Exhibit 99.1

Forest City Enterprises, Inc.

Supplemental Package

Three and Nine Months Ended October 31, 2011 and 2010

Forest City Enterprises, Inc. and Subsidiaries

Three and Nine Months Ended October 31, 2011 and 2010

Supplemental Package

NYSE: FCEA, FCEB

Index

Corporate Overview	2-3
Selected Financial Information
Forest City Enterprises, Inc.
Consolidated Balance Sheet Information	4-7
Consolidated Earnings Information	8-11
Supplemental Operating Information
Occupancy Data	12
Comparable Net Operating Income (NOI)	13
Comparable NOI Detail	14-15
NOI By Product Type	16
NOI By Core Market	17
Reconciliation of NOI to Net Earnings	18-19
Results of Operations Discussion	20-23
EBDT Bridge	24-25
Reconciliation of Net Earnings to EBDT	26-27
Schedules of Lease Expirations	28-29
Schedules of Significant Tenants	30-31
Development Pipeline	32-38
Supplemental Financial Information
Projects under Construction and Development Debt and Non-Recourse Debt	39
Scheduled Maturities Table	40-41
Investments in Unconsolidated Entities	42-45
Summary of EBDT	46-57

This Supplemental Package, together with other statements and information publicly disseminated by us, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements reflect management’s current views with respect to financial results related to future events and are based on assumptions and expectations that may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial or otherwise, may differ from the results discussed in the forward-looking statements. Risk factors discussed in Item 1A of our Form 10-K for the year ended January 31, 2011 and other factors that might cause differences, some of which could be material, include, but are not limited to, the impact of current lending and capital market conditions on our liquidity, ability to finance or refinance projects and repay our debt, the impact of the current economic environment on the ownership, development and management of our real estate portfolio, general real estate investment and development risks, vacancies in our properties, further downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, anchor store consolidations or closings, international activities, the impact of terrorist acts, risks associated with an investment in a professional sports team, our substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by our credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, effects of a downgrade or failure of our insurance carriers, environmental liabilities, conflicts of interest, risks associated with the sale of tax credits, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, volatility in the market price of our publicly traded securities, inflation risks, litigation risks, as well as other risks listed from time to time in our reports filed with the Securities and Exchange Commission. We have 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 Financial and 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 and five reportable segments. The Commercial Group, our largest strategic 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 properties, including upscale and middle-market apartments and adaptive re-use developments. Additionally, the Residential Group develops for-sale condominium projects and also owns interests in entities that develop and manage military family housing. 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. Real Estate Groups are the combined Commercial, Residential and Land Development Groups. Corporate Activities and the Nets, a member of the National Basketball Association (“NBA”) in which we account for our investment on the equity method of accounting, are other reportable segments of the Company.

We have approximately $10.5 billion of assets in 28 states and the District of Columbia at October 31, 2011. Our core markets include Boston, the state of California, Chicago, Denver, New York City/Philadelphia metropolitan area and the Greater Washington, D.C./Baltimore metropolitan area. Our core markets account for approximately 76 percent of the cost of our real estate portfolio at October 31, 2011. We have offices in Albuquerque, Boston, Chicago, Dallas, Denver, London (England), Los Angeles, New York City, San Francisco, Washington, D.C. and our corporate headquarters in Cleveland, Ohio.

SUPPLEMENTAL FINANCIAL AND OPERATING INFORMATION

We recommend that this supplemental package be read in conjunction with our Form 10-Q for the three and nine months ended October 31, 2011. This supplemental package contains certain measures prepared in accordance with 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 non-GAAP 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 supplemental package for the year ended January 31, 2011.

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, a measure of performance used by publicly traded Real Estate Investment Trusts, but may not be directly comparable to similarly titled measures reported by other companies.

2

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial and Operating Information

Supplemental Operating Information

The operating information contained in this document includes: occupancy data, comparable NOI, NOI by product type and core market, reconciliation of NOI to net earnings, results of operations discussion, EBDT bridge, reconciliation of net earnings to EBDT, retail and office lease expirations, significant retail and office tenants, and our development pipeline. We believe this information will give interested parties a better understanding and more information about our operating performance. The term “comparable,” which is used throughout this document, is generally defined as including properties that were open and operated in both the three and nine months ended October 31, 2011 and 2010.

We believe occupancy rates, retail and office lease expirations, base rent, and significant retail and office tenant listings represent meaningful operating statistics about us.

Comparable NOI is useful because it measures the performance of the same properties on a period-to-period basis and, along with EBDT, 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 NOI to net earnings, the most comparable financial measure calculated in accordance with GAAP and a reconciliation of NOI to net earnings for each strategic business unit as well as a reconciliation from NOI to comparable NOI are included in this document.

Corporate Headquarters

Forest City Enterprises, Inc.

Terminal Tower

50 Public Square, Suite 1100

Cleveland, Ohio 44113

Annual Report on Form 10-K

A copy of the Annual Report on Form 10-K as filed with the Securities and Exchange Commission for the fiscal year ended January 31, 2011 can be found on our website under SEC Filings or may be obtained without charge upon written request to:

Jeffrey B. Linton

Senior Vice President, Corporate Communication

jefflinton@forestcity.net

Website

www.forestcity.net

The information contained on this website is not incorporated herein by reference and does not constitute a part of this supplemental package.

Investor Relations

Robert G. O’Brien

Executive Vice President and Chief Financial Officer

Transfer Agent and Registrar

Wells Fargo

Shareowner Services

P.O. Box 64854

St. Paul, MN 55164-9440

(800) 468-9716

www.shareowneronline.com

Stock Exchange Listing

NYSE: FCEA and FCEB

Dividend Reinvestment and Stock Purchase Plan

We offer our shareholders the opportunity to purchase additional shares of common stock through the Forest City Enterprises, Inc. Dividend Reinvestment and Stock Purchase Plan (the “Plan”) at 97% of current market value. You may obtain a copy of the Plan prospectus and an enrollment card by contacting Wells Fargo Shareowner Services at (800) 468-9716 or by visiting www.shareowneronline.com.

3

(THIS PAGE INTENTIONALLY LEFT BLANK)

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

As discussed earlier, 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, we are not deemed the primary beneficiary.

Consolidated Balance Sheet Information – October 31, 2011 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties
Residential	$	1,522,865		$	26,104		$	1,183,698		$	2,680,459
Commercial
Retail centers		2,579,243			73,127			1,195,384			3,701,500
Office and other buildings		3,014,698			94,059			380,619			3,301,258
Corporate and other equipment		10,136			–			–			10,136
Total completed rental properties		7,126,942			193,290			2,759,701			9,693,353
Projects under construction
Residential		91,168			960			131,121			221,329
Commercial
Retail centers		604,151			762			7,672			611,061
Office and other buildings		491,019			301,600			3,985			193,404
Total projects under construction		1,186,338			303,322			142,778			1,025,794
Projects under development
Residential		754,449			164,710			6,079			595,818
Commercial
Retail centers		38,819			99			10,480			49,200
Office and other buildings		258,150			25,692			6,804			239,262
Total projects under development		1,051,418			190,501			23,363			884,280
Total projects under construction and development		2,237,756			493,823			166,141			1,910,074
Land held for development or sale		268,685			22,414			92,957			339,228
Total Real Estate		9,633,383			709,527			3,018,799			11,942,655
Less accumulated depreciation		(1,519,794	)		(45,637	)		(544,304	)		(2,018,461	)
Real Estate, net		8,113,589			663,890			2,474,495			9,924,194
Cash and equivalents		229,656			10,842			62,581			281,395
Restricted cash and escrowed funds		457,441			74,920			119,943			502,464
Notes and accounts receivable, net		388,913			15,875			36,418			409,456
Investments in and advances to unconsolidated entities		663,474			(161,807	)		(577,221	)		248,060
Lease and mortgage procurement costs, net		278,464			9,095			58,831			328,200
Prepaid expenses and other deferred costs, net		221,325			35,521			22,176			207,980
Intangible assets, net		110,521			4			10,317			120,834
Total Assets	$	10,463,383		$	648,340		$	2,207,540		$	12,022,583

4

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet Information – October 31, 2011 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Liabilities and Equity
Liabilities
Mortgage debt and notes payable, nonrecourse
Completed rental properties
Residential	$	944,963		$	18,757		$	924,251		$	1,850,457
Commercial
Retail centers		1,726,446			67,583			961,206			2,620,069
Office and other buildings		2,106,872			75,092			304,750			2,336,530
Total completed rental properties		4,778,281			161,432			2,190,207			6,807,056
Projects under construction
Residential		54,613			–			80,543			135,156
Commercial
Retail centers		328,902			–			–			328,902
Office and other buildings		108,902			63,823			–			45,079
Total projects under construction		492,417			63,823			80,543			509,137
Projects under development
Residential		187,512			44,156			–			143,356
Commercial
Retail centers		–			–			–			–
Office and other buildings		–			–			2,887			2,887
Total projects under development		187,512			44,156			2,887			146,243
Total projects under construction and development		679,929			107,979			83,430			655,380
Land held for development or sale		35,162			3,322			25,416			57,256
Total Mortgage debt and notes payable, nonrecourse		5,493,372			272,733			2,299,053			7,519,692
Bank revolving credit facility		–			–			–			–
Senior and subordinated debt		1,038,447			–			–			1,038,447
Construction payables		171,551			56,752			16,221			131,020
Operating accounts payable and accrued expenses		629,879			26,809			160,206			763,276
Accrued derivative liability		165,988			–			16,088			182,076
Deferred profit on NY retail joint venture transaction		115,388			–			–			115,388
Total Accounts payable, accrued expenses and other liabilities		1,082,806			83,561			192,515			1,191,760
Cash distributions and losses in excess of investments in unconsolidated entities		285,171			(33,536	)		(284,028	)		34,679
Deferred income taxes		485,663			–			–			485,663
Total Liabilities		8,385,459			322,758			2,207,540			10,270,241
Redeemable Noncontrolling Interest		228,785			228,785			–			–
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss		1,681,044			–			–			1,681,044
Accumulated other comprehensive loss		(114,723	)		–			–			(114,723	)
Total Shareholders’ Equity		1,566,321			–			–			1,566,321
Noncontrolling interest		282,818			96,797			–			186,021
Total Equity		1,849,139			96,797			–			1,752,342
Total Liabilities and Equity	$	10,463,383		$	648,340		$	2,207,540		$	12,022,583

5

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet Information – January 31, 2011 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties
Residential	$	1,664,490		$	26,028		$	826,356		$	2,464,818
Commercial
Retail centers		3,226,717			113,193			718,593			3,832,117
Office and other buildings		3,314,371			253,604			378,863			3,439,630
Corporate and other equipment		9,847			–			1			9,848
Total completed rental properties		8,215,425			392,825			1,923,813			9,746,413
Projects under construction
Residential		771,245			213,988			3,642			560,899
Commercial
Retail centers		703,397			532			50,220			753,085
Office and other buildings		297,069			199,241			1,981			99,809
Total projects under construction		1,771,711			413,761			55,843			1,413,793
Projects under development
Residential		687,125			222,514			6,063			470,674
Commercial
Retail centers		17,837			99			10,890			28,628
Office and other buildings		229,562			58,830			6,807			177,539
Total projects under development		934,524			281,443			23,760			676,841
Total projects under construction and development		2,706,235			695,204			79,603			2,090,634
Land held for development or sale		244,879			18,683			115,607			341,803
Total Real Estate		11,166,539			1,106,712			2,119,023			12,178,850
Less accumulated depreciation		(1,614,399	)		(63,987	)		(424,331	)		(1,974,743	)
Real Estate, net		9,552,140			1,042,725			1,694,692			10,204,107
Cash and equivalents		193,372			13,979			48,583			227,976
Restricted cash and escrowed funds		720,180			240,709			78,890			558,361
Notes and accounts receivable, net		403,101			20,329			86,729			469,501
Investments in and advances to unconsolidated entities		431,509			(278,671	)		(323,995	)		386,185
Lease and mortgage procurement costs, net		356,804			30,171			33,025			359,658
Prepaid expenses and other deferred costs, net		266,689			44,536			10,443			232,596
Intangible assets, net		135,906			5			1,289			137,190
Total Assets	$	12,059,701		$	1,113,783		$	1,629,656		$	12,575,574

6

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet Information – January 31, 2011 (Unaudited)

	Full             Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata   Consolidation   (Non-GAAP)
	(in thousands)
Liabilities and Equity
Liabilities
Mortgage debt and notes payable, nonrecourse
Completed rental properties
Residential	$	1,110,095		$	18,998		$	709,846		$	1,800,943
Commercial
Retail centers		2,322,539			120,042			655,162			2,857,659
Office and other buildings		2,346,189			219,327			295,641			2,422,503
Total completed rental properties		5,778,823			358,367			1,660,649			7,081,105
Projects under construction
Residential		717,700			203,681			–			514,019
Commercial
Retail centers		379,363			–			–			379,363
Office and other buildings		82,157			60,108			–			22,049
Total projects under construction		1,179,220			263,789			–			915,431
Projects under development
Residential		155,890			61,760			–			94,130
Commercial
Retail centers		–			–			–			–
Office and other buildings		42,200			16,880			2,887			28,207
Total projects under development		198,090			78,640			2,887			122,337
Total projects under construction and development		1,377,310			342,429			2,887			1,037,768
Land held for development or sale		51,085			3,500			49,831			97,416
Total Mortgage debt and notes payable, nonrecourse		7,207,218			704,296			1,713,367			8,216,289
Bank revolving credit facility		137,152			–			–			137,152
Senior and subordinated debt		773,683			–			–			773,683
Construction payables		179,601			44,490			4,670			139,781
Operating accounts payable and accrued expenses		737,854			28,443			105,075			814,486
Accrued derivative liability		156,587			3,327			15,163			168,423
Total Accounts payable, accrued expenses and other liabilities		1,074,042			76,260			124,908			1,122,690
Cash distributions and losses in excess of investments in unconsolidated entities		290,492			(38,493	)		(208,619	)		120,366
Deferred income taxes		489,974			–			–			489,974
Total Liabilities		9,972,561			742,063			1,629,656			10,860,154
Redeemable Noncontrolling Interest		226,829			226,829			–			–
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss		1,623,828			–			–			1,623,828
Accumulated other comprehensive loss		(94,429	)		–			–			(94,429)
Total Shareholders’ Equity		1,529,399			–			–			1,529,399
Noncontrolling interest		330,912			144,891			–			186,021
Total Equity		1,860,311			144,891			–			1,715,420
Total Liabilities and Equity	$	12,059,701		$	1,113,783		$	1,629,656		$	12,575,574

7

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Earnings Information – Three Months Ended October 31, 2011 (Unaudited)

	Full             Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata  Consolidation   (Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	261,198		$	13,565		$	101,851		$	349,484
Expenses
Operating expenses		169,155			9,853			46,626			205,928
Depreciation and amortization		55,415			1,123			18,024			72,316
Impairment of real estate		10,707			–			41,289			51,996
		235,277			10,976			105,939			330,240
Interest expense		(67,235	)		(1,746	)		(26,211	)		(91,700)
Amortization of mortgage procurement costs		(3,414	)		(167	)		(805	)		(4,052)
Gain on early extinguishment of debt		15,101			1,511			1,875			15,465
Interest and other income		11,294			518			262			11,038
Net gain on disposition of partial interests in rental properties		5,849			–			–			5,849
Earnings (loss) before income taxes		(12,484	)		2,705			(28,967	)		(44,156)
Income tax benefit
Current		(13,890	)		–			–			(13,890)
Deferred		(3,328	)		–			–			(3,328)
		(17,218	)		–			–			(17,218)
Equity in earnings (loss) of unconsolidated entities, including impairment		(40,016	)		38			28,967			(11,087)
Net earnings (loss)		(35,282	)		2,743			–			(38,025)
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(2,743	)		(2,743	)		–			–
Net loss attributable to Forest City Enterprises, Inc.	$	(38,025	)	$	–		$	–		$	(38,025)
Preferred dividends		(3,850	)		–			–			(3,850)
Net loss attributable to Forest City Enterprises, Inc. common shareholders	$	(41,875	)	$	–		$	–		$	(41,875)

8

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Earnings Information – Nine Months Ended October 31, 2011 (Unaudited)

	Full        Consolidation (GAAP)		Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata Consolidation  (Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	822,827	$	38,433	$	279,208	$	6,593	$	1,070,195
Expenses
Operating expenses		491,834		25,194		129,347		2,944		598,931
Depreciation and amortization		166,660		3,952		47,724		1,030		211,462
Impairment of real estate		15,777		–		41,289		–		57,066
		674,271		29,146		218,360		3,974		867,459
Interest expense		(198,214)		(9,166)		(74,501)		(712)		(264,261)
Amortization of mortgage procurement costs		(9,036)		(427)		(2,157)		(333)		(11,099)
Gain (loss) on early extinguishment of debt		9,334		1,507		(480)		–		7,347
Interest and other income		42,116		912		647		–		41,851
Net gain on disposition of full or partial interests in rental properties		15,410		–		12,567		39,937		67,914
Earnings (loss) before income taxes		8,166		2,113		(3,076)		41,511		44,488
Income tax expense (benefit)
Current		1,244		–		–		2,941		4,185
Deferred		(6,720)		–		–		14,558		7,838
		(5,476)		–		–		17,499		12,023
Equity in earnings (loss) of unconsolidated entities, including impairment		(17,637)		228		3,076		–		(14,789)
Earnings (loss) from continuing operations		(3,995)		2,341		–		24,012		17,676
Discontinued operations, net of tax:
Operating earnings from rental properties		2,961		1,997		–		(964)		–
Gain on disposition of rental properties		104,806		81,758		–		(23,048)		–
		107,767		83,755		–		(24,012)		–
Net earnings		103,772		86,096		–		–		17,676
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(2,341)		(2,341)		–		–		–
Earnings from discontinued operations attributable to noncontrolling interests		(83,755)		(83,755)		–		–		–
		(86,096)		(86,096)		–		–		–
Net earnings attributable to Forest City Enterprises, Inc.	$	17,676	$	–	$	–	$	–	$	17,676
Preferred dividends		(11,550)		–		–		–		(11,550)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders	$	6,126	$	–	$	–	$	–	$	6,126

9

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Earnings Information – Three Months Ended October 31, 2010 (Unaudited)

	Full Consolidation   (GAAP)		Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata   Consolidation   (Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	287,046	$	13,279	$	83,098	$	12,055	$	368,920
Expenses
Operating expenses		162,082		7,763		36,568		6,141		197,028
Depreciation and amortization		60,367		1,528		13,322		1,943		74,104
Impairment of real estate		5,703		1,526		21,564		34,193		59,934
		228,152		10,817		71,454		42,277		331,066
Interest expense		(75,840)		(4,526)		(19,838)		(2,151)		(93,303)
Amortization of mortgage procurement costs		(3,322)		(126)		(549)		(284)		(4,029)
Gain (loss) on early extinguishment of debt		2,460		247		(25)		–		2,188
Interest and other income		11,919		992		525		1		11,453
Net gain (loss) on disposition of full or partial interests in rental properties		(2,257)		–		8,658		(1,428)		4,973
Earnings (loss) before income taxes		(8,146)		(951)		415		(34,084)		(40,864)
Income tax expense (benefit)
Current		(7,459)		–		–		(376)		(7,835)
Deferred		26,960		–		–		(12,959)		14,001
		19,501		–		–		(13,335)		6,166
Equity in earnings (loss) of unconsolidated entities, including impairment		668		14		(415)		–		239
Loss from continuing operations		(26,979)		(937)		–		(20,749)		(46,791)
Discontinued operations, net of tax:
Operating earnings from rental properties		2,087		1,147		–		(940)		–
Impairment of real estate		(20,931)		–		–		20,931		–
Loss on disposition of rental properties		(758)		–		–		758		–
		(19,602)		1,147		–		20,749		–
Net earnings (loss)		(46,581)		210		–		–		(46,791)
Noncontrolling Interests
Loss from continuing operations attributable to noncontrolling interests		937		937		–		–		–
Earnings from discontinued operations attributable to noncontrolling interests		(1,147)		(1,147)		–		–		–
		(210)		(210)		–		–		–
Net loss attributable to Forest City Enterprises, Inc.	$	(46,791)	$	–	$	–	$	–	$	(46,791)
Preferred dividends		(3,850)		–		–		–		(3,850)
Net loss attributable to Forest City Enterprises, Inc. common shareholders	$	(50,641)	$	–	$	–	$	–	$	(50,641)

10

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Earnings Information –   Nine Months Ended October 31, 2010 (Unaudited) 

	Full   Consolidation   (GAAP)		Less Noncontrolling   Interest		Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata   Consolidation   (Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	850,049	$	39,947	$	236,733	$	36,035	$	1,082,870
Expenses
Operating expenses		486,726		23,404		130,011		19,294		612,627
Depreciation and amortization		177,733		4,809		37,835		6,719		217,478
Impairment of real estate		6,803		1,526		36,745		79,603		121,625
		671,262		29,739		204,591		105,616		951,730
Interest expense		(241,817)		(13,727)		(58,956)		(6,196)		(293,242)
Amortization of mortgage procurement costs		(8,655)		(327)		(1,700)		(765)		(10,793)
Gain (loss) on early extinguishment of debt		10,653		247		(25)		–		10,381
Interest and other income		34,964		2,024		15,285		7		48,232
Net gain on disposition of full or partial interests in rental properties		202,878		–		7,828		565		211,271
Net gain on disposition of partial interests in other investment		55,112		23,675		–		–		31,437
Earnings (loss) before income taxes		231,922		22,100		(5,426)		(75,970)		128,426
Income tax expense (benefit)
Current		4,111		–		–		(272)		3,839
Deferred		87,586		–		–		(29,186)		58,400
		91,697		–		–		(29,458)		62,239
Equity in earnings (loss) of unconsolidated entities, including impairment		(17,452)		(6,332)		5,426		–		(5,694)
Earnings (loss) from continuing operations		122,773		15,768		–		(46,512)		60,493
Discontinued operations, net of tax:
Operating earnings from rental properties		3,814		1,936		–		(1,878)		–
Impairment of real estate		(48,731)		–		–		48,731		–
Gain on disposition of rental properties		4,552		4,211		–		(341)		–
		(40,365)		6,147		–		46,512		–
Net earnings		82,408		21,915		–		–		60,493
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(15,768)		(15,768)		–		–		–
Earnings from discontinued operations attributable to noncontrolling interests		(6,147)		(6,147)		–		–		–
		(21,915)		(21,915)		–		–		–
Net earnings attributable to Forest City Enterprises, Inc.	$	60,493	$	–	$	–	$	–	$	60,493
Preferred dividends		(7,957)		–		–		–		(7,957)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders	$	52,536	$	–	$	–	$	–	$	52,536

11

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Occupancy Data – October 31, 2011 and 2010

Retail and office occupancy is based on square feet leased at the end of the fiscal quarter. Average Occupancy Year-to-Date 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 represents total units occupied divided by total units available. Average Occupancy for residential 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.

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

	Occupancy As of October 31, 2011		Average   Occupancy   Year-to-Date   October 31, 2011		Occupancy As of October 31, 2010		Average   Occupancy   Year-to-Date   October 31, 2010
Retail
Comparable		91.2%		91.2%		90.6%		90.4%
Total		88.6%		89.8%		90.4%		89.6%
Office
Comparable		90.5%		89.8%		91.2%		90.9%
Total		88.3%		88.0%		90.3%		90.0%
Residential (1) (2)
Comparable		94.0%		94.7%		93.7%		93.6%
Total		92.7%		92.2%		92.2%		89.3%
Hotels
Comparable and Total				69.6%				69.9%
Comparable and Total ADR			$	148.15			$	138.92

The table below provides occupancy as reported in previous quarters. These amounts may differ from above because the properties that qualify as comparable change from period to period.

Occupancy Recap of Quarterly Supplemental Packages
	Occupancy As of										Average Occupancy Year-to-Date
	October 31, 2011		July 31, 2011		April 30, 2011		January 31, 2011		October 31,     2010		October 31, 2011		July 31, 2011		April 30, 2011		January 31, 2011		October 31, 2010
Retail
Comparable		91.2%		90.3%		91.2%		91.2%		90.6%		91.2%		90.5%		91.2%		90.7%		90.4%
Total		88.6%		90.4%		91.1%		91.2%		90.4%		89.8%		90.8%		91.1%		90.0%		89.6%
Office
Comparable		90.5%		90.3%		90.7%		88.4%		90.5%		89.8%		89.8%		90.0%		89.2%		90.3%
Total		88.3%		88.8%		89.6%		87.8%		90.3%		88.0%		88.3%		88.7%		88.7%		90.0%
Residential (1) (2)
Comparable		94.0%		93.6%		93.7%		93.7%		93.7%		94.7%		94.8%		94.8%		93.8%		93.8%
Total		92.7%		93.0%		92.6%		92.7%		92.2%		92.2%		91.7%		91.5%		89.6%		89.3%
Hotels
Comparable and Total												69.6%		65.5%		56.9%		69.0%		69.9%
Comparable and Total ADR											$	148.15	$	148.27	$	145.29	$	140.03	$	138.92

(1) Excludes military and subsidized senior housing units.

(2) Prior periods have been recasted to exclude subsidized senior housing. The Company believes this change will improve disclosure by allowing investors to see results for the conventional apartment portfolio separated from those of the limited-dividend senior-housing properties.

12

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

We use NOI, along with EBDT, to assess operating performance. Comparable NOI is defined as NOI from properties opened and operated in the three and nine months ended October 31, 2011 and 2010. The schedules below present Pro-Rata Comparable NOI for the three and nine months ended October 31, 2011.

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

	Three Months Ended       October 31, 2011		Nine Months Ended       October 31, 2011
Retail		(1.5%)		1.1%
Office		(7.6%)		(3.1%)
Residential (1)		12.0%		6.7%
Hotel		(6.7%)		(8.7%)
Total		(1.5%)		0.3%

The tables below provide the percentage change of Comparable Net Operating Income (NOI) as reported in previous quarters. GAAP reconciliations for previous quarters can be found in prior supplemental packages.

Quarterly Historical Trends											Annual Historical Trends
	Three Months Ended											Year Ended
	October 31, 2011		July 31, 2011		April 30, 2011		January 31, 2011		October 31, 2010			January 31, 2011		January 31, 2010		January 31, 2009
Retail		(1.5%)		1.6%		2.6%		3.4%		4.1%	Retail		2.2%		(3.9%)		0.3%
Office		(7.6%)		3.1%		(2.5%)		0.2%		2.2%	Office		2.1%		5.4%		1.2%
Residential (1)		12.0%		3.1%		4.8%		2.0%		7.0%	Residential (1)		4.3%		(3.9%)		1.4%
Hotel		(6.7%)		1.6%		(54.2%)		(13.4%)		(20.3%)	Hotel		(3.9%)		(9.9%)		(4.9%)
Total		(1.5%)		2.5%		0.5%		1.6%		3.0%	Total		2.4%		(0.9%)		0.7%

(1) Prior periods have been recasted to exclude subsidized senior housing. The Company believes this change will improve disclosure by allowing investors to see results for the conventional apartment portfolio separated from those of the limited-dividend senior-housing properties.

13

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

														Net Operating Income (dollars in thousands)
			Three Months Ended October 31, 2011														Three Months Ended October 31, 2010														% Change
			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)	Pro-Rata Consolidation (Non-GAAP)
Commercial Group
	Retail
		Comparable	$	48,713		$	2,218		$	11,246		$	–	$	57,741		$	54,056		$	1,796		$	6,355		$	–	$	58,615		(9.9%)	(1.5%)
		Total		48,304			2,081			11,615			–		57,838			67,294			2,749			5,443			2,603		72,591
	Office Buildings
		Comparable		52,717			1,760			4,869			–		55,826			58,254			2,835			4,998			–		60,417		(9.5%)	(7.6%)
		Total		58,677			1,230			3,206			–		60,653			62,481			2,856			3,335			1,969		64,929
	Hotels
		Comparable		2,917			–			364			–		3,281			3,144			–			372			–		3,516		(7.2%)	(6.7%)
		Total		2,765			–			364			–		3,129			3,144			–			372			846		4,362
	Earnings from Commercial
		Land Sales		128			–			–			–		128			1,470			–			–			–		1,470
	Other (1)			(7,212	)		(309	)		1,973			–		(4,930	)		(2,088	)		2			1,968			–		(122	)
Total Commercial Group
		Comparable		104,347			3,978			16,479			–		116,848			115,454			4,631			11,725			–		122,548		(9.6%)	(4.7%)
		Total		102,662			3,002			17,158			–		116,818			132,301			5,607			11,118			5,418		143,230
Residential Group
	Apartments
		Comparable		26,924			457			5,497			–		31,964			23,481			182			5,253			–		28,552		14.7%	12.0%
		Total		28,718			600			7,145			–		35,263			25,374			418			6,254			–		31,210
	Subsidized Senior Housing			2,770			101			1,667			–		4,336			4,376			253			1,794			–		5,917
	Military Housing			8,247			97			379			–		8,529			6,821			(37	)		376			–		7,234
	Land Sales			46			–			–			–		46			–			–			–			–		–
	Other (1)			(3,162	)		148			(183	)		–		(3,493	)		1,645			139			(30	)		–		1,476
Total Residential Group
		Comparable		26,924			457			5,497			–		31,964			23,481			182			5,253			–		28,552		14.7%	12.0%
		Total		36,619			946			9,008			–		44,681			38,216			773			8,394			–		45,837
Total Rental Properties
		Comparable		131,271			4,435			21,976			–		148,812			138,935			4,813			16,978			–		151,100		(5.5%)	(1.5%)
		Total		139,281			3,948			26,166			–		161,499			170,517			6,380			19,512			5,418		189,067
Land Development Group				4,163			320			(1,830	)		–		2,013			663			142			351			–		872
The Nets				(11,283	)		–			–			–		(11,283	)		(415	)		–			–			–		(415	)
Corporate Activities				(12,417	)		–			–			–		(12,417	)		(9,206	)		–			–			–		(9,206	)
Grand Total			$	119,744		$	4,268		$	24,336		$	–	$	139,812		$	161,559		$	6,522		$	19,863		$	5,418	$	180,318

 (1) Includes write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income.

14

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

														Net Operating Income (dollars in thousands)
			Nine Months Ended October 31, 2011														Nine Months Ended October 31, 2010													% Change
			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)	Pro-Rata Consolidation (Non-GAAP)
Commercial Group
	Retail
		Comparable	$	148,433		$	6,543		$	25,184		$	–	$	167,074		$	154,622		$	5,503		$	16,203	$	–	$	165,322		(4.0%)	1.1%
		Total		156,375			7,474			30,965			–		179,866			190,522			8,461			16,702		7,762		206,525
	Office Buildings
		Comparable		160,385			4,996			14,531			–		169,920			169,473			8,047			13,908		–		175,334		(5.4%)	(3.1%)
		Total		180,976			4,900			9,572			3,032		188,680			183,967			8,448			9,653		4,504		189,676
	Hotels
		Comparable		6,369			–			1,137			–		7,506			7,116			–			1,109		–		8,225		(10.5%)	(8.7%)
		Total		8,715			–			1,137			46		9,898			7,116			–			1,109		2,414		10,639
	Earnings from Commercial Land Sales (1)			43,485			(782	)		–			–		44,267			4,371			14			–		–		4,357
	Other (2)			(12,505	)		(893	)		5,874			–		(5,738	)		(6,443	)		(729	)		5,163		–		(551	)
Total Commercial Group
		Comparable		315,187			11,539			40,852			–		344,500			331,211			13,550			31,220		–		348,881		(4.8%)	(1.3%)
		Total		377,046			10,699			47,548			3,078		416,973			379,533			16,194			32,627		14,680		410,646
Residential Group
	Apartments
		Comparable		75,218			1,280			15,273			–		89,211			69,181			953			15,390		–		83,618		8.7%	6.7%
		Total		76,767			1,799			22,786			–		97,754			73,620			1,436			18,037		900		91,121
	Subsidized Senior Housing			7,330			351			5,088			–		12,067			10,613			420			5,416		–		15,609
	Military Housing			18,643			335			1,150			–		19,458			19,824			(37	)		1,125		–		20,986
	Land Sales			204			16			–			–		188			–			–			–		–		–
	Other (2)			(3,417	)		425			37			–		(3,805	)		(488	)		117			427		–		(178	)
Total Residential Group
		Comparable		75,218			1,280			15,273			–		89,211			69,181			953			15,390		–		83,618		8.7%	6.7%
		Total		99,527			2,926			29,061			–		125,662			103,569			1,936			25,005		900		127,538
Total Rental Properties
		Comparable		390,405			12,819			56,125			–		433,711			400,392			14,503			46,610		–		432,499		(2.5%)	0.3%
		Total		476,573			13,625			76,609			3,078		542,635			483,102			18,130			57,632		15,580		538,184
Land Development Group				6,855			754			(1,628	)		–		4,473			2,337			348			203		–		2,192
The Nets
	Operations			(14,969	)		–			–			–		(14,969	)		(18,006	)		(6,243	)		1,146		–		(10,617	)
	Gain on disposition of partial interest			–			–			–			–		–			55,112			23,675			–		–		31,437
		Total		(14,969	)		–			–			–		(14,969	)		37,106			17,432			1,146		–		20,820
Corporate Activities				(37,452	)		–			–			–		(37,452	)		(30,353	)		–			–		–		(30,353	)
Grand Total			$	431,007		$	14,379		$	74,981		$	3,078	$	494,687		$	492,192		$	35,910		$	58,981	$	15,580	$	530,843

(1) Includes $42,622 of NOI generated from the casino land sale at full and pro-rata consolidation.

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

15

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income by Product Type

Pro-Rata Consolidation (dollars in thousands)

NOI by Product Type:	$	514,029
Casino Land Sale		42,622
The Nets
Operations		(14,969)
Gain on disposition of partial interest		–
Total Nets		(14,969)
Corporate Activities		(37,452)
Other (2)		(9,543)
Grand Total NOI	$	494,687

NOI by Product Type:	$	541,105
Casino Land Sale		–
The Nets
Operations		(10,617)
Gain on disposition of partial interest		31,437
Total Nets		20,820
Corporate Activities		(30,353)
Other (2)		(729)
Grand Total NOI	$	530,843

(1) Includes subsidized senior housing.

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

16

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income by Core Market

Pro-Rata Consolidation (dollars in thousands)

NOI by Market:	$	514,029
Casino Land Sale		42,622
The Nets
Operations		(14,969)
Gain on disposition of partial interest		–
Total Nets		(14,969)
Corporate Activities		(37,452)
Other (1)		(9,543)
Grand Total NOI	$	494,687

NOI by Market:	$	541,105
Casino Land Sale		–
The Nets
Operations		(10,617)
Gain on disposition of partial interest		31,437
Total Nets		20,820
Corporate Activities		(30,353)
Other (1)		(729)
Grand Total NOI	$	530,843

(1)  Includes write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of tax credit income.

17

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

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

	Three Months Ended October 31, 2011														Three Months Ended October 31, 2010
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	261,198		$	13,565		$	101,851		$	–	$	349,484		$	287,046		$	13,279		$	83,098		$	12,055		$	368,920
Exclude straight-line rent adjustment (1)		(4,364	)		–			–			–		(4,364	)		(3,597	)		–			–			(497	)		(4,094	)
Adjusted revenues		256,834			13,565			101,851			–		345,120			283,449			13,279			83,098			11,558			364,826
Add interest and other income		11,294			518			262			–		11,038			11,919			992			525			1			11,453
Add equity in earnings (loss) of unconsolidated entities, including impairment		(40,016	)		38			28,967			–		(11,087	)		668			14			(415	)		–			239
Exclude loss on disposition of unconsolidated entities		–			–			–			–		–			(8,658	)		–			8,658			–			–
Exclude impairment of unconsolidated real estate		41,289			–			(41,289	)		–		–			21,564			–			(21,564	)		–			–
Exclude depreciation and amortization of unconsolidated entities (see below)		18,829			–			(18,829	)		–		–			13,871			–			(13,871	)		–			–
Adjusted total income		288,230			14,121			70,962			–		345,071			322,813			14,285			56,431			11,559			376,518
Operating expenses		169,155			9,853			46,626			–		205,928			162,082			7,763			36,568			6,141			197,028
Add back non-Real Estate depreciation and amortization (b)		1,012			–			–			–		1,012			1,184			–			–			–			1,184
Exclude straight-line rent adjustment (2)		(1,096	)		–			–			–		(1,096	)		(1,427	)		–			–			–			(1,427	)
Exclude preference payment		(585	)		–			–			–		(585	)		(585	)		–			–			–			(585	)
Adjusted operating expenses		168,486			9,853			46,626			–		205,259			161,254			7,763			36,568			6,141			196,200
Net operating income		119,744			4,268			24,336			–		139,812			161,559			6,522			19,863			5,418			180,318
Interest expense		(67,235	)		(1,746	)		(26,211	)		–		(91,700	)		(75,840	)		(4,526	)		(19,838	)		(2,151	)		(93,303	)
Gain (loss) on early extinguishment of debt		15,101			1,511			1,875			–		15,465			2,460			247			(25	)		–			2,188
Equity in earnings (loss) of unconsolidated entities, including impairment		40,016			(38	)		(28,967	)		–		11,087			(668	)		(14	)		415			–			(239	)
Gain on disposition of unconsolidated entities		–			–			–			–		–			8,658			–			–			–			8,658
Impairment of unconsolidated real estate		(41,289	)		–			–			–		(41,289	)		(21,564	)		–			–			–			(21,564	)
Depreciation and amortization of unconsolidated entities (see above)		(18,829	)		–			18,829			–		–			(13,871	)		–			13,871			–			–
Net gain (loss) on disposition of rental properties and partial interests in rental properties		5,849			–			–			–		5,849			(2,257	)		–			–			(1,428	)		(3,685	)
Impairment of consolidated real estate		(10,707	)		–			–			–		(10,707	)		(5,703	)		(1,526	)		–			(34,193	)		(38,370	)
Depreciation and amortization - Real Estate Groups (a)		(54,403	)		(1,123	)		(18,024	)		–		(71,304	)		(59,183	)		(1,528	)		(13,322	)		(1,943	)		(72,920	)
Amortization of mortgage procurement costs - Real Estate Groups (c)		(3,414	)		(167	)		(805	)		–		(4,052	)		(3,322	)		(126	)		(549	)		(284	)		(4,029	)
Straight-line rent adjustment (1) + (2)		3,268			–			–			–		3,268			2,170			–			–			497			2,667
Preference payment		(585	)		–			–			–		(585	)		(585	)		–			–			–			(585	)
Earnings (loss) before income taxes		(12,484	)		2,705			(28,967	)		–		(44,156	)		(8,146	)		(951	)		415			(34,084	)		(40,864	)
Income tax provision		17,218			–			–			–		17,218			(19,501	)		–			–			13,335			(6,166	)
Equity in earnings (loss) of unconsolidated entities, including impairment		(40,016	)		38			28,967			–		(11,087	)		668			14			(415	)		–			239
Earnings (loss) from continuing operations		(35,282	)		2,743			–			–		(38,025	)		(26,979	)		(937	)		–			(20,749	)		(46,791	)
Discontinued operations, net of tax		–			–			–			–		–			(19,602	)		1,147			–			20,749			–
Net earnings (loss)		(35,282	)		2,743			–			–		(38,025	)		(46,581	)		210			–			–			(46,791	)
Noncontrolling interests
(Earnings) loss from continuing operations attributable to noncontrolling interests		(2,743	)		(2,743	)		–			–		–			937			937			–			–			–
Earnings from discontinued operations attributable to noncontrolling interests		–			–			–			–		–			(1,147	)		(1,147	)		–			–			–
Noncontrolling interests		(2,743	)		(2,743	)		–			–		–			(210	)		(210	)		–			–			–
Net loss attributable to Forest City Enterprises, Inc.	$	(38,025	)	$	–		$	–		$	–	$	(38,025	)	$	(46,791	)	$	–		$	–		$	–		$	(46,791	)
Preferred dividends		(3,850	)		–			–			–		(3,850	)		(3,850	)		–			–			–			(3,850	)
Net loss attributable to Forest City Enterprises, Inc.
common shareholders	$	(41,875	)	$	–		$	–		$	–	$	(41,875	)	$	(50,641	)	$	–		$	–		$	–		$	(50,641	)
(a) Depreciation and amortization - Real Estate Groups	$	54,403		$	1,123		$	18,024		$	–	$	71,304		$	59,183		$	1,528		$	13,322		$	1,943		$	72,920
(b) Depreciation and amortization - Non-Real Estate		1,012			–			–			–		1,012			1,184			–			–			–			1,184
Total depreciation and amortization	$	55,415		$	1,123		$	18,024		$	–	$	72,316		$	60,367		$	1,528		$	13,322		$	1,943		$	74,104
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	3,414		$	167		$	805		$	–	$	4,052		$	3,322		$	126		$	549		$	284		$	4,029
(d) Amortization of mortgage procurement costs - Non-Real Estate		–			–			–			–		–			–			–			–			–			–
Total amortization of mortgage procurement costs	$	3,414		$	167		$	805		$	–	$	4,052		$	3,322		$	126		$	549		$	284		$	4,029

18

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

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

	Nine Months Ended October 31, 2011															Nine Months Ended October 31, 2010
							Plus															Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation			Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	822,827		$	38,433		$	279,208		$	6,593		$	1,070,195		$	850,049		$	39,947		$	236,733		$	36,035		$	1,082,870
Exclude straight-line rent adjustment (1)		(5,826	)		–			–			(571	)		(6,397	)		(13,165	)		–			–			(1,168	)		(14,333	)
Adjusted revenues		817,001			38,433			279,208			6,022			1,063,798			836,884			39,947			236,733			34,867			1,068,537
Add interest and other income		42,116			912			647			–			41,851			34,964			2,024			15,285			7			48,232
Add gain on disposition of partial interests in other investment - Nets		–			–			–			–			–			55,112			23,675			–			–			31,437
Add equity in earnings (loss) of unconsolidated entities, including impairment		(17,637	)		228			3,076			–			(14,789	)		(17,452	)		(6,332	)		5,426			–			(5,694	)
Exclude gain on disposition of unconsolidated entities		(12,567	)		–			12,567			–			–			(7,828	)		–			7,828			–			–
Exclude impairment of unconsolidated real estate		41,289			–			(41,289	)		–			–			36,745			–			(36,745	)		–			–
Exclude depreciation and amortization of unconsolidated entities (see below)		49,881			–			(49,881	)		–			–			38,588			–			(38,588	)		–			–
Adjusted total income		920,083			39,573			204,328			6,022			1,090,860			977,013			59,314			189,939			34,874			1,142,512
Operating expenses		491,834			25,194			129,347			2,944			598,931			486,726			23,404			130,011			19,294			612,627
Add back non-Real Estate depreciation and amortization (b)		2,400			–			–			–			2,400			3,937			–			878			–			4,815
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		–			–			–			–			–			–			–			69			–			69
Exclude straight-line rent adjustment (2)		(3,402	)		–			–			–			(3,402	)		(4,086	)		–			–			–			(4,086	)
Exclude preference payment		(1,756	)		–			–			–			(1,756	)		(1,756	)		–			–			–			(1,756	)
Adjusted operating expenses		489,076			25,194			129,347			2,944			596,173			484,821			23,404			130,958			19,294			611,669
Net operating income		431,007			14,379			74,981			3,078			494,687			492,192			35,910			58,981			15,580			530,843
Interest expense		(198,214	)		(9,166	)		(74,501	)		(712	)		(264,261	)		(241,817	)		(13,727	)		(58,956	)		(6,196	)		(293,242	)
Gain (loss) on early extinguishment of debt		9,334			1,507			(480	)		–			7,347			10,653			247			(25	)		–			10,381
Equity in earnings (loss) of unconsolidated entities, including impairment		17,637			(228	)		(3,076	)		–			14,789			17,452			6,332			(5,426	)		–			5,694
Gain on disposition of unconsolidated entities		12,567			–			–			–			12,567			7,828			–			–			–			7,828
Impairment of unconsolidated real estate		(41,289	)		–			–			–			(41,289	)		(36,745	)		–			–			–			(36,745	)
Depreciation and amortization of unconsolidated entities (see above)		(49,881	)		–			49,881			–			–			(38,588	)		–			38,588			–			–
Net gain on disposition of rental properties and partial interests in rental properties		15,410			–			–			39,937			55,347			202,878			–			–			565			203,443
Impairment of consolidated real estate		(15,777	)		–			–			–			(15,777	)		(6,803	)		(1,526	)		–			(79,603	)		(84,880	)
Depreciation and amortization - Real Estate Groups (a)		(164,260	)		(3,952	)		(47,724	)		(1,030	)		(209,062	)		(173,796	)		(4,809	)		(36,957	)		(6,719	)		(212,663	)
Amortization of mortgage procurement costs - Real Estate Groups (c)		(9,036	)		(427	)		(2,157	)		(333	)		(11,099	)		(8,655	)		(327	)		(1,631	)		(765	)		(10,724	)
Straight-line rent adjustment (1) + (2)		2,424			–			–			571			2,995			9,079			–			–			1,168			10,247
Preference payment		(1,756	)		–			–			–			(1,756	)		(1,756	)		–			–			–			(1,756	)
Earnings (loss) before income taxes		8,166			2,113			(3,076	)		41,511			44,488			231,922			22,100			(5,426	)		(75,970	)		128,426
Income tax provision		5,476			–			–			(17,499	)		(12,023	)		(91,697	)		–			–			29,458			(62,239	)
Equity in earnings (loss) of unconsolidated entities, including impairment		(17,637	)		228			3,076			–			(14,789	)		(17,452	)		(6,332	)		5,426			–			(5,694	)
Earnings (loss) from continuing operations		(3,995	)		2,341			–			24,012			17,676			122,773			15,768			–			(46,512	)		60,493
Discontinued operations, net of tax		107,767			83,755			–			(24,012	)		–			(40,365	)		6,147			–			46,512			–
Net earnings		103,772			86,096			–			–			17,676			82,408			21,915			–			–			60,493
Noncontrolling interests
Earnings from continuing operations attributable to noncontrolling interests		(2,341	)		(2,341	)		–			–			–			(15,768	)		(15,768	)		–			–			–
Earnings from discontinued operations attributable to noncontrolling interests		(83,755	)		(83,755	)		–			–			–			(6,147	)		(6,147	)		–			–			–
Noncontrolling interests		(86,096	)		(86,096	)		–			–			–			(21,915	)		(21,915	)		–			–			–
Net earnings attributable to Forest City Enterprises, Inc.	$	17,676		$	–		$	–		$	–		$	17,676		$	60,493		$	–		$	–		$	–		$	60,493
Preferred dividends		(11,550	)		–			–			–			(11,550	)		(7,957	)		–			–			–			(7,957	)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders	$	6,126		$	–		$	–		$	–		$	6,126		$	52,536		$	–		$	–		$	–		$	52,536
(a) Depreciation and amortization - Real Estate Groups	$	164,260		$	3,952		$	47,724		$	1,030		$	209,062		$	173,796		$	4,809		$	36,957		$	6,719		$	212,663
(b) Depreciation and amortization - Non-Real Estate		2,400			–			–			–			2,400			3,937			–			878			–			4,815
Total depreciation and amortization	$	166,660		$	3,952		$	47,724		$	1,030		$	211,462		$	177,733		$	4,809		$	37,835		$	6,719		$	217,478
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	9,036		$	427		$	2,157		$	333		$	11,099		$	8,655		$	327		$	1,631		$	765		$	10,724
(d) Amortization of mortgage procurement costs - Non-Real Estate		–			–			–			–			–			–			–			69			–			69
Total amortization of mortgage procurement costs	$	9,036		$	427		$	2,157		$	333		$	11,099		$	8,655		$	327		$	1,700		$	765		$	10,793

19

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Results of Operations

Net Earnings (Loss) Attributable to Forest City Enterprises, Inc. – Net loss attributable to Forest City Enterprises, Inc. for the three months ended October 31, 2011 was $38,025,000 versus $46,791,000 for the three months ended October 31, 2010. Although we have substantial recurring revenue from our properties, we also periodically enter into significant transactions, which can create substantial variances in net earnings between periods. This variance to the prior year is primarily attributable to the following increases, which are net of noncontrolling interest:

• $13,277,000 (which includes $1,900,000 for unconsolidated entities) related to increased gains on extinguishment of debt in 2011 compared to 2010;

• $7,938,000 related to the 2011 decrease in impairment charges of consolidated (including discontinued operations) and unconsolidated entities;

• $5,849,000 related to the 2011 gain on disposition of partial interest in the Mall at Stonecrest, a regional mall in Atlanta, Georgia, related to the formation of a new joint venture with an outside partner;

• $2,656,000 related to transaction costs expensed during 2010 that were incurred in connection with a potential partial disposition of certain rental properties that did not occur; and

• $23,384,000 due to decreased income tax expense attributable to both continuing and discontinued operations primarily related to the various transactions discussed herein.

These increases were partially offset by the following decreases, net of noncontrolling interest:

• $10,868,000 related to a 2011 increase in allocated losses from our equity investment in The Nets;

• $8,658,000 related to the 2010 gains on disposition of our unconsolidated investments in Woodbridge Crossing, a specialty retail center in Woodbridge, New Jersey, and Pebble Creek, an apartment community in Twinsburg, Ohio;

• $3,702,000 (which includes $343,000 for unconsolidated entities) of increased write-offs of abandoned development projects in 2011 compared to 2010;

• $3,278,000 related to the change in fair market value of certain derivatives between the comparable periods, which was marked to market through interest expense as a result of the derivatives not qualifying for hedge accounting; and

• $2,396,000 primarily related to decreased occupancy at Two MetroTech Center, an office building in Brooklyn, New York.

Net earnings attributable to Forest City Enterprises, Inc. for the nine months ended October 31, 2011 was $17,676,000 versus $60,493,000 for the nine months ended October 31, 2010. The variance to the prior year is primarily attributable to the following decreases, which are net of noncontrolling interest:

• $176,192,000 related to the 2010 gain on disposition of partial interest in seven mixed-use University Park life science properties, related to the formation of a new joint venture with an outside partner;

• $31,437,000 related to the 2010 gain on disposition of partial interest in The Nets;

• $29,342,000 related to the 2010 gain on disposition of partial interest in The Grand, Lenox Club and Lenox Park, apartment communities in the Washington D.C. metropolitan area, related to the formation of a new joint venture with an outside partner;

• $7,210,000 primarily related to decreased occupancy at Two MetroTech Center;

• $6,353,000 (which includes $2,900,000 for unconsolidated entities) of increased write-offs of abandoned development projects in 2011 compared to 2010;

• $6,098,000 related to increases in professional fees associated with strategic planning and process improvement initiatives;

• $3,206,000 related to a 2011 increase in allocated losses from our equity investment in The Nets; and

20

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

• $3,034,000 (which includes $455,000 for unconsolidated entities) related to decreased gains on early extinguishment of debt in 2011 compared to 2010.

These decreases were partially offset by the following increases, net of noncontrolling interest:

• $64,559,000 related to the 2011 decrease in impairment charges of consolidated (including discontinued operations) and unconsolidated entities;

• $42,622,000 related to the 2011 sale of land and air rights for development of a casino in downtown Cleveland, Ohio;

• $39,373,000 related to the 2011 gains on disposition of rental properties exceeding 2010 gains. The 2011 gain related to Waterfront Station – East 4^th & West 4^th Buildings, office buildings in Washington, D.C., and Charleston Marriott, a hotel in Charleston, West Virginia, while the 2010 gains related to the disposition of 101 San Fernando, an apartment community in San Jose, California and Saddle Rock Village, a specialty retail center in Aurora, Colorado;

• $9,561,000 due to the 2011 gain on disposition of partial interests in 15 retail properties in the New York City metropolitan area, related to the formation of new joint venture agreements with an outside partner;

• $5,849,000 related to the 2011 gain on disposition of partial interest in the Mall at Stonecrest, related to the formation of a new joint venture with an outside partner;

• $5,135,000 related to the change in fair market value of certain derivatives between the comparable periods, which was marked to market through interest expense as a result of the derivatives not qualifying for hedge accounting;

• $4,739,000 related to the 2011 gains on disposition of our unconsolidated investments exceeding 2010 gains. The 2011 gains related to Metropolitan Lofts and Twin Lake Towers, apartment communities in Los Angeles, California and Denver, Colorado, respectively, while the 2010 gain primarily related to Woodbridge Crossing and Pebble Creek;

• $3,142,000 related to an increase in income recognized on the sale of state and federal Historic Preservation Tax Credits and New Market Tax Credits in 2011 compared to 2010;

• $2,656,000 related to transaction costs expensed during 2010 that were incurred in connection with a potential partial disposition of certain rental properties that did not occur; and

• $50,216,000 due to decreased income tax expense attributable to both continuing and discontinued operations primarily related to the various transactions discussed herein.

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 and amortization of mortgage procurement costs for non-real estate groups) plus interest income plus equity in earnings (loss) of unconsolidated entities (excluding gain on disposition and impairment of unconsolidated entities) plus depreciation and amortization of unconsolidated entities. 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.

Full Consolidation – Under the full consolidation method (GAAP), NOI from the combination of the Commercial Group and the Residential Group (“Rental Properties”) for the three months ended October 31, 2011 was $139,281,000 compared to $170,517,000 for the three months ended October 31, 2010, a 18.3% decrease. NOI for the nine months ended October 31, 2011 was $476,573,000 compared to $483,102,000 for the nine months ended October 31, 2010, a 1.4% decrease.

Pro-Rata Consolidation – 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 Rental Properties for the three months ended October 31, 2011 was $161,499,000 compared to $189,067,000 for the three months ended October 31, 2010, a 14.6% decrease. NOI for the nine months ended October 31, 2011 was $542,635,000 compared to $538,184,000 for the nine months ended October 31, 2010, a 0.8% increase. The primary drivers of the nine month change were the NOI generated from the casino land sale within the Commercial Group of $42,622,000 offset by reduced NOI from our joint venture transactions.

21

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Comparable NOI decreased 1.5% for the three months ended October 31, 2011 compared to the prior year. Retail, office and hotel comparable NOI decreased 1.5%, 7.6% and 6.7%, respectively, and our residential portfolio increased 12.0%. Comparable NOI increased 0.3% for the nine months ended October 31, 2011 compared to the prior year. Retail and residential comparable NOI increased 1.1% and 6.7%, respectively, while office and hotel comparable NOI decreased 3.1% and 8.7% respectively.

Capital Expenditures for our Operating Portfolio - Our diversified real estate portfolio requires certain capital expenditures, including tenant improvements, to maintain and improve its operating performance. During the nine months ended October 31, 2011 we invested $62,385,000 at pro-rata consolidation ($45,539,000 at full consolidation) in capital expenditures for our operating portfolio as compared to $68,501,000 at pro-rata consolidation ($62,075,000 at full consolidation) during the nine months ended October 31, 2010.

EBDT - We use an additional measure, along with net earnings, to report our operating results. This non-GAAP measure, referred to as 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 for real estate depreciation, amortization, and amortization of mortgage procurement costs; iv) deferred income taxes; v) preferred payment which is classified as noncontrolling interest expense on our Consolidated Statement of Operations; vi) impairment of real estate (net of tax); vii) extraordinary items (net of tax); and viii) cumulative or retrospective effect of change in accounting principle (net of tax).

EBDT is reconciled to net earnings (loss), the most comparable financial measure calculated in accordance with GAAP, on page 26. 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 income taxes, which are the result of timing differences of certain income and expense items which are to be realized 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 impairment of 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.

Effective during the nine months ended October 31, 2011, under the direction of the Company’s chief operating decision maker, EBDT which is provided in order to assess performance for the Real Estate Groups and The Nets was on a pre-tax basis. The Corporate Activity segment controls the tax strategies and evaluates results on a consolidated basis. As a result, beginning February 1, 2011, the Company will no longer allocate income tax expense (benefit) to the Real Estate Groups or The Nets. In addition, based on the consolidated evaluation of income taxes, it was determined that EBDT would exclude all deferred income taxes instead of just those attributable to the Real Estate Groups.

Our EBDT for the three months ended October 31, 2011 decreased by $13,222,000 or 14.6% to $77,477,000 from $90,699,000 for the three months ended October 31, 2010. The fluctuations in EBDT by Segment are as follows:

• Our Commercial and Residential Segments combined provided a pre-tax EBDT decrease of $14,953,000. This is primarily related to reduced EBDT from properties sold of $8,967,000, reduced EBDT of $4,308,000 primarily due to decreased occupancy at two Brooklyn office properties, increased write-offs of abandoned development projects of $4,044,000, decreased EBDT from the change in fair market value of derivatives between the comparable periods which were marked to market through interest expense of $3,286,000, reduced EBDT from new property openings of $3,275,000 primarily due to lease up losses at Westchester’s Ridge Hill and 8 Spruce Street. These decreases in the portfolio were partially offset by the increased gains on early extinguishment of nonrecourse mortgage debt of $11,351,000;

22

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

• Our Land Segment provided a pre-tax EBDT increase of $3,384,000, primarily due the 2011 gain on early extinguishment of nonrecourse mortgage debt of $1,926,000. The remaining EBDT increase of $1,458,000 was from an increase in sales activity from the previous comparable quarter;

• The Nets provided a pre-tax EBDT decrease of $10,868,000 due to the increase in our allocated losses;

• Corporate pre-tax EBDT decreased $3,189,000 primarily due to professional fees associated with strategic planning and process improvement initiatives; and

• EBDT was favorably impacted by a larger tax benefit of $12,404,000 compared to prior year.

Our EBDT for the nine months ended October 31, 2011 increased by $8,833,000 or 3.3% to $275,559,000 from $266,726,000 for the nine months ended October 31, 2010. The fluctuations in EBDT by Segment are as follows:

• Our Commercial and Residential Segments combined provided a pre-tax EBDT increase of $40,671,000. This is primarily related to the 2011 sale of land and air rights to Rock Ohio of $42,622,000, increased gains on early extinguishment of nonrecourse mortgage debt of $14,033,000, decreased interest expense on our mature portfolio of $5,107,000, increased EBDT from the change in fair market value of derivatives between the comparable periods which were marked to market through interest expense of $5,022,000, and increased income recognized from state and federal Historic Preservation and New Market tax credits of $4,640,000. These increases in the portfolio were partially offset by reduced EBDT from properties sold of $19,412,000, increased write-offs of abandoned development projects of $6,695,000, reduced EBDT of $5,462,000 primarily due to decreased occupancy at Two MetroTech Center, and reduced EBDT from new property openings of $4,267,000 primarily due to lease up losses at 8 Spruce Street, Westchester’s Ridge Hill and Presidio Landmark partially offset by the ramp up of other new property openings;

• Our Land Segment provided a pre-tax EBDT increase of $3,998,000, primarily due the 2011 gain on early extinguishment of nonrecourse mortgage debt of $1,926,000. The remaining EBDT increase of $2,072,000 was from an increase in sales activity from the previous comparable period;

• The Nets provided a pre-tax EBDT decrease of $34,643,000, primarily due to the nonrecurring 2010 gain on disposition of partial interest of $31,437,000. The remaining EBDT decrease is due to the increase in our allocated losses of $3,206,000;

• Corporate pre-tax EBDT decreased $20,235,000. This pre-tax EBDT decrease includes the 2011 loss on early extinguishment of debt on the exchange of a portion of our Senior Notes for Class A common stock of $10,800,000 and the nonrecurring 2010 gain on early extinguishment of debt related to the exchange of a portion of our Senior Notes of $8,193,000; and

• EBDT was favorably impacted by a larger tax benefit of $19,042,000 compared to prior year.

23

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

24

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

25

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Summary of EBDT - The information in the following tables present amounts for both full consolidation and pro-rata consolidation, providing a reconciliation of the difference between the two methods, as well as a reconciliation from NOI to EBDT to net earnings (loss). 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 VIEs, or on the equity method of accounting if we do not have control or are not the primary beneficiary for investments in VIEs.

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

	Three Months Ended October 31,					Nine Months Ended October 31,
	2011			2010		2011			2010
	(in thousands)					(in thousands)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(38,025	)	$	(46,791)	$	17,676		$	60,493
Depreciation and amortization – Real Estate Groups (4)		71,304			72,920		209,062			212,663
Amortization of mortgage procurement costs – Real Estate Groups (4)		4,052			4,029		11,099			10,724
Deferred income tax expense (5)		(3,328	)		14,001		7,838			58,400
Remove non-Real Estate deferred taxes for 2010 only (5)		–			(6,539)		–			(13,196)
Current income tax expense on non-operating earnings: (5)
Gain on disposition of rental properties and partial interest in rental properties		10			413		39,179			35,877
Gain on disposition included in discontinued operations		–			(213)		2,792			(98)
Straight-line rent adjustment (2)		(3,268	)		(2,667)		(2,995	)		(10,247)
Preference payment (3)		585			585		1,756			1,756
Impairment of consolidated real estate		10,707			4,177		15,777			5,277
Impairment of unconsolidated real estate		41,289			21,564		41,289			36,745
(Gain) loss on disposition of rental properties and partial interest in rental properties		(5,849	)		2,257		(15,410	)		(202,878)
Gain on disposition of unconsolidated entities		–			(8,658)		(12,567	)		(7,828)
Discontinued operations: (1)
(Gain) loss on disposition of rental properties		–			1,428		(121,695	)		(4,776)
Impairment of real estate		–			34,193		–			79,603
Noncontrolling interest - Gain on disposition		–			–		81,758			4,211
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)	$	77,477		$	90,699	$	275,559		$	266,726
EBDT Per Share
Numerator (in thousands) :
EBDT	$	77,477		$	90,699	$	275,559		$	266,726
If-Converted Method (Pro forma numerator adjustment for interest, net of tax):
3.625% Puttable Senior Notes due 2014		1,110			1,110		3,329			3,329
5% Convertible Senior Notes due 2016		382			1,530		1,485			4,591
4.25% Convertible Senior Notes due 2018		2,277			–		2,605			–
EBDT for per share data	$	81,246		$	93,339	$	282,978		$	274,646
Denominator
Weighted average shares outstanding - Basic		169,150,429			155,484,451		167,838,122			155,431,893
Effect of stock options and restricted stock		566,701			462,812		880,004			466,380
Effect of convertible preferred stock		14,550,257			14,550,257		14,550,257			12,631,541
Effect of convertible debt		33,499,503			28,133,038		24,593,376			28,133,038
Effect of convertible Class A Common Units		3,646,755			3,646,755		3,646,755			3,646,755
Weighted average shares outstanding - Diluted		221,413,645			202,277,313		211,508,514			200,309,607
EBDT Per Share	$	0.37		$	0.46	$	1.34		$	1.37

EBDT Per Share
Quarterly Historical Trends	Three Months Ended
	October 31, 2011		July 31, 2011		April 30, 2011		January 31, 2011		October 31, 2010
Numerator (in thousands) :
EBDT	$	77,477	$	70,706	$	127,376	$	43,149	$	90,699
If-Converted Method (Pro forma numerator adjustment for interest, net of tax):
3.625% Puttable Senior Notes due 2014		1,110		1,110		1,110		1,110		1,110
5% Convertible Senior Notes due 2016		382		413		688		1,521		1,530
4.25% Convertible Senior Notes due 2018		2,277		329		–		–		–
EBDT for per share data	$	81,246	$	72,558	$	129,174	$	45,780	$	93,339
Denominator
Weighted average shares outstanding - Basic		169,150,429		168,788,754		165,498,904		155,643,554		155,484,451
Effect of stock options and restricted stock		566,701		1,019,210		1,054,102		803,779		462,812
Effect of convertible preferred stock		14,550,257		14,550,257		14,550,257		14,550,257		14,550,257
Effect of convertible debt		33,499,503		19,912,982		20,225,204		28,047,083		28,133,038
Effect of convertible Class A Common Units		3,646,755		3,646,755		3,646,755		3,646,755		3,646,755
Weighted average shares outstanding - Diluted		221,413,645		207,917,958		204,975,222		202,691,428		202,277,313
EBDT Per Share	$	0.37	$	0.35	$	0.63	$	0.23	$	0.46

26

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

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

(1) All earnings of properties which have been sold or are held for sale are reported as discontinued operations assuming no significant continuing involvement.

(2) The Company recognizes minimum rents on a straight-line basis over the term of the related lease pursuant to accounting for leases. The straight-line rent adjustment is recorded as an increase or decrease to revenue or operating expense 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.

(3) The preference payment represents the respective period’s share of the annual preferred payment in connection with the issuance of Class A Common Units in exchange for Bruce C. Ratner’s noncontrolling interest in the Forest City Ratner Companies portfolio.

(4) The following table provides detail of depreciation and amortization and amortization of mortgage procurement costs presented in thousands.

	Depreciation and Amortization												Amortization of Mortgage Procurement Costs
	Three Months Ended October 31,						Nine Months Ended October 31,						Three Months Ended October 31,						Nine Months Ended October 31,
	2011			2010			2011			2010			2011			2010			2011			2010
Full Consolidation	$	55,415		$	60,367		$	166,660		$	177,733		$	3,414		$	3,322		$	9,036		$	8,655
Non-Real Estate		(1,012	)		(1,184	)		(2,400	)		(3,937	)		–			–			–			–
Real Estate Groups Full Consolidation		54,403			59,183			164,260			173,796			3,414			3,322			9,036			8,655
Real Estate Groups related to noncontrolling interest		(1,123	)		(1,528	)		(3,952	)		(4,809	)		(167	)		(126	)		(427	)		(327	)
Real Estate Groups Unconsolidated		18,024			13,322			47,724			36,957			805			549			2,157			1,631
Real Estate Groups Discontinued Operations		–			1,943			1,030			6,719			–			284			333			765
Real Estate Groups Pro-Rata Consolidation	$	71,304		$	72,920		$	209,062		$	212,663		$	4,052		$	4,029		$	11,099		$	10,724

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

	Three Months Ended October 31,				Nine Months Ended October 31,
	2011		2010		2011		2010
	(in thousands)				(in thousands)
Current taxes
Operating earnings	$	(13,900)	$	(7,872)	$	(37,935)	$	(31,766)
Gain on disposition of rental properties and partial interest in rental properties		10		413		39,179		35,877
Subtotal		(13,890)		(7,459)		1,244		4,111
Discontinued operations
Operating earnings		–		(163)		149		(174)
Gain on disposition of rental properties and partial interest in rental properties		–		(213)		2,792		(98)
Subtotal		–		(376)		2,941		(272)
Total Current taxes		(13,890)		(7,835)		4,185		3,839
Deferred taxes
Continuing operations		(3,328)		26,960		(6,720)		87,586
Discontinued operations		–		(12,959)		14,558		(29,186)
Total Deferred taxes		(3,328)		14,001		7,838		58,400
Grand Total	$	(17,218)	$	6,166	$	12,023	$	62,239
2010 Recap of Grand Total:
Real Estate Groups
Current			$	908			$	20,964
Deferred				7,462				45,204
				8,370				66,168
Non-Real Estate Groups
Current				(8,743)				(17,125)
Deferred				6,539				13,196
				(2,204)				(3,929)
Grand Total			$	6,166			$	62,239

27

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Retail Lease Expirations as of October 31, 2011

EXPIRATION YEAR	NUMBER OF EXPIRING LEASES		SQUARE FEET OF EXPIRING LEASES (3)		PERCENTAGE OF TOTAL LEASED GLA (1)		NET BASE RENT EXPIRING (2)		PERCENTAGE OF TOTAL BASE RENT		AVERAGE BASE RENT PER SQUARE FEET EXPIRING (3)
2011		167		603,127		4.66   %	$	12,703,390		4.98   %	$	29.31
2012		274		968,441		7.48		19,620,106		7.70		27.65
2013		317		1,162,062		8.97		25,115,259		9.85		27.22
2014		270		1,119,901		8.65		21,137,490		8.29		27.74
2015		206		830,644		6.41		18,655,790		7.32		29.60
2016		251		1,325,658		10.23		30,065,527		11.80		37.11
2017		154		1,003,325		7.75		20,462,786		8.03		26.28
2018		157		735,426		5.68		18,523,696		7.27		27.84
2019		119		1,055,411		8.15		19,976,469		7.84		24.73
2020		112		877,940		6.78		17,259,193		6.77		29.56
2021		95		1,093,814		8.44		20,000,838		7.85		29.06
Thereafter		72		2,176,203		16.80		31,353,489		12.30		20.26
Total		2,194		12,951,952		100.00  %	$	254,874,033		100.00  %	$	27.46

(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 our 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, amortization of above and below market lease values in-place, and contingent rental payments (which are not reasonably estimable).

(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.

28

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Office Lease Expirations as of October 31, 2011

EXPIRATION YEAR	NUMBER OF EXPIRING LEASES		SQUARE FEET OF EXPIRING LEASES (3)		PERCENTAGE OF TOTAL LEASED GLA (1)		NET BASE RENT EXPIRING  (2)		PERCENTAGE OF TOTAL BASE RENT		AVERAGE BASE RENT PER SQUARE FEET EXPIRING (3)
2011		34		233,788		2.10    %	$	4,603,027		1.55    %	$	20.10
2012		95		971,527		8.73		24,991,425		8.41		31.54
2013		92		1,130,969		10.16		24,730,917		8.32		22.53
2014		69		752,511		6.76		15,576,502		5.24		32.44
2015		44		481,535		4.32		8,911,541		3.00		21.33
2016		58		853,617		7.67		19,706,651		6.63		31.04
2017		25		440,809		3.96		10,696,425		3.60		25.74
2018		26		1,250,069		11.23		34,572,037		11.63		32.10
2019		21		833,834		7.49		14,876,907		5.00		25.48
2020		14		1,044,824		9.39		27,809,337		9.36		32.97
2021		11		637,086		5.72		9,690,936		3.26		20.18
Thereafter		33		2,501,293		22.47		101,044,411		34.00		42.07
Total		522		11,131,862		100.00    %	$	297,210,116		100.00    %	$	31.19

(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 our 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, amortization of above and below market lease values in-place, and contingent rental payments (which are not reasonably estimable).

(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.

29

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Significant Retail Tenants as of October 31, 2011

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

TENANT	NUMBER OF LEASES		LEASED SQUARE FEET		PERCENTAGE OF TOTAL RETAIL SQUARE FEET
Bass Pro Shops, Inc.		3		510,855		3.94    %
Regal Entertainment Group		5		381,461		2.95
AMC Entertainment, Inc.		5		377,797		2.92
TJX Companies		11		347,457		2.68
Dick’s Sporting Goods		7		342,887		2.65
The Gap		26		336,900		2.60
The Limited		37		220,357		1.70
Best Buy		6		207,969		1.61
Abercrombie & Fitch Stores, Inc.		27		194,549		1.50
Footlocker, Inc.		35		135,753		1.05
Forever 21, Inc.		9		103,368		0.80
American Eagle Outfitters, Inc.		16		91,343		0.70
Subtotal		187		3,250,696		25.10
All Others		2,007		9,701,256		74.90
Total		2,194		12,951,952		100.00    %

30

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Significant Office Tenants as of October 31, 2011

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

TENANT	LEASED SQUARE FEET		PERCENTAGE OF TOTAL OFFICE SQUARE FEET
City of New York		1,044,167		9.38    %
Millennium Pharmaceuticals, Inc.		698,066		6.27
U.S. Government		647,983		5.82
WellPoint, Inc.		392,514		3.53
JP Morgan Chase & Co.		383,341		3.44
Morgan Stanley & Co.		377,304		3.39
Forest City Enterprises, Inc. (1)		356,187		3.20
Bank of New York		323,043		2.90
National Grid		254,034		2.28
Clearbridge Advisors, LLC, a Legg Mason Company		193,249		1.74
Covington & Burling, LLP		160,565		1.44
Seyfarth Shaw, LLP		96,909		0.87
Subtotal		4,927,362		44.26
All Others		6,204,500		55.74
Total		11,131,862		100.00    %

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

31

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Openings and Acquisitions

as of October 31, 2011

Property	Location	Dev (D) Acq (A)	Date Opened / Acquired	FCE Legal Ownership % (a)	Pro-Rata FCE % (a) (1)	Cost at Full Consolidation (GAAP) (b)		Total Cost at 100% (2)		Cost at FCE Pro-Rata Share (Non-GAAP) (c) (1) X (2)		Sq. ft./ No. of Units		Gross Leasable Area		Lease Commitment %
2011 (2)						(in millions)
Retail Centers:
Westchester’s Ridge Hill (d) (q)	Yonkers, NY	D	Q2-11/12	70.0%	100.0%	$	0.0	$	0.0	$	0.0		400,000		400,000
Residential:
8 Spruce Street (f) (j)	Manhattan, NY	D	Q1-11/12	35.7%	51.0%	$	0.0	$	875.7	$	446.6		903				61	%
Prior Two Years Openings (7) as of October 31, 2011
Retail Centers: (h)
Village at Gulfstream Park (f)	Hallandale Beach, FL	D	Q1-10	50.0%	50.0%	$	0.0	$	198.9	$	99.5		511,000		511,000		78	%
East River Plaza (f)	Manhattan, NY	D	Q4-09/Q2-10	35.0%	50.0%		0.0		390.6		195.3		527,000		527,000		94	%
Promenade in Temecula Expansion	Temecula, CA	D	Q1-09	75.0%	100.0%		113.4		113.4		113.4		127,000		127,000		86	%
						$	113.4	$	702.9	$	408.2		1,165,000		1,165,000
Office:
Waterfront Station
- East 4th & West 4th Bldgs (Sold Q2-11) (g)	Washington, D.C.	D	Q1-10	45.0%	45.0%	$	245.9	$	245.9	$	110.7		631,000				99	%
Residential: (h)
Presidio Landmark	San Francisco, CA	D	Q3-10	100.0%	100.0%	$	96.6	$	96.6	$	96.6		161				83	%
North Church Towers	Parma Heights, OH	A	Q3-09	100.0%	100.0%		5.2		5.2		5.2		399				86	%
DKLB BKLN (f)	Brooklyn, NY	D	Q4-09/Q2-10	40.8%	51.0%		0.0		160.1		81.7		365				99	%
						$	101.8	$	261.9	$	183.5		925
Total Prior Two Years Openings (i)						$	461.1	$	1,210.7	$	702.4
Recap of Total Prior Two Years Openings
Total 2010						$	342.5	$	932.0	$	502.1
Total 2009							118.6		278.7		200.3
Total Prior Two Years Openings (i)						$	461.1	$	1,210.7	$	702.4

See footnotes on the following pages.

32

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Projects Under Construction (8)

as of October 31, 2011

Property	Location	Anticipated Opening	FCE Legal Ownership % (a)		Pro-Rata FCE % (a) (1)			Cost at Full Consolidation (GAAP) (b)		Total Cost at 100% (2)		Cost at FCE Pro-Rata Share (Non-GAAP) (c) (1) X (2)		Sq. ft./ No. of Units		Gross Leasable Area			Lease Commitment %
								(in millions)
Retail Centers: (m)
Westchester’s Ridge Hill (e)	Yonkers, NY	Q2-11/12		70.0%		100.0	%	$	842.4	$	842.4	$	842.4		1,336,000		1,336,000	(l)		56	%
The Yards - Boilermaker Shops	Washington, D.C.	Q3-12		100.0%		100.0	%		19.4		19.4		19.4		41,000		41,000			73	%
								$	861.8	$	861.8	$	861.8		1,377,000		1,377,000
Office:
Johns Hopkins Parking Garage	Baltimore, MD	Q3-12		100.0%		100.0	%	$	30.1	$	30.1	$	30.1		492,000
Residential:
Foundry Lofts (r)	Washington, D.C.	Q4-11		100.0%		100.0	%	$	61.4	$	61.4	$	61.4		170
The Aster Town Center (formerly Novella)	Denver, CO	Q3-12		90.0%		90.0	%		10.9		10.9		9.8		85
Botanica Eastbridge	Denver, CO	Q4-12		90.0%		90.0	%		15.4		15.4		13.9		118
Continental Building	Dallas, TX	Q1-13		100.0%		100.0	%		54.3		54.3		54.3		203
								$	142.0	$	142.0	$	139.4		576
Arena:
Barclays Center	Brooklyn, NY	Q3-12		33.8%		33.8	%	$	904.3	$	904.3	$	305.9		670,000		18,000 seats	(n)		56	% (o)
Total Under Construction (k)								$	1,938.2	$	1,938.2	$	1,337.2
Fee Development Project
Las Vegas City Hall	Las Vegas, NV	Q1-12		–        (p)		–	(p)	$	0.0	$	146.2	$	0.0		270,000

FOOTNOTES

(a) 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.

(b) 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”).

(c) 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.

(d) See the Under Construction pipeline for cost details of the total property.

(e) Phased-in opening includes the total cost and square footage of the center, including the tenants that have opened in 2011.

(f) 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.

(g) Property was sold on May 10, 2011 and was 99% leased at time of sale.

(h) The lease percentage represents occupancy as of November 30, 2011.

33

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

FOOTNOTES (continued)

(i) The difference between the full consolidation cost amount (GAAP) of $461.1 million to the Company’s pro-rata share (a non-GAAP measure) of $702.4 million consists of a reduction to full consolidation for noncontrolling interest of $135.2 million of cost and the addition of its share of cost for unconsolidated investments of $376.5 million.

(j) Phased in opening. Costs are representative of the total project cost, including 689 units opened as of October 31, 2011. As of October 31, 2011, $307.4 million of costs incurred at pro-rata consolidation and $194.3 million of mortgage debt at pro-rata consolidation were transferred to completed rental properties. As of October 31, 2011, projects under construction include $127.4 million of costs incurred at pro-rata consolidation and $80.6 million of mortgage debt at pro-rata consolidation. As of November 30, 2011, 550 leases have been signed since appointments with prospective residents began on February 18, 2011, representing 61% of the total 903 units after construction is complete.

(k) The difference between the full consolidation cost amount (GAAP) of $1,938.2 million to the Company’s pro-rata share (a non-GAAP measure) of $1,337.2 million consists of a reduction to full consolidation for noncontrolling interest of $601.0 million of cost.

(l) Includes 156,000 square feet of office space.

(m) Updated lease commitments as of November 30, 2011.

(n) The Nets, a member of the NBA, has a 37 year license agreement to use the arena.

(o) Represents the percentage of forecasted contractually obligated arena income that is under contract. Contractually obligated income, which includes revenue from naming rights, sponsorships, suite licenses, Nets minimum rent and food concession agreements, accounts for 72% of total forecasted revenues for the arena.

(p) This is a fee development project. Therefore, these costs are not included on the full consolidation or pro-rata balance sheet.

(q) As of October 31, 2011, $217.5 million of costs incurred at pro-rata consolidation and $124.3 million of mortgage debt at pro-rata consolidation were transferred to completed rental properties. As of October 31, 2011, projects under construction include $575.5 million of costs incurred at pro-rata consolidation and $328.9 million of mortgage debt at pro-rata consolidation.

(r) Property opened on November 17, 2011.

Equity Requirements for Projects Under Construction ^(a)

as of October 31, 2011

	100%		Less Unconsolidated Investments at 100%		Full Consolidation (GAAP) (b)		Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Pro-Rata Consolidation (Non-GAAP) (c)
	(dollars in millions)
Total Cost Under Construction	$	1,938.2	$	–	$	1,938.2	$	601.0	$	–	$	1,337.2
Total Loan Draws and Other Sources at Completion (d)		1,229.3		–		1,229.3		378.3		–		851.0
Net Equity at Completion		708.9		–		708.9		222.7		–		486.2
Net Costs Incurred to Date (e)		1,309.2		–		1,309.2		328.3		–		980.9
Loan Draws and Other Sources to Date (e)		649.8		–		649.8		105.6		–		544.2
Net Equity to Date (e)		659.4		–		659.4		222.7		–		436.7
% of Total Equity		93%				93%						90%
Remaining Costs		629.0		–		629.0		272.7		–		356.3
Remaining Loan Draws and Other Sources		579.5		–		579.5		272.7		–		306.8
Remaining Equity	$	49.5	$	–	$	49.5	$	–	$	–	$	49.5
% of Total Equity		7%				7%						10%

(a) This schedule includes only the eight properties listed on the previous page. This does not include costs associated with phased-in units, operating property renovations and military housing.

(b) 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”).

(c) 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.

(d) “Other Sources” includes estimates of third party subsidies and tax credit proceeds. The timing and the amounts may differ from our estimates.

(e) Reflects activity through October 31, 2011.

34

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Projects Under Development

as of October 31, 2011

Below is a summary of our active large scale development projects, which have yet to commence construction, often referred to as our “shadow pipeline” which are crucial to our long-term growth. While we cannot make any assurances on the timing or delivery of these projects, our track record speaks to our ability to bring large, complex projects to fruition when there is demand and available construction financing. The projects listed below represent pro-rata costs of $755.9 million ($946.3 million at full consolidation) of Projects Under Development (“PUD”) on our balance sheet and pro-rata mortgage debt of $132.7 million ($176.8 million at full consolidation).

1) Atlantic Yards - Brooklyn, NY

Atlantic Yards is adjacent to the state-of-the art arena, the Barclays Center, which is designed by the award-winning firms Ellerbe Becket and SHoP Architects and is currently under construction. In addition, Atlantic Yards is expected to feature more than 6,400 units of housing, including over 2,200 affordable units, approximately 250,000 square feet of retail space, and more than 8 acres of landscaped open space.

2) LiveWork Las Vegas - Las Vegas, NV

LiveWork Las Vegas is a mixed-use project on a 13.5-acre parcel in downtown Las Vegas. At full build-out, the project will have a new 260,000-square-foot City Hall for Las Vegas and is also expected to include up to 1 million square feet of office space and approximately 300,000 square feet of retail. The City Hall is owned by the city of Las Vegas and is a fee-development project.

3) The Yards - Washington, D.C.

The Yards is a 42-acre mixed-use project, located in the neighborhood of the Washington Nationals baseball park in Southeast D.C. The full development is expected to include up to 2,700 residential units, 1.8 million square feet of office space, and 300,000 square feet of retail and dining space. The Yards features a 5.5-acre publicly funded public park that is a gathering place and recreational focus for the community. The first residential building, Foundry Lofts, remained under construction as of October 31, 2011 and subsequently opened in November 2011.

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

The 31-acre Science + Technology Park at Johns Hopkins is a new center for collaborative research directly adjacent to the world-renowned Johns Hopkins medical and research complex. Initial plans call for 1.1 million square feet in five buildings, with future phases that could support additional expansion. In 2008, the Company opened the first of those buildings, 855 North Wolfe Street, a 279,000-square-foot office building anchored by the Johns Hopkins School of Medicine’s Institute for Basic Biomedical Sciences. Development of a 492,000-square-foot garage at 901 N. Washington Street is currently underway and will provide approximately 1,450 parking spaces for Johns Hopkins and the active buildings at the Science + Technology Park when it is completed in Q3-12. Construction of a second commercial building totaling 234,000-square-feet is expected to commence by the beginning of 2012. The new building, which will be developed on a fee basis, will be fully leased to the Department of Health & Mental Hygiene (DHMH) when it is expected to open in Q2-14.

5) Colorado Science + Technology Park at Fitzsimons - Aurora, CO

The 184-acre Colorado Science + Technology Park at Fitzsimons is becoming a hub for the biotechnology industry in the Rocky Mountain region. Anchored by the University of Colorado at Denver Health Science Center, the University of Colorado Hospital and The Denver Children’s Hospital, the park will offer cost-effective lease rates; build-to-suit office and research sites; and flexible lab and office layouts in a cutting-edge research park. The park is also adjacent to Forest City’s 4,700-acre Stapleton mixed-used development.

6) Waterfront Station - Washington, D.C.

Located in Southwest Washington, D.C., Waterfront Station is adjacent to the Waterfront/Southeastern University MetroRail station. Waterfront Station is expected to include 660,000 square feet of office space, an estimated 400 residential units and 40,000 square feet of stores and restaurants.

7) 300 Massachusetts Avenue – Cambridge, MA

Located in the science and technology hub of Cambridge, MA, the 300 Massachusetts Avenue block represents an expansion of University Park @ MIT. In a 50/50 partnership with MIT, Forest City is presently focused on a project that reflects a development program of approximately 260,000 square feet of lab and office space. Potential redevelopment of the entire block is possible with the acquisition of adjacent parcels in future phases, and would result in an approximately 400,000 square foot project.

35

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Military Housing

as of October 31, 2011

Below is a summary of our Military Housing development projects. The Company provides development, construction and management services for these projects and receives agreed upon fees for these services. The following phases still have a percentage of units opened and under construction:

Property	Location	Anticipated Opening	FCE Pro-Rata %	Cost at Full Consolidation		Total Cost   at 100%		No. of Units
				(in millions)
Military Housing - Recent Openings (2)
Navy, Hawaii Increment III	Honolulu, HI	2007-Q1-11	*	$	0.0	$	464.8		2,520
Marines, Hawaii Increment II	Honolulu, HI	2007-Q2-11	*		0.0		292.7		1,175
Total Recent Openings				$	0.0	$	757.5		3,695
Military Housing - Under Construction (9)
Pacific Northwest Communities	Seattle, WA	2007-2011	*	$	0.0	$	280.5		2,985
Navy Midwest	Chicago, IL	2006-2012	*		0.0		200.3		1,401
Midwest Millington	Memphis, TN	2008-2012	*		0.0		33.1		318
Air Force Academy	Colorado Springs, CO	2007-2013	50.0%		0.0		69.5		427
Hawaii Phase IV	Kaneohe, HI	2007-2014	*		0.0		475.1		1,141
Air Force - Southern Group:
Keesler Air Force Base	Biloxi, MS	Q3-Q4/2011	0.0%		0.0		5.0		1,188
Shaw Air Force Base	Sumter, SC	2011-2015	0.0%		0.0		156.5		630
Joint Base Charleston	Charleston, SC	2011-2015	0.0%		0.0		72.0		345
Arnold Air Force Base	Tullahoma, TN	2011-2015	0.0%		0.0		10.1		22
Subtotal Air Force - Southern Group				$	0.0	$	243.6		2,185
Total Under Construction				$	0.0	$	1,302.1		8,457

* The Company’s share of residual cash flow ranges from 0-20% during the life cycle of the project.

Commitment Executed

Air Force – Southern Group was awarded on August 30, 2010. This project is expected to include 2,185 end state units at four Air Force bases in Sumter, SC, Tullahoma, TN, Charleston, SC and Biloxi, MS. There are 330 financially excluded units that will not be encumbered by debt and which may be removed from the end state at the sole discretion of the Air Force. The financial closing of the project was executed on September 30, 2011 with property management and construction beginning on October 1, 2011.

Summary of Military Housing Net Operating Income (14,104 end-state units)

Development fees related to our military housing projects are earned based on a contractual percentage of the actual development costs incurred. We also recognize additional development incentive fees upon successful completion of certain criteria, such as incentives to realize development cost savings, encourage small and local business participation, comply with specified safety standards and other project management incentives as specified in the development agreements. NOI from development and development incentive fees is $2,408,000 and $4,225,000 for the three and nine months ended October 31, 2011, respectively, and $1,818,000 and $5,137,000 for the three and nine months ended October 31, 2010, respectively.

Construction management fees are earned based on a contractual percentage of the actual construction costs incurred. We also recognize certain construction incentive fees based upon successful completion of certain criteria as set forth in the construction contracts. NOI from construction and incentive fees is $911,000 and $2,937,000 for the three and nine months ended October 31, 2011, respectively, and $1,694,000 and $4,754,000 recognized during the three and nine months ended October 31, 2010, respectively.

Property management and asset management fees are earned based on a contractual percentage of the annual net rental income and annual operating income, respectively, that is generated by the military housing privatization projects as defined in the agreements. We also recognize certain property management incentive fees based upon successful completion of certain criteria as set forth in the property management agreements. Property management, management incentive and asset management fees generated NOI of $3,905,000 and $9,552,000 during the three and nine months ended October 31, 2011, respectively, and $3,563,000 and $9,805,000 during the three and nine months ended October 31, 2010, respectively.

36

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Land Held for Development or Sale

as of October 31, 2011

The Land Development Group acquires and sells raw land and sells fully-entitled developed lots to residential, commercial, and industrial customers. The Land Development Group also owns and develops raw land into master-planned communities, mixed-use projects and other residential developments. Below is a summary of our large Land Development Group projects.

Location	Gross       Acres (1)		Saleable     Acres (2)		Option     Acres  (3)
Stapleton - Denver, CO		197		127		1,358
Mesa del Sol - Albuquerque, NM		3,011		1,647		5,731
Central Station - Chicago, IL		30		30		–
Texas		2,782		1,538		–
North Carolina		1,222		998		788
Ohio		963		649		470
Arizona		661		486		–
Other		884		697		–
Total		9,750		6,172		8,347

(1) Represent all acres currently owned including those used for roadways, open spaces and parks.

(2) Saleable acres represent the total of all acres owned and available for sales. The Land Development Group may choose to further develop some of the acres into completed sublots prior to sale.

(3) Option acres are those acres that the Land Development Group has a formal option to acquire. Typically these options are in the form of purchase agreements with contingencies for the satisfaction of due diligence reviews.

Stapleton - Denver, CO

Stapleton represents one of the nation’s largest urban redevelopments. At full build out of 4,700 acres or 7.5 square miles, Stapleton is planned for more than 12,000 homes and apartments, a projected 3 million square-feet of retail and 10 million square-feet of office/research and development/industrial space. Centrally located 10 minutes east of Downtown Denver and 20 minutes from Denver International Airport, Stapleton is expected to be home to 30,000 residents and 35,000 workers when complete.

Mesa del Sol - Albuquerque, NM

Mesa del Sol is a 20-square mile, mixed-use community on the south mesa of Albuquerque, N.M., five minutes from the Albuquerque International Airport. Mesa del Sol’s master plan calls for mixed-use development that will include 1,400 acres for industrial/commercial and office development use, 4,400 acres for residential and supporting retail use, 3,200 acres for open space and parks and 800 acres for schools and universities.

Central Station - Chicago, IL

Located adjacent to the city’s Museum Campus, and just minutes from the heart of Chicago’s Loop, the 80-acre Central Station is a residential community with 3,727 residential units completed, of which 3,156 are occupied and 571 units are listed for sale, and another 4,000 units in development. Central Station, a 14 million-square-foot development, is being developed in partnership with The Fogelson Companies.

37

Forest City Enterprises, Inc.

and Subsidiaries Supplemental Operating Information

Land Held for Development or Sale (continued)

as of October 31, 2011

Other Significant Land Holdings

Legacy Lakes - Aberdeen, NC

Legacy Lakes is a master-planned community located in the Pinehurst area. This community is surrounding the Nicklaus-designed Legacy Golf Course. Legacy Lakes is 406 acres and includes 718 residential lots. Of the 406 total acres, 265 are saleable acres and 19 acres have been sold to date.

Gladden Farms - Marana, AZ

Gladden Farms is a master-planned community that includes residential and commercial uses in a suburban area of northwest Tucson. This community includes parks, trails and a school in a rural setting. Gladden Farms is 1,350 acres and includes 4,142 residential lots and 223 acres of commercial space. As of October 31, 2011, 1,270 lots and 100 commercial acres have been sold. Of the 1,350 total acres, 868 are saleable acres and 409 acres have been sold to date.

Cotton Creek - Mooresville, NC

Cotton Creek is a master-planned community located in a northern suburb of Charlotte, NC. This community will feature a variety of attached and detached home sites, which will be sold to a mix of national and local builders. Cotton Creek is 534 acres. When completed the development is expected to produce approximately 1,100 residential lots.

Three Stones – Prosper, TX

Three Stones is a master-planned community of 2,031 acres located in the growth corridor north of Dallas in the town of Prosper. The community is fully entitled and the plan includes approximately 3,090 single family lots, 600 units of attached housing, over 600 acres of parks and open space and 250 acres for commercial/retail use. A variety of single family lot sizes will be offered, as well as a complete amenity center. The development of Phase 1 is expected to be completed in mid-2013.

San Antonio Portfolio – San Antonio, TX

Forest City owns four multi-phase communities and finished lots in three additional locations in the San Antonio area, predominantly on the west side. As of October 31, 2011, over 1,000 of the total 2,563 lots have been sold. The remaining portfolio is comprised of 330 finished lots and 1,112 undeveloped “paper” lots. Our San Antonio communities serve several different price ranges, and all lots are under option contract to one of seven different builders.

Tangerine Crossing - Tucson, AZ

Tangerine Crossing is a master-planned gated residential community with a major retail component on the exterior in a desirable region of the Tucson metropolitan area. This community includes open space, trails and recreation. Tangerine Crossing is 309 acres and includes 396 residential lots and a 25-acre retail center. As of October 31, 2011, 240 lots and the 25 commercial acres have been sold. Of the 309 total acres, 98 are saleable acres and 71 acres have been sold to date.

Timberlake – Oak Point (Dallas), TX

Timberlake is a planned community of approximately 250 acres located in Denton County, north of Dallas. Forest City entered into this project earlier in 2011 through the formation of a new partnership with Taylor Duncan Interests, Inc. with Forest City providing capital for financing and development. The project is zoned for over 800 single family lots, and development of Phase 1 is expected to begin in 2012.

Woodforest – Houston, TX

Woodforest, which is not included in the acres on the previous page, is an active, 3,000-acre master-planned community, located in southern Montgomery County, north of Houston. Forest City entered into this project last year through the formation of a new partnership with Johnson Development, with Forest City providing capital for financing and development. The project is zoned for 5,700 units and six active home builders are currently involved with model homes in place serving a wide range of prices. Over 200 home sales have occurred to date. The project is being developed adjacent to the 27-hole Woodforest Golf Club that opened in 2001 and has been rated one of the top courses in the state.

38

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Debt for Projects under Construction and Development

We use nonrecourse mortgage debt and nonrecourse notes payable for the financing of our projects under construction and development. We draw on these financings to partially fund the cost incurred with the development of our real estate. As of October 31, 2011, the detail of how much is outstanding compared to the total commitment under the financing is as follows:

	Full       Consolidation        (GAAP)		Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Pro-Rata       Consolidation        (Non-GAAP)
	(in thousands)
Outstanding
Fixed	$	259,551	$	84,145	$	887	$	176,293
Variable
Taxable		420,378		23,834		52,074		448,618
Tax-Exempt		–		–		30,469		30,469
Total outstanding on projects under construction and development (1)	$	679,929	$	107,979	$	83,430	$	655,380
Commitment
Fixed	$	886,053	$	402,896	$	887	$	484,044
Variable
Taxable		542,144		25,623		52,074		568,595
Tax-Exempt		–		–		30,469		30,469
Total commitment	$	1,428,197	$	428,519	$	83,430	$	1,083,108

(1) Proceeds from outstanding debt of $14,022 and $19,275, at full and pro-rata consolidation, respectively, described above is recorded as restricted cash and escrowed funds in our Consolidated Balance Sheet. For bonds issued in conjunction with development, the full amount of the bonds at the beginning of construction must remain in escrow until costs are incurred.

Nonrecourse Debt

Our primary capital strategy seeks to isolate the operating and financial risk at the property level to maximize returns and reduce risk on and of our equity capital. As such, substantially all of our operating and development properties are separately encumbered with nonrecourse mortgage debt which in some limited circumstances is supplemented by nonrecourse notes payable (collectively “nonrecourse debt”).

We use taxable and tax-exempt nonrecourse debt for our real estate projects. 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. For those real estate projects financed with taxable debt, we generally seek long-term, fixed-rate financing for those operating projects whose loans mature or are projected to open and achieve stabilized operations. The availability of nonrecourse mortgage capital is improving, especially in strong markets, but is still not at the levels before the economic downturn. For those assets that cannot be refinanced at attractive terms, we attempt to extend the maturities with existing lenders.

We are actively working to refinance and/or extend the maturities of the nonrecourse debt that are coming due in the next 24 months. During the nine months ended October 31, 2011, we completed the following financings:

Purpose of Financing	Full     Consolidation		Less Noncontrolling Interest		Plus   Unconsolidated   Investments at Pro-Rata		Pro-Rata       Consolidation
	(in thousands)
Refinancings	$	84,000	$	830	$	96,113	$	179,283
Construction and development projects (1)		345,896		68,664		–		277,232
Loan extensions/additional fundings		425,311		67,223		427,928		786,016
	$	855,207	$	136,717	$	524,041	$	1,242,531

(1) Represents the full amount available to be drawn on the loans.

39

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Debt (dollars in thousands)

As of October 31, 2011

	Period Ending January 31, 2012												Fiscal Year Ending January 31, 2013
	Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation			Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation
Fixed:
Fixed-rate debt	$	136,496		$	460		$	52,906		$	188,942		$	315,041		$	18,803		$	62,754		$	358,992
Weighted average rate		6.64	%		5.33	%		6.89	%		6.71	%		6.04	%		6.99	%		6.36	%		6.04	%
Variable:
Variable-rate debt		235,527			3,297			16,421			248,651			787,901			13,190			113,422			888,133
Weighted average rate		3.05	%		8.00	%		2.20	%		2.93	%		3.69	%		8.22	%		3.65	%		3.61	%
Tax-Exempt		262			26			3,316			3,552			239			24			–			215
Weighted average rate		1.51	%		1.51	%		1.43	%		1.44	%		1.64	%		1.63	%		–	%		1.64	%
Total variable-rate debt		235,789			3,323			19,737			252,203			788,140			13,214			113,422			888,348
Total Nonrecourse Debt	$	372,285		$	3,783		$	72,643		$	441,145		$	1,103,181		$	32,017		$	176,176		$	1,247,340
Weighted Average Rate		4.36	%		7.63	%		5.58	%		4.54	%		4.36	%		7.49	%		4.62	%		4.31	%
	Fiscal Year Ending January 31, 2014												Fiscal Year Ending January 31, 2015
	Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation			Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation
Fixed:
Fixed-rate debt	$	598,811		$	73,799		$	141,205		$	666,217		$	288,726		$	34,041		$	241,292		$	495,977
Weighted average rate		6.44	%		9.89	%		6.34	%		6.04	%		6.07	%		5.94	%		5.52	%		5.81	%
Variable:
Variable-rate debt		92,709			9,069			50,592			134,232			24,607			–			30,280			54,887
Weighted average rate		6.59	%		8.63	%		3.13	%		5.15	%		3.82	%		–	%		4.25	%		4.06	%
Tax-Exempt		91,055			26			53,040			144,069			272			27			–			245
Weighted average rate		2.63	%		1.61	%		2.92	%		2.73	%		1.64	%		1.65	%		–	%		1.64	%
Total variable-rate debt		183,764			9,095			103,632			278,301			24,879			27			30,280			55,132
Total Nonrecourse Debt	$	782,575		$	82,894		$	244,837		$	944,518		$	313,605		$	34,068		$	271,572		$	551,109
Weighted Average Rate		6.01	%		9.75	%		4.93	%		5.41	%		5.89	%		5.93	%		5.38	%		5.63	%

40

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

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

As of October 31, 2011

	Fiscal Year Ending January 31, 2016												Thereafter
	Full     Consolidation			Less   Noncontrolling   Interest			Plus     Unconsolidated     Investments at     Pro-Rata			Pro-Rata     Consolidation			Full     Consolidation			Less   Noncontrolling   Interest			Plus     Unconsolidated     Investments at     Pro-Rata			Pro-Rata     Consolidation
Fixed:
Fixed-rate debt	$	343,639		$	29,188		$	121,193		$	435,644		$	1,604,861		$	82,667		$	826,461		$	2,348,655
Weighted average rate		5.59	%		5.84	%		5.31	%		5.49	%		5.46	%		5.42	%		5.78	%		5.58	%
Variable:
Variable-rate debt		–			–			21,671			21,671			640,400			2,785			295,283			932,898
Weighted average rate		–	%		–	%		1.61	%		1.61	%		7.19	%		3.25	%		3.01	%		5.87	%
Tax-Exempt		290			29			–			261			332,536			5,302			269,217			596,451
Weighted average rate		1.64	%		1.64	%		–	%		1.64	%		1.07	%		1.05	%		1.93	%		1.46	%
Total variable-rate debt		290			29			21,671			21,932			972,936			8,087			564,500			1,529,349
Total Nonrecourse Debt	$	343,929		$	29,217		$	142,864		$	457,576		$	2,577,797		$	90,754		$	1,390,961		$	3,878,004
Weighted Average Rate		5.58	%		5.83	%		4.75	%		5.31	%		5.32	%		5.10	%		4.44	%		5.01	%
	Total
	Full     Consolidation			Less   Noncontrolling   Interest			Plus     Unconsolidated     Investments at     Pro-Rata			Pro-Rata     Consolidation
Fixed:
Fixed-rate debt	$	3,287,574		$	238,958		$	1,445,811		$	4,494,427
Weighted average rate		5.81	%		7.05	%		5.82	%		5.75	%
Variable:
Variable-rate debt		1,781,144			28,341			527,669			2,280,472
Weighted average rate		5.01	%		7.84	%		3.15	%		4.55	%
Tax-Exempt		424,654			5,434			325,573			744,793
Weighted average rate		1.40	%		1.06	%		2.09	%		1.70	%
Total variable-rate debt		2,205,798			33,775			853,242			3,025,265
Total Nonrecourse Debt	$	5,493,372		$	272,733		$	2,299,053		$	7,519,692
Weighted Average Rate		5.21	%		7.01	%		4.67	%		4.98	%

41

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Investments in Unconsolidated Entities

Investments in unconsolidated entities include investments in and advances to unconsolidated entities and cash distributions and losses in excess of investments in unconsolidated entities that the Company does not control and/or is not deemed to be the primary beneficiary, which are accounted for under the equity method of accounting.

The following is a reconciliation of members’ and partners’ equity to the Company’s carrying value:

	October 31, 2011		January 31, 2011
	(in thousands)
Members’ and partners’ equity, as below	$	997,264	$	587,164
Equity of other members and partners		832,134		616,640
Company’s investment in partnerships		165,130		(29,476)
Basis differences		113,681		76,634
Advances to and on behalf of affiliates		99,492		93,859
Total Investments in Unconsolidated Entities	$	378,303	$	141,017
Assets - Investments in and advances to unconsolidated entities	$	663,474	$	431,509
Liabilities - Cash distributions and losses in excess of investments in unconsolidated entities		(285,171)		(290,492)
Total Investments in Unconsolidated Entities	$	378,303	$	141,017

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

	Combined (100%)				Pro-Rata Share
	(GAAP)				(Non-GAAP)
	October 31, 2011		January 31, 2011		October 31, 2011		January 31, 2011
	(in thousands)
Balance Sheet:
Real Estate
Completed rental properties	$	7,155,582	$	5,514,041	$	2,759,701	$	1,923,813
Projects under construction and development		351,217		174,106		166,141		79,603
Land held for development or sale		226,477		272,930		92,957		115,607
Total Real Estate		7,733,276		5,961,077		3,018,799		2,119,023
Less accumulated depreciation		(1,224,318)		(944,968)		(544,304)		(424,331)
Real Estate, net		6,508,958		5,016,109		2,474,495		1,694,692
Cash and equivalents		144,173		109,246		62,581		48,583
Restricted cash - military housing bond funds		325,605		384,584		6,151		5,161
Other restricted cash and escrowed funds		307,370		206,778		113,792		73,729
Other assets		753,977		536,246		127,742		131,486
Operating property assets held for sale (1)		–		67,190		–		–
Total Assets	$	8,040,083	$	6,320,153	$	2,784,761	$	1,953,651
Mortgage debt and notes payable, nonrecourse	$	6,533,871	$	5,301,900	$	2,299,053	$	1,713,367
Other liabilities		508,948		369,871		192,515		124,908
Liabilities of operating property held for sale (1)		–		61,218		–		–
Members’ and partners’ equity		997,264		587,164		293,193		115,376
Total Liabilities and Members’ and Partners’ Equity	$	8,040,083	$	6,320,153	$	2,784,761	$	1,953,651

(1) Represents assets and liabilities of Metropolitan Lofts, an unconsolidated apartment community in Los Angeles, California, which was disposed on February 1, 2011.

42

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Investments in Unconsolidated Entities (continued)

	Combined (100%) (GAAP)						Pro-Rata Share (Non-GAAP)
Three Months Ended October 31,	2011			2010			2011			2010
	(in thousands)
Operations:
Revenues	$	260,808		$	218,500		$	101,851		$	83,098
Equity in earnings (loss) of unconsolidated entities on a pro-rata basis		–			–			(11,087	)		239
Operating expenses		(130,799	)		(112,983	)		(46,626	)		(36,568	)
Interest expense including early extinguishment of debt		(80,043	)		(67,945	)		(24,336	)		(19,863	)
Depreciation and amortization		(48,693	)		(41,806	)		(18,829	)		(13,871	)
Interest and other income		3,541			4,190			262			525
Noncontrolling interest		–			–			38			14
Net earnings (loss) (pre-tax)	$	4,814		$	(44	)	$	1,273		$	13,574
Discontinued operations:
Operating loss from rental properties		–			1,390			–			–
Gain on disposition of rental properties (2)		–			10,998			–			8,658
Discontinued operations subtotal		–			12,388			–			8,658
Net earnings (loss) (pre-tax)	$	4,814		$	12,344		$	1,273		$	22,232
Impairment of investment in unconsolidated entities (1)		(41,289	)		(21,564	)		(41,289	)		(21,564	)
Net earnings (loss) (pre-tax) from unconsolidated entities	$	(36,475	)	$	(9,220	)	$	(40,016	)	$	668
	Combined (100%) (GAAP)						Pro-Rata Share (Non-GAAP)
Nine Months Ended October 31,	2011			2010			2011			2010
	(in thousands)
Operations:
Revenues	$	775,828		$	675,177		$	279,208		$	250,799
Equity in earnings (loss) of unconsolidated entities on a pro-rata basis		–			–			(14,789	)		(5,694	)
Operating expenses		(425,585	)		(378,785	)		(129,347	)		(130,011	)
Interest expense including early extinguishment of debt		(240,334	)		(197,938	)		(74,981	)		(58,981	)
Impairment of real estate (1)		–			(1,457	)		–			(743	)
Depreciation and amortization		(144,344	)		(122,383	)		(49,881	)		(39,535	)
Interest and other income		11,068			11,515			647			1,219
Noncontrolling interest		–			–			228			(6,332	)
Earnings (loss) from continuing operations	$	(23,367	)	$	(13,871	)	$	11,085		$	10,722
Discontinued operations:
Operating loss from rental properties		–			1,614			–			–
Gain on disposition of rental properties (2)		–			10,998			–			8,658
Discontinued operations subtotal		–			12,612			–			8,658
Net earnings (loss) (pre-tax)		(23,367	)		(1,259	)		11,085			19,380
Impairment of investment in unconsolidated entities (1)		(41,289	)		(36,002	)		(41,289	)		(36,002	)
Gain (loss) on disposition of equity method investments (2)		12,567			(830	)		12,567			(830	)
Net earnings (loss) (pre-tax) from unconsolidated entities	$	(52,089	)	$	(38,091	)	$	(17,637	)	$	(17,452	)

43

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Investments in Unconsolidated Entities (continued)

(1) The following tables show the detail of impairment of unconsolidated entities:

		Combined (100%) (GAAP)				Pro-Rata Share (Non-GAAP)
		Three Months Ended October 31,
		2011		2010		2011		2010
		(in thousands)
Impairment of investments in unconsolidated entities:
Village at Gulfstream Park (Specialty Retail Center)	Hallandale Beach, Florida	$	34,579	$	–	$	34,579	$	–
Commercial land and development rights	Cleveland, Ohio		4,610		–		4,610		–
Mixed-Use Land Development:
Sterling Lakes	Pepper Pike, Ohio		1,700		–		1,700		–
Central Station:
Four Museum Park Properties	Chicago, Illinois		–		18,311		–		18,311
Mesa del Sol - Aperture Center (Office Building)	Albuquerque, New Mexico		–		2,733		–		2,733
Other			400		520		400		520
Total impairment of investments in unconsolidated entities		$	41,289	$	21,564	$	41,289	$	21,564
		Combined (100%) (GAAP)				Pro-Rata Share (Non-GAAP)
		Nine Months Ended October 31,
		2011		2010		2011		2010
		(in thousands)
Impairment of real estate:
Old Stone Crossing at Caldwell Creek (Mixed-Use Land Development)	Charlotte, North Carolina	$	–	$	1,457	$	–	$	743
		$	–	$	1,457	$	–	$	743
Impairment of investments in unconsolidated entities:
Specialty Retail Center:
Village at Gulfstream Park	Hallandale Beach, Florida	$	34,579	$	–	$	34,579	$	–
Metreon	San Francisco, California		–		4,595		–		4,595
Commercial land and development rights	Cleveland, Ohio		4,610		–		4,610		–
Mixed-Use Land Development:
Sterling Lakes	Pepper Pike, Ohio		1,700		–		1,700		–
Central Station:
Four Museum Park Properties	Chicago, Illinois		–		18,311		–		18,311
Mercy Campus	Chicago, Illinois		–		1,817		–		1,817
Office Buildings:
818 Mission Street	San Francisco, California		–		4,018		–		4,018
Bulletin Building	San Francisco, California		–		3,543		–		3,543
Mesa del Sol - Aperture Center	Albuquerque, New Mexico		–		2,733		–		2,733
Other			400		985		400		985
Total impairment of investments in unconsolidated entities		$	41,289	$	36,002	$	41,289	$	36,002
Total impairment of unconsolidated entities		$	41,289	$	37,459	$	41,289	$	36,745

44

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Investments in Unconsolidated Entities (continued)

(2) Upon disposition, investments accounted for on the equity method are not classified as discontinued operations; therefore, gains or losses on the disposition of these properties are reported in continuing operations. The following table shows the detail of gains and losses on disposition of unconsolidated entities:

		Combined (100%) (GAAP)				Pro-Rata Share (Non-GAAP)
		Three Months Ended October 31,
		2011		2010		2011		2010
		(in thousands)
Gain (loss) on disposition of rental properties:
Woodbridge Crossing (Specialty Retail Centers)	Woodbridge, New Jersey	$	–	$	6,443	$	–	$	6,443
Pebble Creek (Apartment Communities)	Twinsburg, Ohio		–		4,555		–		2,215
Total loss on disposition of equity method investments		$	–	$	10,998	$	–	$	8,658
		Combined (100%) (GAAP)				Pro-Rata Share (Non-GAAP)
		Nine Months Ended October 31,
		2011		2010		2011		2010
		(in thousands)
Gain (loss) on disposition of rental properties:
Woodbridge Crossing (Specialty Retail Centers)	Woodbridge, New Jersey	$	–	$	6,443	$	–	$	6,443
Pebble Creek (Apartment Communities)	Twinsburg, Ohio		–		4,555		–		2,215
Total loss on disposition of equity method investments		$	–	$	10,998	$	–	$	8,658
Gain (loss) on disposition of equity method investments:
Apartment Communities:
Metropolitan Lofts	Los Angeles, California		9,964		–		9,964		–
Twin Lake Towers	Denver, Colorado		2,603		–		2,603		–
Specialty Retail Centers:
Coachella Plaza	Coachella, California		–		104		–		104
Southgate Mall	Yuma, Arizona		–		64		–		64
El Centro Mall	El Centro, California		–		48		–		48
Metreon	San Francisco, California		–		(1,046)		–		(1,046)
Gain (loss) on disposition of equity method investments		$	12,567	$	(830)	$	12,567	$	(830)

45

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Three Months Ended October 31, 2011 (in thousands)

	Commercial Group 2011														Residential Group 2011
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	184,575		$	7,276		$	58,090		$	–	$	235,389		$	68,503		$	5,677	$	39,422		$	–	$	102,248
Exclude straight-line rent adjustment		(4,134	)		–			–			–		(4,134	)		(230	)		–		–			–		(230)
Adjusted revenues		180,441			7,276			58,090			–		231,255			68,273			5,677		39,422			–		102,018
Add interest and other income		4,055			159			46			–		3,942			4,488			150		227			–		4,565
Add equity in earnings (loss) of unconsolidated entities, including impairment		(32,295	)		–			32,295			–		–			2,583			38		(2,462	)		–		83
Exclude impairment of unconsolidated real estate		39,189			–			(39,189	)		–		–			–			–		–			–		–
Exclude depreciation and amortization of unconsolidated entities		10,440			–			(10,440	)		–		–			8,355			–		(8,355	)		–		–
Adjusted total income		201,830			7,435			40,802			–		235,197			83,699			5,865		28,832			–		106,666
Operating expenses		100,498			4,433			23,644			–		119,709			46,856			4,919		19,824			–		61,761
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		351			–			–			–		351			224			–		–			–		224
Exclude straight-line rent adjustment		(1,096	)		–			–			–		(1,096	)		–			–		–			–		–
Exclude preference payment		(585	)		–			–			–		(585	)		–			–		–			–		–
Adjusted operating expenses		99,168			4,433			23,644			–		118,379			47,080			4,919		19,824			–		61,985
Net operating income		102,662			3,002			17,158			–		116,818			36,619			946		9,008			–		44,681
Interest expense		40,868			1,295			17,107			–		56,680			10,015			298		9,008			–		18,725
(Gain) loss on early extinguishment of debt		(15,101	)		(1,511	)		51			–		(13,539	)		–			–		–			–		–
Noncontrolling interest in earnings before depreciation and amortization		3,218			3,218			–			–		–			648			648		–			–		–
Pre-Tax EBDT		73,677			–			–			–		73,677			25,956			–		–			–		25,956
Income tax expense (benefit)		–			–			–			–		–			–			–		–			–		–
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	73,677		$	–		$	–		$	–	$	73,677		$	25,956		$	–	$	–		$	–	$	25,956
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	73,677		$	–		$	–		$	–	$	73,677		$	25,956		$	–	$	–		$	–	$	25,956
Depreciation and amortization - Real Estate Groups		(50,402	)		–			–			–		(50,402	)		(20,861	)		–		–			–		(20,861)
Amortization of mortgage procurement costs - Real Estate Groups		(2,999	)		–			–			–		(2,999	)		(995	)		–		–			–		(995)
Straight-line rent adjustment		3,038			–			–			–		3,038			230			–		–			–		230
Preference payment		(585	)		–			–			–		(585	)		–			–		–			–		–
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		5,849			–			–			–		5,849			–			–		–			–		–
Impairment of consolidated and unconsolidated real estate		(10,257	)		–			(39,189	)		–		(49,446	)		–			–		–			–		–
Impairment of unconsolidated real estate		(39,189	)		–			39,189			–		–			–			–		–			–		–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(20,868	)	$	–		$	–		$	–	$	(20,868	)	$	4,330		$	–	$	–		$	–	$	4,330

46

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Three Months Ended October 31, 2011 (in thousands) (continued)

Land Development Group 2011

The Nets 2011

Full Consolidation (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Full Consolidation (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Revenues from real estate operations

$

8,120

$

612

$

4,339

$

–

$

11,847

$

–

$

–

$

–

$

–

$

–

Exclude straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Adjusted revenues

8,120

612

4,339

–

11,847

–

–

–

–

–

Add interest and other income

2,631

209

(11

)

–

2,411

–

–

–

–

–

Add equity in earnings (loss) of unconsolidated entities, including impairment

979

–

(866

)

–

113

(11,283

)

–

–

–

(11,283)

Exclude impairment of unconsolidated real estate

2,100

–

(2,100

)

–

–

–

–

–

–

–

Exclude depreciation and amortization of unconsolidated entities

34

–

(34

)

–

–

–

–

–

–

–

Adjusted total income

13,864

821

1,328

–

14,371

(11,283

)

–

–

–

(11,283)

Operating expenses

9,668

501

3,158

–

12,325

–

–

–

–

–

Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs

33

–

–

–

33

–

–

–

–

–

Exclude straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Exclude preference payment

–

–

–

–

–

–

–

–

–

–

Adjusted operating expenses

9,701

501

3,158

–

12,358

–

–

–

–

–

Net operating income

4,163

320

(1,830

)

–

2,013

(11,283

)

–

–

–

(11,283)

Interest expense

865

153

96

–

808

–

–

–

–

–

(Gain) loss on early extinguishment of debt

–

–

(1,926

)

–

(1,926

)

–

–

–

–

–

Noncontrolling interest in earnings before depreciation and amortization

167

167

–

–

–

–

–

–

–

–

Pre-Tax EBDT

3,131

–

–

–

3,131

(11,283

)

–

–

–

(11,283)

Income tax expense (benefit)

–

–

–

–

–

–

–

–

–

–

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

3,131

$

–

$

–

$

–

$

3,131

$

(11,283

)

$

–

$

–

$

–

$

(11,283)

Reconciliation to net earnings:

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

3,131

$

–

$

–

$

–

$

3,131

$

(11,283

)

$

–

$

–

$

–

$

(11,283)

Depreciation and amortization - Real Estate Groups

(41

)

–

–

–

(41

)

–

–

–

–

–

Amortization of mortgage procurement costs - Real Estate Groups

(58

)

–

–

–

(58

)

–

–

–

–

–

Straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Preference payment

–

–

–

–

–

–

–

–

–

–

Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate

(450

)

–

(2,100

)

–

(2,550

)

–

–

–

–

–

Impairment of unconsolidated real estate

(2,100

)

–

2,100

–

–

–

–

–

–

–

Net earnings (loss) attributable to Forest City Enterprises, Inc.

$

482

$

–

$

–

$

–

$

482

$

(11,283

)

$

–

$

–

$

–

$

(11,283)

47

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Three Months Ended October 31, 2011 (in thousands) (continued)

	Corporate Activities 2011												Total 2011
	Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	–		$	–	$	–	$	–	$	–		$	261,198		$	13,565		$	101,851		$	–	$	349,484
Exclude straight-line rent adjustment		–			–		–		–		–			(4,364	)		–			–			–		(4,364)
Adjusted revenues		–			–		–		–		–			256,834			13,565			101,851			–		345,120
Add interest and other income		120			–		–		–		120			11,294			518			262			–		11,038
Add equity in earnings (loss) of unconsolidated entities, including impairment		–			–		–		–		–			(40,016	)		38			28,967			–		(11,087)
Exclude impairment of unconsolidated real estate		–			–		–		–		–			41,289			–			(41,289	)		–		–
Exclude depreciation and amortization of unconsolidated entities		–			–		–		–		–			18,829			–			(18,829	)		–		–
Adjusted total income		120			–		–		–		120			288,230			14,121			70,962			–		345,071
Operating expenses		12,133			–		–		–		12,133			169,155			9,853			46,626			–		205,928
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		404			–		–		–		404			1,012			–			–			–		1,012
Exclude straight-line rent adjustment		–			–		–		–		–			(1,096	)		–			–			–		(1,096)
Exclude preference payment		–			–		–		–		–			(585	)		–			–			–		(585)
Adjusted operating expenses		12,537			–		–		–		12,537			168,486			9,853			46,626			–		205,259
Net operating income		(12,417	)		–		–		–		(12,417	)		119,744			4,268			24,336			–		139,812
Interest expense		15,487			–		–		–		15,487			67,235			1,746			26,211			–		91,700
(Gain) loss on early extinguishment of debt		–			–		–		–		–			(15,101	)		(1,511	)		(1,875	)		–		(15,465)
Noncontrolling interest in earnings before depreciation and amortization		–			–		–		–		–			4,033			4,033			–			–		–
Pre-Tax EBDT		(27,904	)		–		–		–		(27,904	)		63,577			–			–			–		63,577
Income tax expense (benefit)		(13,900	)		–		–		–		(13,900	)		(13,900	)		–			–			–		(13,900)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(14,004	)	$	–	$	–	$	–	$	(14,004	)	$	77,477		$	–		$	–		$	–	$	77,477
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(14,004	)	$	–	$	–	$	–	$	(14,004	)	$	77,477		$	–		$	–		$	–	$	77,477
Depreciation and amortization - Real Estate Groups		–			–		–		–		–			(71,304	)		–			–			–		(71,304)
Amortization of mortgage procurement costs - Real Estate Groups		–			–		–		–		–			(4,052	)		–			–			–		(4,052)
Straight-line rent adjustment		–			–		–		–		–			3,268			–			–			–		3,268
Preference payment		–			–		–		–		–			(585	)		–			–			–		(585)
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		–			–		–		–		–			5,849			–			–			–		5,849
Impairment of consolidated and unconsolidated real estate		–			–		–		–		–			(10,707	)		–			(41,289	)		–		(51,996)
Impairment of unconsolidated real estate		–			–		–		–		–			(41,289	)		–			41,289			–		–
Tax (expense) benefit:
Deferred taxes		3,328			–		–		–		3,328			3,328			–			–			–		3,328
Gain (loss) on disposition of rental properties and partial interest in rental properties		(10	)		–		–		–		(10	)		(10	)		–			–			–		(10)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(10,686	)	$	–	$	–	$	–	$	(10,686	)	$	(38,025	)	$	–		$	–		$	–	$	(38,025)
Preferred dividends		(3,850	)		–		–		–		(3,850	)		(3,850	)		–			–			–		(3,850)
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(14,536	)	$	–	$	–	$	–	$	(14,536	)	$	(41,875	)	$	–		$	–		$	–	$	(41,875)

48

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Nine Months Ended October 31, 2011 (in thousands)

	Commercial Group 2011															Residential Group 2011
	Full   Consolidation   (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)			Full   Consolidation   (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	619,223		$	26,792		$	158,589		$	6,593		$	757,613		$	179,532		$	9,979	$	111,763		$	–	$	281,316
Exclude straight-line rent adjustment		(5,534	)		–			–			(571	)		(6,105	)		(292	)		–		–			–		(292	)
Adjusted revenues		613,689			26,792			158,589			6,022			751,508			179,240			9,979		111,763			–		281,024
Add interest and other income		18,510			(179	)		115			–			18,804			15,362			441		599			–		15,520
Add equity in earnings (loss) of unconsolidated entities, including impairment		(25,528	)		–			25,528			–			–			21,229			228		(20,715	)		–		286
Exclude gain on disposition of unconsolidated entities		–			–			–			–			–			(12,567	)		–		12,567			–		–
Exclude impairment of unconsolidated real estate		39,189			–			(39,189	)		–			–			–			–		–			–		–
Exclude depreciation and amortization of unconsolidated entities		29,503			–			(29,503	)		–			–			20,185			–		(20,185	)		–		–
Adjusted total income		675,363			26,613			115,540			6,022			770,312			223,449			10,648		84,029			–		296,830
Operating expenses		302,798			15,914			67,992			2,944			357,820			123,392			7,722		54,968			–		170,638
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		740			–			–			–			740			467			–		–			–		467
Exclude straight-line rent adjustment		(3,465	)		–			–			–			(3,465	)		63			–		–			–		63
Exclude preference payment		(1,756	)		–			–			–			(1,756	)		–			–		–			–		–
Adjusted operating expenses		298,317			15,914			67,992			2,944			353,339			123,922			7,722		54,968			–		171,168
Net operating income		377,046			10,699			47,548			3,078			416,973			99,527			2,926		29,061			–		125,662
Interest expense		128,285			7,398			47,478			712			169,077			25,269			1,381		26,725			–		50,613
(Gain) loss on early extinguishment of debt		(20,134	)		(1,507	)		70			–			(18,557	)		–			–		2,336			–		2,336
Noncontrolling interest in earnings before depreciation and amortization		4,808			4,808			–			–			–			1,545			1,545		–			–		–
Add: Pre-Tax EBDT from discontinued operations		2,366			–			–			(2,366	)		–			–			–		–			–		–
Pre-Tax EBDT		266,453			–			–			–			266,453			72,713			–		–			–		72,713
Income tax expense (benefit)		–			–			–			–			–			–			–		–			–		–
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	266,453		$	–		$	–		$	–		$	266,453		$	72,713		$	–	$	–		$	–	$	72,713
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	266,453		$	–		$	–		$	–		$	266,453		$	72,713		$	–	$	–		$	–	$	72,713
Depreciation and amortization - Real Estate Groups		(149,476	)		–			–			(1,030	)		(150,506	)		(58,362	)		–		–			–		(58,362	)
Amortization of mortgage procurement costs - Real Estate Groups		(7,841	)		–			–			(333	)		(8,174	)		(2,721	)		–		–			–		(2,721	)
Straight-line rent adjustment		2,069			–			–			571			2,640			355			–		–			–		355
Preference payment		(1,756	)		–			–			–			(1,756	)		–			–		–			–		–
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		15,410			–			–			39,937			55,347			–			–		12,567			–		12,567
Gain on disposition of unconsolidated entities		–			–			–			–			–			12,567			–		(12,567	)		–		–
Impairment of consolidated and unconsolidated real estate		(13,692	)		–			(39,189	)		–			(52,881	)		(235	)		–		–			–		(235	)
Impairment of unconsolidated real estate		(39,189	)		–			39,189			–			–			–			–		–			–		–
Discontinued operations:
Depreciation and amortization - Real Estate Groups		(1,030	)		–			–			1,030			–			–			–		–			–		–
Amortization of mortgage procurement costs - Real Estate Groups		(333	)		–			–			333			–			–			–		–			–		–
Straight-line rent adjustment		571			–			–			(571	)		–			–			–		–			–		–
Gain on disposition of rental properties		39,937			–			–			(39,937	)		–			–			–		–			–		–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	111,123		$	–		$	–		$	–		$	111,123		$	24,317		$	–	$	–		$	–	$	24,317

49

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Nine Months Ended October 31, 2011 (in thousands) (continued)

Land Development Group 2011

The Nets 2011

Full   Consolidation   (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Full   Consolidation   (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Revenues from real estate operations

$

24,072

$

1,662

$

8,856

$

–

$

31,266

$

–

$

–

$

–

$

–

$

–

Exclude straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Adjusted revenues

24,072

1,662

8,856

–

31,266

–

–

–

–

–

Add interest and other income

8,025

650

(67

)

–

7,308

–

–

–

–

–

Add equity in earnings (loss) of unconsolidated entities, including impairment

1,631

–

(1,737

)

–

(106

)

(14,969

)

–

–

–

(14,969

)

Exclude gain on disposition of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Exclude impairment of unconsolidated real estate

2,100

–

(2,100

)

–

–

–

–

–

–

–

Exclude depreciation and amortization of unconsolidated entities

193

–

(193

)

–

–

–

–

–

–

–

Adjusted total income

36,021

2,312

4,759

–

38,468

(14,969

)

–

–

–

(14,969

)

Operating expenses

29,086

1,558

6,387

–

33,915

–

–

–

–

–

Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs

80

–

–

–

80

–

–

–

–

–

Exclude straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Exclude preference payment

–

–

–

–

–

–

–

–

–

–

Adjusted operating expenses

29,166

1,558

6,387

–

33,995

–

–

–

–

–

Net operating income

6,855

754

(1,628

)

–

4,473

(14,969

)

–

–

–

(14,969

)

Interest expense

2,465

387

298

–

2,376

–

–

–

–

–

(Gain) loss on early extinguishment of debt

–

–

(1,926

)

–

(1,926

)

–

–

–

–

–

Noncontrolling interest in earnings before depreciation and amortization

367

367

–

–

–

–

–

–

–

–

Add: Pre-Tax EBDT from discontinued operations

–

–

–

–

–

–

–

–

–

–

Pre-Tax EBDT

4,023

–

–

–

4,023

(14,969

)

–

–

–

(14,969

)

Income tax expense (benefit)

–

–

–

–

–

–

–

–

–

–

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

4,023

$

–

$

–

$

–

$

4,023

$

(14,969

)

$

–

$

–

$

–

$

(14,969

)

Reconciliation to net earnings:

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

4,023

$

–

$

–

$

–

$

4,023

$

(14,969

)

$

–

$

–

$

–

$

(14,969

)

Depreciation and amortization - Real Estate Groups

(194

)

–

–

–

(194

)

–

–

–

–

–

Amortization of mortgage procurement costs - Real Estate Groups

(204

)

–

–

–

(204

)

–

–

–

–

–

Straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Preference payment

–

–

–

–

–

–

–

–

–

–

Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest

–

–

–

–

–

–

–

–

–

–

Gain on disposition of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate

(1,850

)

–

(2,100

)

–

(3,950

)

–

–

–

–

–

Impairment of unconsolidated real estate

(2,100

)

–

2,100

–

–

–

–

–

–

–

Discontinued operations:

Depreciation and amortization - Real Estate Groups

–

–

–

–

–

–

–

–

–

–

Amortization of mortgage procurement costs - Real Estate Groups

–

–

–

–

–

–

–

–

–

–

Straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Gain on disposition of rental properties

–

–

–

–

–

–

–

–

–

–

Net earnings (loss) attributable to Forest City Enterprises, Inc.

$

(325

)

$

–

$

–

$

–

$

(325

)

$

(14,969

)

$

–

$

–

$

–

$

(14,969

)

50

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Nine Months Ended October 31, 2011 (in thousands) (continued)

	Corporate Activities 2011												Total 2011
	Full   Consolidation   (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full   Consolidation   (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	–		$	–	$	–	$	–	$	–		$	822,827		$	38,433		$	279,208		$	6,593		$	1,070,195
Exclude straight-line rent adjustment		–			–		–		–		–			(5,826	)		–			–			(571	)		(6,397	)
Adjusted revenues		–			–		–		–		–			817,001			38,433			279,208			6,022			1,063,798
Add interest and other income		219			–		–		–		219			42,116			912			647			–			41,851
Add equity in earnings (loss) of unconsolidated entities, including impairment		–			–		–		–		–			(17,637	)		228			3,076			–			(14,789	)
Exclude gain on disposition of unconsolidated entities		–			–		–		–		–			(12,567	)		–			12,567			–			–
Exclude impairment of unconsolidated real estate		–			–		–		–		–			41,289			–			(41,289	)		–			–
Exclude depreciation and amortization of unconsolidated entities		–			–		–		–		–			49,881			–			(49,881	)		–			–
Adjusted total income		219			–		–		–		219			920,083			39,573			204,328			6,022			1,090,860
Operating expenses		36,558			–		–		–		36,558			491,834			25,194			129,347			2,944			598,931
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		1,113			–		–		–		1,113			2,400			–			–			–			2,400
Exclude straight-line rent adjustment		–			–		–		–		–			(3,402	)		–			–			–			(3,402	)
Exclude preference payment		–			–		–		–		–			(1,756	)		–			–			–			(1,756	)
Adjusted operating expenses		37,671			–		–		–		37,671			489,076			25,194			129,347			2,944			596,173
Net operating income		(37,452	)		–		–		–		(37,452	)		431,007			14,379			74,981			3,078			494,687
Interest expense		42,195			–		–		–		42,195			198,214			9,166			74,501			712			264,261
(Gain) loss on early extinguishment of debt		10,800			–		–		–		10,800			(9,334	)		(1,507	)		480			–			(7,347	)
Noncontrolling interest in earnings before depreciation and amortization		–			–		–		–		–			6,720			6,720			–			–			–
Add: Pre-Tax EBDT from discontinued operations		–			–		–		–		–			2,366			–			–			(2,366	)		–
Pre-Tax EBDT		(90,447	)		–		–		–		(90,447	)		237,773			–			–			–			237,773
Income tax expense (benefit)		(37,786	)		–		–		–		(37,786	)		(37,786	)		–			–			–			(37,786	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(52,661	)	$	–	$	–	$	–	$	(52,661	)	$	275,559		$	–		$	–		$	–		$	275,559
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(52,661	)	$	–	$	–	$	–	$	(52,661	)	$	275,559		$	–		$	–		$	–		$	275,559
Depreciation and amortization - Real Estate Groups		–			–		–		–		–			(208,032	)		–			–			(1,030	)		(209,062	)
Amortization of mortgage procurement costs - Real Estate Groups		–			–		–		–		–			(10,766	)		–			–			(333	)		(11,099	)
Straight-line rent adjustment		–			–		–		–		–			2,424			–			–			571			2,995
Preference payment		–			–		–		–		–			(1,756	)		–			–			–			(1,756	)
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		–			–		–		–		–			15,410			–			12,567			39,937			67,914
Gain on disposition of unconsolidated entities		–			–		–		–		–			12,567			–			(12,567	)		–			–
Impairment of consolidated and unconsolidated real estate		–			–		–		–		–			(15,777	)		–			(41,289	)		–			(57,066	)
Impairment of unconsolidated real estate		–			–		–		–		–			(41,289	)		–			41,289			–			–
Discontinued operations:
Depreciation and amortization - Real Estate Groups		–			–		–		–		–			(1,030	)		–			–			1,030			–
Amortization of mortgage procurement costs - Real Estate Groups		–			–		–		–		–			(333	)		–			–			333			–
Straight-line rent adjustment		–			–		–		–		–			571			–			–			(571	)		–
Gain on disposition of rental properties		–			–		–		–		–			39,937			–			–			(39,937	)		–
Tax (expense) benefit:
Deferred taxes		(7,838	)		–		–		–		(7,838	)		(7,838	)		–			–			–			(7,838	)
Gain (loss) on disposition of rental properties and partial interest in rental properties		(41,971	)		–		–		–		(41,971	)		(41,971	)		–			–			–			(41,971	)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(102,470	)	$	–	$	–	$	–	$	(102,470	)	$	17,676		$	–		$	–		$	–		$	17,676
Preferred dividends		(11,550	)		–		–		–		(11,550	)		(11,550	)		–			–			–			(11,550	)
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(114,020	)	$	–	$	–	$	–	$	(114,020	)	$	6,126		$	–		$	–		$	–		$	6,126

51

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Three Months Ended October 31, 2010 (in thousands) (continued)

	Commercial Group 2010														Residential Group 2010
	Full   Consolidation   (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)			Full   Consolidation   (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	227,252		$	11,912	$	42,053		$	12,055		$	269,448		$	52,706		$	923		$	39,020		$	–	$	90,803
Exclude straight-line rent adjustment		(3,637	)		–		–			(497	)		(4,134	)		39			–			–			–		39
Adjusted revenues		223,615			11,912		42,053			11,558			265,314			52,745			923			39,020			–		90,842
Add interest and other income		3,229			645		209			1			2,794			6,006			158			304			–		6,152
Add equity in earnings (loss) of unconsolidated entities, including impairment		9,984			–		(9,985	)		–			(1	)		9,870			14			(9,719	)		–		137
Exclude gain (loss) on disposition of unconsolidated entities		(6,443	)		–		6,443			–			–			(2,215	)		–			2,215			–		–
Exclude impairment of unconsolidated real estate		2,733			–		(2,733	)		–			–			–			–			–			–		–
Exclude depreciation and amortization of unconsolidated entities		8,094			–		(8,094	)		–			–			5,741			–			(5,741	)		–		–
Adjusted total income		241,212			12,557		27,893			11,559			268,107			72,147			1,095			26,079			–		97,131
Operating expenses		110,509			6,950		16,775			6,141			126,475			33,681			322			17,685			–		51,044
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		416			–		–			–			416			248			–			–			–		248
Exclude straight-line rent adjustment		(1,429	)		–		–			–			(1,429	)		2			–			–			–		2
Exclude preference payment		(585	)		–		–			–			(585	)		–			–			–			–		–
Adjusted operating expenses		108,911			6,950		16,775			6,141			124,877			33,931			322			17,685			–		51,294
Net operating income		132,301			5,607		11,118			5,418			143,230			38,216			773			8,394			–		45,837
Interest expense		56,191			4,263		11,118			2,151			65,197			3,295			192			8,369			–		11,472
(Gain) loss on early extinguishment of debt		–			–		–			–			–			(2,460	)		(247	)		25			–		(2,188	)
Noncontrolling interest in earnings before depreciation and amortization		1,344			1,344		–			–			–			828			828			–			–		–
Add: Pre-Tax EBDT from discontinued operations		3,267			–		–			(3,267	)		–			–			–			–			–		–
Pre-Tax EBDT		78,033			–		–			–			78,033			36,553			–			–			–		36,553
Income tax expense (benefit)		4,993			–		–			–			4,993			1,875			–			–			–		1,875
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	73,040		$	–	$	–		$	–		$	73,040		$	34,678		$	–		$	–		$	–	$	34,678
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	73,040		$	–	$	–		$	–		$	73,040		$	34,678		$	–		$	–		$	–	$	34,678
Depreciation and amortization - Real Estate Groups		(50,678	)		–		–			(1,943	)		(52,621	)		(20,251	)		–			–			–		(20,251	)
Amortization of mortgage procurement costs - Real Estate Groups		(2,982	)		–		–			(284	)		(3,266	)		(716	)		–			–			–		(716	)
Deferred taxes - Real Estate Groups		(3,305	)		–		–			(760	)		(4,065	)		(4,730	)		–			–			–		(4,730	)
Straight-line rent adjustment		2,208			–		–			497			2,705			(37	)		–			–			–		(37	)
Preference payment		(585	)		–		–			–			(585	)		–			–			–			–		–
Gain (loss) on disposition of rental properties and partial interests in rental properties, net of tax		(1,497	)		–		3,943			(758	)		1,688			352			–			1,356			–		1,708
Gain (loss) on disposition of unconsolidated entities, net of tax		3,943			–		(3,943	)		–			–			1,356			–			(1,356	)		–		–
Impairment of consolidated and unconsolidated real estate, net of tax		(2,213	)		–		(1,674	)		(20,931	)		(24,818	)		–			–			–			–		–
Impairment of unconsolidated real estate, net of tax		(1,674	)		–		1,674			–			–			–			–			–			–		–
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		(1,943	)		–		–			1,943			–			–			–			–			–		–
Amortization of mortgage procurement      costs - Real Estate Groups		(284	)		–		–			284			–			–			–			–			–		–
Deferred taxes - Real Estate Groups		(760	)		–		–			760			–			–			–			–			–		–
Straight-line rent adjustment		497			–		–			(497	)		–			–			–			–			–		–
Gain on disposition of rental properties		(758	)		–		–			758			–			–			–			–			–		–
Impairment of consolidated and unconsolidated real estate		(20,931	)		–		–			20,931			–			–			–			–			–		–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(7,922	)	$	–	$	–		$	–		$	(7,922	)	$	10,652		$	–		$	–		$	–	$	10,652

52

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Three Months Ended October 31, 2010 (in thousands) (continued)

Land Development Group 2010

The Nets 2010

Full   Consolidation   (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Full   Consolidation   (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Revenues from real estate operations

$

7,088

$

444

$

2,025

$

–

$

8,669

$

–

$

–

$

–

$

–

$

–

Exclude straight-line rent adjustment

1

–

–

–

1

–

–

–

–

–

Adjusted revenues

7,089

444

2,025

–

8,670

–

–

–

–

–

Add interest and other income

2,521

189

12

–

2,344

–

–

–

–

–

Add equity in earnings (loss) of unconsolidated entities, including impairment

(18,771

)

–

19,289

–

518

(415

)

–

–

–

(415

)

Exclude gain (loss) on disposition of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Exclude impairment of unconsolidated real estate

18,831

–

(18,831

)

–

–

–

–

–

–

–

Exclude depreciation and amortization of unconsolidated entities

36

–

(36

)

–

–

–

–

–

–

–

Adjusted total income

9,706

633

2,459

–

11,532

(415

)

–

–

–

(415

)

Operating expenses

9,003

491

2,108

–

10,620

–

–

–

–

–

Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs

40

–

–

–

40

–

–

–

–

–

Exclude straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Exclude preference payment

–

–

–

–

–

–

–

–

–

–

Adjusted operating expenses

9,043

491

2,108

–

10,660

–

–

–

–

–

Net operating income

663

142

351

–

872

(415

)

–

–

–

(415

)

Interest expense

845

71

351

–

1,125

–

–

–

–

–

(Gain) loss on early extinguishment of debt

–

–

–

–

–

–

–

–

–

–

Noncontrolling interest in earnings before depreciation and amortization

71

71

–

–

–

–

–

–

–

–

Add: Pre-Tax EBDT from discontinued operations

–

–

–

–

–

–

–

–

–

–

Pre-Tax EBDT

(253

)

–

–

–

(253

)

(415

)

–

–

–

(415

)

Income tax expense (benefit)

(694

)

–

–

–

(694

)

183

–

–

–

183

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

441

$

–

$

–

$

–

$

441

$

(598

)

$

–

$

–

$

–

$

(598

)

Reconciliation to net earnings:

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

441

$

–

$

–

$

–

$

441

$

(598

)

$

–

$

–

$

–

$

(598

)

Depreciation and amortization - Real Estate Groups

(48

)

–

–

–

(48

)

–

–

–

–

–

Amortization of mortgage procurement costs - Real Estate Groups

(47

)

–

–

–

(47

)

–

–

–

–

–

Deferred taxes - Real Estate Groups

(607

)

–

–

–

(607

)

–

–

–

–

–

Straight-line rent adjustment

(1

)

–

–

–

(1

)

–

–

–

–

–

Preference payment

–

–

–

–

–

–

–

–

–

–

Gain (loss) on disposition of rental properties and partial interests in rental properties, net of tax

–

–

–

–

–

–

–

–

–

–

Gain (loss) on disposition of unconsolidated entities, net of tax

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate, net of tax

(344

)

–

(11,527

)

–

(11,871

)

–

–

–

–

–

Impairment of unconsolidated real estate, net of tax

(11,527

)

–

11,527

–

–

–

–

–

–

–

Discontinued operations, net of tax:

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

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate

–

–

–

–

–

–

–

–

–

–

Net earnings (loss) attributable to Forest City Enterprises, Inc.

$

(12,133

)

$

–

$

–

$

–

$

(12,133

)

$

(598

)

$

–

$

–

$

–

$

(598

)

53

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Three Months Ended October 31, 2010 (in thousands) (continued)

	Corporate Activities 2010												Total 2010
	Full   Consolidation   (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full   Consolidation   (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	–		$	–	$	–	$	–	$	–		$	287,046		$	13,279		$	83,098		$	12,055		$	368,920
Exclude straight-line rent adjustment		–			–		–		–		–			(3,597	)		–			–			(497	)		(4,094	)
Adjusted revenues		–			–		–		–		–			283,449			13,279			83,098			11,558			364,826
Add interest and other income		163			–		–		–		163			11,919			992			525			1			11,453
Add equity in earnings (loss) of unconsolidated entities, including impairment		–			–		–		–		–			668			14			(415	)		–			239
Exclude gain (loss) on disposition of unconsolidated entities		–			–		–		–		–			(8,658	)		–			8,658			–			–
Exclude impairment of unconsolidated real estate		–			–		–		–		–			21,564			–			(21,564	)		–			–
Exclude depreciation and amortization of unconsolidated entities		–			–		–		–		–			13,871			–			(13,871	)		–			–
Adjusted total income		163			–		–		–		163			322,813			14,285			56,431			11,559			376,518
Operating expenses		8,889			–		–		–		8,889			162,082			7,763			36,568			6,141			197,028
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		480			–		–		–		480			1,184			–			–			–			1,184
Exclude straight-line rent adjustment		–			–		–		–		–			(1,427	)		–			–			–			(1,427	)
Exclude preference payment		–			–		–		–		–			(585	)		–			–			–			(585	)
Adjusted operating expenses		9,369			–		–		–		9,369			161,254			7,763			36,568			6,141			196,200
Net operating income		(9,206	)		–		–		–		(9,206	)		161,559			6,522			19,863			5,418			180,318
Interest expense		15,509			–		–		–		15,509			75,840			4,526			19,838			2,151			93,303
(Gain) loss on early extinguishment of debt		–			–		–		–		–			(2,460	)		(247	)		25			–			(2,188	)
Noncontrolling interest in earnings before depreciation and amortization		–			–		–		–		–			2,243			2,243			–			–			–
Add: Pre-Tax EBDT from discontinued operations		–			–		–		–		–			3,267			–			–			(3,267	)		–
Pre-Tax EBDT		(24,715	)		–		–		–		(24,715	)		89,203			–			–			–			89,203
Income tax expense (benefit)		(7,853	)		–		–		–		(7,853	)		(1,496	)		–			–			–			(1,496	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(16,862	)	$	–	$	–	$	–	$	(16,862	)	$	90,699		$	–		$	–		$	–		$	90,699
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(16,862	)	$	–	$	–	$	–	$	(16,862	)	$	90,699		$	–		$	–		$	–		$	90,699
Depreciation and amortization - Real Estate Groups		–			–		–		–		–			(70,977	)		–			–			(1,943	)		(72,920	)
Amortization of mortgage procurement costs - Real Estate Groups		–			–		–		–		–			(3,745	)		–			–			(284	)		(4,029	)
Deferred taxes - Real Estate Groups		(19,928	)		–		–		–		(19,928	)		(28,570	)		–			–			(760	)		(29,330	)
Straight-line rent adjustment		–			–		–		–		–			2,170			–			–			497			2,667
Preference payment		–			–		–		–		–			(585	)		–			–			–			(585	)
Gain (loss) on disposition of rental properties and partial interests in rental properties, net of tax		–			–		–		–		–			(1,145	)		–			5,299			(758	)		3,396
Gain (loss) on disposition of unconsolidated entities, net of tax		–			–		–		–		–			5,299			–			(5,299	)		–			–
Impairment of consolidated and unconsolidated real estate, net of tax		–			–		–		–		–			(2,557	)		–			(13,201	)		(20,931	)		(36,689	)
Impairment of unconsolidated real estate, net of tax		–			–		–		–		–			(13,201	)		–			13,201			–			–
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		–			–		–		–		–			(1,943	)		–			–			1,943			–
Amortization of mortgage procurement costs - Real Estate Groups		–			–		–		–		–			(284	)		–			–			284			–
Deferred taxes - Real Estate Groups		–			–		–		–		–			(760	)		–			–			760			–
Straight-line rent adjustment		–			–		–		–		–			497			–			–			(497	)		–
Gain on disposition of rental properties		–			–		–		–		–			(758	)		–			–			758			–
Impairment of consolidated and unconsolidated real estate		–			–		–		–		–			(20,931	)		–			–			20,931			–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(36,790	)	$	–	$	–	$	–	$	(36,790	)	$	(46,791	)	$	–		$	–		$	–		$	(46,791	)
Preferred dividends		(3,850	)		–		–		–		(3,850	)		(3,850	)		–			–			–			(3,850	)
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(40,640	)	$	–	$	–	$	–	$	(40,640	)	$	(50,641	)	$	–		$	–		$	–		$	(50,641	)

54

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Nine Months Ended October 31, 2010 (in thousands)

	Commercial Group 2010														Residential Group 2010
	Full   Consolidation   (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)			Full   Consolidation   (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	672,597		$	36,053	$	117,890		$	33,529		$	787,963		$	157,888		$	2,701		$	110,684		$	2,506		$	268,377
Exclude straight-line rent adjustment		(12,439	)		–		–			(1,168	)		(13,607	)		(731	)		–			–			–			(731	)
Adjusted revenues		660,158			36,053		117,890			32,361			774,356			157,157			2,701			110,684			2,506			267,646
Add interest and other income		13,438			1,060		318			3			12,699			14,243			400			834			4			14,681
Add gain on disposition of partial interests in other investment - Nets		–			–		–			–			–			–			–			–			–			–
Add equity in earnings (loss) of unconsolidated entities, including impairment		3,245			–		(3,245	)		–			–			16,532			(89	)		(16,067	)		–			554
Exclude gain (loss) on disposition of unconsolidated entities		(5,613	)		–		5,613			–			–			(2,215	)		–			2,215			–			–
Exclude impairment of unconsolidated real estate		14,889			–		(14,889	)		–			–			–			–			–			–			–
Exclude depreciation and amortization of unconsolidated entities		20,619			–		(20,619	)		–			–			17,787			–			(17,787	)		–			–
Adjusted total income		706,736			37,113		85,068			32,364			787,055			203,504			3,012			79,879			2,510			282,881
Operating expenses		331,694			20,919		52,441			17,684			380,900			98,833			1,076			54,874			1,610			154,241
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		1,355			–		–			–			1,355			1,098			–			–			–			1,098
Exclude straight-line rent adjustment		(4,090	)		–		–			–			(4,090	)		4			–			–			–			4
Exclude preference payment		(1,756	)		–		–			–			(1,756	)		–			–			–			–			–
Adjusted operating expenses		327,203			20,919		52,441			17,684			376,409			99,935			1,076			54,874			1,610			155,343
Net operating income		379,533			16,194		32,627			14,680			410,646			103,569			1,936			25,005			900			127,538
Interest expense		174,269			12,867		32,627			6,078			200,107			17,318			646			24,980			118			41,770
(Gain) loss on early extinguishment of debt		–			–		–			–			–			(2,460	)		(247	)		25			–			(2,188	)
Noncontrolling interest in earnings before depreciation and amortization		3,327			3,327		–			–			–			1,537			1,537			–			–			–
Add: Pre-Tax EBDT from discontinued operations		8,602			–		–			(8,602	)		–			782			–			–			(782	)		–
Pre-Tax EBDT		210,539			–		–			–			210,539			87,956			–			–			–			87,956
Income tax expense (benefit)		4,398			–		–			–			4,398			499			–			–			–			499
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	206,141		$	–	$	–		$	–		$	206,141		$	87,457		$	–		$	–		$	–		$	87,457
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	206,141		$	–	$	–		$	–		$	206,141		$	87,457		$	–		$	–		$	–		$	87,457
Depreciation and amortization - Real Estate Groups		(150,006	)		–		–			(6,083	)		(156,089	)		(55,736	)		–			–			(636	)		(56,372	)
Amortization of mortgage procurement costs - Real Estate Groups		(7,889	)		–		–			(752	)		(8,641	)		(1,859	)		–			–			(13	)		(1,872	)
Deferred taxes - Real Estate Groups		(16,274	)		–		–			(964	)		(17,238	)		(11,343	)		–			–			(400	)		(11,743	)
Straight-line rent adjustment		8,349			–		–			1,168			9,517			735			–			–			–			735
Preference payment		(1,756	)		–		–			–			(1,756	)		–			–			–			–			–
Gain (loss) on disposition of rental properties and partial interests in rental properties, net of tax		106,118			–		3,436			(758	)		108,796			18,083			–			1,356			1,099			20,538
Gain (loss) on disposition of unconsolidated entities, net of tax		3,436			–		(3,436	)		–			–			1,356			–			(1,356	)		–			–
Impairment of consolidated and unconsolidated real estate, net of tax		(2,213	)		–		(9,115	)		(48,731	)		(60,059	)		–			–			–			–			–
Impairment of unconsolidated real estate, net of tax		(9,115	)		–		9,115			–			–			–			–			–			–			–
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		(6,083	)		–		–			6,083			–			(636	)		–			–			636			–
Amortization of mortgage procurement costs - Real Estate Groups		(752	)		–		–			752			–			(13	)		–			–			13			–
Deferred taxes - Real Estate Groups		(964	)		–		–			964			–			(400	)		–			–			400			–
Straight-line rent adjustment		1,168			–		–			(1,168	)		–			–			–			–			–			–
Gain on disposition of rental properties		(758	)		–		–			758			–			1,099			–			–			(1,099	)		–
Impairment of consolidated and unconsolidated real estate		(48,731	)		–		–			48,731			–			–			–			–			–			–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	80,671		$	–	$	–		$	–		$	80,671		$	38,743		$	–		$	–		$	–		$	38,743

55

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Nine Months Ended October 31, 2010 (in thousands) (continued)

Land Development Group 2010

The Nets 2010

Full   Consolidation   (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Full   Consolidation   (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Revenues from real estate operations

$

19,564

$

1,193

$

8,159

$

–

$

26,530

$

–

$

–

$

–

$

–

$

–

Exclude straight-line rent adjustment

5

–

–

–

5

–

–

–

–

–

Adjusted revenues

19,569

1,193

8,159

–

26,535

–

–

–

–

–

Add interest and other income

6,946

564

96

–

6,478

–

–

14,037

–

14,037

Add gain on disposition of partial interests in other investment - Nets

–

–

–

–

–

55,112

23,675

–

–

31,437

Add equity in earnings (loss) of unconsolidated entities, including impairment

(19,223

)

–

20,531

–

1,308

(18,006

)

(6,243

)

4,207

–

(7,556

)

Exclude gain (loss) on disposition of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Exclude impairment of unconsolidated real estate

21,856

–

(21,856

)

–

–

–

–

–

–

–

Exclude depreciation and amortization of unconsolidated entities

182

–

(182

)

–

–

–

–

–

–

–

Adjusted total income

29,330

1,757

6,748

–

34,321

37,106

17,432

18,244

–

37,918

Operating expenses

26,874

1,409

6,545

–

32,010

–

–

16,151

–

16,151

Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs

119

–

–

–

119

–

–

947

–

947

Exclude straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Exclude preference payment

–

–

–

–

–

–

–

–

–

–

Adjusted operating expenses

26,993

1,409

6,545

–

32,129

–

–

17,098

–

17,098

Net operating income

2,337

348

203

–

2,192

37,106

17,432

1,146

–

20,820

Interest expense

2,178

214

203

–

2,167

–

–

1,146

–

1,146

(Gain) loss on early extinguishment of debt

–

–

–

–

–

–

–

–

–

–

Noncontrolling interest in earnings before depreciation and amortization

134

134

–

–

–

17,432

17,432

–

–

–

Add: Pre-Tax EBDT from discontinued operations

–

–

–

–

–

–

–

–

–

–

Pre-Tax EBDT

25

–

–

–

25

19,674

–

–

–

19,674

Income tax expense (benefit)

(982

)

–

–

–

(982

)

8,900

–

–

–

8,900

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

1,007

$

–

$

–

$

–

$

1,007

$

10,774

$

–

$

–

$

–

$

10,774

Reconciliation to net earnings:

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

1,007

$

–

$

–

$

–

$

1,007

$

10,774

$

–

$

–

$

–

$

10,774

Depreciation and amortization - Real Estate Groups

(202

)

–

–

–

(202

)

–

–

–

–

–

Amortization of mortgage procurement costs - Real Estate Groups

(211

)

–

–

–

(211

)

–

–

–

–

–

Deferred taxes - Real Estate Groups

(827

)

–

–

–

(827

)

–

–

–

–

–

Straight-line rent adjustment

(5

)

–

–

–

(5

)

–

–

–

–

–

Preference payment

–

–

–

–

–

–

–

–

–

–

Gain (loss) on disposition of rental properties and partial interests in rental properties, net of tax

–

–

–

–

–

–

–

–

–

–

Gain (loss) on disposition of unconsolidated entities, net of tax

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate, net of tax

(1,016

)

–

(13,380

)

–

(14,396

)

–

–

–

–

–

Impairment of unconsolidated real estate, net of tax

(13,380

)

–

13,380

–

–

–

–

–

–

–

Discontinued operations, net of tax:

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

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate

–

–

–

–

–

–

–

–

–

–

Net earnings (loss) attributable to Forest City Enterprises, Inc.

$

(14,634

)

$

–

$

–

$

–

$

(14,634

)

$

10,774

$

–

$

–

$

–

$

10,774

56

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) – Nine Months Ended October 31, 2010 (in thousands) (continued)

	Corporate Activities 2010												Total 2010
	Full   Consolidation   (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full   Consolidation   (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	–		$	–	$	–	$	–	$	–		$	850,049		$	39,947		$	236,733		$	36,035		$	1,082,870
Exclude straight-line rent adjustment		–			–		–		–		–			(13,165	)		–			–			(1,168	)		(14,333	)
Adjusted revenues		–			–		–		–		–			836,884			39,947			236,733			34,867			1,068,537
Add interest and other income		337			–		–		–		337			34,964			2,024			15,285			7			48,232
Add gain on disposition of partial interests in other investment - Nets		–			–		–		–		–			55,112			23,675			–			–			31,437
Add equity in earnings (loss) of unconsolidated entities, including impairment		–			–		–		–		–			(17,452	)		(6,332	)		5,426			–			(5,694	)
Exclude gain (loss) on disposition of unconsolidated entities		–			–		–		–		–			(7,828	)		–			7,828			–			–
Exclude impairment of unconsolidated real estate		–			–		–		–		–			36,745			–			(36,745	)		–			–
Exclude depreciation and amortization of unconsolidated entities		–			–		–		–		–			38,588			–			(38,588	)		–			–
Adjusted total income		337			–		–		–		337			977,013			59,314			189,939			34,874			1,142,512
Operating expenses		29,325			–		–		–		29,325			486,726			23,404			130,011			19,294			612,627
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		1,365			–		–		–		1,365			3,937			–			947			–			4,884
Exclude straight-line rent adjustment		–			–		–		–		–			(4,086	)		–			–			–			(4,086	)
Exclude preference payment		–			–		–		–		–			(1,756	)		–			–			–			(1,756	)
Adjusted operating expenses		30,690			–		–		–		30,690			484,821			23,404			130,958			19,294			611,669
Net operating income		(30,353	)		–		–		–		(30,353	)		492,192			35,910			58,981			15,580			530,843
Interest expense		48,052			–		–		–		48,052			241,817			13,727			58,956			6,196			293,242
(Gain) loss on early extinguishment of debt		(8,193	)		–		–		–		(8,193	)		(10,653	)		(247	)		25			–			(10,381	)
Noncontrolling interest in earnings before depreciation and amortization		–			–		–		–		–			22,430			22,430			–			–			–
Add: Pre-Tax EBDT from discontinued operations		–			–		–		–		–			9,384			–			–			(9,384	)		–
Pre-Tax EBDT		(70,212	)		–		–		–		(70,212	)		247,982			–			–			–			247,982
Income tax expense (benefit)		(31,559	)		–		–		–		(31,559	)		(18,744	)		–			–			–			(18,744	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(38,653	)	$	–	$	–	$	–	$	(38,653	)	$	266,726		$	–		$	–		$	–		$	266,726
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(38,653	)	$	–	$	–	$	–	$	(38,653	)	$	266,726		$	–		$	–		$	–		$	266,726
Depreciation and amortization - Real Estate Groups		–			–		–		–		–			(205,944	)		–			–			(6,719	)		(212,663	)
Amortization of mortgage procurement costs - Real Estate Groups		–			–		–		–		–			(9,959	)		–			–			(765	)		(10,724	)
Deferred taxes - Real Estate Groups		(16,408	)		–		–		–		(16,408	)		(44,852	)		–			–			(1,364	)		(46,216	)
Straight-line rent adjustment		–			–		–		–		–			9,079			–			–			1,168			10,247
Preference payment		–			–		–		–		–			(1,756	)		–			–			–			(1,756	)
Gain (loss) on disposition of rental properties and partial interests in rental properties, net of tax		–			–		–		–		–			124,201			–			4,792			341			129,334
Gain (loss) on disposition of unconsolidated entities, net of tax		–			–		–		–		–			4,792			–			(4,792	)		–			–
Impairment of consolidated and unconsolidated real estate, net of tax		–			–		–		–		–			(3,229	)		–			(22,495	)		(48,731	)		(74,455	)
Impairment of unconsolidated real estate, net of tax		–			–		–		–		–			(22,495	)		–			22,495			–			–
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		–			–		–		–		–			(6,719	)		–			–			6,719			–
Amortization of mortgage procurement costs - Real Estate Groups		–			–		–		–		–			(765	)		–			–			765			–
Deferred taxes - Real Estate Groups		–			–		–		–		–			(1,364	)		–			–			1,364			–
Straight-line rent adjustment		–			–		–		–		–			1,168			–			–			(1,168	)		–
Gain on disposition of rental properties		–			–		–		–		–			341			–			–			(341	)		–
Impairment of consolidated and unconsolidated real estate		–			–		–		–		–			(48,731	)		–			–			48,731			–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(55,061	)	$	–	$	–	$	–	$	(55,061	)	$	60,493		$	–		$	–		$	–		$	60,493
Preferred dividends		(7,957	)		–		–		–		(7,957	)		(7,957	)		–			–			–			(7,957	)
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(63,018	)	$	–	$	–	$	–	$	(63,018	)	$	52,536		$	–		$	–		$	–		$	52,536

57