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

Forest City Enterprises, Inc.

Supplemental Package

Three Months Ended April 30, 2010 and 2009

Forest City Enterprises, Inc. and Subsidiaries
Three Months Ended April 30, 2010 and 2009

Supplemental Package

NYSE: FCEA, FCEB

Index

Corporate Overview	2-3
Selected Financial Information
Forest City Enterprises, Inc.
Consolidated Balance Sheet Information	4-7
Consolidated Earnings Information	8-9
Supplemental Operating Information
Occupancy Data	10
Comparable Net Operating Income (NOI)	11
Comparable NOI Detail	12
NOI By Product Type	13
NOI By Core Market	14
Reconciliation of NOI to Net Loss	15
Results of Operations Discussion	16-17
EBDT Bridge	18
Reconciliation of Net Loss to EBDT	19-20
Schedules of Lease Expirations	21-22
Schedules of Significant Tenants	23-24
Development Pipeline	25-28
Supplemental Financial Information
Projects under Development Debt and Non-Recourse Debt	29
Scheduled Maturities Table	30-31
Upcoming Maturities Summary	32
Investments in and Advances to Affiliates	33-35
Real Estate Activity	36-39
Summary of EBDT	40-45

This Supplemental Package, together with other statements and information publicly disseminated by us, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements reflect management’s current views with respect to financial results related to future events and are based on assumptions and expectations that may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial or otherwise, may differ from the results discussed in the forward-looking statements. Risk factors discussed in Item 1A of our Form 10-K for the year ended January 31, 2010 and other factors that might cause differences, some of which could be material, include, but are not limited to, the impact of current lending and capital market conditions on our liquidity, ability to finance or refinance projects and repay our debt, the impact of the current economic environment on the ownership, development and management of our real estate portfolio, general real estate investment and development risks, vacancies in our properties, further downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, anchor store consolidations or closings, international activities, the impact of terrorist acts, risks associated with an investment in a professional sports team, our substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by our credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, 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. 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 $11.5 billion of assets in 27 states and the District of Columbia at April 30, 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 April 30, 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-Q for the three months ended April 30, 2010. 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%. Effective February 1, 2010, we adopted new accounting guidance on consolidation of VIEs that changes the approach on evaluating VIEs for consolidation. The impact of the new GAAP guidance was to consolidate one previously unconsolidated entity and deconsolidate a total of nine previously consolidated entities. The new guidance does not impact pro-rata consolidation. We provide reconciliations from the full consolidation method to the pro-rata consolidation method throughout our supplemental package. Please refer to our property listing for the detail of our consolidated and non-consolidated properties in our supplemental package for the year ended January 31, 2010 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 loss to EBDT see pages 17-20.

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 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 three months ended April 30, 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 on page 17), 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 loss, the most comparable financial measure calculated in accordance with GAAP and a reconciliation of NOI to net earnings (loss) for each strategic business unit are provided on page 15 and 40-45 of this document. A reconciliation from NOI to comparable NOI can be found on pages 11-12.

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

Annual Report on Form 10-K
A copy of the Annual Report on Form 10-K as filed with the Securities and Exchange Commission for the fiscal year ended January 31, 2010, as amended on Form 10-K/A filed April 28, 2010 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 – April 30, 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	$	1,570,040		$	27,214		$	818,075		$	2,360,901
Commercial
Retail centers		3,341,107			108,275			589,809			3,822,641
Office and other buildings		3,305,162			241,033			363,889			3,428,018
Corporate and other equipment		9,736			-			1			9,737
Total Completed rental properties		8,226,045			376,522			1,771,774			9,621,297
Projects under development
Under construction
Residential		770,048			185,199			9,618			594,467
Commercial
Retail centers		644,067			3,148			201,501			842,420
Office and other buildings(1)		319,422			221,845			340			97,917
Subtotal Under construction		1,733,537			410,192			211,459			1,534,804
Under development
Residential		121,846			-			8,027			129,873
Commercial
Retail centers		20,737			101			10,885			31,521
Office and other buildings(1)		740,853			257,495			9,252			492,610
Subtotal Under development		883,436			257,596			28,164			654,004
Total Projects under development		2,616,973			667,788			239,623			2,188,808
Land held for development or sale .		219,598			11,829			113,889			321,658
Total Real Estate		11,062,616			1,056,139			2,125,286			12,131,763
Less accumulated depreciation		(1,511,479	)		(57,875	)		(393,460	)		(1,847,064	)
Real Estate, net		9,551,137			998,264			1,731,826			10,284,699
Cash and equivalents		194,006			9,559			54,780			239,227
Restricted cash		376,896			91,587			77,798			363,107
Notes and accounts receivable, net		377,379			13,328			83,481			447,532
Investments in and advances to affiliates		229,632			(240,941	)		(157,084	)		313,489
Lease and mortgage procurement costs, net		406,449			40,961			30,870			396,358
Prepaid expenses and other deferred costs, net		208,706			20,247			76,489			264,948
Intangible assets, net		140,379			-			1,295			141,674
Total Assets	$	11,484,584		$	933,005		$	1,899,455		$	12,451,034

4

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Balance Sheet Information – April 30, 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 and notes payable, nonrecourse
Completed rental properties
Residential	$	1,055,860		$	19,339	$	652,945	$	1,689,466
Commercial
Retail centers		2,484,914			119,122		496,699		2,862,491
Office and other buildings		2,387,252			213,145		292,010		2,466,117
Total Completed rental properties		5,928,026			351,606		1,441,654		7,018,074
Projects under development
Under construction
Residential		510,048			144,994		35,917		400,971
Commercial
Retail centers		360,271			-		137,121		497,392
Office and other buildings(1)		47,248			30,973		-		16,275
Subtotal Under construction		917,567			175,967		173,038		914,638
Under development
Residential		3,938			-		-		3,938
Commercial
Retail centers		-			-		-		-
Office and other buildings(1)		263,174			128,442		36,292		171,024
Subtotal Under development		267,112			128,442		36,292		174,962
Total Projects under development		1,184,679			304,409		209,330		1,089,600
Land held for development or sale		62,658			4,305		53,964		112,317
Total Mortgage debt and notes payable, nonrecourse		7,175,363			660,320		1,704,948		8,219,991
Senior and subordinated debt		901,104			-		-		901,104
Construction payables		176,481			26,566		15,580		165,495
Accounts payable and accrued expenses		1,174,878			131,586		178,927		1,222,219
Deferred income taxes		424,120			-		-		424,120
Total Liabilities		9,851,946			818,472		1,899,455		10,932,929
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss		1,418,351			-		-		1,418,351
Accumulated other comprehensive loss		(86,267	)		-		-		(86,267	)
Total Shareholders’ Equity		1,332,084			-		-		1,332,084
Noncontrolling interest		300,554			114,533		-		186,021
Total Equity		1,632,638			114,533		-		1,518,105
Total Liabilities and Equity	$	11,484,584		$	933,005	$	1,899,455	$	12,451,034

   (1) Barclays Center Arenaand 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, 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

6

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 and notes payable, nonrecourse
Completed rental properties
Residential	$	1,234,111		$	33,596	$	558,891		$	1,759,406
Commercial
Retail centers		2,511,424			119,544		437,825			2,829,705
Office and other buildings		2,480,883			100,267		145,225			2,525,841
Total Completed rental properties		6,226,418			253,407		1,141,941			7,114,952
Projects under development
Under construction
Residential		499,952			144,993		35,242			390,201
Commercial
Retail centers		440,450			40,090		178,935			579,295
Office and other buildings(1)		190,990			101,058		1,574			91,506
Subtotal Under construction		1,131,392			286,141		215,751			1,061,002
Under development
Residential		1,830			-		-			1,830
Commercial
Retail centers		-			-		-			-
Office and other buildings(1)		195,849			78,713		61,148			178,284
Subtotal Under development		197,679			78,713		61,148			180,114
Total Projects under development		1,329,071			364,854		276,899			1,241,116
Land held for development or sale		64,384			4,348		55,107			115,143
Total Mortgage debt and notes payable, nonrecourse		7,619,873			622,609		1,473,947			8,471,211
Bank revolving credit facility		83,516			-		-			83,516
Senior and subordinated debt		1,076,424			-		-			1,076,424
Construction payables		218,072			26,666		47,284			238,690
Accounts payable and accrued expenses		976,616			57,276		121,126			1,040,466
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 Center Arenaand 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 April 30, 2010 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	281,719		$	13,167		$	87,539		$	356,091
Expenses
Operating expenses		160,980			6,405			53,636			208,211
Depreciation and amortization		61,945			1,791			12,246			72,400
Impairment of real estate		-			-			12,899			12,899
		222,925			8,196			78,781			293,510
Interest expense		(82,974	)		(5,139	)		(19,956	)		(97,791	)
Amortization of mortgage procurement costs		(2,667	)		(89	)		(553	)		(3,131	)
Gain on early extinguishment of debt		6,297			-			-			6,297
Interest and other income		6,817			899			750			6,668
Net gain on disposition of partial interests in rental properties		866			-			48			914
Earnings (loss) before income taxes		(12,867	)		642			(10,953	)		(24,462	)
Income tax expense (benefit)
Current		6,749			-			-			6,749
Deferred		(15,376	)		-			-			(15,376	)
		(8,627	)		-			-			(8,627	)
Equity in earnings (loss), including impairment of unconsolidated entities		(17,124	)		(6,444	)		10,953			273
Net loss		(21,364	)		(5,802	)		-			(15,562	)
Net loss attributable to noncontrolling interest		5,802			5,802			-			-
Net loss attributable to Forest City Enterprises, Inc.	$	(15,562	)	$	-		$	-		$	(15,562	)

8

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Earnings Information – Three Months Ended April 30, 2009 (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	$	311,541		$	12,419		$	90,875		$	2,301		$	392,298
Expenses
Operating expenses		194,823			5,645			63,078			344			252,600
Depreciation and amortization		65,934			1,407			17,580			631			82,738
Impairment of real estate		1,124			-			9,560			-			10,684
		261,881			7,052			90,218			975			346,022
Interest expense		(91,035	)		(3,432	)		(16,280	)		(995	)		(104,878	)
Amortization of mortgage procurement costs		(3,652	)		(160	)		(626	)		(24	)		(4,142	)
Loss on early extinguishment of debt		-			-			(176	)		-			(176	)
Interest and other income		6,808			140			473			-			7,141
Gain on disposition of rental properties		-			-			-			4,548			4,548
Earnings (loss) before income taxes		(38,219	)		1,915			(15,952	)		4,855			(51,231	)
Income tax expense (benefit)
Current		(7,383	)		-			-			3,829			(3,554	)
Deferred		(14,983	)		-			-			(1,947	)		(16,930	)
		(22,366	)		-			-			1,882			(20,484	)
Equity in earnings (loss), including impairment of unconsolidated entities		(15,866	)		18			15,952			-			68
Earnings (loss) from continuing operations		(31,719	)		1,933			-			2,973			(30,679	)
Discontinued operations, net of tax:
Operating earnings from rental properties		189			-			-			(189	)		-
Gain on disposition of rental properties		2,784			-			-			(2,784	)		-
		2,973			-			-			(2,973	)		-
Net earnings (loss)		(28,746	)		1,933			-			-			(30,679	)
Net earnings attributable to noncontrolling interest		(1,933	)		(1,933	)		-			-			-
Net loss attributable to Forest City Enterprises, Inc.	$	(30,679	)	$	-		$	-		$	-		$	(30,679	)

9

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Occupancy Data - April 30, 2010 and 2009

Retail and office occupancy as of April 30, 2010 and 2009 is based on square feet leased at the end of the fiscal quarter. Average Occupancy Year-to-Date as of April 30, 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 April 30, 2010 and 2009 represents total units occupied divided by total units available. Average Occupancy as of April 30, 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 three months ended April 30, 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
	April 30, 2010		April 30, 2010			April 30, 2009		April 30, 2009
Retail
Comparable		89.7%		90.0	%		89.2%		89.4	%
Total		88.4%		88.6	%		87.7%		88.1	%
Office
Comparable		89.8%		89.9	%		89.6%		89.6	%
Total		89.7%		89.7	%		89.3%		89.3	%
Residential(1)
Comparable		93.0%		93.7	%		91.8%		91.2	%
Total		91.1%		90.8	%		88.8%		85.5	%
Hotels
Comparable and Total				61.0	%				56.2	%
Comparable ADR and Total ADR			$	135.43				$	135.09

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

Occupancy Recap of Quarterly Supplemental Packages
	Occupancy As of															Average Occupancy Year-to-Date
	April 30,			January 31,			October 31,			July 31,			April 30,			April 30,			January 31,			October 31,			July 31,			April 30,
	2010			2010			2009			2009			2009			2010			2010			2009			2009			2009
Retail
Comparable		89.7	%		90.1	%		90.1	%		89.8	%		90.0	%		90.0	%		89.9	%		90.0	%		89.9	%		90.1	%
Total		88.4	%		88.8	%		88.4	%		88.1	%		87.7	%		88.6	%		88.6	%		88.4	%		88.3	%		88.1	%
Office
Comparable		89.8	%		90.3	%		89.4	%		89.4	%		90.3	%		89.9	%		90.1	%		89.7	%		89.3	%		90.4	%
Total		89.7	%		89.7	%		88.9	%		89.4	%		89.3	%		89.7	%		89.5	%		89.1	%		89.4	%		89.3	%
Residential(1)
Comparable		93.0	%		93.7	%		92.6	%		91.6	%		91.5	%		93.7	%		92.2	%		90.4	%		90.1	%		90.1	%
Total		91.1	%		92.3	%		91.1	%		89.7	%		88.8	%		90.8	%		87.8	%		86.5	%		85.8	%		85.5	%
Hotels
Comparable and Total																	61.0	%		69.1	%		68.5	%		64.3	%		56.2	%
Comparable ADR and Total ADR																$	135.43		$	140.01		$	139.56		$	137.56		$	135.09

       (1) Excludes military housing units.

10

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 the three months ended April 30, 2010 and 2009. The schedules below present Pro-Rata Comparable NOI for the three months ended April 30, 2010. The following schedule on page 12 presents 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 loss, is presented on page 15. A reconciliation of NOI to net earnings (loss) for each strategic business unit can be found on pages 40-45.

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

	Three Months Ended
	April 30, 2010
Retail		(1.5	%)
Office		0.8	%
Hotel		52.6	%
Residential		2.8	%
Total		0.6	%

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

Quarterly Historical Trends
	Three Months Ended
	April 30, 2010			January 31, 2010			October 31, 2009			July 31, 2009			April 30, 2009
Retail		(1.5	%)		(3.9	%)		(1.7	%)		(4.3	%)		(1.0	%)
Office		0.8	%		4.3	%		5.6	%		7.1	%		4.4	%
Hotel		52.6	%		(1.1	%)		6.2	%		(24.8	%)		(25.5	%)
Residential		2.8	%		(2.7	%)		(3.9	%)		(4.2	%)		(1.8	%)
Total		0.6	%		(0.5	%)		0.8	%		(1.4	%)		0.3	%

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	%

11

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income (dollars in thousands)
	Three Months Ended April 30, 2010														Three Months Ended April 30, 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	$	60,862		$	2,924		$	5,370		$	-	$	63,308		$	61,769		$	2,977		$	5,455		$	-	$	64,247			(1.5	%)		(1.5	%)
Total		64,546			2,924			5,583			-		67,205			63,386			2,474			5,509			481		66,902
Office Buildings
Comparable		57,976			2,599			4,777			-		60,154			57,940			2,595			4,341			-		59,686			0.1	%		0.8	%
Total		63,287			3,859			4,074			-		63,502			63,546			2,649			2,011			-		62,908
Hotels
Comparable		1,437			-			368			-		1,805			808			-			375			-		1,183			77.8	%		52.6	%
Total		1,437			-			368			-		1,805			808			-			375			-		1,183
Earnings from Commercial
Land Sales		275			-			-			-		275			2,736			591			-			-		2,145
Other(1)		(5,693	)		372			1,233			-		(4,832	)		(7,999	)		278			(169	)		-		(8,446	)
Total Commercial Group
Comparable		120,275			5,523			10,515			-		125,267			120,517			5,572			10,171			-		125,116			(0.2	%)		0.1	%
Total		123,852			7,155			11,258			-		127,955			122,477			5,992			7,726			481		124,692
Residential Group
Apartments
Comparable		24,048			417			6,736			-		30,367			24,289			777			6,035			-		29,547			(1.0	%)		2.8	%
Total		25,541			168			7,448			-		32,821			29,177			1,061			7,406			1,464		36,986
Military Housing
Comparable(2)		-			-			-			-		-			-			-			-			-		-
Total		6,477			-			370			-		6,847			7,698			(100	)		211			-		8,009
Other(1)		(2,327	)		99			-			-		(2,426	)		(10,320	)		33			(1	)		-		(10,354	)
Total Residential Group
Comparable		24,048			417			6,736			-		30,367			24,289			777			6,035			-		29,547			(1.0	%)		2.8	%
Total		29,691			267			7,818			-		37,242			26,555			994			7,616			1,464		34,641
Total Rental Properties
Comparable		144,323			5,940			17,251			-		155,634			144,806			6,349			16,206			-		154,663			(0.3	%)		0.6	%
Total		153,543			7,422			19,076			-		165,197			149,032			6,986			15,342			1,945		159,333
Land Development Group		(653	)		18			(266	)		-		(937	)		707			(54	)		117			-		878
The Nets		(10,430	)		(6,223	)		1,146			-		(3,061	)		(10,681	)		-			997			-		(9,684	)
Corporate Activities		(11,346	)		-			-			-		(11,346	)		(16,540	)		-			-			-		(16,540	)
Grand Total	$	131,114		$	1,217		$	19,956		$	-	$	149,853		$	122,518		$	6,932		$	16,456		$	1,945	$	133,987

(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. There were no write-offs of abandoned development projects for the three months ended April 30, 2010 compared to $14,393 at both full and pro-rata consolidation for the three months ended April 30, 2009.

(2)

Comparable NOI for Military Housing commences once the operating projects complete initial development phase.

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

13

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

14

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

	Three Months Ended April 30, 2010														Three Months Ended April 30, 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	$	281,719		$	13,167		$	87,539		$	-	$	356,091		$	311,541		$	12,419		$	90,875		$	2,301		$	392,298
Exclude straight-line rent adjustment (1)		(4,280	)		-			-			-		(4,280	)		(4,399	)		-			-			(12	)		(4,411	)
Adjusted revenues		277,439			13,167			87,539			-		351,811			307,142			12,419			90,875			2,289			387,887
Add interest and other income		6,817			899			750			-		6,668			6,808			140			473			-			7,141
Add equity in earnings (loss), including impairment of unconsolidated entities		(17,124	)		(6,444	)		10,953			-		273			(15,866	)		18			15,952			-			68
Exclude gain on disposition of unconsolidated entities		(48	)		-			48			-		-			-			-			-			-			-
Exclude impairment of unconsolidated real estate		12,899			-			(12,899	)		-		-			9,560			-			(9,560	)		-			-
Exclude depreciation and amortization of unconsolidated entities (see below)		11,852			-			(11,852	)		-		-			10,928			-			(10,928	)		-			-
Adjusted total income		291,835			7,622			74,539			-		358,752			318,572			12,577			86,812			2,289			395,096
Operating expenses		160,980			6,405			53,636			-		208,211			194,823			5,645			63,078			344			252,600
Add back non-Real Estate depreciation and amortization (b)		1,568			-			878			-		2,446			3,452			-			7,158			-			10,610
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		-			-			69			-		69			-			-			120			-			120
Exclude straight-line rent adjustment (2)		(1,242	)		-			-			-		(1,242	)		(1,636	)		-			-			-			(1,636	)
Exclude preference payment		(585	)		-			-			-		(585	)		(585	)		-			-			-			(585	)
Adjusted operating expenses		160,721			6,405			54,583			-		208,899			196,054			5,645			70,356			344			261,109
Net Operating Income		131,114			1,217			19,956			-		149,853			122,518			6,932			16,456			1,945			133,987
Interest expense		(82,974	)		(5,139	)		(19,956	)		-		(97,791	)		(91,035	)		(3,432	)		(16,280	)		(995	)		(104,878	)
Gain (loss) on early extinguishment of debt		6,297			-			-			-		6,297			-			-			(176	)		-			(176	)
Equity in earnings (loss), including impairment of unconsolidated entities		17,124			6,444			(10,953	)		-		(273	)		15,866			(18	)		(15,952	)		-			(68	)
Gain on disposition of unconsolidated entities		48			-			-			-		48			-			-			-			-			-
Impairment of unconsolidated real estate		(12,899	)		-			-			-		(12,899	)		(9,560	)		-			-			-			(9,560	)
Depreciation and amortization of unconsolidated entities (see above)		(11,852	)		-			11,852			-		-			(10,928	)		-			10,928			-			-
Net gain on disposition of rental properties		866			-			-			-		866			-			-			-			4,548			4,548
Impairment of consolidated real estate		-			-			-			-		-			(1,124	)		-			-			-			(1,124	)
Depreciation and amortization - Real Estate Groups (a)		(60,377	)		(1,791	)		(11,368	)		-		(69,954	)		(62,482	)		(1,407	)		(10,422	)		(631	)		(72,128	)
Amortization of mortgage procurement costs - Real Estate Groups (c)		(2,667	)		(89	)		(484	)		-		(3,062	)		(3,652	)		(160	)		(506	)		(24	)		(4,022	)
Straight-line rent adjustment (1) + (2)		3,038			-			-			-		3,038			2,763			-			-			12			2,775
Preference payment		(585	)		-			-			-		(585	)		(585	)		-			-			-			(585	)
Earnings (loss) before income taxes		(12,867	)		642			(10,953	)		-		(24,462	)		(38,219	)		1,915			(15,952	)		4,855			(51,231	)
Income tax provision		8,627			-			-			-		8,627			22,366			-			-			(1,882	)		20,484
Equity in earnings (loss), including impairment of unconsolidated entities		(17,124	)		(6,444	)		10,953			-		273			(15,866	)		18			15,952			-			68
Earnings (loss) from continuing operations		(21,364	)		(5,802	)		-			-		(15,562	)		(31,719	)		1,933			-			2,973			(30,679	)
Discontinued operations, net of tax		-			-			-			-		-			2,973			-			-			(2,973	)		-
Net earnings (loss)		(21,364	)		(5,802	)		-			-		(15,562	)		(28,746	)		1,933			-			-			(30,679	)
Net loss (earnings) attributable to noncontrolling interest		5,802			5,802			-			-		-			(1,933	)		(1,933	)		-			-			-
Net loss attributable to Forest City Enterprises, Inc.	$	(15,562	)	$	-		$	-		$	-	$	(15,562	)	$	(30,679	)	$	-		$	-		$	-		$	(30,679	)
(a) Depreciation and amortization - Real Estate Groups	$	60,377		$	1,791		$	11,368		$	-	$	69,954		$	62,482		$	1,407		$	10,422		$	631		$	72,128
(b) Depreciation and amortization - Non-Real Estate		1,568			-			878			-		2,446			3,452			-			7,158			-			10,610
Total depreciation and amortization	$	61,945		$	1,791		$	12,246		$	-	$	72,400		$	65,934		$	1,407		$	17,580		$	631		$	82,738
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	2,667		$	89		$	484		$	-	$	3,062		$	3,652		$	160		$	506		$	24		$	4,022
(d) Amortization of mortgage procurement costs - Non-Real Estate		-			-			69			-		69			-			-			120			-			120
Total amortization of mortgage procurement costs	$	2,667		$	89		$	553		$	-	$	3,131		$	3,652		$	160		$	626		$	24		$	4,142

15

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Results of Operations

Net Loss Attributable to Forest City Enterprises, Inc. –Net loss attributable to Forest City Enterprises, Inc. for the three months ended April 30, 2010 was $15,562,000 versus $30,679,000 for the three months ended April 30, 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:

• $17,610,000 ($29,342,000, pre-tax) related to the 2010 gain on disposition of partial interests inThe Grand, Lenox Club, andLenox Park, apartment communities in North Bethesda, Maryland, Arlington, Virginia and Silver Spring, Maryland, respectively, related to the formation of a new joint venture with an outside partner;

• $8,811,000 ($14,393,000, pre-tax) of decreased write-offs of abandoned development projects in 2010 compared to 2009;

• $4,619,000 ($7,545,000, pre-tax) of decreased company-wide severance and outplacement costs in 2010 compared to 2009; and

• $3,855,000 ($6,297,000, pre-tax) related to the 2010 gain on early extinguishment of debt on the exchange of a portion of our Senior Notes due 2011, 2015 and 2017 for a new issue of Series A preferred stock.

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

• $17,432,000 ($28,476,000, pre-tax) due to the transaction costs, of which $21,483,000 pre-tax relate to participation payments made to the ground lessor in accordance with the respective ground lease agreements, that were expensed related to the contribution of our ownership interest in six mixed–useUniversity Parklife science properties in Cambridge, Massachusetts to a joint venture with an outside partner that did not qualify for full gain recognition under accounting guidance for real estate sales; and

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

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 April 30, 2010 was $153,543,000 compared to $149,032,000 for the three months ended April 30, 2009, a 3.0% increase. A reconciliation of NOI to the most comparable GAAP measure, net earnings (loss), is presented on page 15. A reconciliation of NOI to net earnings (loss) for each strategic business unit can be found on pages 40-45.

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 April 30, 2010 was $165,197,000 compared to $159,333,000 for the three months ended April 30, 2009, a 3.7% increase.

Comparable NOI increased 0.6% for the three months ended April 30, 2010 compared to the prior year. Retail comparable NOI decreased 1.5% while office and hotel comparable NOI increased 0.8% and 52.6%, respectively, and our residential portfolio increased 2.8%.

16

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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 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 19. 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 April 30, 2010 increased by $28,863,000 or 69.4% to $70,467,000 from $41,604,000 for the three months ended April 30, 2009. Our Commercial and Residential Segments combined provided a pre-tax EBDT increase of $9,228,000. This is primarily the result of decreased write-offs of abandoned development projects of $14,393,000, the ramp up of new properties of $3,615,000 and the change in fair market value of derivatives between the comparable periods which were marked to market through interest expense of $2,367,000. These increases in the portfolio were partially offset by reduced EBDT from properties sold of $6,192,000, decreased Commercial outlot sales of $1,986,000 and the decrease in military housing of $1,292,000.

Our Land Segment provided a pre-tax EBDT decrease of $2,472,000, primarily due to lower margins on land sales.

Corporate pre-tax EBDT increased $16,196,000. This pre-tax EBDT increase includes decreased company-wide severance and outplacement costs in 2010 compared to 2009 of $7,545,000, gain on early extinguishment of debt related to the exchange of a portion of our Senior Notes of $6,297,000 and decreased interest expense of $4,705,000.

Reporting a smaller loss for the Nets primarily due to reduced amortization of intangible assets related to the purchase of the team resulting in a pre-tax EBDT increase of $6,474,000.

17

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

18

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

	Three Months Ended April 30,
	2010			2009
	(in thousands)
Net loss attributable to Forest City Enterprises, Inc.	$	(15,562	)	$	(30,679	)
Depreciation and amortization – Real Estate Groups(4)		69,954			72,128
Amortization of mortgage procurement costs – Real Estate Groups(4)		3,062			4,022
Deferred income tax expense – Real Estate Groups(5)		(10,243	)		(11,598	)
Current income tax expense on non-operating earnings:(5)
Net gain on disposition of partial interests in rental properties		14,492			-
Gain on disposition included in discontinued operations		-			3,785
Gain on disposition of unconsolidated entities		(768	)		-
Straight-line rent adjustment(2)		(3,038	)		(2,775	)
Preference payment(3)		585			585
Impairment of consolidated real estate		-			1,124
Impairment of unconsolidated real estate		12,899			9,560
Net gain on disposition of partial interests in rental properties		(866	)		-
Gain on disposition of unconsolidated entities		(48	)		-
Discontinued operations:(1)
Gain on disposition of rental properties		-			(4,548	)
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)	$	70,467		$	41,604

(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 April 30,						Three Months Ended April 30,
	2010			2009			2010			2009
Full Consolidation	$	61,945		$	65,934		$	2,667		$	3,652
Non-Real Estate		(1,568	)		(3,452	)		-			-
Real Estate Groups Full Consolidation		60,377			62,482			2,667			3,652
Real Estate Groups related to noncontrolling interest		(1,791	)		(1,407	)		(89	)		(160	)
Real Estate Groups Unconsolidated		11,368			10,422			484			506
Real Estate Groups Discontinued Operations		-			631			-			24
Real Estate Groups Pro-Rata Consolidation	$	69,954		$	72,128		$	3,062		$	4,022

19

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

	Three Months Ended April 30,
	2010			2009
	(in thousands)
(A)       Operating earnings
Current	$	(6,975	)	$	(7,383	)
Deferred		2,644			(10,840	)
		(4,331	)		(18,223	)
(B)       Impairment of consolidated and unconsolidated real estate
Deferred - Consolidated real estate		-			(436	)
Deferred - Unconsolidated real estate		(5,003	)		(3,707	)
		(5,003	)		(4,143	)
(C)       Net gain on disposition of partial interests in rental properties
Current		14,492			-
Deferred		(13,804	)		-
		688			-
(D)       Gain on disposition of unconsolidated entities
Current		(768	)		-
Deferred		787			-
		19			-
Subtotal (A) (B) (C) (D)
Current		6,749			(7,383	)
Deferred		(15,376	)		(14,983	)
Income tax expense		(8,627	)		(22,366	)
(E)       Discontinued operations
Operating earnings
Current		-			44
Deferred		-			74
		-			118
Gain on disposition of rental properties
Current		-			3,785
Deferred		-			(2,021	)
		-			1,764
		-			1,882
Grand Total (A) (B) (C) (D) (E)
Current		6,749			(3,554	)
Deferred		(15,376	)		(16,930	)
	$	(8,627	)	$	(20,484	)
Recap of Grand Total:
Real Estate Groups
Current	$	8,519		$	81
Deferred		(10,243	)		(11,598	)
		(1,724	)		(11,517	)
Non-Real Estate Groups
Current		(1,770	)		(3,635	)
Deferred		(5,133	)		(5,332	)
		(6,903	)		(8,967	)
Grand Total	$	(8,627	)	$	(20,484	)

20

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Retail Lease Expirations as of April 30, 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		231		521,167		4.01	%	$	13,500,600		4.69	%	$	32.13
2011		349		1,221,342		9.39			28,697,580		9.97			28.50
2012		256		957,052		7.36			23,158,961		8.05			28.24
2013		243		1,017,417		7.82			25,564,644		8.88			28.25
2014		230		1,069,226		8.22			22,346,487		7.77			27.15
2015		181		794,690		6.11			18,156,476		6.31			26.94
2016		219		1,188,843		9.14			32,304,640		11.23			37.09
2017		149		1,008,915		7.76			22,328,479		7.76			25.98
2018		164		844,024		6.49			18,375,890		6.39			23.87
2019		122		1,023,856		7.87			22,639,364		7.87			24.16
2020		61		690,891		5.31			11,458,448		3.98			21.58
Thereafter		93		2,668,489		20.52			49,202,420		17.10			22.65
Total		2,298		13,005,912		100.00	%	$	287,733,989		100.00	%	$	26.78

(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.

21

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Office Lease Expirations as of April 30, 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		83		1,052,167		8.91	%	$	21,243,749		6.93	%	$	24.03
2011		70		712,437		6.03			14,077,860		4.59			26.41
2012		85		1,113,403		9.43			27,263,820		8.89			30.20
2013		78		1,179,392		9.99			27,260,086		8.89			24.56
2014		47		907,032		7.68			17,142,214		5.59			29.91
2015		17		323,802		2.74			5,974,438		1.95			19.54
2016		21		420,475		3.56			9,501,837		3.10			24.73
2017		19		278,620		2.36			8,213,882		2.68			31.80
2018		17		1,060,998		8.98			30,255,361		9.87			32.42
2019		18		706,619		5.98			12,688,368		4.14			25.60
2020		9		937,984		7.94			26,736,144		8.72			35.31
Thereafter		33		3,115,659		26.40			106,231,003		34.65			38.64
Total		497		11,808,588		100.00	%	$	306,588,762		100.00	%	$	30.94

(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.

22

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Retail Tenants as of April 30, 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		3.96	%
Bass Pro Shops, Inc.		3		510,855		3.93
Regal Entertainment Group		5		381,461		2.93
TJX Companies		10		313,861		2.41
The Gap		23		290,015		2.23
The Home Depot		2		282,000		2.17
Dick’s Sporting Goods		5		257,486		1.98
The Limited		39		233,010		1.79
Abercrombie & Fitch Stores, Inc.		29		212,480		1.63
Best Buy		5		161,053		1.24
Footlocker, Inc.		38		145,081		1.12
Pathmark Stores, Inc.		2		123,500		0.95
American Eagle Outfitters		18		104,067		0.80
Subtotal		185		3,529,966		27.14
All Others		2,113		9,475,946		72.86
Total		2,298		13,005,912		100.00	%

23

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Office Tenants as of April 30, 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		865,185		7.33	%
Millennium Pharmaceuticals, Inc.		635,908		5.39
U.S. Government		614,218		5.20
District of Columbia		540,483		4.58
Morgan Stanley & Co.		444,685		3.77
Securities Industry Automation Corp.		433,971		3.68
Wellchoice, Inc.		392,514		3.32
JP Morgan Chase & Co.		385,254		3.26
Forest City Enterprises, Inc.(1)		366,786		3.11
Bank of New York		323,043		2.74
National Grid		254,034		2.15
Alkermes, Inc.		210,248		1.78
Clearbridge Advisors, LLC, a Legg Mason Company		193,249		1.64
Covington & Burling, LLP		160,565		1.36
Seyfarth Shaw, LLP		96,909		0.80
Subtotal		5,917,052		50.11
All Others		5,891,536		49.89
Total		11,808,588		100.00	%

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

24

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline
April 30, 2010
2010 Openings and Acquisitions (2)

												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:
Village at Gulfstream Park (d)	Hallandale Beach, FL	D	Q1-10		50.0%		50.0%	$	0.0	$	204.6	$	102.3		511,000	(e)	511,000
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	(f)
Total Openings and Acquisitions(g)								$	326.7	$	531.3	$	249.3		1,142,000

See footnotes on page 28.

25

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline
April 30, 2010
Under Construction (5)

												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 (d) (h)	Manhattan, NY	D	Q2-10	35.0%		50.0%		$	0.0	$	398.1	$	199.1		527,000		527,000		93%
Ridge Hill (i)	Yonkers, NY	D	2011/2012	70.0%		100.0%			798.7		798.7		798.7		1,336,000		1,336,000	(m)	31%
								$	798.7	$	1,196.8	$	997.8		1,863,000		1,863,000
Residential:
Presidio Landmark	San Francisco, CA	D	Q3-10	100.0%		100.0%		$	110.9	$	110.9	$	110.9		161
Beekman (i)	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 (j)	Brooklyn, NY	D	2012	23.3%		23.3%		$	911.1	$	911.1	$	212.3		670,000	18,000 seats		(n)
Total Under Construction (k)								$	2,696.4	$	3,094.5	$	1,934.0
Residential Phased-In Units (d) (i):														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	-	(o)	-	(o)	$	0.0	$	146.2	$	0.0	270,000

See footnotes on page 28.

Military Housing – see footnote (p).

26

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline
April 30, 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	$	3,094.5	$	398.1		$	2,696.4	$	961.5		$	199.1		$	1,934.0
Total Loan Draws and Other Sources at Completion(2)		1,999.6		285.0			1,714.6		491.6			142.5			1,365.5
Net Equity at Completion	$	1,094.9	$	113.1		$	981.8	$	469.9		$	56.6		$	568.5
Net Costs Incurred to Date	$	1,556.2	$	354.6		$	1,201.6	$	186.1		$	177.3		$	1,192.8
Loan Draws and Other Sources to Date		516.7		228.9			287.8		(276.9	)		114.4			679.1
Net Equity to Date	$	1,039.5	$	125.7		$	913.8	$	463.0		$	62.9		$	513.7
% of Total Equity		95%					93%								90%
Remaining Costs	$	1,538.3	$	43.5		$	1,494.8	$	775.4		$	21.8		$	741.2
Remaining Loan Draws and Other Sources(3)		1,482.9		56.1			1,426.8		768.5			28.1			686.4
Remaining Equity	$	55.4	$	(12.6	)	$	68.0	$	6.9		$	(6.3	)	$	54.8
% of Total Equity		5%					7%								10%

(1)	This schedule includes only the five properties listed on page 26. This does not include costs associated with phased-in units, operating property renovations and military housing.
(2)	“Other Sources” includes estimates of third party subsidies and tax credit proceeds. The timing and the amounts may differ from our estimates.
(3)	One 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 $45.0 million at 100% and at full consolidation, and $31.5 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		1,413		-
Carolinas		1,322		872		788
Ohio		1,105		699		470
Texas		1,023		765		-
Arizona		964		546		-
Stapleton - Denver, CO		245		164		1,474
Central Station - Chicago, IL		30		30		-
Other		1,159		905		-
Total		10,525		7,730		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. The Land Development Group may choose 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. Typically these options are in the form of purchase agreements with contingencies for the satisfaction of due diligence reviews.

27

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline

April 30, 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 variable interest entity (“VIE”).
(c)	Cost at pro-rata share represents Forest City’s share of cost, based on the Company’s pro-rata ownership of each property (a non-GAAP measure). Under the pro-rata consolidation method of accounting the Company determines its pro-rata share by multiplying its pro-rata ownership by the total cost of the applicable property.
(d)	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.
(e)	Includes 89,000 square feet of office space.
(f)	Includes 85,000 square feet of retail space.
(g)	The difference between the full consolidation cost amount (GAAP) of $326.7 million to the Company’s pro-rata share (a non-GAAP measure) of $249.3 million consists of a reduction to full consolidation for noncontrolling interest of $179.7 million of cost and the addition of its share of cost for unconsolidated investments of $102.3 million.
(h)	Phased opening includes the total cost and square footage of the center, including Costco which opened in the fourth quarter of 2009 and Best Buy which opened in the first quarter of 2010. 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.
(i)	Phased-in openings. Costs are representative of the total project.
(j)	The strategic partnership with entities controlled by Mikhail Prokhorov closed on May 12, 2010. As a result, the Company’s legal and pro-rata ownership will increase to approximately 27%.
(k)	The difference between the full consolidation cost amount (GAAP) of $2,696.4 million to the Company’s pro-rata share (a non-GAAP measure) of $1,934.0 million consists of a reduction to full consolidation for noncontrolling interest of $961.5 million of cost and the addition of its share of cost for unconsolidated investments of $199.1 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 162,000 square feet of office space.
(n)	The Nets, a member of the NBA, has a 37 year license agreement to use the arena.
(o)	This is a fee development project, owned by the City of Las Vegas. Therefore, these costs are not included on the full consolidation or pro-rata balance sheet.
(p)	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 page 12 for net fee revenue included in NOI). The following phases still have a percentage of units under construction:

		Anticipated	FCE	Cost at Full		Total Cost
Property	Location	Opening	Pro-Rata %	Consolidation		at 100%		No. of Units
				(in millions)
Military Housing -(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				$	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.

28

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 April 30, 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	$	101,083	$	42,387	$	66,931	$	125,627
Variable
Taxable		879,696		200,036		122,399		802,059
Tax-Exempt		203,900		61,986		20,000		161,914
Total outstanding on projects under development(1)	$	1,184,679	$	304,409	$	209,330	$	1,089,600
Commitment
Fixed	$	121,145	$	42,387	$	67,959	$	146,717
Variable
Taxable		1,349,986		272,403		141,847		1,219,430
Tax-Exempt		203,900		61,986		20,000		161,914
Total commitment	$	1,675,031	$	376,776	$	229,806	$	1,528,061

(1) Proceeds from outstanding debt of $17,200 and $17,988, 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 Debt

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

We use taxable and tax-exempt nonrecourse debt for our real estate projects. For 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. 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 12 months. During the three months ended April 30, 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	$	4,900	$	490	$	2,500	$	6,910
Loan extensions/additional fundings		128,301		15,222		4,000		117,079
	$	133,201	$	15,712	$	6,500	$	123,989

29

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Debt(dollars in thousands)
As of April 30, 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		$	247,078		$	44,713		$	42,472		$	244,837			$	303,281		$	3,963		$	99,956		$	399,274
Weighted average rate			7.97	%		10.30	%		4.22	%		6.90	%			6.81	%		4.92	%		6.82	%		6.83	%
Variable:
Variable-rate debt			432,757			3,057			178,901			608,601				654,168			238,192			55,884			471,860
Weighted average rate			3.54	%		7.08	%		1.95	%		3.05	%			4.13	%		4.62	%		3.55	%		3.81	%
Tax-Exempt			-			-			3,305			3,305				132,430			67			-			132,363
Weighted average rate			-	%		-	%		1.67	%		1.67	%			2.65	%		3.80	%		-	%		2.65	%
Total variable-rate debt			432,757			3,057			182,206			611,906				786,598			238,259			55,884			604,223
Total Nonrecourse Debt		$	679,835		$	47,770		$	224,678		$	856,743			$	1,089,879		$	242,222		$	155,840		$	1,003,497
Weighted Average Rate			5.15	%		10.10	%		2.38	%		4.15	%			4.70	%		4.62	%		5.65	%		4.86	%
	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		$	316,113		$	8,120		$	50,603		$	358,596			$	766,986		$	26,172		$	75,656		$	816,470
Weighted average rate			5.96	%		6.37	%		5.93	%		5.95	%			6.09	%		7.38	%		6.09	%		6.05	%
Variable:
Variable-rate debt			704,077			84,779			50,757			670,055				46,411			-			1,466			47,877
Weighted average rate			3.75	%		3.54	%		3.76	%		3.77	%			6.05	%		-	%		2.54	%		5.94	%
Tax-Exempt			204,616			62,057			-			142,559				91,565			77			-			91,488
Weighted average rate			2.52	%		2.52	%		-	%		2.52	%			2.83	%		3.78	%		-	%		2.83	%
Total variable-rate debt			908,693			146,836			50,757			812,614				137,976			77			1,466			139,365
Total Nonrecourse Debt		$	1,224,806		$	154,956		$	101,360		$	1,171,210			$	904,962		$	26,249		$	77,122		$	955,835
Weighted Average Rate			4.11	%		3.28	%		4.84	%		4.29	%			5.76	%		7.37	%		6.02	%		5.74	%

30

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Debt(dollars in thousands)(continued)
As of April 30, 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	$	484,686		$	69,326		$	156,104		$	571,464			$	1,757,757		$	109,505		$	709,579		$	2,357,831
Weighted average rate		5.96	%		5.83	%		5.38	%		5.82	%			5.81	%		5.99	%		5.88	%		5.82	%
Variable:
Variable-rate debt		12,414			-			20,002			32,416				640,000			1,500			33,040			671,540
Weighted average rate		1.45	%		-	%		4.48	%		3.32	%			6.40	%		-	%		1.33	%		6.17	%
Tax-Exempt		815			82			-			733				380,209			8,710			227,223			598,722
Weighted average rate		3.80	%		3.78	%		-	%		3.80	%			1.37	%		2.25	%		1.79	%		1.52	%
Total variable-rate debt		13,229			82			20,002			33,149				1,020,209			10,210			260,263			1,270,262
Total Nonrecourse Debt	$	497,915		$	69,408		$	176,106		$	604,613			$	2,777,966		$	119,715		$	969,842		$	3,628,093
Weighted Average Rate		5.85	%		5.83	%		5.27	%		5.68	%			5.34	%		5.64	%		4.76	%		5.17	%
	Total
							Plus
				Less			Unconsolidated
	Full			Noncontrolling			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	3,875,901		$	261,799		$	1,134,370		$	4,748,472
Weighted average rate		6.11	%		6.82	%		5.85	%		6.01	%
Variable:
Variable-rate debt		2,489,827			327,528			340,050			2,502,349
Weighted average rate		4.52	%		4.34	%		2.58	%		4.28	%
Tax-Exempt		809,635			70,993			230,528			969,170
Weighted average rate		2.04	%		2.49	%		1.79	%		1.95	%
Total variable-rate debt		3,299,462			398,521			570,578			3,471,519
Total Nonrecourse Debt	$	7,175,363		$	660,320		$	1,704,948		$	8,219,991
Weighted Average Rate		5.10	%		5.12	%		4.64	%		5.01	%

31

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

The following tables provide detail of our total debt maturities for 2010, 2011 and 2012 as of April 30, 2010:

Upcoming Maturities Summary(in thousands)
As of April 30, 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 Debt)	$	1,145,700	$	465,865	$	679,835	$	47,770	$	224,678	$	856,743
Less: Scheduled Payments		87,124		28,211		58,913		4,717		15,047		69,243
Net Maturities		1,058,576		437,654		620,922		43,053		209,631		787,500
Closed Loans / To be Fully Amortized(2)		334,053		224,640		109,413		43,048		120,545		186,910
Committed Deals / Automatic Extensions(2)		99,219		9,001		90,218		-		5,218		95,436
Extension Available(1) (2)		84,862		67,865		16,997		-		14,296		31,293
Subtotal		518,134		301,506		216,628		43,048		140,059		313,639
Remaining to Finance	$	540,442	$	136,148	$	404,294	$	5	$	69,572	$	473,861

			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 Debt)	$	1,398,016	$	308,137	$	1,089,879	$	242,222	$	155,840	$	1,003,497
Less: Scheduled Payments		92,833		27,546		65,287		2,630		15,188		77,845
Add: Corporate Debt		53,891		-		53,891		-		-		53,891
Net Maturities		1,359,074		280,591		1,078,483		239,592		140,652		979,543
Closed Loans / To be Fully Amortized(2)		59,558		233		59,325		45,937		117		13,505
Committed Deals / Automatic Extensions(2)		52,144		52,144		-		-		26,072		26,072
Extension Available(1) (2)		485,682		8,882		476,800		113,575		4,441		367,666
Subtotal		597,384		61,259		536,125		159,512		30,630		407,243
Remaining to Finance	$	761,690	$	219,332	$	542,358	$	80,080	$	110,022	$	572,300

			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 Debt)	$	1,472,122	$	247,316	$	1,224,806	$	154,956	$	101,360	$	1,171,210
Less: Scheduled Payments		78,428		25,363		53,065		2,808		14,750		65,007
Add: Corporate Debt(3)		-		-		-		-		-		-
Net Maturities		1,393,694		221,953		1,171,741		152,148		86,610		1,106,203
Closed Loans / To be Fully Amortized(2)		12,979		1,246		11,733		-		19,623		31,356
Committed Deals / Automatic Extensions(2)		63,911		-		63,911		942		-		62,969
Extension Available(1) (2)		857,411		26,432		830,979		134,353		13,216		709,842
Subtotal		934,301		27,678		906,623		135,295		32,839		804,167
Remaining to Finance	$	459,393	$	194,275	$	265,118	$	16,853	$	53,771	$	302,036

(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)	Reflects activity through June 8, 2010.
(3)	The credit facility amount of $0 outstanding as of April 30, 2010 has a maximum commitment of $500,000. Based on specific capital raising events through April 30, 2010, a permanent reduction in available borrowings of $2,972 became effective May 5, 2010. The remaining availability is further reduced by $72,577 of outstanding letters of credit and $53,891 reserve for retirement of indebtedness.

32

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:

	April 30, 2010		January 31, 2010
	(in thousands)
Members’ and partners’ equity, as below	$	639,296	$	557,456
Equity of other members and partners		540,229		513,708
Company’s investment in partnerships		99,067		43,748
Basis differences		58,017		21,498
Advances to and on behalf of other affiliates		72,548		200,097
Total Investments in and Advances to Affiliates	$	229,632	$	265,343

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

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
	April 30, 2010			January 31, 2010			April 30, 2010			January 31, 2010
	(in thousands)
Balance Sheet:
Real Estate
Completed rental properties	$	5,091,433		$	4,373,423		$	1,771,774		$	1,368,451
Projects under development		539,839			771,521			239,623			305,420
Land held for development or sale		268,508			271,129			113,889			116,863
Total Real Estate		5,899,780			5,416,073			2,125,286			1,790,734
Less accumulated depreciation		(848,619	)		(721,908	)		(393,460	)		(326,169	)
Real Estate, net		5,051,161			4,694,165			1,731,826			1,464,565
Restricted cash - Military housing bond funds		423,555			481,615			4,075			6,149
Other restricted cash		238,698			222,752			73,723			62,257
Other assets		664,720			501,169			246,915			173,799
Total Assets	$	6,378,134		$	5,899,701		$	2,056,539		$	1,706,770
Mortgage debt and notes payable, nonrecourse	$	5,246,714		$	4,421,870		$	1,704,948		$	1,345,207
Other liabilities		492,124			920,375			194,507			297,150
Total Liabilities		5,738,838			5,342,245			1,899,455			1,642,357
Members’ and partners’ equity		639,296			557,456			157,084			65,246
Noncontrolling interest		-			-			-			(833	)
Total Equity		639,296			557,456			157,084			64,413
Total Liabilities and Members’ and Partners’ Equity	$	6,378,134		$	5,899,701		$	2,056,539		$	1,706,770

33

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Investments in and Advances to Affiliates(continued)

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Three Months Ended April 30,	2010			2009			2010			2009
	(in thousands)
Operations:
Revenues	$	236,404		$	225,765		$	87,539		$	90,875
Equity in earnings of unconsolidated entities on a pro-rata basis		-			-			273			68
Operating expenses		(164,573	)		(148,345	)		(53,636	)		(63,078	)
Interest expense		(62,868	)		(55,985	)		(19,956	)		(16,456	)
Impairment of real estate(1)		(1,457	)		-			(743	)		-
Depreciation and amortization		(38,129	)		(44,855	)		(12,799	)		(18,206	)
Interest and other income		2,465			5,131			750			473
Noncontrolling interest		-			-			(6,444	)		18
Loss from continuing operations		(28,158	)		(18,289	)		(5,016	)		(6,306	)
Discontinued operations:
Operating earnings from rental properties		-			546			-			-
Net loss (pre-tax)		(28,158	)		(17,743	)		(5,016	)		(6,306	)
Impairment of investment in unconsolidated entities(1)		(12,156	)		(9,560	)		(12,156	)		(9,560	)
Gain on disposition of equity method investments(2)		48			-			48			-
Net loss (pre-tax) from unconsolidated entities	$	(40,266	)	$	(27,303	)	$	(17,124	)	$	(15,866	)

34

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)
		Three Months Ended April 30,
		2010		2009		2010		2009
				(in thousands)
Impairment of real estate:
Old Stone Crossing at Caldwell Creek (Mixed-Use Land Development)	(Charlotte, North Carolina)	$	1,457	$	-	$	743	$	-
Impairment of investment in unconsolidated entities:
Office Buildings:
818 Mission Street	(San Francisco, California)	$	4,018	$	-	$	4,018	$	-
Bulletin Building	(San Francisco, California)		3,543		-		3,543		-
Metreon (Specialty Retail Center)	(San Francisco, California)		4,595		-		4,595		-
Apartment Communities:
Millender Center	(Detroit, Michigan)		-		4,252		-		4,252
Metropolitan Lofts	(Los Angeles, California)		-		1,039		-		1,039
Residences at University Park	(Cambridge, Massachusetts)		-		855		-		855
Classic Residence by Hyatt (Supported-living Apartments)	(Yonkers, New York)		-		3,152		-		3,152
Old Stone Crossing at Caldwell Creek (Mixed-Use Land Development)	(Charlotte, North Carolina)		-		122		-		122
Other			-		140		-		140
Total impairment of investment in unconsolidated entities		$	12,156	$	9,560	$	12,156	$	9,560
Total impairment of unconsolidated entities		$	13,613	$	9,560	$	12,899	$	9,560

(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)
		Three Months Ended April 30,
		2010		2009		2010		2009
				(in thousands)
Gain on disposition of equity method investments:
El Centro Mall (Specialty Retail Center)	(El Centro, California)	$	48	$	-	$	48	$	-

35

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

The following is a summary of the real estate activity of Forest City Rental Properties Corporation (“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)
	Three Months Ended
	April 30,			For the Years Ended January 31,
	2010			2010			2009
				(in thousands)
Rental Properties – Real Estate Activity
Real estate
Completed rental properties	$	9,611,560		$	9,547,444		$	9,353,924
Projects under development		2,188,808			2,346,471			2,128,065
Land held for development or sale		125,286			122,368			116,675
Total real estate - FCRPC		11,925,654			12,016,283			11,598,664
Less accumulated depreciation		(1,841,132	)		(1,856,483	)		(1,698,362	)
Real estate, net - FCRPC	$	10,084,522		$	10,159,800		$	9,900,302
Plus real estate, net - Land Group and Corporate		200,177			206,778			186,673
Real estate, net - Forest City Enterprises	$	10,284,699		$	10,366,578		$	10,086,975
Real estate activity during the year
Completed rental properties
Capital expenditures	$	8,183		$	59,599		$	99,130
Transferred from projects under development		308,179			469,479			729,370
Acquisitions		-			-			98,160
Other		(6,029	)		(146,187	)		116,679
Total additions		310,333			382,891			1,043,339
Dispositions		(246,217	)   (1)		(189,371	)   (2)		(147,005	)   (3)
Completed rental properties, net additions		64,116			193,520			896,334
Projects under development
New development		162,130			732,880			1,023,035
Transferred to completed rental properties		(308,179	)		(469,479	)		(729,370	)
Cost of land sales		(876	)		(44,995	)		(34,391	)
Other		(10,738	)		-			41,572	(6)
Projects under development, net additions		(157,663	)		218,406			300,846
Land held for development or sale, net additions		2,918			5,693			26,524
Increase (decrease) in real estate, at cost	$	(90,629	)	$	417,619		$	1,223,704

36

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate Activity — (continued)

							Plus
				Less			Unconsolidated			Plus		Pro-Rata
	Full			Noncontrolling			Investments			Discontinued		Consolidation
Three Months Ended April 30,	Consolidation			Interest			at Pro-Rata			Operations		(Non-GAAP)
	(in thousands)
2010
Real estate
Completed rental properties	$	8,216,309		$	376,522		$	1,771,773		$	-	$	9,611,560
Projects under development		2,616,973			667,788			239,623			-		2,188,808
Land held for development or sale		74,899			5,940			56,327			-		125,286
Total real estate - FCRPC		10,908,181			1,050,250			2,067,723			-		11,925,654
Less accumulated depreciation		(1,505,549	)		(57,876	)		(393,459	)		-		(1,841,132	)
Real estate, net - FCRPC	$	9,402,632		$	992,374		$	1,674,264		$	-	$	10,084,522
Plus real estate, net - Land Group and Corporate		148,505			5,890			57,562			-		200,177
Real estate, net - Forest City Enterprises	$	9,551,137		$	998,264		$	1,731,826		$	-	$	10,284,699
Real estate activity during the year
Completed rental properties
Capital expenditures	$	6,574		$	(42	)	$	1,567		$	-	$	8,183
Transferred from projects under development		334,869			111,563			84,873			-		308,179
Acquisitions		-			-			-			-		-
Other(7)		(111,103	)		(8,201	)		96,873			-		(6,029	)
Total additions		230,340			103,320			183,313			-		310,333
Dispositions of partial interests(1)		(484,096	)		(17,868	)		220,011			-		(246,217	)
Completed rental properties, net additions		(253,756	)		85,452			403,324			-		64,116
Projects under development
New development		206,074			52,925			8,981			-		162,130
Transferred to completed rental properties		(334,869	)		(111,563	)		(84,873	)		-		(308,179	)
Cost of land sales		(876	)		-			-			-		(876	)
Other(5)		105,474			126,307			10,095			-		(10,738	)
Projects under development, net additions		(24,197	)		67,669			(65,797	)		-		(157,663	)
Land held for development or sale, net additions		1,861			108			1,165			-		2,918
Increase (decrease) in real estate, at cost	$	(276,092	)	$	153,229		$	338,692		$	-	$	(90,629	)

37

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(4)		(57,623	)		29,656			(58,908	)		-			(146,187	)
Total additions		362,993			52,963			72,861			-			382,891
Dispositions(2)		(93,875	)		-			(95,496	)		-			(189,371	)
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(4)		13,031			(94,407	)		9,241			-			116,679
Total additions		776,343			(78,465	)		188,531			-			1,043,339
Dispositions(3)		(128,010	)		(17,820	)		(5,487	)		(31,328	)		(147,005	)
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(6)		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

38

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate Activity – (continued)

(1)	Reflects the dispositions of partial interests in the following apartment communities in the Washington, D.C. metropolitan area;The Grand(549 units),Lenox Club(385 units),Lenox Park(406 units), and the following office buildings in Cambridge, Massachusetts;35 Landsdowne Street(202,000 square feet),40 Landsdowne Street(215,000 square feet),45/75 Sidney Street(277,000 square feet),65/80 Landsdwone Street(122,000 square feet),88 Sidney Street(145,000 square feet), andJackson Building(202,000 square feet).
(2)	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).
(3)	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).
(4)	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.
(5)	Primarily reflects the impact on projects under development based on the adoption of the new GAAP accounting guidance on consolidation of VIEs. Upon adoption of the new guidance effective February 1, 2010, theBarclays Center Arenabecame a consolidated entity and we deconsolidated theVillage at Gulfstream. The remaining amounts are miscellaneous non-cash changes to projects under development.
(6)	Primarily reflects changes in accounting method between full consolidation and equity method forWaterfront Station, Village at Gulfstream,Shops at Wiregrass,and 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).
(7)	Primarily reflects the impact on completed rental properties based on the adoption of the new accounting guidance discussed in (5) above. Upon adoption of the new guidance, seven Residential entities and one Commercial entity in the operating portfolio were deconsolidated. The remaining amounts are miscellaneous non-cash changes to completed rental properties.

39

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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 April 30, 2010 and 2009(in thousands)

	Commercial Group 2010													Commercial Group 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	$	221,972		$	11,850	$	35,504		$	-	$	245,626		$	235,627		$	10,980		$	27,585		$	813		$	253,045
Exclude straight-line rent adjustment		(3,825	)		-		-			-		(3,825	)		(4,395	)		-			-			(12	)		(4,407	)
Adjusted revenues		218,147			11,850		35,504			-		241,801			231,232			10,980			27,585			801			248,638
Add interest and other income		1,946			625		594			-		1,915			585			(89	)		222			-			896
Add equity in earnings (loss), including impairment of unconsolidated entities		(8,701	)		-		8,701			-		-			836			1			(835	)		-			-
Exclude gain on disposition of unconsolidated entities		(48	)		-		48			-		-			-			-			-			-			-
Exclude impairment of unconsolidated entities		12,156			-		(12,156	)		-		-			-			-			-			-			-
Exclude depreciation and amortization of unconsolidated entities		5,923			-		(5,923	)		-		-			4,152			-			(4,152	)		-			-
Adjusted total income		229,423			12,475		26,768			-		243,716			236,805			10,892			22,820			801			249,534
Operating expenses		106,878			5,320		15,510			-		117,068			114,906			4,900			15,094			320			125,420
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		521			-		-			-		521			1,643			-			-			-			1,643
Exclude straight-line rent adjustment		(1,243	)		-		-			-		(1,243	)		(1,636	)		-			-			-			(1,636	)
Exclude preference payment		(585	)		-		-			-		(585	)		(585	)		-			-			-			(585	)
Adjusted operating expenses		105,571			5,320		15,510			-		115,761			114,328			4,900			15,094			320			124,842
Net operating income		123,852			7,155		11,258			-		127,955			122,477			5,992			7,726			481			124,692
Interest expense		59,833			4,785		11,258			-		66,306			59,497			3,007			7,726			322			64,538
(Gain) loss on early extinguishment of debt		-			-		-			-		-			-			-			-			-			-
Noncontrolling interest in earnings before depreciation and amortization		2,370			2,370		-			-		-			2,985			2,985			-			-			-
Add: Pre-Tax EBDT from discontinued operations		-			-		-			-		-			159			-			-			(159	)		-
Pre-Tax EBDT		61,649			-		-			-		61,649			60,154			-			-			-			60,154
Income tax expense (benefit)		568			-		-			-		568			1,781			-			-			-			1,781
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	61,081		$	-	$	-		$	-	$	61,081		$	58,373		$	-		$	-		$	-		$	58,373
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	61,081		$	-	$	-		$	-	$	61,081		$	58,373		$	-		$	-		$	-		$	58,373
Depreciation and amortization - Real Estate Groups		(52,170	)		-		-			-		(52,170	)		(51,900	)		-			-			(107	)		(52,007	)
Amortization of mortgage procurement costs - Real Estate Groups		(2,432	)		-		-			-		(2,432	)		(2,994	)		-			-			(5	)		(2,999	)
Deferred taxes - Real Estate Groups		(2,748	)		-		-			-		(2,748	)		3,319			-			-			(31	)		3,288
Straight-line rent adjustment		2,582			-		-			-		2,582			2,759			-			-			12			2,771
Preference payment		(585	)		-		-			-		(585	)		(585	)		-			-			-			(585	)
Gain (loss) on disposition of rental properties, net of tax		(17,432	)		-		29			-		(17,403	)		-			-			-			2,784			2,784
Gain on disposition of unconsolidated entities, net of tax		29			-		(29	)		-		-			-			-			-			-			-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-		(7,441	)		-		(7,441	)		-			-			-			-			-
Impairment of unconsolidated entities, net of tax		(7,441	)		-		7,441			-		-			-			-			-			-			-
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		-			-		-			-		-			(107	)		-			-			107			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-			-		-			(5	)		-			-			5			-
Deferred taxes - Real Estate Groups		-			-		-			-		-			(31	)		-			-			31			-
Straight-line rent adjustment		-			-		-			-		-			12			-			-			(12	)		-
Gain on disposition of rental properties		-			-		-			-		-			2,784			-			-			(2,784	)		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(19,116	)	$	-	$	-		$	-	$	(19,116	)	$	11,625		$	-		$	-		$	-		$	11,625

40

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2010 and 2009(in thousands)(continued)

	Residential Group 2010														Residential Group 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	$	52,889		$	969		$	35,534		$	-	$	87,454		$	73,444		$	1,274	$	40,980		$	1,488		$	114,638
Exclude straight-line rent adjustment		(452	)		-			-			-		(452	)		(4	)		-		-			-			(4	)
Adjusted revenues		52,437			969			35,534			-		87,002			73,440			1,274		40,980			1,488			114,634
Add interest and other income		2,571			100			177			-		2,648			4,071			33		168			-			4,206
Add equity in earnings (loss), including impairment of unconsolidated entities		2,038			(221	)		(2,175	)		-		84			(7,851	)		17		7,953			-			85
Exclude gain on disposition of unconsolidated entities		-			-			-			-		-			-			-		-			-			-
Exclude impairment of unconsolidated entities		-			-			-			-		-			9,298			-		(9,298	)		-			-
Exclude depreciation and amortization of unconsolidated entities		5,855			-			(5,855	)		-		-			6,698			-		(6,698	)		-			-
Adjusted total income		62,901			848			27,681			-		89,734			85,656			1,324		33,105			1,488			118,925
Operating expenses		32,648			581			19,863			-		51,930			58,144			330		25,489			24			83,327
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		561			-			-			-		561			957			-		-			-			957
Exclude straight-line rent adjustment		1			-			-			-		1			-			-		-			-			-
Exclude preference payment		-			-			-			-		-			-			-		-			-			-
Adjusted operating expenses		33,210			581			19,863			-		52,492			59,101			330		25,489			24			84,284
Net operating income		29,691			267			7,818			-		37,242		��	26,555			994		7,616			1,464			34,641
Interest expense		4,969			282			7,818			-		12,505			9,720			372		7,440			673			17,461
(Gain) loss on early extinguishment of debt		-			-			-			-		-			-			-		176			-			176
Noncontrolling interest in earnings before depreciation and amortization		(15	)		(15	)		-			-		-			622			622		-			-			-
Add: Pre-Tax EBDT from discontinued operations		-			-			-			-		-			791			-		-			(791	)		-
Pre-Tax EBDT		24,737			-			-			-		24,737			17,004			-		-			-			17,004
Income tax expense (benefit)		(2,876	)		-			-			-		(2,876	)		(528	)		-		-			-			(528	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	27,613		$	-		$	-		$	-	$	27,613		$	17,532		$	-	$	-		$	-		$	17,532
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	27,613		$	-		$	-		$	-	$	27,613		$	17,532		$	-	$	-		$	-		$	17,532
Depreciation and amortization - Real Estate Groups		(17,705	)		-			-			-		(17,705	)		(19,501	)		-		-			(524	)		(20,025	)
Amortization of mortgage procurement costs - Real Estate Groups		(550	)		-			-			-		(550	)		(867	)		-		-			(19	)		(886	)
Deferred taxes - Real Estate Groups		(6,748	)		-			-			-		(6,748	)		2,127			-		-			(43	)		2,084
Straight-line rent adjustment		453			-			-			-		453			4			-		-			-			4
Preference payment		-			-			-			-		-			-			-		-			-			-
Gain (loss) on disposition of rental properties, net of tax		17,610			-			-			-		17,610			-			-		-			-			-
Gain on disposition of unconsolidated entities, net of tax		-			-			-			-		-			-			-		-			-			-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-			-			-		-			(688	)		-		(5,693	)		-			(6,381	)
Impairment of unconsolidated entities, net of tax		-			-			-			-		-			(5,693	)		-		5,693			-			-
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		-			-			-			-		-			(524	)		-		-			524			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-			-			-		-			(19	)		-		-			19			-
Deferred taxes - Real Estate Groups		-			-			-			-		-			(43	)		-		-			43			-
Straight-line rent adjustment		-			-			-			-		-			-			-		-			-			-
Gain on disposition of rental properties		-			-			-			-		-			-			-		-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	20,673		$	-		$	-		$	-	$	20,673		$	(7,672	)	$	-	$	-		$	-		$	(7,672	)

41

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2010 and 2009(in thousands)(continued)

	Land Development Group 2010														Land Development Group 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	$	6,858		$	348		$	2,435		$	-	$	8,945		$	2,470		$	165		$	5,930		$	-	$	8,235
Exclude straight-line rent adjustment		(3	)		-			-			-		(3	)		-			-			-			-		-
Adjusted revenues		6,855			348			2,435			-		8,942			2,470			165			5,930			-		8,235
Add interest and other income		2,194			174			8			-		2,028			2,154			196			14			-		1,972
Add equity in earnings (loss), including impairment of unconsolidated entities		(31	)		-			220			-		189			1,830			-			(1,847	)		-		(17	)
Exclude gain on disposition of unconsolidated entities		-			-			-			-		-			-			-			-			-		-
Exclude impairment of unconsolidated entities		743			-			(743	)		-		-			262			-			(262	)		-		-
Exclude depreciation and amortization of unconsolidated entities		74			-			(74	)		-		-			78			-			(78	)		-		-
Adjusted total income		9,835			522			1,846			-		11,159			6,794			361			3,757			-		10,190
Operating expenses		10,448			504			2,112			-		12,056			5,952			415			3,640			-		9,177
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		40			-			-			-		40			135			-			-			-		135
Exclude straight-line rent adjustment		-			-			-			-		-			-			-			-			-		-
Exclude preference payment		-			-			-			-		-			-			-			-			-		-
Adjusted operating expenses		10,488			504			2,112			-		12,096			6,087			415			3,640			-		9,312
Net operating income		(653	)		18			(266	)		-		(937	)		707			(54	)		117			-		878
Interest expense		1,308			72			(266	)		-		970			249			53			117			-		313
(Gain) loss on early extinguishment of debt		-			-			-			-		-			-			-			-			-		-
Noncontrolling interest in earnings before depreciation and amortization		(54	)		(54	)		-			-		-			(107	)		(107	)		-			-		-
Add: Pre-Tax EBDT from discontinued operations		-			-			-			-		-			-			-			-			-		-
Pre-Tax EBDT		(1,907	)		-			-			-		(1,907	)		565			-			-			-		565
Income tax expense (benefit)		385			-			-			-		385			504			-			-			-		504
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(2,292	)	$	-		$	-		$	-	$	(2,292	)	$	61		$	-		$	-		$	-	$	61
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(2,292	)	$	-		$	-		$	-	$	(2,292	)	$	61		$	-		$	-		$	-	$	61
Depreciation and amortization - Real Estate Groups		(79	)		-			-			-		(79	)		(96	)		-			-			-		(96	)
Amortization of mortgage procurement costs - Real Estate Groups		(80	)		-			-			-		(80	)		(137	)		-			-			-		(137	)
Deferred taxes - Real Estate Groups		881			-			-			-		881			588			-			-			-		588
Straight-line rent adjustment		3			-			-			-		3			-			-			-			-		-
Preference payment		-			-			-			-		-			-			-			-			-		-
Gain (loss) on disposition of rental properties, net of tax		-			-			-			-		-			-			-			-			-		-
Gain on disposition of unconsolidated entities, net of tax		-			-			-			-		-			-			-			-			-		-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-			(455	)		-		(455	)		-			-			(160	)		-		(160	)
Impairment of unconsolidated entities, net of tax		(455	)		-			455			-		-			(160	)		-			160			-		-
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		-			-			-			-		-			-			-			-			-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(2,022	)	$	-		$	-		$	-	$	(2,022	)	$	256		$	-		$	-		$	-	$	256

42

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2010 and 2009(in thousands)(continued)

	The Nets 2010														The Nets 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	$	-		$	-		$	14,066		$	-	$	14,066		$	-		$	-	$	16,380	$	-	$	16,380
Exclude straight-line rent adjustment		-			-			-			-		-			-			-		-		-		-
Adjusted revenues		-			-			14,066			-		14,066			-			-		16,380		-		16,380
Add interest and other income		-			-			(29	)		-		(29	)		-			-		69		-		69
Add equity in earnings (loss), including impairment of unconsolidated entities		(10,430	)		(6,223	)		4,207			-		-			(10,681	)		-		10,681		-		-
Exclude gain on disposition of unconsolidated entities		-			-			-			-		-			-			-		-		-		-
Exclude impairment of unconsolidated entities		-			-			-			-		-			-			-		-		-		-
Exclude depreciation and amortization of unconsolidated entities		-			-			-			-		-			-			-		-		-		-
Adjusted total income		(10,430	)		(6,223	)		18,244			-		14,037			(10,681	)		-		27,130		-		16,449
Operating expenses		-			-			16,151			-		16,151			-			-		18,855		-		18,855
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		-			-			947			-		947			-			-		7,278		-		7,278
Exclude straight-line rent adjustment		-			-			-			-		-			-			-		-		-		-
Exclude preference payment		-			-			-			-		-			-			-		-		-		-
Adjusted operating expenses		-			-			17,098			-		17,098			-			-		26,133		-		26,133
Net operating income		(10,430	)		(6,223	)		1,146			-		(3,061	)		(10,681	)		-		997		-		(9,684	)
Interest expense		-			-			1,146			-		1,146			-			-		997		-		997
(Gain) loss on early extinguishment of debt		-			-			-			-		-			-			-		-		-		-
Noncontrolling interest in earnings before depreciation and amortization		(6,223	)		(6,223	)		-			-		-			-			-		-		-		-
Add: Pre-Tax EBDT from discontinued operations		-			-			-			-		-			-			-		-		-		-
Pre-Tax EBDT		(4,207	)		-			-			-		(4,207	)		(10,681	)		-		-		-		(10,681	)
Income tax expense (benefit)		(834	)		-			-			-		(834	)		(3,689	)		-		-		-		(3,689	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(3,373	)	$	-		$	-		$	-	$	(3,373	)	$	(6,992	)	$	-	$	-	$	-	$	(6,992	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(3,373	)	$	-		$	-		$	-	$	(3,373	)	$	(6,992	)	$	-	$	-	$	-	$	(6,992	)
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		-			-			-			-		-			-			-		-		-		-
Gain (loss) on disposition of rental properties, net of tax		-			-			-			-		-			-			-		-		-		-
Gain on disposition of unconsolidated entities, net of tax		-			-			-			-		-			-			-		-		-		-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-			-			-		-			-			-		-		-		-
Impairment of unconsolidated entities, net of tax		-			-			-			-		-			-			-		-		-		-
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		-			-			-			-		-			-			-		-		-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(3,373	)	$	-		$	-		$	-	$	(3,373	)	$	(6,992	)	$	-	$	-	$	-	$	(6,992	)

43

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2010 and 2009(in thousands)(continued)

	Corporate Activities 2010												Corporate Activities 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	$	-		$	-	$	-	$	-	$	-		$	-		$	-	$	-	$	-	$	-
Exclude straight-line rent adjustment		-			-		-		-		-			-			-		-		-		-
Adjusted revenues		-			-		-		-		-			-			-		-		-		-
Add interest and other income		106			-		-		-		106			(2	)		-		-		-		(2	)
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		106			-		-		-		106			(2	)		-		-		-		(2	)
Operating expenses		11,006			-		-		-		11,006			15,821			-		-		-		15,821
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		446			-		-		-		446			717			-		-		-		717
Exclude straight-line rent adjustment		-			-		-		-		-			-			-		-		-		-
Exclude preference payment		-			-		-		-		-			-			-		-		-		-
Adjusted operating expenses		11,452			-		-		-		11,452			16,538			-		-		-		16,538
Net operating income		(11,346	)		-		-		-		(11,346	)		(16,540	)		-		-		-		(16,540	)
Interest expense		16,864			-		-		-		16,864			21,569			-		-		-		21,569
(Gain) loss on early extinguishment of debt		(6,297	)		-		-		-		(6,297	)		-			-		-		-		-
Noncontrolling interest in earnings before depreciation and amortization		-			-		-		-		-			-			-		-		-		-
Add: Pre-Tax EBDT from discontinued operations		-			-		-		-		-			-			-		-		-		-
Pre-Tax EBDT		(21,913	)		-		-		-		(21,913	)		(38,109	)		-		-		-		(38,109	)
Income tax expense (benefit)		(9,351	)		-		-		-		(9,351	)		(10,739	)		-		-		-		(10,739	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(12,562	)	$	-	$	-	$	-	$	(12,562	)	$	(27,370	)	$	-	$	-	$	-	$	(27,370	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(12,562	)	$	-	$	-	$	-	$	(12,562	)	$	(27,370	)	$	-	$	-	$	-	$	(27,370	)
Depreciation and amortization - Real Estate Groups		-			-		-		-		-			-			-		-		-		-
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-		-		-			-			-		-		-		-
Deferred taxes - Real Estate Groups		838			-		-		-		838			(526	)		-		-		-		(526	)
Straight-line rent adjustment		-			-		-		-		-			-			-		-		-		-
Preference payment		-			-		-		-		-			-			-		-		-		-
Gain (loss) on disposition of rental properties, net of tax		-			-		-		-		-			-			-		-		-		-
Gain on disposition of unconsolidated entities, net of tax		-			-		-		-		-			-			-		-		-		-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-		-		-		-			-			-		-		-		-
Impairment of unconsolidated entities, net of tax		-			-		-		-		-			-			-		-		-		-
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		-			-		-		-		-			-			-		-		-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(11,724	)	$	-	$	-	$	-	$	(11,724	)	$	(27,896	)	$	-	$	-	$	-	$	(27,896	)

44

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2010 and 2009(in thousands)(continued)

	Total 2010														Total 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	$	281,719		$	13,167		$	87,539		$	-	$	356,091		$	311,541		$	12,419	$	90,875		$	2,301		$	392,298
Exclude straight-line rent adjustment		(4,280	)		-			-			-		(4,280	)		(4,399	)		-		-			(12	)		(4,411	)
Adjusted revenues		277,439			13,167			87,539			-		351,811			307,142			12,419		90,875			2,289			387,887
Add interest and other income		6,817			899			750			-		6,668			6,808			140		473			-			7,141
Add equity in earnings (loss), including impairment of unconsolidated entities		(17,124	)		(6,444	)		10,953			-		273			(15,866	)		18		15,952			-			68
Exclude gain on disposition of unconsolidated entities		(48	)		-			48			-		-			-			-		-			-			-
Exclude impairment of unconsolidated entities		12,899			-			(12,899	)		-		-			9,560			-		(9,560	)		-			-
Exclude depreciation and amortization of unconsolidated entities		11,852			-			(11,852	)		-		-			10,928			-		(10,928	)		-			-
Adjusted total income		291,835			7,622			74,539			-		358,752			318,572			12,577		86,812			2,289			395,096
Operating expenses		160,980			6,405			53,636			-		208,211			194,823			5,645		63,078			344			252,600
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		1,568			-			947			-		2,515			3,452			-		7,278			-			10,730
Exclude straight-line rent adjustment		(1,242	)		-			-			-		(1,242	)		(1,636	)		-		-			-			(1,636	)
Exclude preference payment		(585	)		-			-			-		(585	)		(585	)		-		-			-			(585	)
Adjusted operating expenses		160,721			6,405			54,583			-		208,899			196,054			5,645		70,356			344			261,109
Net operating income		131,114			1,217			19,956			-		149,853			122,518			6,932		16,456			1,945			133,987
Interest expense		82,974			5,139			19,956			-		97,791			91,035			3,432		16,280			995			104,878
(Gain) loss on early extinguishment of debt		(6,297	)		-			-			-		(6,297	)		-			-		176			-			176
Noncontrolling interest in earnings before depreciation and amortization		(3,922	)		(3,922	)		-			-		-			3,500			3,500		-			-			-
Add: Pre-Tax EBDT from discontinued operations		-			-			-			-		-			950			-		-			(950	)		-
Pre-Tax EBDT		58,359			-			-			-		58,359			28,933			-		-			-			28,933
Income tax expense (benefit)		(12,108	)		-			-			-		(12,108	)		(12,671	)		-		-			-			(12,671	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	70,467		$	-		$	-		$	-	$	70,467		$	41,604		$	-	$	-		$	-		$	41,604
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	70,467		$	-		$	-		$	-	$	70,467		$	41,604		$	-	$	-		$	-		$	41,604
Depreciation and amortization - Real Estate Groups		(69,954	)		-			-			-		(69,954	)		(71,497	)		-		-			(631	)		(72,128	)
Amortization of mortgage procurement costs - Real Estate Groups		(3,062	)		-			-			-		(3,062	)		(3,998	)		-		-			(24	)		(4,022	)
Deferred taxes - Real Estate Groups		(7,777	)		-			-			-		(7,777	)		5,508			-		-			(74	)		5,434
Straight-line rent adjustment		3,038			-			-			-		3,038			2,763			-		-			12			2,775
Preference payment		(585	)		-			-			-		(585	)		(585	)		-		-			-			(585	)
Gain (loss) on disposition of rental properties, net of tax		178			-			29			-		207			-			-		-			2,784			2,784
Gain on disposition of unconsolidated entities, net of tax		29			-			(29	)		-		-			-			-		-			-			-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-			(7,896	)		-		(7,896	)		(688	)		-		(5,853	)		-			(6,541	)
Impairment of unconsolidated entities, net of tax		(7,896	)		-			7,896			-		-			(5,853	)		-		5,853			-			-
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		-			-			-			-		-			(631	)		-		-			631			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-			-			-		-			(24	)		-		-			24			-
Deferred taxes - Real Estate Groups		-			-			-			-		-			(74	)		-		-			74			-
Straight-line rent adjustment		-			-			-			-		-			12			-		-			(12	)		-
Gain on disposition of rental properties		-			-			-			-		-			2,784			-		-			(2,784	)		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(15,562	)	$	-		$	-		$	-	$	(15,562	)	$	(30,679	)	$	-	$	-		$	-		$	(30,679	)

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