Forest City Enterprises (FCEPP) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Forest City Enterprises, Inc.

Supplemental Package

Years Ended January 31, 2010 and 2009

Forest City Enterprises, Inc. and Subsidiaries
Years Ended January 31, 2010 and 2009
Supplemental Package

NYSE: FCEA, FCEB

Index

Corporate Overview	2
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 (Loss)	18-19
Results of Operations Discussion	20-22
EBDT Bridge	23
Reconciliation of Net Earnings (Loss) to EBDT	24-25
Schedules of Lease Expirations	26-27
Schedules of Significant Tenants	28-29
Development Pipeline	30-33
Supplemental Financial Information
Projects under Development Debt and Mortgage Financings	34
Scheduled Maturities Table	35-36
Upcoming Maturities Summary	37
Investments in and Advances to Affiliates	38-40
Forest City Rental Properties Corporation
Consolidated Balance Sheet Information	41
Consolidated Earnings Information	42
Real Estate Activity	43-45
Summary of EBDT	46-57
Property Listing	58-68

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 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 our ownership, development and management of our real estate portfolio, general real estate investment and development risks, liquidity risks we could face if we do not close the transaction with Onexim Group to create a strategic partnership for our Brooklyn Atlantic Yards project, 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, 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, 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. TheCommercial 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. TheResidential Groupowns, 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. New York City operations are part of the Commercial Group or Residential Group depending on the nature of the operations. TheLand Development Groupacquires 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 Groupsare the combined Commercial, Residential and Land Development Groups.Corporate Activitiesand theNets, 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 $11.9 billion of assets in 27 states and the District of Columbia at January 31, 2010. 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. As a result of an ongoing effort to increase property concentration in the core markets, these markets now account for approximately 77 percent of the cost of our real estate portfolio at January 31, 2010. We have offices in Albuquerque, Boston, Chicago, 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-K for the year ended January 31, 2010. Effective February 1, 2009, we were required to adopt new accounting guidance on accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) and noncontrolling interests in our consolidated financial statements. These new accounting standards required us to adjust the prior year financial statements to show retrospective application upon adoption including classifying noncontrolling interest as a component of total equity. See pages 102 through 104 of our Form 10-K for further discussion.

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 on pages 58-68.

EBDT

We believe that EBDT, along with net earnings, provides additional information about our core operations. While property dispositions, acquisitions or other factors can affect net earnings in the short-term, we believe EBDT presents a more consistent view of the overall financial performance of our business from period-to-period. EBDT is used by the chief operating decision maker and management to assess performance and resource allocations by strategic business unit and on a consolidated basis. EBDT is similar to Funds From Operations (“FFO”), a measure of performance used by publicly traded Real Estate Investment Trusts (“REITs”), but may not be directly comparable to similarly titled measures reported by other companies. For additional discussion of EBDT as well as a reconciliation of net earnings (loss) to EBDT see pages 21-25.

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 (loss), results of operations discussion, EBDT bridge, reconciliation of net earnings (loss) 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 years ended January 31, 2010 and 2009.

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 (as discussed beginning on page 21), 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 (loss), the most comparable financial measure calculated in accordance with GAAP, and reconciliation from NOI to comparable NOI are provided on pages 13-15 of this document, and a reconciliation of NOI to net earnings (loss) for each strategic business unit can be found on pages 46-57.

Corporate Headquarters
Forest City Enterprises, Inc.
Terminal Tower
50 Public Square, Suite 1100
Cleveland, Ohio 44113

Annual Report on Form 10-K

A copy of the Annual Report on Form 10-K for the fiscal year ended January 31, 2010 as filed with the Securities and Exchange Commission can be found on our website under SEC Filings or may be obtained without charge upon written request to:

Thomas T. Kmiecik
Assistant Treasurer
tomkmiecik@forestcity.net

Website
www.forestcity.net

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

Investor Relations
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.

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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 �� January 31, 2010 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties
Residential	$	1,740,394		$	41,236		$	688,409		$	2,387,567
Commercial
Retail centers		3,359,953			120,351			472,914			3,712,516
Office and other buildings		3,369,719			129,484			207,127			3,447,362
Corporate and other equipment		9,736			-			1			9,737
Total Completed rental properties		8,479,802			291,071			1,368,451			9,557,182
Projects under development
Under construction
Residential		787,203			176,467			8,307			619,043
Commercial
Retail centers		782,902			67,826			203,009			918,085
Office and other buildings(1)		263,457			132,156			66,059			197,360
Subtotal Under construction		1,833,562			376,449			277,375			1,734,488
Under development
Residential		120,715			-			7,965			128,680
Commercial
Retail centers		21,016			101			10,868			31,783
Office and other buildings(1)		665,877			223,569			9,212			451,520
Subtotal Under development		807,608			223,670			28,045			611,983
Total Projects under development		2,641,170			600,119			305,420			2,346,471
Land held for development or sale		219,807			11,674			116,863			324,996
Total Real Estate		11,340,779			902,864			1,790,734			12,228,649
Less accumulated depreciation		(1,593,658	)		(57,756	)		(326,169	)		(1,862,071	)
Real Estate, net		9,747,121			845,108			1,464,565			10,366,578
Cash and equivalents		251,405			6,681			30,280			275,004
Restricted cash		427,921			90,951			68,406			405,376
Notes and accounts receivable, net		388,536			22,173			71,203			437,566
Investments in and advances to affiliates		265,343			(159,978	)		(65,246	)		360,075
Lease and mortgage procurement costs, net		413,421			32,271			24,868			406,018
Prepaid expenses and other deferred costs, net		279,735			38,705			46,138			287,168
Intangible assets, net		143,229			-			1,310			144,539
Total Assets	$	11,916,711		$	875,911		$	1,641,524		$	12,682,324

4

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Balance Sheet Information – January 31, 2010 (Unaudited)

							Plus
		Full			Less		Unconsolidated			Pro-Rata
		Consolidation			Noncontrolling		Investments at			Consolidation
		(GAAP)			Interest		Pro-Rata			(Non-GAAP)
	(in thousands)
Liabilities and Equity
Liabilities
Mortgage debt, nonrecourse
Completed rental properties
Residential		$	1,165,786		$	33,596	$	552,316		$	1,684,506
Commercial
Retail centers			2,508,274			117,639		434,182			2,824,817
Office and other buildings			2,472,683			99,432		145,225			2,518,476
Total Completed rental properties			6,146,743			250,667		1,131,723			7,027,799
Projects under development
Under construction
Residential			443,459			134,353		35,242			344,348
Commercial
Retail centers			440,450			40,090		121,160			521,520
Office and other buildings(1)			183,742			101,058		1,574			84,258
Subtotal Under construction			1,067,651			275,501		157,976			950,126
Under development
Residential			-			-		-			-
Commercial
Retail centers			-			-		-			-
Office and other buildings(1)			195,849			78,713		2,887			120,023
Subtotal Under development			195,849			78,713		2,887			120,023
Total Projects under development			1,263,500			354,214		160,863			1,070,149
Land held for development or sale			64,027			4,348		52,621			112,300
Total Mortgage debt, nonrecourse			7,474,270			609,229		1,345,207			8,210,248
Notes payable			158,798			13,380		128,740			274,158
Bank revolving credit facility			83,516			-		-			83,516
Senior and subordinated debt			1,076,424			-		-			1,076,424
Construction payables			209,301			26,481		16,746			199,566
Accounts payable and accrued expenses			972,192			57,461		151,664			1,066,395
Deferred income taxes			437,370			-		-			437,370
Total Liabilities			10,411,871			706,551		1,642,357			11,347,677
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss			1,235,892			-		-			1,235,892
Accumulated other comprehensive loss			(87,266	)		-		-			(87,266	)
Total Shareholders’ Equity			1,148,626			-		-			1,148,626
Noncontrolling interest			356,214			169,360		(833	)		186,021
Total Equity			1,504,840			169,360		(833	)		1,334,647
Total Liabilities and Equity		$	11,916,711		$	875,911	$	1,641,524		$	12,682,324

(1) Barclays Centerand the mixed-useAtlantic Yardsprojects are presented in “Office and other buildings.”

5

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Balance Sheet Information – January 31, 2009 (Unaudited)

	Full						Plus			Pro-Rata
	Consolidation			Less			Unconsolidated			Consolidation
	(GAAP)			Noncontrolling			Investments at			(Non-GAAP)
	(As Adjusted)			Interest			Pro-Rata			(As Adjusted)
	(in thousands)
Assets
Real Estate
Completed rental properties
Residential	$	1,701,737		$	37,677		$	781,758		$	2,445,818
Commercial
Retail centers		3,242,908			84,003			418,820			3,577,725
Office and other buildings		3,256,301			116,427			190,506			3,330,380
Corporate and other equipment		11,198			-			1			11,199
Total Completed rental properties		8,212,144			238,107			1,391,085			9,365,122
Projects under development
Under construction
Residential		512,859			110,944			53,129			455,044
Commercial
Retail centers		653,508			43,721			203,931			813,718
Office and other buildings		210,569			77,144			24,704			158,129
Subtotal Under construction		1,376,936			231,809			281,764			1,426,891
Under development
Residential		144,989			-			8,133			153,122
Commercial
Retail centers		37,712			101			10,825			48,436
Office and other buildings(1)		681,579			235,722			53,921			499,778
Subtotal Under development		864,280			235,823			72,879			701,336
Total Projects under development		2,241,216			467,632			354,643			2,128,227
Land held for development or sale		195,213			19,629			122,377			297,961
Total Real Estate		10,648,573			725,368			1,868,105			11,791,310
Less accumulated depreciation		(1,419,271	)		(47,555	)		(332,619	)		(1,704,335	)
Real Estate, net		9,229,302			677,813			1,535,486			10,086,975
Cash and equivalents		267,305			5,111			11,858			274,052
Restricted cash		291,224			31,529			115,863			375,558
Notes and accounts receivable, net		427,410			14,767			65,488			478,131
Investments in and advances to affiliates		228,995			(95,740	)		(60,221	)		264,514
Lease and mortgage procurement costs, net		435,152			23,587			24,612			436,177
Prepaid expenses and other deferred costs, net		345,319			39,435			52,773			358,657
Intangible assets, net		155,800			-			348			156,148
Total Assets	$	11,380,507		$	696,502		$	1,746,207		$	12,430,212

6

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Balance Sheet Information – January 31, 2009 (Unaudited)

	Full					Plus			Pro-Rata
	Consolidation			Less		Unconsolidated			Consolidation
	(GAAP)			Noncontrolling		Investments at			(Non-GAAP)
	(As Adjusted)			Interest		Pro-Rata			(As Adjusted)
	(in thousands)
Liabilities and Equity
Liabilities
Mortgage debt, nonrecourse
Completed rental properties
Residential	$	1,078,486		$	30,524	$	618,829		$	1,666,791
Commercial
Retail centers		2,532,986			83,953		437,451			2,886,484
Office and other buildings		2,474,846			100,560		116,964			2,491,250
Total Completed rental properties		6,086,318			215,037		1,173,244			7,044,525
Projects under development
Under construction
Residential		264,250			61,986		103,574			305,838
Commercial
Retail centers		337,218			22,446		99,684			414,456
Office and other buildings		72,608			36,304		15,623			51,927
Subtotal Under construction		674,076			120,736		218,881			772,221
Under development
Residential		-			-		-			-
Commercial
Retail centers		-			-		-			-
Office and other buildings(1)		227,217			91,727		22,398			157,888
Subtotal Under development		227,217			91,727		22,398			157,888
Total Projects under development		901,293			212,463		241,279			930,109
Land held for development or sale		90,779			11,519		60,491			139,751
Total Mortgage debt, nonrecourse		7,078,390			439,019		1,475,014			8,114,385
Notes payable		181,919			12,794		90,013			259,138
Bank revolving credit facility		365,500			-		-			365,500
Senior and subordinated debt		846,064			-		-			846,064
Construction payables		309,272			32,987		29,787			306,072
Accounts payable and accrued expenses		967,927			60,676		152,174			1,059,425
Deferred income taxes		455,336			-		-			455,336
Total Liabilities		10,204,408			545,476		1,746,988			11,405,920
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss		945,792			-		-			945,792
Accumulated other comprehensive loss		(107,521	)		-		-			(107,521	)
Total Shareholders’ Equity		838,271			-		-			838,271
Noncontrolling interest		337,828			151,026		(781	)		186,021
Total Equity		1,176,099			151,026		(781	)		1,024,292
Total Liabilities and Equity	$	11,380,507		$	696,502	$	1,746,207		$	12,430,212

(1) Barclays Centerand the mixed-useAtlantic Yardsprojects are presented in “Office and other buildings.”

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Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

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

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	324,333		$	12,731		$	92,375		$	-		$	403,977
Expenses
Operating expenses		184,571			6,591			71,105			-			249,085
Depreciation and amortization		67,749			1,862			15,237			-			81,124
Impairment of real estate		23,402			-			1,693			-			25,095
		275,722			8,453			88,035			-			355,304
Interest expense		(91,836	)		(3,929	)		(16,955	)		-			(104,862	)
Amortization of mortgage procurement costs		(3,329	)		(118	)		(800	)		-			(4,011	)
Loss on early extinguishment of debt		(1,396	)		-			(954	)		-			(2,350	)
Interest and other income		30,081			175			(556	)		-			29,350
Gain on disposition of rental properties and other investments		-			-			45,263			1,172			46,435
Earnings (loss) before income taxes		(17,869	)		406			30,338			1,172			13,235
Income tax expense (benefit)
Current		14,953			-			-			-			14,953
Deferred		(8,629	)		-			-			454			(8,175	)
		6,324			-			-			454			6,778
Equity in earnings (loss), including impairment of unconsolidated entities		30,087			5			(30,338	)		-			(256	)
Earnings from continuing operations		5,894			411			-			718			6,201
Discontinued operations, net of tax:
Gain on disposition of Lumber Group		718			-			-			(718	)		-
Net earnings		6,612			411			-			-			6,201
Net earnings attributable to noncontrolling interest		(411	)		(411	)		-			-			-
Net earnings attributable to Forest City Enterprises, Inc.	$	6,201		$	-		$	-		$	-		$	6,201

8

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Earnings Information – Year Ended January 31, 2010 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	1,257,222		$	50,739		$	355,195		$	5,476		$	1,567,154
Expenses
Operating expenses		716,571			24,169			259,085			430			951,917
Depreciation and amortization		267,408			5,274			58,799			1,347			322,280
Impairment of real estate		26,526			-			36,356			9,775			72,657
		1,010,505			29,443			354,240			11,552			1,346,854
Interest expense		(350,270	)		(14,761	)		(66,850	)		(2,184	)		(404,543	)
Amortization of mortgage procurement costs		(13,974	)		(567	)		(2,689	)		(50	)		(16,146	)
Gain on early extinguishment of debt		36,569			-			744			-			37,313
Interest and other income		54,005			718			2,310			-			55,597
Gain on disposition of rental properties and other investments		-			-			49,761			5,720			55,481
Earnings (loss) before income taxes		(26,953	)		6,686			(15,769	)		(2,590	)		(51,998	)
Income tax expense (benefit)
Current		5,416			-			-			848			6,264
Deferred		(24,966	)		-			-			(1,853	)		(26,819	)
		(19,550	)		-			-			(1,005	)		(20,555	)
Equity in earnings (loss), including impairment of unconsolidated entities		(15,053	)		(76	)		15,769			-			792
Earnings (loss) from continuing operations		(22,456	)		6,610			-			(1,585	)		(30,651	)
Discontinued operations, net of tax:
Operating loss from rental properties		897			-			-			(897	)		-
Impairment of real estate		(5,984	)		-			-			5,984			-
Gain on disposition of rental properties		2,784			-			-			(2,784	)		-
Gain on disposition of Lumber Group		718			-			-			(718	)		-
		(1,585	)		-			-			1,585			-
Net earnings (loss)		(24,041	)		6,610			-			-			(30,651	)
Net earnings attributable to noncontrolling interest		(6,610	)		(6,610	)		-			-			-
Net loss attributable to Forest City Enterprises, Inc.	$	(30,651	)	$	-		$	-		$	-		$	(30,651	)

9

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Earnings Information – Three Months Ended January 31, 2009 (Unaudited)

	Full						Plus						Pro-Rata
	Consolidation			Less			Unconsolidated			Plus			Consolidation
	(GAAP)			Noncontrolling			Investments at			Discontinued			(Non-GAAP)
	(As Adjusted)			Interest			Pro-Rata			Operations			(As Adjusted)
	(in thousands)
Revenues from real estate operations	$	320,574		$	8,437		$	93,153		$	4,051		$	409,341
Expenses
Operating expenses		187,492			3,093			60,698			795			245,892
Depreciation and amortization		68,175			787			16,429			1,031			84,848
Impairment of real estate		1,262			-			15,259			-			16,521
		256,929			3,880			92,386			1,826			347,261
Interest expense		(104,888	)		(1,265	)		(17,350	)		(1,489	)		(122,462	)
Amortization of mortgage procurement costs		(3,306	)		(119	)		(565	)		(79	)		(3,831	)
Loss on early extinguishment of debt		(620	)		-			-			-			(620	)
Interest and other income		14,430			387			1,442			-			15,485
Gain on disposition of rental properties and other investments		-			-			(731	)		5,778			5,047
Earnings (loss) before income taxes		(30,739	)		3,560			(16,437	)		6,435			(44,301	)
Income tax expense (benefit)
Current		(12,543	)		-			-			20,675			8,132
Deferred		10,806			-			-			(18,189	)		(7,383	)
		(1,737	)		-			-			2,486			749
Equity in earnings (loss), including impairment of unconsolidated entities		(16,798	)		(67	)		16,437			-			(294	)
Earnings (loss) from continuing operations		(45,800	)		3,493			-			3,949			(45,344	)
Discontinued operations, net of tax:
Operating earnings from rental properties		404			-			-			(404	)		-
Gain on disposition of rental properties		2,865			-			-			(2,865	)		-
Gain on disposition of Lumber Group		680			-			-			(680	)		-
		3,949			-			-			(3,949	)		-
Net earnings (loss)		(41,851	)		3,493			-			-			(45,344	)
Net earnings attributable to noncontrolling interest		(3,493	)		(3,493	)		-			-			-
Net loss attributable to Forest City Enterprises, Inc.	$	(45,344	)	$	-		$	-		$	-		$	(45,344	)

10

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Earnings Information – Year Ended January 31, 2009 (Unaudited)

	Full						Plus						Pro-Rata
	Consolidation			Less			Unconsolidated			Plus			Consolidation
	(GAAP)			Noncontrolling			Investments at			Discontinued			(Non-GAAP)
	(As Adjusted)			Interest			Pro-Rata			Operations			(As Adjusted)
	(in thousands)
Revenues from real estate operations	$	1,280,570		$	56,132		$	380,297		$	17,176		$	1,621,911
Expenses
Operating expenses		780,798			28,651			272,305			2,399			1,026,851
Depreciation and amortization		266,785			3,142			56,361			4,942			324,946
Impairment of real estate		1,262			-			21,285			-			22,547
		1,048,845			31,793			349,951			7,341			1,374,344
Interest expense		(364,338	)		(11,624	)		(69,757	)		(7,210	)		(429,681	)
Amortization of mortgage procurement costs		(12,029	)		(502	)		(2,064	)		(418	)		(14,009	)
Loss on early extinguishment of debt		(2,159	)		(119	)		(51	)		-			(2,091	)
Interest and other income		42,417			1,807			5,127			125			45,862
Gain on disposition of rental properties and other investments		150			-			142			14,405			14,697
Earnings (loss) before income taxes		(104,234	)		13,901			(36,257	)		16,737			(137,655	)
Income tax expense (benefit)
Current		(27,587	)		-			-			20,039			(7,548	)
Deferred		(2,532	)		-			-			(13,572	)		(16,104	)
		(30,119	)		-			-			6,467			(23,652	)
Equity in earnings (loss), including impairment of unconsolidated entities		(35,585	)		(84	)		36,257			-			756
Earnings (loss) from continuing operations		(109,700	)		13,817			-			10,270			(113,247	)
Discontinued operations, net of tax:
Operating earnings from rental properties		1,431			-			-			(1,431	)		-
Gain on disposition of rental properties		8,159			-			-			(8,159	)		-
Gain on disposition of Lumber Group		680			-			-			(680	)		-
		10,270			-			-			(10,270	)		-
Net earnings (loss)		(99,430	)		13,817			-			-			(113,247	)
Net earnings attributable to noncontrolling interest		(13,817	)		(13,817	)		-			-			-
Net loss attributable to Forest City Enterprises, Inc.	$	(113,247	)	$	-		$	-		$	-		$	(113,247	)

11

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Occupancy Data - January 31, 2010 and 2009

Retail and office occupancy as of January 31, 2010 and 2009 is based on square feet leased at the end of the fiscal quarter. Average Occupancy Year-to-Date as of January 31, 2010 and 2009 for retail and office is calculated by dividing the sum of leased square feet at the beginning and end of the period by two. Residential occupancy as of January 31, 2010 and 2009 represents total units occupied divided by total units available. Average Occupancy as of January 31, 2010 and 2009 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 for the years ended January 31, 2010 and 2009.

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

				Average						Average
	Occupancy			Occupancy			Occupancy			Occupancy
	As of			Year-to-Date			As of			Year-to-Date
	January 31, 2010			January 31, 2010			January 31, 2009			January 31, 2009
Retail
Comparable		90.1	%		89.9	%		89.7	%		91.4	%
Total		88.8	%		88.6	%		88.5	%		90.4	%
Office
Comparable		90.3	%		90.1	%		89.9	%		90.0	%
Total		89.7	%		89.5	%		89.6	%		89.6	%
Residential(1)
Comparable		93.7	%		92.2	%		92.4	%		93.1	%
Total		92.3	%		87.8	%		89.5	%		88.8	%
Hotels
Comparable and Total					69.1	%					68.8	%
Comparable ADR and Total ADR				$	140.01					$	146.26

The table below provides occupancy as reported in previous quarters. Each quarter’s comparable percentage represents the comparable properties in that period, as these change from period to period.

Occupancy Recap of Quarterly Supplemental Packages

	Occupancy As of															Average Occupancy Year-to-Date
	January 31,			October 31,			July 31,			April 30,			January 31,			January 31,			October 31,			July 31,			April 30,			January 31,
	2010			2009			2009			2009			2009			2010			2009			2009			2009			2009
Retail
Comparable		90.1	%		90.1	%		89.8	%		90.0	%		90.4	%		89.9	%		90.0	%		89.9	%		90.1	%		92.0	%
Total		88.8	%		88.4	%		88.1	%		87.7	%		88.5	%		88.6	%		88.4	%		88.3	%		88.1	%		90.4	%
Office
Comparable		90.3	%		89.4	%		89.4	%		90.3	%		90.8	%		90.1	%		89.7	%		89.3	%		90.4	%		90.5	%
Total		89.7	%		88.9	%		89.4	%		89.3	%		89.6	%		89.5	%		89.1	%		89.4	%		89.3	%		89.6	%
Residential(1)
Comparable		93.7	%		92.6	%		91.6	%		91.5	%		92.5	%		92.2	%		90.4	%		90.1	%		90.1	%		92.2	%
Total		92.3	%		91.1	%		89.7	%		88.8	%		89.5	%		87.8	%		86.5	%		85.8	%		85.5	%		88.8	%
Hotels
Comparable and Total																	69.1	%		68.5	%		64.3	%		56.2	%		68.8	%
Comparable ADR and Total ADR																$	140.01		$	139.56		$	137.56		$	135.09		$	146.26

(1) Excludes military housing units.

12

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

We use NOI, along with EBDT as discussed on page 2, to assess operating performance. Comparable NOI is defined as NOI from properties opened and operated in both three months and years ended January 31, 2010 and 2009. The schedules below present Pro-Rata Comparable NOI for the three months and year ended January 31, 2010. The following schedules on pages 14-15 present comparable NOI for each of our major product lines, as well as strategic business units under which these product lines operate. A reconciliation of NOI to the most comparable GAAP measure, net earnings (loss), is presented on pages 18-19. A reconciliation of NOI to net earnings (loss) for each strategic business unit can be found on pages 46-57.

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

	Three Months Ended			Year Ended
	January 31, 2010			January 31, 2010
Retail		(3.9	%)		(3.9	%)
Office		4.3	%		5.4	%
Hotel		(1.1	%)		(9.9	%)
Residential		(2.7	%)		(2.8	%)
Total		(0.5	%)		(0.8	%)

The tables below provide 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

	Three Months Ended,
	January 31, 2010			October 31, 2009			July 31, 2009			April 30, 2009			January 31, 2009
Retail		(3.9	%)		(1.7	%)		(4.3	%)		(1.0	%)		(5.3	%)
Office		4.3	%		5.6	%		7.1	%		4.4	%		2.9	%
Hotel		(1.1	%)		6.2	%		(24.8	%)		(25.5	%)		(16.5	%)
Residential		(2.7	%)		(3.9	%)		(4.2	%)		(1.8	%)		(2.1	%)
Total		(0.5	%)		0.8	%		(1.4	%)		0.3	%		(2.3	%)

Annual Historical Trends

	Years Ended,
	January 31, 2010			January 31, 2009			January 31, 2008
Retail		(3.9	%)		0.3	%		6.9	%
Office		5.4	%		1.2	%		2.1	%
Hotel		(9.9	%)		(4.9	%)		4.9	%
Residential		(2.8	%)		0.2	%		4.2	%
Total		(0.8	%)		0.4	%		4.6	%

13

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income (dollars in thousands)
	Three Months Ended January 31, 2010														Three Months Ended January 31, 2009																	% Change
							Plus														Plus
	Full			Less			Unconsolidated			Plus		Pro-Rata			Full			Less			Unconsolidated			Plus		Pro-Rata			Full				Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued		Consolidation			Consolidation			Noncontrolling			Investments at			Discontinued		Consolidation			Consolidation				Consolidation
	(GAAP)			Interest			Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations		(Non-GAAP)			(GAAP)				(Non-GAAP)
Commercial Group
Retail
Comparable	$	58,311		$	2,559		$	5,463		$	-	$	61,215		$	60,271		$	2,091		$	5,531		$	-	$	63,711			(3.3	%)			(3.9	%)
Total		62,172			2,678			5,581			-		65,075			64,696			3,182			5,579			560		67,653
Office Buildings
Comparable		62,600			2,692			2,026			-		61,934			58,803			2,441			2,999			-		59,361			6.5	%			4.3	%
Total		65,240			2,649			2,070			-		64,661			62,786			738			2,999			-		65,047
Hotels
Comparable		2,704			-			-			-		2,704			2,734			-			-			-		2,734			(1.1	%)			(1.1	%)
Total		2,704			-			-			-		2,704			2,734			-			-			-		2,734
Earnings from Commercial
Land Sales		(144	)		-			-			-		(144	)		11,318			6			-			-		11,312
Other(1)		3,469			315			(1,052	)		-		2,102			(9,495	)		104			(261	)		-		(9,860	)
Total Commercial Group
Comparable		123,615			5,251			7,489			-		125,853			121,808			4,532			8,530			-		125,806			1.5	%			0.0	%
Total		133,441			5,642			6,599			-		134,398			132,039			4,030			8,317			560		136,886
Residential Group
Apartments
Comparable		25,716			714			6,575			-		31,577			27,087			707			6,064			-		32,444			(5.1	%)			(2.7	%)
Total		37,977			880			8,706			-		45,803			28,451			934			8,531			2,690		38,738
Military Housing
Comparable(2)		-			-			-			-		-			-			-			-			-		-
Total		8,522			(451	)		311			-		9,284			10,520			(134	)		196			-		10,850
Other(1)		6,250			5			-			-		6,245			3,034			83			-			-		2,951
Total Residential Group
Comparable		25,716			714			6,575			-		31,577			27,087			707			6,064			-		32,444			(5.1	%)			(2.7	%)
Total		52,749			434			9,017			-		61,332			42,005			883			8,727			2,690		52,539
Total Rental Properties
Comparable		149,331			5,965			14,064			-		157,430			148,895			5,239			14,594			-		158,250			0.3	%			(0.5	%)
Total		186,190			6,076			15,616			-		195,730			174,044			4,913			17,044			3,250		189,425
Land Development Group		365			244			(323	)		-		(202	)		8,001			751			171			-		7,421
The Nets		(13,648	)		-			2,616			-		(11,032	)		(9,109	)		-			866			-		(8,243	)
Corporate Activities		(9,466	)		-			-			-		(9,466	)		(14,438	)		-			-			-		(14,438	)
Grand Total	$	163,441		$	6,320		$	17,909		$	-	$	175,030		$	158,498		$	5,664		$	18,081		$	3,250	$	174,165

(1)	Includes write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of historic and new market tax credit income. Write-offs of abandoned development projects were $5,490 and $10,760 at both full and pro-rata consolidation for the three months ended January 31, 2010 and 2009, respectively.
(2)	Comparable NOI for Military Housing commences once the operating projects complete initial development phase.

14

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income(dollars in thousands)
	Year Ended January 31, 2010															Year Ended January 31, 2009														% Change
							Plus															Plus
	Full			Less			Unconsolidated				Plus		Pro-Rata			Full			Less			Unconsolidated			Plus		Pro-Rata			Full			Pro-Rata
	Consolidation			Noncontrolling			Investments at				Discontinued		Consolidation			Consolidation			Noncontrolling			Investments at			Discontinued		Consolidation			Consolidation			Consolidation
	(GAAP)			Interest			Pro-Rata				Operations		(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations		(Non-GAAP)			(GAAP)			(Non-GAAP)
Commercial Group
Retail
Comparable	$	227,183		$	11,292		$	22,055			$	-	$	237,946		$	237,608		$	11,966		$	22,052		$	-	$	247,694			(4.4	%)		(3.9	%)
Total		251,960			11,440			22,350				481		263,351			248,737			12,511			22,298			2,433		260,957
Office Buildings
Comparable		202,343			9,967			9,064				-		201,440			190,156			9,609			10,570			-		191,117			6.4	%		5.4	%
Total		255,825			10,486			9,292				-		254,631			251,653			7,384			10,677			-		254,946
Hotels
Comparable		13,507			-			-				-		13,507			14,990			-			-			-		14,990			(9.9	%)		(9.9	%)
Total		13,507			-			-				-		13,507			14,990			-			-			-		14,990
										��
Earnings from Commercial
Land Sales		5,416			476			-				-		4,940			19,713			2,410			-			-		17,303
Other(1)		(7,861	)		817			(2,561	)			-		(11,239	)		(45,774	)		(51	)		(1,826	)		-		(47,549	)
Total Commercial Group
Comparable		443,033			21,259			31,119				-		452,893			442,754			21,575			32,622			-		453,801			0.1	%		(0.2	%)
Total		518,847			23,219			29,081				481		525,190			489,319			22,254			31,149			2,433		500,647
Residential Group
Apartments
Comparable		105,952			2,786			21,281				-		124,447			107,965			2,895			22,974			-		128,044			(1.9	%)		(2.8	%)
Total		129,632			3,781			29,842				4,553		160,246			117,351			3,107			32,013			12,316		158,573
Military Housing
Comparable(2)		-			-			-				-		-			-			-			-			-		-
Total		37,424			(303	)		1,044				-		38,771			51,269			3,794			974			-		48,449
Other(1)		(15,277	)		94			-				-		(15,371	)		(20,013	)		228			-			-		(20,241	)
Total Residential Group
Comparable		105,952			2,786			21,281				-		124,447			107,965			2,895			22,974			-		128,044			(1.9	%)		(2.8	%)
Total		151,779			3,572			30,886				4,553		183,646			148,607			7,129			32,987			12,316		186,781
Total Rental Properties
Comparable		548,985			24,045			52,400				-		577,340			550,719			24,470			55,596			-		581,845			(0.3	%)		(0.8	%)
Total		670,626			26,791			59,967				5,034		708,836			637,926			29,383			64,136			14,749		687,428
Land Development Group(3)		2,007			421			(1,925	)			-		(339	)		2,914			(179	)		538			-		3,631
The Nets		(43,489	)		-			8,064				-		(35,425	)		(40,989	)		-			6,073			-		(34,916	)
Corporate Activities		(41,321	)		-			-				-		(41,321	)		(45,712	)		-			-			-		(45,712	)
Grand Total	$	587,823		$	27,212		$	66,106			$	5,034	$	631,751		$	554,139		$	29,204		$	70,747		$	14,749	$	610,431

(1)	Includes write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of historic and new market tax credit income. Write-offs of abandoned development projects were $26,888 and $52,211 at full consolidation ($26,888 and $49,966 at pro-rata consolidation) for the year ended January 31, 2010 and 2009, respectively.
(2)	Comparable NOI for Military Housing commences once the operating projects complete initial development phase.
(3)	Includes reduction in fair value of the DURA purchase obligation and fee in 2008 of $12,434,000.

15

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Net Operating Income by Product Type
Pro-Rata Consolidation (dollars in thousands)

Year Ended January 31, 2010

NOI by Product Type:	$	735,107
Other(1)		(26,610	)
The Nets		(35,425	)
Corporate Activities		(41,321	)
Grand Total NOI	$	631,751

Year Ended January 31, 2009

NOI by Product Type:	$	758,849
Other(1)		(67,790	)
The Nets		(34,916	)
Corporate Activities		(45,712	)
Grand Total NOI	$	610,431

(1) Other includes write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of historic and new market 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)

Year Ended January 31, 2010

NOI by Core Market:	$	735,107
Other(1)		(26,610	)
The Nets		(35,425	)
Corporate Activities		(41,321	)
Grand Total NOI	$	631,751

Year Ended January 31, 2009

NOI by Core Market:	$	758,849
Other(1)		(67,790	)
The Nets		(34,916	)
Corporate Activities		(45,712	)
Grand Total NOI	$	610,431

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

17

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

	Three Months Ended January 31, 2010															Three Months Ended January 31, 2009
							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	$	324,333		$	12,731		$	92,375		$	-		$	403,977		$	320,574		$	8,437		$	93,153		$	4,051		$	409,341
Exclude straight-line rent adjustment (1)		(5,283	)		-			-			-			(5,283	)		1,482			-			-			(6	)		1,476
Adjusted revenues		319,050			12,731			92,375			-			398,694			322,056			8,437			93,153			4,045			410,817
Add interest and other income		30,081			175			(556	)		-			29,350			14,430			387			1,442			-			15,485
Add equity in earnings (loss), including impairment of unconsolidated entities		30,087			5			(30,338	)		-			(256	)		(16,798	)		(67	)		16,437			-			(294	)
Exclude gain on disposition of unconsolidated entities		(45,263	)		-			45,263			-			-			-			-			-			-			-
Exclude impairment of unconsolidated entities		1,693			-			(1,693	)		-			-			15,259			-			(15,259	)		-			-
Exclude depreciation and amortization of unconsolidated entities (see below)		13,293			-			(13,293	)		-			-			11,066			-			(11,066	)		-			-
Adjusted total income		348,941			12,911			91,758			-			427,788			346,013			8,757			84,707			4,045			426,008
Operating expenses		184,571			6,591			71,105			-			249,085			187,492			3,093			60,698			795			245,892
Add back non-Real Estate depreciation and amortization (b)		3,108			-			2,583			-			5,691			3,416			-			5,876			-			9,292
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		-			-			161			-			161			-			-			52			-			52
Exclude straight-line rent adjustment (2)		(1,594	)		-			-			-			(1,594	)		(2,808	)		-			-			-			(2,808	)
Exclude preference payment		(585	)		-			-			-			(585	)		(585	)		-			-			-			(585	)
Adjusted operating expenses		185,500			6,591			73,849			-			252,758			187,515			3,093			66,626			795			251,843
Net Operating Income		163,441			6,320			17,909			-			175,030			158,498			5,664			18,081			3,250			174,165
Interest expense		(91,836	)		(3,929	)		(16,955	)		-			(104,862	)		(104,888	)		(1,265	)		(17,350	)		(1,489	)		(122,462	)
Loss on early extinguishment of debt		(1,396	)		-			(954	)		-			(2,350	)		(620	)		-			-			-			(620	)
Equity in earnings (loss), including impairment of unconsolidated entities		(30,087	)		(5	)		30,338			-			256			16,798			67			(16,437	)		-			294
Gain on disposition of unconsolidated entities		45,263			-			-			-			45,263			-			-			-			-			-
Impairment of unconcolidated entities		(1,693	)		-			-			-			(1,693	)		(15,259	)		-			-			-			(15,259	)
Depreciation and amortization of unconsolidated entities (see above)		(13,293	)		-			13,293			-			-			(11,066	)		-			11,066			-			-
Gain on disposition of rental properties and other investments		-			-			-			1,172			1,172			-			-			-			5,778			5,778
Preferred return on dispositon		-			-			-			-			-			-			-			(731	)		-			(731	)
Impairment of real estate		(23,402	)		-			-			-			(23,402	)		(1,262	)		-			-			-			(1,262	)
Depreciation and amortization - Real Estate Groups (a)		(64,641	)		(1,862	)		(12,654	)		-			(75,433	)		(64,759	)		(787	)		(10,553	)		(1,031	)		(75,556	)
Amortization of mortgage procurement costs - Real Estate Groups (c)		(3,329	)		(118	)		(639	)		-			(3,850	)		(3,306	)		(119	)		(513	)		(79	)		(3,779	)
Straight-line rent adjustment (1) + (2)		3,689			-			-			-			3,689			(4,290	)		-			-			6			(4,284	)
Preference payment		(585	)		-			-			-			(585	)		(585	)		-			-			-			(585	)
Earnings (loss) before income taxes		(17,869	)		406			30,338			1,172			13,235			(30,739	)		3,560			(16,437	)		6,435			(44,301	)
Income tax provision		(6,324	)		-			-			(454	)		(6,778	)		1,737			-			-			(2,486	)		(749	)
Equity in earnings (loss), including impairment of unconsolidated entities		30,087			5			(30,338	)		-			(256	)		(16,798	)		(67	)		16,437			-			(294	)
Earnings (loss) from continuing operations		5,894			411			-			718			6,201			(45,800	)		3,493			-			3,949			(45,344	)
Discontinued operations, net of tax		718			-			-			(718	)		-			3,949			-			-			(3,949	)		-
Net earnings (loss)		6,612			411			-			-			6,201			(41,851	)		3,493			-			-			(45,344	)
Net earnings attributable to noncontrolling interest		(411	)		(411	)		-			-			-			(3,493	)		(3,493	)		-			-			-
Net earnings (loss) attributable to Forest City Enterpirses, Inc.	$	6,201		$	-		$	-		$	-		$	6,201		$	(45,344	)	$	-		$	-		$	-		$	(45,344	)
(a) Depreciation and amortization - Real Estate Groups	$	64,641		$	1,862		$	12,654		$	-		$	75,433		$	64,759		$	787		$	10,553		$	1,031		$	75,556
(b) Depreciation and amortization - Non-Real Estate		3,108			-			2,583			-			5,691			3,416			-			5,876			-			9,292
Total depreciation and amortization	$	67,749		$	1,862		$	15,237		$	-		$	81,124		$	68,175		$	787		$	16,429		$	1,031		$	84,848
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	3,329		$	118		$	639		$	-		$	3,850		$	3,306		$	119		$	513		$	79		$	3,779
(d) Amortization of mortgage procurement costs - Non-Real Estate		-			-			161			-			161			-			-			52			-			52
Total amortization of mortgage procurement costs	$	3,329		$	118		$	800		$	-		$	4,011		$	3,306		$	119		$	565		$	79		$	3,831

18

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

	Year Ended January 31, 2010															Year Ended January 31, 2009
							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	$	1,257,222		$	50,739		$	355,195		$	5,476		$	1,567,154		$	1,280,570		$	56,132		$	380,297		$	17,176		$	1,621,911
Exclude straight-line rent adjustment (1)		(19,681	)		-			-			(12	)		(19,693	)		(6,573	)		-			-			(153	)		(6,726	)
Adjusted revenues		1,237,541			50,739			355,195			5,464			1,547,461			1,273,997			56,132			380,297			17,023			1,615,185
Add interest and other income		54,005			718			2,310			-			55,597			42,417			1,807			5,127			125			45,862
Add equity in earnings (loss), including impairment of unconsolidated entities		(15,053	)		(76	)		15,769			-			792			(35,585	)		(84	)		36,257			-			756
Exclude gain on disposition of unconsolidated entities		(49,761	)		-			49,761			-			-			(1,081	)		-			1,081			-			-
Exclude impairment of unconsolidated entities		36,356			-			(36,356	)		-			-			21,285			-			(21,285	)		-			-
Exclude depreciation and amortization of unconsolidated entities (see below)		45,994			-			(45,994	)		-			-			37,563			-			(37,563	)		-			-
Adjusted total income		1,309,082			51,381			340,685			5,464			1,603,850			1,338,596			57,855			363,914			17,148			1,661,803
Operating expenses		716,571			24,169			259,085			430			951,917			780,798			28,651			272,305			2,399			1,026,851
Add back non-Real Estate depreciation and amortization (b)		13,480			-			14,931			-			28,411			13,356			-			20,641			-			33,997
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		-			-			563			-			563			-			-			221			-			221
Exclude straight-line rent adjustment (2)		(6,451	)		-			-			-			(6,451	)		(6,368	)		-			-			-			(6,368	)
Exclude preference payment		(2,341	)		-			-			-			(2,341	)		(3,329	)		-			-			-			(3,329	)
Adjusted operating expenses		721,259			24,169			274,579			430			972,099			784,457			28,651			293,167			2,399			1,051,372
Net Operating Income		587,823			27,212			66,106			5,034			631,751			554,139			29,204			70,747			14,749			610,431
Interest expense		(350,270	)		(14,761	)		(66,850	)		(2,184	)		(404,543	)		(364,338	)		(11,624	)		(69,757	)		(7,210	)		(429,681	)
Gain (loss) on early extinguishment of debt		36,569			-			744			-			37,313			(2,159	)		(119	)		(51	)		-			(2,091	)
Equity in earnings (loss), including impairment of unconsolidated entities		15,053			76			(15,769	)		-			(792	)		35,585			84			(36,257	)		-			(756	)
Gain on disposition of unconsolidated entities		49,761			-			-			-			49,761			1,081			-			-			-			1,081
Impairment of unconcolidated entities		(36,356	)		-			-			-			(36,356	)		(21,285	)		-			-			-			(21,285	)
Depreciation and amortization of unconsolidated entities (see above)		(45,994	)		-			45,994			-			-			(37,563	)		-			37,563			-			-
Gain on disposition of rental properties and other investments		-			-			-			5,720			5,720			150			-			-			14,405			14,555
Preferred return on dispositon		-			-			-			-			-			-			-			(939	)		-			(939	)
Impairment of real estate		(26,526	)		-			-			(9,775	)		(36,301	)		(1,262	)		-			-			-			(1,262	)
Depreciation and amortization - Real Estate Groups (a)		(253,928	)		(5,274	)		(43,868	)		(1,347	)		(293,869	)		(253,429	)		(3,142	)		(35,720	)		(4,942	)		(290,949	)
Amortization of mortgage procurement costs - Real Estate Groups (c)		(13,974	)		(567	)		(2,126	)		(50	)		(15,583	)		(12,029	)		(502	)		(1,843	)		(418	)		(13,788	)
Straight-line rent adjustment (1) + (2)		13,230			-			-			12			13,242			205			-			-			153			358
Preference payment		(2,341	)		-			-			-			(2,341	)		(3,329	)		-			-			-			(3,329	)
Earnings (loss) before income taxes		(26,953	)		6,686			(15,769	)		(2,590	)		(51,998	)		(104,234	)		13,901			(36,257	)		16,737			(137,655	)
Income tax provision		19,550			-			-			1,005			20,555			30,119			-			-			(6,467	)		23,652
Equity in earnings (loss), including impairment of unconsolidated entities		(15,053	)		(76	)		15,769			-			792			(35,585	)		(84	)		36,257			-			756
Earnings (loss) from continuing operations		(22,456	)		6,610			-			(1,585	)		(30,651	)		(109,700	)		13,817			-			10,270			(113,247	)
Discontinued operations, net of tax		(1,585	)		-			-			1,585			-			10,270			-			-			(10,270	)		-
Net earnings (loss)		(24,041	)		6,610			-			-			(30,651	)		(99,430	)		13,817			-			-			(113,247	)
Net earnings attributable to noncontrolling interest		(6,610	)		(6,610	)		-			-			-			(13,817	)		(13,817	)		-			-			-
Net loss attributable to Forest City Enterpirses, Inc.	$	(30,651	)	$	-		$	-		$	-		$	(30,651	)	$	(113,247	)	$	-		$	-		$	-		$	(113,247	)
(a) Depreciation and amortization - Real Estate Groups	$	253,928		$	5,274		$	43,868		$	1,347		$	293,869		$	253,429		$	3,142		$	35,720		$	4,942		$	290,949
(b) Depreciation and amortization - Non-Real Estate		13,480			-			14,931			-			28,411			13,356			-			20,641			-			33,997
Total depreciation and amortization	$	267,408		$	5,274		$	58,799		$	1,347		$	322,280		$	266,785		$	3,142		$	56,361		$	4,942		$	324,946
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	13,974		$	567		$	2,126		$	50		$	15,583		$	12,029		$	502		$	1,843		$	418		$	13,788
(d) Amortization of mortgage procurement costs - Non-Real Estate		-			-			563			-			563			-			-			221			-			221
Total amortization of mortgage procurement costs	$	13,974		$	567		$	2,689		$	50		$	16,146		$	12,029		$	502		$	2,064		$	418		$	14,009

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 year ended January 31, 2010 was $30,651,000 versus $113,247,000 for the year ended January 31, 2009. Although we have substantial recurring revenue sources from our properties, we also enter into significant one-time transactions, which could create substantial variances in net earnings (loss) between periods. This variance to the prior year is primarily attributable to the following increases, which are net of tax and noncontrolling interest:

• $30,462,000 ($49,761,000, pre-tax) related to the 2009 gains on disposition of our unconsolidated investments inClassic Residence by Hyattproperties, supported-living apartments in Teaneck, New Jersey, Chevy Chase, Maryland and Yonkers, New York,Clarkwood andGranada Gardens, apartment communities in Warrensville Heights, Ohio andBoulevard Towers, an apartment community in Amherst, New York;

• $24,123,000 ($39,404,000, pre-tax, which includes $795,000 for unconsolidated entities) primarily related to the 2009 early extinguishment of nonrecourse mortgage debt at a consolidated retail project andGladden Farms,a land development project located in Marana, Arizona and the gain on early extinguishment of debt on the exchange of a portion of our puttable equity-linked senior notes due October 15, 2011 for a new issue of puttable equity-linked senior notes due October 15, 2014;

• $13,620,000 ($22,247,000, pre-tax, which includes $304,000 for unconsolidated entities) of decreased write-offs of abandoned development projects in 2009 compared to 2008;

• $13,181,000 ($21,530,000, pre-tax) related to an increase in income recognized on the sale of state and federal Historic Preservation Tax Credits, Brownfield Tax Credits and New Market Tax Credits;

• $12,791,000 ($20,894,000, pre-tax) related to the change in fair market value of derivatives between the comparable periods, which was marked to market as a reduction of interest expense due to derivatives not qualifying for hedge accounting;

• $7,554,000 ($12,434,000, pre-tax) related to the reduction in fair value of the Denver Urban Renewal Authority (“DURA”) purchase obligation and fee, that resulted from the Lehman Brothers, Inc. (“Lehman”) bankruptcy in 2008;

• $6,732,000 ($10,996,000, pre-tax, which includes $770,000 for unconsolidated entities) related to a reinstatement by the United States Department of Housing and Urban Development of certain replacement reserves previously written off at three of our residential properties located in Michigan;

• $2,784,000 ($4,548,000, pre-tax) related the 2009 gain on disposition ofGrand Avenue, a specialty retail center in Queens, New York;

• $2,203,000 ($3,599,000, pre-tax) related to a gain recognized in 2009 for insurance proceeds received related to fire damage of an apartment building in excess of the net book value of the damaged asset;

• $1,860,000 ($3,031,000, pre-tax) related to the 2008 participation payments on the refinancing of350 Massachusetts Avenue, an unconsolidated office building andJackson Building,a consolidated office building, both located in Cambridge, Massachusetts;

• $1,467,000 ($2,396,000, pre-tax) related to the 2009 net gain on an industrial land sale atMesa del Solin Albuquerque, New Mexico; and

• $1,293,000 ($2,500,000, pre-tax decrease) related to a decrease in allocated losses from our equity investment in The Nets.

These increases were partially offset by the following decreases, net of tax and noncontrolling interests:

• $30,677,000 ($50,110,000, pre-tax) related to the 2009 increase in impairment charges of consolidated (including discontinued properties) and unconsolidated entities;

• $6,717,000 ($9,426,000, pre-tax) primarily related to military housing fee income from the management and development of units in Hawaii, Illinois, Washington and Colorado;

20

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

• $8,159,000 ($13,297,000, pre-tax) related to the 2008 gains on disposition of two supported-living apartment communities,Sterling Glen of Lynbrook,in Lynbrook, New York and Sterling Glen of Rye Brook in Rye Brook, New York;

• $2,448,000 ($3,998,000, pre-tax) related to the 2009 participation payment on the refinancing of45/75 Sidney;

• $2,417,000 ($3,978,000, pre-tax) related to the 2008 lease termination fee income at an office building in Cleveland, Ohio; and

• $2,035,000 ($3,350,000, pre-tax) related to the 2008 gain on the sale of an ownership interest in a parking management company.

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 January 31, 2010 was $186,190,000 compared to $174,044,000 for the three months ended January 31, 2009, a 7.0% increase. NOI for the year ended January 31, 2010 was $670,626,000 compared to $637,926,000 for the year ended January 31, 2009, a 5.1% increase. A reconciliation of NOI to the most comparable GAAP measure, net earnings (loss), is presented on pages 18-19. A reconciliation of NOI to net earnings (loss) for each strategic business unit can be found on pages 46-57.

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 January 31, 2010 was $195,730,000 compared to $189,425,000 for the three months ended January 31, 2009, a 3.3% increase. NOI for the year ended January 31, 2010 was $708,836,000 compared to $687,428,000 for the year ended January 31, 2009, a 3.1% increase.

Comparable NOI decreased 0.5% for the three months ended January 31, 2010 compared to the prior year. Retail and hotel comparable NOI decreased 3.9% and 1.1%, respectively, while office comparable NOI increased 4.3% from the prior year and our residential portfolio decreased 2.7%. Comparable NOI decreased 0.8% for the year ended January 31, 2010 compared to the prior year. Retail and hotel comparable NOI decreased 3.9% and 9.9%, respectively, while office comparable NOI increased 5.4% from the prior year and our residential portfolio decreased 2.8%.

Stabilized Pro-rata NOI — Including the expected NOI for the twelve months following stabilization for the properties that were opened, expanded or acquired through January 31, 2010, less the actual annual NOI of property disposals through January 31, 2010, NOI for Real Estate Groups would be approximately $736,000,000 for the year ended January 31, 2010. This amount includes Commercial Group land sales of $4,940,000 and income recognition on the sale of state and federal historic rehabilitation and new market tax credits of $32,698,000, military housing income of $38,771,000 and development project write-offs of $26,888,000.

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, amortization of mortgage procurement costs and deferred income taxes; iv) preferred payment which is classified as noncontrolling interest expense on our Consolidated Statement of Operations; v) impairment of real estate (net of tax); vi) extraordinary items (net of tax); and vii) cumulative or

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Supplemental Operating Information

retrospective effect of change in accounting principle (net of tax). Unlike the real estate segments, EBDT for the Nets segment equals net earnings.

EBDT is reconciled to net earnings (loss), the most comparable financial measure calculated in accordance with GAAP, on page 24. The adjustment to recognize rental revenues and rental expenses on the straight-line method is excluded because it is management’s opinion that rental revenues and expenses should be recognized when due from the tenants or due to the landlord. We exclude depreciation and amortization expense related to real estate operations from EBDT because we believe the values of our properties, in general, have appreciated over time in excess of their original cost. Deferred taxes from real estate operations, which are the result of timing differences of certain net expense items deducted in a future year for federal income tax purposes, are excluded until the year in which they are reflected in our current tax provision. The 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.

Our EBDT for the three months ended January 31, 2010 increased by $7,905,000 or 11.2% to $78,407,000 from $70,502,000 for the three months ended January 31, 2009. Our Commercial and Residential Segments combined provided a pre-tax EBDT increase of $27,877,000. This is primarily due to the change in fair market value between the comparable periods for our forward swaps which were marked to market through interest expense of $18,692,000, increased income recognized on the sale of state and federal Historic Preservation and New Market tax credits of $17,288,000, income from Housing and Urban Development (HUD) replacement reserve of $10,996,000 and decreased write-offs of abandoned development projects of $5,270,000. These increases in the portfolio were partially offset by a pre-tax EBDT decrease due to decreased Commercial outlot sales of $11,456,000 and $2,056,000 in reduced EBDT from properties sold. The remainder of the variance is related to nonrecurring fluctuations in the mature portfolio.

Our Land Segment provided a pre-tax EBDT decrease of $7,325,000 primarily due to lower land sales.

Reporting a larger share of losses for The Nets further decreased pre-tax EBDT by $4,539,000. EBDT was unfavorably impacted by a smaller tax benefit of $8,447,000.

Our EBDT for the year ended January 31, 2010 increased by $82,169,000 or 37.5% to $301,106,000 from $218,937,000 for the year ended January 31, 2009. Our Commercial and Residential Segments combined provided a pre-tax EBDT increase of $92,034,000. This is primarily the result of decreased interest expense on our mature portfolio of $21,484,000, the ramp up of new properties of $6,351,000, a gain on early extinguishment of nonrecourse mortgage debt of $27,073,000, primarily at an underperforming retail project, decreased write-offs of abandoned development projects of $23,078,000, increased income recognized on the sale of state and federal Historic Preservation, Brownfield and New Market tax credits of $21,530,000, the change in fair market value between the comparable periods for our forward swaps which were marked to market through interest expense of $19,543,000 and income from Housing and Urban Development (HUD) replacement reserve of $10,996,000. These increases in the portfolio were partially offset by a pre-tax EBDT decrease due to decreased Commercial outlot sales of $12,363,000, the 2008 lease termination fee income which did not recur of $12,228,000, the decrease in military housing of $8,609,000 and $3,977,000 in reduced EBDT from properties sold.

In addition, our Land Segment provided a pre-tax EBDT increase of $6,227,000. This increase includes a 2008 reduction in fair value of the DURA purchase obligation and fee that resulted from the Lehman bankruptcy of $12,434,000 in 2008, and a gain on early extinguishment of nonrecourse mortgage debt of $11,340,000. These increases were partially offset by decreased EBDT from land operations of $17,547,000, reflecting the continued deterioration of the traditional land business during 2009.

Corporate pre-tax EBDT decreased $11,442,000. This pre-tax EBDT decrease includes increased corporate interest expense of $16,824,000 (which includes the non-cash interest of the retrospective adoption of accounting guidance for convertible instruments in 2009 only), partially offset by reduced expenses mainly due to cost savings initiatives.

Reporting a larger share of losses for the Nets provided a pre-tax EBDT decrease of $2,500,000. EBDT was unfavorably impacted by a smaller tax benefit of $2,150,000 compared to the prior year.

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EBDT Bridge 2009 Actual vs. 2008 Actual Variances are pre-tax in millions with taxes shown separately

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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 January 31,						Year Ended January 31,
	2010			2009			2010			2009
	(in thousands)						(in thousands)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	6,201		$	(45,344	)	$	(30,651	)	$	(113,247	)
Depreciation and amortization - Real Estate Groups (4)		75,433			75,556			293,869			290,949
Amortization of mortgage procurement costs - Real Estate Groups (4)		3,850			3,779			15,583			13,788
Deferred income tax expense - Real Estate Groups (5)		(10,558	)		(1,082	)		(12,852	)		(6,348	)
Deferred income tax expense - Non-Real Estate Groups: (5)
Gain on disposition of other investments		454			428			454			486
Current income tax expense on non-operating earnings: (5)
Gain on disposition included in discontinued operations		-			20,439			754			20,439
Gain on disposition of unconsolidated entities		27,471			-			27,674			506
Straight-line rent adjustment(2)		(3,689	)		4,284			(13,242	)		(358	)
Preference payment(3)		585			585			2,341			3,329
Preferred return on disposition		-			731			-			939
Impairment of real estate		23,402			1,262			26,526			1,262
Impairment of unconsolidated entities		1,693			15,259			36,356			21,285
Gain on disposition of unconsolidated entities		(45,263	)		-			(49,761	)		(1,081	)
Gain on disposition of other investments		-			-			-			(150	)
Discontinued operations:(1)
Gain on disposition of rental properties		(1,172	)		(5,778	)		(5,720	)		(14,405	)
Impairment of real estate		-			-			9,775			-
Retrospective adoption of accounting guidance for convertible debt instruments		-			383			-			1,543
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)	$	78,407		$	70,502		$	301,106		$	218,937

(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.

	Depreciation and Amortization												Amortization of Mortgage Procurement Costs
	Three Months Ended						Year Ended						Three Months Ended						Year Ended
	January 31,						January 31,						January 31,						January 31,
	2010			2009			2010			2009			2010			2009			2010			2009
Full Consolidation	$	67,749		$	68,175		$	267,408		$	266,785		$	3,329		$	3,306		$	13,974		$	12,029
Non-Real Estate		(3,108	)		(3,416	)		(13,480	)		(13,356	)		-			-			-			-
Real Estate Groups Full Consolidation		64,641			64,759			253,928			253,429			3,329			3,306			13,974			12,029
Real Estate Groups related to noncontrolling interest		(1,862	)		(787	)		(5,274	)		(3,142	)		(118	)		(119	)		(567	)		(502	)
Real Estate Groups Unconsolidated		12,654			10,553			43,868			35,720			639			513			2,126			1,843
Real Estate Groups Discontinued Operations		-			1,031			1,347			4,942			-			79			50			418
Real Estate Groups Pro-Rata Consolidation	$	75,433		$	75,556		$	293,869		$	290,949		$	3,850		$	3,779		$	15,583		$	13,788

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Supplemental Operating Information

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

		Three Months Ended January 31,						Year Ended January 31,
		2010			2009			2010			2009
		(in thousands)						(in thousands)
(A)	Operating earnings
	Current	$	(12,518	)	$	(12,543	)	$	(22,258	)	$	(28,093	)
	Deferred		11,021			17,507			7,797			6,607
			(1,497	)		4,964			(14,461	)		(21,486	)
(B)	Impairment of real estate
	Deferred		(9,077	)		(488	)		(10,288	)		(488	)
	Deferred - Unconsolidated entities		(656	)		(5,930	)		(14,100	)		(8,258	)
			(9,733	)		(6,418	)		(24,388	)		(8,746	)
(C)	Gain on disposition of other investments
	Current - Non-Real Estate Groups		-			-			-			-
	Deferred - Non-Real Estate Groups		-			-			-			58
			-			-			-			58
(D)	Gain on disposition of unconsolidated entities
	Current		27,471			-			27,674			506
	Deferred		(9,917	)		(283	)		(8,375	)		(451	)
			17,554			(283	)		19,299			55
	Subtotal (A) (B) (C) (D)
	Current		14,953			(12,543	)		5,416			(27,587	)
	Deferred		(8,629	)		10,806			(24,966	)		(2,532	)
	Income tax expense		6,324			(1,737	)		(19,550	)		(30,119	)
(E)	Discontinued operations
	Operating earnings
	Current		-			236			94			(400	)
	Deferred		-			17			474			1,301
			-			253			568			901
	Gain on disposition of rental properties
	Current		-			20,439			754			20,439
	Deferred		-			(18,634	)		1,010			(15,301	)
			-			1,805			1,764			5,138
	Gain on disposition of Lumber Group
	Current		-			-			-			-
	Deferred		454			428			454			428
			454			428			454			428
	Impairment of real estate
	Current		-			-			-			-
	Deferred		-			-			(3,791	)		-
			-			-			(3,791	)		-
			454			2,486			(1,005	)		6,467
	Grand Total (A) (B) (C) (D) (E)
	Current		14,953			8,132			6,264			(7,548	)
	Deferred		(8,175	)		(7,383	)		(26,819	)		(16,104	)
		$	6,778		$	749		$	(20,555	)	$	(23,652	)
	Recap of Grand Total:
	Real Estate Groups
	Current	$	15,766		$	430		$	14,740		$	(140	)
	Deferred		(10,558	)		(1,082	)		(12,852	)		(6,348	)
			5,208			(652	)		1,888			(6,488	)
	Non-Real Estate Groups
	Current		(813	)		7,702			(8,476	)		(7,408	)
	Deferred		2,383			(6,301	)		(13,967	)		(9,756	)
			1,570			1,401			(22,443	)		(17,164	)
	Grand Total	$	6,778		$	749		$	(20,555	)	$	(23,652	)

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Supplemental Operating Information

Retail Lease Expirations as of January 31, 2010

													AVERAGE
													BASE
	NUMBER OF		SQUARE FEET		PERCENTAGE			NET		PERCENTAGE			RENT PER
EXPIRATION	EXPIRING		OF EXPIRING		OF TOTAL			BASE RENT		OF TOTAL			SQUARE FEET
YEAR	LEASES		LEASES(3)		LEASED GLA(1)			EXPIRING(2)		BASE RENT			EXPIRING(3)
2010		262		645,973		5.08	%		16,112,035		5.75	%		31.34
2011		343		1,205,116		9.48			28,533,272		10.19			28.70
2012		247		927,210		7.29			22,617,851		8.08			28.26
2013		236		1,024,225		8.05			25,244,672		9.01			27.71
2014		233		1,078,570		8.48			22,539,251		8.05			27.14
2015		170		770,188		6.06			18,011,467		6.43			27.33
2016		224		1,197,226		9.42			32,648,867		11.66			37.23
2017		149		1,014,189		7.98			22,302,602		7.96			25.85
2018		166		848,368		6.67			18,481,659		6.60			23.89
2019		111		984,031		7.74			21,270,318		7.59			23.35
Thereafter		100		3,020,665		23.75			52,308,693		18.68			20.55
Total		2,241		12,715,761		100.00	%	$	280,070,687		100.00	%	$	26.41

(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.

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Office Lease Expirations as of January 31, 2010

													AVERAGE
													BASE
	NUMBER OF		SQUARE FEET		PERCENTAGE			NET		PERCENTAGE			RENT PER
EXPIRATION	EXPIRING		OF EXPIRING		OF TOTAL			BASE RENT		OF TOTAL			SQUARE FEET
YEAR	LEASES		LEASES(3)		LEASED GLA(1)			EXPIRING(2)		BASE RENT			EXPIRING(3)
2010		99		1,209,822		10.76	%	$	24,285,735		7.59	%	$	23.76
2011		69		734,187		6.53			17,207,639		5.37			26.25
2012		81		1,128,482		10.04			32,087,579		10.02			30.20
2013		75		1,179,469		10.49			27,184,470		8.49			24.52
2014		44		888,349		7.90			22,791,675		7.12			30.13
2015		12		258,801		2.30			4,693,752		1.47			19.17
2016		19		401,476		3.57			9,084,751		2.84			24.85
2017		18		265,156		2.36			7,953,622		2.48			32.43
2018		17		1,060,998		9.44			30,255,361		9.45			32.42
2019		17		689,141		6.13			16,450,908		5.14			25.77
Thereafter		36		3,427,531		30.48			128,174,483		40.03			39.18
Total		487		11,243,412		100.00	%	$	320,169,975		100.00	%	$	30.93

(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.

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Schedule of Significant Retail Tenants as of January 31, 2010

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

	NUMBER		LEASED		PERCENTAGE OF
	OF		SQUARE		TOTAL RETAIL
TENANT	LEASES		FEET		SQUARE FEET
AMC Entertainment, Inc.		6		515,097		4.05	%
Bass Pro Shops, Inc.		3		510,855		4.02
Regal Entertainment Group		5		381,461		3.00
TJX Companies		10		313,861		2.47
The Gap		24		305,756		2.40
The Home Depot		2		282,000		2.22
Dick’s Sporting Goods		5		257,486		2.02
Abercrombie & Fitch Stores, Inc.		30		223,567		1.76
The Limited		36		221,684		1.74
Footlocker, Inc.		37		142,848		1.12
Pathmark Stores, Inc.		2		123,500		0.97
American Eagle Outfitters		18		104,067		0.83
Subtotal		178		3,382,182		26.60
All Others		2,063		9,333,579		73.40
Total		2,241		12,715,761		100.00	%

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Supplemental Operating Information

Schedule of Significant Office Tenants as of January 31, 2010

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

	LEASED		PERCENTAGE OF
	SQUARE		TOTAL OFFICE
TENANT	FEET		SQUARE FEET
City of New York		890,185		7.92	%
Millennium Pharmaceuticals, Inc.		628,934		5.59
U.S. Government		620,402		5.52
Morgan Stanley & Co.		444,685		3.96
Securities Industry Automation Corp.		433,971		3.86
Wellchoice, Inc.		392,514		3.49
JP Morgan Chase & Co.		385,254		3.43
Forest City Enterprises, Inc.(1)		366,786		3.26
Bank of New York		323,043		2.87
National Grid		254,034		2.26
Alkermes, Inc.		210,248		1.87
Clearbridge Advisors, LLC, a Legg Mason Company		193,249		1.72
Covington & Burling, LLP		160,565		1.43
Seyfarth Shaw, LLP		96,909		0.86
Subtotal		5,400,779		48.04
All Others		5,842,633		51.96
Total		11,243,412		100.00	%

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

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Supplemental Operating Information

Development Pipeline
January 31, 2010
2009 Openings and Acquisitions (3)

														Cost at FCE
			Date				Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share		Sq. ft./		Gross
		Dev (D)	Opened /	FCE Legal			FCE % (a)			Consolidation		at 100%		(Non-GAAP) (c)		No. of		Leasable
Property	Location	Acq (A)	Acquired	Ownership % (a)			(1)			(GAAP) (b)		(2)		(1) X (2)		Units		Area
										(in millions)
Retail Centers:
Promenade in Temecula Expansion	Temecula, CA	D	Q1-09		75.0	%		100.0	%	$	107.8	$	107.8	$	107.8		127,000		127,000
East River Plaza (Costco) (f) (g)	Manhattan, NY	D	Q4-09		35.0	%		50.0	%		0.0		0.0		0.0		110,000		110,000
										$	107.8	$	107.8	$	107.8		237,000		237,000
Residential:
North Church Towers (d)	Parma Heights, OH	A	Q3-09		100.0	%		100.0	%	$	5.6	$	5.6	$	5.6		399
80 DeKalb (e)	Brooklyn, NY	D	Q4-09/10		80.0	%		100.0	%		163.3		163.3		163.3		365
										$	168.9	$	168.9	$	168.9		764
Total Openings and Acquisitions										$	276.7	$	276.7	$	276.7
Residential Phased-In Units (e) (f):																Opened in ‘09 / Total
Cobblestone Court	Painesville, OH	D	2006-09		50.0	%		50.0	%	$	0.0	$	30.3	$	15.2	96/400
Sutton Landing	Brimfield, OH	D	2007-09		50.0	%		50.0	%		0.0		15.9		8.0	36/216
Stratford Crossing	Wadsworth, OH	D	2007-10		50.0	%		50.0	%		0.0		25.3		12.7	36/348
Total(h)										$	0.0	$	71.5	$	35.9	168/964

See footnotes on page 33.

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Development Pipeline
January 31, 2010
Under Construction (7)

														Cost at FCE
							Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share		Sq. ft./			Gross
		Dev (D)	Anticipated	FCE Legal			FCE % (a)			Consolidation		at 100%		(Non-GAAP) (c)		No. of			Leasable			Lease
Property	Location	Acq (A)	Opening	Ownership % (a)			(1)			(GAAP) (b)		(2)		(1) X (2)		Units			Area			Commitment %
										(in millions)
Retail Centers:
East River Plaza (Total including Costco) (f) (i)	Manhattan, NY	D	2010		35.0	%		50.0	%	$	0.0	$	398.1	$	199.1		527,000			527,000			93	%
Village at Gulfstream Park	Hallandale Beach, FL	D	Q1-10		50.0	%		50.0	%		204.2		204.2		102.1		510,000			510,000	(m)		70	%
Ridge Hill (e)	Yonkers, NY	D	2011/2012		70.0	%		100.0	%		798.7		798.7		798.7		1,336,000			1,336,000	(n)		28	%
										$	1,002.9	$	1,401.0	$	1,099.9		2,373,000			2,373,000
Office:
Waterfront Station - East 4th & West 4th Buildings	Washington, D.C.	D	Q1-10		45.0	%		45.0	%	$	326.7	$	326.7	$	147.0		631,000	(o)					97	%
Residential:
Presidio Landmark	San Francisco, CA	D	Q3-10		100.0	%		100.0	%	$	110.9	$	110.9	$	110.9		161
Beekman (e)	Manhattan, NY	D	Q1-11/12		49.0	%		70.0	%		875.7		875.7		613.0		904
										$	986.6	$	986.6	$	723.9		1,065
Arena:
Barclays Center (f) (j)	Brooklyn, NY	D	2012		23.3	%		23.3	%	$	0.0	$	911.1	$	212.3		670,000		18,000 seats		(p)
Total Under Construction (k)										$	2,316.2	$	3,625.4	$	2,183.1
Residential Phased-In Units (e) (f):																Under Const./Total
Stratford Crossing (l)	Wadsworth, OH	D	2007-10		50.0	%		50.0	%	$	0.0	$	25.3	$	12.7	96/348
Fee Development:																Sq. ft.
Las Vegas City Hall	Las Vegas, NV	D	Q1-12		-	(q)		-	(q)	$	0.0	$	146.2	$	0.0	270,000

See footnotes on page 33.

Military Housing – see footnote r.

31

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline
January 31, 2010

Equity Requirements for Projects Under Construction⁽¹⁾

			Less							Plus
			Unconsolidated			Full		Less		Unconsolidated		Pro-Rata
			Investments			Consolidation		Noncontrolling		Investments		Consolidation
	100%		at 100%			(GAAP)(b)		Interest		at Pro Rata		(Non-GAAP)(c)
	(dollars in millions)
Total Cost Under Construction	$	3,625.4	$	1,309.2		$	2,316.2	$	544.5	$	411.4	$	2,183.1
Total Loan Draws and Other Sources at Completion(2)		2,313.2		646.2			1,667.0		381.6		226.6		1,512.0
Net Equity at Completion	$	1,312.2	$	663.0		$	649.2	$	162.9	$	184.8	$	671.1
Net Costs Incurred to Date	$	2,144.4	$	543.2		$	1,601.2	$	423.4	$	233.9	$	1,411.7
Loan Draws and Other Sources to Date		987.4		(73.7	)		1,061.1		274.2		49.1		836.0
Net Equity to Date	$	1,157.0	$	616.9		$	540.1	$	149.2	$	184.8	$	575.7
% of Total Equity		88%					83%						86%
Remaining Costs	$	1,481.0	$	766.0		$	715.0	$	121.1	$	177.5	$	771.4
Remaining Loan Draws and Other Sources(3)		1,325.8		719.9			605.9		107.4		177.5		676.0
Remaining Equity	$	155.2	$	46.1		$	109.1	$	13.7	$	-	$	95.4
% of Total Equity		12%					17%						14%

(1)	This schedule includes only the seven properties listed on page 31. This does not include costs associated with phased-in units, operating property renovations and military housing.
(2)	“Other Sources” includes third party subsidies, tax credit proceeds and outlot land sales.
(3)	Three of the loan commitments require specific leasing hurdles to be achieved prior to drawing the final amount of the loan. The Company estimates that approximately $141.3 million at 100% and at full consolidation, and $76.9 million at pro-rata consolidation of loan commitments are at risk should these leasing hurdles not be achieved.

Land Held for Development or Sale

	Gross		Saleable		Option
Location	Acres(4)		Acres(5)		Acres(6)
Mesa del Sol - Albuquerque, NM		3,023		2,336		5,731
Florida		1,654		1,414		-
Carolinas		1,344		879		788
Ohio		1,119		713		470
Texas		1,054		796		-
Arizona		967		551		-
Stapleton - Denver, CO		200		136		1,474
Central Station - Chicago, IL		30		30		-
Other		1,152		901		-
Total		10,543		7,756		8,463

(4)	Represent all acres owned including those used for roadways, open spaces and parks.
(5)	Saleable acres represent the total of all acres owned and available for sales. It might be the intent of the Land Group to further develop some of the acres into completed sublots prior to sale.
(6)	Option acres are those acres that the Land Development group has a formal option to acquire the property. Typically these options are in the form of purchase agreements with contingencies for the satisfaction of due diligence reviews.

32

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline

January 31, 2010 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 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)	The Company exchanged its 50% ownership interest in Boulevard Towers, an apartment community located in Amherst, New York, for 100% ownership in North Church Towers, in a nonmonetary exchange.
(e)	Phased-in openings. Costs are representative of the total project.
(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)	See the Under Construction pipeline for cost details for the total center.
(h)	The difference between the full consolidation cost amount (GAAP) of $0.0 million to the Company’s pro-rata share (a non-GAAP measure) of $35.9 million consists of the Company’s share of cost for unconsolidated investments of $35.9 million.
(i)	Phased opening includes the total cost and square footage of the center, including Costco which opened in the fourth quarter. The cost of the property also includes construction of the 1,248-space parking garage and structural upgrades to accommodate a possible future residential project above the retail center.
(j)	Upon closing of the strategic partnership with an affiliate of Onexim Group, the Company’s legal and pro-rata ownership will increase to approximately 27%.
(k)	The difference between the full consolidation cost amount (GAAP) of $2,316.2 million to the Company’s pro-rata share (a non-GAAP measure) of $2,183.1 million consists of a reduction to full consolidation for noncontrolling interest of $544.5 million of cost and the addition of its share of cost for unconsolidated investments of $411.4 million.
(l)	The difference between the full consolidation cost amount (GAAP) of $0.0 million to the Company’s pro-rata share (a non-GAAP measure) of $12.7 million consists of the Company’s share of cost for unconsolidated investments of $12.7 million.
(m)	Includes 89,000 square feet of office space. Excluding this office space from the calculation of the preleased percentage would result in the retail space being 85% preleased. In addition, includes 35,000 square feet site for Crate & Barrel, which opened Q4-09. The remainder of the center opened on February 11, 2010.
(n)	Includes 156,000 square feet of office space.
(o)	Includes 85,000 square feet of retail space.
(p)	The Nets, a member of the NBA, has a 37 year license agreement to use the arena.
(q)	This is a fee development project, owned by the City of Las Vegas. Therefore, these costs are not included on the Company’s balance sheet.
(r)	Below is a summary of our equity method investments for Military Housing Development projects. The Company provides development, construction, and management services for these projects and receives agreed upon fees for these services. (See pages 14-15 for net fee revenue included in NOI.)

		Anticipated	FCE		Cost at Full		Total Cost
Property	Location	Opening	Pro-Rata %		Consolidation		at 100%		No. of Units
					(in millions)
Military Housing —Under Construction (7)
Navy Midwest	Chicago, IL	2006-2010	*		$	0.0	$	248.8		1,658
Pacific Northwest Communities	Seattle, WA	2007-2010	*			0.0		280.5		2,986
Midwest Millington	Memphis, TN	2008-2010	*	��		0.0		37.0		318
Marines, Hawaii Increment II	Honolulu, HI	2007-2011	*			0.0		293.3		1,175
Navy, Hawaii Increment III	Honolulu, HI	2007-2011	*			0.0		535.1		2,520
Air Force Academy	Colorado Springs, CO	2007-2013	50.0%			0.0		69.5		427
Hawaii Phase IV	Kaneohe, HI	2007-2014	*			0.0		364.0		917
Total Military Housing Under Construction					$	0.0	$	1,828.2		10,001

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

33

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Debt for Projects under Development

We use nonrecourse mortgage debt for the financing of our development pipeline. We draw on these financings to partially fund the cost incurred with the development of our real estate. As of January 31, 2010, the detail of how much is outstanding compared to the total commitment under the financing is as follows:

					Plus
	Full		Less		Unconsolidated		Pro-Rata
	Consolidation		Noncontrolling		Investments at		Consolidation
	(GAAP)		Interest		Pro-Rata		(Non-GAAP)
	(in thousands)
Outstanding
Fixed	$	-	$	-	$	43,101	$	43,101
Variable
Taxable		1,059,600		292,228		97,762		865,134
Tax-Exempt		203,900		61,986		20,000		161,914
Total outstanding on projects under development(1)	$	1,263,500	$	354,214	$	160,863	$	1,070,149
Commitment
Fixed	$	-	$	-	$	44,130	$	44,130
Variable
Taxable		1,653,239		424,647		123,358		1,351,950
Tax-Exempt		203,900		61,986		20,000		161,914
Total commitment	$	1,857,139	$	486,633	$	187,488	$	1,557,994

(1) Proceeds from outstanding debt of $47,305 and $42,785, at full and pro-rata consolidation, respectively, described above is recorded as restricted cash 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.

Non-Recourse Mortgage Financings

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.

We use taxable and tax-exempt nonrecourse debt for our real estate projects. For those real estate projects financed with taxable debt, we generally seek long-term, fixed-rate financing for those operating projects whose loans mature within the next 12 months or are projected to open and achieve stabilized operations during that same time frame. However, due to the limited availability of long-term fixed rate mortgage debt based upon current market conditions, we are attempting to extend maturities with existing lenders at current market terms. For real estate projects financed with tax-exempt debt, we generally utilize variable-rate debt. For construction loans, we generally pursue variable-rate financings with maturities ranging from two to five years.

We are actively working to refinance and/or extend the maturities of the nonrecourse debt that are coming due in the next 24 months. During the year ended January 31, 2010, we completed the following financings:

					Plus
			Less		Unconsolidated
	Full		Noncontrolling		Investments at		Pro-Rata
Purpose of Financing	Consolidation		Interest		Pro-Rata		Consolidation
	(in thousands)
Refinancings	$	277,841	$	62,031	$	97,511	$	313,321
Loan extensions/additional fundings		1,285,303		87,064		177,148		1,375,387
	$	1,563,144	$	149,095	$	274,659	$	1,688,708

34

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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

As of January 31, 2010

	Year Ending January 31, 2011												Year Ending January 31, 2012
							Plus												Plus
				Less			Unconsolidated									Less			Unconsolidated
	Full			Noncontrolling			Investments at			Pro-Rata			Full			Noncontrolling			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	251,132		$	15,269		$	25,191		$	261,054		$	355,293		$	4,183		$	72,906		$	424,016
Weighted average rate		7.05	%		6.49	%		7.02	%		7.08	%		7.03	%		5.10	%		6.29	%		6.92	%
Variable:
Variable-rate debt		598,942			55,208			119,578			663,312			517,372			177,113			69,118			409,377
Weighted average rate		3.72	%		4.75	%		1.71	%		3.27	%		4.19	%		4.50	%		3.28	%		3.91	%
Tax-Exempt		-			-			3,305			3,305			132,430			67			-			132,363
Weighted average rate		-	%		-	%		1.57	%		1.57	%		2.60	%		3.70	%		-	%		2.60	%
Total variable-rate debt		598,942			55,208			122,883			666,617			649,802			177,180			69,118			541,740
Total Nonrecourse Mortgage Debt	$	850,074		$	70,477		$	148,074		$	927,671		$	1,005,095		$	181,363		$	142,024		$	965,756
Weighted Average Rate		4.70	%		5.12	%		2.61	%		4.34	%		4.98	%		4.51	%		4.83	%		5.05	%
	Year Ending January 31, 2013												Year Ending January 31, 2014
							Plus												Plus
				Less			Unconsolidated									Less			Unconsolidated
	Full			Noncontrolling			Investments at			Pro-Rata			Full			Noncontrolling			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	331,624		$	7,573		$	28,758		$	352,809		$	769,734		$	15,490		$	41,186		$	795,430
Weighted average rate		5.99	%		6.22	%		6.55	%		6.03	%		5.84	%		5.59	%		5.80	%		5.84	%
Variable:
Variable-rate debt		643,687			72,367			4,932			576,252			46,411			-			1,466			47,877
Weighted average rate		5.12	%		2.58	%		3.20	%		5.42	%		6.05	%		-	%		2.51	%		5.94	%
Tax-Exempt		204,616			62,057			-			142,559			91,565			77			-			91,488
Weighted average rate		2.47	%		2.47	%		-	%		2.47	%		1.52	%		3.68	%		-	%		1.52	%
Total variable-rate debt		848,303			134,424			4,932			718,811			137,976			77			1,466			139,365
Total Nonrecourse Mortgage Debt	$	1,179,927		$	141,997		$	33,690		$	1,071,620		$	907,710		$	15,567		$	42,652		$	934,795
Weighted Average Rate		4.90	%		2.73	%		6.06	%		5.23	%		5.41	%		5.58	%		5.69	%		5.42	%

35

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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

As of January 31, 2010

	Year Ending January 31, 2015												Thereafter
							Plus												Plus
				Less			Unconsolidated									Less			Unconsolidated
	Full			Noncontrolling			Investments at			Pro-Rata			Full			Noncontrolling			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	525,140		$	68,506		$	139,918		$	596,552		$	1,821,006		$	109,386		$	628,774		$	2,340,394
Weighted average rate		5.99	%		5.79	%		5.21	%		5.83	%		5.89	%		5.99	%		5.76	%		5.85	%
Variable:
Variable-rate debt		12,415			-			39,038			51,453			639,999			-			13,980			653,979
Weighted average rate		1.43	%		-	%		2.97	%		2.60	%		6.40	%		-	%		1.18	%		6.29	%
Tax-Exempt		815			82			-			733			532,089			21,851			157,057			667,295
Weighted average rate		3.70	%		3.68	%		-	%		3.70	%		1.60	%		2.76	%		1.34	%		1.50	%
Total variable-rate debt		13,230			82			39,038			52,186			1,172,088			21,851			171,037			1,321,274
Total Nonrecourse Mortgage Debt	$	538,370		$	68,588		$	178,956		$	648,738		$	2,993,094		$	131,237		$	799,811		$	3,661,668
Weighted Average Rate		5.88	%		5.78	%		4.72	%		5.57	%		5.24	%		5.45	%		4.81	%		5.14	%
	Total
							Plus
				Less			Unconsolidated
	Full			Noncontrolling			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	4,053,929		$	220,407		$	936,733		$	4,770,255
Weighted average rate		6.07	%		5.92	%		5.78	%		6.02	%
Variable:
Variable-rate debt		2,458,826			304,688			248,112			2,402,250
Weighted average rate		4.92	%		4.09	%		2.35	%		4.76	%
Tax-Exempt		961,515			84,134			160,362			1,037,743
Weighted average rate		1.92	%		2.55	%		1.34	%		1.78	%
Total variable-rate debt		3,420,341	��		388,822			408,474			3,439,993
Total Nonrecourse Mortgage Debt	$	7,474,270		$	609,229		$	1,345,207		$	8,210,248
Weighted Average Rate		5.16	%		4.54	%		4.62	%		5.12	%

36

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

The following tables provide detail of our maturities for 2010, 2011 and 2012 as of January 31, 2010, as well as the level of exposure to various lending sources, operating/development designation and product type:

Upcoming Maturities Summary(dollars in thousands)

As of January 31, 2010

			Less							Plus
			Unconsolidated			Full		Less		Unconsolidated			Pro-Rata
			Investments			Consolidation		Noncontrolling		Investments			Consolidation
Year Ending January 31, 2011	100%		at 100%			(GAAP)		Interest		at Pro Rata			(Non-GAAP)
Total Maturities (Nonrecourse Mortgage Debt)	$	1,160,501	$	310,427		$	850,074	$	70,477	$	148,074		$	927,671
Less: Scheduled Payments		111,906		26,720			85,186		5,209		14,052			94,029
Net Maturities		1,048,595		283,707			764,888		65,268		134,022			833,642
Add: Notes Payable		112,829		99,111			13,718		2,246		23,740			35,212
Total Maturities (including Notes Payable)		1,161,424		382,818			778,606		67,514		157,762			868,854
Closed Loans / To be Fully Amortized(3)		90,158		5,890			84,268		12,412		1,216			73,072
Committed Deals / Automatic Extensions(3)		99,765		30,950			68,815		480		14,760			83,095
Extension Available(1) (3)		382,189		223,959			158,230		40,089		111,349			229,490
Subtotal		572,112		260,799			311,313		52,981		127,325			385,657
Remaining to Finance	$	589,312	$	122,019		$	467,293	$	14,533	$	30,437		$	483,197
			Less							Plus
			Unconsolidated			Full		Less		Unconsolidated			Pro-Rata
			Investments			Consolidation		Noncontrolling		Investments			Consolidation
Year Ending January 31, 2012	100%		at 100%			(GAAP)		Interest		at Pro Rata			(Non-GAAP)
Total Maturities (Nonrecourse Mortgage Debt)	$	1,290,726	$	285,631		$	1,005,095	$	181,363	$	142,024		$	965,756
Less: Scheduled Payments		91,620		18,660			72,960		2,850		10,357			80,467
Add: Corporate Debt(4)		105,067		-			105,067		-		-			105,067
Net Maturities		1,304,173		266,971			1,037,202		178,513		131,667			990,356
Add: Notes Payable		70,101		61,540			8,561		-		13,886			22,447
Total Maturities (including Notes Payable)		1,374,274		328,511			1,045,763		178,513		145,553			1,012,803
Closed Corporate Debt(4)		51,176		-			51,176		-		-			51,176
Closed Loans / To be Fully Amortized(3) (5)		232		(44,850	)		45,082		-		(22,876	)		22,206
Committed Deals / Automatic Extensions(3)		50,582		50,582			-		-		25,291			25,291
Extension Available(1) (3)		459,152		35,756			423,396		101,058		17,878			340,216
Subtotal		561,142		41,488			519,654		101,058		20,293			438,889
Remaining to Finance	$	813,132	$	287,023		$	526,109	$	77,455	$	125,260		$	573,914
			Less							Plus
			Unconsolidated			Full		Less		Unconsolidated			Pro-Rata
			Investments			Consolidation		Noncontrolling		Investments			Consolidation
Year Ending January 31, 2013	100%		at 100%			(GAAP)		Interest		at Pro Rata			(Non-GAAP)
Total Maturities (Nonrecourse Mortgage Debt)	$	1,243,679	$	63,752		$	1,179,927	$	141,997	$	33,690		$	1,071,620
Less: Scheduled Payments		76,627		19,090			57,537		2,765		11,047			65,819
Add: Corporate Debt(2)		83,516		-			83,516		-		-			83,516
Net Maturities		1,250,568		44,662			1,205,906		139,232		22,643			1,089,317
Add: Notes Payable		158,912		106,924			51,988		36		29,615			81,567
Total Maturities (including Notes Payable)		1,409,480		151,586			1,257,894		139,268		52,258			1,170,884
Closed Loans / To be Fully Amortized(3) (5)		12,848		(61,562	)		74,410		2,692		(30,049	)		41,669
Committed Deals / Automatic Extensions(3)		63,911		-			63,911		942		-			62,969
Extension Available(1) (3)		830,979		-			830,979		134,353		-			696,626
Subtotal		907,738		(61,562	)		969,300		137,987		(30,049	)		801,264
Remaining to Finance	$	501,742	$	213,148		$	288,594	$	1,281	$	82,307		$	369,620

(1)	Includes loans that have extension options available, all of which require some predefined condition in order to qualify for the extension, such as, meeting or exceeding leasing hurdles, loan to value ratios or debt service coverage requirements. We cannot give assurance that the defined hurdles or milestones will be achieved to qualify for these extensions.
(2)	The credit facility amount of $83,516 outstanding as of January 31, 2010 has a maximum commitment of $500,000. The remaining availability of $416,484 is further reduced by $196,006 by outstanding letters of credit and reserves for retirement of indebtedness as of January 31, 2010.
(3)	Reflects activity through March 30, 2010.
(4)	$51,176 of the Puttable Equity-Linked Notes due 2011 were exchanged by the holders for newly issued cumulative perpetual convertible preferred stock. In addition, $121,747 and $5,826 of our Senior Notes due 2015 and 2017, respectively, were also exchanged for preferred stock.
(5)	Reflects reduction of maturities of $45,082 at full consolidation and $22,090 at pro-rata for 2011 and $62,145 at full consolidation and $29,324 at pro-rata for 2012 due to the assumption of debt by new joint venture partners in certain Residential and Commercial properties, which will now be accounted for under the equity method of accounting.

37

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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

Investments in and Advances to Affiliates

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

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

			January 31, 2009
	January 31, 2010		(As Adjusted)
	(in thousands)
Members’ and partners’ equity, as below	$	568,954	$	595,163
Equity of other members and partners		503,708		534,942
Company’s investment in partnerships	$	65,246	$	60,221
Advances to and on behalf of other affiliates		200,097		168,774
Total Investments in and Advances to Affiliates	$	265,343	$	228,995

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

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
	January 31, 2010			January 31, 2009			January 31, 2010			January 31, 2009
	(in thousands)
Balance Sheet:
Real Estate
Completed rental properties	$	4,380,406		$	3,967,896		$	1,368,451		$	1,391,085
Projects under development		785,548			931,411			305,420			354,643
Land held for development or sale		268,658			278,438			116,863			122,377
Total Real Estate		5,434,612			5,177,745			1,790,734			1,868,105
Less accumulated depreciation		(723,314	)		(680,013	)		(326,169	)		(332,619	)
Real Estate, net		4,711,298			4,497,732			1,464,565			1,535,486
Restricted cash - Military housing bond funds		481,615			795,616			6,149			43,085
Other restricted cash		222,752			207,507			62,257			72,778
Other assets		499,204			482,431			173,799			155,079
Total Assets	$	5,914,869		$	5,983,286		$	1,706,770		$	1,806,428
Mortgage debt, nonrecourse	$	4,419,937		$	4,571,375		$	1,345,207		$	1,475,014
Other liabilities		925,978			816,748			297,150			271,974
Total Liabilities		5,345,915			5,388,123			1,642,357			1,746,988
Members’ and partners’ equity		568,954			595,163			65,246			60,221
Noncontrolling interest		-			-			(833	)		(781	)
Total Equity		568,954			595,163			64,413			59,440
Total Liabilities and Members’/Partners’ Equity	$	5,914,869		$	5,983,286		$	1,706,770		$	1,806,428

38

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Investments in and Advances to Affiliates(continued)

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Year Ended January 31,	2010			2009			2010			2009
				(in thousands)
Operations:
Revenues	$	868,589		$	901,892		$	355,195		$	380,297
Equity in earnings of unconsolidated entities on a pro-rata basis		-			-			792			756
Operating expenses		(587,759	)		(649,953	)		(259,085	)		(272,305	)
Interest expense including early extinguishment of debt		(222,010	)		(222,340	)		(66,106	)		(69,808	)
Impairment of real estate(1)		-			(66,873	)		-			(13,592	)
Depreciation and amortization		(160,850	)		(149,496	)		(61,488	)		(58,425	)
Interest and other income		13,559			49,745			2,310			4,396
Preferred return on disposition		-			(208	)		-			(208	)
Noncontrolling interest		-			-			(76	)		(84	)
Loss from continuing operations		(88,471	)		(137,233	)		(28,458	)		(28,973	)
Discontinued operations:
Operating earnings (loss) from rental properties		(945	)		2,823			-			-
Gain on disposition of rental properties (2)		-			3,470			-			1,081
Discontinued operations subtotal		(945	)		6,293			-			1,081
Net earnings (loss) (pre-tax)	$	(89,416	)	$	(130,940	)	$	(28,458	)	$	(27,892	)
Impairment of investment in unconsolidated entities (1)		(36,356	)		(7,693	)		(36,356	)		(7,693	)
Gain on disposition of equity method investments (2)		49,761			-			49,761			-
Net earnings (loss) (pre-tax) from unconsolidated entities	$	(76,011	)	$	(138,633	)	$	(15,053	)	$	(35,585	)

39

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Investments in and Advances to Affiliates(continued)

(1) The following table shows the detail of impairment of unconsolidated entities:

		Combined (100%)				Pro-Rata Share
		(GAAP)				(Non-GAAP)
		Year Ended January 31,
		2010		2009		2010		2009
				(in thousands)
Impairment of real estate:
Mercury (Condominiums)	(Los Angeles, California)	$	-	$	28,910	$	-	$	8,036
Navy Midwest (Land owned by Military Housing Project)	(Chicago, Illinois)		-		30,000		-		300
Specialty Retail Centers:
Coachella Plaza	(Coachella, California)		-		1,870		-		1,870
Southgate Mall	(Yuma, Arizona)		-		1,356		-		1,356
El Centro Mall	(El Centro, California)		-		4,737		-		2,030
Total impairment of real estate		$	-	$	66,873	$	-	$	13,592
Impairment of investment in unconsolidated entities:
Apartment Communities:
Millender Center	(Detroit, Michigan)	$	10,317	$	-	$	10,317	$	-
Uptown Apartments	(Oakland, California)		6,781		-		6,781		-
Metropolitan Lofts	(Los Angeles, California)		2,505		-		2,505		-
Residences at University Park	(Cambridge, Massachusetts)		855		-		855		-
Fenimore Court	(Detroit, Michigan)		693		-		693		-
Classic Residence by Hyatt (Supported-living Apartments)	(Yonkers, New York)		3,152		1,107		3,152		1,107
Advent Solar (Office Building)	(Albuquerque, New Mexico)		1,693		-		1,693		-
Southgate Mall (Specialty Retail Center)	(Yuma, Arizona)		1,611		-		1,611		-
Pittsburgh Peripheral (Commercial Group Land Project)	(Pittsburgh, Pennsylvania)		7,217		3,937		7,217		3,937
Mixed-Use Land Development:
Shamrock Business Center	(Painesville, Ohio)		1,150		-		1,150		-
Old Stone Crossing at Caldwell Creek	(Charlotte, North Carolina)		122		365		-		365
Palmer	(Manatee County, Florida)		-		1,214		-		1,214
Cargor VI	(Manatee County, Florida)		-		892		-		892
Other			260		178		382		178
Total impairment of investment in unconsolidated entities		$	36,356	$	7,693	$	36,356	$	7,693

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

		Combined (100%)				Pro-Rata Share
		(GAAP)				(Non-GAAP)
		Year Ended January 31,
		2010		2009		2010		2009
		(in thousands)
Gain on disposition of equity method rental properties:
Office Buildings:
One International Place	(Cleveland, Ohio)	$	-	$	3,070	$	-	$	881
Emery Richmond	(Warrensville Heights, Ohio)		-		400		-		200
Total gain on disposition of equity method rental properties		$	-	$	3,470	$	-	$	1,081
Gain on disposition of equity method investments:
Apartment Communities:
Clarkwood	(Warrensville Heights, Ohio)	$	6,983	$	-	$	6,983	$	-
Granada Gardens	(Warrensville Heights, Ohio)		6,577		-		6,577		-
Boulevard Towers(a)	(Amherst, New York)		4,498		-		4,498		-
Sale of three Classic Residence by Hyatt (Supported-living Apartments)
(Chevy Chase, Maryland, Teaneck, New Jersey and Yonkers, New York)			31,703		-		31,703		-
Total gain on disposition of equity method investments		$	49,761	$	-	$	49,761	$	-

(a) We disposed of our 50% ownership interest inBoulevard Towersin a nonmonetary exchange for 100% ownership interest inNorth Church Towers, an apartment complex in Parma Heights, Ohio.

40

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Rental Properties Corporation (“FCRPC”) is a wholly-owned subsidiary of Forest City Enterprises, Inc. engaged in the ownership, development, management and acquisition of real estate projects, including regional malls, specialty/urban retail centers, office and life science buildings, hotels, mixed-use projects, as well as large land development projects, residential rental properties, development of for-sale condominium projects and also owns interests in entities that develop and manage military family housing.

Forest City Rental Properties Corporation and Subsidiaries

Consolidated Balance Sheet Information – January 31, 2010 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties	$	8,470,065		$	291,070		$	1,368,449		$	9,547,444
Projects under development		2,641,170			600,119			305,420			2,346,471
Land held for development or sale		73,038			5,832			55,162			122,368
Total Real Estate		11,184,273			897,021			1,729,031			12,016,283
Less accumulated depreciation		(1,588,070	)		(57,756	)		(326,169	)		(1,856,483	)
Real Estate, net		9,596,203			839,265			1,402,862			10,159,800
Cash and equivalents		205,371			6,602			28,056			226,825
Restricted cash		403,841			90,951			68,053			380,943
Notes and accounts receivable, net		360,838			20,248			66,684			407,274
Investments in and advances to affiliates		224,881			(159,708	)		(34,872	)		349,717
Other assets		780,967			70,976			71,872			781,863
Total Assets	$	11,572,101		$	868,334		$	1,602,655		$	12,306,422
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse	$	7,453,730		$	609,229		$	1,318,845		$	8,163,346
Notes payable		145,246			13,380			126,254			258,120
Bank revolving credit facility		83,516			-			-			83,516
Accounts payable and accrued expenses		1,051,092			83,725			158,365			1,125,732
Accounts payable to Forest City Enterprises, Inc.		570,935			(443	)		24			571,402
Deferred income taxes		495,677			-			-			495,677
Total Liabilities		9,800,196			705,891			1,603,488			10,697,793
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss		1,500,544			-			-			1,500,544
Accumulated other comprehensive loss		(77,936	)		-			-			(77,936	)
Total Shareholders’ Equity		1,422,608			-			-			1,422,608
Noncontrolling interest		349,297			162,443			(833	)		186,021
Total Equity		1,771,905			162,443			(833	)		1,608,629
Total Liabilities and Equity	$	11,572,101		$	868,334		$	1,602,655		$	12,306,422

41

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Rental Properties Corporation and Subsidiaries

Consolidated Earnings Information – Year Ended January 31, 2010 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	1,249,746		$	50,729		$	350,371		$	5,476		$	1,554,864
Expenses
Operating expenses		658,857			23,804			255,632			430			891,115
Depreciation and amortization		264,186			5,274			58,799			1,347			319,058
Impairment of real estate		22,636			-			34,824			9,775			67,235
		945,679			29,078			349,255			11,552			1,277,408
Interest expense		(344,583	)		(14,486	)		(66,901	)		(2,184	)		(399,182	)
Amortization of mortgage procurement costs		(13,659	)		(518	)		(2,411	)		(50	)		(15,602	)
Gain (loss) on early extinguishment of debt		22,420			-			(1,130	)		-			21,290
Interest and other income		49,208			624			2,301			-			50,885
Gain on disposition of rental properties		-			-			49,761			4,548			54,309
Earnings (loss) before income taxes		17,453			7,271			(17,264	)		(3,762	)		(10,844	)
Income tax expense (benefit)
Current		8,261			-			-			848			9,109
Deferred		(17,828	)		-			-			(2,307	)		(20,135	)
		(9,567	)		-			-			(1,459	)		(11,026	)
Equity in earnings (loss), including impairment of unconsolidated entities		(15,562	)		(76	)		17,264			-			1,778
Earnings (loss) from continuing operations		11,458			7,195			-			(2,303	)		1,960
Discontinued operations, net of tax:
Operating earnings from rental properties		(5,087	)		-			-			5,087			-
Gain on disposition of rental properties		2,784			-			-			(2,784	)		-
		(2,303	)		-			-			2,303			-
Net earnings		9,155			7,195			-			-			1,960
Net earnings attributable to noncontrolling interest		(7,195	)		(7,195	)		-			-			-
Net earnings attributable to Forest City Enterprises, Inc.	$	1,960		$	-		$	-		$	-		$	1,960

42

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

The following is a summary of the real estate activity of FCRPC as presented on pro-rata consolidation including a reconciliation from full consolidation to pro-rata consolidation.

Real Estate Activity

	Pro-Rata Consolidation (Non-GAAP)
	Year Ended			Year Ended
	January 31,			January 31,
	2010			2009
	(in thousands)
Real estate
Completed rental properties	$	9,547,444		$	9,353,924
Projects under development		2,346,471			2,128,065
Land held for development or sale		122,368			116,675
Total real estate - FCRPC		12,016,283			11,598,664
Less accumulated depreciation		(1,856,483	)		(1,698,362	)
Real estate, net - FCRPC	$	10,159,800		$	9,900,302
Plus real estate, net - Land Group and Corporate		206,778			186,673
Real estate, net - Forest City Enterprises	$	10,366,578		$	10,086,975
Real estate activity during the year
Completed rental properties
Capital expenditures	$	59,599		$	99,130
Transferred from projects under development		469,479			729,370
Acquisitions		-			98,160
Other(3)		(146,187	)		116,679
Total additions		382,891			1,043,339
Dispositions		(189,371	)(1)		(147,005	)(2)
Completed rental properties, net additions	$	193,520		$	896,334
Projects under development
New development		732,880			1,023,035
Transferred to completed rental properties		(469,479	)		(729,370	)
Cost of land sales		(44,995	)		(34,391	)
Other(4)		-			41,572
Projects under development, net additions		218,406			300,846
Land held for development or sale, net additions		5,693			26,524
Increase in real estate, at cost	$	417,619		$	1,223,704

43

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate Activity – (continued)

							Plus
				Less			Unconsolidated			Plus			Pro-Rata
	Full			Noncontrolling			Investments			Discontinued			Consolidation
Years Ended January 31,	Consolidation			Interest			at Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
2010
Real estate - end of year
Completed rental properties	$	8,470,065		$	291,070		$	1,368,449		$	-		$	9,547,444
Projects under development		2,641,170			600,119			305,420			-			2,346,471
Land held for development or sale		73,038			5,832			55,162			-			122,368
Total real estate - FCRPC		11,184,273			897,021			1,729,031			-			12,016,283
Less accumulated depreciation		(1,588,070	)		(57,756	)		(326,169	)		-			(1,856,483	)
Real estate, net - FCRPC	$	9,596,203		$	839,265		$	1,402,862		$	-		$	10,159,800
Plus real estate, net - Land Group and Corporate		150,918			5,843			61,703			-			206,778
Real estate, net - Forest City Enterprises	$	9,747,121		$	845,108		$	1,464,565		$	-		$	10,366,578
Real estate activity during the year
Completed rental properties
Capital expenditures	$	43,787		$	1,799		$	17,611		$	-		$	59,599
Transferred from projects under development		376,829			21,508			114,158			-			469,479
Acquisitions		-			-			-			-			-
Other(3)		(57,623	)		29,656			(58,908	)		-			(146,187	)
Total additions		362,993			52,963			72,861			-			382,891
Dispositions		(93,875	)		-			(95,496	)		-			(189,371	)(1)
Completed rental properties, net additions		269,118			52,963			(22,635	)		-			193,520
Projects under development
New development		805,865			153,995			81,010			-			732,880
Transferred to completed rental properties		(376,829	)		(21,508	)		(114,158	)		-			(469,479	)
Cost of land sales		(28,920	)		-			(16,075	)		-			(44,995	)
Projects under development, net additions		400,116			132,487			(49,223	)		-			218,406
Land held for development or sale, net additions		4,494			60			1,259			-			5,693
Increase (decrease) in real estate, at cost	$	673,728		$	185,510		$	(70,599	)	$	-		$	417,619
2009
Real estate - end of year
Completed rental properties	$	8,200,947		$	238,107		$	1,391,084		$	-		$	9,353,924
Projects under development		2,241,054			467,632			354,643			-			2,128,065
Land held for development or sale		68,544			5,772			53,903			-			116,675
Total real estate - FCRPC		10,510,545			711,511			1,799,630			-			11,598,664
Less accumulated depreciation		(1,413,299	)		(47,555	)		(332,618	)		-			(1,698,362	)
Real estate, net - FCRPC	$	9,097,246		$	663,956		$	1,467,012		$	-		$	9,900,302
Plus real estate, net - Land Group and Corporate		132,056			13,857			68,474			-			186,673
Real estate, net - Forest City Enterprises	$	9,229,302		$	677,813		$	1,535,486		$	-		$	10,086,975
Real estate activity during the year
Completed rental properties
Capital expenditures	$	90,348		$	2,415		$	11,197		$	-		$	99,130
Transferred from projects under development		591,992			10,886			148,264			-			729,370
Acquisitions		80,972			2,641			19,829			-			98,160
Other(3)		13,031			(94,407	)		9,241			-			116,679
Total additions		776,343			(78,465	)		188,531			-			1,043,339
Dispositions		(128,010	)		(17,820	)		(5,487	)		(31,328	)		(147,005	)(2)
Completed rental properties, net additions		648,333			(96,285	)		183,044			(31,328	)		896,334
Projects under development
New development		922,248			134,386			235,173			-			1,023,035
Transferred to completed rental properties		(591,992	)		(10,886	)		(148,264	)		-			(729,370	)
Cost of land sales		(12,264	)		(141	)		(22,268	)		-			(34,391	)
Other(4)		416,695			158,467			(216,656	)		-			41,572
Projects under development, net additions		734,687			281,826			(152,015	)		-			300,846
Land held for development or sale, net additions		15,930			851			11,445			-			26,524
Increase (decrease) in real estate, at cost	$	1,398,950		$	186,392		$	42,474		$	(31,328	)	$	1,223,704

44

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate Activity – (continued)

(1)	Reflects the dispositions of:Grand Avenue(a 100,000 square foot specialty retail center in Queens, New York),Sterling Glen of Glen Cove(an 80-unit supported-living apartment community in Glen Cove, New York),Sterling Glen of Great Neck(a 142-unit supported-living apartment community in Great Neck, New York),Classic Residence by Hyatt (a 220-unit supported-living apartment community in Teaneck, New Jersey),Classic Residence by Hyatt(a 339-unit supported-living apartment community in Chevy Chase, Maryland),Classic Residence by Hyatt(a 310-unit supported-living apartment community in Yonkers, New York),Granada Gardens(a 940-unit apartment community in Warrensville Heights, Ohio), andClarkwood(a 568-unit apartment community in Warrensville Heights, Ohio).
(2)	Primarily reflects the dispositions of:Sterling Glen of Lynbrook(a 130-unit supported-living apartment community in Lynbrook, New York),Sterling Glen of Rye Brook(a 168-unit supported-living apartment community in Rye Brook, New York),One International Place(an 88,000 square foot office building in Cleveland, Ohio) andEmery Richmond(a 5,000 square foot office building in Warrensville Heights, Ohio).
(3)	Relates to non-cash changes in completed rental properties with increases primarily due to assuming a larger portion of the existing mortgage debt upon acquisition of a partners’ interest and decreases primarily due to impairment of real estate assets.
(4)	Change to full consolidation method of accounting from equity method due to the occurrence of a triggering event as described in accounting guidance related to consolidation of variable interest entities, forWaterfront Station, Village at Gulfstream Park, Shops at Wiregrassand a mixed-use development project located in Las Vegas, Nevada in the Commercial Group for the year ended January 31, 2009. This also includes the retrospective application of accounting for convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement).

45

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2010 and 2009(in thousands)

	Commercial Group 2009														Commercial Group 2008
							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	$	252,983		$	11,041		$	29,645		$	-	$	271,587		$	250,792		$	4,975		$	29,887		$	912		$	276,616
Exclude straight-line rent adjustment		(5,229	)		-			-			-		(5,229	)		1,465			-			-			(6	)		1,459
Adjusted revenues		247,754			11,041			29,645			-		266,358			252,257			4,975			29,887			906			278,075
Add interest and other income		16,929			19			(1,325	)		-		15,585			1,138			152			165			1			1,152
Add equity in earnings (loss), including impairment of unconsolidated entities		(1	)		(1	)		-			-		-			(5,308	)		(119	)		5,191			-			2
Exclude gain on disposition of unconsolidated entities		-			-			-			-		-			-			-			-			-			-
Exclude impairment of unconsolidated entities		1,693			-			(1,693	)		-		-			7,929			-			(7,929	)		-			-
Exclude depreciation and amortization of unconsolidated entities		4,875			-			(4,875	)		-		-			4,858			-			(4,858	)		-			-
Adjusted total income		271,250			11,059			21,752			-		281,943			260,874			5,008			22,456			907			279,229
Operating expenses		138,400			5,417			15,153			-		148,136			130,672			978			14,139			347			144,180
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		1,589			-			-			-		1,589			1,556			-			-			-			1,556
Exclude straight-line rent adjustment		(1,595	)		-			-			-		(1,595	)		(2,808	)		-			-			-			(2,808	)
Exclude preference payment		(585	)		-			-			-		(585	)		(585	)		-			-			-			(585	)
Adjusted operating expenses		137,809			5,417			15,153			-		147,545			128,835			978			14,139			347			142,343
Net operating income		133,441			5,642			6,599			-		134,398			132,039			4,030			8,317			560			136,886
Interest expense		63,392			3,512			6,599			-		66,479			77,128			807			8,317			399			85,037
Loss on early extinguishment of debt		-			-			-			-		-			-			-			-			-			-
Preferred return on disposition		-			-			-			-		-			-			-			-			-			-
Noncontrolling interest in earnings before depreciation and amortization		2,130			2,130			-			-		-			3,223			3,223			-			-			-
Exclude retrospective adoption of accounting guidance for convertible debt instruments		-			-			-			-		-			1,480			-			-			-			1,480
Add: Pre-Tax EBDT from discontinued operations		-			-			-			-		-			161			-			-			(161	)		-
Pre-Tax EBDT		67,919			-			-			-		67,919			50,369			-			-			-			50,369
Income tax expense (benefit)		(727	)		-			-			-		(727	)		(8,189	)		-			-			-			(8,189	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	68,646		$	-		$	-		$	-	$	68,646		$	58,558		$	-		$	-		$	-		$	58,558
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	68,646		$	-		$	-		$	-	$	68,646		$	58,558		$	-		$	-		$	-		$	58,558
Depreciation and amortization - Real Estate Groups		(52,908	)		-			-			-		(52,908	)		(53,599	)		-			-			(182	)		(53,781	)
Amortization of mortgage procurement costs - Real Estate Groups		(2,929	)		-			-			-		(2,929	)		(2,745	)		-			-			(7	)		(2,752	)
Deferred taxes - Real Estate Groups		690			-			-			-		690			(14,650	)		-			-			14			(14,636	)
Straight-line rent adjustment		3,634			-			-			-		3,634			(4,273	)		-			-			6			(4,267	)
Preference payment		(585	)		-			-			-		(585	)		(585	)		-			-			-			(585	)
Preferred return on disposition, net of tax		-			-			-			-		-			-			-			-			-			-
Gain on disposition of rental properties and other investments, net of tax		-			-			-			-		-			-			-			-			-			-
Gain on disposition of unconsolidated entities, net of tax		-			-			-			-		-			-			-			-			-			-
Impairment of real estate, net of tax		(10,241	)		-			(1,037	)		-		(11,278	)		-			-			(4,831	)		-			(4,831	)
Impairment of unconsolidated entities, net of tax		(1,037	)		-			1,037			-		-			(4,831	)		-			4,831			-			-
Retrospective adoption of accounting guidance for convertible debt instruments		-			-			-			-		-			1,480			-			-			-			1,480
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		-			-			-			-		-			(182	)		-			-			182			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-			-			-		-			(7	)		-			-			7			-
Deferred taxes - Real Estate Groups		-			-			-			-		-			14			-			-			(14	)		-
Straight-line rent adjustment		-			-			-			-		-			6			-			-			(6	)		-
Gain on disposition of rental properties		-			-			-			-		-			-			-			-			-			-
Deferred gain on disposition of Lumber Group		-			-			-			-		-			-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	5,270		$	-		$	-		$	-	$	5,270		$	(20,814	)	$	-		$	-		$	-		$	(20,814	)

46

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2010 and 2009(in thousands)(continued)

	Residential Group 2009															Residential Group 2008
								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		$	64,574		$	1,230		$	38,266		$	-	$	101,610		$	59,778		$	2,131	$	43,421		$	3,139		$	104,207
Exclude straight-line rent adjustment			(54	)		-			-			-		(54	)		16			-		-			-			16
Adjusted revenues			64,520			1,230			38,266			-		101,556			59,794			2,131		43,421			3,139			104,223
Add interest and other income			10,832			(7	)		726			-		11,565			9,781			53		1,193			(1	)		10,920
Add equity in earnings (loss), including impairment of unconsolidated entities			43,283			6			(43,209	)		-		68			(3,187	)		52		3,042			-			(197	)
Exclude gain on disposition of unconsolidated entities			(45,263	)		-			45,263			-		-			-			-		-			-			-
Exclude impairment of unconsolidated entities			-			-			-			-		-			5,045			-		(5,045	)		-			-
Exclude depreciation and amortization of unconsolidated entities			8,193			-			(8,193	)		-		-			6,043			-		(6,043	)		-			-
Adjusted total income			81,565			1,229			32,853			-		113,189			77,476			2,236		36,568			3,138			114,946
Operating expenses			27,861			795			23,836			-		50,902			34,564			1,353		27,841			448			61,500
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs			954			-			-			-		954			907			-		-			-			907
Exclude straight-line rent adjustment			1			-			-			-		1			-			-		-			-			-
Exclude preference payment			-			-			-			-		-			-			-		-			-			-
Adjusted operating expenses			28,816			795			23,836			-		51,857			35,471			1,353		27,841			448			62,407
Net operating income			52,749			434			9,017			-		61,332			42,005			883		8,727			2,690			52,539
Interest expense			6,502			347			8,063			-		14,218			8,528			416		7,996			1,090			17,198
Loss on early extinguishment of debt			1,396			-			954			-		2,350			620			-		-			-			620
Preferred return on disposition			-			-			-			-		-			731			-		(731	)		-			-
Noncontrolling interest in earnings before depreciation and amortization			87			87			-			-		-			467			467		-			-			-
Exclude retrospective adoption of accounting guidance for convertible debt instruments			-			-			-			-		-			284			-		-			-			284
Add: Pre-Tax EBDT from discontinued operations			-			-			-			-		-			1,600			-		-			(1,600	)		-
Pre-Tax EBDT			44,764			-			-			-		44,764			34,437			-		-			-			34,437
Income tax expense (benefit)			4,112			-			-			-		4,112			(12,222	)		-		-			-			(12,222	)
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	40,652		$	-		$	-		$	-	$	40,652		$	46,659		$	-	$	-		$	-		$	46,659
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	40,652		$	-		$	-		$	-	$	40,652		$	46,659		$	-	$	-		$	-		$	46,659
Depreciation and amortization - Real Estate Groups			(22,413	)		-			-			-		(22,413	)		(20,511	)		-		-			(849	)		(21,360	)
Amortization of mortgage procurement costs - Real Estate Groups			(707	)		-			-			-		(707	)		(717	)		-		-			(72	)		(789	)
Deferred taxes - Real Estate Groups			(1,814	)		-			-			-		(1,814	)		(14,474	)		-		-			(31	)		(14,505	)
Straight-line rent adjustment			55			-			-			-		55			(16	)		-		-			-			(16	)
Preference payment			-			-			-			-		-			-			-		-			-			-
Preferred return on disposition, net of tax			-			-			-			-		-			(448	)		-		-			-			(448	)
Gain on disposition of rental properties and other investments, net of tax			-			-			27,709			-		27,709			-			-		-			2,865			2,865
Gain on disposition of unconsolidated entities, net of tax			27,709			-			(27,709	)		-		-			-			-		-			-			-
Impairment of real estate, net of tax			(2,719	)		-			-			-		(2,719	)		(774	)		-		(3,096	)		-			(3,870	)
Impairment of unconsolidated entities, net of tax			-			-			-			-		-			(3,096	)		-		3,096			-			-
Retrospective adoption of accounting guidance for convertible debt instruments			-			-			-			-		-			284			-		-			-			284
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups			-			-			-			-		-			(849	)		-		-			849			-
Amortization of mortgage procurement costs - Real Estate Groups			-			-			-			-		-			(72	)		-		-			72			-
Deferred taxes - Real Estate Groups			-			-			-			-		-			(31	)		-		-			31			-
Straight-line rent adjustment			-			-			-			-		-			-			-		-			-			-
Gain on disposition of rental properties			-			-			-			-		-			2,865			-		-			(2,865	)		-
Deferred gain on disposition of Lumber Group			-			-			-			-		-			-			-		-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc.		$	40,763		$	-		$	-		$	-	$	40,763		$	8,820		$	-	$	-		$	-		$	8,820

47

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2010 and 2009(in thousands)(continued)

	Land Development Group 2009														Land Development Group 2008
							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		$	6,776		$	460	$	2,998		$	-	$	9,314		$	10,004		$	1,331	$	6,325		$	-	$	14,998
Exclude straight-line rent adjustment			-			-		-			-		-			1			-		-			-		1
Adjusted revenues			6,776			460		2,998			-		9,314			10,005			1,331		6,325			-		14,999
Add interest and other income			2,052			163		(29	)		-		1,860			2,898			182		16			-		2,732
Add equity in earnings (loss), including impairment of unconsolidated entities			453			-		(777	)		-		(324	)		806			-		(905	)		-		(99	)
Exclude gain on disposition of unconsolidated entities			-			-		-			-		-			-			-		-			-		-
Exclude impairment of unconsolidated entities			-			-		-			-		-			2,285			-		(2,285	)		-		-
Exclude depreciation and amortization of unconsolidated entities			225			-		(225	)		-		-			165			-		(165	)		-		-
Adjusted total income			9,506			623		1,967			-		10,850			16,159			1,513		2,986			-		17,632
Operating expenses			9,070			379		2,290			-		10,981			8,031			762		2,815			-		10,084
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs			71			-		-			-		71			127			-		-			-		127
Exclude straight-line rent adjustment			-			-		-			-		-			-			-		-			-		-
Exclude preference payment			-			-		-			-		-			-			-		-			-		-
Adjusted operating expenses			9,141			379		2,290			-		11,052			8,158			762		2,815			-		10,211
Net operating income			365			244		(323	)		-		(202	)		8,001			751		171			-		7,421
Interest expense			486			70		(323	)		-		93			201			42		171			-		330
Loss on early extinguishment of debt			-			-		-			-		-			-			-		-			-		-
Preferred return on disposition			-			-		-			-		-			-			-		-			-		-
Noncontrolling interest in earnings before depreciation and amortization			174			174		-			-		-			709			709		-			-		-
Exclude retrospective adoption of accounting guidance for convertible debt instruments			-			-		-			-		-			61			-		-			-		61
Add: Pre-Tax EBDT from discontinued operations			-			-		-			-		-			-			-		-			-		-
Pre-Tax EBDT			(295	)		-		-			-		(295	)		7,030			-		-			-		7,030
Income tax expense (benefit)			(5,305	)		-		-			-		(5,305	)		(6,771	)		-		-			-		(6,771	)
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	5,010		$	-	$	-		$	-	$	5,010		$	13,801		$	-	$	-		$	-	$	13,801
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	5,010		$	-	$	-		$	-	$	5,010		$	13,801		$	-	$	-		$	-	$	13,801
Depreciation and amortization - Real Estate Groups			(112	)		-		-			-		(112	)		(415	)		-		-			-		(415	)
Amortization of mortgage procurement costs - Real Estate Groups			(214	)		-		-			-		(214	)		(238	)		-		-			-		(238	)
Deferred taxes - Real Estate Groups			(6,158	)		-		-			-		(6,158	)		1,663			-		-			-		1,663
Straight-line rent adjustment			-			-		-			-		-			(1	)		-		-			-		(1	)
Preference payment			-			-		-			-		-			-			-		-			-		-
Preferred return on disposition, net of tax			-			-		-			-		-			-			-		-			-		-
Gain on disposition of rental properties and other investments, net of tax			-			-		-			-		-			-			-		-			-		-
Gain on disposition of unconsolidated entities, net of tax			-			-		-			-		-			-			-		-			-		-
Impairment of real estate, net of tax			(1,365	)		-		-			-		(1,365	)		-			-		(1,402	)		-		(1,402	)
Impairment of unconsolidated entities, net of tax			-			-		-			-		-			(1,402	)		-		1,402			-		-
Retrospective adoption of accounting guidance for convertible debt instruments			-			-		-			-		-			61			-		-			-		61
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			-			-		-			-		-			-			-		-			-		-
Deferred gain on disposition of Lumber Group			-			-		-			-		-			-			-		-			-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.		$	(2,839	)	$	-	$	-		$	-	$	(2,839	)	$	13,469		$	-	$	-		$	-	$	13,469

48

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2010 and 2009(in thousands)(continued)

	The Nets 2009													The Nets 2008
							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		$	-		$	-	$	21,466	$	-	$	21,466		$	-		$	-	$	13,520	$	-	$	13,520
Exclude straight-line rent adjustment			-			-		-		-		-			-			-		-		-		-
Adjusted revenues			-			-		21,466		-		21,466			-			-		13,520		-		13,520
Add interest and other income			-			-		72		-		72			-			-		68		-		68
Add equity in earnings (loss), including impairment of unconsolidated entities			(13,648	)		-		13,648		-		-			(9,109	)		-		9,109		-		-
Exclude gain on disposition of unconsolidated entities			-			-		-		-		-			-			-		-		-		-
Exclude impairment of unconsolidated entities			-			-		-		-		-			-			-		-		-		-
Exclude depreciation and amortization of unconsolidated entities			-			-		-		-		-			-			-		-		-		-
Adjusted total income			(13,648	)		-		35,186		-		21,538			(9,109	)		-		22,697		-		13,588
Operating expenses			-			-		29,826		-		29,826			-			-		15,903		-		15,903
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs			-			-		2,744		-		2,744			-			-		5,928		-		5,928
Exclude straight-line rent adjustment			-			-		-		-		-			-			-		-		-		-
Exclude preference payment			-			-		-		-		-			-			-		-		-		-
Adjusted operating expenses			-			-		32,570		-		32,570			-			-		21,831		-		21,831
Net operating income			(13,648	)		-		2,616		-		(11,032	)		(9,109	)		-		866		-		(8,243	)
Interest expense			-			-		2,616		-		2,616			-			-		866		-		866
Loss on early extinguishment of debt			-			-		-		-		-			-			-		-		-		-
Preferred return on disposition			-			-		-		-		-			-			-		-		-		-
Noncontrolling interest in earnings before depreciation and amortization			-			-		-		-		-			-			-		-		-		-
Exclude retrospective adoption of accounting guidance for convertible debt instruments			-			-		-		-		-			-			-		-		-		-
Add: Pre-Tax EBDT from discontinued operations			-			-		-		-		-			-			-		-		-		-
Pre-Tax EBDT			(13,648	)		-		-		-		(13,648	)		(9,109	)		-		-		-		(9,109	)
Income tax expense (benefit)			(4,593	)		-		-		-		(4,593	)		(56	)		-		-		-		(56	)
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	(9,055	)	$	-	$	-	$	-	$	(9,055	)	$	(9,053	)	$	-	$	-	$	-	$	(9,053	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	(9,055	)	$	-	$	-	$	-	$	(9,055	)	$	(9,053	)	$	-	$	-	$	-	$	(9,053	)
Depreciation and amortization - Real Estate Groups			-			-		-		-		-			-			-		-		-		-
Amortization of mortgage procurement costs - Real Estate Groups			-			-		-		-		-			-			-		-		-		-
Deferred taxes - Real Estate Groups			-			-		-		-		-			-			-		-		-		-
Straight-line rent adjustment			-			-		-		-		-			-			-		-		-		-
Preference payment			-			-		-		-		-			-			-		-		-		-
Preferred return on disposition, net of tax			-			-		-		-		-			-			-		-		-		-
Gain on disposition of rental properties and other investments, net of tax			-			-		-		-		-			-			-		-		-		-
Gain on disposition of unconsolidated entities, net of tax			-			-		-		-		-			-			-		-		-		-
Impairment of real estate, net of tax			-			-		-		-		-			-			-		-		-		-
Impairment of unconsolidated entities, net of tax			-			-		-		-		-			-			-		-		-		-
Retrospective adoption of accounting guidance for convertible debt instruments			-			-		-		-		-			-			-		-		-		-
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			-			-		-		-		-			-			-		-		-		-
Deferred gain on disposition of Lumber Group			-			-		-		-		-			-			-		-		-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.		$	(9,055	)	$	-	$	-	$	-	$	(9,055	)	$	(9,053	)	$	-	$	-	$	-	$	(9,053	)

49

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2010 and 2009(in thousands)(continued)

	Corporate Activities 2009														Corporate Activities 2008
							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		$	-		$	-	$	-	$	-		$	-		$	-		$	-	$	-	$	-		$	-
Exclude straight-line rent adjustment			-			-		-		-			-			-			-		-		-			-
Adjusted revenues			-			-		-		-			-			-			-		-		-			-
Add interest and other income			268			-		-		-			268			613			-		-		-			613
Add equity in earnings (loss), including impairment of unconsolidated entities			-			-		-		-			-			-			-		-		-			-
Exclude gain on disposition of unconsolidated entities			-			-		-		-			-			-			-		-		-			-
Exclude impairment of unconsolidated entities			-			-		-		-			-			-			-		-		-			-
Exclude depreciation and amortization of unconsolidated entities			-			-		-		-			-			-			-		-		-			-
Adjusted total income			268			-		-		-			268			613			-		-		-			613
Operating expenses			9,240			-		-		-			9,240			14,225			-		-		-			14,225
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs			494			-		-		-			494			826			-		-		-			826
Exclude straight-line rent adjustment			-			-		-		-			-			-			-		-		-			-
Exclude preference payment			-			-		-		-			-			-			-		-		-			-
Adjusted operating expenses			9,734			-		-		-			9,734			15,051			-		-		-			15,051
Net operating income			(9,466	)		-		-		-			(9,466	)		(14,438	)		-		-		-			(14,438	)
Interest expense			21,456			-		-		-			21,456			19,031			-		-		-			19,031
Loss on early extinguishment of debt			-			-		-		-			-			-			-		-		-			-
Preferred return on disposition			-			-		-		-			-			-			-		-		-			-
Noncontrolling interest in earnings before depreciation and amortization			-			-		-		-			-			-			-		-		-			-
Exclude retrospective adoption of accounting guidance for convertible debt instruments			-			-		-		-			-			(2,208	)		-		-		-			(2,208	)
Add: Pre-Tax EBDT from discontinued operations			-			-		-		-			-			-			-		-		-			-
Pre-Tax EBDT			(30,922	)		-		-		-			(30,922	)		(31,261	)		-		-		-			(31,261	)
Income tax expense (benefit)			(4,076	)		-		-		-			(4,076	)		8,202			-		-		-			8,202
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	(26,846	)	$	-	$	-	$	-		$	(26,846	)	$	(39,463	)	$	-	$	-	$	-		$	(39,463	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	(26,846	)	$	-	$	-	$	-		$	(26,846	)	$	(39,463	)	$	-	$	-	$	-		$	(39,463	)
Depreciation and amortization - Real Estate Groups			-			-		-		-			-			-			-		-		-			-
Amortization of mortgage procurement costs - Real Estate Groups			-			-		-		-			-			-			-		-		-			-
Deferred taxes - Real Estate Groups			(1,810	)		-		-		-			(1,810	)		3,225			-		-		-			3,225
Straight-line rent adjustment			-			-		-		-			-			-			-		-		-			-
Preference payment			-			-		-		-			-			-			-		-		-			-
Preferred return on disposition, net of tax			-			-		-		-			-			-			-		-		-			-
Gain on disposition of rental properties and other investments, net of tax			-			-		-		718			718			-			-		-		680			680
Gain on disposition of unconsolidated entities, net of tax			-			-		-		-			-			-			-		-		-			-
Impairment of real estate, net of tax			-			-		-		-			-			-			-		-		-			-
Impairment of unconsolidated entities, net of tax			-			-		-		-			-			-			-		-		-			-
Retrospective adoption of accounting guidance for convertible debt instruments			-			-		-		-			-			(2,208	)		-		-		-			(2,208	)
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			-			-		-		-			-			-			-		-		-			-
Deferred gain on disposition of Lumber Group			718			-		-		(718	)		-			680			-		-		(680	)		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.		$	(27,938	)	$	-	$	-	$	-		$	(27,938	)	$	(37,766	)	$	-	$	-	$	-		$	(37,766	)

50

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2010 and 2009(in thousands)(continued)

	Total 2009															Total 2008
							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		$	324,333		$	12,731	$	92,375		$	-		$	403,977		$	320,574		$	8,437		$	93,153		$	4,051		$	409,341
Exclude straight-line rent adjustment			(5,283	)		-		-			-			(5,283	)		1,482			-			-			(6	)		1,476
Adjusted revenues			319,050			12,731		92,375			-			398,694			322,056			8,437			93,153			4,045			410,817
Add interest and other income			30,081			175		(556	)		-			29,350			14,430			387			1,442			-			15,485
Add equity in earnings (loss), including impairment of unconsolidated entities			30,087			5		(30,338	)		-			(256	)		(16,798	)		(67	)		16,437			-			(294	)
Exclude gain on disposition of unconsolidated entities			(45,263	)		-		45,263			-			-			-			-			-			-			-
Exclude impairment of unconsolidated entities			1,693			-		(1,693	)		-			-			15,259			-			(15,259	)		-			-
Exclude depreciation and amortization of unconsolidated entities			13,293			-		(13,293	)		-			-			11,066			-			(11,066	)		-			-
Adjusted total income			348,941			12,911		91,758			-			427,788			346,013			8,757			84,707			4,045			426,008
Operating expenses			184,571			6,591		71,105			-			249,085			187,492			3,093			60,698			795			245,892
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs			3,108			-		2,744			-			5,852			3,416			-			5,928			-			9,344
Exclude straight-line rent adjustment			(1,594	)		-		-			-			(1,594	)		(2,808	)		-			-			-			(2,808	)
Exclude preference payment			(585	)		-		-			-			(585	)		(585	)		-			-			-			(585	)
Adjusted operating expenses			185,500			6,591		73,849			-			252,758			187,515			3,093			66,626			795			251,843
Net operating income			163,441			6,320		17,909			-			175,030			158,498			5,664			18,081			3,250			174,165
Interest expense			91,836			3,929		16,955			-			104,862			104,888			1,265			17,350			1,489			122,462
Loss on early extinguishment of debt			1,396			-		954			-			2,350			620			-			-			-			620
Preferred return on disposition			-			-		-			-			-			731			-			(731	)		-			-
Noncontrolling interest in earnings before depreciation and amortization			2,391			2,391		-			-			-			4,399			4,399			-			-			-
Exclude retrospective adoption of accounting guidance for convertible debt instruments			-			-		-			-			-			(383	)		-			-			-			(383	)
Add: Pre-Tax EBDT from discontinued operations			-			-		-			-			-			1,761			-			-			(1,761	)		-
Pre-Tax EBDT			67,818			-		-			-			67,818			51,466			-			-			-			51,466
Income tax expense (benefit)			(10,589	)		-		-			-			(10,589	)		(19,036	)		-			-			-			(19,036	)
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	78,407		$	-	$	-		$	-		$	78,407		$	70,502		$	-		$	-		$	-		$	70,502
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	78,407		$	-	$	-		$	-		$	78,407		$	70,502		$	-		$	-		$	-		$	70,502
Depreciation and amortization - Real Estate Groups			(75,433	)		-		-			-			(75,433	)		(74,525	)		-			-			(1,031	)		(75,556	)
Amortization of mortgage procurement costs - Real Estate Groups			(3,850	)		-		-			-			(3,850	)		(3,700	)		-			-			(79	)		(3,779	)
Deferred taxes - Real Estate Groups			(9,092	)		-		-			-			(9,092	)		(24,236	)		-			-			(17	)		(24,253	)
Straight-line rent adjustment			3,689			-		-			-			3,689			(4,290	)		-			-			6			(4,284	)
Preference payment			(585	)		-		-			-			(585	)		(585	)		-			-			-			(585	)
Preferred return on disposition, net of tax			-			-		-			-			-			(448	)		-			-			-			(448	)
Gain on disposition of rental properties and other investments, net of tax			-			-		27,709			718			28,427			-			-			-			3,545			3,545
Gain on disposition of unconsolidated entities, net of tax			27,709			-		(27,709	)		-			-			-			-			-			-			-
Impairment of real estate, net of tax			(14,325	)		-		(1,037	)		-			(15,362	)		(774	)		-			(9,329	)		-			(10,103	)
Impairment of unconsolidated entities, net of tax			(1,037	)		-		1,037			-			-			(9,329	)		-			9,329			-			-
Retrospective adoption of accounting guidance for convertible debt instruments			-			-		-			-			-			(383	)		-			-			-			(383	)
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups			-			-		-			-			-			(1,031	)		-			-			1,031			-
Amortization of mortgage procurement costs - Real Estate Groups			-			-		-			-			-			(79	)		-			-			79			-
Deferred taxes - Real Estate Groups			-			-		-			-			-			(17	)		-			-			17			-
Straight-line rent adjustment			-			-		-			-			-			6			-			-			(6	)		-
Gain on disposition of rental properties			-			-		-			-			-			2,865			-			-			(2,865	)		-
Deferred gain on disposition of Lumber Group			718			-		-			(718	)		-			680			-			-			(680	)		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.		$	6,201		$	-	$	-		$	-		$	6,201		$	(45,344	)	$	-		$	-		$	-		$	(45,344	)

51

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2010 and 2009(in thousands)

	Commercial Group 2009																Commercial Group 2008
								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		$	973,738		$	44,001		$	112,723		$	813		$	1,043,273		$	966,783		$	34,326		$	112,059		$	3,870		$	1,048,386
Exclude straight-line rent adjustment			(19,596	)		-			-			(12	)		(19,608	)		(6,571	)		-			-			(153	)		(6,724	)
Adjusted revenues			954,142			44,001			112,723			801			1,023,665			960,212			34,326			112,059			3,717			1,041,662
Add interest and other income	��		19,574			(24	)		800			-			20,398			8,737			450			2,217			7			10,511
Add equity in earnings (loss), including impairment of unconsolidated entities			(3,864	)		-			3,862			-			(2	)		(1,216	)		(149	)		919			-			(148	)
Exclude gain on disposition of unconsolidated entities			-			-			-			-			-			(1,081	)		-			1,081			-			-
Exclude impairment of unconsolidated entities			10,521			-			(10,521	)		-			-			9,192			-			(9,192	)		-			-
Exclude depreciation and amortization of unconsolidated entities			17,770			-			(17,770	)		-			-			16,568			-			(16,568	)		-			-
Adjusted total income			998,143			43,977			89,094			801			1,044,061			992,412			34,627			90,516			3,724			1,052,025
Operating expenses			481,624			20,758			60,013			320			521,199			506,604			12,373			59,367			1,291			554,889
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs			6,465			-			-			-			6,465			6,186			-			-			-			6,186
Exclude straight-line rent adjustment			(6,452	)		-			-			-			(6,452	)		(6,368	)		-			-			-			(6,368	)
Exclude preference payment			(2,341	)		-			-			-			(2,341	)		(3,329	)		-			-			-			(3,329	)
Adjusted operating expenses			479,296			20,758			60,013			320			518,871			503,093			12,373			59,367			1,291			551,378
Net operating income			518,847			23,219			29,081			481			525,190			489,319			22,254			31,149			2,433			500,647
Interest expense			239,308			13,083			29,081			322			255,628			254,299			9,955			31,149			1,595			277,088
(Gain) loss on early extinguishment of debt			(24,219	)		-			-			-			(24,219	)		1,479			119			-			-			1,360
Preferred return on disposition			-			-			-			-			-			-			-			-			-			-
Noncontrolling interest in earnings before depreciation and amortization			10,136			10,136			-			-			-			12,180			12,180			-			-			-
Exclude retrospective adoption of accounting guidance for convertible debt instruments			-			-			-			-			-			6,095			-			-			-			6,095
Add: Pre-Tax EBDT from discontinued operations			159			-			-			(159	)		-			838			-			-			(838	)		-
Pre-Tax EBDT			293,781			-			-			-			293,781			216,104			-			-			-			216,104
Income tax expense (benefit)			7,361			-			-			-			7,361			(5,472	)		-			-			-			(5,472	)
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	286,420		$	-		$	-		$	-		$	286,420		$	221,576		$	-		$	-		$	-		$	221,576
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	286,420		$	-		$	-		$	-		$	286,420		$	221,576		$	-		$	-		$	-		$	221,576
Depreciation and amortization - Real Estate Groups			(210,591	)		-			-			(107	)		(210,698	)		(210,113	)		-			-			(860	)		(210,973	)
Amortization of mortgage procurement costs - Real Estate Groups			(12,251	)		-			-			(5	)		(12,256	)		(10,027	)		-			-			(28	)		(10,055	)
Deferred taxes - Real Estate Groups			(11,781	)		-			-			(31	)		(11,812	)		(14,663	)		-			-			(10	)		(14,673	)
Straight-line rent adjustment			13,144			-			-			12			13,156			203			-			-			153			356
Preference payment			(2,341	)		-			-			-			(2,341	)		(3,329	)		-			-			-			(3,329	)
Preferred return on disposition, net of tax			-			-			-			-			-			-			-			-			-			-
Gain on disposition of rental properties and other investments, net of tax			-			-			-			2,784			2,784			-			-			663			-			663
Gain on disposition of unconsolidated entities, net of tax			-			-			-			-			-			663			-			(663	)		-			-
Impairment of real estate, net of tax			(10,241	)		-			(6,441	)		-			(16,682	)		-			-			(5,606	)		-			(5,606	)
Impairment of unconsolidated entities, net of tax			(6,441	)		-			6,441			-			-			(5,606	)		-			5,606			-			-
Retrospective adoption of accounting guidance for convertible debt instruments			-			-			-			-			-			6,095			-			-			-			6,095
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups			(107	)		-			-			107			-			(860	)		-			-			860			-
Amortization of mortgage procurement costs - Real Estate Groups			(5	)		-			-			5			-			(28	)		-			-			28			-
Deferred taxes - Real Estate Groups			(31	)		-			-			31			-			(10	)		-			-			10			-
Straight-line rent adjustment			12			-			-			(12	)		-			153			-			-			(153	)		-
Gain on disposition of rental properties			2,784			-			-			(2,784	)		-			-			-			-			-			-
Impairment of real estate, net of tax			-			-			-			-			-			-			-			-			-			-
Deferred gain on disposition of Lumber Group			-			-			-			-			-			-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc.		$	48,571		$	-		$	-		$	-		$	48,571		$	(15,946	)	$	-		$	-		$	-		$	(15,946	)

52

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2010 and 2009(in thousands)(continued)

	Residential Group 2009																Residential Group 2008
								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		$	263,217		$	5,451		$	178,530		$	4,663		$	440,959		$	279,939		$	19,431	$	198,584		$	13,306		$	472,398
Exclude straight-line rent adjustment			(85	)		-			-			-			(85	)		(5	)		-		-			-			(5	)
Adjusted revenues			263,132			5,451			178,530			4,663			440,874			279,934			19,431		198,584			13,306			472,393
Add interest and other income			23,674			52			1,215			-			24,837			19,653			223		2,692			118			22,240
Add equity in earnings (loss), including impairment of unconsolidated entities			28,427			(76	)		(28,154	)		-			349			(250	)		65		(375	)		-			(690	)
Exclude gain on disposition of unconsolidated entities			(49,761	)		-			49,761			-			-			-			-		-			-			-
Exclude impairment of unconsolidated entities			24,303			-			(24,303	)		-			-			9,443			-		(9,443	)		-			-
Exclude depreciation and amortization of unconsolidated entities			27,801			-			(27,801	)		-			-			20,647			-		(20,647	)		-			-
Adjusted total income			317,576			5,427			149,248			4,663			466,060			329,427			19,719		170,811			13,424			493,943
Operating expenses			161,971			1,855			118,362			110			278,588			177,219			12,590		137,824			1,108			303,561
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs			3,825			-			-			-			3,825			3,601			-		-			-			3,601
Exclude straight-line rent adjustment			1			-			-			-			1			-			-		-			-			-
Exclude preference payment			-			-			-			-			-			-			-		-			-			-
Adjusted operating expenses			165,797			1,855			118,362			110			282,414			180,820			12,590		137,824			1,108			307,162
Net operating income			151,779			3,572			30,886			4,553			183,646			148,607			7,129		32,987			12,316			186,781
Interest expense			27,962			1,403			29,756			1,862			58,177			36,887			1,537		31,997			5,615			72,962
(Gain) loss on early extinguishment of debt			1,799			-			1,130			-			2,929			4,372			-		51			-			4,423
Preferred return on disposition			-			-			-			-			-			939			-		(939	)		-			-
Noncontrolling interest in earnings before depreciation and amortization			2,169			2,169			-			-			-			5,592			5,592		-			-			-
Exclude retrospective adoption of accounting guidance for convertible debt instruments			-			-			-			-			-			1,213			-		-			-			1,213
Add: Pre-Tax EBDT from discontinued operations			2,691			-			-			(2,691	)		-			6,701			-		-			(6,701	)		-
Pre-Tax EBDT			122,540			-			-			-			122,540			108,183			-		-			-			108,183
Income tax expense (benefit)			(229	)		-			-			-			(229	)		(12,219	)		-		-			-			(12,219	)
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	122,769		$	-		$	-		$	-		$	122,769		$	120,402		$	-	$	-		$	-		$	120,402
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	122,769		$	-		$	-		$	-		$	122,769		$	120,402		$	-	$	-		$	-		$	120,402
Depreciation and amortization - Real Estate Groups			(81,544	)		-			-			(1,240	)		(82,784	)		(75,159	)		-		-			(4,082	)		(79,241	)
Amortization of mortgage procurement costs - Real Estate Groups			(2,658	)		-			-			(45	)		(2,703	)		(2,770	)		-		-			(390	)		(3,160	)
Deferred taxes - Real Estate Groups			(11,743	)		-			-			(443	)		(12,186	)		(17,840	)		-		-			(1,291	)		(19,131	)
Straight-line rent adjustment			86			-			-			-			86			5			-		-			-			5
Preference payment			-			-			-			-			-			-			-		-			-			-
Preferred return on disposition, net of tax			-			-			-			-			-			(576	)		-		-			-			(576	)
Gain on disposition of rental properties and other investments, net of tax			-			-			30,462			-			30,462			-			-		-			8,159			8,159
Gain on disposition of unconsolidated entities, net of tax			30,462			-			(30,462	)		-			-			-			-		-			-			-
Impairment of real estate, net of tax			(3,616	)		-			(14,877	)		(5,984	)		(24,477	)		(774	)		-		(5,795	)		-			(6,569	)
Impairment of unconsolidated entities, net of tax			(14,877	)		-			14,877			-			-			(5,795	)		-		5,795			-			-
Retrospective adoption of accounting guidance for convertible debt instruments			-			-			-			-			-			1,213			-		-			-			1,213
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups			(1,240	)		-			-			1,240			-			(4,082	)		-		-			4,082			-
Amortization of mortgage procurement costs - Real Estate Groups			(45	)		-			-			45			-			(390	)		-		-			390			-
Deferred taxes - Real Estate Groups			(443	)		-			-			443			-			(1,291	)		-		-			1,291			-
Straight-line rent adjustment			-			-			-			-			-			-			-		-			-			-
Gain on disposition of rental properties			-			-			-			-			-			8,159			-		-			(8,159	)		-
Impairment of real estate, net of tax			(5,984	)		-			-			5,984			-			-			-		-			-			-
Deferred gain on disposition of Lumber Group			-			-			-			-			-			-			-		-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc.		$	31,167		$	-		$	-		$	-		$	31,167		$	21,102		$	-	$	-		$	-		$	21,102

53

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2010 and 2009(in thousands)(continued)

	Land Development Group 2009														Land Development Group 2008
							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		$	20,267		$	1,287	$	11,776		$	-	$	30,756		$	33,848		$	2,375		$	19,483		$	-	$	50,956
Exclude straight-line rent adjustment			-			-		-			-		-			3			-			-			-		3
Adjusted revenues			20,267			1,287		11,776			-		30,756			33,851			2,375			19,483			-		50,959
Add interest and other income			9,508			690		8			-		8,826			12,612			1,134			60			-		11,538
Add equity in earnings (loss), including impairment of unconsolidated entities			3,873			-		(3,428	)		-		445			6,870			-			(5,276	)		-		1,594
Exclude gain on disposition of unconsolidated entities			-			-		-			-		-			-			-			-			-		-
Exclude impairment of unconsolidated entities			1,532			-		(1,532	)		-		-			2,650			-			(2,650	)		-		-
Exclude depreciation and amortization of unconsolidated entities			423			-		(423	)		-		-			348			-			(348	)		-		-
Adjusted total income			35,603			1,977		6,401			-		40,027			56,331			3,509			11,269			-		64,091
Operating expenses			33,119			1,556		8,326			-		39,889			52,878			3,688			10,731			-		59,921
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs			477			-		-			-		477			539			-			-			-		539
Exclude straight-line rent adjustment			-			-		-			-		-			-			-			-			-		-
Exclude preference payment			-			-		-			-		-			-			-			-			-		-
Adjusted operating expenses			33,596			1,556		8,326			-		40,366			53,417			3,688			10,731			-		60,460
Net operating income			2,007			421		(1,925	)		-		(339	)		2,914			(179	)		538			-		3,631
Interest expense			2,109			275		(51	)		-		1,783			(98	)		132			538			-		308
(Gain) loss on early extinguishment of debt			(9,466	)		-		(1,874	)		-		(11,340	)		-			-			-			-		-
Preferred return on disposition			-			-		-			-		-			-			-			-			-		-
Noncontrolling interest in earnings before depreciation and amortization			146			146		-			-		-			(311	)		(311	)		-			-		-
Exclude retrospective adoption of accounting guidance for convertible debt instruments			-			-		-			-		-			332			-			-			-		332
Add: Pre-Tax EBDT from discontinued operations			-			-		-			-		-			-			-			-			-		-
Pre-Tax EBDT			9,218			-		-			-		9,218			2,991			-			-			-		2,991
Income tax expense (benefit)			(3,610	)		-		-			-		(3,610	)		714			-			-			-		714
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	12,828		$	-	$	-		$	-	$	12,828		$	2,277		$	-		$	-		$	-	$	2,277
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	12,828		$	-	$	-		$	-	$	12,828		$	2,277		$	-		$	-		$	-	$	2,277
Depreciation and amortization - Real Estate Groups			(387	)		-		-			-		(387	)		(735	)		-			-			-		(735	)
Amortization of mortgage procurement costs - Real Estate Groups			(624	)		-		-			-		(624	)		(573	)		-			-			-		(573	)
Deferred taxes - Real Estate Groups			(7,987	)		-		-			-		(7,987	)		11,206			-			-			-		11,206
Straight-line rent adjustment			-			-		-			-		-			(3	)		-			-			-		(3	)
Preference payment			-			-		-			-		-			-			-			-			-		-
Preferred return on disposition, net of tax			-			-		-			-		-			-			-			-			-		-
Gain on disposition of rental properties and other investments, net of tax			-			-		-			-		-			-			-			-			-		-
Gain on disposition of unconsolidated entities, net of tax			-			-		-			-		-			-			-			-			-		-
Impairment of real estate, net of tax			(2,381	)		-		(938	)		-		(3,319	)		-			-			(1,626	)		-		(1,626	)
Impairment of unconsolidated entities, net of tax			(938	)		-		938			-		-			(1,626	)		-			1,626			-		-
Retrospective adoption of accounting guidance for convertible debt instruments			-			-		-			-		-			332			-			-			-		332
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 real estate, net of tax			-			-		-			-		-			-			-			-			-		-
Deferred gain on disposition of Lumber Group			-			-		-			-		-			-			-			-			-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.		$	511		$	-	$	-		$	-	$	511		$	10,878		$	-		$	-		$	-	$	10,878

54

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2010 and 2009(in thousands)(continued)

	The Nets 2009													The Nets 2008
							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		$	-		$	-	$	52,166	$	-	$	52,166		$	-		$	-	$	50,171	$	-	$	50,171
Exclude straight-line rent adjustment			-			-		-		-		-			-			-		-		-		-
Adjusted revenues			-			-		52,166		-		52,166			-			-		50,171		-		50,171
Add interest and other income			-			-		287		-		287			-			-		158		-		158
Add equity in earnings (loss), including impairment of unconsolidated entities			(43,489	)		-		43,489		-		-			(40,989	)		-		40,989		-		-
Exclude gain on disposition of unconsolidated entities			-			-		-		-		-			-			-		-		-		-
Exclude impairment of unconsolidated entities			-			-		-		-		-			-			-		-		-		-
Exclude depreciation and amortization of unconsolidated entities			-			-		-		-		-			-			-		-		-		-
Adjusted total income			(43,489	)		-		95,942		-		52,453			(40,989	)		-		91,318		-		50,329
Operating expenses			-			-		72,384		-		72,384			-			-		64,383		-		64,383
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs			-			-		15,494		-		15,494			-			-		20,862		-		20,862
Exclude straight-line rent adjustment			-			-		-		-		-			-			-		-		-		-
Exclude preference payment			-			-		-		-		-			-			-		-		-		-
Adjusted operating expenses			-			-		87,878		-		87,878			-			-		85,245		-		85,245
Net operating income			(43,489	)		-		8,064		-		(35,425	)		(40,989	)		-		6,073		-		(34,916	)
Interest expense			-			-		8,064		-		8,064			-			-		6,073		-		6,073
(Gain) loss on early extinguishment of debt			-			-		-		-		-			-			-		-		-		-
Preferred return on disposition			-			-		-		-		-			-			-		-		-		-
Noncontrolling interest in earnings before depreciation and amortization			-			-		-		-		-			-			-		-		-		-
Exclude retrospective adoption of accounting guidance for convertible debt instruments			-			-		-		-		-			-			-		-		-		-
Add: Pre-Tax EBDT from discontinued operations			-			-		-		-		-			-			-		-		-		-
Pre-Tax EBDT			(43,489	)		-		-		-		(43,489	)		(40,989	)		-		-		-		(40,989	)
Income tax expense (benefit)			(14,815	)		-		-		-		(14,815	)		(11,022	)		-		-		-		(11,022	)
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	(28,674	)	$	-	$	-	$	-	$	(28,674	)	$	(29,967	)	$	-	$	-	$	-	$	(29,967	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)		$	(28,674	)	$	-	$	-	$	-	$	(28,674	)	$	(29,967	)	$	-	$	-	$	-	$	(29,967	)
Depreciation and amortization - Real Estate Groups			-			-		-		-		-			-			-		-		-		-
Amortization of mortgage procurement costs - Real Estate Groups			-			-		-		-		-			-			-		-		-		-
Deferred taxes - Real Estate Groups			-			-		-		-		-			-			-		-		-		-
Straight-line rent adjustment			-			-		-		-		-			-			-		-		-		-
Preference payment			-			-		-		-		-			-			-		-		-		-
Preferred return on disposition, net of tax			-			-		-		-		-			-			-		-		-		-
Gain on disposition of rental properties and other investments, net of tax			-			-		-		-		-			-			-		-		-		-
Gain on disposition of unconsolidated entities, net of tax			-			-		-		-		-			-			-		-		-		-
Impairment of real estate, net of tax			-			-		-		-		-			-			-		-		-		-
Impairment of unconsolidated entities, net of tax			-			-		-		-		-			-			-		-		-		-
Retrospective adoption of accounting guidance for convertible debt instruments			-			-		-		-		-			-			-		-		-		-
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 real estate, net of tax			-			-		-		-		-			-			-		-		-		-
Deferred gain on disposition of Lumber Group			-			-		-		-		-			-			-		-		-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.		$	(28,674	)	$	-	$	-	$	-	$	(28,674	)	$	(29,967	)	$	-	$	-	$	-	$	(29,967	)

55

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2010 and 2009(in thousands)(continued)

	Corporate Activities 2009													Corporate Activities 2008
						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	$	-		$	-	$	-	$	-		$	-		$	-		$	-	$	-	$	-		$	-
Exclude straight-line rent adjustment		-			-		-		-			-			-			-		-		-			-
Adjusted revenues		-			-		-		-			-			-			-		-		-			-
Add interest and other income		1,249			-		-		-			1,249			1,415			-		-		-			1,415
Add equity in earnings (loss), including impairment of unconsolidated entities		-			-		-		-			-			-			-		-		-			-
Exclude gain on disposition of unconsolidated entities		-			-		-		-			-			-			-		-		-			-
Exclude impairment of unconsolidated entities		-			-		-		-			-			-			-		-		-			-
Exclude depreciation and amortization of unconsolidated entities		-			-		-		-			-			-			-		-		-			-
Adjusted total income		1,249			-		-		-			1,249			1,415			-		-		-			1,415
Operating expenses		39,857			-		-		-			39,857			44,097			-		-		-			44,097
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		2,713			-		-		-			2,713			3,030			-		-		-			3,030
Exclude straight-line rent adjustment		-			-		-		-			-			-			-		-		-			-
Exclude preference payment		-			-		-		-			-			-			-		-		-			-
Adjusted operating expenses		42,570			-		-		-			42,570			47,127			-		-		-			47,127
Net operating income		(41,321	)		-		-		-			(41,321	)		(45,712	)		-		-		-			(45,712	)
Interest expense		80,891			-		-		-			80,891			73,250			-		-		-			73,250
(Gain) loss on early extinguishment of debt		(4,683	)		-		-		-			(4,683	)		(3,692	)		-		-		-			(3,692	)
Preferred return on disposition		-			-		-		-			-			-			-		-		-			-
Noncontrolling interest in earnings before depreciation and amortization		-			-		-		-			-			-			-		-		-			-
Exclude retrospective adoption of accounting guidance for convertible debt instruments		-			-		-		-			-			(9,183	)		-		-		-			(9,183	)
Add: Pre-Tax EBDT from discontinued operations		-			-		-		-			-			-			-		-		-			-
Pre-Tax EBDT		(117,529	)		-		-		-			(117,529	)		(106,087	)		-		-		-			(106,087	)
Income tax expense (benefit)		(25,292	)		-		-		-			(25,292	)		(10,736	)		-		-		-			(10,736	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(92,237	)	$	-	$	-	$	-		$	(92,237	)	$	(95,351	)	$	-	$	-	$	-		$	(95,351	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(92,237	)	$	-	$	-	$	-		$	(92,237	)	$	(95,351	)	$	-	$	-	$	-		$	(95,351	)
Depreciation and amortization - Real Estate Groups		-			-		-		-			-			-			-		-		-			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-		-			-			-			-		-		-			-
Deferred taxes - Real Estate Groups		9,293			-		-		-			9,293			4,448			-		-		-			4,448
Straight-line rent adjustment		-			-		-		-			-			-			-		-		-			-
Preference payment		-			-		-		-			-			-			-		-		-			-
Preferred return on disposition, net of tax		-			-		-		-			-			-			-		-		-			-
Gain on disposition of rental properties and other investments, net of tax		-			-		-		718			718			92			-		-		680			772
Gain on disposition of unconsolidated entities, net of tax		-			-		-		-			-			-			-		-		-			-
Impairment of real estate, net of tax		-			-		-		-			-			-			-		-		-			-
Impairment of unconsolidated entities, net of tax		-			-		-		-			-			-			-		-		-			-
Retrospective adoption of accounting guidance for convertible debt instruments		-			-		-		-			-			(9,183	)		-		-		-			(9,183	)
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 real estate, net of tax		-			-		-		-			-			-			-		-		-			-
Deferred gain on disposition of Lumber Group		718			-		-		(718	)		-			680			-		-		(680	)		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(82,226	)	$	-	$	-	$	-		$	(82,226	)	$	(99,314	)	$	-	$	-	$	-		$	(99,314	)

56

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2010 and 2009(in thousands)(continued)

	Total 2009															Total 2008
							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	$	1,257,222		$	50,739		$	355,195		$	5,476		$	1,567,154		$	1,280,570		$	56,132		$	380,297		$	17,176		$	1,621,911
Exclude straight-line rent adjustment		(19,681	)		-			-			(12	)		(19,693	)		(6,573	)		-			-			(153	)		(6,726	)
��
Adjusted revenues		1,237,541			50,739			355,195			5,464			1,547,461			1,273,997			56,132			380,297			17,023			1,615,185
Add interest and other income		54,005			718			2,310			-			55,597			42,417			1,807			5,127			125			45,862
Add equity in earnings (loss), including impairment of unconsolidated entities		(15,053	)		(76	)		15,769			-			792			(35,585	)		(84	)		36,257			-			756
Exclude gain on disposition of unconsolidated entities		(49,761	)		-			49,761			-			-			(1,081	)		-			1,081			-			-
Exclude impairment of unconsolidated entities		36,356			-			(36,356	)		-			-			21,285			-			(21,285	)		-			-
Exclude depreciation and amortization of unconsolidated entities		45,994			-			(45,994	)		-			-			37,563			-			(37,563	)		-			-
Adjusted total income		1,309,082			51,381			340,685			5,464			1,603,850			1,338,596			57,855			363,914			17,148			1,661,803
Operating expenses		716,571			24,169			259,085			430			951,917			780,798			28,651			272,305			2,399			1,026,851
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		13,480			-			15,494			-			28,974			13,356			-			20,862			-			34,218
Exclude straight-line rent adjustment		(6,451	)		-			-			-			(6,451	)		(6,368	)		-			-			-			(6,368	)
Exclude preference payment		(2,341	)		-			-			-			(2,341	)		(3,329	)		-			-			-			(3,329	)
Adjusted operating expenses		721,259			24,169			274,579			430			972,099			784,457			28,651			293,167			2,399			1,051,372
Net operating income		587,823			27,212			66,106			5,034			631,751			554,139			29,204			70,747			14,749			610,431
Interest expense		350,270			14,761			66,850			2,184			404,543			364,338			11,624			69,757			7,210			429,681
(Gain) loss on early extinguishment of debt		(36,569	)		-			(744	)		-			(37,313	)		2,159			119			51			-			2,091
Preferred return on disposition		-			-			-			-			-			939			-			(939	)		-			-
Noncontrolling interest in earnings before depreciation and amortization		12,451			12,451			-			-			-			17,461			17,461			-			-			-
Exclude retrospective adoption of accounting guidance for convertible debt instruments		-			-			-			-			-			(1,543	)		-			-			-			(1,543	)
Add: Pre-Tax EBDT from discontinued operations		2,850			-			-			(2,850	)		-			7,539			-			-			(7,539	)		-
Pre-Tax EBDT		264,521			-			-			-			264,521			180,202			-			-			-			180,202
Income tax expense (benefit)		(36,585	)		-			-			-			(36,585	)		(38,735	)		-			-			-			(38,735	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	301,106		$	-		$	-		$	-		$	301,106		$	218,937		$	-		$	-		$	-		$	218,937
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	301,106		$	-		$	-		$	-		$	301,106		$	218,937		$	-		$	-		$	-		$	218,937
Depreciation and amortization - Real Estate Groups		(292,522	)		-			-			(1,347	)		(293,869	)		(286,007	)		-			-			(4,942	)		(290,949	)
Amortization of mortgage procurement costs - Real Estate Groups		(15,533	)		-			-			(50	)		(15,583	)		(13,370	)		-			-			(418	)		(13,788	)
Deferred taxes - Real Estate Groups		(22,218	)		-			-			(474	)		(22,692	)		(16,849	)		-			-			(1,301	)		(18,150	)
Straight-line rent adjustment		13,230			-			-			12			13,242			205			-			-			153			358
Preference payment		(2,341	)		-			-			-			(2,341	)		(3,329	)		-			-			-			(3,329	)
Preferred return on disposition, net of tax		-			-			-			-			-			(576	)		-			-			-			(576	)
Gain on disposition of rental properties and other investments, net of tax		-			-			30,462			3,502			33,964			92			-			663			8,839			9,594
Gain on disposition of unconsolidated entities, net of tax		30,462			-			(30,462	)		-			-			663			-			(663	)		-			-
Impairment of real estate, net of tax		(16,238	)		-			(22,256	)		(5,984	)		(44,478	)		(774	)		-			(13,027	)		-			(13,801	)
Impairment of unconsolidated entities, net of tax		(22,256	)		-			22,256			-			-			(13,027	)		-			13,027			-			-
Retrospective adoption of accounting guidance for convertible debt instruments		-			-			-			-			-			(1,543	)		-			-			-			(1,543	)
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		(1,347	)		-			-			1,347			-			(4,942	)		-			-			4,942			-
Amortization of mortgage procurement costs - Real Estate Groups		(50	)		-			-			50			-			(418	)		-			-			418			-
Deferred taxes - Real Estate Groups		(474	)		-			-			474			-			(1,301	)		-			-			1,301			-
Straight-line rent adjustment		12			-			-			(12	)		-			153			-			-			(153	)		-
Gain on disposition of rental properties		2,784			-			-			(2,784	)		-			8,159			-			-			(8,159	)		-
Impairment of real estate, net of tax		(5,984	)		-			-			5,984			-			-			-			-			-			-
Deferred gain on disposition of Lumber Group		718			-			-			(718	)		-			680			-			-			(680	)		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(30,651	)	$	-		$	-		$	-		$	(30,651	)	$	(113,247	)	$	-		$	-		$	-		$	(113,247	)

57

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

COMMERCIAL GROUP
OFFICE BUILDINGS

	Date of												Leasable
	Opening/										Leasable		Square
	Acquisition/	Legal			Pro-Rata						Square		Feet at Pro-
Name	Expansion	Ownership		(1)	Ownership		(2)		Location	Major Tenants	Feet		Rata %
Consolidated Office Buildings
2 Hanson Place	2004		100.00	%		100.00	%		Brooklyn, NY	Bank of New York, HSBC		399,000		399,000
250 Huron	1991		100.00	%		100.00	%		Cleveland, OH	Leasing in progress		119,000		119,000
3055 Roslyn (formerly Stapleton Medical Office Building)	2006		90.00	%		90.00	%		Denver, CO	University of Colorado Hospital		45,000		41,000
35 Landsdowne Street	2002		100.00	%		100.00	%		Cambridge, MA	Millennium Pharmaceuticals		202,000		202,000
40 Landsdowne Street	2003		100.00	%		100.00	%		Cambridge, MA	Millennium Pharmaceuticals		215,000		215,000
45/75 Sidney Street	1999		100.00	%		100.00	%		Cambridge, MA	Millennium Pharmaceuticals; Novartis		277,000		277,000
4930 Oakton	2006		100.00	%		100.00	%		Skokie, IL	Sanford Brown College		40,000		40,000
65/80 Landsdowne Street	2001		100.00	%		100.00	%		Cambridge, MA	Partners HealthCare System		122,000		122,000
88 Sidney Street	2002		100.00	%		100.00	%		Cambridge, MA	Alkermes, Inc.		145,000		145,000
Ballston Common Office Center	2005		100.00	%		100.00	%		Arlington, VA	US Coast Guard		174,000		174,000
Colorado Studios	2007		90.00	%		90.00	%		Denver, CO	Colorado Studios		75,000		68,000
Commerce Court	2007		100.00	%		100.00	%		Pittsburgh, PA	US Bank; Wesco Distributors; Cardworks Services; Marc USA		379,000		379,000
Edgeworth Building	2006		100.00	%		100.00	%		Richmond, VA	Hirschler Fleischer; Ernst and Young		137,000		137,000
Eleven MetroTech Center	1995		85.00	%		85.00	%		Brooklyn, NY	City of New York - DoITT; E-911		216,000		184,000
Fairmont Plaza	1998		85.00	%		85.00	%		San Jose, CA	Littler Mendelson; Merrill Lynch; UBS Financial; Camera 12 Cinemas; Accenture		405,000		344,000
Fifteen MetroTech Center	2003		95.00	%		95.00	%		Brooklyn, NY	Wellchoice, Inc.; City of New York - HRA		650,000		618,000
Halle Building	1986		100.00	%		100.00	%		Cleveland, OH	Case Western Reserve University; Grant Thornton; CEOGC		409,000		409,000
Harlem Center	2003		100.00	%		100.00	%		Manhattan, NY	Office of General Services-Temporary Disability & Assistance; State Liquor Authority		147,000		147,000
(3) Higbee Building	1990		100.00	%		100.00	%		Cleveland, OH	Greater Cleveland Partnership; Key Bank		815,000		815,000
Illinois Science and Technology Park
- 4901 Searle (A)	2006		100.00	%		100.00	%		Skokie, IL	Northshore University Health System		224,000		224,000
- 8025 Lamon (P)	2006		100.00	%		100.00	%		Skokie, IL	NanoInk, Inc.; Midwest Bio Research; Vetter Development Services		128,000		128,000
- 8045 Lamon (Q)	2007		100.00	%		100.00	%	��	Skokie, IL	Astellas; Polyera		161,000		161,000
Jackson Building	1987		100.00	%		100.00	%		Cambridge, MA	Ariad Pharmaceuticals		99,000		99,000
Johns Hopkins - 855 North Wolfe Street	2008		76.60	%		76.60	%		East Baltimore, MD	Johns Hopkins; Brain Institute; Howard Hughes Institute		279,000		214,000
New York Times	2007		100.00	%		100.00	%		Manhattan, NY	ClearBridge Advisors, LLC, a Legg Mason Co.; Covington & Burling; Osler Hoskin; Seyfarth Shaw		738,000		738,000
Nine MetroTech Center North	1997		85.00	%		85.00	%		Brooklyn, NY	City of New York - Fire Department		317,000		269,000
One MetroTech Center	1991		82.50	%		82.50	%		Brooklyn, NY	JP Morgan Chase; National Grid		937,000		773,000
One Pierrepont Plaza	1988		100.00	%		100.00	%		Brooklyn, NY	Morgan Stanley; Goldman Sachs; U.S. Probation		659,000		659,000

58

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

COMMERCIAL GROUP
OFFICE BUILDINGS (continued)

	Date of												Leasable
	Opening/										Leasable		Square
	Acquisition/		Legal			Pro-Rata					Square		Feet at Pro-
Name	Expansion	Ownership (1)				Ownership		(2)	Location	Major Tenants	Feet		Rata %
Consolidated Office Buildings (continued)
Post Office Plaza	1990			100.00	%		100.00	%	Cleveland, OH	Washington Group; Chase Manhattan Mortgage Corp; Educational Loan Servicing Corp; Quicken Loans		476,000		476,000
Richards Building	1990			100.00	%		100.00	%	Cambridge, MA	Genzyme Biosurgery; Alkermes, Inc.		126,000		126,000
Richmond Office Park	2007			100.00	%		100.00	%	Richmond, VA	The Brinks Co.; Wachovia Bank		568,000		568,000
Skylight Office Tower	1991			92.50	%		100.00	%	Cleveland, OH	Cap Gemini; Ulmer & Berne, LLP		321,000		321,000
Ten MetroTech Center	1992			100.00	%		100.00	%	Brooklyn, NY	Internal Revenue Service		365,000		365,000
Terminal Tower	1983			100.00	%		100.00	%	Cleveland, OH	Forest City Enterprises, Inc.; Cuyahoga Community College		589,000		589,000
Twelve MetroTech Center	2004			100.00	%		100.00	%	Brooklyn, NY	National Union Fire Insurance Co.		177,000		177,000
Two MetroTech Center	1990			82.50	%		82.50	%	Brooklyn, NY	Securities Industry Automation Corp.; City of New York - Board of Education		522,000		431,000
University of Pennsylvania	2004			100.00	%		100.00	%	Philadelphia, PA	University of Pennsylvania		122,000		122,000
* Waterfront Station - East 4th & West 4th Bldgs	2010			45.00	%		45.00	%	Washington, D.C.	Washington, D.C. Government		631,000		284,000
Consolidated Office Buildings Subtotal												12,410,000		11,559,000
Unconsolidated Office Buildings
350 Massachusetts Ave	1998			50.00	%		50.00	%	Cambridge, MA	Star Market; Tofias; Novartis		169,000		85,000
(3) 818 Mission Street	2008			50.00	%		50.00	%	San Francisco, CA	Denny’s		28,000		14,000
Bulletin Building	2006			50.00	%		50.00	%	San Francisco, CA	Great West Life and Annuity; Corinthian School		78,000		39,000
Chagrin Plaza I & II	1969			66.67	%		66.67	%	Beachwood, OH	Nine Sigma; Benihana; H&R Block		113,000		75,000
Clark Building	1989			50.00	%		50.00	%	Cambridge, MA	Sanofi Pasteur Acambis		122,000		61,000
Enterprise Place	1998			50.00	%		50.00	%	Beachwood, OH	University of Phoenix; Advance Payroll; PS Executive Centers		132,000		66,000
Liberty Center	1986			50.00	%		50.00	%	Pittsburgh, PA	Federated Investors; Direct Energy Business		526,000		263,000
Mesa del Sol - 5600 University SE (formerly Advent Solar)	2006			47.50	%		47.50	%	Albuquerque, NM	Applied Materials		87,000		41,000
Mesa del Sol - Aperture Center (Town Center)	2008			47.50	%		47.50	%	Albuquerque, NM	Leasing in progress		76,000		36,000
Mesa del Sol - Fidelity	2008/2009			47.50	%		47.50	%	Albuquerque, NM	Fidelity Investments		210,000		100,000
Signature Square I	1986			50.00	%		50.00	%	Beachwood, OH	Ciuni & Panichi; PCC Airfoils; Liberty Bank		79,000		40,000
Signature Square II	1989			50.00	%		50.00	%	Beachwood, OH	Pro Ed Communications; Goldberg Co.; Resillience Mgt.		82,000		41,000
Unconsolidated Office Buildings Subtotal												1,702,000		861,000
Total Office Buildings at January 31, 2010												14,112,000		12,420,000
Total Office Buildings at January 31, 2009												14,093,000		12,404,000

59

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

COMMERCIAL GROUP
RETAIL CENTERS

	Date of											Total				Gross
	Opening/									Total		Square		Gross		Leasable
	Acquisition/	Legal			Pro-Rata					Square		Feet at Pro-		Leasable		Area at Pro-
Name	Expansion	Ownership (1)			Ownership (2)			Location	Major Tenants	Feet		Rata %		Area		Rata %
Consolidated Regional Malls
Antelope Valley Mall	1990/1999		78.00	%		78.00	%	Palmdale, CA	Sears; JCPenney; Harris Gottschalks; Dillard’s; Forever 21; Cinemark Theatre		1,196,000		933,000		363,000		283,000
Ballston Common Mall	1986/1999		100.00	%		100.00	%	Arlington, VA	Macy’s; Sport & Health; Regal Cinemas		579,000		579,000		311,000		311,000
Galleria at Sunset	1996/2002		100.00	%		100.00	%	Henderson, NV	Dillard’s; Macy’s; JCPenney; Dick’s Sporting Goods; Kohl’s		1,048,000		1,048,000		412,000		412,000
Mall at Robinson	2001		56.67	%		100.00	%	Pittsburgh, PA	Macy’s; Sears; JCPenney; Dick’s Sporting Goods		880,000		880,000		384,000		384,000
Mall at Stonecrest	2001		66.67	%		66.67	%	Atlanta, GA	Kohl’s; Sears; JCPenney; Dillard’s; AMC Theatre, Macy’s		1,226,000		817,000		397,000		265,000
Northfield at Stapleton	2005/2006		95.00	%		100.00	%	Denver, CO	Bass Pro; Target; Harkins Theatre; JCPenney; Macy’s		1,127,000		1,127,000		664,000		664,000
Orchard Town Center	2008		100.00	%		100.00	%	Westminster, CO	JCPenney; Macy’s; Target; AMC Theatre		1,018,000		1,018,000		482,000		482,000
Promenade Bolingbrook	2007		100.00	%		100.00	%	Bolingbrook, IL	Bass Pro; Macy’s; Village Roadshow		771,000		771,000		575,000		575,000
++ Promenade in Temecula	1999/2002/2009		75.00	%		100.00	%	Temecula, CA	JCPenney; Sears; Macy’s; Edwards Cinema		1,275,000		1,275,000		540,000		540,000
^* Ridge Hill	2011/2012		70.00	%		100.00	%	Yonkers, NY	National Amusements; Whole Foods; LL Bean; Cheesecake Factory		1,336,000		1,336,000		1,336,000		1,336,000
Shops at Wiregrass	2008		50.00	%		100.00	%	Tampa, FL	JCPenney; Dillard’s; Macy’s		734,000		734,000		349,000		349,000
Short Pump Town Center	2003/2005		50.00	%		100.00	%	Richmond, VA	Nordstrom; Macy’s; Dillard’s; Dick’s Sporting Goods		1,303,000		1,303,000		591,000		591,000
Simi Valley Town Center	2005		85.00	%		100.00	%	Simi Valley, CA	Macy’s		612,000		612,000		351,000		351,000
South Bay Galleria	1985/2001		100.00	%		100.00	%	Redondo Beach, CA	Macy’s; Nordstrom; Kohl’s		956,000		956,000		389,000		389,000
Victoria Gardens	2004/2007		80.00	%		80.00	%	Rancho Cucamonga, CA	Bass Pro; Macy’s; JCPenney; AMC Theater		1,401,000		1,121,000		829,000		663,000
Consolidated Regional Malls Subtotal											15,462,000		14,510,000		7,973,000		7,595,000

60

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

COMMERCIAL GROUP
RETAIL CENTERS (continued)

	Date of									Total				Gross
	Opening/							Total		Square		Gross		Leasable
	Acquisition/	Legal		Pro-Rata				Square		Feet at Pro-		Leasable		Area at Pro-
Name	Expansion	Ownership (1)		Ownership (2)		Location	Major Tenants	Feet		Rata %		Area		Rata %
Consolidated Specialty Retail Centers
42nd Street	1999		100.00%		100.00%	Manhattan, NY	AMC Theatres; Madame Tussaud’s Wax Museum; Modell’s; Dave & Buster’s		312,000		312,000		312,000		312,000
Atlantic Center	1996		100.00%		100.00%	Brooklyn, NY	Pathmark; OfficeMax; Old Navy; Marshall’s; Sterns; NYC - Dept of Motor Vehicles		393,000		393,000		393,000		393,000
Atlantic Center Site V	1998		100.00%		100.00%	Brooklyn, NY	Modell’s		17,000		17,000		17,000		17,000
Atlantic Terminal	2004		100.00%		100.00%	Brooklyn, NY	Target; Designer Shoe Warehouse; Chuck E. Cheese’s; Daffy’s; Guitar Center		371,000		371,000		371,000		371,000
Avenue at Tower City Center	1990		100.00%		100.00%	Cleveland, OH	Hard Rock Café; Morton’s of Chicago; Cleveland Cinemas		365,000		365,000		365,000		365,000
Brooklyn Commons	2004		100.00%		100.00%	Brooklyn, NY	Lowe’s		151,000		151,000		151,000		151,000
Bruckner Boulevard	1996		100.00%		100.00%	Bronx, NY	Conway; Old Navy; Marshall’s		113,000		113,000		113,000		113,000
Columbia Park Center	1999		75.00%		75.00%	North Bergen, NJ	Shop Rite; Old Navy; Staples; Bally’s; Shopper’s World; Phoenix Theatres; Sixth Avenue Electronics		347,000		260,000		347,000		260,000
Court Street	2000		100.00%		100.00%	Brooklyn, NY	United Artists; Barnes & Noble		102,000		102,000		102,000		102,000
Eastchester	2000		100.00%		100.00%	Bronx, NY	Pathmark		63,000		63,000		63,000		63,000
Forest Avenue	2000		100.00%		100.00%	Staten Island, NY	United Artists		70,000		70,000		70,000		70,000
Gun Hill Road	1997		100.00%		100.00%	Bronx, NY	Home Depot; Chuck E. Cheese’s		147,000		147,000		147,000		147,000
Harlem Center	2002		100.00%		100.00%	Manhattan, NY	Marshall’s; CVS/Pharmacy; Staples; H&M; Planet Fitness		126,000		126,000		126,000		126,000
Kaufman Studios	1999		100.00%		100.00%	Queens, NY	United Artists Theatres		84,000		84,000		84,000		84,000
Market at Tobacco Row	2002		100.00%		100.00%	Richmond, VA	Rich Foods; CVS/Pharmacy		43,000		43,000		43,000		43,000
Northern Boulevard	1997		100.00%		100.00%	Queens, NY	Stop & Shop; Marshall’s; Old Navy; AJ Wright; Guitar Center		218,000		218,000		218,000		218,000
Quartermaster Plaza	2004		100.00%		100.00%	Philadelphia, PA	Home Depot; BJ’s Wholesale; Staples; PetSmart; Walgreen’s		456,000		456,000		456,000		456,000
Quebec Square	2002		90.00%		90.00%	Denver, CO	Wal-Mart; Home Depot; Sam’s Club; Ross Dress for Less; Office Depot; PetSmart		739,000		665,000		217,000		195,000
Queens Place	2001		100.00%		100.00%	Queens, NY	Target; Best Buy; Macy’s Furniture; Designer Shoe Warehouse		455,000		455,000		221,000		221,000
Richmond Avenue	1998		100.00%		100.00%	Staten Island, NY	Staples		76,000		76,000		76,000		76,000
Saddle Rock Village	2005		80.00%		100.00%	Aurora, CO	Target; JoAnn Fabrics; PetSmart; OfficeMax		294,000		294,000		97,000		97,000
(3) South Bay Southern Center	1978		100.00%		100.00%	Redondo Beach, CA	Leasing in progress		78,000		78,000		78,000		78,000
Station Square	1994/2002		100.00%		100.00%	Pittsburgh, PA	Hard Rock Café; Grand Concourse Restaurant; Buca Di Beppo		291,000		291,000		291,000		291,000
* Village at Gulfstream	2010		50.00%		50.00%	Hallandale Beach, FL	Crate & Barrel; The Container Score; Texas de Brazil; Cadillac Ranch		510,000		255,000		510,000		255,000
White Oak Village	2008		50.00%		100.00%	Richmond, VA	Target; Lowe’s; Sam’s Club; JCPenney; OfficeMax; PetSmart; Ukrops		843,000		843,000		295,000		295,000
Woodbridge Crossing	2002		100.00%		100.00%	Woodbridge, NJ	Modell’s; Thomasville Furniture; Party City		284,000		284,000		284,000		284,000
Consolidated Specialty Retail Centers Subtotal									6,948,000		6,532,000		5,447,000		5,083,000
Consolidated Retail Centers Total									22,410,000		21,042,000		13,420,000		12,678,000

61

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

COMMERCIAL GROUP
RETAIL CENTERS (continued)

	Date of									Total				Gross
	Opening/							Total		Square		Gross		Leasable
	Acquisition/	Legal		Pro-Rata				Square		Feet at Pro-		Leasable		Area at Pro-
Name	Expansion	Ownership (1)		Ownership (2)		Location	Major Tenants	Feet		Rata %		Area		Rata %
Unconsolidated Regional Malls
Boulevard Mall	1996/2000		50.00%		50.00%	Amherst, NY	JCPenney; Macy’s; Sears; Michael’s		912,000		456,000		336,000		168,000
Charleston Town Center	1983		50.00%		50.00%	Charleston, WV	Macy’s; JCPenney; Sears; Brickstreet Insurance		897,000		449,000		363,000		182,000
San Francisco Centre	2006		50.00%		50.00%	San Francisco, CA	Nordstrom; Bloomingdale’s; Century Theaters; San Francisco State University; Microsoft		1,462,000		731,000		788,000		394,000
Unconsolidated Regional Malls Subtotal									3,271,000		1,636,000		1,487,000		744,000
Unconsolidated Specialty Retail Centers
* East River Plaza	2009/2010		35.00%		50.00%	Manhattan, NY	Costco; Target; Best Buy; Marshall’s; PetsMart; Bob’s Furniture; Old Navy		527,000		264,000		527,000		264,000
Golden Gate	1958		50.00%		50.00%	Mayfield Heights, OH	OfficeMax; Old Navy; Marshall’s; Cost Plus; HH Gregg; PetSmart		361,000		181,000		361,000		181,000
Marketplace at Riverpark	1996		50.00%		50.00%	Fresno, CA	JCPenney; Best Buy; Marshall’s; OfficeMax; Old Navy; Target; Sports Authority		471,000		236,000		296,000		148,000
(3) Metreon	2006		50.00%		50.00%	San Francisco, CA	AMC Loews		279,000		140,000		279,000		140,000
Plaza at Robinson Town Center	1989		50.00%		50.00%	Pittsburgh, PA	T.J. Maxx; Marshall’s; IKEA; Value City; JoAnn Fabrics; OfficeMax		507,000		254,000		507,000		254,000
Unconsolidated Specialty Retail Centers Subtotal									2,145,000		1,075,000		1,970,000		987,000
Unconsolidated Retail Centers Total									5,416,000		2,711,000		3,457,000		1,731,000
Total Retail Centers at January 31, 2010									27,826,000		23,753,000		16,877,000		14,409,000
Total Retail Centers at January 31, 2009									27,007,000		23,409,000		16,913,000		14,587,000

62

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

COMMERCIAL GROUP
HOTELS

	Date of
	Opening/
	Acquisition/	Legal			Pro-Rata						Hotel Rooms at
Name	Expansion	Ownership (1)			Ownership (2)			Location	Rooms		Pro-Rata %
Consolidated Hotels
Charleston Marriott	1983		95.00	%		100.00	%	Charleston, WV		352		352
Ritz-Carlton, Cleveland	1990		100.00	%		100.00	%	Cleveland, OH		206		206
Sheraton Station Square	1998/2001		100.00	%		100.00	%	Pittsburgh, PA		399		399
Consolidated Hotels Subtotal										957		957
Unconsolidated Hotels
Courtyard by Marriott	1985		3.97	%		3.97	%	Detroit, MI		260		10
Westin Convention Center	1986		50.00	%		50.00	%	Pittsburgh, PA		616		308
Unconsolidated Hotels Subtotal										876		318
Total Hotel Rooms at January 31, 2010										1,833		1,275
Total Hotel Rooms at January 31, 2009										1,833		1,275

Est. Seating

Est. Seating

Capacity for

Capacity for

NBA

Total

Total Square

NBA

Basketball

ARENA

Square

Feet at Pro-Rata

Basketball

Event at

Major Tenants

Feet

%

Event

Pro-Rata %

* Barclays Center

2012

23.28

%

23.28

%

Brooklyn, NY

The Nets NBA Team

670,000

156,000

18,000

4,190

63

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

RESIDENTIAL GROUP
APARTMENTS

Name	Date of Opening/ Acquisition/ Expansion	Legal Ownership (1)		Pro-Rata Ownership (2)		Location	Leasable Units		Leasable Units at Pro-Rata %
Consolidated Apartment Communities
100 Landsdowne Street	2005		100.00%		100.00%	Cambridge, MA		203		203
101 San Fernando	2000		100.00%		95.00%	San Jose, CA		323		307
1251 S. Michigan	2006		0.01%		100.00%	Chicago, IL		91		91
^+   80 DeKalb	2009/2010		80.00%		100.00%	Brooklyn, NY		365		365
American Cigar Company	2000		100.00%		100.00%	Richmond, VA		171		171
Ashton Mill	2005		90.00%		100.00%	Cumberland, RI		193		193
Autumn Ridge	2002		100.00%		100.00%	Sterling Heights, MI		251		251
^*   Beekman	2011/2012		49.00%		70.00%	Manhattan, NY		904		633
Botanica on the Green (East 29th Avenue Town Center)	2004		90.00%		90.00%	Denver, CO		78		70
Botanica II	2007		90.00%		90.00%	Denver, CO		154		139
Bowin	1998		95.05%		95.05%	Detroit, MI		193		183
Cambridge Towers	2002		100.00%		100.00%	Detroit, MI		250		250
Cameron Kinney	2007		100.00%		100.00%	Richmond, VA		259		259
Consolidated-Carolina	2003		89.99%		100.00%	Richmond, VA		158		158
Coraopolis Towers	2002		80.00%		80.00%	Coraopolis, PA		200		160
Crescent Flats (East 29th Avenue Town Center)	2004		90.00%		90.00%	Denver, CO		66		59
Cutter’s Ridge at Tobacco Row	2006		100.00%		100.00%	Richmond, VA		12		12
Donora Towers	2002		100.00%		100.00%	Donora, PA		103		103
Drake	1998		95.05%		95.05%	Philadelphia, PA		284		270
Easthaven at the Village	1994/1995		100.00%		100.00%	Beachwood, OH		360		360
Emerald Palms	1996/2004		100.00%		100.00%	Miami, FL		505		505
Grand	1999		85.50%		85.50%	North Bethesda, MD		549		469
Grand Lowry Lofts	2000		100.00%		100.00%	Denver, CO		261		261
Grove	2003		100.00%		100.00%	Ontario, CA		101		101
^   Hamel Mill Lofts	2008/2010		90.00%		100.00%	Haverhill, MA		305		305
Heritage	2002		100.00%		100.00%	San Diego, CA		230		230
Independence Place I	1973		50.00%		50.00%	Parma Heights, OH		202		101
Independence Place II	2003		100.00%		100.00%	Parma Heights, OH		201		201
Kennedy Biscuit Lofts	1990		98.90%		100.00%	Cambridge, MA		142		142

64

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

RESIDENTIAL GROUP
APARTMENTS (continued)

Name	Date of Opening/ Acquisition/ Expansion	Legal Ownership (1)		Pro-Rata Ownership (2)		Location	Leasable Units		Leasable Units at Pro-Rata %
Consolidated Apartment Communities (continued)
Knolls	1995		1.00%		95.00%	Orange, CA		260		247
Lakeland	1998		95.10%		95.10%	Waterford, MI		200		190
Lenox Club	1991		95.00%		95.00%	Arlington, VA		385		366
Lenox Park	1992		95.00%		95.00%	Silver Spring, MD		406		386
Lofts 23	2005		100.00%		100.00%	Cambridge, MA		51		51
Lofts at 1835 Arch	2001		95.05%		95.05%	Philadelphia, PA		191		182
Lucky Strike	2008		88.98%		100.00%	Richmond, VA		131		131
Mercantile Place on Main	2008		100.00%		100.00%	Dallas, TX		366		366
Metro 417	2005		75.00%		100.00%	Los Angeles, CA		277		277
Metropolitan	1989		100.00%		100.00%	Los Angeles, CA		270		270
Midtown Towers	1969		100.00%		100.00%	Parma, OH		635		635
Museum Towers	1997		100.00%		100.00%	Philadelphia, PA		286		286
+  North Church Towers	2009		100.00%		100.00%	Parma Heights, OH		399		399
Oceanpointe Towers	1980		6.35%		100.00%	Long Branch, NJ		151		151
One Franklintown	1988		100.00%		100.00%	Philadelphia, PA		335		335
Parmatown Towers and Gardens	1972-1973		100.00%		100.00%	Parma, OH		412		412
Pavilion	1992		95.00%		95.00%	Chicago, IL		1,114		1,058
Plymouth Square	2003		100.00%		100.00%	Detroit, MI		280		280
*  Presidio Landmark	2010		100.00%		100.00%	San Francisco, CA		161		161
Queenswood	1990		93.36%		93.36%	Corona, NY		296		276
Sky55	2006		100.00%		100.00%	Chicago, IL		411		411
Southfield	2002		100.00%		100.00%	Whitemarsh, MD		212		212
Village Center	1983		100.00%		100.00%	Detroit, MI		254		254
Wilson Building	2007		100.00%		100.00%	Dallas, TX		143		143
Consolidated Apartment Communities Subtotal								14,740		14,031
Consolidated Supported-Living Apartments
Forest Trace	2000		100.00%		100.00%	Lauderhill, FL		322		322
Consolidated Supported-Living Apartments Subtotal								322		322
Consolidated Apartments Total								15,062		14,353

65

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

RESIDENTIAL GROUP
APARTMENTS (continued)

Name	Date of Opening/ Acquisition/ Expansion	Legal Ownership (1)		Pro-Rata Ownership (2)		Location	Leasable Units		Leasable Units at Pro-Rata %
Unconsolidated Apartment Communities
Arbor Glen	2001-2007		50.00%		50.00%	Twinsburg, OH		288		144
Barrington Place	2008		49.00%		49.00%	Raleigh, NC		274		134
Bayside Village	1988-1989		50.00%		50.00%	San Francisco, CA		862		431
Big Creek	1996-2001		50.00%		50.00%	Parma Heights, OH		516		258
Brookpark Place	1976		100.00%		100.00%	Wheeling, WV		152		152
Brookview Place	1979		3.00%		3.00%	Dayton, OH		232		7
Buckeye Towers	1976		10.91%		5.95%	New Boston, OH		120		7
Burton Place	2000		90.00%		90.00%	Burton, MI		200		180
Camelot	1967		50.00%		50.00%	Parma Heights, OH		151		76
Canton Towers	1978		10.91%		4.30%	Canton, OH		199		9
Carl D. Perkins	2002		100.00%		100.00%	Pikeville, KY		150		150
Cedar Place	1974		2.98%		100.00%	Lansing, MI		220		220
Cherry Tree	1996-2000		50.00%		50.00%	Strongsville, OH		442		221
Chestnut Lake	1969		50.00%		50.00%	Strongsville, OH		789		395
^+  Cobblestone Court Apartments	2006-2009		50.00%		50.00%	Painesville, OH		400		200
Colonial Grand	2003		50.00%		50.00%	Tampa, FL		176		88
Connellsville Towers	1981		9.59%		9.59%	Connellsville, PA		111		11
Coppertree	1998		50.00%		50.00%	Mayfield Heights, OH		342		171
Deer Run	1987-1990		43.03%		43.03%	Twinsburg, OH		562		242
Eaton Ridge	2002-2004		50.00%		50.00%	Sagamore Hills, OH		260		130
Farmington Place	1980		100.00%		100.00%	Farmington, MI		153		153
Fenimore Court	1982		7.06%		50.00%	Detroit, MI		144		72
Fort Lincoln II	1979		45.00%		45.00%	Washington, D.C.		176		79
Fort Lincoln III & IV	1981		24.90%		24.90%	Washington, D.C.		306		76
Frenchtown Place	1975		8.24%		100.00%	Monroe, MI		151		151
Glendora Gardens	1983		1.99%		99.00%	Glendora, CA		105		104
Hamptons	1969		50.00%		50.00%	Beachwood, OH		651		326
Hunter’s Hollow	1990		50.00%		50.00%	Strongsville, OH		208		104
Legacy Arboretum	2008		49.00%		49.00%	Charlotte, NC		266		130

66

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

RESIDENTIAL GROUP
APARTMENTS (continued)

Name	Date of Opening/ Acquisition/ Expansion	Legal Ownership (1)		Pro-Rata Ownership (2)		Location	Leasable Units		Leasable Units at Pro-Rata %
Unconsolidated Apartment Communities (continued)
Legacy Crossroads	2008-2009		50.00%		50.00%	Cary, NC		344		172
Liberty Hills	1979-1986		50.00%		50.00%	Solon, OH		396		198
Lima Towers	1977		10.91%		6.94%	Lima, OH		200		14
Metropolitan Lofts	2005		50.00%		50.00%	Los Angeles, CA		264		132
Millender Center	1985		4.29%		100.00%	Detroit, MI		339		339
Miramar Towers	1980		6.35%		100.00%	Los Angeles, CA		157		157
Newport Landing	2002-2005		50.00%		50.00%	Coventry Township, OH		336		168
Noble Towers	1979		50.00%		50.00%	Pittsburgh, PA		133		67
North Port Village	1981		27.00%		27.00%	Port Huron, MI		251		68
Nu Ken Tower (Citizen’s Plaza)	1981		8.84%		50.00%	New Kensington, PA		101		51
Panorama Towers	1978		99.00%		99.00%	Panorama City, CA		154		152
Park Place Towers	1975		15.11%		100.00%	Mt. Clemens, MI		187		187
Parkwood Village	2001-2002		50.00%		50.00%	Brunswick, OH		204		102
Pebble Creek	1995-1996		50.00%		50.00%	Twinsburg, OH		148		74
Perrytown	1973		8.24%		100.00%	Pittsburgh, PA		231		231
Pine Grove Manor	1973		10.26%		100.00%	Muskegon Township, MI		172		172
Pine Ridge Valley	1967-1974, 2005-2007		50.00%		50.00%	Willoughby Hills, OH		1,309		655
Potomac Heights Village	1981		6.35%		100.00%	Keyser, WV		141		141
Residences at University Park	2002		40.00%		40.00%	Cambridge, MA		135		54
Riverside Towers	1977		8.30%		100.00%	Coshocton, OH		100		100
Settler’s Landing at Greentree	2000-2004		50.00%		50.00%	Streetsboro, OH		408		204
Shippan Avenue	1980		100.00%		100.00%	Stamford, CT		148		148
St. Mary’s Villa	2002		40.07%		40.07%	Newark, NJ		360		144
^*  Stratford Crossing	2007-2010		50.00%		50.00%	Wadsworth, OH		348		174
Surfside Towers	1970		50.00%		50.00%	Eastlake, OH		246		123
^+  Sutton Landing	2007-2009		50.00%		50.00%	Brimfield, OH		216		108
Tamarac	1990-2001		50.00%		50.00%	Willoughby, OH		642		321
The Springs	1981		6.35%		100.00%	La Mesa, CA		129		129
Tower 43	2002		100.00%		100.00%	Kent, OH		101		101

67

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate
January 31, 2010

RESIDENTIAL GROUP
APARTMENTS (continued)

Name	Date of Opening/ Acquisition/ Expansion	Legal Ownership (1)		Pro-Rata Ownership (2)		Location	Leasable Units		Leasable Units at Pro-Rata %
Unconsolidated Apartment Communities (continued)
Towne Centre Place	1975		6.86%		100.00%	Ypsilanti, MI		170		170
Twin Lake Towers	1966		50.00%		50.00%	Denver, CO		254		127
Uptown Apartments	2008		50.00%		50.00%	Oakland, CA		665		333
Village Square	1978		100.00%		100.00%	Williamsville, NY		100		100
Westwood Reserve	2002		50.00%		50.00%	Tampa, FL		340		170
Woodgate / Evergreen Farms	2004-2006		33.33%		33.33%	Olmsted Township, OH		348		116
Worth Street	2003		50.00%		50.00%	Manhattan, NY		330		165
Ziegler Place	1978		100.00%		100.00%	Livonia, MI		141		141
Unconsolidated Apartment Communities Subtotal								18,854		10,429
Unconsolidated Military Housing
^*  Air Force Academy	2007-2013		50.00%		50.00%	Colorado Springs, CO		427		214
^*  Midwest Millington	2008-2010		1.00%	^^		Memphis, TN		318		^^
^*  Navy Midwest	2006-2010		1.00%	^^		Chicago, IL		1,658		^^
Ohana Military Communities, Hawaii Increment I	2005-2008		1.00%	^^		Honolulu, HI		1,952		^^
^*  Ohana Military Communities, Hawaii Increment II	2007-2011		1.00%	^^		Honolulu, HI		1,175		^^
^*  Ohana Military Communities, Hawaii Increment III	2007-2011		1.00%	^^		Honolulu, HI		2,520		^^
^*  Ohana Military Communities, Hawaii Increment IV	2007-2014		1.00%	^^		Kaneohe, HI		917		^^
^*  Pacific Northwest Communities	2007-2010		20.00%	^^		Seattle, WA		2,986		^^
Unconsolidated Military Housing Subtotal								11,953		214
Unconsolidated Apartments Total								30,807		10,643
Combined Apartments Total								45,869		24,996
Federally Subsidized Housing (Total of 5 Buildings)								741
Total Apartment Units at January 31, 2010								46,610
Total Apartment Units at January 31, 2009								49,116

*	Property under construction as of January 31, 2010.
+	Property opened or acquired in 2009.
++	Expansion of property opened in 2009.
^	Property to open in phases.
^^	The Company’s share of residual cash flow ranges from 0-20% during the life cycle of the project.
(1)	Represents our share of a property’s profits and losses upon settlement of any preferred returns to which we or our partner(s) may be entitled.
(2)	Represents our share of a property’s profits and losses adjusted for any preferred returns to which we or our partner(s) may be entitled.
(3)	Operating properties identified for redevelopment.

68