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

Exhibit 99.1

Forest City Enterprises, Inc.

Supplemental Package

Three and Nine Months Ended October 31, 2006 and 2005

Forest City Enterprises, Inc. and Subsidiaries
Three and Nine Months Ended October 31, 2006 and 2005
Supplemental Package

NYSE: FCEA, FCEB

Index

Corporate Overview	2
Supplemental Operating Information
Occupancy Data	4
Comparable Net Operating Income (NOI)	5
Comparable NOI Detail	6-7
Reconciliation of NOI to Net Earnings	8-9
Lease Expirations Schedules	10-11
Schedules of Significant Tenants	12-13
Development Pipeline	14-16
Supplemental Financial Information
Mortgage Financings	17
Scheduled Maturities Table	18-19
Consolidated Balance Sheet Information	20-21
Consolidated Earnings Information	22-25
Investments in and Advances to Affiliates	26-27
Results of Operations Summary	28-30
Reconciliation of Net Earnings to EBDT	31-32
Summary of EBDT	33-44

This Supplemental Package, together with other statements and information publicly disseminated by the Company, 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 which 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 the Company’s Form 10-K for the year ended January 31, 2006 and other factors that might cause differences, some of which could be material, include, but are not limited to, real estate development and investment risks including lack of satisfactory financing, construction and lease-up delays and cost overruns, the effect of economic and market conditions on a nationwide basis as well as regionally in areas where the Company has a geographic concentration of properties, reliance on major tenants, the impact of terrorist acts, the Company’s substantial leverage and the ability to obtain and service debt, guarantees under the Company’s credit facility, the level and volatility of interest rates, continued availability of tax-exempt government financing, the sustainability of substantial operations at the subsidiary level, illiquidity of real estate investments, dependence on rental income from real property, conflicts of interest, financial stability of tenants within the retail industry which may be impacted by competition and consumer spending, potential liability from syndicated properties, effects of uninsured loss, environmental liabilities, partnership risks, litigation risks, risks associated with an investment in a professional sports franchise, the rate revenue increases versus the rate of expense increases, as well as other risks listed from time to time in the Company’s reports filed with the United States Securities and Exchange Commission. The Company has 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 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. The Commercial Group, our largest business unit, owns, develops, acquires and operates regional malls, specialty/urban retail centers, office and life science buildings, hotels and mixed-use projects. The Residential Group owns, develops, acquires and operates residential rental property, including upscale and middle-market apartments, adaptive re-use developments and supported-living communities. Additionally, the Residential Group develops for-sale condominium projects and also owns, develops and manages military family housing. New York City operations through our partnership with Forest City Ratner Companies are part of the Commercial Group or Residential Group depending on the nature of the operations. Real Estate Groups are the combined Commercial and Residential Groups. The Land Development Group acquires and sells both land and developed lots to residential, commercial and industrial customers. It also owns and develops land into master-planned communities and mixed-use projects. The Nets, a franchise of the National Basketball Association (“NBA”) in which we account for our investment on the equity method of accounting, is a reportable segment of the Company.

We have approximately $8.5 billion of assets in 25 states and the District of Columbia at October 31, 2006. Our core markets include New York City/Philadelphia metropolitan area, Denver, Boston, Greater Washington D.C./Baltimore metropolitan area, Chicago and California. As a result of an ongoing effort to increase property concentration in the core markets, these markets now account for approximately 74 percent of the cost of our real estate portfolio at October 31, 2006. We have offices in Boston, Chicago, Denver, Los Angeles, New York City, San Francisco, Washington, D.C., and our corporate headquarters are in Cleveland, Ohio.

SUPPLEMENTAL FINANCIAL AND OPERATING INFORMATION

We recommend that this supplemental package be read in conjunction with the Company’s Form 10-Q for the three and nine months ended October 31, 2006. This supplemental package contains certain measures prepared in accordance with the generally accepted accounting principles (“GAAP”) under the full consolidation accounting method, and certain measures prepared under the pro-rata consolidation method, a non-GAAP measure. Along with net earnings, we use an additional measure, Earnings before Depreciation, Amortization and Deferred Taxes (“EBDT”), to report operating results. EBDT is a non-GAAP measure and may not be directly comparable to similarly-titled measures reported by other companies. The non-GAAP financial measures presented under the pro-rata consolidation method, comparable net operating income (“NOI”) and EBDT, provide supplemental information about our operations. Although these measures are not presented in accordance with GAAP, we believe they are necessary to understand our business and operating results, along with net earnings and other GAAP measures. Our investors can use these non-GAAP measures as supplementary information to evaluate our business. Our non-GAAP measures are not intended to be performance measures that should be regarded as alternatives to or more meaningful than, our GAAP measures.

Consolidation Methods

We present certain financial amounts under the pro-rata consolidation method because we believe this information is useful to investors as this method reflects the manner in which we operate our business. In line with industry practice, we have made a large number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. Under the pro-rata consolidation method, we generally present our investments proportionate to our economic share of ownership. Under GAAP, the full consolidation method is used to report partnership assets and liabilities consolidated at 100% if deemed to be under our control or if we are deemed to be the primary beneficiary of the variable interest entity (“VIE”), even if our ownership is not 100%. We provide reconciliations from the full consolidation method to the pro-rata consolidation method throughout our supplemental package. Please refer to our property listing for the detail of our consolidated and non-consolidated properties in our Form 10-K for the year ended January 31, 2006 on pages 15-26.

EBDT

We believe that EBDT, along with net earnings, provides additional information about our core operations. While property dispositions, acquisitions or other factors can affect net earnings in the short-term, we believe EBDT presents a more consistent view of the overall financial performance of our business from period-to-period. EBDT is used by the chief operating decision maker and management to assess performance and resource allocations by strategic business unit and on a consolidated basis. EBDT is similar to Funds From Operations (“FFO”), a measure of performance used by publicly traded Real Estate Investment Trusts (“REIT”), but may not be directly comparable to similarly titled measures reported by other companies. (See pages 30-32 for additional discussion of EBDT as well as a reconciliation of EBDT to net earnings.)

2

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Supplemental Operating Information

The operating information contained in this document includes: occupancy data, comparable NOI, reconciliation of NOI to net earnings, retail and office lease expirations, significant retail and office tenant listings, and our development pipeline. We believe this information will give interested parties a better understanding and more information about the operating performance of our Company. The term “comparable,” which is used throughout this document, is generally defined as including properties that were open and operated in both the three and nine months ended October 31, 2006 and 2005.

We believe occupancy rates, retail and office lease expirations, base rent, and significant retail and office tenant listings represent meaningful operating statistics about our Company. This information will give interested parties a better understanding and more information about the operating performance of our Company.

Comparable NOI is useful because it measures the performance of the same properties on a period-to-period basis and, along with EBDT (as discussed beginning on page 29), 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 net earnings, the most comparable financial measure calculated in accordance with GAAP, to NOI and reconciliation from NOI to comparable NOI are provided on pages 6-9 of this document. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 33-34.

Corporate Headquarters

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

Annual Report on Form 10-K

A copy of the Annual Report on Form 10-K for the fiscal year ended January 31, 2006 as filed with the Securities and Exchange Commission can be found on our website 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

Thomas G. Smith
Executive Vice President,
Chief Financial Officer and Secretary

Transfer Agent and Registrar

National City Bank
Stock Transfer Department
P.O. Box 92301
Cleveland, OH 44193-0900
(800) 622-6757
www.shareholder.inquiries@nationalcity.com

Stock Exchange Listing

NYSE: FCEA and FCEB

Dividend Reinvestment and Stock Purchase Plan

The Company offers its stockholders 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. A copy of the Plan prospectus and an enrollment card may be obtained by contacting National City Bank at (800) 622-6757.

3

(THIS PAGE INTENTIONALLY LEFT BLANK)

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Occupancy Data - October 31, 2006 and 2005

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
	October 31, 2006			October 31, 2006			October 31, 2005			October 31, 2005
Retail
Comparable		94.1	%		94.4	%		93.0	%		92.7	%
Total		93.5	%		93.7	%		93.0	%		92.2	%
Office
Comparable		93.2	%		92.9	%		92.4	%		92.8	%
Total		93.4	%		93.0	%		92.6	%		92.8	%
Residential
Comparable		95.0	%		95.0	%		94.3	%		93.1	%
Total		92.4	%		90.2	%		91.8	%		89.8	%
Hotels
Comparable and Total(1)					70.1	%					68.3	%
Comparable ADR and Total ADR(1)				$	142.17					$	132.24

Retail and office occupancy as of October 31, 2006 and 2005 is based on square feet leased at the end of the fiscal quarter. Average Occupancy Year-to-Date as of October 31, 2006 and 2005 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 October 31, 2006 and 2005 represents total units occupied divided by total units available. Average residential occupancy year-to-date for 2006 and 2005 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 nine months ended October 31, 2006 and 2005.

⁽¹⁾ Total Hotel Average Occupancy Year-to-Date and Total ADR for October 31, 2005 have been restated to exclude theHilton Times SquareandEmbassy Suites Hotelwhich were sold during the nine months ended October 31, 2006.

4

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

We use NOI, along with EBDT as discussed on pages 2-3 to assess operating performance. Comparable NOI is defined as NOI from properties opened and operated in both the three and nine months ended October 31, 2006 and 2005. The following schedules on pages 6-7 present comparable NOI for each of our major product lines, as well as the strategic business unit under which these product lines operate. A reconciliation of NOI to the most comparable GAAP measure, net earnings, is presented on pages 8-9. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 35-46.

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

	Three Months Ended						Nine Months Ended
	October 31, 2006						October 31, 2006
	Full			Pro-Rata			Full			Pro-Rata
	Consolidation			Consolidation			Consolidation			Consolidation
Retail		5.1	%		4.4	%		5.6	%		5.3	%
Office		5.5	%		4.4	%		2.8	%		2.6	%
Hotel		6.8	%		7.2	%		13.3	%		11.8	%
Residential		10.2	%		7.4	%		8.9	%		7.2	%
Total		6.4	%		5.3	%		5.4	%		5.1	%

5

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income(dollars in thousands)
	Three Months Ended October 31, 2006														Three Months Ended October 31, 2005													% Change
						Plus														Plus
	Full			Less		Unconsolidated			Plus			Pro-Rata			Full					Unconsolidated			Plus		Pro-Rata			Full			Pro-Rata
	Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Less Minority		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	$	44,478		$	5,063	$	2,892		$	—		$	42,307		$	42,320		$	4,713	$	2,912		$	—	$	40,519			5.1	%		4.4	%
Total		47,125			4,797		2,924			460			45,712			41,315			3,627		2,966			415		41,069
Office Buildings
Comparable		43,672			5,332		1,065			—			39,405			41,382			4,721		1,100			—		37,761			5.5	%		4.4	%
Total		43,959			5,150		1,010			—			39,819			41,148			4,693		983			—		37,438
Hotels
Comparable		4,779			—		494			—			5,273			4,475			—		445			—		4,920			6.8	%		7.2	%
Total		4,779			—		494			3,891			9,164			4,475			—		445			7,186		12,106
Earnings from Commercial Land Sales		7,647			766		—			—			6,881			6,395			227		—			—		6,168
Development Fees		258			103		—			—			155			1,052			421		—			—		631
Other		(7,294	)		1,039		(14	)		—			(8,347	)		2,140			2,290		24			—		(126	)
Total Commercial Group
Comparable		92,929			10,395		4,451			—			86,985			88,177			9,434		4,457			—		83,200			5.4	%		4.5	%
Total		96,474			11,855		4,414			4,351			93,384			96,525			11,258		4,418			7,601		97,286
Residential Group
Apartments
Comparable		25,859			613		5,954			—			31,200			23,475			594		6,160			—		29,041			10.2	%		7.4	%
Total		29,790			1,193		7,896			(65	)		36,428			23,938			1,250		7,397			1,454		31,539
Total Real Estate Groups
Comparable		118,788			11,008		10,405			—			118,185			111,652			10,028		10,617			—		112,241			6.4	%		5.3	%
Total		126,264			13,048		12,310			4,286			129,812			120,463			12,508		11,815			9,055		128,825
Land Development Group		14,302			807		171			—			13,666			22,323			961		(48	)		—		21,314
The Nets		(1,342	)		—		479			—			(863	)		(3,781	)		—		516			—		(3,265	)
Corporate Activities		(12,464	)		—		—			—			(12,464	)		(9,420	)		—		—			—		(9,420	)
Grand Total	$	126,760		$	13,855	$	12,960		$	4,286		$	130,151		$	129,585		$	13,469	$	12,283		$	9,055	$	137,454

6

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income(dollars in thousands)
	Nine Months Ended October 31, 2006												Nine Months Ended October 31, 2005												% Change
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full					Unconsolidated		Plus		Pro-Rata			Full			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Less Minority		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	$	136,101		$	14,950	$	8,256	$	—	$	129,407		$	128,938		$	14,654	$	8,647	$	—	$	122,931			5.6	%		5.3	%
Total		144,160			13,391		9,065		1,808		141,642			134,010			12,166		8,942		1,722		132,508
Office Buildings
Comparable		132,479			16,206		3,275		—		119,548			128,856			15,446		3,139		—		116,549			2.8	%		2.6	%
Total		132,841			16,417		3,105		—		119,529			130,068			16,599		2,964		—		116,433
Hotels
Comparable		11,003			—		1,456		—		12,459			9,713			—		1,432		—		11,145			13.3	%		11.8	%
Total		11,003			—		1,456		11,120		23,579			9,713			—		1,432		16,480		27,625
Earnings from Commercial Land Sales		18,196			924		—		—		17,272			37,975			2,331		—		—		35,644
Development Fees		719			288		—		—		431			7,714			3,085		—		—		4,629
Other		(15,524	)		4,994		101		—		(20,417	)		(11,388	)		3,788		108		—		(15,068	)
Total Commercial Group
Comparable		279,583			31,156		12,987		—		261,414			267,507			30,100		13,218		—		250,625			4.5	%		4.3	%
Total		291,395			36,014		13,727		12,928		282,036			308,092			37,969		13,446		18,202		301,771
Residential Group
Apartments
Comparable		76,645			1,876		18,630		—		93,399			70,376			1,690		18,421		—		87,107			8.9	%		7.2	%
Total		92,823			2,867		23,554		173		113,683			71,606			3,610		23,092		5,786		96,874
Total Real Estate Groups
Comparable		356,228			33,032		31,617		—		354,813			337,883			31,790		31,639		—		337,732			5.4	%		5.1	%
Total		384,218			38,881		37,281		13,101		395,719			379,698			41,579		36,538		23,988		398,645
Land Development Group		52,279			2,786		660		—		50,153			69,818			3,576		191		—		66,433
The Nets		(14,084	)		—		2,811		—		(11,273	)		(16,997	)		—		1,992		—		(15,005	)
Corporate Activities		(30,760	)		—		—		—		(30,760	)		(25,723	)		—		—		—		(25,723	)
Grand Total	$	391,653		$	41,667	$	40,752	$	13,101	$	403,839		$	406,796		$	45,155	$	38,721	$	23,988	$	424,350

7

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

	Three Months Ended October 31, 2006															Three Months Ended October 31, 2005
							Plus															Plus
	Full						Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Less Minority			Investments at			Discontinued			Consolidation			Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	278,658		$	26,044		$	65,075		$	11,845		$	329,534		$	260,964		$	26,285		$	81,644		$	26,882		$	343,205
Exclude straight-line rent adjustment(1)		(2,884	)		—			—			(13	)		(2,897	)		(3,214	)		—			—			(31	)		(3,245	)
Adjusted revenues		275,774			26,044			65,075			11,832			326,637			257,750			26,285			81,644			26,851			339,960
	��
Operating expenses		172,111			12,990			43,066			7,840			210,027			154,536			13,318			49,633			18,518			209,369
Add back depreciation and amortization for non-Real Estate Groups (b)		236			—			(251	)		—			(15	)		198			—			597			—			795
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		46			1			293			—			338			84			—			385			—			469
Exclude straight-line rent adjustment(2)		(1,149	)		—			—			(220	)		(1,369	)		(1,481	)		—			—			(564	)		(2,045	)
Adjusted operating expenses		171,244			12,991			43,108			7,620			208,981			153,337			13,318			50,615			17,954			208,588
Add interest and other income		7,105			802			442			74			6,819			4,988			502			58			158			4,702
Add equity in earnings of unconsolidated entities		9,122			—			(3,446	)		—			5,676			16,113			—			(14,733	)		—			1,380
Remove gain on disposition of equity method rental properties		—			—			—			—			—			(2,526	)		—			2,526			—			—
Add back equity method depreciation and amortization expense (see below)		6,003			—			(6,003	)		—			—			6,597			—			(6,597	)		—			—
Net operating income		126,760			13,855			12,960			4,286			130,151			129,585			13,469			12,283			9,055			137,454
Interest expense, including early extinguishment of debt		(71,194	)		(6,247	)		(12,960	)		(1,689	)		(79,596	)		(64,950	)		(7,413	)		(12,283	)		(6,131	)		(75,951	)
Gain on disposition of equity method rental properties(e)		—			—			—			—			—			2,526			—			—			—			2,526
Gain on disposition of rental properties		—			—			—			83,878			83,878			—			—			—			9,476			9,476
Provision for decline in real estate		—			—			—			—			—			(3,480	)		(1,360	)		—			—			(2,120	)
Provision for decline in real estate of equity method rental properties		—			—			—			—			—			—			—			—			—			—
Depreciation and amortization - Real Estate Groups(a)		(44,879	)		(3,705	)		(5,710	)		(338	)		(47,222	)		(40,603	)		(4,228	)		(6,294	)		(3,607	)		(46,276	)
Amortization of mortgage procurement costs – Real Estate Groups(c)		(2,740	)		(315	)		(293	)		(25	)		(2,743	)		(2,537	)		(317	)		(303	)		(503	)		(3,026	)
Straight-line rent adjustment(1) + (2)		1,735			—			—			(207	)		1,528			1,733			—			—			(533	)		1,200
Equity method depreciation and amortization expense (see above)		(6,003	)		—			6,003			—			—			(6,597	)		—			6,597			—			—
Earnings before income taxes		3,679			3,588			—			85,905			85,996			15,677			151			—			7,757			23,283
Income tax expense		(6,927	)		—			—			(33,194	)		(40,121	)		(7,378	)		—			—			(3,001	)		(10,379	)
Earnings (loss) before minority interest and discontinued operations		(3,248	)		3,588			—			52,711			45,875			8,299			151			—			4,756			12,904
Minority Interest		(3,588	)		(3,588	)		—			—			—			(151	)		(151	)		—			—			—
Earnings (loss) from continuing operations		(6,836	)		—			—			52,711			45,875			8,148			—			—			4,756			12,904
Discontinued operations, net of tax and minority interest:
Operating earnings (loss) from rental properties		1,243			—			—			(1,243	)		—			(1,058	)		—			—			1,058			—
Gain on disposition of rental properties		51,468			—			—			(51,468	)		—			5,814			—			—			(5,814	)		—
		52,711			—			—			(52,711	)		—			4,756			—			—			(4,756	)		—
Net earnings	$	45,875		$	—		$	—		$	—		$	45,875		$	12,904		$	—		$	—		$	—		$	12,904
(a) Depreciation and amortization - Real Estate Groups	$	44,879		$	3,705		$	5,710		$	338		$	47,222		$	40,603		$	4,228		$	6,294		$	3,607		$	46,276
(b) Depreciation and amortization - Non-Real Estate Groups		236			—			(251	)		—			(15	)		198			—			597			—			795
Total depreciation and amortization	$	45,115		$	3,705		$	5,459		$	338		$	47,207		$	40,801		$	4,228		$	6,891		$	3,607		$	47,071
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	2,740		$	315		$	293		$	25		$	2,743		$	2,537		$	317		$	303		$	503		$	3,026
(d) Amortization of mortgage procurement costs - Non-Real Estate Groups		46			1			293			—			338			84			—			385			—			469
Total amortization of mortgage procurement costs	$	2,786		$	316		$	586		$	25		$	3,081		$	2,621		$	317		$	688		$	503		$	3,495

(e)  Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 and therefore are reported in continuing operations when sold. For the three months ended October 31, 2006, no equity method properties were sold, For the three months ended October 31, 2005, one equity method property was sold,Flower Park Plaza, resulting in a pre-tax gain on disposition of $2,526.

8

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

	Nine Months Ended October 31, 2006															Nine Months Ended October 31, 2005
							Plus															Plus
	Full						Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Less Minority			Investments at			Discontinued			Consolidation			Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	821,410		$	77,612		$	210,183		$	43,125		$	997,106		$	827,270		$	85,026		$	231,690		$	78,252		$	1,052,186
Exclude straight-line rent adjustment(1)		(8,955	)		—			—			(44	)		(8,999	)		(11,895	)		—			—			(94	)		(11,989	)
Adjusted revenues		812,455			77,612			210,183			43,081			988,107			815,375			85,026			231,690			78,158			1,040,197
Operating expenses		488,443			38,617			140,702			31,532			622,060			476,528			41,516			142,648			56,297			633,957
Add back depreciation and amortization for non-Real Estate Groups (b)		932			—			7,273			—			8,205			736			—			9,858			—			10,594
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		236			1			591			—			826			286			—			453			—			739
Exclude straight-line rent adjustment(2)		(3,502	)		—			—			(938	)		(4,440	)		(4,045	)		—			—			(1,761	)		(5,806	)
Adjusted operating expenses		486,109			38,618			148,566			30,594			626,651			473,505			41,516			152,959			54,536			639,484
Add interest and other income		29,986			2,673			800			614			28,727			18,485			1,645			505			366			17,711
Add equity in earnings of unconsolidated entities		15,811			—			(2,155	)		—			13,656			46,029			—			(40,103	)		—			5,926
Remove gain on disposition of equity method rental properties		(7,662	)		—			7,662			—			—			(21,023	)		—			21,023			—			—
Add back provision for decline recorded on equity method		400			—			(400	)		—			—			704			—			(704	)		—			—
Add back equity method depreciation and amortization expense (see below)		26,772			—			(26,772	)		—			—			20,731			—			(20,731	)		—			—
Net operating income		391,653			41,667			40,752			13,101			403,839			406,796			45,155			38,721			23,988			424,350
Interest expense, including early extinguishment of debt		(215,427	)		(19,907	)		(40,752	)		(5,602	)		(241,874	)		(198,698	)		(22,179	)		(38,721	)		(16,504	)		(231,744	)
Gain on disposition of equity method rental properties(e)		7,662			—			—			—			7,662			21,023			—			—			—			21,023
Gain on disposition of rental properties and other investments		—			—			—			169,211			169,211			606			—			—			9,476			10,082
Provision for decline in real estate		(1,923	)		—			—			—			(1,923	)		(6,100	)		(1,406	)		—			—			(4,694	)
Provision for decline in real estate of equity method rental properties		(400	)		—			—			—			(400	)		(704	)		—			—			—			(704	)
Depreciation and amortization - Real Estate Groups(a)		(129,970	)		(10,714	)		(25,912	)		(3,639	)		(148,807	)		(120,296	)		(13,108	)		(19,825	)		(11,500	)		(138,513	)
Amortization of mortgage procurement costs – Real Estate Groups(c)		(8,024	)		(915	)		(860	)		(129	)		(8,098	)		(7,211	)		(982	)		(906	)		(1,524	)		(8,659	)
Straight-line rent adjustment(1) + (2)		5,453			—			—			(894	)		4,559			7,850			—			—			(1,667	)		6,183
Equity method depreciation and amortization expense (see above)		(26,772	)		—			26,772			—			—			(20,731	)		—			20,731			—			—
Earnings before income taxes		22,252			10,131			—			172,048			184,169			82,535			7,480			—			2,269			77,324
Income tax provision		(11,065	)		—			—			(66,479	)		(77,544	)		(21,161	)		—			—			(879	)		(22,040	)
Earnings before minority interest and discontinued operations		11,187			10,131			—			105,569			106,625			61,374			7,480			—			1,390			55,284
Minority Interest		(10,131	)		(10,131	)		—			—			—			(7,480	)		(7,480	)		—			—			—
Earnings from continuing operations		1,056			—			—			105,569			106,625			53,894			—			—			1,390			55,284
Discontinued operations, net of tax and minority interest:
Operating earnings (loss) from rental properties		1,740			—			—			(1,740	)		—			(4,424	)		—			—			4,424			—
Gain on disposition of rental properties		103,829			—			—			(103,829	)		—			5,814			—			—			(5,814	)		—
		105,569			—			—			(105,569	)		—			1,390			—			—			(1,390	)		—
Net earnings	$	106,625		$	—		$	—		$	—		$	106,625		$	55,284		$	—		$	—		$	—		$	55,284
(a) Depreciation and amortization - Real Estate Groups	$	129,970		$	10,714		$	25,912		$	3,639		$	148,807		$	120,296		$	13,108		$	19,825		$	11,500		$	138,513
(b) Depreciation and amortization - Non-Real Estate Groups		932			—			7,273			—			8,205			736			—			9,858			—			10,594
Total depreciation and amortization	$	130,902		$	10,714		$	33,185		$	3,639		$	157,012		$	121,032		$	13,108		$	29,683		$	11,500		$	149,107
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	8,024		$	915		$	860		$	129		$	8,098		$	7,211		$	982		$	906		$	1,524		$	8,659
(d) Amortization of mortgage procurement costs - Non-Real Estate Groups		236			1			591			—			826			286			—			453			—			739
Total amortization of mortgage procurement costs	$	8,260		$	916		$	1,451		$	129		$	8,924		$	7,497		$	982		$	1,359		$	1,524		$	9,398

(e)  Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 and therefore are reported in continuing operations when sold. For the nine months ended October 31, 2006, one equity method property was soldMidtown Plaza, resulting in a pre-tax gain on disposition of $7,662. For the nine months ended October 31, 2005, three equity method investments were sold includingFlower Park Plaza,ShowcaseandColony Place, resulting in a pre-tax gain on disposition of $21,023.

9

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Retail Lease Expirations as of October 31, 2006

													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)
2006		67		208,908		1.87	%	$	4,219,843		1.92	%	$	24.56
2007		182		548,664		4.93			9,861,916		4.47			23.71
2008		185		651,142		5.85			12,991,464		5.89			27.21
2009		255		814,445		7.31			14,474,474		6.56			25.32
2010		223		605,537		5.44			14,201,528		6.44			29.97
2011		305		1,224,069		10.99			28,581,778		12.96			28.67
2012		134		692,824		6.22			14,953,871		6.78			27.05
2013		138		566,231		5.08			15,379,748		6.97			30.17
2014		164		664,014		5.96			12,809,053		5.81			27.75
2015		177		752,117		6.75			18,372,611		8.33			29.16
2016		216		1,134,565		10.19			28,979,293		13.14			39.91
Thereafter		99		3,275,711		29.41			45,727,331		20.73			18.03
Total		2,145		11,138,227		100.00	%	$	220,552,910		100.00	%	$	26.06

(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 the Company’s 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 contingent rental payments, which are not reasonably estimatable, and straight-line rent.
(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.

10

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Office Lease Expirations as of October 31, 2006

														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)
	2006		24		383,303		4.37	%	$	6,166,993		3.17	%	$	25.25
	2007		65		452,851		5.17			7,424,377		3.82			21.76
	2008		72		534,720		6.11			9,732,521		5.01			21.90
	2009		51		444,242		5.08			9,119,165		4.70			25.20
	2010		44		985,520		11.26			15,766,601		8.12			24.74
	2011		22		446,157		5.10			10,599,730		5.46			29.70
	2012		16		717,480		8.20			19,853,217		10.22			31.37
	2013		18		698,043		7.98			14,556,667		7.50			24.91
	2014		9		535,175		6.12			11,793,984		6.07			28.35
	2015		5		189,519		2.17			2,381,720		1.23			19.76
	2016		9		423,033		4.83			7,621,841		3.92			23.86
	Thereafter		31		2,941,534		33.61			79,198,034		40.78			31.45
	Total		366		8,751,577		100.00	%	$	194,214,850		100.00	%	$	27.60

(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 the Company’s 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 contingent rental payments, which are not reasonably estimatable, and straight-line rent.
(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.

11

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Retail Tenants as of October 31, 2006

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

					PERCENTAGE
	NUMBER		LEASED		OF TOTAL
	OF		SQUARE		RETAIL
TENANT	LEASES		FEET		SQUARE FEET
AMC Entertainment, Inc.		5		462,863		4.15	%
Regal Entertainment Group		5		379,072		3.40
The Gap		26		324,359		2.91
The Home Depot		2		282,000		2.53
TJX Companies		8		272,554		2.45
The Limited		42		270,441		2.43
Dick’s Sporting Goods		3		226,408		2.03
Abercrombie & Fitch Stores, Inc.		26		199,282		1.79
Circuit City Stores, Inc.		6		199,107		1.79
Footlocker, Inc.		40		145,566		1.31
Pathmark Stores, Inc.		2		123,500		1.11
Ahold USA (Stop & Shop)		2		115,861		1.04
American Eagle Outfitters, Inc.		13		80,025		0.72
Subtotal		180		3,081,038		27.66
All Others		1,965		8,057,189		72.34
Total		2,145		11,138,227		100.00	%

12

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Office Tenants as of October 31, 2006

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

			PERCENTAGE
			OF TOTAL
	LEASED		OFFICE
TENANT	SQUARE FEET		SQUARE FEET
City of New York		890,185		10.17	%
Millennium Pharmaceuticals, Inc.		725,833		8.29
U.S. Government		701,408		8.01
Morgan Stanley & Co.		444,685		5.08
Securities Industry Automation Corp.		431,036		4.93
Wellchoice, Inc.		392,514		4.49
Keyspan Energy		335,318		3.83
Forest City Enterprises, Inc.(1)		326,245		3.73
Bank of New York		323,043		3.69
Bear Stearns		292,142		3.34
Alkermes, Inc.		210,248		2.40
Partners Health Care System, Inc.		136,150		1.56
University of Pennsylvania		121,630		1.39
Subtotal		5,330,437		60.91
All Others		3,421,140		39.09
Total		8,751,577		100.00	%

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

13

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline
October 31, 2006
2006 Openings and Acquisitions (9)

															Cost at FCE
					FCE Legal			Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share
			Dev.(D)	Date Opened/	Ownership%(i)			FCE % (i)			Consolidation		at 100%		(Non-GAAP)(b)				Gross
Property	Location		Acq.(A)	Acquired	(1)			(2)			(GAAP)(a)		(3)		(2)X(3)		Sq. Ft./ No. of Units		Leasable Area
											(in millions)
Retail Centers:
				Q4-05/Q1-06/
Northfield at Stapleton		Denver, CO	D	Q3-06		95.0	%		97.9	%	$	182.5	$	182.5	$	178.5		1,170,000		560,000	(j)
Metreon (c)		San Francisco, CA	A/D	Q1-06		50.0	%		50.0	%		0.0		40.0		20.0		290,000		290,000
San Francisco Centre (c)		San Francisco, CA	A/D	Q3-06		50.0	%		50.0	%		0.0		598.0		299.0		1,462,000		812,000	(k)
											$	182.5	$	820.5	$	497.5		2,922,000		1,662,000
Office:
Resurrection Health Care		Skokie, IL	A	Q1-06		100.0	%		100.0	%	$	4.8	$	4.8	$	4.8		40,000
Advent Solar (c)		Albuquerque, NM	D	Q3-06		50.0	%		50.0	%		0.0		10.2		5.1		88,000
Bulletin Building (c)		San Francisco, CA	A/D	Q3-06		50.0	%		50.0	%		0.0		27.0		13.5		87,000
Stapleton Medical Office Building		Denver, CO	D	Q3-06		90.0	%		90.0	%		10.3		10.3		9.3		45,000
											$	15.1	$	52.3	$	32.7		260,000
Residential:
Sky55		Chicago, IL	D	Q1-06		100.0	%		100.0	%	$	113.2	$	113.2	$	113.2		411
1251 S. Michigan		Chicago, IL	D	Q1-06		100.0	%		100.0	%		16.7		16.7		16.7		91
											$	129.9	$	129.9	$	129.9		502
Total openings(d)											$	327.5	$	1,002.7	$	660.1
Residential Phased-In Units(c)(e)																	Opened in ’06 / Total
Arbor Glenn		Twinsburg, OH	D	2004-07		50.0	%		50.0	%	$	0.0	$	18.4	$	9.2	48 / 288
Woodgate/Evergreen Farms		Olmsted Township, OH	D	2004-07		33.0	%		33.0	%		0.0		22.9		7.6	132 / 348
Pine Ridge Expansion		Willoughby Hills, OH	D	2005-06		50.0	%		50.0	%		0.0		16.4		8.2	36 / 162
Cobblestone Court		Painesville, OH	D	2006-08		50.0	%		50.0	%		0.0		24.6		12.3	112 / 304
Total(f)											$	0.0	$	82.3	$	37.3	328 / 1,102

See attached October 31, 2006 footnotes.

14

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline
October 31, 2006
Under Construction or to be Acquired (19)

					FCE										Cost at FCE
					Legal			Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share		Total			Gross
			Dev.(D)	Anticipated	Ownership%(i)			FCE % (i)			Consolidation		at 100%		(Non-GAAP)(b)		Sq. Ft./			Leasable			Pre-
Property	Location		Acq.(A)	Opening	(1)			(2)			(GAAP)(a)		(3)		(2)X(3)		No. of Units			Area			Leased %
											(in millions)
Retail Centers:
Promenade Bolingbrook		Bolingbrook, IL	D	Q2-07		100.0	%		100.0	%	$	134.8	$	134.8	$	134.8		743,000			417,000	(l)		54	%
Rancho Cucamonga Leggio		Rancho Cucamonga, CA	D	Q2-07		80.0	%		80.0	%		41.2		41.2		33.0		180,000			180,000			100	%
Orchard Town Center		Westminster, CO	D	Q4-07		100.0	%		100.0	%		137.1		137.1		137.1		970,000			556,000	(q)		16	%
East River Plaza (c)		Manhattan, NY	D	Q3-08		35.0	%		50.0	%		0.0		347.3		173.7		514,000			514,000			64	%
											$	313.1	$	660.4	$	478.6		2,407,000			1,662,000
Office:
Edgeworth Building		Richmond, VA	D	Q4-06		100.0	%		100.0	%	$	35.0	$	35.0	$	35.0		142,000						60	%
Illinois Science and Technology Park- Building A (r)		Skokie, IL	A/D	Q4-06		100.0	%		100.0	%		27.4		27.4		27.4		225,000						63	%
Illinois Science and Technology Park- Building Q (r)		Skokie, IL	A/D	Q4-07		100.0	%		100.0	%		45.6		45.6		45.6		160,000						0	%
New York Times		Manhattan, NY	D	Q3-07		70.0	%		100.0	%		507.3		507.3		507.3		734,000	(o)					75	%
Johns Hopkins — 855 North Wolfe Street		East Baltimore, MD	D	Q1-08		77.5	%		77.5	%		104.5		104.5		81.0		278,000						36	%
											$	719.8	$	719.8	$	696.3		1,539,000
Residential:
Cutters Ridge at Tobacco Row (s)		Richmond, VA	D	Q4-06		100.0	%		100.0	%	$	4.8	$	4.8	$	4.8		12
Sterling Glen of Roslyn (g)		Roslyn, NY	D	Q2-07		40.0	%		100.0	%		79.2		79.2		79.2		158
Stapleton Town Center — Botanica Phase II (p)		Denver, CO	D	Q3-07		90.0	%		90.0	%		26.3		26.3		23.7		154
Uptown Apartments (c)		Oakland, CA	D	Q2-08		50.0	%		50.0	%		0.0		188.5		94.3		665
Ohana Military Communities (c) (e)		Honolulu, HI	D	2005-2008		10.0	%		10.0	%		0.0		316.5		31.7		1,952
Dallas Mercantile		Dallas, TX	D	Q4-08		100.0	%		100.0	%		123.2		123.2		123.2		366	(n)
Lucky Strike		Richmond, VA	D	Q1-08		100.0	%		100.0	%		37.3		37.3		37.3		131
Military Housing — Navy Midwest (c)		Chicago, IL	D	Q1-09		25.0	%		25.0	%		0.0		264.9		66.2		1,658
											$	270.8	$	1,040.7	$	460.4		5,096
																			Pre-Sold %
Condominiums:
1100 Wilshire (c)		Los Angeles, CA	D	Q4-06		50.0	%		50.0	%	$	0.0	$	127.8	$	63.9		228	66%
Mercury (c)		Los Angeles, CA	D	Q3-07		50.0	%		50.0	%		0.0		145.0		72.5		238	29%
											$	0.0	$	272.8	$	136.4		466
Total Under Construction (h)											$	1,303.7	$	2,693.7	$	1,771.7
LESS: Above properties to be sold as condominiums												0.0		272.8		136.4
Under Construction less Condominiums											$	1,303.7	$	2,420.9	$	1,635.3
Residential Phased-In Units Under Construction:(c) (e)																		Under Const./Total
Arbor Glen		Twinsburg, OH	D	2004-07		50.0	%		50.0	%	$	0.0	$	18.4	$	9.2		48 / 288
Woodgate/Evergreen Farms		Olmsted Township, OH	D	2004-07		33.0	%		33.0	%		0.0		22.9		7.6		12 / 348
Pine Ridge Expansion		Willoughby Hills, OH	D	2005-06		50.0	%		50.0	%		0.0		16.4		8.2		57 / 162
Cobblestone Court		Painesville, OH	D	2006-08		50.0	%		50.0	%		0.0		24.6		12.3		192 / 304
Stratford Crossing		Wadsworth, OH	D	2007-09		50.0	%		50.0	%		0.0		24.1		12.1		108 / 348
Total (m)											$	0.0	$	106.4	$	49.4		417 / 1,450

See attached October 31, 2006 footnotes.

15

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline

October 31, 2006 Footnotes

(a)	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”).
(b)	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.
(c)	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.
(d)	The difference between the full consolidation amount (GAAP) of $327.5 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $660.1 million of cost consists of a reduction to full consolidation for minority interest of $5.0 million of cost and the addition of its share of cost for unconsolidated investments of $337.6 million.
(e)	Phased-in openings. Costs are representative of the total project.
(f)	The difference between the full consolidation amount (GAAP) of $0.0 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $37.3 million of cost consists of the Company’s share of cost for unconsolidated investments of $37.3 million.
(g)	Supported-living property.
(h)	The difference between the full consolidation amount (GAAP) of $1,303.7 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $1,771.7 million of cost consists of a reduction to full consolidation for minority interest of $34.3 million of cost and the addition of its share of cost for unconsolidated investments of $502.3 million.
(i)	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. The Company consolidates its investments in these projects in accordance with FIN No. 46 (R) at a consolidation percentage that is reflected in the Pro-Rata FCE % column.
(j)	Includes all phases of Northfield at Stapleton including Phase I which opened in Q4-05. Also, includes 34,000 square feet of office space.
(k)	Includes San Francisco Centre and Emporium which were previously reported separately. Includes 235,000 square feet of office space.
(l)	Includes 39,000 square feet of office space.
(m)	The difference between the full consolidation amount (GAAP) of $0.0 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $49.4 million of cost consists of Forest City’s share of cost for unconsolidated investments of $49.4 million.
(n)	Project includes 18,000 square feet of retail space.
(o)	Includes 23,000 square feet of retail space.
(p)	Phased opening: Phase I is scheduled to open Q1-07 and Phase II Q2-07.
(q)	Includes 177,000 square feet for Target and 97,000 square feet for JC Penney that opened in Q3-06 as well as 16,000 square feet of office.
(r)	As of October 31, 2006 the phases of Illinois Science and Technology Park have been broken out. Therefore, two phases are under construction and two phases are under development.
(s)	Formerly a condominium project.

16

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Mortgage Financings

Our primary capital strategy seeks to isolate the financial risk at the property level to maximize returns and reduce risk on and of our equity capital. Our mortgage debt is nonrecourse, including our construction loans. We operate as a C-corporation and retain substantially all of our internally generated cash flows. We recycle this cash flow, together with refinancing and property sale proceeds to fund new development and acquisitions that drive favorable returns for our shareholders. This strategy provides us with the necessary liquidity to take advantage of investment opportunities.

We use taxable and tax-exempt nonrecourse debt for our real estate projects. For those operating projects financed with taxable debt, we generally seek long-term, fixed rate financing for those real estate project loans which mature within the next 12 months, as well as those real estate projects which are projected to open and achieve stabilized operations during that same time frame. 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 extend the maturities and/or refinance the nonrecourse debt that is coming due in 2006 and 2007. During the nine months ended October 31, 2006, we completed the following financings:

					Plus
					Unconsolidated
	Full		Less Minority		Investments at		Pro-Rata
Purpose of Financing	Consolidation		Interest		Pro-Rata		Consolidation
	(in thousands)
Refinancings	$	465,574	$	9,600	$	19,466	$	475,440
Development projects — commitment		207,422		24,095		32,400		215,727
Loan extensions/additional fundings		212,490		5,564		52,808		259,734
	$	885,486	$	39,259	$	104,674	$	950,901

17

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Mortgage Debt(dollars in thousands)
As of October 31, 2006

	Period Ending January 31, 2007												Fiscal Year Ending January 31, 2008
							Plus												Plus
							Unconsolidated												Unconsolidated
	Full			Less Minority			Investments at			Pro-Rata			Full			Less Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	110,462		$	2,177		$	3,933		$	112,218		$	158,393		$	23,306		$	94,744		$	229,831
Weighted average rate		7.10	%		7.30	%		6.66	%		7.08	%		6.80	%		6.94	%		7.46	%		7.06	%
UDAG		174			33			11,775			11,916			589			132			—			457
Weighted average rate		3.71	%		3.23	%		7.20	%		7.16	%		3.46	%		3.28	%		—			3.51	%
Total fixed-rate debt		110,636			2,210			15,708			124,134			158,982			23,438			94,744			230,288
Variable:
Variable-rate debt		99,820			6,693			45,607			138,734			366,703			69,693			111,330			408,340
Weighted average rate		6.94	%		7.75	%		8.06	%		7.27	%		7.52	%		8.16	%		7.66	%		7.45	%
Tax-Exempt		52,664			—			4,744			57,408			136,641			—			29,189			165,830
Weighted average rate		5.89	%		—			4.92	%		5.81	%		4.81	%		—			4.84	%		4.82	%
Total variable-rate debt		152,484			6,693			50,351			196,142			503,344			69,693			140,519			574,170
Total Nonrecourse Mortgage Debt	$	263,120		$	8,903		$	66,059		$	320,276		$	662,326		$	93,131		$	235,263		$	804,458
Weighted Average Rate		6.79	%		7.62	%		7.60	%		6.94	%		6.79	%		7.85	%		7.23	%		6.79	%

	Fiscal Year Ending January 31, 2009												Fiscal Year Ending January 31, 2010
							Plus												Plus
							Unconsolidated												Unconsolidated
	Full			Less Minority			Investments at			Pro-Rata			Full			Less Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	101,302		$	19,083		$	84,929		$	167,148		$	342,570		$	57,638		$	54,725		$	339,657
Weighted average rate		6.68	%		7.01	%		6.81	%		6.71	%		7.10	%		7.44	%		6.81	%		6.99	%
UDAG		576			136			948			1,388			563			141			—			422
Weighted average rate		3.38	%		3.29	%		4.00	%		3.81	%		3.28	%		3.28	%		—			3.29	%
Total fixed-rate debt		101,878			19,219			85,877			168,536			343,133			57,779			54,725			340,079
Variable:
Variable-rate debt		201,645			340			127,191			328,496			3,190			—			13,630			16,820
Weighted average rate		6.89	%		7.57	%		7.68	%		7.20	%		5.11	%		—			6.80	%		6.48	%
Tax-Exempt		16,315			—			103			16,418			196,610			5,000			120,113			311,723
Weighted average rate		5.13	%		—			3.97	%		5.12	%		4.18	%		4.14	%		4.41	%		4.27	%
Total variable-rate debt		217,960			340			127,294			344,914			199,800			5,000			133,743			328,543
Total Nonrecourse Mortgage Debt	$	319,838		$	19,559		$	213,171		$	513,450		$	542,933		$	62,779		$	188,468		$	668,622
Weighted Average Rate		6.73	%		6.99	%		7.31	%		6.96	%		6.03	%		7.17	%		5.28	%		5.71	%

18

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Mortgage Debt(dollars in thousands)(continued)
As of October 31, 2006

	Fiscal Year Ending January 31, 2011												Thereafter
							Plus												Plus
							Unconsolidated												Unconsolidated
	Full			Less Minority			Investments at			Pro-Rata			Full			Less Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	183,228		$	33,042		$	18,804		$	168,990		$	2,694,428		$	271,684		$	277,738		$	2,700,482
Weighted average rate		7.62	%		8.08	%		7.35	%		7.50	%		6.04	%		6.47	%		5.92	%		5.98	%
UDAG		21,163			13,237			—			7,926			72,189			5,497			—			66,692
Weighted average rate		2.00	%		1.10	%		—			3.49	%		2.06	%		2.86	%		—			1.99	%
Total fixed-rate debt		204,391			46,279			18,804			176,916			2,766,617			277,181			277,738			2,767,174
Variable:
Variable-rate debt		48,265			—			9,760			58,025			61,775			—			32,972			94,747
Weighted average rate		5.26	%		—			8.79	%		5.86	%		5.02	%		—			6.66	%		5.59	%
Tax-Exempt		31,385			—			6,118			37,503			285,880			11,781			43,998			318,097
Weighted average rate		4.38	%		—			3.99	%		4.32	%		4.65	%		4.46	%		3.57	%		4.52	%
Total variable-rate debt		79,650			—			15,878			95,528			347,655			11,784			76,970			412,841
Total Nonrecourse Mortgage Debt	$	284,041		$	46,279		$	34,682		$	272,444		$	3,114,272		$	288,962		$	354,708		$	3,180,018
Weighted Average Rate		6.44	%		6.09	%		7.16	%		6.60	%		5.80	%		6.32	%		5.69	%		5.74	%
	Total
							Plus
							Unconsolidated
	Full			Less Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	3,590,383		$	406,930		$	534,873		$	3,718,326									��
Weighted average rate		6.30	%		6.79	%		6.48	%		6.28	%
UDAG		95,254			19,176			12,723			88,801
Weighted average rate		2.07	%		1.66	%		6.96	%		2.86	%
Total fixed-rate debt		3,685,637			426,106			547,596			3,807,127
Variable:
Variable-rate debt		781,398			76,726			340,490			1,045,162
Weighted average rate		6.94	%		8.12			7.62	%		7.07	%
Tax-Exempt		719,495			16,781			204,265			906,979
Weighted average rate		4.64	%		4.36	%		4.29	%		4.57	%
Total variable-rate debt		1,500,893			93,507			544,755			1,952,141
Total Nonrecourse Mortgage Debt	$	5,186,530		$	519,613		$	1,092,351		$	5,759,268
Weighted Average Rate		6.09	%		6.72	%		6.43	%		6.10	%

19

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

As discussed on page 2, 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, the Company is not deemed the primary beneficiary.

Consolidated Balance Sheet Information — October 31, 2006 (unaudited)

							Plus
	Full						Unconsolidated			Pro-Rata
	Consolidation			Less Minority			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties	$	6,321,694		$	598,674		$	1,095,121		$	6,818,141
Projects under development		1,348,152			121,311			295,172			1,522,013
Land held for development or sale		151,777			7,162			115,660			260,275
Total Real Estate		7,821,623			727,147			1,505,953			8,600,429
Less accumulated depreciation		(1,060,448	)		(134,397	)		(287,416	)		(1,213,467	)
Real Estate, net		6,761,175			592,750			1,218,537			7,386,962
Cash and equivalents		174,571			25,815			28,556			177,312
Restricted cash		316,584			42,168			128,793			403,209
Notes and accounts receivable, net		314,370			50,382			(8,428	)		255,560
Investments in and advances to affiliates		399,372			—			(197,883	)		201,489
Other assets		562,920			35,280			89,132			616,772
Total Assets	$	8,528,992		$	746,395		$	1,258,707		$	9,041,304
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse	$	5,186,530		$	519,613		$	1,092,351		$	5,759,268
Notes payable		131,029			1,185			62,818			192,662
Bank revolving credit facility		—			—			—			—
Senior and subordinated debt		886,900			—			—			886,900
Accounts payable and accrued expenses		757,836			33,556			103,538			827,818
Deferred income taxes		428,478			—			—			428,478
Total Liabilities		7,390,773			554,354			1,258,707			8,095,126
Minority Interest		192,041			192,041			—			—
Total Shareholders’ Equity		946,178			—			—			946,178
Total Liabilities and Shareholders’ Equity	$	8,528,992		$	746,395		$	1,258,707		$	9,041,304

20

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Balance Sheet Information — January 31, 2006 (unaudited)

							Plus
	Full						Unconsolidated			Pro-Rata
	Consolidation			Less Minority			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Assets
Real estate
Completed rental properties	$	6,162,995		$	765,827		$	931,183		$	6,328,351
Projects under development		886,256			84,241			394,648			1,196,663
Land held for development or sale		105,875			3,420			97,566			200,021
Total real estate		7,155,126			853,488			1,423,397			7,725,035
Less accumulated depreciation		(986,594	)		(147,375	)		(269,412	)		(1,108,631	)
Real estate, net		6,168,532			706,113			1,153,985			6,616,404
Cash and equivalents		254,734			33,026			13,522			235,230
Restricted cash		430,264			31,942			51,241			449,563
Notes and accounts receivable, net		265,264			30,562			(2,045	)		232,657
Investments in and advances to affiliates		361,942			—			(155,245	)		206,697
Other assets		509,605			37,042			93,873			566,436
Total assets	$	7,990,341		$	838,685		$	1,155,331		$	8,306,987
Liabilities and shareholders’ equity
Liabilities
Mortgage debt, nonrecourse	$	5,159,432		$	625,600		$	966,107		$	5,499,939
Notes payable		89,174			19,214			91,710			161,670
Bank revolving credit facility		82,500			—			—			82,500
Senior and subordinated debt		599,400			—			—			599,400
Accounts payable and accrued expenses		674,949			91,155			97,514			681,308
Deferred income taxes		387,788			—			—			387,788
Total liabilities		6,993,243			735,969			1,155,331			7,412,605
Minority interest		102,716			102,716			—			—
Total shareholders’ equity		894,382			—			—			894,382
Total liabilities and shareholders’ equity	$	7,990,341		$	838,685		$	1,155,331		$	8,306,987

21

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information — Three Months Ended October 31, 2006 (unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	278,658		$	26,044		$	65,075		$	11,845		$	329,534
Expenses
Operating expenses		172,111			12,990			43,066			7,840			210,027
Depreciation and amortization		45,115			3,705			5,459			338			47,207
Provision for decline in real estate		—			—			—			—			—
		217,226			16,695			48,525			8,178			257,234
Interest expense, including early extinguishment of debt		(71,194	)		(6,247	)		(12,960	)		(1,689	)		(79,596	)
Amortization of mortgage procurement costs		(2,786	)		(316	)		(586	)		(25	)		(3,081	)
Interest and other income		7,105			802			442			74			6,819
Equity in earnings of unconsolidated entities		9,122			—			(3,446	)		—			5,676
Gain on disposition of rental properties		—			—			—			83,878			83,878
Earnings before income taxes		3,679			3,588			—			85,905			85,996
Income tax expense (benefit)
Current		(7,705	)		—			—			17,363			9,658
Deferred		14,632			—			—			15,831			30,463
		6,927			—			—			33,194			40,121
Earnings (loss) before minority interest and discontinued operations		(3,248	)		3,588			—			52,711			45,875
Minority interest		(3,588	)		(3,588	)		—			—			—
Earnings (loss) from continuing operations		(6,836	)		—			—			52,711			45,875
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		1,243			—			—			(1,243	)		—
Gain on disposition of rental properties		51,468			—			—			(51,468	)		—
		52,711			—			—			(52,711	)		—
Net earnings	$	45,875		$	—		$	—		$	—		$	45,875

22

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information — Nine Months Ended October 31, 2006 (unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	821,410		$	77,612		$	210,183		$	43,125		$	997,106
Expenses
Operating expenses		488,443			38,617			140,702			31,532			622,060
Depreciation and amortization		130,902			10,714			33,185			3,639			157,012
Provision for decline in real estate		1,923			—			400			—			2,323
		621,268			49,331			174,287			35,171			781,395
Interest expense, including early extinguishment of debt		(215,427	)		(19,907	)		(40,752	)		(5,602	)		(241,874	)
Amortization of mortgage procurement costs		(8,260	)		(916	)		(1,451	)		(129	)		(8,924	)
Interest and other income		29,986			2,673			800			614			28,727
Equity in earnings of unconsolidated entities (Note 1)		15,811			—			(2,155	)		—			13,656
Gain on disposition of rental properties		—			—			7,662			169,211			176,873
Earnings before income taxes		22,252			10,131			—			172,048			184,169
Income tax expense (benefit)
Current		(13,053	)		—			—			17,197			4,144
Deferred		24,118			—			—			49,282			73,400
		11,065			—			—			66,479			77,544
Earnings before minority interest and discontinued operations		11,187			10,131			—			105,569			106,625
Minority interest		(10,131	)		(10,131	)		—			—			—
Earnings from continuing operations(Note 1)		1,056			—			—			105,569			106,625
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		1,740			—			—			(1,740	)		—
Gain on disposition of rental properties		103,829			—			—			(103,829	)		—
		105,569			—			—			(105,569	)		—
Net earnings	$	106,625		$	—		$	—		$	—		$	106,625

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the nine months ended October 31, 2006, one equity method investment was sold,Midtown Plaza.A pre-tax gain of $7,662 ($4,700 net of tax) has been reported in equity in earnings of unconsolidated entities in the Consolidated Statements of Earnings, and therefore is included in earnings from continuing operations.

23

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information — Three Months Ended October 31, 2005 (unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	260,964		$	26,285		$	81,644		$	26,882		$	343,205
Expenses
Operating expenses		154,536			13,318			49,633			18,518			209,369
Depreciation and amortization		40,801			4,228			6,891			3,607			47,071
Provision for decline in real estate		3,480			1,360			—			—			2,120
		198,817			18,906			56,524			22,125			258,560
Interest expense, including early extinguishment of debt		(64,950	)		(7,413	)		(12,283	)		(6,131	)		(75,951	)
Amortization of mortgage procurement costs		(2,621	)		(317	)		(688	)		(503	)		(3,495	)
Interest and other income		4,988			502			58			158			4,702
Equity in earnings of unconsolidated entities (Note 1)		16,113			—			(14,733	)		—			1,380
Gain on disposition of rental properties		—			—			2,526			9,476			12,002
Earnings before income taxes		15,677			151			—			7,757			23,283
Income tax expense (benefit)
Current		(1,718	)		—			—			(383	)		(2,101	)
Deferred		9,096			—			—			3,384			12,480
		7,378			—			—			3,001			10,379
Earnings before minority interest and discontinued operations		8,299			151			—			4,756			12,904
Minority interest		(151	)		(151	)		—			—			—
Earnings from continuing operations(Note 1)		8,148			—			—			4,756			12,904
Discontinued operations, net of tax and minority interest:
Operating loss from rental properties		(1,058	)		—			—			1,058			—
Gain on disposition of rental properties		5,814			—			—			(5,814	)		—
		4,756			—			—			(4,756	)		—
Net earnings	$	12,904		$	—		$	—		$	—		$	12,904

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the three months ended October 31, 2005, one equity method investment was sold,Flower Park Plaza. A pre-tax gain of $2,526 ($1,550 net of tax) has been reported in equity in earnings of unconsolidated entities in the Consolidated Statements of Earnings, and therefore is included in Earnings from Continuing Operations.

24

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information — Nine Months Ended October 31, 2005 (unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	827,270		$	85,026		$	231,690		$	78,252		$	1,052,186
Expenses
Operating expenses		476,528			41,516			142,648			56,297			633,957
Depreciation and amortization		121,032			13,108			29,683			11,500			149,107
Provision for decline in real estate		6,100			1,406			704			—			5,398
		603,660			56,030			173,035			67,797			788,462
Interest expense, including early extinguishment of debt		(198,698	)		(22,179	)		(38,721	)		(16,504	)		(231,744	)
Amortization of mortgage procurement costs		(7,497	)		(982	)		(1,359	)		(1,524	)		(9,398	)
Interest and other income		18,485			1,645			505			366			17,711
Equity in earnings of unconsolidated entities (Note 1)		46,029			—			(40,103	)		—			5,926
Gain on disposition of rental properties and other investments		606			—			21,023			9,476			31,105
Earnings before income taxes		82,535			7,480			—			2,269			77,324
Income tax expense (benefit)
Current		6,930			—			—			(4,359	)		2,571
Deferred		14,231			—			—			5,238			19,469
		21,161			—			—			879			22,040
Earnings before minority interest and discontinued operations		61,374			7,480			—			1,390			55,284
Minority interest		(7,480	)		(7,480	)		—			—			—
Earnings from continuing operations(Note 1)		53,894			—			—			1,390			55,284
Discontinued operations, net of tax and minority interest:
Operating loss from rental properties		(4,424	)		—			—			4,424			—
Gain on disposition of rental properties		5,814			—			—			(5,814	)		—
		1,390			—			—			(1,390	)		—
Net earnings	$	55,284		$	—		$	—		$	—		$	55,284

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the nine months ended October 31, 2005, three equity method investments were sold,Flower Park Plaza,Colony PlaceandShowcase, resulting in a pre-tax gain on disposition of $21,023 ($12,900 net of tax). This gain has been reported in equity in earnings of unconsolidated entities in the Consolidated Statements of Earnings, and therefore is included in Earnings from Continuing Operations.

25

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 which we do not control and/or are not the primary beneficiary, and which 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:

	October 31,		January 31,
	2006		2006
	(in thousands)
Members’ and partners’ equity as below	$	626,602	$	564,280
Equity of other members and partners		425,719		409,035
Company’s investment in partnerships		200,883		155,245
Advances to and on behalf of other affiliates(1)		198,489		206,697
Total investments in and advances to affiliates	$	399,372	$	361,942

(1) As is customary within the real estate industry, the Company invests in certain projects through joint ventures. The Company provides funding for certain of its partners’ equity contributions. The most significant partnership for which the Company provides funding relates to Forest City Ratner Companies (“FCRC”), representing the Commercial Group’s New York City operations and one unconsolidated project reported in the Residential Group. The Company consolidates the majority of its investments in these Commercial Group projects. The Company’s partner is the President and Chief Executive Officer of Forest City Ratner Companies and is the cousin to five executive officers of the Company. At October 31, 2006 and January 31, 2006, amounts advanced for projects on behalf of this partner, collateralized solely by each respective partnership interest were $40,908 and $50,230, respectively, of the $198,489 and $206,697 presented above for “Advances to and on behalf of other affiliates.” These advances entitle the Company to a preferred return on and of the outstanding balances, which are payable solely from cash flows of each respective property, as well as a deficit restoration obligation provided by the partner. On November 8, 2006 the Company completed the restructuring of the FCRC portfolio and, as such, as substantial portion of these advances have been repaid.

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

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
	October 31, 2006			January 31, 2006			October 31, 2006			January 31, 2006
	(in thousands)						(in thousands)
Balance sheet:
Completed rental properties	$	2,403,432		$	1,946,922		$	1,095,121		$	931,183
Projects under development		738,239			854,316			295,172			394,648
Land held for development or sale		215,280			181,315			115,660			97,566
Accumulated depreciation		(559,056	)		(529,501	)		(287,416	)		(269,412	)
Restricted cash		549,176			317,850			128,793			51,241
Other assets		429,424			469,676			112,260			105,350
Total assets	$	3,776,495		$	3,240,578		$	1,459,590		$	1,310,576
Mortgage debt, nonrecourse	$	2,603,266		$	2,145,146		$	1,092,351		$	966,107
Other liabilities		546,627			531,152			166,356			189,224
Members’ and partners’ equity		626,602			564,280			200,883			155,245
Total liabilities and members’/partners’ equity	$	3,776,495		$	3,240,578		$	1,459,590		$	1,310,576

26

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 October 31,	2006			2005			2006			2005
				(in thousands)
Operations:
Revenues	$	132,358		$	169,052		$	65,075		$	81,644
Equity in earnings of unconsolidated entities on a pro-rata basis		—			—			5,676			1,380
Operating expenses		(85,486	)		(101,352	)		(43,066	)		(49,633	)
Interest expense including early extinguishment of debt		(33,965	)		(24,747	)		(12,960	)		(12,283	)
Provision for decline in real estate		—			—			—			—
Depreciation and amortization		(16,089	)		(16,239	)		(6,045	)		(7,579	)
Interest income		3,769			214			442			58
Gain on disposition of rental properties(2)		—			4,094			—			2,526
Net earnings (pre-tax)	$	587		$	31,022		$	9,122		$	16,113

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Nine Months Ended October 31,	2006			2005			2006			2005
				(in thousands)
Operations:
Revenues	$	466,570		$	498,307		$	210,183		$	231,690
Equity in earnings of unconsolidated entities on a pro-rata basis		—			—			13,656			5,926
Operating expenses		(319,121	)		(304,612	)		(140,702	)		(142,648	)
Interest expense including early extinguishment of debt		(100,290	)		(90,673	)		(40,752	)		(38,721	)
Provision for decline in real estate		(1,000	)		(704	)		(400	)		(704	)
Depreciation and amortization		(77,375	)		(74,494	)		(34,636	)		(31,042	)
Interest income		10,496			7,164			800			505
Gain on disposition of rental properties(2)		15,325			85,802			7,662			21,023
Net earnings (loss) (pre-tax)	$	(5,395	)	$	120,790		$	15,811		$	46,029

(2) The following table shows the detail of gain on disposition of rental properties that were held by equity method investments:

	Combined (100%)				Pro-Rata Share				Combined (100%)				Pro-Rata Share
	(GAAP)				(non-GAAP)				(GAAP)				(non-GAAP)
	Three Months Ended October 31,								Nine Months Ended October 31,
	2006		2005		2006		2005		2006		2005		2006		2005
			(in thousands)								(in thousands)
Midtown Plaza (Specialty Retail Center)        (Parma, Ohio)	$	—	$	—	$	—	$	—	$	15,325	$	—	$	7,662	$	—
Showcase (Specialty Retail Center)      (Las Vegas, Nevada)		—		—		—		—		—		71,005		—		13,146
Colony Place (Apartments)                   (Fort Myers, Florida)		—		—		—		—		—		10,703		—		5,351
Flower Park Plaza (Apartments)       (Santa Ana, California)		—		4,094		—		2,526		—		4,094		—		2,526
Total gain on disposition of equity method rental properties		—	$	4,094	$	—	$	2,526	$	15,325	$	85,802	$	7,662	$	21,023

27

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Results of Operations

Net Earnings —Net earnings for the three months ended October 31, 2006 were $45,875,000 versus $12,904,000 for the three months ended October 31, 2005. Although we have substantial recurring revenue sources from our properties, we are a transactional-based business, which could create substantial variances in net earnings between periods. This variance to the prior year is primarily attributable to the following increase, which is net of tax and minority interest:

• $51,468,000 ($83,878,000, pre-tax) primarily related to the 2006 gains on disposition of two consolidated properties,Embassy Suites Hotel, a 463-room hotel located in Manhattan, New York, andBattery Park City, a retail center located in Manhattan, New York.

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

• $5,814,000 ($9,476,000, pre-tax) related to the 2005 gains on disposition of two consolidated properties,Cherrywood VillageandRanchstone, apartment communities located in Denver, Colorado;

• Decrease of $4,803,000 ($8,304,000, pre-tax) related to earnings reported in the Land Development Group primarily due to a decrease in land sales atStapletonin Denver, Colorado andCentral Stationin Chicago, Illinois;

• $2,937,000 ($4,785,000, pre-tax) related to the fair market value adjustments of certain of our 10-year forward swaps which were marked to market through earnings during the three months ended October 31, 2006 as a result of the derivatives not qualifying for hedge accounting (See the Interest Rate Exposure section);

• $1,550,000 ($2,526,000, pre-tax) related to the 2005 gain on disposition of one equity method property,Flower Park Plaza, an apartment community located in Santa Ana, California; and

• Decrease of $758,000 ($1,005,000, pre-tax) related to the expensing of stock options upon our adoption of Statement of Financial Accounting Standards (“SFAS”) No. 123 (Revised), “Share-Based Payment” (“SFAS No. 123(R)”), on February 1, 2006.

Net earnings for the nine months ended October 31, 2006 were $106,625,000 versus $55,284,000 for the nine months ended October 31, 2005. This variance to the prior year is primarily attributable to the following increases, which are net of tax and minority interest:

• $103,829,000 ($169,211,000, pre-tax) related to the 2006 gains on disposition of five consolidated properties,Providence at Palm Harbor, an apartment community located in Tampa, Florida,Hilton Times Square, a 444-room hotel located in Manhattan, New York,G Street, a specialty retail center located in Philadelphia, Pennsylvania,Embassy Suites Hotel, andBattery Park City;

• $5,520,000 ($8,838,000, pre-tax) related to income recognition on the sale of State of Rhode Island Historical Preservation Tax Credits forAshton Mill, an apartment community located in Cumberland, Rhode Island;

• $4,700,000 ($7,662,000, pre-tax) related to the 2006 gain on disposition of one equity method Commercial property,Midtown Plaza, a specialty retail center located in Parma, Ohio; and

• $1,856,000 ($3,025,000, pre-tax) related to the prior year write-off of a portion of our enterprise resource planning project that did not recur.

28

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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

• $12,900,000 ($21,023,000, pre-tax) related to the 2005 gains on disposition of three equity method properties,Showcase, a specialty retail center located in Las Vegas, Nevada,Colony Place, an apartment community located in Fort Myers, Florida, andFlower Park Plaza;

• Decrease of $11,298,000 ($18,372,000, pre-tax) related to decreases in Commercial Group sales of land, outlots, and development projects. These decreases are made up of $7,008,000, pre-tax, related to a 2005 land sale atTwelve MetroTech Center, $5,756,000, pre-tax, in outlot land sales for our consolidated properties primarily atSimi ValleyandWadsworth, $4,517,000, pre-tax, related to the sale of a development project in Las Vegas, Nevada, and $1,091,000, pre-tax, related to land sales for our unconsolidated properties atGalleria at Sunsetlocated in Henderson, Nevada, that did not recur which was partially offset by increased sales of land development projects for unconsolidated properties;

• Decrease of $10,932,000 ($17,422,000, pre-tax) related to earnings reported in the Land Development Group primarily due to a decrease in land sales atStapletonandCentral Station;

• $10,000,000 related to the one-time reduction of deferred income taxes which resulted from a favorable change in our effective tax rate due to a change in the rate in the State of Ohio during the nine months ended October 31, 2005;

• $6,845,000 ($11,155,000, pre-tax) related to the fair market value adjustments of certain of our 10-year forward swaps which were marked to market through earnings during the nine months ended October 31, 2006 as a result of the derivatives not qualifying for hedge accounting;

• $5,814,000 ($9,476,000, pre-tax) related to the 2005 gains on disposition ofCherrywood VillageandRanchstone;

• Decrease of $2,712,000 ($3,734,000, pre-tax) related to the expensing of stock options upon our adoption of SFAS No. 123(R) on February 1, 2006; and

• Decrease of $2,576,000 ($4,198,000, pre-tax) related to our development fee revenue atTwelve MetroTech Centerthat did not recur.

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 for non-real estate groups) plus interest income plus equity in earnings of unconsolidated entities (excluding gain on disposition of equity method operating properties) plus equity method depreciation and amortization. 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. Under the full consolidation method (GAAP), NOI from the combination of the Commercial Group and the Residential Group (“Real Estate Groups”) for the three months ended October 31, 2006 was $126,264,000 compared to $120,463,000 for the three months ended October 31, 2005, a 4.8% increase. NOI for the nine months ended October 31, 2006 was $384,218,000 compared to $379,698,000 for the nine months ended October 31, 2005, a 1.2% increase. A reconciliation of NOI to the most comparable GAAP measure, net earnings, is presented on pages 8-9. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 33-34.

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 the combination of the Commercial Group and the Residential Group for the three months ended October 31, 2006 was $129,812,000 compared to $128,825,000 for the three months ended October 31, 2005, a 0.8% increase. NOI for the nine months ended October 31, 2006 was $395,719,000 compared to $398,645,000 for the nine months ended October 31, 2005, a 0.7% decrease primarily as a result of decreased outlot sales in our Commercial Group. Comparable NOI increased 5.1% for the nine months ended October 31, 2006 compared to the prior year. Comparable NOI for our retail portfolio is up 5.3% from the prior year and our residential portfolio has generated an increase of 7.2%.

EBDT — We use an additional measure, along with net earnings, to report our operating results. This non-GAAP measure, referred to as Earnings Before Depreciation, Amortization and Deferred Taxes (“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.

29

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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 from real estate operations of Forest City Rental Properties Corporation, a wholly-owned subsidiary of Forest City Enterprises, Inc., for depreciation, amortization, amortization of mortgage procurement costs and deferred income taxes; iv) provision for decline in real estate (net of tax); v) extraordinary items (net of tax); and vi) cumulative effect of change in accounting principle (net of tax). Unlike the real estate segments, EBDT for the Nets segment equals net earnings.

EBDT is reconciled to net earnings, the most comparable financial measure calculated in accordance with GAAP, below. 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 provision for decline in 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 October 31, 2006 decreased by 10.7% to $57,400,000 from $64,250,000 for the three months ended October 31, 2005. This variance to the prior year is primarily attributable to decreased EBDT in the Land Development Group of $6,603,000 primarily atCentral Stationin Chicago, Illinois; the fair market value adjustments of $4,785,000 for 10-year forward-swaps which were marked to market; increased Corporate interest expense of $1,595,000 as a result of increased borrowings to fund our development pipeline and increased short-term interest rates; and increased stock-based compensation expense of $850,000 as a result of our adoption of Statement of Financial Accounting Standards (“SFAS”) No. 123 (Revised), “Share-Based Payment” (“SFAS No. 123(R)”), on February 1, 2006. These decreases were partially offset by approximately $7,000,000 of additional EBDT from operating activity in our Real Estate Groups.

Our EBDT for the nine months ended October 31, 2006 decreased by 9.9% to $177,404,000 from $196,839,000 for the nine months ended October 31, 2005. This variance to the prior year is primarily attributable to decreased EBDT of $13,871,000 reported in the Land Development Group primarily atStapletonin Denver, Colorado, andCentral Stationin Chicago; decreased outlot land sales of $9,924,000 in Commercial Group primarily atSimi ValleyandGalleria at Sunset; a decrease of $4,536,000 related to a 2005 land sale atTwelve MetroTech Centerin Brooklyn, New York and a decrease of $3,468,000 primarily related to a 2005 sale of a development project in Las Vegas, Nevada, both of which did not recur; the fair market value adjustments of $11,155,000 for 10-year forward-swaps which were marked to market; a decrease of $2,957,000 related to increased stock-based compensation expense as a result of our adoption of SFAS No. 123(R) on February 1, 2006; increased Corporate interest expense of $2,789,000 as a result of increased borrowings to fund our development pipeline and increased short-term interest rates; and $2,576,000 related to our development fee revenue atTwelve MetroTech Centerthat did not recur. These decreases were partially offset by $5,520,000 related to income recognition on the sale of State of Rhode Island Historical Preservation Tax Credits forAshton Mill, an apartment community located in Cumberland, Rhode Island, as well as EBDT increases of approximately $26,000,000 from operating activity in our Real Estate Groups.

Stock-Based Compensation —We adopted SFAS No. 123 (Revised), “Share-Based Payment” (“SFAS No. 123(R)”) on February 1, 2006 which required the recognition of additional compensation costs related to the estimated fair value of our employee stock options. Previously, we did not expense stock options. We have and will continue to expense restricted stock consistent with prior quarters because the accounting treatment remains substantially the same under SFAS No. 123(R). The adoption of this standard lowered net earnings and EBDT by $758,000 and $850,000, respectively, for the three months ended October 31, 2006, and $2,712,000 and $2,957,000, respectively, for the nine months ended October 31, 2006. Diluted net earnings per share and EBDT per share were lower by $.01 for the three months ended October 31, 2006 and were lower by $.03 for the nine months ended October 31, 2006 due to SFAS No. 123(R).

30

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of EBDT- The information in the tables on pages 33-44 present amounts for both full consolidation and pro-rata consolidation, providing a reconciliation of the difference between the two methods, as well as reconciliation from NOI to EBDT to net earnings. 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 the 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 to Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)⁽²⁾

	Three Months Ended October 31,						Nine Months Ended October 31,
	2006			2005			2006			2005
	(in thousands)						(in thousands)
Net earnings	$	45,875		$	12,904		$	106,625		$	55,284
Depreciation and amortization — Real Estate Groups(4)		47,222			46,276			148,807			138,513
Amortization of mortgage procurement costs — Real Estate Groups(4)		2,743			3,026			8,098			8,659
Deferred income tax expense — Real Estate Groups(5)		29,739			12,906			73,128			17,892
Deferred income tax expense — Non Real-Estate Groups:(5)
Gain on disposition of other investments		—			—			—			174
Current income tax expense on non-operating earnings:(5)
Gain on disposition of other investments		—			—			—			60
Gain on disposition included in discontinued operations		17,227			—			17,198			—
Gain on disposition of equity method rental properties		—			220			2,657			8,147
Straight-line rent adjustment(3)		(1,528	)		(1,200	)		(4,559	)		(6,183	)
Provision for decline in real estate, net of minority interest		—			2,120			1,923			4,694
Provision for decline in real estate of equity method rental properties		—			—			400			704
Gain on disposition of equity method rental properties		—			(2,526	)		(7,662	)		(21,023	)
Gain on disposition of other investments		—			—			—			(606	)
Discontinued operations:(1)
Gain on disposition of rental properties		(143,494	)		(9,476	)		(287,220	)		(9,476	)
Minority interest — Gain on disposition		59,616			—			118,009			—
											;
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)(2)	$	57,400		$	64,250		$	177,404		$	196,839

(1)	Pursuant to the definition of a component of an entity of SFAS No. 144, assuming no significant continuing involvement, all earnings of properties and a division which have been sold or held for sale are reported as discontinued operations.
(2)	The Company uses an additional measure, along with net earnings, to report its operating results. This measure, referred to as Earnings Before Depreciation, Amortization and Deferred Taxes (“EBDT”), is not a measure of operating results as defined by generally accepted accounting principles and may not be directly comparable to similarly-titled measures reported by other companies. The Company believes that EBDT provides additional information about its operations, and along with net earnings, is necessary to understand its operating results. EBDT is defined as net earnings excluding the following items: i) gain (loss) on disposition of operating properties, divisions and other investments (net of tax); ii) the adjustment to recognize rental revenues and rental expense using the straight-line method; iii) noncash charges from Forest City Rental Properties Corporation, a wholly-owned subsidiary of Forest City Enterprises, Inc., for depreciation, amortization (including amortization of mortgage procurement costs) and deferred income taxes; iv) provision for decline in real estate (net of tax); v) extraordinary items (net of tax); and vi) cumulative effect of change in accounting principle (net of tax).
(3)	The Company recognizes minimum rents on a straight-line basis over the term of the related lease pursuant to the provision of SFAS No. 13, “Accounting for Leases.” The straight-line rent adjustment is recorded as an increase or decrease to revenue 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.
(4)	The following table provides detail of depreciation and amortization and amortization of mortgage procurement costs. The Company’s Real Estate Groups are owned by Forest City Rental Properties Corporation, a wholly-owned subsidiary engaged in the ownership, development, acquisition and management of real estate projects, including apartment complexes, regional malls and retail centers, hotels, office buildings and mixed-use facilities, as well as large land development projects.

	Depreciation and Amortization												Amortization of Mortgage Procurement Costs
	Three Months Ended						Nine Months Ended						Three Months Ended						Nine Months Ended
	October 31,						October 31,						October 31,						October 31,
	2006			2005			2006			2005			2006			2005			2006			2005
Full Consolidation	$	45,115		$	40,801		$	130,902		$	121,032		$	2,786		$	2,621		$	8,260		$	7,497
Non-Real Estate Groups		(236	)		(198	)		(932	)		(736	)		(46	)		(84	)		(236	)		(286	)
Real Estate Groups Full Consolidation		44,879			40,603			129,970			120,296			2,740			2,537			8,024			7,211
Real Estate Groups related to minority interest		(3,705	)		(4,228	)		(10,714	)		(13,108	)		(315	)		(317	)		(915	)		(982	)
Real Estate Groups Equity Method		5,710			6,294			25,912			19,825			293			303			860			906
Real Estate Groups Discontinued Operations		338			3,607			3,639			11,500			25			503			129			1,524
Real Estate Groups Pro-Rata Consolidation.	$	47,222		$	46,276		$	148,807		$	138,513		$	2,743		$	3,026		$	8,098		$	8,659

31

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Reconciliation of Net Earnings to Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)⁽²⁾(continued)

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

			Three Months Ended October 31,						Nine Months Ended October 31,
			2006			2005			2006			2005
			(in thousands)						(in thousands)
(A	)	Operating earnings
		Current	$	(7,705	)	$	(1,938	)	$	(15,710	)	$	(1,277	)
		Deferred		14,632			9,160			24,711			16,167
				6,927			7,222			9,001			14,890
(B	)	Provision for decline in real estate
		Deferred		—			(819	)		(743	)		(1,814	)
		Deferred-Equity method investment		—			—			(155	)		(272	)
				—			(819	)		(898	)		(2,086	)
(C	)	Gain on disposition of other investments
		Current – Non-Real Estate Groups		—			—			—			60
		Deferred – Non-Real Estate Groups		—			—			—			174
				—			—			—			234
(D	)	Gain on disposition of equity method rental properties
		Current		—			220			2,657			8,147
		Deferred		—			755			305			(24	)
				—			975			2,962			8,123
		Subtotal (A) (B) (C) (D)
		Current		(7,705	)		(1,718	)		(13,053	)		6,930
		Deferred		14,632			9,096			24,118			14,231
		Income tax expense		6,927			7,378			11,065			21,161
(E	)	Discontinued operations – Rental Properties
		Operating earnings
		Current		136			(383	)		(1	)		(4,359	)
		Deferred		648			(278	)		1,098			1,576
				784			(661	)		1,097			(2,783	)
		Gain on disposition of rental properties
		Current		17,227			—			17,198			—
		Deferred		15,183			3,662			48,184			3,662
				32,410			3,662			65,382			3,662
				33,194			3,001			66,479			879
		Grand Total (A) (B) (C) (D) (E)
		Current		9,658			(2,101	)		4,144			2,571
		Deferred		30,463			12,480			73,400			19,469
			$	40,121		$	10,379		$	77,544		$	22,040
		Recap of Grand Total:
		Real Estate Groups
		Current		13,259			1,147			15,704			13,571
		Deferred		29,739			12,906			73,128			17,892
				42,998			14,053			88,832			31,463
		Non-Real Estate Groups
		Current		(3,601	)		(3,248	)		(11,560	)		(11,000	)
		Deferred		724			(426	)		272			1,577
				(2,877	)		(3,674	)		(11,288	)		(9,423	)
		Grand Total	$	40,121		$	10,379		$	77,544		$	22,040

32

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended October 31, 2006(in thousands)

	Commercial Group 2006														Residential Group 2006
						Plus														Plus
	Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	191,193		$	22,296	$	26,744		$	11,818		$	207,459		$	64,531		$	2,489	$	32,144		$	27		$	94,213
Exclude straight-line rent adjustment		(2,892	)		—		—			(13	)		(2,905	)		7			—		—			—			7
Adjusted revenues		188,301			22,296		26,744			11,805			204,554			64,538			2,489		32,144			27			94,220
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		100,347			10,889		15,917			7,747			113,122			42,583			1,304		18,320			93			59,692
Exclude straight-line rent adjustment		(1,149	)		—		—			(220	)		(1,369	)		—			—		—			—			—
Adjusted operating expenses		99,198			10,889		15,917			7,527			111,753			42,583			1,304		18,320			93			59,692
Add interest and other income		1,178			448		168			73			971			1,854			8		353			1			2,200
Add equity in earnings of unconsolidated entities		3,327			—		(3,715	)		—			(388	)		2,844			—		(3,144	)		—			(300	)
Add back equity method depreciation and amortization expense		2,866			—		(2,866	)		—			—			3,137			—		(3,137	)		—			—
Net operating income		96,474			11,855		4,414			4,351			93,384			29,790			1,193		7,896			(65	)		36,428
Interest expense, including early extinguishment of debt		42,519			5,315		4,414			1,689			43,307			14,465			769		7,896			—			21,592
Income tax expense (benefit)		1,354			—		—			162			1,516			(4,191	)		—		—			(26	)		(4,217	)
Minority interest in earnings before depreciation and amortization		6,540			6,540		—			—			—			424			424		—			—			—
Add: EBDT from discontinued operations		2,500			—		—			(2,500	)		—			(39	)		—		—			39			—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	48,561		$	—	$	—		$	—		$	48,561		$	19,053		$	—	$	—		$	—		$	19,053
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	48,561		$	—	$	—		$	—		$	48,561		$	19,053		$	—	$	—		$	—		$	19,053
Depreciation and amortization – Real Estate Groups		(32,314	)		—		—			(338	)		(32,652	)		(14,529	)		—		—			—			(14,529	)
Amortization of mortgage procurement costs – Real Estate Groups		(2,058	)		—		—			(25	)		(2,083	)		(660	)		—		—			—			(660	)
Deferred taxes – Real Estate Groups		(5,966	)		—		—			(648	)		(6,614	)		(4,004	)		—		—			—			(4,004	)
Straight-line rent adjustment		1,743			—		—			(207	)		1,536			(7	)		—		—			—			(7	)
Gain on disposition of rental properties, net of tax		—			—		—			51,468			51,468			—			—		—			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization – Real Estate Groups		(338	)		—		—			338			—			—			—		—			—			—
Amortization of mortgage procurement costs – Real Estate Groups		(25	)		—		—			25			—			—			—		—			—			—
Deferred taxes – Real Estate Groups		(648	)		—		—			648			—			—			—		—			—			—
Straight-line rent adjustment		(207	)		—		—			207			—			—			—		—			—			—
Gain on disposition of rental properties		51,468			—		—			(51,468	)		—			—			—		—			—			—
Net earnings	$	60,216		$	—	$	—		$	—		$	60,216		$	(147	)	$	—	$	—		$	—		$	(147	)

33

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended October 31, 2006(in thousands)(continued)

	Land Development Group 2006												The Nets 2006
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus		Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued		Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)
Revenues from real estate operations	$	22,934		$	1,259	$	5,606	$	—	$	27,281		$	—		$	—	$	581		$	—	$	581
Exclude straight-line rent adjustment		1			—		—		—		1			—			—		—			—		—
Adjusted revenues		22,935			1,259		5,606		—		27,282			—			—		581			—		581
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		16,675			798		7,575		—		23,452			—			—		1,296			—		1,296
Exclude straight-line rent adjustment		—			—		—		—		—			—			—		—			—		—
Adjusted operating expenses		16,675			798		7,575		—		23,452			—			—		1,296			—		1,296
Add interest and other income		3,749			346		53		—		3,456			—			—		(132	)		—		(132	)
Add equity in earnings of unconsolidated entities		4,293			—		2,087		—		6,380			(1,342	)		—		1,326			—		(16	)
Add back equity method depreciation and amortization expense		—			—		—		—		—			—			—		—			—		—
Net operating income		14,302			807		171		—		13,666			(1,342	)		—		479			—		(863	)
Interest expense, including early extinguishment of debt		2,035			163		171		—		2,043			—			—		479			—		479
Income tax expense (benefit)		3,746			—		—		—		3,746			(612	)		—		—			—		(612	)
Minority interest in earnings before depreciation and amortization		644			644		—		—		—			—			—		—			—		—
Add: EBDT from discontinued operations		—			—		—		—		—			—			—		—			—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	7,877		$	—	$	—	$	—	$	7,877		$	(730	)	$	—	$	—		$	—	$	(730	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	7,877		$	—	$	—	$	—	$	7,877		$	(730	)	$	—	$	—		$	—	$	(730	)
Depreciation and amortization – Real Estate Groups		(41	)		—		—		—		(41	)		—			—		—			—		—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—		—			—			—		—			—		—
Deferred taxes – Real Estate Groups		(792	)		—		—		—		(792	)		—			—		—			—		—
Straight-line rent adjustment		(1	)		—		—		—		(1	)		—			—		—			—		—
Gain on disposition of rental properties, net of tax		—			—		—		—		—			—			—		—			—		—
Discontinued operations, net of tax and minority interest:
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	$	7,043		$	—	$	—	$	—	$	7,043		$	(730	)	$	—	$	—		$	—	$	(730	)

34

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended October 31, 2006(in thousands)(continued)

	Corporate Activities 2006												Total 2006
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	—		$	—	$	—	$	—	$	—		$	278,658		$	26,044	$	65,075		$	11,845		$	329,534
Exclude straight-line rent adjustment		—			—		—		—		—			(2,884	)		—		—			(13	)		(2,897	)
Adjusted revenues		—			—		—		—		—			275,774			26,044		65,075			11,832			326,637
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		12,788			—		—		—		12,788			172,393			12,991		43,108			7,840			210,350
Exclude straight-line rent adjustment		—			—		—		—		—			(1,149	)		—		—			(220	)		(1,369	)
Adjusted operating expenses		12,788			—		—		—		12,788			171,244			12,991		43,108			7,620			208,981
Add interest and other income		324			—		—		—		324			7,105			802		442			74			6,819
Add equity in earnings of unconsolidated entities		—			—		—		—		—			9,122			—		(3,446	)		—			5,676
Add back equity method depreciation and amortization expense		—			—		—		—		—			6,003			—		(6,003	)		—			—
Net operating income		(12,464	)		—		—		—		(12,464	)		126,760			13,855		12,960			4,286			130,151
Interest expense, including early extinguishment of debt		12,175			—		—		—		12,175			71,194			6,247		12,960			1,689			79,596
Income tax expense (benefit)		(7,278	)		—		—		—		(7,278	)		(6,981	)		—		—			136			(6,845	)
Minority interest in earnings before depreciation and amortization		—			—		—		—		—			7,608			7,608		—			—			—
Add: EBDT from discontinued operations		—			—		—		—		—			2,461			—		—			(2,461	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(17,361	)	$	—	$	—	$	—	$	(17,361	)	$	57,400		$	—	$	—		$	—		$	57,400
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(17,361	)	$	—	$	—	$	—	$	(17,361	)	$	57,400		$	—	$	—		$	—		$	57,400
Depreciation and amortization – Real Estate Groups		—			—		—		—		—			(46,884	)		—		—			(338	)		(47,222	)
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—		—			(2,718	)		—		—			(25	)		(2,743	)
Deferred taxes – Real Estate Groups		(3,146	)		—		—		—		(3,146	)		(13,908	)		—		—			(648	)		(14,556	)
Straight-line rent adjustment		—			—		—		—		—			1,735			—		—			(207	)		1,528
Gain on disposition of rental properties, net of tax		—			—		—		—		—			—			—		—			51,468			51,468
Discontinued operations, net of tax and minority interest:
Depreciation and amortization – Real Estate Groups		—			—		—		—		—			(338	)		—		—			338			—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—		—			(25	)		—		—			25			—
Deferred taxes – Real Estate Groups		—			—		—		—		—			(648	)		—		—			648			—
Straight-line rent adjustment		—			—		—		—		—			(207	)		—		—			207			—
Gain on disposition of rental properties		—			—		—		—		—			51,468			—		—			(51,468	)		—
Net earnings	$	(20,507	)	$	—	$	—	$	—	$	(20,507	)	$	45,875		$	—	$	—		$	—		$	45,875

35

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Nine Months Ended October 31, 2006(in thousands)

	Commercial Group 2006														Residential Group 2006
						Plus														Plus
	Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	568,674		$	66,456	$	74,340		$	42,198		$	618,756		$	186,892		$	7,047	$	94,260		$	927		$	275,032
Exclude straight-line rent adjustment		(8,945	)		—		—			(44	)		(8,989	)		(12	)		—		—			—			(12	)
Adjusted revenues		559,729			66,456		74,340			42,154			609,767			186,880			7,047		94,260			927			275,020
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		292,226			32,014		43,506			30,770			334,488			123,239			4,204		54,233			762			174,030
Exclude straight-line rent adjustment		(3,502	)		—		—			(938	)		(4,440	)		—			—		—			—			—
Adjusted operating expenses		288,724			32,014		43,506			29,832			330,048			123,239			4,204		54,233			762			174,030
Add interest and other income		4,437			1,572		12			606			3,483			13,210			24		674			8			13,868
Add equity in earnings of unconsolidated entities		14,747			—		(15,913	)		—			(1,166	)		(2,332	)		—		1,157			—			(1,175	)
Remove gain on disposition of equity method rental properties		(7,662	)		—		7,662			—			—			—			—		—			—			—
Add back provision for decline in real estate of equity method rental properties		400			—		(400	)		—			—			—			—		—			—			—
Add back equity method depreciation and amortization expense		8,468			—		(8,468	)		—			—			18,304			—		(18,304	)		—			—
Net operating income		291,395			36,014		13,727			12,928			282,036			92,823			2,867		23,554			173			113,683
Interest expense, including early extinguishment of debt		131,419			17,140		13,727			5,340			133,346			42,546			2,286		23,554			262			64,076
Income tax expense (benefit)		6,122			—		—			222			6,344			(6,915	)		—		—			(223	)		(7,138	)
Minority interest in earnings before depreciation and amortization		18,874			18,874		—			—			—			581			581		—			—			—
Add: EBDT from discontinued operations		7,366			—		—			(7,366	)		—			134			—		—			(134	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	142,346		$	—	$	—		$	—		$	142,346		$	56,745		$	—	$	—		$	—		$	56,745
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	142,346		$	—	$	—		$	—		$	142,346		$	56,745		$	—	$	—		$	—		$	56,745
Depreciation and amortization – Real Estate Groups		(92,158	)		—		—			(3,497	)		(95,655	)		(52,895	)		—		—			(142	)		(53,037	)
Amortization of mortgage procurement costs – Real Estate Groups		(5,775	)		—		—			(125	)		(5,900	)		(2,194	)		—		—			(4	)		(2,198	)
Deferred taxes – Real Estate Groups		(17,475	)		—		—			(966	)		(18,441	)		(5,001	)		—		—			(132	)		(5,133	)
Straight-line rent adjustment		5,443			—		—			(894	)		4,549			12			—		—			—			12
Gain on disposition of rental properties and other investments, net of tax		—			—		4,700			99,323			104,023			—			—		—			4,506			4,506
Provision for decline in real estate, net of tax and minority interest		(1,180	)		—		(245	)		—			(1,425	)		—			—		—			—			—
Gain on disposition of equity method rental properties, net of tax		4,700			—		(4,700	)		—			—			—			—		—			—			—
Provision for decline in real estate of equity method rental properties, net of tax		(245	)		—		245			—			—			—			—		—			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization – Real Estate Groups		(3,497	)		—		—			3,497			—			(142	)		—		—			142			—
Amortization of mortgage procurement costs – Real Estate Groups		(125	)		—		—			125			—			(4	)		—		—			4			—
Deferred taxes – Real Estate Groups		(966	)		—		—			966			—			(132	)		—		—			132			—
Straight-line rent adjustment		(894	)		—		—			894			—			—			—		—			—			—
Gain on disposition of rental properties		99,323			—		—			(99,323	)		—			4,506			—		—			(4,506	)		—
Net earnings	$	129,497		$	—	$	—		$	—		$	129,497		$	895		$	—	$	—		$	—		$	895

36

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Nine Months Ended October 31, 2006(in thousands)(continued)

	Land Development Group 2006													The Nets 2006
						Plus													Plus
	Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated			Plus		Pro-Rata
	Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued		Consolidation
	(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)
Revenues from real estate operations	$	65,844		$	4,109	$	22,447		$	—	$	84,182		$	—		$	—	$	19,136		$	—	$	19,136
Exclude straight-line rent adjustment		2			—		—			—		2			—			—		—			—		—
Adjusted revenues		65,846			4,109		22,447			—		84,184			—			—		19,136			—		19,136
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		42,408			2,400		20,499			—		60,507			—			—		30,328			—		30,328
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—			—		—
Adjusted operating expenses		42,408			2,400		20,499			—		60,507			—			—		30,328			—		30,328
Add interest and other income		11,361			1,077		134			—		10,418			—			—		(20	)		—		(20	)
Add equity in earnings of unconsolidated entities		17,480			—		(1,422	)		—		16,058			(14,084	)		—		14,023			—		(61	)
Remove gain on disposition of equity method rental properties		—			—		—			—		—			—			—		—			—		—
Add back provision for decline in real estate of equity method rental properties		—			—		—			—		—			—			—		—			—		—
Add back equity method depreciation and amortization expense		—			—		—			—		—			—			—		—			—		—
Net operating income		52,279			2,786		660			—		50,153			(14,084	)		—		2,811			—		(11,273	)
Interest expense, including early extinguishment of debt		6,507			481		660			—		6,686			—			—		2,811			—		2,811
Income tax expense (benefit)		18,159			—		—			—		18,159			(5,778	)		—		—			—		(5,778	)
Minority interest in earnings before depreciation and amortization		2,305			2,305		—			—		—			—			—		—			—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—			—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	25,308		$	—	$	—		$	—	$	25,308		$	(8,306	)	$	—	$	—		$	—	$	(8,306	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	25,308		$	—	$	—		$	—	$	25,308		$	(8,306	)	$	—	$	—		$	—	$	(8,306	)
Depreciation and amortization – Real Estate Groups		(115	)		—		—			—		(115	)		—			—		—			—		—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—			—		—			—			—		—			—		—
Deferred taxes – Real Estate Groups		1,277			—		—			—		1,277			—			—		—			—		—
Straight-line rent adjustment		(2	)		—		—			—		(2	)		—			—		—			—		—
Gain on disposition of rental properties and other investments, net of tax		—			—		—			—		—			—			—		—			—		—
Provision for decline in real estate, net of tax and minority interest		—			—		—			—		—			—			—		—			—		—
Gain on disposition of equity method rental properties, net of tax		—			—		—			—		—			—			—		—			—		—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—			—		—			—			—		—			—		—
Discontinued operations, net of tax and minority interest:
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	$	26,468		$	—	$	—		$	—	$	26,468		$	(8,306	)	$	—	$	—		$	—	$	(8,306	)

37

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Nine Months Ended October 31, 2006(in thousands)(continued)

	Corporate Activities 2006												Total 2006
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	—		$	—	$	—	$	—	$	—		$	821,410		$	77,612	$	210,183		$	43,125		$	997,106
Exclude straight-line rent adjustment		—			—		—		—		—			(8,955	)		—		—			(44	)		(8,999	)
Adjusted revenues		—			—		—		—		—			812,455			77,612		210,183			43,081			988,107
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		31,738			—		—		—		31,738			489,611			38,618		148,566			31,532			631,091
Exclude straight-line rent adjustment		—			—		—		—		—			(3,502	)		—		—			(938	)		(4,440	)
Adjusted operating expenses		31,738			—		—		—		31,738			486,109			38,618		148,566			30,594			626,651
Add interest and other income		978			—		—		—		978			29,986			2,673		800			614			28,727
Add equity in earnings of unconsolidated entities		—			—		—		—		—			15,811			—		(2,155	)		—			13,656
Remove gain on disposition of equity method rental properties		—			—		—		—		—			(7,662	)		—		7,662			—			—
Add back provision for decline in real estate of equity method rental properties		—			—		—		—		—			400			—		(400	)		—			—
Add back equity method depreciation and amortization expense		—			—		—		—		—			26,772			—		(26,772	)		—			—
Net operating income		(30,760	)		—		—		—		(30,760	)		391,653			41,667		40,752			13,101			403,839
Interest expense, including early extinguishment of debt		34,955			—		—		—		34,955			215,427			19,907		40,752			5,602			241,874
Income tax expense (benefit)		(27,026	)		—		—		—		(27,026	)		(15,438	)		—		—			(1	)		(15,439	)
Minority interest in earnings before depreciation and amortization		—			—		—		—		—			21,760			21,760		—			—			—
Add: EBDT from discontinued operations		—			—		—		—		—			7,500			—		—			(7,500	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(38,689	)	$	—	$	—	$	—	$	(38,689	)	$	177,404		$	—	$	—		$	—		$	177,404
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(38,689	)	$	—	$	—	$	—	$	(38,689	)	$	177,404		$	—	$	—		$	—		$	177,404
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(145,168	)		—		—			(3,639	)		(148,807	)
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(7,969	)		—		—			(129	)		(8,098	)
Deferred taxes — Real Estate Groups		(3,240	)		—		—		—		(3,240	)		(24,439	)		—		—			(1,098	)		(25,537	)
Straight-line rent adjustment		—			—		—		—		—			5,453			—		—			(894	)		4,559
Gain on disposition of rental properties and other investments, net of tax		—			—		—		—		—			—			—		4,700			103,829			108,529
Provision for decline in real estate, net of tax and minority interest		—			—		—		—		—			(1,180	)		—		(245	)		—			(1,425	)
Gain on disposition of equity method rental properties, net of tax		—			—		—		—		—			4,700			—		(4,700	)		—			—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—		—		—			(245	)		—		245			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(3,639	)		—		—			3,639			—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(129	)		—		—			129			—
Deferred taxes — Real Estate Groups		—			—		—		—		—			(1,098	)		—		—			1,098			—
Straight-line rent adjustment		—			—		—		—		—			(894	)		—		—			894			—
Gain on disposition of rental properties		—			—		—		—		—			103,829			—		—			(103,829	)		—
Net earnings	$	(41,929	)	$	—	$	—	$	—	$	(41,929	)	$	106,625		$	—	$	—		$	���		$	106,625

38

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended October 31, 2005(in thousands)

	Commercial Group 2005														Residential Group 2005
						Plus															Plus
	Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	189,993		$	21,196	$	23,440		$	23,865		$	216,102		$	53,204		$	3,685		$	30,672		$	3,017		$	83,208
Exclude straight-line rent adjustment		(3,171	)		—		—			(31	)		(3,202	)		(43	)		—			—			—			(43	)
Adjusted revenues		186,822			21,196		23,440			23,834			212,900			53,161			3,685			30,672			3,017			83,165
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		97,723			10,198		13,659			16,836			118,020			35,832			2,423			17,546			1,682			52,637
Exclude straight-line rent adjustment		(1,481	)		—		—			(564	)		(2,045	)		—			—			—			—			—
Adjusted operating expenses		96,242			10,198		13,659			16,272			115,975			35,832			2,423			17,546			1,682			52,637
Add interest and other income		994			260		(252	)		39			521			858			(12	)		218			119			1,207
Add equity in earnings of unconsolidated entities		2,234			—		(2,394	)		—			(160	)		4,397			—			(4,593	)		—			(196	)
Remove gain on disposition of equity method rental properties		—			—		—			—			—			(2,526	)		—			2,526			—			—
Add back equity method depreciation and amortization expense		2,717			—		(2,717	)		—			—			3,880			—			(3,880	)		—			—
Net operating income		96,525			11,258		4,418			7,601			97,286			23,938			1,250			7,397			1,454			31,539
Interest expense, including early extinguishment of debt		40,126			5,604		4,418			3,829			42,769			12,752			1,753			7,397			2,302			20,698
Income tax expense (benefit)		1,576			—		—			247			1,823			(1,234	)		—			—			(630	)		(1,864	)
Minority interest in earnings before depreciation and amortization		5,654			5,654		—			—			—			(503	)		(503	)		—			—			—
Add: EBDT from discontinued operations		3,525			—		—			(3,525	)		—			(218	)		—			—			218			—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	52,694		$	—	$	—		$	—		$	52,694		$	12,705		$	—		$	—		$	—		$	12,705
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	52,694		$	—	$	—		$	—		$	52,694		$	12,705		$	—		$	—		$	—		$	12,705
Depreciation and amortization — Real Estate Groups		(29,394	)		—		—			(3,001	)		(32,395	)		(13,234	)		—			—			(606	)		(13,840	)
Amortization of mortgage procurement costs — Real Estate Groups		(1,935	)		—		—			(474	)		(2,409	)		(588	)		—			—			(29	)		(617	)
Deferred taxes — Real Estate Groups		(6,723	)		—		—			335			(6,388	)		(27	)		—			—			(57	)		(84	)
Straight-line rent adjustment		1,690			—		—			(533	)		1,157			43			—			—			—			43
Gain on disposition of rental properties, net of tax		—			—		—			—			—			—			—			1,551			5,814			7,365
Provision for decline in real estate, net of tax and minority interest		—			—		—			—			—			(1,301	)		—			—			—			(1,301	)
Gain on disposition of equity method rental properties, net of tax		—			—		—			—			—			1,551			—			(1,551	)		—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		(3,001	)		—		—			3,001			—			(606	)		—			—			606			—
Amortization of mortgage procurement costs — Real Estate Groups		(474	)		—		—			474			—			(29	)		—			—			29			—
Deferred taxes — Real Estate Groups		335			—		—			(335	)		—			(57	)		—			—			57			—
Straight-line rent adjustment		(533	)		—		—			533			—			—			—			—			—			—
Gain on disposition of rental properties		—			—		—			—			—			5,814			—			—			(5,814	)		—
Net earnings	$	12,659		$	—	$	—		$	—		$	12,659		$	4,271		$	—		$	—		$	—		$	4,271

39

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended October 31, 2005(in thousands)(continued)

	Land Development Group 2005													The Nets 2005
						Plus													Plus
	Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
	Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
	(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations	$	17,767		$	1,404	$	25,005		$	—	$	41,368		$	—		$	—	$	2,527	$	—	$	2,527
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted revenues		17,767			1,404		25,005			—		41,368			—			—		2,527		—		2,527
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		11,392			697		13,580			—		24,275			—			—		5,830		—		5,830
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses		11,392			697		13,580			—		24,275			—			—		5,830		—		5,830
Add interest and other income		2,685			254		40			—		2,471			—			—		52		—		52
Add equity in earnings of unconsolidated entities		13,263			—		(11,513	)		—		1,750			(3,781	)		—		3,767		—		(14	)
Remove gain on disposition of equity method rental properties		—			—		—			—		—			—			—		—		—		—
Add back equity method depreciation and amortization expense		—			—		—			—		—			—			—		—		—		—
Net operating income		22,323			961		(48	)		—		21,314			(3,781	)		—		516		—		(3,265	)
Interest expense, including early extinguishment of debt		1,492			56		(48	)		—		1,388			—			—		516		—		516
Income tax expense (benefit)		5,446			—		—			—		5,446			(1,461	)		—		—		—		(1,461	)
Minority interest in earnings before depreciation and amortization		905			905		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	14,480		$	—	$	—		$	—	$	14,480		$	(2,320	)	$	—	$	—	$	—	$	(2,320	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	14,480		$	—	$	—		$	—	$	14,480		$	(2,320	)	$	—	$	—	$	—	$	(2,320	)
Depreciation and amortization — Real Estate Groups		(41	)		—		—			—		(41	)		—			—		—		—		—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes — Real Estate Groups		(2,593	)		—		—			—		(2,593	)		—			—		—		—		—
Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Gain on disposition of rental properties and other investments, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate, net of tax and minority interest		—			—		—			—		—			—			—		—		—		—
Gain on disposition of equity method rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Discontinued operations, net of tax and minority interest:
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	$	11,846		$	—	$	—		$	—	$	11,846		$	(2,320	)	$	—	$	—	$	—	$	(2,320	)

40

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended October 31, 2005(in thousands)(continued)

	Corporate Activities 2005												Total 2005
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	—		$	—	$	—	$	—	$	—		$	260,964		$	26,285	$	81,644		$	26,882		$	343,205
Exclude straight-line rent adjustment		—			—		—		—		—			(3,214	)		—		—			(31	)		(3,245	)
Adjusted revenues		—			—		—		—		—			257,750			26,285		81,644			26,851			339,960
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		9,871			—		—		—		9,871			154,818			13,318		50,615			18,518			210,633
Exclude straight-line rent adjustment		—			—		—		—		—			(1,481	)		—		—			(564	)		(2,045	)
Adjusted operating expenses		9,871			—		—		—		9,871			153,337			13,318		50,615			17,954			208,588
Add interest and other income		451			—		—		—		451			4,988			502		58			158			4,702
Add equity in earnings of unconsolidated entities		—			—		—		—		—			16,113			—		(14,733	)		—			1,380
Remove gain on disposition of equity method rental properties		—			—		—		—		—			(2,526	)		—		2,526			—			—
Add back equity method depreciation and amortization expense		—			—		—		—		—			6,597			—		(6,597	)		—			—
Net operating income		(9,420	)		—		—		—		(9,420	)		129,585			13,469		12,283			9,055			137,454
Interest expense, including early extinguishment of debt		10,580			—		—		—		10,580			64,950			7,413		12,283			6,131			75,951
Income tax expense (benefit)		(6,691	)		—		—		—		(6,691	)		(2,364	)		—		—			(383	)		(2,747	)
Minority interest in earnings before depreciation and amortization		—			—		—		—		—			6,056			6,056		—			—			—
Add: EBDT from discontinued operations		—			—		—		—		—			3,307			—		—			(3,307	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(13,309	)	$	—	$	—	$	—	$	(13,309	)	$	64,250		$	—	$	—		$	—		$	64,250
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(13,309	)	$	—	$	—	$	—	$	(13,309	)	$	64,250		$	—	$	—		$	—		$	64,250
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(42,669	)		—		—			(3,607	)		(46,276	)
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(2,523	)		—		—			(503	)		(3,026	)
Deferred taxes — Real Estate Groups		(243	)		—		—		—		(243	)		(9,586	)		—		—			278			(9,308	)
Straight-line rent adjustment		—			—		—		—		—			1,733			—		—			(533	)		1,200
Gain on disposition of rental properties and other investments, net of tax		—			—		—		—		—			—			—		1,551			5,814			7,365
Provision for decline in real estate, net of tax and minority interest		—			—		—		—		—			(1,301	)		—		—			—			(1,301	)
Gain on disposition of equity method rental properties, net of tax		—			—		—		—		—			1,551			—		(1,551	)		—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(3,607	)		—		—			3,607			—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(503	)		—		—			503			—
Deferred taxes — Real Estate Groups		—			—		—		—		—			278			—		—			(278	)		—
Straight-line rent adjustment		—			—		—		—		—			(533	)		—		—			533			—
Gain on disposition of rental properties		—			—		—		—		—			5,814			—		—			(5,814	)		—
Net earnings	$	(13,552	)	$	—	$	—	$	—	$	(13,552	)	$	12,904		$	—	$	—		$	—		$	12,904

41

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Nine Months Ended October 31, 2005(in thousands)

	Commercial Group 2005														Residential Group 2005
						Plus															Plus
	Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	595,292		$	68,848	$	73,309		$	66,667		$	666,420		$	154,737		$	11,125		$	91,247		$	11,585		$	246,444
Exclude straight-line rent adjustment		(11,866	)		—		—			(94	)		(11,960	)		(29	)		—			—			—			(29	)
Adjusted revenues		583,426			68,848		73,309			66,573			654,460			154,708			11,125			91,247			11,585			246,415
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		300,854			31,401		41,023			50,280			360,756			103,237			7,528			51,128			6,017			152,854
Exclude straight-line rent adjustment		(4,045	)		—		—			(1,761	)		(5,806	)		—			—			—			—			—
Adjusted operating expenses		296,809			31,401		41,023			48,519			354,950			103,237			7,528			51,128			6,017			152,854
Add interest and other income		3,113			522		(710	)		148			2,029			2,447			13			937			218			3,589
Add equity in earnings of unconsolidated entities		22,337			—		(22,105	)		—			232			13,301			—			(13,577	)		—			(276	)
Remove gain on disposition of equity method rental properties		(13,145	)		—		13,145			—			—			(7,878	)		—			7,878			—			—
Add back provision for decline in real estate of equity method rental properties		704			—		(704	)		—			—			—			—			—			—			—
Add back equity method depreciation and amortization expense		8,466			—		(8,466	)		—			—			12,265			—			(12,265	)		—			—
Net operating income		308,092			37,969		13,446			18,202			301,771			71,606			3,610			23,092			5,786			96,874
Interest expense, including early extinguishment of debt		126,033			17,946		13,446			10,920			132,453			34,872			3,930			23,092			5,584			59,618
Income tax expense (benefit)		12,333			—		—			(3,250	)		9,083			(5,816	)		—			—			(1,109	)		(6,925	)
Minority interest in earnings before depreciation and amortization		20,023			20,023		—			—			—			(320	)		(320	)		—			—			—
Add: EBDT from discontinued operations		10,532			—		—			(10,532	)		—			1,311			—			—			(1,311	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	160,235		$	—	$	—		$	—		$	160,235		$	44,181		$	—		$	—		$	—		$	44,181
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	160,235		$	—	$	—		$	—		$	160,235		$	44,181		$	—		$	—		$	—		$	44,181
Depreciation and amortization — Real Estate Groups		(88,632	)		—		—			(8,752	)		(97,384	)		(38,235	)		—			—			(2,748	)		(40,983	)
Amortization of mortgage procurement costs — Real Estate Groups		(5,271	)		—		—			(1,424	)		(6,695	)		(1,864	)		—			—			(100	)		(1,964	)
Deferred taxes — Real Estate Groups		(10,334	)		—		—			(1,489	)		(11,823	)		(734	)		—			—			(87	)		(821	)
Straight-line rent adjustment		7,821			—		—			(1,667	)		6,154			29			—			—			—			29
Gain on disposition of rental properties and other investments, net of tax		—			—		8,064			—			8,064			—			—			4,836			5,814			10,650
Provision for decline in real estate, net of tax and minority interest		(920	)		—		(432	)		—			(1,352	)		(1,960	)		—			—			—			(1,960	)
Gain on disposition of equity method rental properties, net of tax		8,064			—		(8,064	)		—			—			4,836			—			(4,836	)		—			—
Provision for decline in real estate of equity method rental properties, net of tax		(432	)		—		432			—			—			—			—			—			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		(8,752	)		—		—			8,752			—			(2,748	)		—			—			2,748			—
Amortization of mortgage procurement costs — Real Estate Groups		(1,424	)		—		—			1,424			—			(100	)		—			—			100			—
Deferred taxes — Real Estate Groups		(1,489	)		—		—			1,489			—			(87	)		—			—			87			—
Straight-line rent adjustment		(1,667	)		—		—			1,667			—			—			—			—			—			—
Gain on disposition of rental properties		—			—		—			—			—			5,814			—			—			(5,814	)		—
Net earnings	$	57,199		$	—	$	—		$	—		$	57,199		$	9,132		$	—		$	—		$	—		$	9,132

42

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Nine Months Ended October 31, 2005(in thousands)(continued)

	Land Development Group 2005													The Nets 2005
						Plus													Plus
	Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
	Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
	(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations	$	77,241		$	5,053	$	47,335		$	—	$	119,523		$	—		$	—	$	19,799	$	—	$	19,799
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted revenues		77,241			5,053		47,335			—		119,523			—			—		19,799		—		19,799
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		46,313			2,587		25,866			—		69,592			—			—		34,942		—		34,942
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses		46,313			2,587		25,866			—		69,592			—			—		34,942		—		34,942
Add interest and other income		11,502			1,110		111			—		10,503			—			—		167		—		167
Add equity in earnings of unconsolidated entities		27,388			—		(21,389	)		—		5,999			(16,997	)				16,968		—		(29	)
Add back provision for decline in real estate of equity method rental properties		—			—		—			—		—			—			—		—		—		—
Remove gain on disposition of equity method rental properties		—			—		—			—		—			—			—		—		—		—
Add back equity method depreciation and amortization expense		—			—		—			—		—			—			—		—		—		—
Net operating income		69,818			3,576		191			—		66,433			(16,997	)		—		1,992		—		(15,005	)
Interest expense, including early extinguishment of debt		5,627			303		191			—		5,515			—			—		1,992		—		1,992
Income tax expense (benefit)		21,739			—		—			—		21,739			(6,569	)		—		—		—		(6,569	)
Minority interest in earnings before depreciation and amortization		3,273			3,273		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	39,179		$	—	$	—		$	—	$	39,179		$	(10,428	)	$	—	$	—	$	—	$	(10,428	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	39,179		$	—	$	—		$	—	$	39,179		$	(10,428	)	$	—	$	—	$	—	$	(10,428	)
Depreciation and amortization — Real Estate Groups		(146	)		—		—			—		(146	)		—			—		—		—		—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes — Real Estate Groups		(1,633	)		—		—			—		(1,633	)		—			—		—		—		—
Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Gain on disposition of rental properties and other investments, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate, net of tax and minority interest		—			—		—			—		—			—			—		—		—		—
Gain on disposition of equity method rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Discontinued operations, net of tax and minority interest:
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	$	37,400		$	—	$	—		$	—	$	37,400		$	(10,428	)	$	—	$	—	$	—	$	(10,428	)

43

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Nine Months Ended October 31, 2005(in thousands)(continued)

	Corporate Activities 2005												Total 2005
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	—		$	—	$	—	$	—	$	—		$	827,270		$	85,026	$	231,690		$	78,252		$	1,052,186
Exclude straight-line rent adjustment		—			—		—		—		—			(11,895	)		—		—			(94	)		(11,989	)
Adjusted revenues		—			—		—		—		—			815,375			85,026		231,690			78,158			1,040,197
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		27,146			—		—		—		27,146			477,550			41,516		152,959			56,297			645,290
Exclude straight-line rent adjustment		—			—		—		—		—			(4,045	)		—		—			(1,761	)		(5,806	)
Adjusted operating expenses		27,146			—		—		—		27,146			473,505			41,516		152,959			54,536			639,484
Add interest and other income		1,423			—		—		—		1,423			18,485			1,645		505			366			17,711
Add equity in earnings of unconsolidated entities		—			—		—		—		—			46,029			—		(40,103	)		—			5,926
Remove gain on disposition of equity method rental properties		—			—		—		—		—			(21,023	)		—		21,023			—			—
Add back provision for decline in real estate of equity method rental properties		—			—		—		—		—			704			—		(704	)		—			—
Add back equity method depreciation and amortization expense		—			—		—		—		—			20,731			—		(20,731	)		—			—
Net operating income		(25,723	)		—		—		—		(25,723	)		406,796			45,155		38,721			23,988			424,350
Interest expense, including early extinguishment of debt		32,166			—		—		—		32,166			198,698			22,179		38,721			16,504			231,744
Income tax expense (benefit)		(21,561	)		—		—		—		(21,561	)		126			—		—			(4,359	)		(4,233	)
Minority interest in earnings before depreciation and amortization		—			—		—		—		—			22,976			22,976		—			—			—
Add: EBDT from discontinued operations		—			—		—		—		—			11,843			—					(11,843	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(36,328	)	$	—	$	—	$	—	$	(36,328	)	$	196,839		$	—	$	—		$	—		$	196,839
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(36,328	)	$	—	$	—	$	—	$	(36,328	)	$	196,839		$	—	$	—		$	—		$	196,839
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(127,013	)		—		—			(11,500	)		(138,513	)
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(7,135	)		—		—			(1,524	)		(8,659	)
Deferred taxes — Real Estate Groups		(2,063	)		—		—		—		(2,063	)		(14,764	)		—		—			(1,576	)		(16,340	)
Straight-line rent adjustment		—			—		—		—		—			7,850			—		—			(1,667	)		6,183
Gain on disposition of rental properties and other investments, net of tax		372			—		—		—		372			372			—		12,900			5,814			19,086
Provision for decline in real estate, net of tax and minority interest		—			—		—		—		—			(2,880	)		—		(432	)		—			(3,312	)
Gain on disposition of equity method rental properties, net of tax		—			—		—		—		—			12,900			—		(12,900	)		—			—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—		—		—			(432	)		—		432			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(11,500	)		—		—			11,500			—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(1,524	)		—		—			1,524			—
Deferred taxes — Real Estate Groups		—			—		—		—		—			(1,576	)		—		—			1,576			—
Straight-line rent adjustment		—			—		—		—		—			(1,667	)		—		—			1,667			—
Gain on disposition of rental properties		—			—		—		—		—			5,814			—		—			(5,814	)		—
Net earnings	$	(38,019	)	$	—	$	—	$	—	$	(38,019	)	$	55,284		$	—	$	—		$	—		$	55,284

44