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

Exhibit 99.1

Forest City Enterprises, Inc.

Supplemental Package

Three and Six Months Ended July 31, 2010 and 2009

Forest City Enterprises, Inc. and Subsidiaries
Three and Six Months Ended July 31, 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	8-11
Supplemental Operating Information
Occupancy Data	12
Comparable Net Operating Income (NOI)	13
Comparable NOI Detail	14-15
NOI By Product Type	16
NOI By Core Market	17
Reconciliation of NOI to Net Earnings (Loss)	18-19
Results of Operations Discussion	20-22
EBDT Bridge	23-24
Reconciliation of Net Earnings (Loss) to EBDT	25-26
Schedules of Lease Expirations	27-28
Schedules of Significant Tenants	29-30
Openings and Acquisitions	31
Projects Under Construction	32-33
Projects Under Development	34
Military Housing	35
Land Held for Development or Sale	36
Supplemental Financial Information
Projects under Construction and Development Debt and Non-Recourse Debt	37
Scheduled Maturities Table	38-39
Upcoming Maturities Summary	40
Investments in and Advances to Affiliates	41-44
Real Estate Activity	45-48
Summary of EBDT	49-60

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 $11.8 billion of assets in 27 states and the District of Columbia at July 31, 2010. Our core markets include Boston, the state of California, Chicago, Denver, New York City/Philadelphia metropolitan area and the Greater Washington, D.C./Baltimore metropolitan area. Our core markets account for approximately 77 percent of the cost of our real estate portfolio at July 31, 2010. We have offices in Albuquerque, Boston, Chicago, Denver, London (England), Los Angeles, New York City, San Francisco, Washington, D.C. and our corporate headquarters in Cleveland, Ohio.

SUPPLEMENTAL FINANCIAL AND OPERATING INFORMATION

We recommend that this supplemental package be read in conjunction with our Form 10-Q for the three and six months ended July 31, 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, a measure of performance used by publicly traded Real Estate Investment Trusts, but may not be directly comparable to similarly titled measures reported by other companies. For additional discussion of EBDT as well as a reconciliation of net earnings (loss) to EBDT see pages 21-26.

2

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial and Operating Information

Supplemental Operating Information

The operating information contained in this document includes: occupancy data, comparable NOI, NOI by product type and core market, reconciliation of NOI to net earnings (loss), results of operations discussion, EBDT bridge, reconciliation of net earnings (loss) to EBDT, retail and office lease expirations, significant retail and office tenants, and our development pipeline. We believe this information will give interested parties a better understanding and more information about our operating performance. The term “comparable,” which is used throughout this document, is generally defined as including properties that were open and operated in both the three and six months ended July 31, 2010 and 2009.

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

Comparable NOI is useful because it measures the performance of the same properties on a period-to-period basis and, along with EBDT (as discussed on pages 21-22), is used to assess operating performance and resource allocation of our strategic business units. While property dispositions, acquisitions or other factors can impact net earnings in the short term, we believe comparable NOI gives a more consistent view of our overall performance from quarter-to-quarter and year-to-year. A reconciliation of NOI to net earnings (loss), the most comparable financial measure calculated in accordance with GAAP and a reconciliation of NOI to net earnings (loss) for each strategic business unit are provided on pages 18-19 and 49-60 of this document. A reconciliation from NOI to comparable NOI can be found on pages 13-15.

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.

3

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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 — July 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	$	1,536,167		$	23,972		$	820,680		$	2,332,875
Commercial
Retail centers		3,320,305			108,385			694,055			3,905,975
Office and other buildings		3,292,500			248,317			379,442			3,423,625
Corporate and other equipment		9,752			-			1			9,753
Total completed rental properties		8,158,724			380,674			1,894,178			9,672,228
Projects under construction
Residential		783,249			194,396			10,732			599,585
Commercial
Retail centers		657,493			3,387			81,673			735,779
Office and other buildings		255,090			166,717			573			88,946
Total projects under construction		1,695,832			364,500			92,978			1,424,310
Projects under development
Residential		664,910			201,169			6,118			469,859
Commercial
Retail centers		21,289			102			10,897			32,084
Office and other buildings		227,091			54,871			7,291			179,511
Total projects under development		913,290			256,142			24,306			681,454
Total projects under construction and development		2,609,122			620,642			117,284			2,105,764
Land held for development or sale		226,309			12,410			113,844			327,743
Total Real Estate		10,994,155			1,013,726			2,125,306			12,105,735
Less accumulated depreciation		(1,531,977	)		(59,270	)		(406,746	)		(1,879,453	)
Real Estate, net		9,462,178			954,456			1,718,560			10,226,282
Cash and equivalents		186,728			17,363			45,392			214,757
Restricted cash and escrowed funds		786,606			308,579			76,804			554,831
Notes and accounts receivable, net		394,680			16,955			82,105			459,830
Investments in and advances to affiliates		160,575			(233,853	)		(105,604	)		288,824
Lease and mortgage procurement costs, net		384,917			32,302			30,853			383,468
Prepaid expenses and other deferred costs, net		229,294			36,528			37,688			230,454
Intangible assets, net		157,358			-			1,280			158,638
Total Assets	$	11,762,336		$	1,132,330		$	1,887,078		$	12,517,084

4

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Balance Sheet Information — July 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	$	1,025,923		$	19,161	$	660,492	$	1,667,254
Commercial
Retail centers		2,475,136			119,139		635,808		2,991,805
Office and other buildings		2,352,270			214,451		305,831		2,443,650
Total completed rental properties		5,853,329			352,751		1,602,131		7,102,709
Projects under construction
Residential		709,566			203,680		37,337		543,223
Commercial
Retail centers		361,678			-		-		361,678
Office and other buildings		83,669			61,228		-		22,441
Total projects under construction		1,154,913			264,908		37,337		927,342
Projects under development
Residential		153,437			61,760		-		91,677
Commercial
Retail centers		-			-		-		-
Office and other buildings		47,645			17,120		2,887		33,412
Total projects under development		201,082			78,880		2,887		125,089
Total projects under construction and development		1,355,995			343,788		40,224		1,052,431
Land held for development or sale		61,544			4,300		51,433		108,677
Total Mortgage debt and notes payable, nonrecourse		7,270,868			700,839		1,693,788		8,263,817
Bank revolving credit facility		112,472			-		-		112,472
Senior and subordinated debt		882,841			-		-		882,841
Construction payables		190,788			37,171		8,466		162,083
Accounts payable and accrued expenses		685,336			34,640		150,460		801,156
Accrued derivative liability		179,985			4,103		34,364		210,246
Deferred income taxes		468,974			-		-		468,974
Total Liabilities		9,791,264			776,753		1,887,078		10,901,589
Redeemable Noncontrolling Interest		221,647			221,647		-		-
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss		1,540,327			-		-		1,540,327
Accumulated other comprehensive loss		(110,853	)		-		-		(110,853	)
Total Shareholders’ Equity		1,429,474			-		-		1,429,474
Noncontrolling interest		319,951			133,930		-		186,021
Total Equity		1,749,425			133,930		-		1,615,495
Total Liabilities and Equity	$	11,762,336		$	1,132,330	$	1,887,078	$	12,517,084

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 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		263,457			132,156			66,059			197,360
Total projects under construction		1,833,562			376,449			277,375			1,734,488
Projects under development
Residential		562,781			167,290			7,965			403,456
Commercial
Retail centers		21,016			101			10,868			31,783
Office and other buildings		223,811			56,279			9,212			176,744
Total projects under development		807,608			223,670			28,045			611,983
Total projects under construction and 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 and escrowed funds		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 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		190,990			101,058		1,574			91,506
Total projects under construction		1,131,392			286,141		215,751			1,061,002
Projects under development
Residential		148,747			61,353		-			87,394
Commercial
Retail centers		-			-		-			-
Office and other buildings		48,932			17,360		61,148			92,720
Total projects under development		197,679			78,713		61,148			180,114
Total projects under construction and 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		784,090			45,950		104,663			842,803
Accrued derivative liability		192,526			11,326		16,463			197,663
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

7

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Earnings Information — Three Months Ended July 31, 2010 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	309,211		$	18,532		$	80,162		$	1,084		$	371,925
Expenses
Operating expenses		177,852			11,106			39,807			835			207,388
Depreciation and amortization		61,031			2,578			12,267			254			70,974
Impairment of real estate		46,510			-			2,282			-			48,792
		285,393			13,684			54,356			1,089			327,154
Interest expense		(87,860	)		(4,885	)		(19,162	)		(11	)		(102,148	)
Amortization of mortgage procurement costs		(3,602	)		(572	)		(598	)		(5	)		(3,633	)
Gain on early extinguishment of debt		1,896			-			-			-			1,896
Interest and other income		16,232			133			(56	)		2			16,045
Net gain (loss) on disposition of partial interests in rental properties		204,269			-			(878	)		1,993			205,384
Net gain on disposition of partial interests in other investment		55,112			23,675			-			-			31,437
Earnings before income taxes		209,865			23,199			5,112			1,974			193,752
Income tax expense (benefit)
Current		5,108			-			-			(183	)		4,925
Deferred		58,705			-			-			1,070			59,775
		63,813			-			-			887			64,700
Equity in earnings (loss), including impairment of unconsolidated entities		(996	)		98			(5,112	)		-			(6,206	)
Earnings from continuing operations		145,056			23,297			-			1,087			122,846
Discontinued operations, net of tax:
Operating loss from rental properties		(13	)		(1	)		-			12			-
Gain on disposition of rental properties		5,310			4,211			-			(1,099	)		-
		5,297			4,210			-			(1,087	)		-
Net earnings		150,353			27,507			-			-			122,846
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(23,297	)		(23,297	)		-			-			-
Earnings from discontinued operations attributable to noncontrolling interests		(4,210	)		(4,210	)		-			-			-
		(27,507	)		(27,507	)		-			-			-
Net earnings attributable to Forest City Enterprises, Inc.	$	122,846		$	-		$	-		$	-		$	122,846
Preferred dividends		(4,107	)		-			-			-			(4,107	)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders	$	118,739		$	-		$	-		$	-		$	118,739

8

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Earnings Information — Six Months Ended July 31, 2010 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	589,433		$	31,624		$	167,701		$	2,506		$	728,016
Expenses
Operating expenses		338,015			17,469			93,443			1,610			415,599
Depreciation and amortization		122,574			4,349			24,513			636			143,374
Impairment of real estate		46,510			-			15,181			-			61,691
		507,099			21,818			133,137			2,246			620,664
Interest expense		(170,721	)		(10,018	)		(39,118	)		(118	)		(199,939	)
Amortization of mortgage procurement costs		(6,261	)		(661	)		(1,151	)		(13	)		(6,764	)
Gain on early extinguishment of debt		8,193			-			-			-			8,193
Interest and other income		23,047			1,032			694			4			22,713
Net gain (loss) on disposition of partial interests in rental properties		205,135			-			(830	)		1,993			206,298
Net gain on disposition of partial interests in other investment		55,112			23,675			-			-			31,437
Earnings before income taxes		196,839			23,834			(5,841	)		2,126			169,290
Income tax expense (benefit)
Current		11,908			-			-			(234	)		11,674
Deferred		43,220			-			-			1,179			44,399
		55,128			-			-			945			56,073
Equity in earnings (loss), including impairment of unconsolidated entities		(18,120	)		(6,346	)		5,841			-			(5,933	)
Earnings from continuing operations		123,591			17,488			-			1,181			107,284
Discontinued operations, net of tax:
Operating loss from rental properties		88			6			-			(82	)		-
Gain on disposition of rental properties		5,310			4,211			-			(1,099	)		-
		5,398			4,217			-			(1,181	)		-
Net earnings		128,989			21,705			-			-			107,284
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(17,488	)		(17,488	)		-			-			-
Earnings from discontinued operations attributable to noncontrolling interests		(4,217	)		(4,217	)		-			-			-
		(21,705	)		(21,705	)		-			-			-
Net earnings attributable to Forest City Enterprises, Inc.	$	107,284		$	-		$	-		$	-		$	107,284
Preferred dividends		(4,107	)		-			-			-			(4,107	)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders	$	103,177		$	-		$	-		$	-		$	103,177

9

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Earnings Information — Three Months Ended July 31, 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	$	313,697		$	13,064		$	97,417		$	2,960		$	401,010
Expenses
Operating expenses		164,649			5,616			72,992			854			232,879
Depreciation and amortization		66,891			297			13,836			941			81,371
Impairment of real estate		1,451			-			11,903			-			13,354
		232,991			5,913			98,731			1,795			327,604
Interest expense		(79,407	)		(3,361	)		(16,494	)		(809	)		(93,349	)
Amortization of mortgage procurement costs		(3,422	)		(162	)		(657	)		(27	)		(3,944	)
Gain on early extinguishment of debt		9,063			-			-			-			9,063
Interest and other income		11,594			203			732			-			12,123
Earnings (loss) before income taxes		18,534			3,831			(17,733	)		329			(2,701	)
Income tax expense (benefit)
Current		(6,089	)		-			-			(18	)		(6,107	)
Deferred		5,430			-			-			146			5,576
		(659	)		-			-			128			(531	)
Equity in earnings (loss), including impairment of unconsolidated entities		(17,438	)		(86	)		17,733			-			381
Earnings (loss) from continuing operations		1,755			3,745			-			201			(1,789	)
Discontinued operations, net of tax:
Operating earnings from rental properties		209			8			-			(201	)		-
Net earnings (loss)		1,964			3,753			-			-			(1,789	)
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(3,745	)		(3,745	)		-			-			-
Earnings from discontinued operations attributable to noncontrolling interests		(8	)		(8	)		-			-			-
		(3,753	)		(3,753	)		-			-			-
Net loss attributable to Forest City Enterprises, Inc.	$	(1,789	)	$	-		$	-		$	-		$	(1,789	)
Preferred dividends		-			-			-			-			-
Net loss attributable to Forest City Enterprises, Inc. common shareholders	$	(1,789	)	$	-		$	-		$	-		$	(1,789	)

10

Forest City Enterprises, Inc. and Subsidiaries
Selected Financial Information

Consolidated Earnings Information — Six Months Ended July 31, 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	$	623,715		$	25,407		$	188,292		$	6,708		$	793,308
Expenses
Operating expenses		358,674			11,221			136,070			1,956			485,479
Depreciation and amortization		132,401			1,685			31,416			1,977			164,109
Impairment of real estate		2,575			-			21,463			-			24,038
		493,650			12,906			188,949			3,933			673,626
Interest expense		(170,318	)		(6,787	)		(32,774	)		(1,922	)		(198,227	)
Amortization of mortgage procurement costs		(7,066	)		(322	)		(1,283	)		(59	)		(8,086	)
Gain (loss) on early extinguishment of debt		9,063			-			(176	)		-			8,887
Interest and other income		18,402			343			1,205			-			19,264
Gain on disposition of rental properties		-			-			-			4,548			4,548
Earnings (loss) before income taxes		(19,854	)		5,735			(33,685	)		5,342			(53,932	)
Income tax expense (benefit)
Current		(13,456	)		-			-			3,795			(9,661	)
Deferred		(9,631	)		-			-			(1,723	)		(11,354	)
		(23,087	)		-			-			2,072			(21,015	)
Equity in earnings (loss), including impairment of unconsolidated entities		(33,304	)		(68	)		33,685			-			449
Earnings (loss) from continuing operations		(30,071	)		5,667			-			3,270			(32,468	)
Discontinued operations, net of tax:
Operating earnings from rental properties		505			19			-			(486	)		-
Gain on disposition of rental properties		2,784			-			-			(2,784	)		-
		3,289			19			-			(3,270	)		-
Net earnings (loss)		(26,782	)		5,686			-			-			(32,468	)
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(5,667	)		(5,667	)		-			-			-
Earnings from discontinued operations attributable to noncontrolling interests		(19	)		(19	)		-			-			-
		(5,686	)		(5,686	)		-			-			-
Net loss attributable to Forest City Enterprises, Inc.	$	(32,468	)	$	-		$	-		$	-		$	(32,468	)
Preferred dividends		-			-			-			-			-
Net loss attributable to Forest City Enterprises, Inc. common shareholders	$	(32,468	)	$	-		$	-		$	-		$	(32,468	)

11

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Occupancy Data — July 31, 2010 and 2009

Retail and office occupancy as of July 31, 2010 and 2009 is based on square feet leased at the end of the fiscal quarter. Average Occupancy Year-to-Date as of July 31, 2010 and 2009 for retail and office is calculated by dividing the sum of leased square feet at the beginning and end of the period by two. Residential occupancy as of July 31, 2010 and 2009 represents total units occupied divided by total units available. Average Occupancy as of July 31, 2010 and 2009 for residential is calculated by dividing gross potential rent less vacancy by gross potential rent. Average Daily Rate (“ADR”) is calculated by dividing revenue by the number of rooms sold for the six months ended July 31, 2010 and 2009.

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

				Average						Average
	Occupancy			Occupancy			Occupancy			Occupancy
	As of			Year-to-Date			As of			Year-to-Date
	July 31, 2010			July 31, 2010			July 31, 2009			July 31, 2009
Retail
Comparable		90.9	%		90.5	%		89.2	%		89.4	%
Total		90.7	%		89.7	%		88.1	%		88.3	%
Office
Comparable		90.0	%		90.0	%		89.7	%		89.7	%
Total		89.9	%		89.8	%		89.4	%		89.4	%
Residential(1)
Comparable		93.8	%		94.1	%		92.0	%		90.8	%
Total		92.7	%		93.0	%		89.7	%		85.8	%
Hotels
Comparable and Total					66.3	%					64.3	%
Comparable ADR and Total ADR				$	139.24					$	137.5	6

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
	July 31,			April 30,			January 31,			October 31,			July 31,			July 31,			April 30,			January 31,			October 31,			July 31,
	2010			2010			2010			2009			2009			2010			2010			2010			2009			2009
Retail
Comparable		90.9	%		89.7	%		90.1	%		90.1	%		89.8	%		90.5	%		90.0	%		89.9	%		90.0	%		89.9	%
Total		90.7	%		88.4	%		88.8	%		88.4	%		88.1	%		89.7	%		88.6	%		88.6	%		88.4	%		88.3	%
Office
Comparable		90.0	%		89.8	%		90.3	%		89.4	%		89.4	%		90.0	%		89.9	%		90.1	%		89.7	%		89.3	%
Total		89.9	%		89.7	%		89.7	%		88.9	%		89.4	%		89.8	%		89.7	%		89.5	%		89.1	%		89.4	%
Residential(1)
Comparable		93.8	%		93.0	%		93.7	%		92.6	%		91.6	%		94.1	%		93.7	%		92.2	%		90.4	%		90.1	%
Total		92.7	%		91.1	%		92.3	%		91.1	%		89.7	%		93.0	%		90.8	%		87.8	%		86.5	%		85.8	%
Hotels
Comparable and Total																	66.3	%		61.0	%		69.1	%		68.5	%		64.3	%
Comparable ADR and Total ADR																$	139.24		$	135.4	3	$	140.0	1	$	139.5	6	$	137.5	6

(1) Excludes military housing units.

12

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

We use NOI, along with EBDT as discussed on page 2, to assess operating performance. Comparable NOI is defined as NOI from properties opened and operated in the three and six months ended July 31, 2010 and 2009. The schedules below present Pro-Rata Comparable NOI for the three and six months ended July 31, 2010. The following schedules on pages 14-15 present comparable NOI for each of our major product lines, as well as strategic business units under which these product lines operate. A reconciliation of NOI to the most comparable GAAP measure, net earnings (loss), is presented on pages 18-19. A reconciliation of NOI to net earnings (loss) for each strategic business unit can be found on pages 49-60.

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

	Three Months Ended			Six Months Ended
	July 31, 2010			July 31, 2010
Retail		3.2	%		0.9	%
Office		1.6	%		1.3	%
Hotel		7.9	%		17.8	%
Residential		3.8	%		2.9	%
Total		2.9	%		1.7	%

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
	July 31, 2010			April 30, 2010			January 31, 2010			October 31, 2009			July 31, 2009
Retail		3.2	%		(1.5	%)		(3.9	%)		(1.7	%)		(4.3	%)
Office		1.6	%		0.8	%		4.3	%		5.6	%		7.1	%
Hotel		7.9	%		52.6	%		(1.1	%)		6.2	%		(24.8	%)
Residential		3.8	%		2.8	%		(2.7	%)		(3.9	%)		(4.2	%)
Total		2.9	%		0.6	%		(0.5	%)		0.8	%		(1.4	%)

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

13

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

		Net Operating Income(dollars in thousands)
		Three Months Ended July 31, 2010													Three Months Ended July 31, 2009													% Change
								Plus												Plus
		Full			Less			Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus		Pro-Rata			Full	Pro-Rata
		Consolidation			Noncontrolling			Investments at		Discontinued		Consolidation			Consolidation			Noncontrolling		Investments at			Discontinued		Consolidation			Consolidation	Consolidation
		(GAAP)			Interest			Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)	(Non-GAAP)
Commercial Group
Retail
	Comparable	$	58,828		$	2,797		$	5,367	$	-	$	61,398		$	56,867		$	2,986	$	5,598		$	-	$	59,479		3.4%	3.2%
	Total		64,141			2,791			5,675		-		67,025			63,284			3,014		5,663			-		65,933
Office Buildings
	Comparable		58,947			2,854			4,833		-		60,926			58,105			2,637		4,486			-		59,954		1.4%	1.6%
	Total		64,313			4,861			2,240		-		61,692			67,139			2,639		2,025			-		66,525
Hotels
	Comparable		4,103			-			370		-		4,473			3,767			-		377			-		4,144		8.9%	7.9%
	Total		4,103			-			370		-		4,473			3,767			-		377			-		4,144
Earnings from Commercial Land Sales			2,612			-			-		-		2,612			1,733			257		-			-		1,476
Other(1)			601			(1,092	)		1,966		-		3,659			(2,162	)		286		(552	)		-		(3,000	)
Total Commercial Group
	Comparable		121,878			5,651			10,570		-		126,797			118,739			5,623		10,461			-		123,577		2.6%	2.6%
	Total		135,770			6,560			10,251		-		139,461			133,761			6,196		7,513			-		135,078
Residential Group
Apartments
	Comparable		25,892			631			7,045		-		32,306			25,303			440		6,247			-		31,110		2.3%	3.8%
	Total		28,497			984			7,962		251		35,726			32,196			1,091		6,738			2,106		39,949
Military Housing
	Comparable		-			-			-		-		-			-			-		-			-		-
	Total		6,525			-			379		-		6,904			13,286			138		243			-		13,391
Other(1)			1,322			(55	)		452		-		1,829			(6,822	)		36		-			-		(6,858	)
Total Residential Group
	Comparable		25,892			631			7,045		-		32,306			25,303			440		6,247			-		31,110		2.3%	3.8%
	Total		36,344			929			8,793		251		44,459			38,660			1,265		6,981			2,106		46,482
Total Rental Properties
	Comparable		147,770			6,282			17,615		-		159,103			144,042			6,063		16,708			-		154,687		2.6%	2.9%
	Total		172,114			7,489			19,044		251		183,920			172,421			7,461		14,494			2,106		181,560
Land Development Group			2,327			188			118		-		2,257			2,065			104		48			-		2,009
The Nets
Operations			(7,161	)		(20	)		-		-		(7,141	)		(8,307	)		-		1,952			-		(6,355	)
Gain on disposition of partial interest			55,112			23,675			-		-		31,437			-			-		-			-		-
	Total		47,951			23,655			-		-		24,296			(8,307	)		-		1,952			-		(6,355	)
Corporate Activities			(9,801	)		-			-		-		(9,801	)		(6,075	)		-		-			-		(6,075	)
Grand Total		$	212,591		$	31,332		$	19,162	$	251	$	200,672		$	160,104		$	7,565	$	16,494		$	2,106	$	171,139

(1) Includes write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of historic and new market tax credit income. Write-offs of abandoned development projects for the three months ended July 31, 2010 were $37 at full consolidation and $2,594 at pro-rata consolidation compared to $3,247 for the three months ended July 31, 2009 at both full and pro-rata consolidation.

14

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

		Net Operating Income(dollars in thousands)
		Six Months Ended July 31, 2010														Six Months Ended July 31, 2009													% Change
								Plus													Plus
		Full			Less			Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Pro-Rata
		Consolidation			Noncontrolling			Investments at			Discontinued		Consolidation			Consolidation			Noncontrolling		Investments at			Discontinued		Consolidation			Consolidation			Consolidation
		(GAAP)			Interest			Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			(Non-GAAP)
Commercial Group
Retail
	Comparable	$	117,138		$	5,721		$	10,737		$	-	$	122,154		$	116,049		$	6,043	$	11,052		$	-	$	121,058			0.9	%		0.9	%
	Total		128,687			5,715			11,258			-		134,230			126,669			5,486		11,171			481		132,835
Office Buildings
	Comparable		119,060			5,455			8,910			-		122,515			118,029			5,242		8,215			-		121,002			0.9	%		1.3	%
	Total		127,599			8,720			6,315			-		125,194			130,684			5,288		4,037			-		129,433
Hotels
	Comparable		5,540			-			738			-		6,278			4,578			-		752			-		5,330			21.0	%		17.8	%
	Total		5,540			-			738			-		6,278			4,578			-		752			-		5,330
Earnings from Commercial Land Sales			2,887			-			-			-		2,887			4,471			850		-			-		3,621
Other(1)			(5,091	)		(720	)		3,198			-		(1,173	)		(10,164	)		564		(721	)		-		(11,449	)
Total Commercial Group
	Comparable		241,738			11,176			20,385			-		250,947			238,656			11,285		20,019			-		247,390			1.3	%		1.4	%
	Total		259,622			13,715			21,509			-		267,416			256,238			12,188		15,239			481		259,770
Residential Group
Apartments
	Comparable		49,181			1,016			13,693			-		61,858			48,612			884		12,366			-		60,094			1.2	%		2.9	%
	Total		53,357			1,120			15,410			900		68,547			60,646			2,113		14,143			4,259		76,935
Military Housing
	Comparable		-			-			-			-		-			-			-		-			-		-
	Total		13,002			-			749			-		13,751			20,984			38		454			-		21,400
Other(1)			(1,006	)		43			452			-		(597	)		(17,140	)		72		-			-		(17,212	)
Total Residential Group
	Comparable		49,181			1,016			13,693			-		61,858			48,612			884		12,366			-		60,094			1.2	%		2.9	%
	Total		65,353			1,163			16,611			900		81,701			64,490			2,223		14,597			4,259		81,123
Total Rental Properties
	Comparable		290,919			12,192			34,078			-		312,805			287,268			12,169		32,385			-		307,484			1.3	%		1.7	%
	Total		324,975			14,878			38,120			900		349,117			320,728			14,411		29,836			4,740		340,893
Land Development Group			1,674			206			(148	)		-		1,320			2,772			50		165			-		2,887
The Nets
Operations			(17,591	)		(6,243	)		1,146			-		(10,202	)		(18,988	)		-		2,949			-		(16,039	)
Gain on disposition of partial interest			55,112			23,675			-			-		31,437			-			-		-			-		-
	Total		37,521			17,432			1,146			-		21,235			(18,988	)		-		2,949			-		(16,039	)
Corporate Activities			(21,147	)		-			-			-		(21,147	)		(22,615	)		-		-			-		(22,615	)
Grand Total		$	343,023		$	32,516		$	39,118		$	900	$	350,525		$	281,897		$	14,461	$	32,950		$	4,740	$	305,126

(1) Includes write-offs of abandoned development projects, non-capitalizable development costs and unallocated management and service company overhead, net of historic and new market tax credit income. Write-offs of abandoned development projects for the six months ended July 31, 2010 were $37 at full consolidation and $2,594 at pro-rata consolidation compared to $17,640 for the six months ended July 31, 2009 at both full and pro-rata consolidation.

15

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

NOI by Product Type:	$	352,207
The Nets
Operations		(10,202	)
Gain on dispostion of partial interest		31,437
Total Nets		21,235
Corporate Activities		(21,147	)
Other(1)		(1,770	)
Grand Total NOI	$	350,525

NOI by Product Type:	$	372,441
The Nets
Operations		(16,039	)
Gain on dispostion of partial interest		-
Total Nets		(16,039	)
Corporate Activities		(22,615	)
Other(1)		(28,661	)
Grand Total NOI	$	305,126

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

16

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Net Operating Income by Core Market
Pro-Rata Consolidation (dollars in thousands)

NOI by Core Market:	$	352,207
The Nets
Operations		(10,202	)
Gain on dispostion of partial interest		31,437
Total Nets		21,235
Corporate Activities		(21,147	)
Other(1)		(1,770	)
Grand Total NOI	$	350,525

NOI by Core Market:	$	372,441
The Nets
Operations		(16,039	)
Gain on dispostion of partial interest		-
Total Nets		(16,039	)
Corporate Activities		(22,615	)
Other(1)		(28,661	)
Grand Total NOI	$	305,126

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

17

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

	Three Months Ended July 31, 2010															Three Months Ended July 31, 2009
							Plus																Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata				Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation				Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)				(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	309,211		$	18,532		$	80,162		$	1,084		$	371,925			$	313,697		$	13,064		$	89,241		$	2,960		$	392,834
Exclude straight-line rent adjustment (1)		(5,959	)		-			-			-			(5,959	)			(5,225	)		-			-			-			(5,225	)
Adjusted revenues		303,252			18,532			80,162			1,084			365,966				308,472			13,064			89,241			2,960			387,609
Add interest and other income		16,232			133			(56	)		2			16,045				11,594			203			8,908			-			20,299
Add gain on disposition of partial interests in other investment - Nets		55,112			23,675			-			-			31,437				-			-			-			-			-
Add equity in earnings (loss), including impairment of unconsolidated entities		(996	)		98			(5,112	)		-			(6,206	)			(17,438	)		(86	)		17,733			-			381
Exclude loss on disposition of unconsolidated entities		878			-			(878	)		-			-				-			-			-			-			-
Exclude impairment of unconsolidated real estate		2,282			-			(2,282	)		-			-				11,903			-			(11,903	)		-			-
Exclude depreciation and amortization of unconsolidated entities (see below)		12,865			-			(12,865	)		-			-				11,533			-			(11,533	)		-			-
Adjusted total income		389,625			42,438			58,969			1,086			407,242				326,064			13,181			92,446			2,960			408,289
Operating expenses		177,852			11,106			39,807			835			207,388				164,649			5,616			72,992			854			232,879
Add back non-Real Estate depreciation and amortization (b)		1,185			-			-			-			1,185				3,508			-			2,839			-			6,347
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		-			-			-			-			-				-			-			121			-			121
Exclude straight-line rent adjustment (2)		(1,417	)		-			-			-			(1,417	)			(1,611	)		-			-			-			(1,611	)
Exclude preference payment		(586	)		-			-			-			(586	)			(586	)		-			-			-			(586	)
Adjusted operating expenses		177,034			11,106			39,807			835			206,570				165,960			5,616			75,952			854			237,150
Net Operating Income		212,591			31,332			19,162			251			200,672				160,104			7,565			16,494			2,106			171,139
Interest expense		(87,860	)		(4,885	)		(19,162	)		(11	)		(102,148	)			(79,407	)		(3,361	)		(16,494	)		(809	)		(93,349	)
Gain (loss) on early extinguishment of debt		1,896			-			-			-			1,896				9,063			-			-			-			9,063
Equity in earnings (loss), including impairment of unconsolidated entities		996			(98	)		5,112			-			6,206				17,438			86			(17,733	)		-			(381	)
Gain on disposition of unconsolidated entities		(878	)		-			-			-			(878	)			-			-			-			-			-
Impairment of unconsolidated real estate		(2,282	)		-			-			-			(2,282	)			(11,903	)		-			-			-			(11,903	)
Depreciation and amortization of unconsolidated entities (see above)		(12,865	)		-			12,865			-			-				(11,533	)		-			11,533			-			-
Net gain on disposition of partial interests in rental properties		204,269			-			-			1,993			206,262				-			-			-			-			-
Impairment of consolidated real estate		(46,510	)		-			-			-			(46,510	)			(1,451	)		-			-			-			(1,451	)
Depreciation and amortization - Real Estate Groups (a)		(59,846	)		(2,578	)		(12,267	)		(254	)		(69,789	)			(63,383	)		(297	)		(10,997	)		(941	)		(75,024	)
Amortization of mortgage procurement costs - Real Estate Groups (c)		(3,602	)		(572	)		(598	)		(5	)		(3,633	)			(3,422	)		(162	)		(536	)		(27	)		(3,823	)
Straight-line rent adjustment (1) + (2)		4,542			-			-			-			4,542				3,614			-			-			-			3,614
Preference payment		(586	)		-			-			-			(586	)			(586	)		-			-			-			(586	)
Earnings (loss) before income taxes		209,865			23,199			5,112			1,974			193,752				18,534			3,831			(17,733	)		329			(2,701	)
Income tax provision		(63,813	)		-			-			(887	)		(64,700	)			659			-			-			(128	)		531
Equity in earnings (loss), including impairment of unconsolidated entities		(996	)		98			(5,112	)		-			(6,206	)			(17,438	)		(86	)		17,733			-			381
Earnings (loss) from continuing operations		145,056			23,297			-			1,087			122,846				1,755			3,745			-			201			(1,789	)
Discontinued operations, net of tax		5,297			4,210			-			(1,087	)		-				209			8			-			(201	)		-
Net earnings (loss)		150,353			27,507			-			-			122,846				1,964			3,753			-			-			(1,789	)
Noncontrolling interests
Earnings from continuing operations attributable to noncontrolling interests		(23,297	)		(23,297	)		-			-			-				(3,745	)		(3,745	)		-			-			-
Earnings from discontinued operations attributable to noncontrolling interests		(4,210	)		(4,210	)		-			-			-				(8	)		(8	)		-			-			-
Noncontrolling interests		(27,507	)		(27,507	)		-			-			-				(3,753	)		(3,753	)		-			-			-
Net earnings (loss) attributable to Forest City Enterpirses, Inc.	$	122,846		$	-		$	-		$	-		$	122,846			$	(1,789	)	$	-		$	-		$	-		$	(1,789	)
Preferred dividends		(4,107	)		-			-			-			(4,107	)			-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterpirses, Inc. common shareholders	$	118,739		$	-		$	-		$	-		$	118,739			$	(1,789	)	$	-		$	-		$	-		$	(1,789	)
(a) Depreciation and amortization - Real Estate Groups	$	59,846		$	2,578		$	12,267		$	254		$	69,789			$	63,383		$	297		$	10,997		$	941		$	75,024
(b) Depreciation and amortization - Non-Real Estate		1,185			-			-			-			1,185				3,508			-			2,839			-			6,347
Total depreciation and amortization	$	61,031		$	2,578		$	12,267		$	254		$	70,974			$	66,891		$	297		$	13,836		$	941		$	81,371
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	3,602		$	572		$	598		$	5		$	3,633			$	3,422		$	162		$	536		$	27		$	3,823
(d) Amortization of mortgage procurement costs - Non-Real Estate		-			-			-			-			-				-			-			121			-			121
Total amortization of mortgage procurement costs	$	3,602		$	572		$	598		$	5		$	3,633			$	3,422		$	162		$	657		$	27		$	3,944

18

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

	Six Months Ended July 31, 2010															Six Months Ended July 31, 2009
							Plus																Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata				Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation				Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)				(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	589,433		$	31,624		$	153,635		$	2,506		$	713,950			$	623,715		$	25,407		$	163,736		$	6,708		$	768,752
Exclude straight-line rent adjustment (1)		(10,239	)		-			-			-			(10,239	)			(9,624	)		-			-			(12	)		(9,636	)
Adjusted revenues		579,194			31,624			153,635			2,506			703,711				614,091			25,407			163,736			6,696			759,116
Add interest and other income		23,047			1,032			14,760			4			36,779				18,402			343			25,761			-			43,820
Add gain on disposition of partial interests in other investment - Nets		55,112			23,675			-			-			31,437				-			-			-			-			-
Add equity in earnings (loss), including impairment of unconsolidated entities		(18,120	)		(6,346	)		5,841			-			(5,933	)			(33,304	)		(68	)		33,685			-			449
Exclude loss on disposition of unconsolidated entities		830			-			(830	)		-			-				-			-			-			-			-
Exclude impairment of unconsolidated real estate		15,181			-			(15,181	)		-			-				21,463			-			(21,463	)		-			-
Exclude depreciation and amortization of unconsolidated entities (see below)		24,717			-			(24,717	)		-			-				22,461			-			(22,461	)		-			-
Adjusted total income		679,961			49,985			133,508			2,510			765,994				643,113			25,682			179,258			6,696			803,385
Operating expenses		338,015			17,469			93,443			1,610			415,599				358,674			11,221			136,070			1,956			485,479
Add back non-Real Estate depreciation and amortization (b)		2,753			-			878			-			3,631				6,960			-			9,997			-			16,957
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		-			-			69			-			69				-			-			241			-			241
Exclude straight-line rent adjustment (2)		(2,659	)		-			-			-			(2,659	)			(3,247	)		-			-			-			(3,247	)
Exclude preference payment		(1,171	)		-			-			-			(1,171	)			(1,171	)		-			-			-			(1,171	)
Adjusted operating expenses		336,938			17,469			94,390			1,610			415,469				361,216			11,221			146,308			1,956			498,259
Net Operating Income		343,023			32,516			39,118			900			350,525				281,897			14,461			32,950			4,740			305,126
Interest expense		(170,721	)		(10,018	)		(39,118	)		(118	)		(199,939	)			(170,318	)		(6,787	)		(32,774	)		(1,922	)		(198,227	)
Gain (loss) on early extinguishment of debt		8,193			-			-			-			8,193				9,063			-			(176	)		-			8,887
Equity in earnings (loss), including impairment of unconsolidated entities		18,120			6,346			(5,841	)		-			5,933				33,304			68			(33,685	)		-			(449	)
Gain on disposition of unconsolidated entities		(830	)		-			-			-			(830	)			-			-			-			-			-
Impairment of unconsolidated real estate		(15,181	)		-			-			-			(15,181	)			(21,463	)		-			-			-			(21,463	)
Depreciation and amortization of unconsolidated entities (see above)		(24,717	)		-			24,717			-			-				(22,461	)		-			22,461			-			-
Net gain on disposition of partial interests in rental properties		205,135			-			-			1,993			207,128				-			-			-			4,548			4,548
Impairment of consolidated real estate		(46,510	)		-			-			-			(46,510	)			(2,575	)		-			-			-			(2,575	)
Depreciation and amortization - Real Estate Groups (a)		(119,821	)		(4,349	)		(23,635	)		(636	)		(139,743	)			(125,441	)		(1,685	)		(21,419	)		(1,977	)		(147,152	)
Amortization of mortgage procurement costs - Real Estate Groups (c)		(6,261	)		(661	)		(1,082	)		(13	)		(6,695	)			(7,066	)		(322	)		(1,042	)		(59	)		(7,845	)
Straight-line rent adjustment (1) + (2)		7,580			-			-			-			7,580				6,377			-			-			12			6,389
Preference payment		(1,171	)		-			-			-			(1,171	)			(1,171	)		-			-			-			(1,171	)
Earnings (loss) before income taxes		196,839			23,834			(5,841	)		2,126			169,290				(19,854	)		5,735			(33,685	)		5,342			(53,932	)
Income tax provision		(55,128	)		-			-			(945	)		(56,073	)			23,087			-			-			(2,072	)		21,015
Equity in earnings (loss), including impairment of unconsolidated entities		(18,120	)		(6,346	)		5,841			-			(5,933	)			(33,304	)		(68	)		33,685			-			449
Earnings (loss) from continuing operations		123,591			17,488			-			1,181			107,284				(30,071	)		5,667			-			3,270			(32,468	)
Discontinued operations, net of tax		5,398			4,217			-			(1,181	)		-				3,289			19			-			(3,270	)		-
Net earnings (loss)		128,989			21,705			-			-			107,284				(26,782	)		5,686			-			-			(32,468	)
Noncontrolling interests
Earnings from continuing operations attributable to noncontrolling interests		(17,488	)		(17,488	)		-			-			-				(5,667	)		(5,667	)		-			-			-
Earnings from discontinued operations attributable to noncontrolling interests		(4,217	)		(4,217	)		-			-			-				(19	)		(19	)		-			-			-
Noncontrolling interests		(21,705	)		(21,705	)		-			-			-				(5,686	)		(5,686	)		-			-			-
Net earnings (loss) attributable to Forest City Enterpirses, Inc.	$	107,284		$	-		$	-		$	-		$	107,284			$	(32,468	)	$	-		$	-		$	-		$	(32,468	)
Preferred dividends		(4,107	)		-			-			-			(4,107	)			-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterpirses, Inc. common shareholders	$	103,177		$	-		$	-		$	-		$	103,177			$	(32,468	)	$	-		$	-		$	-		$	(32,468	)
(a) Depreciation and amortization - Real Estate Groups	$	119,821		$	4,349		$	23,635		$	636		$	139,743			$	125,441		$	1,685		$	21,419		$	1,977		$	147,152
(b) Depreciation and amortization - Non-Real Estate		2,753			-			878			-			3,631				6,960			-			9,997			-			16,957
Total depreciation and amortization	$	122,574		$	4,349		$	24,513		$	636		$	143,374			$	132,401		$	1,685		$	31,416		$	1,977		$	164,109
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	6,261		$	661		$	1,082		$	13		$	6,695			$	7,066		$	322		$	1,042		$	59		$	7,845
(d) Amortization of mortgage procurement costs - Non-Real Estate		-			-			69			-			69				-			-			241			-			241
Total amortization of mortgage procurement costs	$	6,261		$	661		$	1,151		$	13		$	6,764			$	7,066		$	322		$	1,283		$	59		$	8,086

19

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Results of Operations

Net Earnings (Loss) Attributable to Forest City Enterprises, Inc. —Net earnings (loss) attributable to Forest City Enterprises, Inc. for the three months ended July 31, 2010 was $122,846,000 versus $(1,789,000) for the three months ended July 31, 2009. Although we have substantial recurring revenue 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 comparable period is primarily attributable to the following increases, which are net of tax and noncontrolling interest:

• $125,047,000 ($204,269,000, pre-tax) related to the 2010 gain on disposition of partial interests in seven mixed-useUniversity Parklife science properties in Cambridge, Massachusetts, related to the formation of a new joint venture with an outside partner;

• $19,245,000 ($31,437,000, pre-tax) related to the 2010 gain on disposition of partial interest in The Nets;

• $6,218,000 ($10,157,000, pre-tax, which includes $91,000 for unconsolidated entities) related to an increase in income recognized on the sale of state and federal Historic Preservation Tax Credits and New Market Tax Credits;

• $1,161,000 ($1,896,000, pre-tax) related to the 2010 gain on early extinguishment of debt on the purchase of a portion of our senior notes due 2011 and 2017; and

• $1,099,000 ($1,992,000, pre-tax) related to the 2010 gain on disposition of101 San Fernando, an apartment community in San Jose, California.

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

• $21,694,000 ($35,438,000, pre-tax) related to the 2010 increase in impairment charges of consolidated and unconsolidated entities;

• $5,548,000 ($9,063,000, pre-tax) primarily related to the 2009 early extinguishment of nonrecourse mortgage debt atGladden Farms, a land development project located in Marana, Arizona; and

• $3,920,000 ($6,030,000, pre-tax) primarily related to military housing fee income from the management and development of units in Hawaii, Illinois, Washington and Colorado.

Net earnings (loss) attributable to Forest City Enterprises, Inc. for the six months ended July 31, 2010 was $107,284,000 versus $(32,468,000) for the six months ended July 31, 2009. This variance is primarily attributable to the following increases, which are net of tax and noncontrolling interest:

• $107,615,000 ($175,793,000, pre-tax) related to the 2010 gain on disposition of partial interests in seven mixed-useUniversity Parklife science properties related to the formation of a new joint venture with an outside partner;

• $19,245,000 ($31,437,000, pre-tax) related to the 2010 gain on disposition of partial interest in The Nets;

• $17,731,000 ($29,342,000, pre-tax) related to the 2010 gain on disposition of partial interests inThe Grand,Lenox ClubandLenox 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;

• $9,211,000 ($15,046,000, pre-tax) of decreased write-offs of abandoned development projects in 2010 compared to 2009, which includes $2,557,000 for unconsolidated entities;

• $5,843,000 ($9,545,000, pre-tax) related to an increase in income recognized on the sale of state and federal Historic Preservation Tax Credits and New Market Tax Credits;

• $5,016,000 ($8,193,000, 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 and purchase of a portion of our Senior Notes due 2011 and 2017; and

• $1,099,000 ($1,992,000, pre-tax) related to the 2010 gain on disposition of101 San Fernando.

20

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

• $23,050,000 ($37,653,000, pre-tax) related to the 2010 increase in impairment charges of consolidated and unconsolidated entities;

• $5,440,000 ($8,887,000, pre-tax, which includes $176,000 for unconsolidated entities) primarily related to the 2009 early extinguishment of nonrecourse mortgage debt atGladden Farms;

• $4,634,000 ($7,188,000, pre-tax) primarily related to military housing fee income from the management and development of units in Hawaii, Illinois, Washington and Colorado; and

• $2,784,000 ($4,548,000, pre-tax) related to the 2009 gain on 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 July 31, 2010 was $172,114,000 compared to $172,421,000 for the three months ended July 31, 2009, a 0.2% decrease. NOI for the six months ended July 31, 2010 was $324,975,000 compared to $320,728,000 for the six months ended July 31, 2009, a 1.3% increase. A reconciliation of NOI to the most comparable GAAP measure, net earnings (loss), is presented on pages 18-19. A reconciliation of NOI to net earnings (loss) for each strategic business unit can be found on pages 49-60.

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 July 31, 2010 was $183,920,000 compared to $181,560,000 for the three months ended July 31, 2009, a 1.3% increase. NOI for the six months ended July 31, 2010 was $349,117,000 compared to $340,893,000 for the six months ended July 31, 2009, a 2.4% increase.

Comparable NOI increased 2.9% for the three months ended July 31, 2010 compared to the prior year. Retail, office and hotel comparable NOI increased 3.2%, 1.6% and 7.9%, respectively, and our residential portfolio increased 3.8%. Comparable NOI increased 1.7% for the six months ended July 31, 2010 compared to the prior year. Retail, office and hotel comparable NOI increased 0.9%, 1.3% and 17.8%, respectively, and our residential portfolio increased 2.9%.

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.

21

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

EBDT is reconciled to net earnings (loss), the most comparable financial measure calculated in accordance with GAAP, on page 24. The adjustment to recognize rental revenues and rental expenses on the straight-line method is excluded because it is management’s opinion that rental revenues and expenses should be recognized when due from the tenants or due to the landlord. We exclude depreciation and amortization expense related to real estate operations from EBDT because we believe the values of our properties, in general, have appreciated over time in excess of their original cost. Deferred taxes from real estate operations, which are the result of timing differences of certain net expense items deducted in a future year for federal income tax purposes, are excluded until the year in which they are reflected in our current tax provision. The impairment of real estate is excluded from EBDT because it varies from year to year based on factors unrelated to our overall financial performance and is related to the ultimate gain on dispositions of operating properties. Our EBDT may not be directly comparable to similarly-titled measures reported by other companies.

Our EBDT for the three months ended July 31, 2010 increased by $10,077,000 or 10.6% to $105,560,000 from $95,483,000 for the three months ended July 31, 2009. Our Commercial and Residential Segments combined provided a pre-tax EBDT decrease of $11,876,000. This is primarily the result of the comparative decrease in fair market value of derivatives which were marked to market through interest expense of $11,863,000, the decrease in military housing of $6,619,000, reduced EBDT from properties sold of $7,124,000 and increased interest expense on our mature portfolio of $3,718,000. These decreases in the portfolio were partially offset by increased income recognized on the sale of state and federal Historic Preservation, Brownfield and New Market tax credits of $10,157,000, increased NOI on our mature portfolio of $4,416,000 and the ramp up of new properties of $2,184,000.

Our Land Segment provided a pre-tax EBDT decrease of $8,753,000, primarily due to the 2009 gain on early extinguishment of nonrecourse mortgage debt of $9,466,000 for debt forgiveness atGladden Farmswhich did not recur in 2010.

The Nets provided a pre-tax EBDT increase of $32,603,000, primarily due to the gain on disposition of partial interest of $31,437,000.

Corporate pre-tax EBDT increased $1,593,000. This pre-tax EBDT increase includes decreased interest expense of $3,423,000 and gain on early extinguishment of debt related to the repurchase of our Senior Notes of $1,896,000 partially offset by increased company-wide severance and outplacement costs in 2010 compared to 2009 of $2,200,000.

EBDT was unfavorably impacted by a smaller tax benefit of $3,490,000 compared to prior year.

Our EBDT for the six months ended July 31, 2010 increased by $38,940,000 or 28.4% to $176,027,000 from $137,087,000 for the six months ended July 31, 2009. Our Commercial and Residential Segments combined provided a pre-tax EBDT decrease of $2,648,000. This is primarily the result of reduced EBDT from properties sold of $13,263,000, decreased EBDT from the comparative decrease in fair market value of derivatives which were marked to market through interest expense of $9,495,000, the decrease in military housing of $7,911,000 and increased interest expense on our mature portfolio of $4,963,000. These decreases in the portfolio were partially offset by decreased write-offs of abandoned development projects of $15,046,000, increased income recognized on the sale of state and federal Historic Preservation, Brownfield and New Market tax credits of $9,545,000, increased NOI on our mature portfolio of $5,321,000 and the ramp up of new properties of $3,214,000.

Our Land Segment provided a pre-tax EBDT decrease of $11,225,000, primarily due to the 2009 gain on early extinguishment of nonrecourse mortgage debt of $9,466,000 for debt forgiveness atGladden Farmswhich did not recur in 2010.

The Nets provided a pre-tax EBDT increase of $39,077,000, primarily due to the gain on disposition of partial interest of $31,437,000 and decreased losses of $7,640,000 due to reduced amortization of intangible assets related to the purchase of the team.

Corporate pre-tax EBDT increased $17,789,000. This pre-tax EBDT increase includes gain on early extinguishment of debt related to the exchange and repurchase of a portion of our Senior Notes of $8,193,000, decreased interest expense of $8,128,000 and decreased company-wide severance and outplacement costs in 2010 compared to 2009 of $5,345,000.

EBDT was unfavorably impacted by a smaller tax benefit of $4,053,000 compared to prior year.

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

23

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

24

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Summary of EBDT— The information in the following tables present amounts for both full consolidation and pro-rata consolidation, providing a reconciliation of the difference between the two methods, as well as a reconciliation from NOI to EBDT to net earnings (loss). Under the pro-rata consolidation method, we present our partnership investments proportionate to our pro-rata share for each line item of our consolidated financial statements. Under full consolidation, partnership assets and liabilities are reported as consolidated at 100% if deemed under our control or if we are deemed to be the primary beneficiary for investments in VIEs, or on the equity method of accounting if we do not have control or are not the primary beneficiary for investments in VIEs.

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

	Three Months Ended July 31,						Six Months Ended July 31,
	2010			2009			2010			2009
	(in thousands)						(in thousands)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	122,846		$	(1,789	)	$	107,284		$	(32,468	)
Depreciation and amortization – Real Estate Groups(4)		69,789			75,024			139,743			147,152
Amortization of mortgage procurement costs – Real Estate Groups(4)		3,633			3,823			6,695			7,845
Deferred income tax expense – Real Estate Groups(5)		47,985			8,099			37,742			(3,499	)
Current income tax expense on non-operating earnings:(5)
Net gain on disposition of partial interests in rental properties		20,732			-			35,224			-
Gain on disposition included in discontinued operations		115			-			115			3,785
Gain on disposition of unconsolidated entities		1,008			-			240			-
Straight-line rent adjustment(2)		(4,542	)		(3,614	)		(7,580	)		(6,389	)
Preference payment(3)		586			586			1,171			1,171
Impairment of consolidated real estate		46,510			1,451			46,510			2,575
Impairment of unconsolidated real estate		2,282			11,903			15,181			21,463
Net gain on disposition of partial interests in rental properties		(204,269	)		-			(205,135	)		-
Loss on disposition of unconsolidated entities		878			-			830			-
Discontinued operations:(1)
Gain on disposition of rental properties		(6,204	)		-			(6,204	)		(4,548	)
Noncontrolling interest - Gain on disposition		4,211			-			4,211			-
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)	$	105,560		$	95,483		$	176,027		$	137,087
EBDT Per Share
Numerator:
EBDT	$	105,560		$	95,483		$	176,027		$	137,087
If-Converted Method (Pro forma numerator adjustment for interest, net of tax):
3.625% Puttable Senior Notes due 2014		1,110			-			2,219			-
5% Puttable Senior Notes due 2016		1,530			-			3,061			-
EBDT for per share data	$	108,200		$	95,483		$	181,307		$	137,087
Denominator
Weighted average shares outstanding - Basic		155,456,575			144,547,045			155,405,179			124,074,311
Effect of stock options and restricted stock		442,299			1,000			468,164			8,245
Effect of convertible preferred stock		14,550,257			-			11,656,283			-
Effect of convertible debt		28,133,038			-			28,133,038			-
Effect of convertible Class A Common Units		3,646,755			3,646,755			3,646,755			3,646,755
Weighted average shares outstanding - Diluted		202,228,924			148,194,800			199,309,419			127,729,311
EBDT Per Share	$	0.54		$	0.64		$	0.91		$	1.07

EBDT Per Share Quarterly Historical Trends	Three Months Ended
	July 31, 2010		April 30, 2010		January 31, 2010		October 31, 2009		July 31, 2009
Numerator:
EBDT	$	105,560	$	70,467	$	78,407	$	85,612	$	95,483
If-Converted Method (Pro forma numerator adjustment for interest, net of tax):
3.625% Puttable Senior Notes due 2014		1,110		1,110		1,110		308		-
5% Puttable Senior Notes due 2016		1,530		1,530		1,531		102		-
EBDT for per share data	$	108,200	$	73,107	$	81,048	$	86,022	$	95,483
Denominator
Weighted average shares outstanding - Basic		155,456,575		155,352,050		155,324,478		155,314,676		144,547,045
Effect of stock options and restricted stock		442,299		494,029		349,428		229,638		1,000
Effect of convertible preferred stock		14,550,257		8,664,761		-		-		-
Effect of convertible debt		28,133,038		28,133,038		28,133,038		4,675,503		-
Effect of convertible Class A Common Units		3,646,755		3,646,755		3,646,755		3,646,755		3,646,755
Weighted average shares outstanding - Diluted		202,228,924		196,290,633		187,453,699		163,866,572		148,194,800
EBDT Per Share	$	0.54	$	0.37	$	0.43	$	0.52	$	0.64

25

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

(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 July 31,						Six Months Ended July 31,						Three Months Ended July 31,						Six Months Ended July 31,
	2010			2009			2010			2009			2010			2009			2010			2009
Full Consolidation	$	61,031		$	66,891		$	122,574		$	132,401		$	3,602		$	3,422		$	6,261		$	7,066
Non-Real Estate		(1,185	)		(3,508	)		(2,753	)		(6,960	)		-			-			-			-
Real Estate Groups Full Consolidation		59,846			63,383			119,821			125,441			3,602			3,422			6,261			7,066
Real Estate Groups related to noncontrolling interest		(2,578	)		(297	)		(4,349	)		(1,685	)		(572	)		(162	)		(661	)		(322	)
Real Estate Groups Unconsolidated		12,267			10,997			23,635			21,419			598			536			1,082			1,042
Real Estate Groups Discontinued Operations		254			941			636			1,977			5			27			13			59
Real Estate Groups Pro-Rata Consolidation	$	69,789		$	75,024		$	139,743		$	147,152		$	3,633		$	3,823		$	6,695		$	7,845

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

	Three Months Ended July 31,						Six Months Ended July 31,
	2010			2009			2010			2009
	(in thousands)						(in thousands)
(A)    Operating earnings
Current	$	(16,632	)	$	(6,089	)	$	(23,556	)	$	(13,456	)
Deferred		20,608			10,609			23,143			(309	)
		3,976			4,520			(413	)		(13,765	)
(B)    Impairment of consolidated and unconsolidated real estate
Deferred - Consolidated real estate		(18,038	)		(563	)		(18,038	)		(999	)
Deferred - Unconsolidated real estate		(884	)		(4,616	)		(5,887	)		(8,323	)
		(18,922	)		(5,179	)		(23,925	)		(9,322	)
(C)    Net gain on disposition of partial interests in rental properties
Current		20,732			-			35,224			-
Deferred		58,369			-			44,565			-
		79,101			-			79,789			-
(D)    Gain on disposition of unconsolidated entities
Current		1,008			-			240			-
Deferred		(1,350	)		-			(563	)		-
		(342	)		-			(323	)		-
Subtotal (A) (B) (C) (D)
Current		5,108			(6,089	)		11,908			(13,456	)
Deferred		58,705			5,430			43,220			(9,631	)
Income tax expense		63,813			(659	)		55,128			(23,087	)
(E)    Discontinued operations
Operating earnings
Current		(298	)		(18	)		(349	)		10
Deferred		291			146			400			298
		(7	)		128			51			308
Gain on disposition of rental properties
Current		115			-			115			3,785
Deferred		779			-			779			(2,021	)
		894			-			894			1,764
		887			128			945			2,072
Grand Total (A) (B) (C) (D) (E)
Current		4,925			(6,107	)		11,674			(9,661	)
Deferred		59,775			5,576			44,399			(11,354	)
	$	64,700		$	(531	)	$	56,073		$	(21,015	)
Recap of Grand Total:
Real Estate Groups
Current	$	11,537		$	(4,290	)	$	20,056		$	(4,209	)
Deferred		47,985			8,099			37,742			(3,499	)
		59,522			3,809			57,798			(7,708	)
Non-Real Estate Groups
Current		(6,612	)		(1,817	)		(8,382	)		(5,452	)
Deferred		11,790			(2,523	)		6,657			(7,855	)
		5,178			(4,340	)		(1,725	)		(13,307	)
Grand Total	$	64,700		$	(531	)	$	56,073		$	(21,015	)

26

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Retail Lease Expirations as of July 31, 2010

													AVERAGE
													BASE
	NUMBER OF		SQUARE FEET		PERCENTAGE			NET		PERCENTAGE			RENT PER
EXPIRATION	EXPIRING		OF EXPIRING		OF TOTAL			BASE RENT		OF TOTAL			SQUARE FEET
YEAR	LEASES		LEASES (3)		LEASED GLA (1)			EXPIRING (2)		BASE RENT			EXPIRING (3)
2010		188		373,508		2.87	%	$	10,222,153		3.50	%	$	34.22
2011		348		1,217,174		9.35			28,309,393		9.70			28.21
2012		257		960,334		7.38			23,219,384		7.95			28.19
2013		261		1,048,939		8.06			26,160,853		8.96			28.04
2014		225		1,038,884		7.98			21,940,710		7.51			27.26
2015		198		887,065		6.81			20,455,192		7.01			27.55
2016		220		1,211,054		9.30			33,299,400		11.40			36.95
2017		146		991,974		7.62			22,112,958		7.57			26.18
2018		158		714,067		5.48			17,453,071		5.98			26.06
2019		120		1,019,109		7.83			23,156,729		7.93			24.83
2020		83		719,561		5.53			14,795,704		5.07			27.79
Thereafter		94		2,838,784		21.79			50,858,201		17.42			22.45
Total		2,298		13,020,453		100.00	%	$	291,983,748		100.00	%	$	27.24

(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.

27

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Office Lease Expirations as of July 31, 2010

													AVERAGE
													BASE
	NUMBER OF		SQUARE FEET		PERCENTAGE			NET		PERCENTAGE			RENT PER
EXPIRATION	EXPIRING		OF EXPIRING		OF TOTAL			BASE RENT		OF TOTAL			SQUARE FEET
YEAR	LEASES		LEASES(3)		LEASED GLA(1)			EXPIRING(2)		BASE RENT			EXPIRING(3)
2010		54		713,865		6.03	%	$	17,321,090		5.65	%	$	28.22
2011		78		712,020		6.02			13,886,079		4.53			26.16
2012		90		1,126,287		9.52			26,500,845		8.65			30.37
2013		80		1,186,476		10.03			27,381,710		8.94			24.56
2014		50		959,450		8.11			18,168,396		5.93			30.36
2015		25		393,479		3.33			6,961,479		2.27			20.35
2016		23		439,573		3.72			9,783,160		3.19			24.29
2017		23		365,166		3.09			8,862,349		2.89			27.38
2018		17		1,060,246		8.96			30,258,173		9.88			32.44
2019		18		706,619		5.97			12,698,143		4.15			25.61
2020		12		989,651		8.37			27,239,639		8.89			34.02
Thereafter		35		3,177,275		26.85			107,257,126		35.03			38.24
Total		505		11,830,107		100.00	%	$	306,318,189		100.00	%	$	31.07

(1)	GLA = Gross Leasable Area.
(2)	Net base rent expiring is an operating statistic and is not comparable to rental revenue, a GAAP financial measure. The primary differences arise because net base rent is determined using the tenant’s contractual rental agreements at our ownership share of the base rental income from expiring leases as determined within the rent agreement and it does not include adjustments such as the impact of straight-line rent, amortization of above and below market lease values in-place, and contingent rental payments (which are not reasonably estimable).
(3)	Square feet of expiring leases and average base rent per square feet are operating statistics that represent 100% of the square footage and base rental income per square foot from expiring leases.

28

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Retail Tenants as of July 31, 2010

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

	NUMBER		LEASED		PERCENTAGE OF
	OF		SQUARE		TOTAL RETAIL
TENANT	LEASES		FEET		SQUARE FEET
Bass Pro Shops, Inc.		3		510,855		3.92	%
Regal Entertainment Group		5		381,461		2.93
AMC Entertainment, Inc.		5		377,797		2.90
TJX Companies		11		347,457		2.67
The Gap		24		309,701		2.38
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		1.11
Pathmark Stores, Inc.		2		123,500		0.95
American Eagle Outfitters		17		97,862		0.75
Subtotal		185		3,439,743		26.42
All Others		2,113		9,580,710		73.58
Total		2,298		13,020,453		100.00	%

29

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Office Tenants as of July 31, 2010

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

	LEASED		PERCENTAGE OF
	SQUARE		TOTAL OFFICE
TENANT	FEET		SQUARE FEET
City of New York		865,185		7.31	%
Millennium Pharmaceuticals, Inc.		653,606		5.52
U.S. Government		614,218		5.19
District of Columbia		545,465		4.61
Morgan Stanley & Co.		444,685		3.76
Securities Industry Automation Corp.		433,971		3.67
Wellchoice, Inc.		392,514		3.32
JP Morgan Chase & Co.		385,254		3.26
Forest City Enterprises, Inc.(1)		366,034		3.09
Bank of New York		323,043		2.73
National Grid		254,034		2.15
Clearbridge Advisors, LLC, a Legg Mason Company		193,249		1.63
Covington & Burling, LLP		160,565		1.36
Seyfarth Shaw, LLP		96,909		0.82
Subtotal		5,728,732		48.42
All Others		6,101,375		51.58
Total		11,830,107		100.00	%

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

30

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Openings and Acquisitions as of September 8, 2010

														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		Lease
Property	Location	Acq (A)	Acquired	Ownership % (a)			(1)			(GAAP) (b)		(2)		(1) X (2)		Units			Area		Commitment % (h)
2010 (4)										(in millions)
Retail Centers:
Village at Gulfstream Park (d)	Hallandale Beach, FL	D	Q1-10		50.0	%		50.0	%	$	0.0	$	210.6	$	105.3		511,000	(i)		511,000		73	%
East River Plaza (d) (e)	Manhattan, NY	D	Q2-10		35.0	%		50.0	%		0.0		390.6		195.3		527,000			527,000		95	%
										$	0.0	$	601.2	$	300.6		1,038,000			1,038,000
Office:
Waterfront Station:	Washington, D.C.	D	Q1-10		45.0	%		45.0	%
East 4th & West 4th Buildings										$	241.5	$	241.5	$	108.7
Land and master planning											85.2		85.2		38.3
										$	326.7	$	326.7	$	147.0		631,000	(j)				99	%
Residential:
Presidio Landmark	San Francisco, CA	D	Q3-10		100.0	%		100.0	%	$	108.5	$	108.5	$	108.5		161					1	%
Total 2010(f)										$	435.2	$	1,036.4	$	556.1
Prior Two Years Openings (17)
Retail Centers:
Promenade in Temecula Expansion	Temecula, CA	D	Q1-09		75.0	%		100.0	%	$	112.8	$	112.8	$	112.8		127,000			127,000		80	%
Orchard Town Center	Westminster, CO	D	Q1-08		100.0	%		100.0	%		147.6		147.6		147.6		980,000			565,000		80	%
Shops at Wiregrass	Tampa, FL	D	Q3-08		50.0	%		100.0	%		146.4		146.4		146.4		642,000			352,000		93	%
White Oak Village	Richmond, VA	D	Q3-08		50.0	%		100.0	%		66.1		66.1		66.1		800,000			294,000		77	%
										$	472.9	$	472.9	$	472.9		2,549,000			1,338,000
Office:
818 Mission Street (d)	San Francisco, CA	A	Q1-08		50.0	%		50.0	%	$	0.0	$	15.6	$	7.8		28,000					23	%
Johns Hopkins - 855 North Wolfe Street	East Baltimore, MD	D	Q1-08		76.6	%		76.6	%		87.3		87.3		66.9		279,000					81	%
Mesa del Sol Town Center (d)	Albuquerque, NM	D	Q4-08		47.5	%		47.5	%		0.0		16.6		7.9		74,000					16	%
Mesa del Sol - Fidelity (d) (g)	Albuquerque, NM	D	Q4-08/Q3-09		47.5	%		47.5	%		0.0		23.3		11.1		210,000					100	%
										$	87.3	$	142.8	$	93.7		591,000
Residential:
North Church Towers	Parma Heights, OH	A	Q3-09		100.0	%		100.0	%		4.9	$	4.9	$	4.9		399					86	%
DKLB BKLN (formerly 80 Dekalb) (g)	Brooklyn, NY	D	Q4-09/10		80.0	%		100.0	%		156.1		156.1		156.1		365					91	%
Lucky Strike	Richmond, VA	D	Q1-08		100.0	%		100.0	%		35.2		35.2		35.2		131					91	%
Uptown Apartments (d) (g)	Oakland, CA	D	Q1-08/Q4-08		50.0	%		50.0	%		0.0		177.2		88.6		665					89	%
Mercantile Place on Main (g)	Dallas, TX	D	Q1-08/Q4-08		100.0	%		100.0	%		85.1		85.1		85.1		366					82	%
Barrington Place (d)	Raleigh, NC	A	Q3-08		49.0	%		49.0	%		0.0		23.7		11.6		274					88	%
Legacy Arboretum (d)	Charlotte, NC	A	Q3-08		49.0	%		49.0	%		0.0		23.1		11.3		266					89	%
Hamel Mill Lofts (g)	Haverhill, MA	D	Q4-08/Q2-09		100.0	%		100.0	%		75.6		75.6		75.6		305					78	%
Legacy Crossroads (d) (g)	Cary, NC	A/D	Q4-08/Q3-09		50.0	%		50.0	%		0.0		34.4		17.2		344					94	%
										$	356.9	$	615.3	$	485.6		3,115
Total Prior Two Years Openings and Acquisitions (k)										$	917.1	$	1,231.0	$	1,052.2
Total 2009											273.8		273.8		273.8
Total 2008											643.3		957.2		778.4
										$	917.1	$	1,231.0	$	1,052.2

See footnotes on page 32.

31

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Projects Under Construction as of September 8, 2010 (4)

																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:
Ridge Hill (g)	Yonkers, NY	D	2011/2012		70.0	%			100.0	%		$	798.7	$	798.7	$	798.7		1,336,000		1,336,000	(n)		31	%
Residential:
Beekman (g)	Manhattan, NY	D	Q1-11/12		49.0	%			70.0	%		$	875.7	$	875.7	$	613.0		904
The Yards - Foundry Lofts	Washington, D.C.	D	Q4-11		100.0	%			100.0	%			59.2		59.2		59.2		170
												$	934.9	$	934.9	$	672.2		1,074
Arena:
Barclays Center (l)	Brooklyn, NY	D	2012		26.6	%			26.6	%		$	904.3	$	904.3	$	240.5		670,000	18,000 seats		(o)		51	%(q)
Total Under Construction (m)												$	2,637.9	$	2,637.9	$	1,711.4
Fee Development:																		Sq. ft.
Las Vegas City Hall	Las Vegas, NV	D	Q1-12		-		(p)		-		(p)	$	0.0	$	146.2	$	0.0		270,000

FOOTNOTES

(a)	As is customary within the real estate industry, the Company invests in certain real estate projects through joint ventures. For some of these projects, the Company provides funding at percentages that differ from the Company’s legal ownership.
(b)	Amounts are presented on the full consolidation method of accounting, a GAAP measure. Under full consolidation, costs are reported as consolidated at 100 percent if we are deemed to have control or to be the primary beneficiary of our investments in the variable interest entity (“VIE”).
(c)	Cost at pro-rata share represents Forest City’s share of cost, based on the Company’s pro-rata ownership of each property (a non-GAAP measure). Under the pro-rata consolidation method of accounting the Company determines its pro-rata share by multiplying its pro-rata ownership by the total cost of the applicable property.
(d)	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)	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. This also includes Costco which opened Q4-09.
(f)	The difference between the full consolidation cost amount (GAAP) of $435.2 million to the Company’s pro-rata share (a non-GAAP measure) of $556.1 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 $300.6 million.
(g)	Phased-in openings. Costs are representative of the total project.
(h)	The lease percentage for the residential properties represents the occupancy as of July 31, 2010.
(i)	Includes 89,000 square feet of office space. Excluding the office space from the calculation of the leased percentage would result in the leased percentage being 79%.
(j)	Includes 85,000 square feet of retail space.
(k)	The difference between the full consolidation cost amount (GAAP) of $917.1 million to the Company’s pro-rata share (a non-GAAP measure) of $1,052.2 million consists of a reduction to full consolidation for noncontrolling interest of $20.4 million of cost and the addition of its share of cost for unconsolidated investments of $155.5 million.
(l)	The stated ownership in the arena reflects the transaction with entities controlled by Mikhail Prokhorov.
(m)	The difference between the full consolidation cost amount (GAAP) of $2,637.9 million to the Company’s pro-rata share (a non-GAAP measure) of $1,711.4 million consists of a reduction to full consolidation for noncontrolling interest of $926.5 million.
(n)	Includes 162,000 square feet of office space.
(o)	The Nets, a member of the NBA, has a 37 year license agreement to use the arena.
(p)	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.
(q)	Represents the percentage of forecasted contractually obligated arena income that is under contract. Contractually obligated income, which includes revenue from naming rights, sponsorships, suite licenses, Nets minimum rent and food concession agreements, accounts for 72% of total forecasted revenues for the Arena.

32

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Equity Requirements for Projects Under Construction^(a)
As of September 8, 2010

			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	$	2,637.9	$	-	$	2,637.9	$	926.5	$	-	$	1,711.4
Total Loan Draws and Other Sources at Completion(d)		1,739.6		-		1,739.6		524.8		-		1,214.8
Net Equity at Completion	$	898.3	$	-	$	898.3	$	401.7	$	-	$	496.6
Net Costs Incurred to Date(e)	$	1,529.5	$	-	$	1,529.5	$	434.5	$	-	$	1,095.0
Loan Draws and Other Sources to Date(e)		831.2		-		831.2		170.5		-		660.7
Net Equity to Date(e)	$	698.3	$	-	$	698.3	$	264.0	$	-	$	434.3
% of Total Equity		78%				78%						87%
Remaining Costs	$	1,108.4	$	-	$	1,108.4	$	492.0	$	-	$	616.4
Remaining Loan Draws and Other Sources(f)		908.4		-		908.4		354.3		-		554.1
Remaining Equity	$	200.0	$	-	$	200.0	$	137.7	$	-	$	62.3
% of Total Equity		22%				22%						13%

(a)	This schedule includes only the four properties listed on the previous page. This does not include costs associated with phased-in units, operating property renovations and military housing.
(b)	Amounts are presented on the full consolidation method of accounting, a GAAP measure. Under full consolidation, costs are reported as consolidated at 100 percent if we are deemed to have control or to be the primary beneficiary of our investments in the variable interest entity (“VIE”).
(c)	Cost at pro-rata share represents Forest City’s share of cost, based on the Company’s pro-rata ownership of each property (a non-GAAP measure). Under the pro-rata consolidation method of accounting the Company determines its pro-rata share by multiplying its pro-rata ownership by the total cost of the applicable property.
(d)	“Other Sources” includes estimates of third party subsidies and tax credit proceeds. The timing and the amounts may differ from our estimates.
(e)	Reflects activity through July 31, 2010.
(f)	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.

33

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Projects Under Development
July 31, 2010

Below is a summary of our active large scale development projects, which have yet to commence construction, often referred to as our “shadow pipeline” which are crucial to our long-term growth. While we cannot make any assurances on the timing or delivery of these projects, our track record speaks to our ability to bring large, complex, projects to fruition when there is demand and available construction financing. The projects listed below represent pro-rata costs of $554.2 million ($825.5 million at full consolidation) of Projects Under Development (“PUD”) on our balance sheet and pro-rata mortgage debt of $111.8 million ($190.7 million at full consolidation).

1)Atlantic Yards —Brooklyn, NY

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

2)The Yards —Washington, D.C.

The Yards is a 42-acre mixed-use project, located in the neighborhood of the Washington Nationals baseball park in Southeast D.C. The full development is expected to include up to 2,700 residential units, 1.8 million square feet of office space, and 300,000 square feet of retail and dining space. The Yards will also feature a 5.5-acre publicly funded public park that will be a gathering place and recreational focus for the community. The first residential building, Foundry Lofts, commenced construction in Q3 2010.

3)LiveWork Las Vegas —Las Vegas, NV

LiveWork Las Vegas is a mixed-use project on a 12.7-acre parcel in downtown Las Vegas. At full build-out, the project will have a new 260,000-square-foot City Hall for Las Vegas, a fee development project, and is also expected to include up to 1 million square feet of office space and approximately 300,000 square feet of retail.

4)Colorado Science + Technology Park at Fitzsimons —Aurora, CO

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

5)The Science + Technology Park at Johns Hopkins —Baltimore, MD

The 31-acre Science + Technology Park at Johns Hopkins is a new center for collaborative research directly adjacent to the world-renowned Johns Hopkins medical and research complex. Initial plans call for 1.1 million square feet in five buildings, with future phases that could support additional expansion. In 2008, the Company opened the first of those buildings, 855 North Wolfe Street, a 279,000-square-foot office building anchored by the Johns Hopkins School of Medicine’s Institute for Basic Biomedical Sciences.

6)Waterfront Station —Washington, D.C.

Located in Southwest Washington, Waterfront Station is adjacent to the Waterfront/Southeastern University MetroRail station. Waterfront Station is expected to include 1.2 million square feet of office space, an estimated 750 residential units and 125,000 square feet of stores and restaurants. The project’s first two government office buildings, which have been designed to meet LEED Silver standards, total 631,000 square feet of office, opened in Q1 2010, and included ground-level retail space. The office component is fully leased to the District of Columbia for governmental offices and the retail space is also substantially leased.

34

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Military Housing

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. 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		971
Total Military Housing						$	0.0	$	1,828.2		10,055

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

Recent commitment but not yet closed

Air Force — Southern Group was awarded on August 30, 2010. We are currently in exclusive negotiations with the Air Force. This project is expected to include 2,185 end state units at four Air Force bases in Sumter, SC, Manchester, TN, Charleston, SC and Biloxi, MS. There are 330 financially excluded units that will not be encumbered by debt and which may be removed from the end state at the sole discretion of the Air Force. The financial closing of the project and commencement of construction are expected in early 2011.

Development fees related to our military housing projects are earned based on a contractual percentage of the actual development costs incurred. We also recognize additional development incentive fees upon successful completion of certain criteria, such as incentives to realize development cost savings, encourage small and local business participation, comply with specified safety standards and other project management incentives as specified in the development agreements. NOI from development and development incentive fees is $1,705,000 and $3,318,000 for the three and six months ended July 31, 2010, respectively, and $3,016,000 and $5,831,000 for the three and six months ended July 31, 2009, respectively.

Construction management fees are earned based on a contractual percentage of the actual construction costs incurred. We also recognize certain construction incentive fees based upon successful completion of certain criteria as set forth in the construction contracts. NOI from construction and incentive fees is $1,465,000 and $3,060,000 for the three and six months ended July 31, 2010, respectively, and $2,804,000 and $4,349,000 recognized during the three and six months ended July 31, 2009, respectively.

Property management and asset management fees are earned based on a contractual percentage of the annual net rental income and annual operating income, respectively, that is generated by the military housing privatization projects as defined in the agreements. We also recognize certain property management incentive fees based upon successful completion of certain criteria as set forth in the property management agreements. Property management, management incentive and asset management fees generated NOI of $3,120,000 and $6,242,000 during the three and six months ended July 31, 2010, respectively, and $2,907,000 and $5,925,000 during the three and six months ended July 31, 2009, respectively.

35

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Land Held for Development or Sale

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

	Gross		Saleable		Option
Location	Acres (1)		Acres (2)		Acres (3)
Stapleton - Denver, CO		227		151		1,416
Carolinas		1,486		1,036		788
Arizona		961		546		-
Mesa del Sol - - Albuquerque, NM		3,023		1,659		5,731
Ohio		1,006		701		470
Central Station - Chicago, IL		30		30		-
Florida		1,413		1,413		-
Texas		1,019		761		-
Other		796		737		-
Total		9,961		7,034		8,405

(1)	Represent all acres currently owned including those used for roadways, open spaces and parks.
(2)	Saleable acres represent the total of all acres currently owned that will be available for sales. The Land Development Group may choose to further develop some of the acres into completed sublots prior to sale.
(3)	Option acres are those acres that the Land Development Group has a formal option to acquire. Typically these options are in the form of purchase agreements with contingencies for the satisfaction of due diligence reviews.

Stapleton —Denver, CO

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

Mesa del Sol —Albuquerque, NM

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

Central Station —Chicago, IL

Located adjacent to the city’s Museum Campus, and just minutes from the heart of Chicago’s Loop, the 80-acre Central Station is the fastest growing residential community in the city, with more than 4,250 residential units completed and occupied. Over 600 units are under construction and another 4,000 units are in development. Central Station, a 14 million-square-foot development, is being developed in partnership with The Fogelson Companies.

Other Significant Land Holdings

Cotton Creek —Mooresville, NC

Cotton Creek is a master-planned community located in a northern suburb of Charlotte, NC. This community will feature a variety of attached and detached home sites, which will be sold to a mix of national and local builders. Cotton Creek is 532 acres. When completed the development is expected to produce approximately 1,300 residential lots.

Legacy Lakes —Aberdeen, NC

Legacy Lakes is a master-planned community located in the Pinehurst area. This community is surrounding the Nicklaus-designed Legacy Golf Course. Legacy Lakes is 405 acres and includes 718 residential lots. Of the 405 total acres, 264 are saleable acres and 9 acres have been sold to date.

Gladden Farms —Marana, AZ

Gladden Farms is a master-planned community that includes residential and commercial uses in a suburban area of northwest Tucson. This community includes parks, trails and a school in a rural setting. Gladden Farms is 1,350 acres and includes approximately 4,141 residential lots and 223 acres of commercial space. As of September 8, 2010, 1,260 lots and 100 commercial acres have been sold. Of the 1,350 total acres, 904 are saleable acres and 413 acres have been sold to date.

Tangerine Crossing —Tucson, AZ

Tangerine Crossing is a master-planned gated residential community with a major retail component on the exterior in a desirable region of the Tucson metropolitan area. This community includes open space, trails and recreation. Tangerine Crossing is 309 acres and includes 396 residential lots and a 25-acre retail center. As of September 8, 2010, 185 lots and the 25 commercial acres have been sold. Of the 309 total acres, 103 are saleable acres and 59 acres have been sold to date.

36

Debt for Projects under Construction and Development

We use nonrecourse mortgage debt and nonrecourse notes payable 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 July 31, 2010, the detail of how much is outstanding compared to the total commitment under the financing is as follows:

					Plus
	Full		Less		Unconsolidated		Pro-Rata
	Consolidation		Noncontrolling		Investments at		Consolidation
	(GAAP)		Interest		Pro-Rata		(Non-GAAP)
			(in thousands)
Outstanding
Fixed	$	138,395	$	71,868	$	30,161	$	96,688
Variable
Taxable		1,013,700		209,934		10,063		813,829
Tax-Exempt		203,900		61,986		-		141,914
Total outstanding on projects under construction and development(1)	$	1,355,995	$	343,788	$	40,224	$	1,052,431
Commitment
Fixed	$	620,364	$	411,260	$	30,412	$	239,516
Variable
Taxable		1,283,446		223,614		11,734		1,071,566
Tax-Exempt		203,900		61,986		-		141,914
Total commitment	$	2,107,710	$	696,860	$	42,146	$	1,452,996

(1) Proceeds from outstanding debt of $183,640 and $133,347, at full and pro-rata consolidation, respectively, described above is recorded as restricted cash and escrowed funds in our Consolidated Balance Sheet. For bonds issued in conjunction with development, the full amount of the bonds at the beginning of construction must remain in escrow until costs are incurred.

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 six months ended July 31, 2010, we completed the following financings:

					Plus
			Less		Unconsolidated
	Full		Noncontrolling		Investments at		Pro-Rata
Purpose of Financing	Consolidation		Interest		Pro-Rata		Consolidation
			(in thousands)
Refinancings	$	4,900	$	490	$	19,989	$	24,399
Construction and development projects		545,008		399,761		-		145,247
Loan extensions/additional fundings		200,513		26,676		119,925		293,762
	$	750,421	$	426,927	$	139,914	$	463,408

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Debt(dollars in thousands)
As of July 31, 2010

	Period Ending January 31, 2011												Fiscal 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	$	123,696		$	2,639		$	30,486		$	151,543		$	305,958		$	3,965		$	100,570		$	402,563
Weighted average rate		7.69	%		8.34	%		2.96	%		6.73	%		6.81	%		4.92	%		6.82	%		6.83	%
Variable:
Variable-rate debt		397,131			200			65,084			462,015			603,509			193,963			65,321			474,867
Weighted average rate		3.36	%		5.00	%		2.58	%		3.25	%		4.10	%		4.45	%		3.31	%		3.84	%
Tax-Exempt		-			-			3,305			3,305			132,430			67			-			132,363
Weighted average rate		-	%		-	%		1.65	%		1.65	%		2.61	%		3.78	%		-	%		2.61	%
Total variable-rate debt		397,131			200			68,389			465,320			735,939			194,030			65,321			607,230
Total Nonrecourse Debt	$	520,827		$	2,839		$	98,875		$	616,863		$	1,041,897		$	197,995		$	165,891		$	1,009,793
Weighted Average Rate		4.39	%		8.10	%		2.66	%		4.09	%		4.70	%		4.46	%		5.44	%		4.87	%
	Fiscal Year Ending January 31, 2013												Fiscal 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	$	343,470		$	17,949		$	46,435		$	371,956		$	846,190		$	83,154		$	75,951		$	838,987
Weighted average rate		6.12	%		6.79	%		6.32	%		6.11	%		6.54	%		9.86	%		6.09	%		6.17	%
Variable:
Variable-rate debt		926,034			144,403			51,961			833,592			46,411			-			1,466			47,877
Weighted average rate		3.80	%		3.31	%		3.79	%		3.89	%		6.05	%		-	%		2.59	%		5.95	%
Tax-Exempt		204,616			62,057			-			142,559			91,565			77			-			91,488
Weighted average rate		2.67	%		2.67	%		-	%		2.67	%		2.78	%		3.76	%		-	%		2.78	%
Total variable-rate debt		1,130,650			206,460			51,961			976,151			137,976			77			1,466			139,365
Total Nonrecourse Debt	$	1,474,120		$	224,409		$	98,396		$	1,348,107		$	984,166		$	83,231		$	77,417		$	978,352
Weighted Average Rate		4.19	%		3.41	%		4.98	%		4.37	%		6.17	%		9.85	%		6.02	%		5.85	%

38

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Debt(dollars in thousands)(continued)
As of July 31, 2010

	Fiscal 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	$	483,686		$	68,557		$	154,727		$	569,856		$	1,769,441		$	115,255		$	723,800		$	2,377,986
Weighted average rate		5.95	%		5.78	%		5.35	%		5.81	%		5.83	%		6.09	%		5.85	%		5.82	%
Variable:
Variable-rate debt		12,414			-			19,982			32,396			640,001			1,500			127,644			766,145
Weighted average rate		1.55	%		-	%		4.52	%		3.38	%		6.40	%		-	%		1.43	%		5.59	%
Tax-Exempt		815			82			-			733			343,501			6,971			227,056			563,586
Weighted average rate		3.78	%		3.76	%		-	%		3.78	%		1.45	%		2.59	%		1.77	%		1.57	%
Total variable-rate debt		13,229			82			19,982			33,129			983,502			8,471			354,700			1,329,731
Total Nonrecourse Debt	$	496,915		$	68,639		$	174,709		$	602,985		$	2,752,943		$	123,726		$	1,078,500		$	3,707,717
Weighted Average Rate		5.84	%		5.78	%		5.26	%		5.68	%		5.42	%		5.81	%		4.47	%		5.13	%
	Total
							Plus
				Less			Unconsolidated
	Full			Noncontrolling			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	3,872,441		$	291,519		$	1,131,969		$	4,712,891
Weighted average rate		6.16	%		7.14	%		5.82	%		6.02	%
Variable:	��
Variable-rate debt		2,625,500			340,066			331,458			2,616,892
Weighted average rate		4.47	%		3.95	%		2.59	%		4.30	%
Tax-Exempt		772,927			69,254			230,361			934,034
Weighted average rate		2.13	%		2.66	%		1.77	%		2.00	%
Total variable-rate debt		3,398,427			409,320			561,819			3,550,926
Total Nonrecourse Debt	$	7,270,868		$	700,839		$	1,693,788		$	8,263,817
Weighted Average Rate		5.12	%		5.15	%		4.64	%		5.02	%

39

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 July 31, 2010:

Upcoming Maturities Summary(in thousands)
As of July 31, 2010

			Less						Plus
			Unconsolidated		Full		Less		Unconsolidated		Pro-Rata
			Investments		Consolidation		Noncontrolling		Investments		Consolidation
Year Ending January 31, 2011	100%		at 100%		(GAAP)		Interest		at Pro-Rata		(Non-GAAP)
Total Maturities (Nonrecourse Debt)	$	700,301	$	179,474	$	520,827	$	2,839	$	98,875	$	616,863
Less: Scheduled Payments		57,814		21,104		36,710		1,291		11,022		46,441
Net Maturities		642,487		158,370		484,117		1,548		87,853		570,422
Total Net Maturities Project Count		24		8		16		-		8		24
Closed Loans / To be Fully Amortized(2)		291,972		17,431		274,541		-		17,293		291,834
Committed Deals / Automatic Extensions(2)		20,516		8,989		11,527		-		5,208		16,735
Extension Available(1) (2)		41,966		24,969		16,997		-		11,860		28,857
Subtotal		354,454		51,389		303,065		-		34,361		337,426
Remaining to Finance	$	288,033	$	106,981	$	181,052	$	1,548	$	53,492	$	232,996
Remaining to Address Project Count		13		3		10		-		3		13

			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)	$	1,370,047	$	328,150	$	1,041,897	$	197,995	$	165,891	$	1,009,793
Less: Scheduled Payments		93,262		28,684		64,578		2,632		15,801		77,747
Add: Corporate Debt		46,891		-		46,891		-		-		46,891
Net Maturities		1,323,676		299,466		1,024,210		195,363		150,090		978,937
Total Net Maturities Project Count		38		16		22		-		16		38
Closed Loans / To be Fully Amortized(2)		233		233		-		-		116		116
Committed Deals / Automatic Extensions(2)		16,112		16,112		-		-		8,056		8,056
Extension Available(1) (2)		515,524		26,432		489,092		115,283		13,216		387,025
Subtotal		531,869		42,777		489,092		115,283		21,388		395,197
Remaining to Finance	$	791,807	$	256,689	$	535,118	$	80,080	$	128,702	$	583,740
Remaining to Address Project Count		23		10		13		-		10		23

			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)	$	1,668,222	$	194,102	$	1,474,120	$	224,409	$	98,396	$	1,348,107
Less: Scheduled Payments		79,078		25,982		53,096		2,814		15,099		65,381
Add: Corporate Debt(3)		112,472		-		112,472		-		-		112,472
Net Maturities		1,701,616		168,120		1,533,496		221,595		83,297		1,395,198
Total Net Maturities Project Count		34		11		23		-		11		34
Closed Loans / To be Fully Amortized(2)		12,979		1,246		11,733		-		441		12,174
Committed Deals / Automatic Extensions(2)		63,911		-		63,911		942		-		62,969
Extension Available(1) (2)		1,110,002		57,190		1,052,812		202,863		28,882		878,831
Subtotal		1,186,892		58,436		1,128,456		203,805		29,323		953,974
Remaining to Finance	$	514,724	$	109,684	$	405,040	$	17,790	$	53,974	$	441,224
Remaining to Address Project Count		25		8		17		-		8		25

(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 September 8, 2010.
(3)	The credit facility amount of $112,472 outstanding as of July 31, 2010 has a maximum commitment of $497,028. Based on specific capital raising events through July 31, 2010, a permanent reduction in available borrowings of $15,324 became effective August 5, 2010. The remaining availability is further reduced by $85,023 of outstanding letters of credit and $46,891 reserve for retirement of indebtedness.

40

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:

	July 31, 2010		January 31, 2010
	(in thousands)
Members’ and partners’ equity, as below	$	528,024	$	557,456
Equity of other members and partners		474,442		513,708
Company’s investment in partnerships		53,582		43,748
Basis differences		52,022		21,498
Advances to and on behalf of other affiliates		54,971		200,097
Total Investments in and Advances to Affiliates	$	160,575	$	265,343

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

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
	July 31, 2010			January 31, 2010			July 31, 2010			January 31, 2010
	(in thousands)
Balance Sheet:
Real Estate
Completed rental properties	$	5,392,962		$	4,373,423		$	1,894,178		$	1,368,451
Projects under construction and development		287,397			771,521			117,284			305,420
Land held for development or sale		268,729			271,129			113,844			116,863
Total Real Estate		5,949,088			5,416,073			2,125,306			1,790,734
Less accumulated depreciation		(891,462	)		(721,908	)		(406,746	)		(326,169	)
Real Estate, net		5,057,626			4,694,165			1,718,560			1,464,565
Restricted cash - Military housing bond funds		381,462			481,615			4,814			6,149
Other restricted cash and escrowed funds		209,346			222,752			71,990			62,257
Other assets		703,685			501,169			197,318			173,799
Total Assets	$	6,352,119		$	5,899,701		$	1,992,682		$	1,706,770
Mortgage debt and notes payable, nonrecourse	$	5,326,806		$	4,721,705		$	1,693,788		$	1,473,947
Other liabilities		497,289			620,540			193,290			168,410
Total Liabilities		5,824,095			5,342,245			1,887,078			1,642,357
Members’ and partners’ equity		528,024			557,456			105,604			65,246
Noncontrolling interest		-			-			-			(833	)
Total Equity		528,024			557,456			105,604			64,413
Total Liabilities and Members’ and Partners’ Equity	$	6,352,119		$	5,899,701		$	1,992,682		$	1,706,770

41

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 July 31,	2010			2009			2010			2009
	(in thousands)
Operations:
Revenues	$	220,785		$	224,192		$	80,162		$	97,417
Equity in earnings of unconsolidated entities on a pro-rata basis		-			-			(6,206	)		381
Operating expenses		(123,520	)		(150,847	)		(39,807	)		(72,992	)
Interest expense including early extinguishment of debt		(68,283	)		(52,502	)		(19,162	)		(16,494	)
Impairment of real estate(1)		(3,482	)		-			(1,817	)		-
Depreciation and amortization		(44,110	)		(38,720	)		(12,865	)		(14,493	)
Interest and other income		4,873			3,377			(56	)		732
Noncontrolling interest		-			-			98			(86	)
Loss from continuing operations		(13,737	)		(14,500	)		347			(5,535	)
Discontinued operations:
Operating earnings from rental properties		288			324			-			-
Net (loss) earnings (pre-tax)		(13,449	)		(14,176	)		347			(5,535	)
Impairment of investment in unconsolidated entities(1)		(465	)		(11,903	)		(465	)		(11,903	)
Loss on disposition of equity method investments, net(2)		(878	)		-			(878	)		-
Net loss (pre-tax) from unconsolidated entities	$	(14,792	)	$	(26,079	)	$	(996	)	$	(17,438	)

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Six Months Ended July 31,	2010			2009			2010			2009
	(in thousands)
Operations:
Revenues	$	456,078		$	448,693		$	167,701		$	188,292
Equity in earnings of unconsolidated entities on a pro-rata basis		-			-			(5,933	)		449
Operating expenses		(265,457	)		(298,064	)		(93,443	)		(136,070	)
Interest expense including early extinguishment of debt		(131,100	)		(108,370	)		(39,118	)		(32,950	)
Impairment of real estate(1)		(4,939	)		-			(2,560	)		-
Depreciation and amortization		(81,803	)		(83,141	)		(25,664	)		(32,699	)
Interest and other income		7,336			8,503			694			1,205
Noncontrolling interest		-			-			(6,346	)		(68	)
Loss from continuing operations		(19,885	)		(32,379	)		(4,669	)		(11,841	)
Discontinued operations:
Operating earnings from rental properties		110			460			-			-
Net loss (pre-tax)		(19,775	)		(31,919	)		(4,669	)		(11,841	)
Impairment of investment in unconsolidated entities(1)		(12,621	)		(21,463	)		(12,621	)		(21,463	)
Loss on disposition of equity method investments, net(2)		(830	)		-			(830	)		-
Net loss (pre-tax) from unconsolidated entities	$	(33,226	)	$	(53,382	)	$	(18,120	)	$	(33,304	)

42

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 July 31,
		2010		2009		2010		2009
				(in thousands)
Impairment of real estate:
Mixed-Use Land Development:
Mercy Campus at Central Station	(Chicago, Illinois)	$	3,482	$	-	$	1,817	$	-
Impairment of investments in unconsolidated entities:
Specialty Retail Centers:
Southgate Mall	(Yuma, Arizona)	$	-	$	1,611	$	-	$	1,611
Apartment Communities:
Uptown Apartments	(Oakland, California)		-		6,781		-		6,781
Millender Center	(Detroit, Michigan)		-		2,818		-		2,818
Fenimore Court	(Detroit, Michigan)		-		693		-		693
Other			465		-		465		-
Total impairment of investments in unconsolidated entities		$	465	$	11,903	$	465	$	11,903
Total impairment of unconsolidated entities		$	3,947	$	11,903	$	2,282	$	11,903
		Combined (100%)				Pro-Rata Share
		(GAAP)				(Non-GAAP)
		Six Months Ended July 31,
		2010		2009		2010		2009
				(in thousands)
Impairment of real estate:
Mixed-Use Land Development:
Mercy Campus at Central Station	(Chicago, Illinois)	$	3,482	$	-	$	1,817	$	-
Old Stone Crossing at Caldwell Creek	(Charlotte, North Carolina)		1,457		-		743		-
		$	4,939	$	-	$	2,560	$	-
Impairment of investments in unconsolidated entities:
Office Buildings:
818 Mission Street	(San Francisco, California)	$	4,018	$	-	$	4,018	$	-
Bulletin Building	(San Francisco, California)		3,543		-		3,543		-
Specialty Retail Centers:
Metreon	(San Francisco, California)		4,595		-		4,595		-
Southgate Mall	(Yuma, Arizona)		-		1,611		-		1,611
Apartment Communities:
Millender Center	(Detroit, Michigan)		-		7,070		-		7,070
Uptown Apartments	(Oakland, California)		-		6,781		-		6,781
Metropolitan Lofts	(Los Angeles, California)		-		1,039		-		1,039
Residences at University Park	(Cambridge, Massachusetts)		-		855		-		855
Fenimore Court	(Detroit, Michigan)		-		693		-		693
Classic Residence by Hyatt (Supported-living Apartments)	(Yonkers, New York)		-		3,152		-		3,152
Old Stone Crossing at Caldwell Creek (Mixed-Use Land Development)	(Charlotte, North Carolina)		-		122		-		122
Other			465		140		465		140
Total impairment of investments in unconsolidated entities		$	12,621	$	21,463	$	12,621	$	21,463
Total impairment of unconsolidated entities		$	17,560	$	21,463	$	15,181	$	21,463

43

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Investments in and Advances to Affiliates(continued)

(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 (loss) on disposition of unconsolidated entities:

		Combined (100%)					Pro-Rata Share
		(GAAP)					(Non-GAAP)
		Three Months Ended July 31,
		2010			2009		2010			2009
					(in thousands)
Gain (loss) on disposition of equity method investments:
Specialty Retail Centers:
Coachella Plaza	(Coachella, California)	$	104		$	-	$	104		$	-
Southgate Mall	(Yuma, Arizona)		64			-		64			-
Metreon	(San Francisco, California)		(1,046	)		-		(1,046	)		-
Loss on disposition of equity method investments, net		$	(878	)	$	-	$	(878	)	$	-

		Combined (100%)					Pro-Rata Share
		(GAAP)					(Non-GAAP)
		Six Months Ended July 31,
		2010			2009		2010			2009
					(in thousands)
Gain (loss) on disposition of equity method investments:
Specialty Retail Centers:
Coachella Plaza	(Coachella, California)	$	104		$	-	$	104		$	-
Southgate Mall	(Yuma, Arizona)		64			-		64			-
El Centro Mall	(El Centro, California)		48			-		48			-
Metreon	(San Francisco, California)		(1,046	)		-		(1,046	)		-
Loss on disposition of equity method investments, net		$	(830	)	$	-	$	(830	)	$	-

44

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)
	Six Months Ended
	July 31,			For the Years Ended January 31,
	2010			2010			2009
				(in thousands)
Rental Properties – Real Estate Activity
Real estate
Completed rental properties	$	9,662,474		$	9,547,444		$	9,353,924
Projects under construction and development		2,105,765			2,346,471			2,128,065
Land held for development or sale		131,497			122,368			116,675
Total real estate - FCRPC		11,899,736			12,016,283			11,598,664
Less accumulated depreciation		(1,873,183	)		(1,856,483	)		(1,698,362	)
Real estate, net - FCRPC	$	10,026,553		$	10,159,800		$	9,900,302
Plus real estate, net - Land Group and Corporate		199,729			206,778			186,673
Real estate, net - Forest City Enterprises	$	10,226,282		$	10,366,578		$	10,086,975
Real estate activity during the year
Completed rental properties
Capital expenditures	$	20,561		$	59,599		$	99,130
Transferred from projects under construction and development		487,579			469,479			729,370
Acquisitions		-			-			98,160
Other		(51,681	)		(146,187	)		116,679
Total additions		456,459			382,891			1,043,339
Dispositions		(80,298)	(1)		(189,371	) (3)		(147,005	) (4)
Dispositions of partial interests		(261,131)	(2)		-			-
Completed rental properties, net additions		115,030			193,520			896,334
Projects under construction and development
New development		298,570			732,880			1,023,035
Transferred to completed rental properties		(487,579	)		(469,479	)		(729,370	)
Cost of land sales		(7,916	)		(44,995	)		(34,391	)
Other		(43,781)			-			41,572	(7)
Projects under construction and development, net additions		(240,706	)		218,406			300,846
Land held for development or sale, net additions		9,129			5,693			26,524
Increase (decrease) in real estate, at cost	$	(116,547	)	$	417,619		$	1,223,704

45

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate Activity — (continued)

							Plus
				Less			Unconsolidated			Plus		Pro-Rata
	Full			Noncontrolling			Investments			Discontinued		Consolidation
Six Months Ended July 31,	Consolidation			Interest			at Pro-Rata			Operations		(Non-GAAP)
	(in thousands)
2010
Real estate
Completed rental properties	$	8,148,971		$	380,674		$	1,894,177		$	-	$	9,662,474
Projects under construction and development		2,609,123			620,643			117,285			-		2,105,765
Land held for development or sale		81,409			6,507			56,595			-		131,497
Total real estate - FCRPC		10,839,503			1,007,824			2,068,057			-		11,899,736
Less accumulated depreciation		(1,525,710	)		(59,272	)		(406,745	)		-		(1,873,183	)
Real estate, net - FCRPC	$	9,313,793		$	948,552		$	1,661,312		$	-	$	10,026,553
Plus real estate, net - Land Group and Corporate		148,385			5,904			57,248			-		199,729
Real estate, net - Forest City Enterprises	$	9,462,178		$	954,456		$	1,718,560		$	-	$	10,226,282
Real estate activity during the year
Completed rental properties
Capital expenditures	$	15,693		$	19		$	4,887		$	-	$	20,561
Transferred from projects under construction and development		393,510			118,928			212,997			-		487,579
Acquisitions		-			-			-			-		-
Other(8)		(150,610	)		(8,260	)		90,669			-		(51,681	)
Total additions		258,593			110,687			308,553			-		456,459
Dispositions(1)		(65,154	)		(3,215	)		(18,359	)		-		(80,298	)
Dispositions of partial interests(2)		(514,533	)		(17,868	)		235,534			-		(261,131	)
Completed rental properties, net additions		(321,094	)		89,604			525,728			-		115,030
Projects under construction and development
New development		388,030			104,228			14,768			-		298,570
Transferred to completed rental properties		(393,510	)		(118,928	)		(212,997	)		-		(487,579	)
Cost of land sales		(7,916	)		-			-			-		(7,916	)
Other(6)		(18,651	)		35,224			10,094			-		(43,781	)
Projects under construction and development, net additions		(32,047	)		20,524			(188,135	)		-		(240,706	)
Land held for development or sale, net additions		8,371			675			1,433			-		9,129
Increase (decrease) in real estate, at cost	$	(344,770	)	$	110,803		$	339,026		$	-	$	(116,547	)

46

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 construction and 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 construction and development		376,829			21,508			114,158			-			469,479
Acquisitions		-			-			-			-			-
Other(5)		(57,623	)		29,656			(58,908	)		-			(146,187	)
Total additions		362,993			52,963			72,861			-			382,891
Dispositions(3)		(93,875	)		-			(95,496	)		-			(189,371	)
Completed rental properties, net additions		269,118			52,963			(22,635	)		-			193,520
Projects under construction and 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 construction and 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 construction and 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 construction and development		591,992			10,886			148,264			-			729,370
Acquisitions		80,972			2,641			19,829			-			98,160
Other(5)		13,031			(94,407	)		9,241			-			116,679
Total additions		776,343			(78,465	)		188,531			-			1,043,339
Dispositions(4)		(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 construction and 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(7)		416,695			158,467			(216,656	)		-			41,572
Projects under construction and 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

47

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate Activity — (continued)

(1)	Reflects the disposition ofMetreon(a 279,000 square foot specialty retail center in San Francisco, California) and101 San Fernando, (a 323-unit apartment community in San Jose, California).
(2)	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 Landsdowne Street(122,000 square feet),88 Sidney Street(145,000 square feet),Jackson Building(202,000 square feet), andRichards Building(126,000 square feet).
(3)	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).
(4)	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).
(5)	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.
(6)	Primarily reflects the impact on projects under construction and 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 construction and development.
(7)	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).
(8)	Primarily reflects the impact on completed rental properties based on the adoption of the new GAAP accounting guidance discussed in (6) above. Upon adoption of the new guidance, ten Residential entities and one Commercial entity in the operating portfolio were deconsolidated. The remaining amounts are miscellaneous non-cash changes to completed rental properties.

48

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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 July 31, 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	$	249,803		$	17,247		$	40,333		$	-	$	272,889		$	243,811		$	11,368		$	27,461		$	-	$	259,904
Exclude straight-line rent adjustment		(5,648	)		-			-			-		(5,648	)		(5,213	)		-			-			-		(5,213	)
Adjusted revenues		244,155			17,247			40,333			-		267,241			238,598			11,368			27,461			-		254,691
Add interest and other income		8,265			(210	)		(485	)		-		7,990			1,217			29			422			-		1,610
Add gain on disposition of partial interests in other investment - Nets		-			-			-			-		-			-			-			-			-		-
Add equity in earnings (loss), including impairment of unconsolidated entities		1,962			-			(1,961	)		-		1			(868	)		(1	)		867			-		-
Exclude gain (loss) on disposition of unconsolidated entities		878			-			(878	)		-		-			-			-			-			-		-
Exclude impairment of unconsolidated real estate		-			-			-			-		-			1,611			-			(1,611	)		-		-
Exclude depreciation and amortization of unconsolidated entities		6,602			-			(6,602	)		-		-			4,333			-			(4,333	)		-		-
Adjusted total income		261,862			17,037			30,407			-		275,232			244,891			11,396			22,806			-		256,301
Operating expenses		127,678			10,477			20,156			-		137,357			111,684			5,200			15,293			-		121,777
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		418			-			-			-		418			1,642			-			-			-		1,642
Exclude straight-line rent adjustment		(1,418	)		-			-			-		(1,418	)		(1,610	)		-			-			-		(1,610	)
Exclude preference payment		(586	)		-			-			-		(586	)		(586	)		-			-			-		(586	)
Adjusted operating expenses		126,092			10,477			20,156			-		135,771			111,130			5,200			15,293			-		121,223
Net operating income		135,770			6,560			10,251			-		139,461			133,761			6,196			7,513			-		135,078
Interest expense		62,989			4,636			10,251			-		68,604			53,649			2,965			7,513			-		58,197
(Gain) loss on early extinguishment of debt		-			-			-			-		-			-			-			-			-		-
Noncontrolling interest in earnings before depreciation and amortization		1,924			1,924			-			-		-			3,231			3,231			-			-		-
Add: Pre-Tax EBDT from discontinued operations		-			-			-			-		-			-			-			-			-		-
Pre-Tax EBDT		70,857			-			-			-		70,857			76,881			-			-			-		76,881
Income tax expense (benefit)		(1,163	)		-			-			-		(1,163	)		2,594			-			-			-		2,594
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	72,020		$	-		$	-		$	-	$	72,020		$	74,287		$	-		$	-		$	-	$	74,287
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	72,020		$	-		$	-		$	-	$	72,020		$	74,287		$	-		$	-		$	-	$	74,287
Depreciation and amortization - Real Estate Groups		(51,298	)		-			-			-		(51,298	)		(53,788	)		-			-			-		(53,788	)
Amortization of mortgage procurement costs - Real Estate Groups		(2,943	)		-			-			-		(2,943	)		(3,114	)		-			-			-		(3,114	)
Deferred taxes - Real Estate Groups		(10,425	)		-			-			-		(10,425	)		(5,712	)		-			-			-		(5,712	)
Straight-line rent adjustment		4,230			-			-			-		4,230			3,603			-			-			-		3,603
Preference payment		(586	)		-			-			-		(586	)		(586	)		-			-			-		(586	)
Gain (loss) on disposition of partial interests in rental properties, net of tax		125,047			-			(536	)		-		124,511			-			-			-			-		-
Gain (loss) on disposition of unconsolidated entities, net of tax		(536	)		-			536			-		-			-			-			-			-		-
Impairment of consolidated and unconsolidated real estate, net of tax		(27,800	)		-			-			-		(27,800	)		-			-			(987	)		-		(987	)
Impairment of unconsolidated real estate, net of tax		-			-			-			-		-			(987	)		-			987			-		-
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.	$	107,709		$	-		$	-		$	-	$	107,709		$	13,703		$	-		$	-		$	-	$	13,703
Preferred dividends		-			-			-			-		-			-			-			-			-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	107,709		$	-		$	-		$	-	$	107,709		$	13,703		$	-		$	-		$	-	$	13,703

49

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 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	$	53,790		$	884	$	36,130		$	1,084		$	90,120		$	64,985		$	1,378		$	60,590		$	2,960		$	127,157
Exclude straight-line rent adjustment		(318	)		-		-			-			(318	)		(12	)		-			-			-			(12	)
Adjusted revenues		53,472			884		36,130			1,084			89,802			64,973			1,378			60,590			2,960			127,145
Add interest and other income		5,668			142		353			2			5,881			6,059			18			228			-			6,269
Add gain on disposition of partial interests in other investment - Nets		-			-		-			-			-			-			-			-			-			-
Add equity in earnings (loss), including impairment of unconsolidated entities		4,624			118		(4,173	)		-			333			(8,819	)		(85	)		8,834			-			100
Exclude gain (loss) on disposition of unconsolidated entities		-			-		-			-			-			-			-			-			-			-
Exclude impairment of unconsolidated real estate		-			-		-			-			-			10,292			-			(10,292	)		-			-
Exclude depreciation and amortization of unconsolidated entities		6,191			-		(6,191	)		-			-			7,126			-			(7,126	)		-			-
Adjusted total income		69,955			1,144		26,119			1,086			96,016			79,631			1,311			52,234			2,960			133,514
Operating expenses		33,321			215		17,326			835			51,267			40,012			46			45,253			854			86,073
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		289			-		-			-			289			960			-			-			-			960
Exclude straight-line rent adjustment		1			-		-			-			1			(1	)		-			-			-			(1	)
Exclude preference payment		-			-		-			-			-			-			-			-			-			-
Adjusted operating expenses		33,611			215		17,326			835			51,557			40,971			46			45,253			854			87,032
Net operating income		36,344			929		8,793			251			44,459			38,660			1,265			6,981			2,106			46,482
Interest expense		9,167			178		8,793			11			17,793			6,099			328			6,981			809			13,561
(Gain) loss on early extinguishment of debt		-			-		-			-			-			403			-			-			-			403
Noncontrolling interest in earnings before depreciation and amortization		751			751		-			-			-			937			937			-			-			-
Add: Pre-Tax EBDT from discontinued operations		240			-		-			(240	)		-			1,297			-			-			(1,297	)		-
Pre-Tax EBDT		26,666			-		-			-			26,666			32,518			-			-			-			32,518
Income tax expense (benefit)		1,500			-		-			-			1,500			(5,275	)		-			-			-			(5,275	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	25,166		$	-	$	-		$	-		$	25,166		$	37,793		$	-		$	-		$	-		$	37,793
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	25,166		$	-	$	-		$	-		$	25,166		$	37,793		$	-		$	-		$	-		$	37,793
Depreciation and amortization - Real Estate Groups		(18,162	)		-		-			(254	)		(18,416	)		(20,203	)		-			-			(941	)		(21,144	)
Amortization of mortgage procurement costs - Real Estate Groups		(601	)		-		-			(5	)		(606	)		(474	)		-			-			(27	)		(501	)
Deferred taxes - Real Estate Groups		26			-		-			(291	)		(265	)		(10,004	)		-			-			(146	)		(10,150	)
Straight-line rent adjustment		319			-		-			-			319			11			-			-			-			11
Preference payment		-			-		-			-			-			-			-			-			-			-
Gain (loss) on disposition of partial interests in rental properties, net of tax		121			-		-			1,099			1,220			-			-			-			-			-
Gain (loss) on disposition of unconsolidated entities, net of tax		-			-		-			-			-			-			-			-			-			-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-		-			-			-			(209	)		-			(6,299	)		-			(6,508	)
Impairment of unconsolidated real estate, net of tax		-			-		-			-			-			(6,299	)		-			6,299			-			-
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		(254	)		-		-			254			-			(941	)		-			-			941			-
Amortization of mortgage procurement costs - Real Estate Groups		(5	)		-		-			5			-			(27	)		-			-			27			-
Deferred taxes - Real Estate Groups		(291	)		-		-			291			-			(146	)		-			-			146			-
Straight-line rent adjustment		-			-		-			-			-			-			-			-			-			-
Gain on disposition of rental properties		1,099			-		-			(1,099	)		-			-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	7,418		$	-	$	-		$	-		$	7,418		$	(499	)	$	-		$	-		$	-		$	(499	)
Preferred dividends		-			-		-			-			-			-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	7,418		$	-	$	-		$	-		$	7,418		$	(499	)	$	-		$	-		$	-		$	(499	)

50

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 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	$	5,618		$	401	$	3,699		$	-	$	8,916		$	4,901		$	318	$	1,190		$	-	$	5,773
Exclude straight-line rent adjustment		7			-		-			-		7			-			-		-			-		-
Adjusted revenues		5,625			401		3,699			-		8,923			4,901			318		1,190			-		5,773
Add interest and other income		2,231			201		76			-		2,106			3,543			156		10			-		3,397
Add gain on disposition of partial interests in other investment - Nets		-			-		-			-		-			-			-		-			-		-
Add equity in earnings (loss), including impairment of unconsolidated entities		(421	)		-		1,022			-		601			556			-		(275	)		-		281
Exclude gain (loss) on disposition of unconsolidated entities		-			-		-			-		-			-			-		-			-		-
Exclude impairment of unconsolidated real estate		2,282			-		(2,282	)		-		-			-			-		-			-		-
Exclude depreciation and amortization of unconsolidated entities		72			-		(72	)		-		-			74			-		(74	)		-		-
Adjusted total income		9,789			602		2,443			-		11,630			9,074			474		851			-		9,451
Operating expenses		7,423			414		2,325			-		9,334			6,873			370		803			-		7,306
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		39			-		-	��		-		39			136			-		-			-		136
Exclude straight-line rent adjustment		-			-		-			-		-			-			-		-			-		-
Exclude preference payment		-			-		-			-		-			-			-		-			-		-
Adjusted operating expenses		7,462			414		2,325			-		9,373			7,009			370		803			-		7,442
Net operating income		2,327			188		118			-		2,257			2,065			104		48			-		2,009
Interest expense		25			71		118			-		72			557			68		48			-		537
(Gain) loss on early extinguishment of debt		-			-		-			-		-			(9,466	)		-		-			-		(9,466	)
Noncontrolling interest in earnings before depreciation and amortization		117			117		-			-		-			36			36		-			-		-
Add: Pre-Tax EBDT from discontinued operations		-			-		-			-		-			-			-		-			-		-
Pre-Tax EBDT		2,185			-		-			-		2,185			10,938			-		-			-		10,938
Income tax expense (benefit)		(673	)		-		-			-		(673	)		160			-		-			-		160
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	2,858		$	-	$	-		$	-	$	2,858		$	10,778		$	-	$	-		$	-	$	10,778
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	2,858		$	-	$	-		$	-	$	2,858		$	10,778		$	-	$	-		$	-	$	10,778
Depreciation and amortization - Real Estate Groups		(75	)		-		-			-		(75	)		(92	)		-		-			-		(92	)
Amortization of mortgage procurement costs - Real Estate Groups		(84	)		-		-			-		(84	)		(208	)		-		-			-		(208	)
Deferred taxes - Real Estate Groups		(1,101	)		-		-			-		(1,101	)		(4,074	)		-		-			-		(4,074	)
Straight-line rent adjustment		(7	)		-		-			-		(7	)		-			-		-			-		-
Preference payment		-			-		-			-		-			-			-		-			-		-
Gain (loss) on disposition of partial interests in rental properties, net of tax		-			-		-			-		-			-			-		-			-		-
Gain (loss) on disposition of unconsolidated entities, net of tax		-			-		-			-		-			-			-		-			-		-
Impairment of consolidated and unconsolidated real estate, net of tax		(672	)		-		(1,398	)		-		(2,070	)		(680	)		-		-			-		(680	)
Impairment of unconsolidated real estate, net of tax		(1,398	)		-		1,398			-		-			-			-		-			-		-
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.	$	(479	)	$	-	$	-		$	-	$	(479	)	$	5,724		$	-	$	-		$	-	$	5,724
Preferred dividends		-			-		-			-		-			-			-		-			-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(479	)	$	-	$	-		$	-	$	(479	)	$	5,724		$	-	$	-		$	-	$	5,724

51

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 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	$	-		$	-		$	-	$	-	$	-			$	-		$	-	$	-	$	-	$	-
Exclude straight-line rent adjustment		-			-			-		-		-				-			-		-		-		-
Adjusted revenues		-			-			-		-		-				-			-		-		-		-
Add interest and other income		-			-			-		-		-				-			-		8,248		-		8,248
Add gain on disposition of partial interests in other investment - Nets		55,112			23,675			-		-		31,437				-			-		-		-		-
Add equity in earnings (loss), including impairment of unconsolidated entities		(7,161	)		(20	)		-		-		(7,141	)			(8,307	)		-		8,307		-		-
Exclude gain (loss) on disposition of unconsolidated entities		-			-			-		-		-				-			-		-		-		-
Exclude impairment of unconsolidated real estate		-			-			-		-		-				-			-		-		-		-
Exclude depreciation and amortization of unconsolidated entities		-			-			-		-		-				-			-		-		-		-
Adjusted total income		47,951			23,655			-		-		24,296				(8,307	)		-		16,555		-		8,248
Operating expenses		-			-			-		-		-				-			-		11,643		-		11,643
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		-			-			-		-		-				-			-		2,960		-		2,960
Exclude straight-line rent adjustment		-			-			-		-		-				-			-		-		-		-
Exclude preference payment		-			-			-		-		-				-			-		-		-		-
Adjusted operating expenses		-			-			-		-		-				-			-		14,603		-		14,603
Net operating income		47,951			23,655			-		-		24,296				(8,307	)		-		1,952		-		(6,355	)
Interest expense		-			-			-		-		-				-			-		1,952		-		1,952
(Gain) loss on early extinguishment of debt		-			-			-		-		-				-			-		-		-		-
Noncontrolling interest in earnings before depreciation and amortization		23,655			23,655			-		-		-				-			-		-		-		-
Add: Pre-Tax EBDT from discontinued operations		-			-			-		-		-				-			-		-		-		-
Pre-Tax EBDT		24,296			-			-		-		24,296				(8,307	)		-		-		-		(8,307	)
Income tax expense (benefit)		9,551			-			-		-		9,551				(2,745	)		-		-		-		(2,745	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	14,745		$	-		$	-	$	-	$	14,745			$	(5,562	)	$	-	$	-	$	-	$	(5,562	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	14,745		$	-		$	-	$	-	$	14,745			$	(5,562	)	$	-	$	-	$	-	$	(5,562	)
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 partial interests in rental properties, net of tax		-			-			-		-		-				-			-		-		-		-
Gain (loss) on disposition of unconsolidated entities, net of tax		-			-			-		-		-				-			-		-		-		-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-			-		-		-				-			-		-		-		-
Impairment of unconsolidated real estate, 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.	$	14,745		$	-		$	-	$	-	$	14,745			$	(5,562	)	$	-	$	-	$	-	$	(5,562	)
Preferred dividends		-			-			-		-		-				-			-		-		-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	14,745		$	-		$	-	$	-	$	14,745			$	(5,562	)	$	-	$	-	$	-	$	(5,562	)

52

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 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		68			-		-		-		68			775			-		-		-		775
Add gain on disposition of partial interests in other investment - Nets		-			-		-		-		-			-			-		-		-		-
Add equity in earnings (loss), including impairment of unconsolidated entities		-			-		-		-		-			-			-		-		-		-
Exclude gain (loss) on disposition of unconsolidated entities		-			-		-		-		-			-			-		-		-		-
Exclude impairment of unconsolidated real estate		-			-		-		-		-			-			-		-		-		-
Exclude depreciation and amortization of unconsolidated entities		-			-		-		-		-			-			-		-		-		-
Adjusted total income		68			-		-		-		68			775			-		-		-		775
Operating expenses		9,430			-		-		-		9,430			6,080			-		-		-		6,080
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		439			-		-		-		439			770			-		-		-		770
Exclude straight-line rent adjustment		-			-		-		-		-			-			-		-		-		-
Exclude preference payment		-			-		-		-		-			-			-		-		-		-
Adjusted operating expenses		9,869			-		-		-		9,869			6,850			-		-		-		6,850
Net operating income		(9,801	)		-		-		-		(9,801	)		(6,075	)		-		-		-		(6,075	)
Interest expense		15,679			-		-		-		15,679			19,102			-		-		-		19,102
(Gain) loss on early extinguishment of debt		(1,896	)		-		-		-		(1,896	)		-			-		-		-		-
Noncontrolling interest in earnings before depreciation and amortization		-			-		-		-		-			-			-		-		-		-
Add: Pre-Tax EBDT from discontinued operations		-			-		-		-		-			-			-		-		-		-
Pre-Tax EBDT		(23,584	)		-		-		-		(23,584	)		(25,177	)		-		-		-		(25,177	)
Income tax expense (benefit)		(14,355	)		-		-		-		(14,355	)		(3,364	)		-		-		-		(3,364	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(9,229	)	$	-	$	-	$	-	$	(9,229	)	$	(21,813	)	$	-	$	-	$	-	$	(21,813	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(9,229	)	$	-	$	-	$	-	$	(9,229	)	$	(21,813	)	$	-	$	-	$	-	$	(21,813	)
Depreciation and amortization - Real Estate Groups		-			-		-		-		-			-			-		-		-		-
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-		-		-			-			-		-		-		-
Deferred taxes - Real Estate Groups		2,682			-		-		-		2,682			6,658			-		-		-		6,658
Straight-line rent adjustment		-			-		-		-		-			-			-		-		-		-
Preference payment		-			-		-		-		-			-			-		-		-		-
Gain (loss) on disposition of partial interests in rental properties, net of tax		-			-		-		-		-			-			-		-		-		-
Gain (loss) on disposition of unconsolidated entities, net of tax		-			-		-		-		-			-			-		-		-		-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-		-		-		-			-			-		-		-		-
Impairment of unconsolidated real estate, 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.	$	(6,547	)	$	-	$	-	$	-	$	(6,547	)	$	(15,155	)	$	-	$	-	$	-	$	(15,155	)
Preferred dividends		(4,107	)		-		-		-		(4,107	)		-			-		-		-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(10,654	)	$	-	$	-	$	-	$	(10,654	)	$	(15,155	)	$	-	$	-	$	-	$	(15,155	)

53

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 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	$	309,211		$	18,532	$	80,162		$	1,084		$	371,925		$	313,697		$	13,064		$	89,241		$	2,960		$	392,834
Exclude straight-line rent adjustment		(5,959	)		-		-			-			(5,959	)		(5,225	)		-			-			-			(5,225	)
Adjusted revenues		303,252			18,532		80,162			1,084			365,966			308,472			13,064			89,241			2,960			387,609
Add interest and other income		16,232			133		(56	)		2			16,045			11,594			203			8,908			-			20,299
Add gain on disposition of partial interests in other investment - Nets		55,112			23,675		-			-			31,437			-			-			-			-			-
Add equity in earnings (loss), including impairment of unconsolidated entities		(996	)		98		(5,112	)		-			(6,206	)		(17,438	)		(86	)		17,733			-			381
Exclude gain (loss) on disposition of unconsolidated entities		878			-		(878	)		-			-			-			-			-			-			-
Exclude impairment of unconsolidated real estate		2,282			-		(2,282	)		-			-			11,903			-			(11,903	)		-			-
Exclude depreciation and amortization of unconsolidated entities		12,865			-		(12,865	)		-			-			11,533			-			(11,533	)		-			-
Adjusted total income		389,625			42,438		58,969			1,086			407,242			326,064			13,181			92,446			2,960			408,289
Operating expenses		177,852			11,106		39,807			835			207,388			164,649			5,616			72,992			854			232,879
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		1,185			-		-			-			1,185			3,508			-			2,960			-			6,468
Exclude straight-line rent adjustment		(1,417	)		-		-			-			(1,417	)		(1,611	)		-			-			-			(1,611	)
Exclude preference payment		(586	)		-		-			-			(586	)		(586	)		-			-			-			(586	)
Adjusted operating expenses		177,034			11,106		39,807			835			206,570			165,960			5,616			75,952			854			237,150
Net operating income		212,591			31,332		19,162			251			200,672			160,104			7,565			16,494			2,106			171,139
Interest expense		87,860			4,885		19,162			11			102,148			79,407			3,361			16,494			809			93,349
(Gain) loss on early extinguishment of debt		(1,896	)		-		-			-			(1,896	)		(9,063	)		-			-			-			(9,063	)
Noncontrolling interest in earnings before depreciation and amortization		26,447			26,447		-			-			-			4,204			4,204			-			-			-
Add: Pre-Tax EBDT from discontinued operations		240			-		-			(240	)		-			1,297			-			-			(1,297	)		-
Pre-Tax EBDT		100,420			-		-			-			100,420			86,853			-			-			-			86,853
Income tax expense (benefit)		(5,140	)		-		-			-			(5,140	)		(8,630	)		-			-			-			(8,630	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	105,560		$	-	$	-		$	-		$	105,560		$	95,483		$	-		$	-		$	-		$	95,483
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	105,560		$	-	$	-		$	-		$	105,560		$	95,483		$	-		$	-		$	-		$	95,483
Depreciation and amortization - Real Estate Groups		(69,535	)		-		-			(254	)		(69,789	)		(74,083	)		-			-			(941	)		(75,024	)
Amortization of mortgage procurement costs - Real Estate Groups		(3,628	)		-		-			(5	)		(3,633	)		(3,796	)		-			-			(27	)		(3,823	)
Deferred taxes - Real Estate Groups		(8,818	)		-		-			(291	)		(9,109	)		(13,132	)		-			-			(146	)		(13,278	)
Straight-line rent adjustment		4,542			-		-			-			4,542			3,614			-			-			-			3,614
Preference payment		(586	)		-		-			-			(586	)		(586	)		-			-			-			(586	)
Gain (loss) on disposition of partial interests in rental properties, net of tax		125,168			-		(536	)		1,099			125,731			-			-			-			-			-
Gain (loss) on disposition of unconsolidated entities, net of tax		(536	)		-		536			-			-			-			-			-			-			-
Impairment of consolidated and unconsolidated real estate, net of tax		(28,472	)		-		(1,398	)		-			(29,870	)		(889	)		-			(7,286	)		-			(8,175	)
Impairment of unconsolidated real estate, net of tax		(1,398	)		-		1,398			-			-			(7,286	)		-			7,286			-			-
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		(254	)		-		-			254			-			(941	)		-			-			941			-
Amortization of mortgage procurement costs - Real Estate Groups		(5	)		-		-			5			-			(27	)		-			-			27			-
Deferred taxes - Real Estate Groups		(291	)		-		-			291			-			(146	)		-			-			146			-
Straight-line rent adjustment		-			-		-			-			-			-			-			-			-			-
Gain on disposition of rental properties		1,099			-		-			(1,099	)		-			-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	122,846		$	-	$	-		$	-		$	122,846		$	(1,789	)	$	-		$	-		$	-		$	(1,789	)
Preferred dividends		(4,107	)		-		-			-			(4,107	)		-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	118,739		$	-	$	-		$	-		$	118,739		$	(1,789	)	$	-		$	-		$	-		$	(1,789	)

54

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 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	$	471,775		$	29,097	$	75,837		$	-	$	518,515		$	479,438		$	22,348		$	55,046		$	813		$	512,949
Exclude straight-line rent adjustment		(9,473	)		-		-			-		(9,473	)		(9,608	)		-			-			(12	)		(9,620	)
Adjusted revenues		462,302			29,097		75,837			-		509,042			469,830			22,348			55,046			801			503,329
Add interest and other income		10,211			415		109			-		9,905			1,802			(60	)		644			-			2,506
Add gain on disposition of partial interests in other investment - Nets		-			-		-			-		-			-			-			-			-			-
Add equity in earnings (loss), including impairment of unconsolidated entities		(6,739	)		-		6,740			-		1			(32	)		-			32			-			-
Exclude gain (loss) on disposition of unconsolidated entities		830			-		(830	)		-		-			-			-			-			-			-
Exclude impairment of unconsolidated real estate		12,156			-		(12,156	)		-		-			1,611			-			(1,611	)		-			-
Exclude depreciation and amortization of unconsolidated entities		12,525			-		(12,525	)		-		-			8,485			-			(8,485	)		-			-
Adjusted total income		491,285			29,512		57,175			-		518,948			481,696			22,288			45,626			801			505,835
Operating expenses		234,556			15,797		35,666			-		254,425			226,590			10,100			30,387			320			247,197
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		939			-		-			-		939			3,285			-			-			-			3,285
Exclude straight-line rent adjustment		(2,661	)		-		-			-		(2,661	)		(3,246	)		-			-			-			(3,246	)
Exclude preference payment		(1,171	)		-		-			-		(1,171	)		(1,171	)		-			-			-			(1,171	)
Adjusted operating expenses		231,663			15,797		35,666			-		251,532			225,458			10,100			30,387			320			246,065
Net operating income		259,622			13,715		21,509			-		267,416			256,238			12,188			15,239			481			259,770
Interest expense		122,822			9,421		21,509			-		134,910			113,146			5,972			15,239			322			122,735
(Gain) loss on early extinguishment of debt		-			-		-			-		-			-			-			-			-			-
Noncontrolling interest in earnings before depreciation and amortization		4,294			4,294		-			-		-			6,216			6,216			-			-			-
Add: Pre-Tax EBDT from discontinued operations		-			-		-			-		-			159			-			-			(159	)		-
Pre-Tax EBDT		132,506			-		-			-		132,506			137,035			-			-			-			137,035
Income tax expense (benefit)		(595	)		-		-			-		(595	)		4,375			-			-			-			4,375
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	133,101		$	-	$	-		$	-	$	133,101		$	132,660		$	-		$	-		$	-		$	132,660
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	133,101		$	-	$	-		$	-	$	133,101		$	132,660		$	-		$	-		$	-		$	132,660
Depreciation and amortization - Real Estate Groups		(103,468	)		-		-			-		(103,468	)		(105,688	)		-			-			(107	)		(105,795	)
Amortization of mortgage procurement costs - Real Estate Groups		(5,375	)		-		-			-		(5,375	)		(6,108	)		-			-			(5	)		(6,113	)
Deferred taxes - Real Estate Groups		(13,173	)		-		-			-		(13,173	)		(2,393	)		-			-			(31	)		(2,424	)
Straight-line rent adjustment		6,812			-		-			-		6,812			6,362			-			-			12			6,374
Preference payment		(1,171	)		-		-			-		(1,171	)		(1,171	)		-			-			-			(1,171	)
Gain (loss) on disposition of partial interests in rental properties, net of tax		107,615			-		(507	)		-		107,108			-			-			-			2,784			2,784
Gain (loss) on disposition of unconsolidated entities, net of tax		(507	)		-		507			-		-			-			-			-			-			-
Impairment of consolidated and unconsolidated real estate, net of tax		(27,800	)		-		(7,441	)		-		(35,241	)		-			-			(987	)		-			(987	)
Impairment of unconsolidated real estate, net of tax		(7,441	)		-		7,441			-		-			(987	)		-			987			-			-
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.	$	88,593		$	-	$	-		$	-	$	88,593		$	25,328		$	-		$	-		$	-		$	25,328
Preferred dividends		-			-		-			-		-			-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	88,593		$	-	$	-		$	-	$	88,593		$	25,328		$	-		$	-		$	-		$	25,328

55

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 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	$	105,182		$	1,778		$	71,664		$	2,506		$	177,574		$	136,906		$	2,576		$	101,570		$	5,895		$	241,795
Exclude straight-line rent adjustment		(770	)		-			-			-			(770	)		(16	)		-			-			-			(16	)
Adjusted revenues		104,412			1,778			71,664			2,506			176,804			136,890			2,576			101,570			5,895			241,779
Add interest and other income		8,237			242			530	��		4			8,529			10,130			51			396			-			10,475
Add gain on disposition of partial interests in other investment - Nets		-			-			-			-			-			-			-			-			-			-
Add equity in earnings (loss), including impairment of unconsolidated entities		6,662			(103	)		(6,348	)		-			417			(16,670	)		(68	)		16,787			-			185
Exclude gain (loss) on disposition of unconsolidated entities		-			-			-			-			-			-			-			-			-			-
Exclude impairment of unconsolidated real estate		-			-			-			-			-			19,590			-			(19,590	)		-			-
Exclude depreciation and amortization of unconsolidated entities		12,046			-			(12,046	)		-			-			13,824			-			(13,824	)		-			-
Adjusted total income		131,357			1,917			53,800			2,510			185,750			163,764			2,559			85,339			5,895			252,439
Operating expenses		65,152			754			37,189			1,610			103,197			97,358			336			70,742			1,636			169,400
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		850			-			-			-			850			1,917			-			-			-			1,917
Exclude straight-line rent adjustment		2			-			-			-			2			(1	)		-			-			-			(1	)
Exclude preference payment		-			-			-			-			-			-			-			-			-			-
Adjusted operating expenses		66,004			754			37,189			1,610			104,049			99,274			336			70,742			1,636			171,316
Net operating income		65,353			1,163			16,611			900			81,701			64,490			2,223			14,597			4,259			81,123
Interest expense		14,023			454			16,611			118			30,298			15,695			694			14,421			1,600			31,022
(Gain) loss on early extinguishment of debt		-			-			-			-			-			403			-			176			-			579
Noncontrolling interest in earnings before depreciation and amortization		709			709			-			-			-			1,529			1,529			-			-			-
Add: Pre-Tax EBDT from discontinued operations		782			-			-			(782	)		-			2,659			-			-			(2,659	)		-
Pre-Tax EBDT		51,403			-			-			-			51,403			49,522			-			-			-			49,522
Income tax expense (benefit)		(1,376	)		-			-			-			(1,376	)		(5,803	)		-			-			-			(5,803	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	52,779		$	-		$	-		$	-		$	52,779		$	55,325		$	-		$	-		$	-		$	55,325
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	52,779		$	-		$	-		$	-		$	52,779		$	55,325		$	-		$	-		$	-		$	55,325
Depreciation and amortization - Real Estate Groups		(35,485	)		-			-			(636	)		(36,121	)		(39,299	)		-			-			(1,870	)		(41,169	)
Amortization of mortgage procurement costs - Real Estate Groups		(1,143	)		-			-			(13	)		(1,156	)		(1,333	)		-			-			(54	)		(1,387	)
Deferred taxes - Real Estate Groups		(6,613	)		-			-			(400	)		(7,013	)		(7,799	)		-			-			(267	)		(8,066	)
Straight-line rent adjustment		772			-			-			-			772			15			-			-			-			15
Preference payment		-			-			-			-			-			-			-			-			-			-
Gain (loss) on disposition of partial interests in rental properties, net of tax		17,731			-			-			1,099			18,830			-			-			-			-			-
Gain (loss) on disposition of unconsolidated entities, net of tax		-			-			-			-			-			-			-			-			-			-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-			-			-			-			(897	)		-			(11,992	)		-			(12,889	)
Impairment of unconsolidated real estate, net of tax		-			-			-			-			-			(11,992	)		-			11,992			-			-
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		(636	)		-			-			636			-			(1,870	)		-			-			1,870			-
Amortization of mortgage procurement costs - Real Estate Groups		(13	)		-			-			13			-			(54	)		-			-			54			-
Deferred taxes - Real Estate Groups		(400	)		-			-			400			-			(267	)		-			-			267			-
Straight-line rent adjustment		-			-			-			-			-			-			-			-			-			-
Gain on disposition of rental properties		1,099			-			-			(1,099	)		-			-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	28,091		$	-		$	-		$	-		$	28,091		$	(8,171	)	$	-		$	-		$	-		$	(8,171	)
Preferred dividends		-			-			-			-			-			-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	28,091		$	-		$	-		$	-		$	28,091		$	(8,171	)	$	-		$	-		$	-		$	(8,171	)

56

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 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	$	12,476		$	749	$	6,134		$	-	$	17,861			$	7,371		$	483		$	7,120		$	-	$	14,008
Exclude straight-line rent adjustment		4			-		-			-		4				-			-			-			-		-
Adjusted revenues		12,480			749		6,134			-		17,865				7,371			483			7,120			-		14,008
Add interest and other income		4,425			375		84			-		4,134				5,697			352			24			-		5,369
Add gain on disposition of partial interests in other investment - Nets		-			-		-			-		-				-			-			-			-		-
Add equity in earnings (loss), including impairment of unconsolidated entities		(452	)		-		1,242			-		790				2,386			-			(2,122	)		-		264
Exclude gain (loss) on disposition of unconsolidated entities		-			-		-			-		-				-			-			-			-		-
Exclude impairment of unconsolidated real estate		3,025			-		(3,025	)		-		-				262			-			(262	)		-		-
Exclude depreciation and amortization of unconsolidated entities		146			-		(146	)		-		-				152			-			(152	)		-		-
Adjusted total income		19,624			1,124		4,289			-		22,789				15,868			835			4,608			-		19,641
Operating expenses		17,871			918		4,437			-		21,390				12,825			785			4,443			-		16,483
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		79			-		-			-		79				271			-			-			-		271
Exclude straight-line rent adjustment		-			-		-			-		-				-			-			-			-		-
Exclude preference payment		-			-		-			-		-				-			-			-			-		-
Adjusted operating expenses		17,950			918		4,437			-		21,469				13,096			785			4,443			-		16,754
Net operating income		1,674			206		(148	)		-		1,320				2,772			50			165			-		2,887
Interest expense		1,333			143		(148	)		-		1,042				806			121			165			-		850
(Gain) loss on early extinguishment of debt		-			-		-			-		-				(9,466	)		-			-			-		(9,466	)
Noncontrolling interest in earnings before depreciation and amortization		63			63		-			-		-				(71	)		(71	)		-			-		-
Add: Pre-Tax EBDT from discontinued operations		-			-		-			-		-				-			-			-			-		-
Pre-Tax EBDT		278			-		-			-		278				11,503			-			-			-		11,503
Income tax expense (benefit)		(288	)		-		-			-		(288	)			664			-			-			-		664
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	566		$	-	$	-		$	-	$	566			$	10,839		$	-		$	-		$	-	$	10,839
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	566		$	-	$	-		$	-	$	566			$	10,839		$	-		$	-		$	-	$	10,839
Depreciation and amortization - Real Estate Groups		(154	)		-		-			-		(154	)			(188	)		-			-			-		(188	)
Amortization of mortgage procurement costs - Real Estate Groups		(164	)		-		-			-		(164	)			(345	)		-			-			-		(345	)
Deferred taxes - Real Estate Groups		(220	)		-		-			-		(220	)			(3,486	)		-			-			-		(3,486	)
Straight-line rent adjustment		(4	)		-		-			-		(4	)			-			-			-			-		-
Preference payment		-			-		-			-		-				-			-			-			-		-
Gain (loss) on disposition of partial interests in rental properties, net of tax		-			-		-			-		-				-			-			-			-		-
Gain (loss) on disposition of unconsolidated entities, net of tax		-			-		-			-		-				-			-			-			-		-
Impairment of consolidated and unconsolidated real estate, net of tax		(672	)		-		(1,853	)		-		(2,525	)			(680	)		-			(160	)		-		(840	)
Impairment of unconsolidated real estate, net of tax		(1,853	)		-		1,853			-		-				(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.	$	(2,501	)	$	-	$	-		$	-	$	(2,501	)		$	5,980		$	-		$	-		$	-	$	5,980
Preferred dividends		-			-		-			-		-				-			-			-			-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(2,501	)	$	-	$	-		$	-	$	(2,501	)		$	5,980		$	-		$	-		$	-	$	5,980

57

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 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	$	-		$	-		$	-	$	-	$	-			$	-		$	-	$	-	$	-	$	-
Exclude straight-line rent adjustment		-			-			-		-		-				-			-		-		-		-
Adjusted revenues		-			-			-		-		-				-			-		-		-		-
Add interest and other income		-			-			14,037		-		14,037				-			-		24,697		-		24,697
Add gain on disposition of partial interests in other investment - Nets		55,112			23,675			-		-		31,437				-			-		-		-		-
Add equity in earnings (loss), including impairment of unconsolidated entities		(17,591	)		(6,243	)		4,207		-		(7,141	)			(18,988	)		-		18,988		-		-
Exclude gain (loss) on disposition of unconsolidated entities		-			-			-		-		-				-			-		-		-		-
Exclude impairment of unconsolidated real estate		-			-			-		-		-				-			-		-		-		-
Exclude depreciation and amortization of unconsolidated entities		-			-			-		-		-				-			-		-		-		-
Adjusted total income		37,521			17,432			18,244		-		38,333				(18,988	)		-		43,685		-		24,697
Operating expenses		-			-			16,151		-		16,151				-			-		30,498		-		30,498
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		-			-			947		-		947				-			-		10,238		-		10,238
Exclude straight-line rent adjustment		-			-			-		-		-				-			-		-		-		-
Exclude preference payment		-			-			-		-		-				-			-		-		-		-
Adjusted operating expenses		-			-			17,098		-		17,098				-			-		40,736		-		40,736
Net operating income		37,521			17,432			1,146		-		21,235				(18,988	)		-		2,949		-		(16,039	)
Interest expense		-			-			1,146		-		1,146				-			-		2,949		-		2,949
(Gain) loss on early extinguishment of debt		-			-			-		-		-				-			-		-		-		-
Noncontrolling interest in earnings before depreciation and amortization		17,432			17,432			-		-		-				-			-		-		-		-
Add: Pre-Tax EBDT from discontinued operations		-			-			-		-		-				-			-		-		-		-
Pre-Tax EBDT		20,089			-			-		-		20,089				(18,988	)		-		-		-		(18,988	)
Income tax expense (benefit)		8,717			-			-		-		8,717				(6,434	)		-		-		-		(6,434	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	11,372		$	-		$	-	$	-	$	11,372			$	(12,554	)	$	-	$	-	$	-	$	(12,554	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	11,372		$	-		$	-	$	-	$	11,372			$	(12,554	)	$	-	$	-	$	-	$	(12,554	)
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 partial interests in rental properties, net of tax		-			-			-		-		-				-			-		-		-		-
Gain (loss) on disposition of unconsolidated entities, net of tax		-			-			-		-		-				-			-		-		-		-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-			-		-		-				-			-		-		-		-
Impairment of unconsolidated real estate, 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.	$	11,372		$	-		$	-	$	-	$	11,372			$	(12,554	)	$	-	$	-	$	-	$	(12,554	)
Preferred dividends		-			-			-		-		-				-			-		-		-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	11,372		$	-		$	-	$	-	$	11,372			$	(12,554	)	$	-	$	-	$	-	$	(12,554	)

58

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 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		174			-		-		-		174			773			-		-		-		773
Add gain on disposition of partial interests in other investment - Nets		-			-		-		-		-			-			-		-		-		-
Add equity in earnings (loss), including impairment of unconsolidated entities		-			-		-		-		-			-			-		-		-		-
Exclude gain (loss) on disposition of unconsolidated entities		-			-		-		-		-			-			-		-		-		-
Exclude impairment of unconsolidated real estate		-			-		-		-		-			-			-		-		-		-
Exclude depreciation and amortization of unconsolidated entities		-			-		-		-		-			-			-		-		-		-
Adjusted total income		174			-		-		-		174			773			-		-		-		773
Operating expenses		20,436			-		-		-		20,436			21,901			-		-		-		21,901
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		885			-		-		-		885			1,487			-		-		-		1,487
Exclude straight-line rent adjustment		-			-		-		-		-			-			-		-		-		-
Exclude preference payment		-			-		-		-		-			-			-		-		-		-
Adjusted operating expenses		21,321			-		-		-		21,321			23,388			-		-		-		23,388
Net operating income		(21,147	)		-		-		-		(21,147	)		(22,615	)		-		-		-		(22,615	)
Interest expense		32,543			-		-		-		32,543			40,671			-		-		-		40,671
(Gain) loss on early extinguishment of debt		(8,193	)		-		-		-		(8,193	)		-			-		-		-		-
Noncontrolling interest in earnings before depreciation and amortization		-			-		-		-		-			-			-		-		-		-
Add: Pre-Tax EBDT from discontinued operations		-			-		-		-		-			-			-		-		-		-
Pre-Tax EBDT		(45,497	)		-		-		-		(45,497	)		(63,286	)		-		-		-		(63,286	)
Income tax expense (benefit)		(23,706	)		-		-		-		(23,706	)		(14,103	)		-		-		-		(14,103	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(21,791	)	$	-	$	-	$	-	$	(21,791	)	$	(49,183	)	$	-	$	-	$	-	$	(49,183	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(21,791	)	$	-	$	-	$	-	$	(21,791	)	$	(49,183	)	$	-	$	-	$	-	$	(49,183	)
Depreciation and amortization - Real Estate Groups		-			-		-		-		-			-			-		-		-		-
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-		-		-			-			-		-		-		-
Deferred taxes - Real Estate Groups		3,520			-		-		-		3,520			6,132			-		-		-		6,132
Straight-line rent adjustment		-			-		-		-		-			-			-		-		-		-
Preference payment		-			-		-		-		-			-			-		-		-		-
Gain (loss) on disposition of partial interests in rental properties, net of tax		-			-		-		-		-			-			-		-		-		-
Gain (loss) on disposition of unconsolidated entities, net of tax		-			-		-		-		-			-			-		-		-		-
Impairment of consolidated and unconsolidated real estate, net of tax		-			-		-		-		-			-			-		-		-		-
Impairment of unconsolidated real estate, 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.	$	(18,271	)	$	-	$	-	$	-	$	(18,271	)	$	(43,051	)	$	-	$	-	$	-	$	(43,051	)
Preferred dividends		(4,107	)		-		-		-		(4,107	)		-			-		-		-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(22,378	)	$	-	$	-	$	-	$	(22,378	)	$	(43,051	)	$	-	$	-	$	-	$	(43,051	)

59

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 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	$	589,433		$	31,624		$	153,635		$	2,506		$	713,950		$	623,715		$	25,407		$	163,736		$	6,708		$	768,752
Exclude straight-line rent adjustment		(10,239	)		-			-			-			(10,239	)		(9,624	)		-			-			(12	)		(9,636	)
Adjusted revenues		579,194			31,624			153,635			2,506			703,711			614,091			25,407			163,736			6,696			759,116
Add interest and other income		23,047			1,032			14,760			4			36,779			18,402			343			25,761			-			43,820
Add gain on disposition of partial interests in other investment - Nets		55,112			23,675			-			-			31,437			-			-			-			-			-
Add equity in earnings (loss), including impairment of unconsolidated entities		(18,120	)		(6,346	)		5,841			-			(5,933	)		(33,304	)		(68	)		33,685			-			449
Exclude gain (loss) on disposition of unconsolidated entities		830			-			(830	)		-			-			-			-			-			-			-
Exclude impairment of unconsolidated real estate		15,181			-			(15,181	)		-			-			21,463			-			(21,463	)		-			-
Exclude depreciation and amortization of unconsolidated entities		24,717			-			(24,717	)		-			-			22,461			-			(22,461	)		-			-
Adjusted total income		679,961			49,985			133,508			2,510			765,994			643,113			25,682			179,258			6,696			803,385
Operating expenses		338,015			17,469			93,443			1,610			415,599			358,674			11,221			136,070			1,956			485,479
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		2,753			-			947			-			3,700			6,960			-			10,238			-			17,198
Exclude straight-line rent adjustment		(2,659	)		-			-			-			(2,659	)		(3,247	)		-			-			-			(3,247	)
Exclude preference payment		(1,171	)		-			-			-			(1,171	)		(1,171	)		-			-			-			(1,171	)
Adjusted operating expenses		336,938			17,469			94,390			1,610			415,469			361,216			11,221			146,308			1,956			498,259
Net operating income		343,023			32,516			39,118			900			350,525			281,897			14,461			32,950			4,740			305,126
Interest expense		170,721			10,018			39,118			118			199,939			170,318			6,787			32,774			1,922			198,227
(Gain) loss on early extinguishment of debt		(8,193	)		-			-			-			(8,193	)		(9,063	)		-			176			-			(8,887	)
Noncontrolling interest in earnings before depreciation and amortization		22,498			22,498			-			-			-			7,674			7,674			-			-			-
Add: Pre-Tax EBDT from discontinued operations		782			-			-			(782	)		-			2,818			-			-			(2,818	)		-
Pre-Tax EBDT		158,779			-			-			-			158,779			115,786			-			-			-			115,786
Income tax expense (benefit)		(17,248	)		-			-			-			(17,248	)		(21,301	)		-			-			-			(21,301	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	176,027		$	-		$	-		$	-		$	176,027		$	137,087		$	-		$	-		$	-		$	137,087
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	176,027		$	-		$	-		$	-		$	176,027		$	137,087		$	-		$	-		$	-		$	137,087
Depreciation and amortization - Real Estate Groups		(139,107	)		-			-			(636	)		(139,743	)		(145,175	)		-			-			(1,977	)		(147,152	)
Amortization of mortgage procurement costs - Real Estate Groups		(6,682	)		-			-			(13	)		(6,695	)		(7,786	)		-			-			(59	)		(7,845	)
Deferred taxes - Real Estate Groups		(16,486	)		-			-			(400	)		(16,886	)		(7,546	)		-			-			(298	)		(7,844	)
Straight-line rent adjustment		7,580			-			-			-			7,580			6,377			-			-			12			6,389
Preference payment		(1,171	)		-			-			-			(1,171	)		(1,171	)		-			-			-			(1,171	)
Gain (loss) on disposition of partial interests in rental properties, net of tax		125,346			-			(507	)		1,099			125,938			-			-			-			2,784			2,784
Gain (loss) on disposition of unconsolidated entities, net of tax		(507	)		-			507			-			-			-			-			-			-			-
Impairment of consolidated and unconsolidated real estate, net of tax		(28,472	)		-			(9,294	)		-			(37,766	)		(1,577	)		-			(13,139	)		-			(14,716	)
Impairment of unconsolidated real estate, net of tax		(9,294	)		-			9,294			-			-			(13,139	)		-			13,139			-			-
Discontinued operations, net of tax:
Depreciation and amortization - Real Estate Groups		(636	)		-			-			636			-			(1,977	)		-			-			1,977			-
Amortization of mortgage procurement costs - Real Estate Groups		(13	)		-			-			13			-			(59	)		-			-			59			-
Deferred taxes - Real Estate Groups		(400	)		-			-			400			-			(298	)		-			-			298			-
Straight-line rent adjustment		-			-			-			-			-			12			-			-			(12	)		-
Gain on disposition of rental properties		1,099			-			-			(1,099	)		-			2,784			-			-			(2,784	)		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	107,284		$	-		$	-		$	-		$	107,284		$	(32,468	)	$	-		$	-		$	-		$	(32,468	)
Preferred dividends		(4,107	)		-			-			-			(4,107	)		-			-			-			-			-
Net earnings (loss) attributable to Forest City Enterprises, Inc.
common shareholders	$	103,177		$	-		$	-		$	-		$	103,177		$	(32,468	)	$	-		$	-		$	-		$	(32,468	)

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