reflects the dispositions of Waterford Village, Laurels and Vineyards. Waterford Village is a 576-unit apartment community in Indianapolis, Indiana. Laurels is a 520-unit apartment community in Justice, Illinois and Vineyards is a 386-unit apartment community in Broadview Heights, Ohio.
(5)	Primarily reflects the dispositions of Courtland Center and Bay Street. Courtland Center has 458,000 square feet in Flint, Michigan. Bay Street has 16,000 square feet in Staten Island, New York.
(6)	Primarily reflects the dispositions of Tucson Mall, Bowling Green Mall, Newport Plaza, Baymont Inn, Chapel Hill Towers, Palm Villas, Peppertree, Oaks, and Whitehall Terrace. Tucson Mall has 1,304,000 square feet in Tucson, Arizona. Bowling Green Mall has 242,000 square feet in Bowling Green, Kentucky. Newport Plaza has 157,000 square feet in Newport, Kentucky. Baymont Inn has 101 rooms in Mayfield Heights., Ohio. Palm Villas is a 350-unit apartment community in Henderson, Nevada. Peppertree and Oaks are apartment communities in Texas with 208 and 248 units, respectively. Chapel Hill Towers and Whitehall Terrace are apartment communities in Ohio with 402 and 188 units, respectively.
(7)	Primarily relates to changes in ownership percentage and non cash items.

35

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Results of Operations

Net Earnings – Net earnings for the year ended January 31, 2006 were $83,519,000 versus $85,206,000 for the year ended January 31, 2005. Although we have substantial recurring revenue sources from our properties, we are a transactional-based business, which could create substantial variances in net earnings between periods. This variance to the prior year is primarily attributable to the following decreases, which are net of tax and minority interest:

•  Decrease of $40,893,000 related to the 2004 gains on disposition of ten consolidated Residential properties, Regency Towers, Woodlake, Bridgewater, Pavilion, Trellis at Lee’s Mill, Hunting Park, Arboretum, Flatbush Avenue, Colony Woods, and Silver Hill;

•  Decrease of $13,745,000 related to Stapleton Land, LLC’s retained interest in a trust. Of this amount, $12,445,000 was earned in 2004 but attributable to other comprehensive income (“OCI”) in previous fiscal years and deferred until 2004 under the cost recovery method. The remaining amount of $1,300,000 was earned and recognized during the year ended January 31, 2005;

•  Decrease of $11,501,000 related to the 2004 gain on disposition of Lumber Group and a decrease of $4,545,000 related to Lumber Group’s net earnings last year with no corresponding amount in the current year;

•  Increase of $9,999,000 in losses from our equity investment in the New Jersey Nets basketball team, which we did not own during the first half of 2004;

•  Decrease of $8,134,000 related to our development fee profit at Twelve MetroTech Center in Brooklyn, New York that did not recur at the same level in 2005;

•  Decrease of $6,441,000 due to gains on disposition of equity method properties of $12,900,000 in 2005 for Showcase, a specialty retail center located in Las Vegas Nevada, Colony Place, an apartment community located in Fort Myers, Florida and Flower Park Plaza, an apartment community located in Santa Ana, California, offset by $19,341,000 on 2004 gains on disposition of Manhattan Town Center Mall, a regional mall located in Manhattan, Kansas, Chapel Hill Suburban, a specialty retail center located in Akron, Ohio and Chapel Hill Mall, a regional mall located in Akron, Ohio; and

•  Increase of $5,981,000 in interest expense as a result of the issuance of $150,000,000 senior notes in January of 2005.

      These decreases were partially offset by the following increases in earnings, net of tax and minority interest:

•  Increase of $26,830,000 related to the Commercial Group land sales, primarily at Simi Valley and Victoria Gardens in California;

•  Increase of $26,505,000 related to the 2005 gains on disposition of three consolidated residential properties, Enclave, a 637-unit apartment community located in San Jose, California, and Cherrywood Village and Ranchstone, 360-unit and 368-unit apartment communities, respectively, located in Denver, Colorado;

•  Increase of $23,706,000 related to land sales reported primarily in the Land Development Group primarily at Grass Farms, in Manatee County, Florida, Central Station, in Chicago, Illinois and Stapleton, in Denver, Colorado;

•  Increase of $11,261,000 related to the prior year charge for cumulative effect of change in accounting principle as a result of our implementation of FIN No. 46(R), which did not recur; and

•  Increase of approximately $10,000,000 related to a favorable change in our 2005 effective tax rate due to tax law changes in the state of Ohio resulting in a one-time reduction of deferred income taxes.

36

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Net Operating Income (NOI) from Real Estate Groups – NOI, a non-GAAP measure, is defined as revenues (excluding straight-line rent adjustments) less operating expenses (including depreciation and amortization for non-real estate groups) plus interest income plus equity in earnings of unconsolidated entities (excluding gain on disposition of equity method operating properties) plus equity method depreciation and amortization. We believe NOI provides us, as well as our investors, additional information about our core business operations and, along with earnings, is necessary to understand our business and operating results. Under the full consolidation method (GAAP), NOI from the combination of the Commercial Group and the Residential Group (“Real Estate Groups”) for the year ended January 31, 2006 was $542,623,000 compared to $467,058,000 for the year ended January 31, 2005, a 16.2% increase. This increase over the comparable period in the prior year is primarily attributable to NOI generated from Commercial land sales and new properties, which include three residential communities, three office buildings and four retail centers opened during the year ended January 31, 2005, as well as the six residential communities, one office building and three retail centers opened during the year ended January 31, 2006. A reconciliation of NOI to the most comparable GAAP measure, net earnings, is presented on pages 8-9. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 41-54.

Management also analyzes property NOI using the pro-rata consolidation method because it provides operating data at our ownership share, and we publicly disclose and discuss our performance using this method of consolidation to complement our GAAP disclosures. Under the pro-rata consolidation method, NOI from the combination of the Commercial Group and the Residential Group for the year ended January 31, 2006 was $537,016,000 compared to $479,918,000 for the year ended January 31, 2005, a 11.9% increase. Comparable NOI for the year increased 2.9% compared to 2.1% for the prior year. Comparable NOI for our retail and Residential portfolio is up 3.6% and 4.6%, respectively, from the prior year. Including the expected NOI for the twelve months following stabilization for the properties that were opened, expanded or acquired through January 31, 2006, less the actual annual NOI of property disposals through March 24, 2006, NOI for Real Estate Groups would be approximately $570,000,000 for the year ended January 31, 2006. This amount includes Commercial Group land sales of $49,600,000, as disclosed on page 7 of this Supplemental Package.

EBDT – We use an additional measure, along with net earnings, to report our operating results. This non-GAAP measure, referred to as Earnings Before Depreciation, Amortization and Deferred Taxes (“EBDT”), is not a measure of operating results or cash flows from operations as defined by GAAP and may not be directly comparable to similarly-titled measures reported by other companies.

We believe that EBDT provides additional information about our core operations and, along with net earnings, is necessary to understand our operating results. EBDT is used by the chief operating decision maker and management in assessing operating performance and to consider capital requirements and allocation of resources by segment and on a consolidated basis. We believe EBDT is important to investors because it provides another method for the investor to measure our long-term operating performance as net earnings can vary from year to year due to property dispositions, acquisitions and other factors that have a short-term impact.

EBDT is defined as net earnings excluding the following items: i) gain (loss) on disposition of rental properties, divisions and other investments (net of tax); ii) the adjustment to recognize rental revenues and rental expense using the straight-line method; iii) non-cash charges from real estate operations of Forest City Rental Properties Corporation, a wholly-owned subsidiary of Forest City Enterprises, Inc., for depreciation, amortization, amortization of mortgage procurement costs and deferred income taxes; iv) provision for decline in real estate (net of tax); v) extraordinary items (net of tax); and vi) cumulative effect of change in accounting principle (net of tax). Unlike the real estate segments, EBDT for the Nets segment equals net earnings.

EBDT is reconciled to net earnings, the most comparable financial measure calculated in accordance with GAAP, below. The adjustment to recognize rental revenues and rental expenses on the straight-line method is excluded because it is management’s opinion that rental revenues and expenses should be recognized when due from the tenants or due to the landlord. We exclude depreciation and amortization expense related to real estate operations from EBDT because we believe the values of our properties, in general, have appreciated over time in excess of their original cost. Deferred taxes from real estate operations, which are the result of timing differences of certain net expense items deducted in a future year for federal income tax purposes, are excluded until the year in which they are reflected in our current tax provision. The provision for decline in real estate is excluded from EBDT because it varies from year to year based on factors unrelated to our overall financial performance and is related to the ultimate gain on dispositions of operating properties. Our EBDT may not be directly comparable to similarly-titled measures reported by other companies.

37

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Our EBDT for the year ended January 31, 2006 grew by 10.4% to $270,496,000 from $245,032,000 for the year ended January 31, 2005. The positive fluctuation is primarily attributable to the sale of outlot land, and a development project in our Commercial Group of $25,167,000, increased land sales in our land segment of $29,035,000, and the sale of land at Twelve MetroTech located in Brooklyn, New York of $4,300,000. These gains were partially offset by Stapleton financing income earned in prior years and recognized in 2004 of $12,445,000 increased losses of $9,999,000 for the Nets which we did not own until August of 2004, a decrease of $4,545,000 for Lumber Group representing EBDT in 2004 with no corresponding EBDT in 2005, decreased development fee income related to Twelve MetroTech of $8,134,000, and increased interest expense as a result of our $150,000,000 senior note offering in January 2005 of $5,981,000. In addition, EBDT was favorably impacted by comp NOI increases in our Commercial and Residential Groups and also by the four retail centers and three office buildings opened during 2004 as well as the three retail centers and one office acquisition in 2005. The results in our residential business were impacted by the operating deficits resulting from initial lease-up of newly opened projects, the short-term dilutive impact in earnings resulting from the disposition of several properties, and increased interest expense due to higher variable interest rates.

Summary of EBDT — The information in the tables on pages 41-54 present amounts for both full consolidation and pro-rata consolidation, providing a reconciliation of the difference between the two methods, as well as reconciliation from NOI to EBDT to net earnings. Under the pro-rata consolidation method, we present our partnership investments proportionate to our pro-rata share for each line item of our consolidated financial statements. Under full consolidation, partnership assets and liabilities are reported as consolidated at 100% if deemed under our control or if we are deemed to be the primary beneficiary for investments in the VIEs, or on the equity method of accounting if we do not have control or are not the primary beneficiary for investments in VIEs.

38

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Reconciliation of Net Earnings to Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)⁽²⁾

		Years Ended January 31,
		2006			2005
		(in thousands)
Net earnings		$	83,519		$	85,206
Depreciation and amortization — Real Estate Groups(5)			192,715			178,972
Depreciation and amortization — equity method investments (3)			—			237
Amortization of mortgage procurement costs — Real Estate Groups(5)			11,578			12,100
Deferred income tax expense — Real Estate Groups(6)			43,981			65,790
Deferred income tax expense — Non Real-Estate Groups:(6)
	Gain on disposition of other investments		135			(151	)
	Gain on disposition of Lumber Group		—			4,568
	Provision for decline in real estate		(587	)		—
Current income tax expense on non-operating earnings:(6)
	Gain on disposition of other investments		60			324
	Gain on disposition included in discontinued operations		(811	)		11,215
	Gain on disposition recorded on equity method		8,147			(209	)
Straight-line rent adjustment(4)			(10,660	)		(3,282	)
Provision for decline in real estate, net of minority interest			6,442			—
Provision for decline in real estate recorded on equity method			704			—
Gain on disposition recorded on equity method			(21,023	)		(31,996	)
Gain on disposition of other investments			(506	)		(438	)
Discontinued operations:(1)
	Gain on disposition of rental properties		(43,198	)		(71,325	)
	Gain on disposition of Lumber Group		—			(20,920	)
	Minority interest — gain on sale		—			3,680
Cumulative effect of change in accounting principle, net of tax			—			11,261
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)(2)		$	270,496		$	245,032

(1)	Pursuant to the definition of a component of an entity of SFAS No. 144, assuming no significant continuing involvement, all earnings of properties and a division which have been sold or held for sale are reported as discontinued operations.
(2)	The Company uses an additional measure, along with net earnings, to report its operating results. This measure, referred to as Earnings Before Depreciation, Amortization and Deferred Taxes (“EBDT”), is not a measure of operating results as defined by generally accepted accounting principles and may not be directly comparable to similarly-titled measures reported by other companies. The Company believes that EBDT provides additional information about its operations, and along with net earnings, is necessary to understand its operating results. EBDT is defined as net earnings excluding the following items: i) gain (loss) on disposition of operating properties, divisions and other investments (net of tax); ii) the adjustment to recognize rental revenues and rental expense using the straight-line method; iii) noncash charges from Forest City Rental Properties Corporation, a wholly-owned subsidiary of Forest City Enterprises, Inc., for depreciation, amortization (including amortization of mortgage procurement costs) and deferred income taxes; iv) provision for decline in real estate (net of tax); v) extraordinary items (net of tax); and vi) cumulative effect of change in accounting principle (net of tax).
(3)	Amount represents depreciation expense for certain syndicated properties accounted for on the equity method of accounting under both full consolidation and pro-rata consolidation (a non-GAAP financial measure).
(4)	The Company recognizes minimum rents on a straight-line basis over the term of the related lease pursuant to the provision of SFAS No. 13, “Accounting for Leases.” The straight-line rent adjustment is recorded as an increase or decrease to revenue from Forest City Rental Properties Corporation, a wholly-owned subsidiary of Forest City Enterprises, Inc., with the applicable offset to either accounts receivable or accounts payable, as appropriate.
(5)	The following table provides detail of depreciation and amortization and amortization of mortgage procurement costs. The Company’s Real Estate Groups are owned by Forest City Rental Properties Corporation, a wholly-owned subsidiary engaged in the ownership, development, acquisition and management of real estate projects, including apartment complexes, regional malls and retail centers, hotels, office buildings and mixed-use facilities, as well as large land development projects.

							Amortization of Mortgage
	Depreciation and Amortization						Procurement Costs
	Years Ended January 31,						Years Ended January 31,
	2006			2005			2006			2005
Full Consolidation	$	174,792		$	153,085		$	12,547		$	13,427
Non-Real Estate Groups		(1,104	)		(1,086	)		(369	)		(243	)
Real Estate Groups Full Consolidation		173,688			151,999			12,178			13,184
Real Estate Groups related to minority interest		(14,355	)		(10,870	)		(2,280	)		(2,825	)
Real Estate Groups Equity Method		26,905			27,163			1,244			1,064
Real Estate Groups Discontinued Operations		6,477			10,680			436			677
Real Estate Groups Pro-Rata Consolidation	$	192,715		$	178,972		$	11,578		$	12,100

39

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Reconciliation of Net Earnings to Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)⁽²⁾ (continued)

(6) The following table provides detail of Income Tax Expense (Benefit):

		Years Ended January 31,
		2006			2005
		(in thousands)
(A)	Operating earnings
	Current	$	(6,944	)	$	(12,972	)
	Deferred		24,626			40,057
			17,682			27,085
(B)	Provision for decline in real estate
	Deferred		(2,490	)		–
	Deferred-Equity method investment		(272	)		–
			(2,762	)		–
(C)	Gain on disposition of other investments
	Current – Non-Real Estate Groups		60			324
	Deferred – Non-Real Estate Groups		135			(151	)
			195			173
(D)	Gain on disposition recorded on equity method
	Current		8,147			(209	)
	Deferred		(24	)		12,864
			8,123			12,655
	Subtotal(A)(B)(C)(D)
	Current		1,263			(12,857	)
	Deferred		21,975			52,770
	Income tax expense		23,238			39,913
(E)	Discontinued operations – Rental Properties
	Operating earnings
	Current		(3,412	)		(3,209	)
	Deferred		1,025			272
			(2,387	)		(2,937	)
	Gain on disposition of rental properties
	Current		(811	)		6,364
	Deferred		17,504			20,388
			16,693			26,752
			14,306			23,815
	Subtotal(A)(B)(C)(D)(E)
	Current		(2,960	)		(9,702	)
	Deferred		40,504			73,430
			37,544			63,728
(F)	Discontinued operations – Lumber Group
	Operating earnings
	Current		–			4,852
	Deferred		–			(7	)
			–			4,845
	Gain on disposition of Lumber Group
	Current		–			4,851
	Deferred		–			4,568
			–			9,419
			–			14,264
	Subtotal(E)(F)		14,306			38,079
	Grand Total(A)(B)(C)(D)(E)(F)
	Current		(2,960	)		1
	Deferred		40,504			77,991
		$	37,544		$	77,992
	Recap of Grand Total:
	Real Estate Groups
	Current	$	5,356		$	10,847
	Deferred		43,981			65,790
			49,337			76,637
	Non-Real Estate Groups
	Current		(8,316	)		(10,846	)
	Deferred		(3,477	)		12,201
			(11,793	)		1,355
	Grand Total	$	37,544		$	77,992

40

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31,2006 (in thousands)

			Commercial Group 2005														Residential Group 2005
								Plus														Plus
			Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
			Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues =from real estate operations			$	244,187		$	42,315	$	23,457		$	9,239		$	234,568		$	57,941		$	3,824	$	29,837		$	1,279		$	85,233
Exclude straight-line rent adjustment				(6,377	)		—		—			—			(6,377	)		(11	)		—		—			—			(11	)
Adjusted revenues				237,810			42,315		23,457			9,239			228,191			57,930			3,824		29,837			1,279			85,222
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				116,419			14,081		13,947			7,082			123,367			41,099			2,408		16,733			1,069			56,493
Exclude straight-line rent adjustment				(1,605	)		—		—			(321	)		(1,926	)		—			—		—			—			—
Adjusted operating expenses				114,814			14,081		13,947			6,761			121,441			41,099			2,408		16,733			1,069			56,493
Add interest income				1,355			303		(153	)		35			934			1,405			27		719			103			2,200
Add equity in earnings of unconsolidated entities				2,300			—		(2,398	)		—			(98	)		514			—		(658	)		—			(144	)
Add back equity method depreciation and amortization expense				2,745			—		(2,745	)		—			—			4,673			—		(4,673	)		—			—
Net operating income				129,396			28,537		4,214			2,513			107,586			23,423			1,443		8,492			313			30,785
Interest expense, including early extinguishment of debt				48,781			5,189		4,214			2,770			50,576			11,631			942		8,492			1,470			20,651
Income tax expense (benefit)				(12,327	)		—		—			(300	)		(12,627	)		1,595			—		—			(684	)		911
Minority interest in earnings before depreciation and amortization				23,348			23,348		—			—			—			501			501		—			—			—
Add: EBDT from discontinued operations				43			—		—			(43	)		—			(473	)		—		—			473			—
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	69,637		$	—	$	—		$	—		$	69,637		$	9,223		$	—	$	—		$	—		$	9,223
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	69,637		$	—	$	—		$	—		$	69,637		$	9,223		$	—	$	—		$	—		$	9,223
	Depreciation and amortization — Real Estate Groups			(32,223	)		—		—			(749	)		(32,972	)		(21,013	)		—		—			(173	)		(21,186	)
	Amortization of mortgage procurement costs — Real Estate Groups			(2,303	)		—		—			(51	)		(2,354	)		(556	)		—		—			(9	)		(565	)
	Deferred taxes — Real Estate Groups			(22,487	)		—		—			232			(22,255	)		8,435			—		—			(166	)		8,269
	Straight-line rent adjustment			4,772			—		—			(321	)		4,451			11			—		—			—			11
	Gain on disposition of rental properties and other investments, net of tax			—			—		—			—			—			—			—		—			20,691			20,691
	Provision for decline in real estate, net of tax and minority interest			—			—		—			—			—			—			—		—			—			—
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		(749	)		—		—			749			—			(173	)		—		—			173			—
		Amortization of mortgage procurement costs — Real Estate Groups		(51	)		—		—			51			—			(9	)		—		—			9			—
		Deferred taxes — Real Estate Groups		232			—		—			(232	)		—			(166	)		—		—			166			—
		Straight-line rent adjustment		(321	)		—		—			321			—			—			—		—			—			—
		Gain on disposition of rental properties		—			—		—			—			—			20,691			—		—			(20,691	)		—
	Net earnings		$	16,507		$	—	$	—		$	—		$	16,507		$	16,443		$	—	$	—		$	—		$	16,443

41

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31,2006 (in thousands) (continued)

			Land Development Group 2005													The Nets 2005
								Plus													Plus
			Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
			Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
			(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations			$	30,628		$	2,810	$	25,767		$	—	$	53,585		$	—		$	—	$	7,531	$	—	$	7,531
Exclude straight- line rent adjustment				(15	)		—		—			—		(15	)		—			—		—		—		—
Adjusted revenues				30,613			2,810		25,767			—		53,570			—			—		7,531		—		7,531
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				18,559			1,335		12,246			—		29,470			—			—		14,136		—		14,136
Exclude straight- line rent adjustment				—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses				18,559			1,335		12,246			—		29,470			—			—		14,136		—		14,136
Add interest income				6,214			653		26			—		5,587			—			—		121		—		121
Add equity in earnings of unconsolidated entities				13,916			—		(13,385	)		—		531			(7,537	)		—		7,484		—		(53	)
Add back equity method depreciation and amortization expense				—			—		—			—		—			—			—		—		—		—
Net operating income				32,184			2,128		162			—		30,218			(7,537	)		—		1,000		—		(6,537	)
Interest expense, including early extinguishment of debt				1,979			131		162			—		2,010			—			—		1,000		—		1,000
Income tax expense (benefit)				8,050			—		—			—		8,050			(1,858	)		—		—		—		(1,858	)
Minority interest in earnings before depreciation and amortization				1,997			1,997		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations				—			—		—			—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	20,158		$	—	$	—		$	—	$	20,158		$	(5,679	)	$	—	$	—	$	—	$	(5,679	)
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	20,158		$	—	$	—		$	—	$	20,158		$	(5,679	)	$	—	$	—	$	—	$	(5,679	)
	Depreciation and amortization — Real Estate Groups			(44	)		—		—			—		(44	)		—			—		—		—		—
	Amortization of mortgage procurement costs — Real Estate Groups			—			—		—			—		—			—			—		—		—		—
	Deferred taxes — Real Estate Groups			(4,371	)		—		—			—		(4,371	)		—			—		—		—		—
	Straight-line rent adjustment			15			—		—			—		15			—			—		—		—		—
	Gain on disposition of rental properties and other investments, net of tax			—			—		—			—		—			—			—		—		—		—
	Provision for decline in real estate, net of tax and minority interest			(1,072	)		—		—			—		(1,072	)		—			—		—		—		—
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
		Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
		Deferred taxes — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
		Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
		Gain on disposition of rental properties		—			—		—			—		—			—			—		—		—		—
	Net earnings		$	14,686		$	—	$	—		$	—	$	14,686		$	(5,679	)	$	—	$	—	$	—	$	(5,679	)

42

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31,2006 (in thousands) (continued)

			Corporate Activities 2005												Total 2005
								Plus												Plus
			Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
			Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations			$	—		$	—	$	—	$	—	$	—		$	332,756		$	48,949	$	86,592		$	10,518		$	380,917
Exclude straight- line rent adjustment				—			—		—		—		—			(6,403	)		—		—			—			(6,403	)
Adjusted revenues				—			—		—		—		—			326,353			48,949		86,592			10,518			374,514
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				10,825			—		—		—		10,825			186,902			17,824		57,062			8,151			234,291
Exclude straight- line rent adjustment				—			—		—		—		—			(1,605	)		—		—			(321	)		(1,926	)
Adjusted operating expenses				10,825			—		—		—		10,825			185,297			17,824		57,062			7,830			232,365
Add interest income				377			—		—		—		377			9,351			983		713			138			9,219
Add equity in earnings of unconsolidated entities				(21	)		—		—		—		(21	)		9,172			—		(8,957	)		—			215
Add back equity method depreciation and amortization expense				—			—		—		—		—			7,418			—		(7,418	)		—			—
Net operating income				(10,469	)		—		—		—		(10,469	)		166,997			32,108		13,868			2,826			151,583
Interest expense, including early extinguishment of debt				12,837			—		—		—		12,837			75,228			6,262		13,868			4,240			87,074
Income tax expense (benefit)				(3,624	)		—		—		—		(3,624	)		(8,164	)		—		—			(984	)		(9,148	)
Minority interest in earnings before depreciation and amortization				—			—		—		—		—			25,846			25,846		—			—			—
Add: EBDT from discontinued operations				—			—		—		—		—			(430	)		—		—			430			—
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	(19,682	)	$	—	$	—	$	—	$	(19,682	)	$	73,657		$	—	$	—		$	—		$	73,657
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	(19,682	)	$	—	$	—	$	—	$	(19,682	)	$	73,657		$	—	$	—		$	—		$	73,657
	Depreciation and amortization — Real Estate Groups			—			—		—		—		—			(53,280	)		—		—			(922	)		(54,202	)
	Amortization of mortgage procurement costs — Real Estate Groups			—			—		—		—		—			(2,859	)		—		—			(60	)		(2,919	)
	Deferred taxes — Real Estate Groups			6,021			—		—		—		6,021			(12,402	)		—		—			66			(12,336	)
	Straight-line rent adjustment			—			—		—		—		—			4,798			—		—			(321	)		4,477
	Gain on disposition of rental properties and other investments, net of tax			(61	)		—		—		—		(61	)		(61	)		—		—			20,691			20,630
	Provision for decline in real estate, net of tax and minority interest			—			—		—		—		—			(1,072	)		—		—			—			(1,072	)
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(922	)		—		—			922			—
		Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(60	)		—		—			60			—
		Deferred taxes — Real Estate Groups		—			—		—		—		—			66			—		—			(66	)		—
		Straight-line rent adjustment		—			—		—		—		—			(321	)		—		—			321			—
		Gain on disposition of rental properties		—			—		—		—		—			20,691			—		—			(20,691	)		—
Net earnings			$	(13,722	)	$	—	$	—	$	—	$	(13,722	)	$	28,235		$	—	$	—		$	—		$	28,235

43

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Year Ended January 31, 2006 (in thousands)

			Commercial Group 2005														Residential Group 2005
								Plus														Plus
			Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
			Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations			$	878,648		$	117,775	$	96,766		$	43,349		$	900,988		$	214,258		$	14,965	$	121,084		$	11,300		$	331,677
Exclude straight-line rent adjustment				(18,337	)		—		—			—			(18,337	)		(40	)		—		—			—			(40	)
Adjusted revenues				860,311			117,775		96,766			43,349			882,651			214,218			14,965		121,084			11,300			331,637
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				447,706			51,724		54,970			33,171			484,123			145,220			9,945		67,861			6,211			209,347
Exclude straight-line rent adjustment				(6,159	)		—		—			(1,573	)		(7,732	)		—			—		—			—			—
Adjusted operating expenses				441,547			51,724		54,970			31,598			476,391			145,220			9,945		67,861			6,211			209,347
Add interest income				4,614			862		(863	)		74			2,963			3,965			41		1,656			209			5,789
Add equity in earnings of unconsolidated entities				24,637			—		(24,503	)		—			134			13,815			—		(14,235	)		—			(420	)
Remove gain on disposition recorded on equity method				(13,145	)		—		13,145			—			—			(7,878	)		—		7,878			—			—
Add back provision for decline in real estate recorded on equity method				704			—		(704	)		—			—			—			—		—			—			—
Add back equity method depreciation and amortization expense				11,211			—		(11,211	)		—			—			16,938			—		(16,938	)		—			—
Net operating income				446,785			66,913		17,660			11,825			409,357			95,838			5,061		31,584			5,298			127,659
Interest expense, including early extinguishment of debt				181,024			23,805		17,660			8,150			183,029			46,897			4,876		31,584			6,664			80,269
Income tax expense (benefit)				(1,941	)		—		—			(1,603	)		(3,544	)		(4,205	)		—		—			(1,809	)		(6,014	)
Minority interest in earnings before depreciation and amortization				43,108			43,108		—			—			—			185			185		—			—			—
Add: EBDT from discontinued operations				5,278			—		—			(5,278	)		—			443			—		—			(443	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	229,872		$	—	$	—		$	—		$	229,872		$	53,404		$	—	$	—		$	—		$	53,404
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	229,872		$	—	$	—		$	—		$	229,872		$	53,404		$	—	$	—		$	—		$	53,404
	Depreciation and amortization — Real Estate Groups			(126,482	)		—		—			(3,874	)		(130,356	)		(59,566	)		—		—			(2,603	)		(62,169	)
	Amortization of mortgage procurement costs — Real Estate Groups			(8,713	)		—		—			(336	)		(9,049	)		(2,429	)		—		—			(100	)		(2,529	)
	Deferred taxes — Real Estate Groups			(33,289	)		—		—			(789	)		(34,078	)		7,684			—		—			(236	)		7,448
	Straight-line rent adjustment			12,178			—		—			(1,573	)		10,605			40			—		—			—			40
	Gain on disposition of rental properties and other investments, net of tax			—			—		8,064			—			8,064			—			—		4,836			26,505			31,341
	Provision for decline in real estate, net of tax and minority interest			(920	)		—		(432	)		—			(1,352	)		(1,960	)		—		—			—			(1,960	)
	Gain on disposition recorded on equity method, net of tax			8,064			—		(8,064	)		—			—			4,836			—		(4,836	)		—			—
	Provision for decline in real estate recorded on equity method, net of tax			(432	)		—		432			—			—			—			—		—			—			—
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		(3,874	)		—		—			3,874			—			(2,603	)		—		—			2,603			—
		Amortization of mortgage procurement costs — Real Estate Groups		(336	)		—		—			336			—			(100	)		—		—			100			—
		Deferred taxes — Real Estate Groups		(789	)		—		—			789			—			(236	)		—		—			236			—
		Straight-line rent adjustment		(1,573	)		—		—			1,573			—			—			—		—			—			—
		Gain on disposition of rental properties		—			—		—			—			—			26,505			—		—			(26,505	)		—
	Net earnings		$	73,706		$	—	$	—		$	—		$	73,706		$	25,575		$	—	$	—		$	—		$	25,575

44

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Year Ended January 31, 2006 (in thousands) (continued)

			Land Development Group 2005													The Nets 2005
								Plus													Plus
			Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
			Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
			(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations			$	107,869		$	7,863	$	73,102		$	—	$	173,108		$	—		$	—	$	27,330	$	—	$	27,330
Exclude straight-line rent adjustment				(15	)		—		—			—		(15	)		—			—		—		—		—
Adjusted revenues				107,854			7,863		73,102			—		173,093			—			—		27,330		—		27,330
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				64,872			3,922		38,112			—		99,062			—			—		49,078		—		49,078
Exclude straight-line rent adjustment				—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses				64,872			3,922		38,112			—		99,062			—			—		49,078		—		49,078
Add interest income				17,716			1,763		137			—		16,090			—			—		288		—		288
Add equity in earnings of unconsolidated entities				41,304			—		(34,774	)		—		6,530			(24,534	)		—		24,452		—		(82	)
Remove gain on disposition recorded on equity method				—			—		—			—		—			—			—		—		—		—
Add back provision for decline in real estate recorded on equity method				—			—		—			—		—			—			—		—		—		—
Add back equity method depreciation and amortization expense				—			—		—			—		—			—			—		—		—		—
Net operating income				102,002			5,704		353			—		96,651			(24,534	)		—		2,992		—		(21,542	)
Interest expense, including early extinguishment of debt				7,606			434		353			—		7,525			—			—		2,992		—		2,992
Income tax expense (benefit)				29,789			—		—			—		29,789			(8,427	)		—		—		—		(8,427	)
Minority interest in earnings before depreciation and amortization				5,270			5,270		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations				—			—		—			—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	59,337		$	—	$	—		$	—	$	59,337		$	(16,107	)	$	—	$	—	$	—	$	(16,107	)
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	59,337		$	—	$	—		$	—	$	59,337		$	(16,107	)	$	—	$	—	$	—	$	(16,107	)
	Depreciation and amortization — Real Estate Groups			(190	)		—		—			—		(190	)		—			—		—		—		—
	Amortization of mortgage procurement costs — Real Estate Groups			—			—		—			—		—			—			—		—		—		—
	Deferred taxes — Real Estate Groups			(6,004	)		—		—			—		(6,004	)		—			—		—		—		—
	Straight-line rent adjustment			15			—		—			—		15			—			—		—		—		—
	Gain on disposition of rental properties and other investments, net of tax			—			—		—			—		—			—			—		—		—		—
	Provision for decline in real estate, net of tax and minority interest			(1,072	)		—		—			—		(1,072	)		—			—		—		—		—
	Gain on disposition recorded on equity method, net of tax			—			—		—			—		—			—			—		—		—		—
	Provision for decline in real estate recorded on equity method, net of tax			—			—		—			—		—			—			—		—		—		—
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
		Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
		Deferred taxes — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
		Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
		Gain on disposition of rental properties		—			—		—			—		—			—			—		—		—		—
Net earnings			$	52,086		$	—	$	—		$	—	$	52,086		$	(16,107	)	$	—	$	—	$	—	$	(16,107	)

45

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Year Ended January 31, 2006 (in thousands) (continued)

			Corporate Activities 2005												Total 2005
								Plus												Plus
			Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
			Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations			$	—		$	—	$	—	$	—	$	—		$	1,200,775		$	140,603	$	318,282		$	54,649		$	1,433,103
Exclude straight-line rent adjustment				—			—		—		—		—			(18,392	)		—		—			—			(18,392	)
Adjusted revenues				—			—		—		—		—			1,182,383			140,603		318,282			54,649			1,414,711
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				37,971			—		—		—		37,971			695,769			65,591		210,021			39,382			879,581
Exclude straight-line rent adjustment				—			—		—		—		—			(6,159	)		—		—			(1,573	)		(7,732	)
Adjusted operating expenses				37,971			—		—		—		37,971			689,610			65,591		210,021			37,809			871,849
Add interest income				1,800			—		—		—		1,800			28,095			2,666		1,218			283			26,930
Add equity in earnings of unconsolidated entities				(21	)		—		—		—		(21	)		55,201			—		(49,060	)		—			6,141
Remove gain on disposition recorded on equity method				—			—		—		—		—			(21,023	)		—		21,023			—			—
Add back provision for decline in real estate recorded on equity method				—			—		—		—		—			704			—		(704	)		—			—
Add back equity method depreciation and amortization expense				—			—		—		—		—			28,149			—		(28,149	)		—			—
Net operating income				(36,192	)		—		—		—		(36,192	)		583,899			77,678		52,589			17,123			575,933
Interest expense, including early extinguishment of debt				45,003			—		—		—		45,003			280,530			29,115		52,589			14,814			318,818
Income tax expense (benefit)				(25,185	)		—		—		—		(25,185	)		(9,969	)		—		—			(3,412	)		(13,381	)
Minority interest in earnings before depreciation and amortization				—			—		—		—		—			48,563			48,563		—			—			—
Add: EBDT from discontinued operations							—		—		—		—			5,721			—		—			(5,721	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	(56,010	)	$	—	$	—	$	—	$	(56,010	)	$	270,496		$	—	$	—		$	—		$	270,496
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	(56,010	)	$	—	$	—	$	—	$	(56,010	)	$	270,496		$	—	$	—		$	—		$	270,496
	Depreciation and amortization — Real Estate Groups			—			—		—		—		—			(186,238	)		—		—			(6,477	)		(192,715	)
	Amortization of mortgage procurement costs — Real Estate Groups			—			—		—		—		—			(11,142	)		—		—			(436	)		(11,578	)
	Deferred taxes — Real Estate Groups			3,958			—		—		—		3,958			(27,651	)		—		—			(1,025	)		(28,676	)
	Straight-line rent adjustment			—			—		—		—		—			12,233			—		—			(1,573	)		10,660
	Gain on disposition of rental properties and other investments, net of tax			311			—		—		—		311			311			—		12,900			26,505			39,716
	Provision for decline in real estate, net of tax and minority interest			—			—		—		—		—			(3,952	)		—		(432	)		—			(4,384	)
	Gain on disposition recorded on equity method, net of tax			—			—		—		—		—			12,900			—		(12,900	)		—			—
	Provision for decline in real estate recorded on equity method, net of tax			—			—		—		—		—			(432	)		—		432			—			—
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(6,477	)		—		—			6,477			—
		Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(436	)		—		—			436			—
		Deferred taxes — Real Estate Groups		—			—		—		—		—			(1,025	)		—		—			1,025			—
		Straight-line rent adjustment		—			—		—		—		—			(1,573	)		—		—			1,573			—
		Gain on disposition of rental properties		—			—		—		—		—			26,505			—		—			(26,505	)		—
Net earnings			$	(51,741	)	$	—	$	—	$	—	$	(51,741	)	$	83,519		$	—	$	—		$	—		$	83,519

46

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Three Months Ended January 31, 2005 (in thousands)

			Commercial Group 2004														Residential Group 2004
								Plus															Plus
			Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
			Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority			Investments at			Discontinued			Consolidation
			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations			$	199,268		$	29,485	$	22,905		$	10,684		$	203,372		$	51,289		$	4,081		$	29,810		$	3,988		$	81,006
Exclude straight-line rent adjustment				(2,640	)		—		—			—			(2,640	)		(56	)		—			—			—			(56	)
Adjusted revenues				196,628			29,485		22,905			10,684			200,732			51,233			4,081			29,810			3,988			80,950
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				104,515			13,400		12,750			8,603			112,468			33,947			3,063			17,116			2,470			50,470
Exclude straight-line rent adjustment				(1,617	)		—		—			(443	)		(2,060	)		—			—			—			—			—
Adjusted operating expenses				102,898			13,400		12,750			8,160			110,408			33,947			3,063			17,116			2,470			50,470
Add interest income				2,272			90		(119	)		77			2,140			1,605			11			486			38			2,118
Add equity in earnings of unconsolidated entities				991			—		(2,078	)		—			(1,087	)		464			—			(997	)		—			(533	)
Add back equity method depreciation and amortization expense				2,638			—		(2,638	)		—			—			4,746			—			(4,746	)		—			—
Net operating income				99,631			16,175		5,320			2,601			91,377			24,101			1,029			7,437			1,556			32,065
Interest expense, including early extinguishment of debt				44,899			6,821		5,320			1,824			45,222			11,482			1,150			7,437			3,849			21,618
Income tax expense (benefit)				4,631			—		—			(217	)		4,414			(749	)		—			—			(1,355	)		(2,104	)
Minority interest in earnings before depreciation and amortization				9,354			9,354		—			—			—			(121	)		(121	)		—			—			—
Add: EBDT from discontinued operations				994			—		—			(994	)		—			(938	)		—			—			938			—
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	41,741		$	—	$	—		$	—		$	41,741		$	12,551		$	—		$	—		$	—		$	12,551
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	41,741		$	—	$	—		$	—		$	41,741		$	12,551		$	—		$	—		$	—		$	12,551
	Depreciation and amortization — Real Estate Groups			(35,015	)		—		—			(1,085	)		(36,100	)		(13,457	)		—			—			(1,316	)		(14,773	)
	Amortization of mortgage procurement costs — Real Estate Groups			(1,407	)		—		—			(95	)		(1,502	)		(878	)		—			—			(35	)		(913	)
	Deferred taxes — Real Estate Groups			(1,966	)		—		—			54			(1,912	)		131			—			—			86			217
	Straight-line rent adjustment			1,023			—		—			(443	)		580			56			—			—			—			56
	Gain on disposition of rental properties and other investments, net of tax			—			—		—			252			252			—			—			—			9,184			9,184
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		(1,085	)		—		—			1,085			—			(1,316	)		—			—			1,316			—
		Amortization of mortgage procurement costs — Real Estate Groups		(95	)		—		—			95			—			(35	)		—			—			35			—
		Deferred taxes — Real Estate Groups		54			—		—			(54	)		—			86			—			—			(86	)		—
		Straight-line rent adjustment		(443	)		—		—			443			—			—			—			—			—			—
		Gain on disposition of Lumber Group		—			—		—			—			—			—			—			—			—			—
		Gain on disposition of rental properties		252			—		—			(252	)		—			9,184			—			—			(9,184	)		—
	Net earnings		$	3,059		$	—	$	—		$	—		$	3,059		$	6,322		$	—		$	—		$	—		$	6,322

47

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Three Months Ended January 31, 2005 (in thousands) (continued)

			Land Development Group 2004													Lumber Group 2004
								Plus													Plus
			Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
			Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
			(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations			$	21,575		$	2,034	$	2,272		$	—	$	21,813		$	—		$	—	$	—	$	—	$	—
Exclude straight- line rent adjustment				—			—		—			—		—			—			—		—		—		—
Adjusted revenues				21,575			2,034		2,272			—		21,813			—			—		—		—		—
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				13,467			986		2,446			—		14,927			—			—		—		—		—
Exclude straight- line rent adjustment				—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses				13,467			986		2,446			—		14,927			—			—		—		—		—
Add interest income				4,458			438		29			—		4,049			—			—		—		—		—
Add equity in earnings of unconsolidated entities				1,505			—		22			—		1,527			—			—		—		—		—
Add back equity method depreciation and amortization expense				—			—		—			—		—			—			—		—		—		—
Net operating income				14,071			1,486		(123	)		—		12,462			—			—		—		—		—
Interest expense, including early extinguishment of debt				1,996			125		(123	)		—		1,748			—			—		—		—		—
Income tax expense (benefit)				10,644			—		—			—		10,644			—			—		—		—		—
Minority interest in earnings before depreciation and amortization				1,361			1,361		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations				—			—		—			—		—			(1,219	)		—		—		—		(1,219	)
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	70		$	—	$	—		$	—	$	70		$	(1,219	)	$	—	$	—	$	—	$	(1,219	)
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	70		$	—	$	—		$	—	$	70		$	(1,219	)	$	—	$	—	$	—	$	(1,219	)
	Depreciation and amortization — Real Estate Groups			(50	)		—		—			—		(50	)		—			—		—		—		—
	Amortization of mortgage procurement costs — Real Estate Groups			—			—		—			—		—			—			—		—		—		—
	Deferred taxes — Real Estate Groups			1,466			—		—			—		1,466			—			—		—		—		—
	Straight-line rent adjustment			—			—		—			—		—			—			—		—		—		—
	Gain on disposition of rental properties and other investments, net of tax			—			—		—			—		—			—			—		—		—		—
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
		Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
		Deferred taxes — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
		Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
		Gain on disposition of Lumber Group		—			—		—			—		—			12,162			—		—		—		12,162
		Gain on disposition of rental properties		—			—		—			—		—			—			—		—		—		—
Net earnings			$	1,486		$	—	$	—		$	—	$	1,486		$	10,943		$	—	$	—	$	—	$	10,943

48

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Three Months Ended January 31, 2005 (in thousands) (continued)

			The Nets 2004												Corporate Activities 2004
								Plus												Plus
			Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
			Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations			$	—		$	—	$	5,303	$	—	$	5,303		$	—		$	—	$	—	$	—	$	—
Exclude straight- line rent adjustment				—			—		—		—		—			—			—		—		—		—
Adjusted revenues				—			—		5,303		—		5,303			—			—		—		—		—
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				—			—		9,323		—		9,323			11,405			—		—		—		11,405
Exclude straight- line rent adjustment				—			—		—		—		—			—			—		—		—		—
Adjusted operating expenses				—			—		9,323		—		9,323			11,405			—		—		—		11,405
Add interest income				—			—		38		—		38			149			—		—		—		149
Add equity in earnings of unconsolidated entities				(9,259	)		—		4,344		—		(4,915	)		20			—		—		—		20
Add back equity method depreciation and amortization expense				—			—		—		—		—			—			—		—		—		—
Net operating income				(9,259	)		—		362		—		(8,897	)		(11,236	)		—		—		—		(11,236	)
Interest expense, including early extinguishment of debt				—			—		362		—		362			8,892			—		—		—		8,892
Income tax expense (benefit)				(4,136	)		—		—		—		(4,136	)		(8,439	)		—		—		—		(8,439	)
Minority interest in earnings before depreciation and amortization				—			—		—		—		—			—			—		—		—		—
Add: EBDT from discontinued operations				—			—		—		—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	(5,123	)	$	—	$	—	$	—	$	(5,123	)	$	(11,689	)	$	—	$	—	$	—	$	(11,689	)
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	(5,123	)	$	—	$	—	$	—	$	(5,123	)	$	(11,689	)	$	—	$	—	$	—	$	(11,689	)
	Depreciation and amortization — Real Estate Groups			—			—		—		—		—			—			—		—		—		—
	Amortization of mortgage procurement costs — Real Estate Groups			—			—		—		—		—			—			—		—		—		—
	Deferred taxes — Real Estate Groups			—			—		—		—		—			577			—		—		—		577
	Straight-line rent adjustment			—			—		—		—		—			—			—		—		—		—
	Gain on disposition of rental properties and other investments, net of tax			—			—		—		—		—			265			—		—		—		265
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		—			—		—		—		—			—			—		—		—		—
		Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			—			—		—		—		—
		Deferred taxes — Real Estate Groups		—			—		—		—		—			—			—		—		—		—
		Straight-line rent adjustment		—			—		—		—		—			—			—		—		—		—
		Gain on disposition of Lumber Group		—			—		—		—		—			—			—		—		—		—
		Gain on disposition of rental properties		—			—		—		—		—			—			—		—		—		—
Net earnings			$	(5,123	)	$	—	$	—	$	—	$	(5,123	)	$	(10,847	)	$	—	$	—	$	—	$	(10,847	)

49

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Three Months Ended January 31, 2005 (in thousands) (continued)

			Total 2004
								Plus
			Full			Less		Unconsolidated			Plus			Pro-Rata
			Consolidation			Minority		Investments at			Discontinued			Consolidation
			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations			$	272,132		$	35,600	$	60,290		$	14,672		$	311,494
Exclude straight- line rent adjustment				(2,696	)		—		—			—			(2,696	)
Adjusted revenues				269,436			35,600		60,290			14,672			308,798
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				163,334			17,449		41,635			11,073			198,593
Exclude straight- line rent adjustment				(1,617	)		—		—			(443	)		(2,060	)
Adjusted operating expenses				161,717			17,449		41,635			10,630			196,533
Add interest income				8,484			539		434			115			8,494
Add equity in earnings of unconsolidated entities				(6,279	)		—		1,291			—			(4,988	)
Add back equity method depreciation and amortization expense				7,384			—		(7,384	)		—			—
Net operating income				117,308			18,690		12,996			4,157			115,771
Interest expense, including early extinguishment of debt				67,269			8,096		12,996			5,673			77,842
Income tax expense (benefit)				1,951			—		—			(1,572	)		379
Minority interest in earnings before depreciation and amortization				10,594			10,594		—			—			—
Add: EBDT from discontinued operations				(1,163	)		—		—			(56	)		(1,219	)
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	36,331		$	—	$	—		$	—		$	36,331
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	36,331		$	—	$	—		$	—		$	36,331
	Depreciation and amortization — Real Estate Groups			(48,522	)		—		—			(2,401	)		(50,923	)
	Amortization of mortgage procurement costs — Real Estate Groups			(2,285	)		—		—			(130	)		(2,415	)
	Deferred taxes — Real Estate Groups			208			—		—			140			348
	Straight-line rent adjustment			1,079			—		—			(443	)		636
	Gain on disposition of rental properties and other investments, net of tax			265			—		—			9,436			9,701
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		(2,401	)		—		—			2,401			—
		Amortization of mortgage procurement costs — Real Estate Groups		(130	)		—		—			130			—
		Deferred taxes — Real Estate Groups		140			—		—			(140	)		—
		Straight-line rent adjustment		(443	)		—		—			443			—
		Gain on disposition of Lumber Group		12,162			—		—			—			12,162
		Gain on disposition of rental properties		9,436			—		—			(9,436	)		—
	Net earnings		$	5,840		$	—	$	—		$	—		$	5,840

50

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Year Ended January 31, 2005 (in thousands)

			Commercial Group 2004														Residential Group 2004
								Plus														Plus
			Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
			Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations			$	703,110		$	112,791	$	99,813		$	38,251		$	728,383		$	190,283		$	14,677	$	117,775		$	24,764		$	318,145
Exclude straight-line rent adjustment				(12,840	)		—		—			(849	)		(13,689	)		92			—		—			—			92
Adjusted revenues				690,270			112,791		99,813			37,402			714,694			190,375			14,677		117,775			24,764			318,237
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				355,066			57,493		57,961			27,046			382,580			123,132			10,386		65,396			13,292			191,434
Exclude straight-line rent adjustment				(8,757	)		—		—			(1,558	)		(10,315	)		—			—		—			—			—
Adjusted operating expenses				346,309			57,493		57,961			25,488			372,265			123,132			10,386		65,396			13,292			191,434
Add interest income				7,135			818		(610	)		157			5,864			3,444			24		976			96			4,492
Add equity in earnings of unconsolidated entities				41,005			—		(40,998	)		—			7			7,802			—		(7,716	)		—			86
Remove gain on disposition recorded on equity method				(31,996	)		—		31,996			—			—			—			—		—			—			—
Add back equity method depreciation and amortization expense				11,506			—		(11,506	)		—			—			16,958			—		(16,721	)		—			237
Net operating income				371,611			56,116		20,734			12,071			348,300			95,447			4,315		28,918			11,568			131,618
Interest expense, including early extinguishment of debt				162,205			24,126		20,734			7,387			166,200			38,155			3,533		28,918			11,603			75,143
Income tax expense (benefit)				663			—		—			(1,046	)		(383	)		(9,453	)		—		—			(2,163	)		(11,616	)
Minority interest in earnings before depreciation and amortization				31,990			31,990		—			—			—			782			782		—			—			—
Add: EBDT from discontinued operations				5,730			—		—			(5,730	)		—			2,128			—		—			(2,128	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	182,483		$	—	$	—		$	—		$	182,483		$	68,091		$	—	$	—		$	—		$	68,091
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	182,483		$	—	$	—		$	—		$	182,483		$	68,091		$	—	$	—		$	—		$	68,091
	Depreciation and amortization — Real Estate Groups			(119,074	)		—		—			(4,327	)		(123,401	)		(49,414	)		—		—			(6,353	)		(55,767	)
	Amortization of mortgage procurement costs — Real Estate Groups			(8,400	)		—		—			(516	)		(8,916	)		(3,023	)		—		—			(161	)		(3,184	)
	Deferred taxes — Real Estate Groups			(24,430	)		—		—			(700	)		(25,130	)		(10,059	)		—		—			428			(9,631	)
	Straight-line rent adjustment			4,083			—		—			(709	)		3,374			(92	)		—		—			—			(92	)
	Gain on disposition of rental properties and other investments, net of tax and minority interest			—			—		19,341			4,574			23,915			—			—		—			36,319			36,319
	Gain on disposition recorded on equity method, net of tax			19,341			—		(19,341	)		—			—			—			—		—			—			—
	Cumulative effect of change in accounting principle, net of tax			(477	)		—		—			—			(477	)		(10,784	)		—		—			—			(10,784	)
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		(4,327	)		—		—			4,327			—			(6,353	)		—		—			6,353			—
		Amortization of mortgage procurement costs — Real Estate Groups		(516	)		—		—			516			—			(161	)		—		—			161			—
		Deferred taxes — Real Estate Groups		(700	)		—		—			700			—			428			—		—			(428	)		—
		Straight-line rent adjustment		(709	)		—		—			709			—			—			—		—			—			—
		Gain on disposition of Lumber Group		—			—		—			—			—			—			—		—			—			—
		Gain on disposition of rental properties		4,574			—		—			(4,574	)		—			36,319			—		—			(36,319	)		—
Net earnings			$	51,848		$	—	$	—		$	—		$	51,848		$	24,952		$	—	$	—		$	—		$	24,952

51

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Year Ended January 31, 2005 (in thousands) (continued)

			Land Development Group 2004													Lumber Group 2004
								Plus												Plus
			Full			Less		Unconsolidated			Plus		Pro-Rata			Full		Less		Unconsolidated		Plus		Pro-Rata
			Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation		Minority		Investments at		Discontinued		Consolidation
			(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)		Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations			$	92,657		$	6,418	$	37,933		$	—	$	124,172		$	—	$	—	$	—	$	—	$	—
Exclude straight-line rent adjustment				—			—		—			—		—			—		—		—		—		—
Adjusted revenues				92,657			6,418		37,933			—		124,172			—		—		—		—		—
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				55,445			3,360		25,855					77,940
Exclude straight-line rent adjustment				—			—		—			—		—			—		—		—		—		—
Adjusted operating expenses				55,445			3,360		25,855			—		77,940			—		—		—		—		—
Add interest income				34,475			3,402		100			—		31,173			—		—		—		—		—
Add equity in earnings of unconsolidated entities				16,454			—		(11,630	)		—		4,824			—		—		—		—		—
Remove gain on disposition recorded on equity method				—			—		—			—		—			—		—		—		—		—
Add back equity method depreciation and amortization expense				—			—		—			—		—			—		—		—		—		—
Net operating income				88,141			6,460		548			—		82,229			—		—		—		—		—
Interest expense, including early extinguishment of debt				7,161			376		548			—		7,333			—		—		—		—		—
Income tax expense (benefit)				32,149			—		—			—		32,149			—		—		—		—		—
Minority interest in earnings before depreciation and amortization				6,084			6,084		—			—		—			—		—		—		—		—
Add: EBDT from discontinued operations				—			—		—			—		—			4,545		—		—		—		4,545
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	42,747		$	—	$	—		$	—	$	42,747		$	4,545	$	—	$	—	$	—	$	4,545
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	42,747		$	—	$	—		$	—	$	42,747		$	4,545	$	—	$	—	$	—	$	4,545
	Depreciation and amortization — Real Estate Groups			(41	)		—		—			—		(41	)		—		—		—		—		—
	Amortization of mortgage procurement costs — Real Estate Groups			—			—		—			—		—			—		—		—		—		—
	Deferred taxes — Real Estate Groups			(2,532	)		—		—			—		(2,532	)		—		—		—		—		—
	Straight-line rent adjustment			—			—		—			—		—			—		—		—		—		—
	Gain on disposition of rental properties and other investments, net of tax and minority interest			—			—		—			—		—			—		—		—		—		—
	Gain on disposition recorded on equity method, net of tax			—			—		—			—		—			—		—		—		—		—
	Cumulative effect of change in accounting principle, net of tax			—			—		—			—		—			—		—		—		—		—
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		—			—		—			—		—			—		—		—		—		—
		Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—		—		—		—		—
		Deferred taxes — Real Estate Groups		—			—		—			—		—			—		—		—		—		—
		Straight-line rent adjustment		—			—		—			—		—			—		—		—		—		—
		Gain on disposition of Lumber Group		—			—		—			—		—			11,501		—		—		—		11,501
		Gain on disposition of rental properties		—			—		—			—		—			—		—		—		—		—
	Net earnings		$	40,174		$	—	$	—		$	—	$	40,174		$	16,046	$	—	$	—	$	—	$	16,046

52

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2005 (in thousands) (continued)

			The Nets 2004												Corporate Activities 2004
								Plus												Plus
			Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
			Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations			$	—		$	—	$	5,323	$	—	$	5,323		$	4		$	—	$	—	$	—	$	4
Exclude straight- line rent adjustment				—			—		—		—		—			—			—		—		—		—
Adjusted revenues				—			—		5,323		—		5,323			4			—		—		—		4
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				—			—		10,863		—		10,863			34,962			—		—		—		34,962
Exclude straight- line rent adjustment				—			—		—		—		—			—			—		—		—		—
Adjusted operating expenses				—			—		10,863		—		10,863			34,962			—		—		—		34,962
Add interest income				—			—		84		—		84			248			—		—		—		248
Add equity in earnings of unconsolidated entities				(10,889	)		—		5,974		—		(4,915	)		20			—		—		—		20
Remove gain on disposition recorded on equity method				—			—		—		—		—			—			—		—		—		—
Add back equity method depreciation and amortization expense				—			—		—		—		—			—			—		—		—		—
Net operating income				(10,889	)		—		518		—		(10,371	)		(34,690	)		—		—		—		(34,690	)
Interest expense, including early extinguishment of debt				—			—		518		—		518			35,795			—		—		—		35,795
Income tax expense (benefit)				(4,781	)		—		—		—		(4,781	)		(23,759	)		—		—		—		(23,759	)
Minority interest in earnings before depreciation and amortization				—			—		—		—		—			—			—		—		—		—
Add: EBDT from discontinued operations				—			—		—		—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	(6,108	)	$	—	$	—	$	—	$	(6,108	)	$	(46,726	)	$	—	$	—	$	—	$	(46,726	)
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	(6,108	)	$	—	$	—	$	—	$	(6,108	)	$	(46,726	)	$	—	$	—	$	—	$	(46,726	)
	Depreciation and amortization — Real Estate Groups			—			—		—		—		—			—			—		—		—		—
	Amortization of mortgage procurement costs — Real Estate Groups			—			—		—		—		—			—			—		—		—		—
	Deferred taxes — Real Estate Groups			—			—		—		—		—			4,755			—		—		—		4,755
	Straight-line rent adjustment			—			—		—		—		—			—			—		—		—		—
	Gain on disposition of rental properties and other investments, net of tax and minority interest			—			—		—		—		—			265			—		—		—		265
	Gain on disposition recorded on equity method, net of tax			—			—		—		—		—			—			—		—		—		—
	Cumulative effect of change in accounting principle, net of tax			—			—		—		—		—			—			—		—		—		—
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		—			—		—		—		—			—			—		—		—		—
		Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			—			—		—		—		—
		Deferred taxes — Real Estate Groups		—			—		—		—		—			—			—		—		—		—
		Straight-line rent adjustment		—			—		—		—		—			—			—		—		—		—
		Gain on disposition of Lumber Group		—			—		—		—		—			—			—		—		—		—
		Gain on disposition of rental properties		—			—		—		—		—			—			—		—		—		—
	Net earnings		$	(6,108	)	$	—	$	—	$	—	$	(6,108	)	$	(41,706	)	$	—	$	—	$	—	$	(41,706	)

53

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2005 (in thousands) (continued)

			Total 2004
								Plus
			Full			Less		Unconsolidated			Plus			Pro-Rata
			Consolidation			Minority		Investments at			Discontinued			Consolidation
			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations			$	986,054		$	133,886	$	260,844		$	63,015		$	1,176,027
Exclude straight- line rent adjustment				(12,748	)		—		—			(849	)		(13,597	)
Adjusted revenues				973,306			133,886		260,844			62,166			1,162,430
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups				568,605			71,239		160,075			40,338			697,779
Exclude straight- line rent adjustment				(8,757	)		—		—			(1,558	)		(10,315	)
Adjusted operating expenses				559,848			71,239		160,075			38,780			687,464
Add interest income				45,302			4,244		550			253			41,861
Add equity in earnings of unconsolidated entities				54,392			—		(54,370	)		—			22
Remove gain on disposition recorded on equity method				(31,996	)		—		31,996			—			—
Add back equity method depreciation and amortization expense				28,464			—		(28,227	)		—			237
Net operating income				509,620			66,891		50,718			23,639			517,086
Interest expense, including early extinguishment of debt				243,316			28,035		50,718			18,990			284,989
Income tax expense (benefit)				(5,181	)		—		—			(3,209	)		(8,390	)
Minority interest in earnings before depreciation and amortization				38,856			38,856		—			—			—
Add: EBDT from discontinued operations				12,403			—		—			(7,858	)		4,545
Earnings before depreciation, amortization and deferred taxes (EBDT)			$	245,032		$	—	$	—		$	—		$	245,032
Reconciliation to net earnings:
	Earnings before depreciation, amortization and deferred taxes (EBDT)		$	245,032		$	—	$	—		$	—		$	245,032
	Depreciation and amortization — Real Estate Groups			(168,529	)		—		—			(10,680	)		(179,209	)
	Amortization of mortgage procurement costs — Real Estate Groups			(11,423	)		—		—			(677	)		(12,100	)
	Deferred taxes — Real Estate Groups			(32,266	)		—		—			(272	)		(32,538	)
	Straight-line rent adjustment			3,991			—		—			(709	)		3,282
	Gain on disposition of rental properties and other investments, net of tax and minority interest			265			—		19,341			40,893			60,499
	Gain on disposition recorded on equity method, net of tax			19,341			—		(19,341	)		—			—
	Cumulative effect of change in accounting principle, net of tax			(11,261	)		—		—			—			(11,261	)
	Discontinued operations, net of tax and minority interest:
		Depreciation and amortization — Real Estate Groups		(10,680	)		—		—			10,680			—
		Amortization of mortgage procurement costs — Real Estate Groups		(677	)		—		—			677			—
		Deferred taxes — Real Estate Groups		(272	)		—		—			272			—
		Straight-line rent adjustment		(709	)		—		—			709			—
		Gain on disposition of Lumber Group		11,501			—		—			—			11,501
		Gain on disposition of rental properties		40,893			—		—			(40,893	)		—
	Net earnings		$	85,206		$	—	$	—		$	—		$	85,206

54