Discontinued Operations and Gain (Loss) on Disposition of Rental Properties

6 Months Ended

Jul. 31, 2011

Discontinued Operations and Gain (Loss) on Disposition of Rental Properties [Abstract]

Discontinued Operations and Gain (Loss) on Disposition of Rental Properties

N. Discontinued Operations and Gain (Loss) on Disposition of Rental Properties

The following table lists rental properties included in discontinued operations:

				Three	Six	Three	Six
		Square Feet/		Months	Months	Months	Months
		Number of Units/	Period	Ended	Ended	Ended	Ended
Property	Location	Rooms	Disposed	7/31/2011	7/31/2011	7/31/2010	7/31/2010
Commercial Group:
Waterfront Station — East 4th & West 4th Buildings	Washington, D.C.	631,000 square feet	Q2-2011	Yes	Yes	Yes	Yes
Charleston Marriott hotel	Charleston, West Virginia	352 rooms	Q1-2011	-	Yes	Yes	Yes
Simi Valley Town Center	Simi Valley, California	612,000 square feet	Q4-2010	-	-	Yes	Yes
Investment in triple net lease property	Pueblo, Colorado	203,000 square feet	Q4-2010	-	-	Yes	Yes
Saddle Rock Village	Aurora, Colorado	294,000 square feet	Q3-2010	-	-	Yes	Yes
Residential Group:
101 San Fernando	San Jose, California	323 units	Q2-2010	-	-	Yes	Yes

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

	Three Months Ended July 31,						Six Months Ended July 31,
	2011			2010			2011			2010
	(in thousands)						(in thousands)
Revenues from real estate operations	$	3,320		$	16,131		$	13,070		$	29,068
Expenses
Operating expenses		991			9,215			5,018			15,067
Depreciation and amortization		532			3,258			2,216			5,877
Impairment of real estate		-			45,410			-			45,410
		1,523			57,883			7,234			66,354
Interest expense		(401	)		(3,076	)		(1,526	)		(4,868	)
Amortization of mortgage procurement costs		(185	)		(887	)		(739	)		(942	)
Interest income		-			3			-			6
Gain on disposition of rental properties		111,264			6,204			121,695			6,204
Earnings (loss) before income taxes		112,475			(39,508	)		125,266			(36,886	)
Income tax expense (benefit)
Current		1,543			(553	)		2,941			104
Deferred		10,845			(16,313	)		14,558			(16,227	)
		12,388			(16,866	)		17,499			(16,123	)
Earnings (loss) from discontinued operations		100,087			(22,642	)		107,767			(20,763	)
Noncontrolling interests
Gain on disposition of rental properties		81,365			4,211			81,758			4,211
Operating earnings from rental properties		665			86			1,997			789
		82,030			4,297			83,755			5,000
Earnings (loss) from discontinued operations attributable to Forest City Enterprises, Inc	$	18,057		$	(26,939	)	$	24,012		$	(25,763	)

Gain (Loss) on Disposition of Rental Properties

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

	Three Months Ended July 31,					Six Months Ended July 31,
	2011			2010		2011		2010
	(in thousands)					(in thousands)
Waterfront Station — East 4th & West 4th Buildings (Office Buildings)	$	111,738		$	-	$	111,738	$	-
Charleston Marriott (Hotel)		(474	)		-		9,957		-
101 San Fernando (Apartment Community)		-			6,204		-		6,204
Total	$	111,264		$	6,204	$	121,695	$	6,204