Forest City – FCEA – Committed to pursuing operational excellence

Forest City Enterprises, Inc. (NYSE: FCEA) announced revenues for the year to date and the second quarter ended July 31, 2012.

• Portfolio shows continued strength: comparable NOI, occupancy up in all core products
• “Operating FFO” introduced to spotlight recurring contribution from portfolio
• Significant progress on land disposition strategy, additional impairment incurred
• Asset sales contribute to greater focus on core markets, products
• New multifamily starts in Boston, Washington D.C.

FCEA Revenues

Second-quarter 2012 consolidated revenues from real estate operations were $261.4 million, compared with $244.7 million for the comparable period in 2011. For the first six months of 2012, consolidated revenues from real estate operations were $557.2 million, compared with $548.0 for the first six months of 2011.

FCEA Commentary

“During the second quarter, our rental properties portfolio performed well, particularly our comparable properties, where we had increases in net operating income in all core products, including our fourth consecutive quarter of double-digit growth in multifamily.  Comparable occupancy was also up in all core products,” said David J. LaRue, Forest City president and chief executive officer. “Overall results for the quarter were impacted by non-cash impairments related primarily to disposition activity stemming from our strategic decision to divest the bulk of our land business, and by write-offs of abandoned development projects.

“With this quarter’s results, we are introducing Operating FFO, a measure that we believe gives investors important information on the recurring contributions of our operating business by excluding various one-time, transactional and non-recurring items.  Operating FFO in the second quarter was up marginally compared with the same period last year, and is up 5.8 percent year-to-date, compared with the first six months of 2011.  Adding Operating FFO to the information we make available to investors is part of our ongoing commitment to improve our disclosure and enhance transparency.

FCEA Outlook

“We continue to execute on our key strategies: a focus on core markets and products, a stronger capital structure and improved balance sheet, and growth from the mature portfolio, from newly opened projects, and from new development by activating existing entitlement,” said LaRue. “We are committed to pursuing operational excellence, and to improving transparency and disclosure to insure that investors have visibility to our value-creation model.  While we continue to monitor the macroeconomic factors that impact our business, we remain confident in our ability to deliver enhanced value for our shareholders and other stakeholders.”

About Forest City – FCEA

Forest City Enterprises, Inc. (FCEA) is an NYSE-listed national real estate company with $10.7 billion in total assets. The company is principally engaged in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.