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

Forest City Enterprises, Inc.

Supplemental Package

Years Ended January 31, 2007 and 2006

Forest City Enterprises, Inc. and Subsidiaries
Years Ended January 31, 2007 and 2006
Supplemental Package

NYSE: FCEA, FCEB

Index

Corporate Overview	2
Supplemental Operating Information
Occupancy Data	5
Comparable Net Operating Income (NOI)	6
Comparable NOI Detail	7-8
Reconciliation of NOI to Net Earnings	9-10
Lease Expirations Schedules	11-12
Schedules of Significant Tenants	13-14
Development Pipeline	15-17
Supplemental Financial Information
Mortgage Financings	18
Scheduled Maturities Table	19-20
Forest City Enterprises, Inc.
Consolidated Balance Sheet Information	21-22
Consolidated Earnings Information	23-26
Investments in and Advances to Affiliates	27-28
Real Estate and Related Nonrecourse Mortgage Debt	29-30
Forest City Rental Properties Corporation
Consolidated Balance Sheet Information	31-32
Consolidated Earnings Information	33-34
Real Estate Activity	35-38
Results of Operations Summary	39-41
Reconciliation of Net Earnings to EBDT	42-43
Summary of EBDT	44-55
Property Listing	56-66

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, 2007 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 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 $9.0 billion of assets in 26 states and the District of Columbia at January 31, 2007. 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 75 percent of the cost of our real estate portfolio at January 31, 2007. 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-K for the year ended January 31, 2007. 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 on pages 56-66.

2

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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 41-43 for additional discussion of EBDT as well as a reconciliation of EBDT to net earnings.)

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 fiscal years ended January 31, 2007 and 2006.

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 41), 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 7-10 of this document. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 44-55.

3

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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, 2007 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.

4

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Occupancy Data — January 31, 2007 and 2006

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

				Average						Average
	Occupancy			Occupancy			Occupancy			Occupancy
	As of			Year-to-Date			As of			Year-to-Date
	January 31, 2007			January 31, 2007			January 31, 2006			January 31, 2006
Retail
Comparable		94.6	%		94.6	%		94.7	%		93.5	%
Total		93.6	%		93.8	%		94.0	%		93.1	%
Office
Comparable		93.4	%		93.0	%		92.5	%		92.8	%
Total		90.1	%		91.3	%		92.6	%		92.9	%
Residential
Comparable		93.9	%		95.1	%		94.4	%		93.4	%
Total		91.4	%		91.4	%		91.6	%		89.2	%
Hotels
Comparable and Total(1)					69.1	%					67.2	%
Comparable ADR and Total ADR(1)				$	143.47					$	133.87

Retail and office occupancy as of January 31, 2007 and 2006 is based on square feet leased at the end of the fiscal quarter. Average Occupancy Year-to-Date as of January 31, 2007 and 2006 for retail and office is calculated by dividing the sum of leased square feet at the beginning and end of the period by two. Residential occupancy as of January 31, 2007 and 2006 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 year ended January 31, 2007 and 2006.

⁽¹⁾ Total Hotel Average Occupancy Year-to-Date and Total ADR for January 31, 2006 have been restated to exclude theHilton Times
     SquareandEmbassy Suites Hotelwhich were sold during the year ended January 31, 2007.

5

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 year ended January 31, 2007 and 2006. The following schedules on pages 7-8 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 9-10. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 44-55.

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

	Three Months Ended						Year Ended
	January 31, 2007						January 31, 2007
	Full			Pro-Rata			Full			Pro-Rata
	Consolidation			Consolidation			Consolidation			Consolidation
Retail		8.5	%		4.0	%		6.6	%		4.9	%
Office		0.7	%		2.4	%		2.3	%		2.5	%
Hotel		62.4	%		52.0	%		22.0	%		19.3	%
Residential		8.4	%		4.7	%		8.4	%		6.5	%
Total		6.5	%		4.7	%		5.7	%		4.9	%

6

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income(dollars in thousands)
	Three Months Ended January 31, 2007													Three Months Ended January 31, 2006														% 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	$	52,403		$	5,684	$	806	$	—		$	47,525		$	48,307		$	5,556		$	2,943		$	—	$	45,694			8.5	%		4.0	%
Total		63,517			2,933		4,273		186			65,043			52,036			5,730			3,007			925		50,238
Office Buildings
Comparable		43,612			4,868		1,334		—			40,078			43,319			5,366			1,201			—		39,154			0.7	%		2.4	%
Total		43,651			2,348		1,261		—			42,564			43,251			5,095			1,061			—		39,217
Hotels
Comparable		3,418			—		491		—			3,909			2,105			—			467			—		2,572			62.4	%		52.0	%
Total		3,418			—		491		(405	)		3,504			2,105			—			467			5,286		7,858
Earnings from Commercial Land Sales		18,989			1,556		395		—			17,828			30,241			16,285			—			—		13,956
Development Fees		160			64		—		—			96			2,897			1,159			—			—		1,738
Other		(9,584	)		2,579		42		—			(12,121	)		(5,559	)		(459	)		(321	)		—		(5,421	)
Total Commercial Group
Comparable		99,433			10,552		2,631		—			91,512			93,731			10,922			4,611			—		87,420			6.1	%		4.7	%
Total		120,151			9,480		6,462		(219	)		116,914			124,971			27,810			4,214			6,211		107,586
Residential Group
Apartments
Comparable		23,178			620		6,256		—			28,814			21,389			584			6,726			—		27,531			8.4	%		4.7	%
Total		43,241			1,215		8,373		1,816			52,215			18,454			1,440			8,454			2,712		28,180
Military Housing
Comparable		—			—		—		—			—			—			—			—			—		—
Total		5,577			—		144		—			5,721			2,567			—			38			—		2,605
Total Real Estate Groups
Comparable		122,611			11,172		8,887		—			120,326			115,120			11,506			11,337			—		114,951			6.5	%		4.7	%
Total		168,969			10,695		14,979		1,597			174,850			145,992			29,250			12,706			8,923		138,371
Land Development Group		46,777			2,269		130		—			44,638			32,184			2,128			162			—		30,218
The Nets		(619	)		—		1		—			(618	)		(7,537	)		—			1,000			—		(6,537	)
Corporate Activities		(10,436	)		—		—		—			(10,436	)		(10,469	)		—			—			—		(10,469	)
Grand Total	$	204,691		$	12,964	$	15,110	$	1,597		$	208,434		$	160,170		$	31,378		$	13,868		$	8,923	$	151,583

7

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income(dollars in thousands)
	Year Ended January 31, 2007												Year Ended January 31, 2006													% 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	$	189,225		$	20,745	$	8,452	$	—	$	176,932		$	177,580		$	20,545	$	11,590		$	—	$	168,625			6.6	%		4.9	%
Total		213,220			16,926		13,091		1,994		211,379			186,787			18,437		11,950			2,647		182,947
Office Buildings
Comparable		176,097			21,073		4,594		—		159,618			172,071			20,811		4,413			—		155,673			2.3	%		2.5	%
Total		174,880			18,764		4,365		—		160,481			173,319			21,694		4,025			—		155,650
Hotels
Comparable		14,421			—		1,947		—		16,368			11,819			—		1,899			—		13,718			22.0	%		19.3	%
Total		14,421			—		1,947		10,715		27,083			11,819			—		1,899			21,766		35,484
Earnings from Commercial Land Sales		37,143			2,684		641		—		35,100			67,990			18,390		—			—		49,600
Development Fees		879			352		—		—		527			10,614			4,247		—			—		6,367
Other		(28,997	)		6,768		145		—		(35,620	)		(17,466	)		3,011		(214	)		—		(20,691	)
Total Commercial Group
Comparable		379,743			41,818		14,993		—		352,918			361,470			41,356		17,902			—		338,016			5.1	%		4.4	%
Total		411,546			45,494		20,189		12,709		398,950			433,063			65,779		17,660			24,413		409,357
Residential Group
Apartments
Comparable		91,990			2,501		25,411		—		114,900			84,837			2,286		25,335			—		107,886			8.4	%		6.5	%
Total		121,188			4,082		31,766		10,390		159,262			81,101			5,050		30,552			15,261		121,864
Military Housing
Comparable		—			—		—		—		—			—			—		—			—		—
Total		12,052			—		305		—		12,357			4,763			—		1,032			—		5,795
Total Real Estate Groups
Comparable		471,733			44,319		40,404		—		467,818			446,307			43,642		43,237			—		445,902			5.7	%		4.9	%
Total		544,786			49,576		52,260		23,099		570,569			518,927			70,829		49,244			39,674		537,016
Land Development Group		99,056			5,055		790		—		94,791			102,002			5,704		353			—		96,651
The Nets		(14,703	)		—		2,812		—		(11,891	)		(24,534	)		—		2,992			—		(21,542	)
Corporate Activities		(41,196	)		—		—		—		(41,196	)		(36,192	)		—		—			—		(36,192	)
Grand Total	$	587,943		$	54,631	$	55,862	$	23,099	$	612,273		$	560,203		$	76,533	$	52,589		$	39,674	$	575,933

8

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 January 31, 2007															Three Months Ended January 31, 2006
							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	$	360,379		$	20,389		$	145,274		$	2,119		$	487,383		$	312,970		$	44,017		$	86,592		$	25,372		$	380,917
Exclude straight-line rent adjustment(1)		(6,995	)		—			—			—			(6,995	)		(6,334	)		—			—			(69	)		(6,403	)
Adjusted revenues		353,384			20,389			145,274			2,119			480,388			306,636			44,017			86,592			25,303			374,514
Operating expenses		225,465			7,515			94,094			1,400			313,444			173,246			13,598			52,252			17,130			229,030
Add back depreciation and amortization for non-Real Estate Groups (b)		639			—			(99	)		—			540			368			—			3,228			—			3,596
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		97			—			228			—			325			83			—			1,582			—			1,665
Exclude straight-line rent adjustment(2)		(2,797	)		—			—			—			(2,797	)		(1,349	)		—			—			(577	)		(1,926	)
Exclude preference payment		(898	)		—			—			—			(898	)		—			—			—			—			—
Adjusted operating expenses		222,506			7,515			94,223			1,400			310,614			172,348			13,598			57,062			16,553			232,365
Add interest and other income		31,763			90			2,501			878			35,052			9,292			959			713			173			9,219
Add equity in earnings of unconsolidated entities		32,731			—			(29,123	)		—			3,608			9,172			—			(8,957	)		—			215
Add back equity method depreciation and amortization expense (see below)		9,319			—			(9,319	)		—			—			7,418			—			(7,418	)		—			—
Net operating income		204,691			12,964			15,110			1,597			208,434			160,170			31,378			13,868			8,923			151,583
Interest expense, including early extinguishment of debt		(83,909	)		(4,650	)		(15,110	)		(1,093	)		(95,462	)		(69,954	)		(6,488	)		(13,868	)		(9,740	)		(87,074	)
Gain on disposition of rental properties and other investments		—			—			—			64,641			64,641			(100	)		—			—			33,722			33,622
Provision for decline in real estate		—			—			—			—			—			(1,774	)		(26	)		—			—			(1,748	)
Depreciation and amortization — Real Estate Groups(a)		(52,154	)		(3,097	)		(8,867	)		(14	)		(57,938	)		(45,756	)		(2,233	)		(7,080	)		(3,599	)		(54,202	)
Amortization of mortgage procurement costs – Real Estate Groups(c)		(2,598	)		(161	)		(452	)		(11	)		(2,900	)		(2,451	)		(84	)		(338	)		(214	)		(2,919	)
Straight-line rent adjustment(1) + (2)		4,198			—			—			—			4,198			4,985			—			—			(508	)		4,477
Preference payment		(898	)		—			—			—			(898	)		—			—			—			—			—
Equity method depreciation and amortization expense (see above)		(9,319	)		—			9,319			—			—			(7,418	)		—			7,418			—			—
Earnings before income taxes		60,011			5,056			—			65,120			120,075			37,702			22,547			—			28,584			43,739
Income tax expense		(24,284	)		—			—			(25,165	)		(49,449	)		(4,455	)		—			—			(11,049	)		(15,504	)
Earnings (loss) before minority interest and discontinued operations		35,727			5,056			—			39,955			70,626			33,247			22,547			—			17,535			28,235
Minority Interest		(5,056	)		(5,056	)		—			—			—			(22,547	)		(22,547	)		—			—			—
Earnings (loss) from continuing operations		30,671			—			—			39,955			70,626			10,700			—			—			17,535			28,235
Discontinued operations, net of tax and minority interest:
Operating earnings (loss) from rental properties		292			—			—			(292	)		—			(3,156	)		—			—			3,156			—
Gain on disposition of rental properties		39,663			—			—			(39,663	)		—			20,691			—			—			(20,691	)		—
		39,955			—			—			(39,955	)		—			17,535			—			—			(17,535	)		—
Net earnings	$	70,626		$	—		$	—		$	—		$	70,626		$	28,235		$	—		$	—		$	—		$	28,235
(a) Depreciation and amortization — Real Estate Groups	$	52,154		$	3,097		$	8,867		$	14		$	57,938		$	45,756		$	2,233		$	7,080		$	3,599		$	54,202
(b) Depreciation and amortization — Non-Real Estate Groups		639			—			(99	)		—			540			368			—			3,228			—			3,596
Total depreciation and amortization	$	52,793		$	3,097		$	8,768		$	14		$	58,478		$	46,124		$	2,233		$	10,308		$	3,599		$	57,798
(c) Amortization of mortgage procurement costs — Real Estate Groups	$	2,598		$	161		$	452		$	11		$	2,900		$	2,451		$	84		$	338		$	214		$	2,919
(d) Amortization of mortgage procurement costs — Non-Real Estate Groups		97			—			228			—			325			83			—			1,582			—			1,665
Total amortization of mortgage procurement costs	$	2,695		$	161		$	680		$	11		$	3,225		$	2,534		$	84		$	1,920		$	214		$	4,584
(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 January 31, 2007, and the three months ended January 31, 2006, no equity method properties were sold.

9

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

	Year Ended January 31, 2007															Year Ended January 31, 2006
							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	$	1,168,835		$	98,001		$	355,457		$	58,198		$	1,484,489			$	1,128,472		$	129,043		$	318,282		$	115,392		$	1,433,103
Exclude straight-line rent adjustment(1)		(15,950	)		—			—			(44	)		(15,994	)			(18,229	)		—			—			(163	)		(18,392	)
Adjusted revenues		1,152,885			98,001			355,457			58,154			1,468,495				1,110,243			129,043			318,282			115,229			1,414,711
Operating expenses		709,343			46,132			234,796			37,497			935,504				644,765			55,114			194,900			78,436			862,987
Add back depreciation and amortization for non-Real Estate Groups (b)		1,571			—			7,174			—			8,745				1,104			—			13,086			—			14,190
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		333			1			819			—			1,151				369			—			2,035			—			2,404
Exclude straight-line rent adjustment(2)		(6,299	)		—			—			(938	)		(7,237	)			(5,394	)		—			—			(2,338	)		(7,732	)
Exclude preference payment		(898	)		—			—			—			(898	)			—			—			—			—			—
Adjusted operating expenses		704,050			46,133			242,789			36,559			937,265				640,844			55,114			210,021			76,098			871,849
Add interest and other income		61,737			2,763			3,301			1,504			63,779				27,773			2,604			1,218			543			26,930
Add equity in earnings of unconsolidated entities		48,542			—			(31,278	)		—			17,264				55,201			—			(49,060	)		—			6,141
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)		36,091			—			(36,091	)		—			—				28,149			—			(28,149	)		—			—
Net operating income		587,943			54,631			55,862			23,099			612,273				560,203			76,533			52,589			39,674			575,933
Interest expense, including early extinguishment of debt		(295,978	)		(24,557	)		(55,862	)		(10,053	)		(337,336	)			(264,834	)		(28,667	)		(52,589	)		(30,062	)		(318,818	)
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		—			—			—			233,852			233,852				506			—			—			43,198			43,704
Provision for decline in real estate		(1,923	)		—			—			—			(1,923	)			(7,874	)		(1,432	)		—			—			(6,442	)
Provision for decline in real estate of equity method rental properties		(400	)		—			—			—			(400	)			(704	)		—			—			—			(704	)
Depreciation and amortization — Real Estate Groups(a)		(179,558	)		(13,811	)		(34,779	)		(6,219	)		(206,745	)			(163,293	)		(15,341	)		(26,905	)		(17,858	)		(192,715	)
Amortization of mortgage procurement costs – Real Estate Groups(c)		(10,570	)		(1,076	)		(1,312	)		(192	)		(10,998	)			(9,610	)		(1,066	)		(1,244	)		(1,790	)		(11,578	)
Straight-line rent adjustment(1) + (2)		9,651			—			—			(894	)		8,757				12,835			—			—			(2,175	)		10,660
Preference payment		(898	)		—			—			—			(898	)			—			—			—			—			—
Equity method depreciation and amortization expense (see above)		(36,091	)		—			36,091			—			—				(28,149	)		—			28,149			—			—
Earnings before income taxes		79,838			15,187			—			239,593			304,244				120,103			30,027			—			30,987			121,063
Income tax expense		(34,412	)		—			—			(92,581	)		(126,993	)			(25,564	)		—			—			(11,980	)		(37,544	)
Earnings before minority interest and discontinued operations		45,426			15,187			—			147,012			177,251				94,539			30,027			—			19,007			83,519
Minority Interest		(15,187	)		(15,187	)		—			—			—				(30,027	)		(30,027	)		—			—			—
Earnings from continuing operations		30,239			—			—			147,012			177,251				64,512			—			—			19,007			83,519
Discontinued operations, net of tax and minority interest:
Operating earnings (loss) from rental properties		3,520			—			—			(3,520	)		—				(7,498	)		—			—			7,498			—
Gain on disposition of rental properties		143,492			—			—			(143,492	)		—				26,505			—			—			(26,505	)		—
		147,012			—			—			(147,012	)		—				19,007			—			—			(19,007	)		—
Net earnings	$	177,251		$	—		$	—		$	—		$	177,251			$	83,519		$	—		$	—		$	—		$	83,519
(a) Depreciation and amortization — Real Estate Groups	$	179,558		$	13,811		$	34,779		$	6,219		$	206,745			$	163,293		$	15,341		$	26,905		$	17,858		$	192,715
(b) Depreciation and amortization — Non-Real Estate Groups		1,571			—			7,174			—			8,745				1,104			—			13,086			—			14,190
Total depreciation and amortization	$	181,129		$	13,811		$	41,953		$	6,219		$	215,490			$	164,397		$	15,341		$	39,991		$	17,858		$	206,905
(c) Amortization of mortgage procurement costs — Real Estate Groups	$	10,570		$	1,076		$	1,312		$	192		$	10,998			$	9,610		$	1,066		$	1,244		$	1,790		$	11,578
(d) Amortization of mortgage procurement costs — Non-Real Estate Groups		333			1			819			—			1,151				369			—			2,035			—			2,404
Total amortization of mortgage procurement costs	$	10,903		$	1,077		$	2,131		$	192		$	12,149			$	9,979		$	1,066		$	3,279		$	1,790		$	13,982
(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 year ended January 31, 2007, one equity method property was soldMidtown Plaza,resulting in a pre-tax gain on disposition of $7,662. For the year ended January 31, 2006, three equity method investments were sold includingFlower Park Plaza,ShowcaseandColony Place, resulting in a pre-tax gain on disposition of $21,023.

10

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Retail Lease Expirations as of January 31, 2007

													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)
2007		187		550,515		4.83	%	$	9,839,783		4.03	%	$	22.81
2008		183		642,023		5.63			13,490,698		5.54			27.28
2009		256		815,898		7.16			15,635,289		6.42			25.28
2010		225		614,631		5.39			14,626,649		6.00			29.83
2011		340		1,275,549		11.19			32,099,720		13.17			29.22
2012		136		700,286		6.14			15,704,759		6.44			27.42
2013		142		605,902		5.32			17,261,556		7.08			30.31
2014		164		664,014		5.83			12,980,802		5.33			27.77
2015		178		752,914		6.61			18,903,884		7.76			29.53
2016		251		1,251,435		10.98			33,915,256		13.92			38.49
Thereafter		110		3,524,421		30.92			59,258,125		24.31			19.17
Total		2,172		11,397,588		100.00	%	$	243,716,521		100.00	%	$	26.35

(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

Office Lease Expirations as of January 31, 2007

													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)
2007		72		528,288		5.93	%	$	8,755,715		4.20	%	$	22.38
2008		72		530,451		5.95			9,567,521		4.58			21.80
2009		53		447,779		5.03			9,198,728		4.41			25.25
2010		45		986,907		11.08			18,635,667		8.92			24.74
2011		28		495,749		5.56			9,978,116		4.78			28.37
2012		20		832,718		9.34			24,372,858		11.67			29.95
2013		22		732,407		8.22			16,997,146		8.14			24.84
2014		9		535,175		6.01			11,816,486		5.66			28.36
2015		5		189,840		2.13			2,381,720		1.14			19.73
2016		11		471,699		5.29			9,571,272		4.58			23.33
Thereafter		35		3,159,976		35.46			87,541,806		41.92			30.31
Total		372		8,910,989		100.00	%	$	208,817,035		100.00	%	$	27.16

(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.

12

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Retail Tenants as of January 31, 2007

(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		4.06	%
Regal Entertainment Group		5		379,072		3.33
The Gap		23		295,345		2.59
The Home Depot		2		282,000		2.47
TJX Companies		8		272,554		2.39
The Limited		41		265,927		2.33
Dick’s Sporting Goods		3		226,408		1.99
Abercrombie & Fitch Stores, Inc.		27		203,427		1.78
Circuit City Stores, Inc.		6		199,107		1.75
Footlocker, Inc.		39		143,467		1.26
Pathmark Stores, Inc.		2		123,500		1.08
Ahold USA (Stop & Shop)		2		115,861		1.02
Subtotal		163		2,969,531		26.05
All Others		2,009		8,428,057		73.95
Total		2,172		11,397,588		100.00	%

13

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Office Tenants as of January 31, 2007

(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		9.99	%
Millennium Pharmaceuticals, Inc.		718,576		8.06
U.S. Government		591,374		6.64
Morgan Stanley & Co.		444,685		4.99
Securities Industry Automation Corp.		431,036		4.84
Wellchoice, Inc.		392,514		4.40
Keyspan Energy		335,318		3.76
Forest City Enterprises, Inc.(1)		328,021		3.68
Bank of New York		323,043		3.63
Bear Stearns		292,142		3.28
Alkermes, Inc.		210,248		2.36
Partners Health Care System, Inc.		136,150		1.53
University of Pennsylvania		121,630		1.36
Subtotal		5,214,922		58.52
All Others		3,696,067		41.48
Total		8,910,989		100.00	%

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

14

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline
January 31, 2007
2006 Openings and Acquisitions (14)

														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	(g)
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	(h)
										$	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	%	$	5.1	$	5.1	$	5.1		40,000
Advent Solar (c)	Albuquerque, NM	D	Q3-06		47.5	%		47.5	%		0.0		10.7		5.1		88,000
Bulletin Building (c)	San Francisco, CA	A/D	Q3-06		50.0	%		50.0	%		0.0		28.0		14.0		87,000
Stapleton Medical Office Building	Denver, CO	D	Q3-06		90.0	%		90.0	%		10.3		10.3		9.3		45,000
Illinois Science and Technology Park — Building A	Skokie, IL	A/D	Q4-06		100.0	%		100.0	%		31.1		31.1		31.1		225,000
Illinois Science and Technology Park — Building P	Skokie, IL	A/D	Q4-06		100.0	%		100.0	%		23.3		23.3		23.3		127,000
Edgeworth Building	Richmond, VA	D	Q4-06		100.0	%		100.0	%		35.2		35.2		35.2		142,000
										$	105.0	$	143.7	$	123.1		754,000
Residential:
Sky55	Chicago, IL	D	Q1-06		100.0	%		100.0	%	$	109.5	$	109.5	$	109.5		411
1251 S. Michigan	Chicago, IL	D	Q1-06		100.0	%		100.0	%		16.0		16.0		16.0		91
Cutters Ridge at Tobacco Row	Richmond, VA	D	Q4-06		100.0	%		100.0	%		4.8		4.8		4.8		12
										$	130.3	$	130.3	$	130.3		514
																		Units Sold at 1/31/07
Condominiums:
1100 Wilshire (c)	Los Angeles, CA	D	Q4-06		40.0	%		40.0	%	$	0.0	$	132.0	$	52.8		228		139
Total openings (d)										$	417.8	$	1,226.5	$	803.7
LESS: Above properties to be sold as condominiums										$	0.0	$	132.0	$	52.8
Total Openings less Condominiums										$	417.8	$	1,094.5	$	750.9
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	2004-06		33.0	%		33.0	%		0.0		22.0		7.3		144 / 348
Pine Ridge Expansion	Willoughby Hills, OH	D	2005-07		50.0	%		50.0	%		0.0		16.4		8.2		53 / 162
Cobblestone Court	Painesville, OH	D	2006-08		50.0	%		50.0	%		0.0		24.6		12.3		112 / 304
Total (f)										$	0.0	$	81.4	$	37.0		357 / 1,102

See attached footnotes.

15

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline
January 31, 2007
Under Construction or to be Acquired (18)

					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	Q1-07			100.0	%		100.0	%	$	135.0	$	135.0	$	135.0		736,000			409,000	(l)		72	%
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	2008			100.0	%		100.0	%		143.0		143.0		143.0		971,000			557,000	(m)		28	%
Shops at Wiregrass (c)	Tampa, FL	D	Q3-08			50.0	%		66.7	%		0.0		123.7		82.5		530,000			380,000			50	%
East River Plaza (c)	Manhattan, NY	D	Q3-08			35.0	%		50.0	%		0.0		347.0		173.5		514,000			514,000			64	%
											$	319.2	$	789.9	$	567.0		2,931,000			2,040,000
Office:
New York Times	Manhattan, NY	D	Q3-07			70.0	%		79.5	%	$	517.5	$	517.5	$	411.4		736,000	(n)					80	%
Illinois Science and Technology Park— Building Q	Skokie, IL	A/D	Q3-07			100.0	%		100.0	%		46.4		46.4		46.4		160,000						16	%
Johns Hopkins — 855 North Wolfe Street	East Baltimore, MD	D	Q1-08			76.6	%		76.6	%		102.2		102.2		78.3		278,000						36	%
											$	666.1	$	666.1	$	536.1		1,174,000
Residential:
Sterling Glen of Roslyn (o)	Roslyn, NY	D	Q2-07			40.0	%		100.0	%	$	79.7	$	79.7	$	79.7		158
Stapleton Town Center — Botanica Phase II	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		200.3		100.2		665
Ohana Military Communities, Hawaii Increment I (c) (e)	Honolulu, HI	D	2005-2008			10.0	%		10.0	%		0.0		316.5		31.7		1,952
Dallas Mercantile	Dallas, TX	D	Q1-08/Q3-08			100.0	%		100.0	%		132.6		132.6		132.6		366	(p)
Lucky Strike	Richmond, VA	D	Q1-08			100.0	%		100.0	%		37.8		37.8		37.8		131
Military Housing — Navy Midwest (c)	Chicago, IL	D	Q1-09			25.0	%		25.0	%		0.0		264.9		66.2		1,658
Military Housing — Marines, Hawaii Increment II (c)	Honolulu, HI	D	2007-2010			10.0	%		10.0	%		0.0		294.7		29.5		1,175
Military Housing — Navy, Hawaii Increment III (c)	Honolulu, HI	D	2007-2010			10.0	%		10.0	%		0.0		547.8		54.8		2,519
				��
											$	276.4	$	1,900.6	$	556.2		8,778
																				Units Sold at 1/31/07
Condominiums:
Mercury (c)	Los Angeles, CA	D	Q3-07			50.0	%		50.0	%	$	0.0	$	150.6	$	75.3		238			62
Total Under Construction (j)											$	1,261.7	$	3,507.2	$	1,734.6
LESS: Above properties to be sold as condominiums												0.0		150.6		75.3
Under Construction less Condominiums											$	1,261.7	$	3,356.6	$	1,659.3
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
Pine Ridge Expansion	Willoughby Hills, OH	D	2005-07			50.0	%		50.0	%		0.0		16.4		8.2		40 / 162
Cobblestone Court	Painesville, OH	D	2006-08			50.0	%		50.0	%		0.0		24.6		12.3		192 / 304
Sutton Landing	Brimfield, OH	D	2007-08			50.0	%		50.0	%		0.0		15.9		8.0		132 / 216
Stratford Crossing	Wadsworth, OH	D	2007-09			50.0	%		50.0	%		0.0		24.1		12.1		108 / 348
Total (k)											$	0.0	$	99.4	$	49.8		520 / 1,318

See attached footnotes.

16

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline

January 31, 2007 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 $417.8 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $803.7 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 $390.9 million.

(e) Phased-in openings. Costs are representative of the total project.

(f) The difference between the full consolidation cost amount (GAAP) of $-0- million to the Company’s pro-rata share (a non-GAAP measure) of $37.0 million of cost consists of the Company’s share of cost for unconsolidated investments of $37.0 million.

(g) Includes all phases of Northfield at Stapleton including Phase I which opened in Q4-05. Also, includes 34,000 square feet of office space.

(h) Includes San Francisco Centre and Emporium which were previously reported separately. Includes 235,000 square feet of office space.

(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) The difference between the full consolidation cost amount (GAAP) of $1,261.7 million to the Company’s pro-rata share (a non-GAAP measure) of $1,734.6 million of cost consists of a reduction to full consolidation for minority interest of $140.8 million of cost and the addition of its share of cost for unconsolidated investments of $613.7 million.

(k) The difference between the full consolidation cost amount (GAAP) of $-0- million to the Company’s pro-rata share (a non-GAAP measure) of $49.8 million of cost consists of Forest City’s share of cost for unconsolidated investments of $49.8 million.

(l) Includes 39,000 square feet of office space.

(m) 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.

(n)	Includes 23,000 square feet of retail space.
(o)	Supported-living property.
(p)	Project includes 18,000 square feet of retail space.

17

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial 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 2007 and 2008. During the year ended January 31, 2007, 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	$	658,033	$	14,000	$	288,916	$	932,949
Development projects — commitment		319,290		46,739		233,325		505,876
Loan extensions/additional fundings		318,616		5,564		93,210		406,262
	$	1,295,939	$	66,303	$	615,451	$	1,845,087

18

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Mortgage Debt(dollars in thousands)
As of January 31, 2007

	Fiscal Year Ending January 31, 2008												Fiscal Year Ending January 31, 2009
							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	$	161,725		$	18,775		$	63,237		$	206,187			$	104,983		$	5,039		$	86,564		$	186,508
Weighted average rate		6.78	%		6.78	%		7.53	%		7.01	%			6.65	%		6.81	%		6.77	%		6.70	%
Variable:
Variable-rate debt		448,545			55,033			105,713			499,225				302,878			676			27,459			329,661
Weighted average rate		7.39	%		8.68	%		7.79	%		7.33	%			6.68	%		7.17	%		6.98	%		6.70	%
Tax-Exempt		191,609			2,900			33,599			222,308				61,565			—			103			61,668
Weighted average rate		4.70	%		4.38	%		5.03	%		4.75	%			4.50	%		—			4.14	%		4.50	%
Total variable-rate debt		640,154			57,933			139,312			721,533				364,443			676			27,562			391,329
Total Nonrecourse Mortgage Debt	$	801,879		$	76,708		$	202,549		$	927,720			$	469,426		$	5,715		$	114,126		$	577,837
Weighted Average Rate		6.62	%		8.06	%		7.25	%		6.64	%			6.39	%		6.85	%		6.82	%		6.47	%
	Fiscal Year Ending January 31, 2010												Fiscal Year Ending January 31, 2011
							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	$	371,240		$	29,568		$	43,112		$	384,784			$	207,294		$	16,464		$	19,932		$	210,762
Weighted average rate		7.09	%		7.38	%		6.67	%		7.02	%			7.03	%		2.62	%		7.27	%		7.39	%
Variable:
Variable-rate debt		8,184			—			19,510			27,694				48,258			—			11,121			59,379
Weighted average rate		6.01	%		—			7.47	%		7.03	%			5.26	%		—			8.62	%		5.89	%
Tax-Exempt		206,335			6,000			120,113			320,448				31,530			—			6,118			37,648
Weighted average rate		4.23	%		4.18	%		4.11	%		4.19	%			4.47	%		—			4.16	%		4.42	%
Total variable-rate debt		214,519			6,000			139,623			348,142				79,788			—			17,239			97,027
Total Nonrecourse Mortgage Debt	$	585,759		$	35,568		$	182,735		$	732,926			$	287,082		$	16,464		$	37,171		$	307,789
Weighted Average Rate		6.07	%		6.84	%		5.07	%		5.78	%			6.45	%		2.62	%		7.16	%		6.74	%

19

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Mortgage Debt(dollars in thousands)(continued)
As of January 31, 2007

	Fiscal Year Ending January 31, 2012														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	$	360,269		$	19,539		$	33,816		$	374,546		$	2,524,856		$	156,395		$	603,328		$	2,971,789
Weighted average rate		7.12	%		7.22	%		6.97	%		7.10	%		5.77	%		5.91	%		5.66	%		5.74	%
Variable:
Variable-rate debt		3,123			—			3,795			6,918			59,143			—			86,691			145,834
Weighted average rate		5.29	%		—			7.14	%		6.31	%		5.01	%		—			6.48	%		5.89	%
Tax-Exempt		14,810			—			—			14,810			232,025			9,881			43,998			266,142
Weighted average rate		4.16	%		—			—			4.16	%		4.66	%		4.37	%		5.13	%		4.75	%
Total variable-rate debt		17,933			—			3,795			21,728			291,168			9,881			130,689			411,976
Total Nonrecourse Mortgage Debt	$	378,202		$	19,539		$	37,611		$	396,274		$	2,816,024		$	166,276		$	734,017		$	3,383,765
Weighted Average Rate		6.99	%		7.22	%		6.98	%		6.98	%		5.67	%		5.82	%		5.72	%		5.67	%
	Total
							Plus
							Unconsolidated
	Full			Less Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	3,730,367		$	245,780		$	849,989		$	4,334,576
Weighted average rate		6.17	%		6.06	%		6.05	%		6.16	%
Variable:
Variable-rate debt		870,131			55,709			254,289			1,068,711
Weighted average rate		6.84	%		8.67	%		7.26	%		6.85	%
Tax-Exempt		737,874			18,781			203,931			923,024
Weighted average rate		4.52	%		4.31	%		4.36	%		4.49	%
Total variable-rate debt		1,608,005			74,490			458,220			1,991,735
Total Nonrecourse Mortgage Debt	$	5,338,372		$	320,270		$	1,308,209		$	6,326,311
Weighted Average Rate		6.05	%		6.41	%		6.02	%		6.03	%

20

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 — January 31, 2007 (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	$	6,659,054		$	346,323		$	1,207,591		$	7,520,322
Projects under development		1,396,083			126,660			298,665			1,568,088
Land held for development or sale		174,136			6,032			78,578			246,682
Total Real Estate		8,229,273			479,015			1,584,834			9,335,092
Less accumulated depreciation		(1,085,978	)		(70,863	)		(286,054	)		(1,301,169	)
Real Estate, net		7,143,295			408,152			1,298,780			8,033,923
Cash and equivalents		254,213			24,545			32,997			262,665
Restricted cash		292,461			25,028			168,062			435,495
Notes and accounts receivable, net		287,615			26,619			9,458			270,454
Investments in and advances to affiliates		333,782			—			(95,710	)		238,072
Other assets		670,238			29,260			95,834			736,812
Total Assets	$	8,981,604		$	513,604		$	1,509,421		$	9,977,421
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse	$	5,338,372		$	320,270		$	1,308,209		$	6,326,311
Notes payable		96,127			1,167			88,244			183,204
Bank revolving credit facility		—			—			—			—
Senior and subordinated debt		886,900			—			—			886,900
Accounts payable and accrued expenses		772,964			15,711			112,968			870,221
Deferred income taxes		486,329			—			—			486,329
Total Liabilities		7,580,692			337,148			1,509,421			8,752,965
Minority Interest		375,101			176,456			—			198,645
Total Shareholders’ Equity		1,025,811			—			—			1,025,811
Total Liabilities and Shareholders’ Equity	$	8,981,604		$	513,604		$	1,509,421		$	9,977,421

21

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		73,823			19,214			91,710			146,319
Bank revolving credit facility		82,500			—			—			82,500
Senior and subordinated debt		599,400			—			—			599,400
Accounts payable and accrued expenses		690,300			91,155			97,514			696,659
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

22

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information — Three Months Ended January 31, 2007 (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	$	360,379		$	20,389		$	145,274		$	2,119		$	487,383
Expenses
Operating expenses		225,465			7,515			94,094			1,400			313,444
Depreciation and amortization		52,793			3,097			8,768			14			58,478
Provision for decline in real estate		—			—			—			—			—
		278,258			10,612			102,862			1,414			371,922
Interest expense, including early extinguishment of debt		(83,909	)		(4,650	)		(15,110	)		(1,093	)		(95,462	)
Amortization of mortgage procurement costs		(2,695	)		(161	)		(680	)		(11	)		(3,225	)
Interest and other income		31,763			90			2,501			878			35,052
Equity in earnings of unconsolidated entities		32,731			—			(29,123	)		—			3,608
Gain on disposition of rental properties and Lumber Group		—			—			—			64,641			64,641
Earnings before income taxes		60,011			5,056			—			65,120			120,075
Income tax expense (benefit)
Current		1,119			—			—			(3,320	)		(2,201	)
Deferred		23,165			—			—			28,485			51,650
		24,284			—			—			25,165			49,449
Earnings before minority interest and discontinued operations		35,727			5,056			—			39,955			70,626
Minority interest		(5,056	)		(5,056	)		—			—			—
Earnings from continuing operations		30,671			—			—			39,955			70,626
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		292			—			—			(292	)		—
Gain on disposition of rental properties		39,197			—			—			(39,197	)		—
Gain on disposition of Lumber Group		466			—			—			(466	)		—
		39,955			—			—			(39,955	)		—
Net earnings	$	70,626		$	—		$	—		$	—		$	70,626

23

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information — Year Ended January 31, 2007 (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	$	1,168,835		$	98,001		$	355,457		$	58,198		$	1,484,489
Expenses
Operating expenses		709,343			46,132			234,796			37,497			935,504
Depreciation and amortization		181,129			13,811			41,953			6,219			215,490
Provision for decline in real estate		1,923			—			400			—			2,323
		892,395			59,943			277,149			43,716			1,153,317
Interest expense, including early extinguishment of debt		(295,978	)		(24,557	)		(55,862	)		(10,053	)		(337,336	)
Amortization of mortgage procurement costs		(10,903	)		(1,077	)		(2,131	)		(192	)		(12,149	)
Interest and other income		61,737			2,763			3,301			1,504			63,779
Equity in earnings of unconsolidated entities (Note 1)		48,542			—			(31,278	)		—			17,264
Gain on disposition of rental properties and Lumber Group		—			—			7,662			233,852			241,514
Earnings before income taxes		79,838			15,187			—			239,593			304,244
Income tax expense (benefit)
Current		(13,428	)		—			—			15,371			1,943
Deferred		47,840			—			—			77,210			125,050
		34,412			—			—			92,581			126,993
Earnings before minority interest and discontinued operations		45,426			15,187			—			147,012			177,251
Minority interest		(15,187	)		(15,187	)		—			—			—
Earnings from continuing operations(Note 1)		30,239			—			—			147,012			177,251
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		3,520			—			—			(3,520	)		—
Gain on disposition of rental properties		143,026			—			—			(143,026	)		—
Gain on disposition of Lumber Group		466			—			—			(466	)		—
		147,012			—			—			(147,012	)		—
Net earnings	$	177,251		$	—		$	—		$	—		$	177,251

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 year ended January 31, 2007, 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.

24

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information — Three Months Ended January 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	$	312,970		$	44,017		$	86,592		$	25,372		$	380,917
Expenses
Operating expenses		173,246			13,598			52,252			17,130			229,030
Depreciation and amortization		46,124			2,233			10,308			3,599			57,798
Provision for decline in real estate		1,774			26			—			—			1,748
		221,144			15,857			62,560			20,729			288,576
Interest expense, including early extinguishment of debt		(69,954	)		(6,488	)		(13,868	)		(9,740	)		(87,074	)
Amortization of mortgage procurement costs		(2,534	)		(84	)		(1,920	)		(214	)		(4,584	)
Interest and other income		9,292			959			713			173			9,219
Equity in earnings of unconsolidated entities		9,172			—			(8,957	)		—			215
Gain (loss) on disposition of rental properties and other investments		(100	)		—			—			33,722			33,622
Earnings before income taxes		37,702			22,547			—			28,584			43,739
Income tax expense (benefit)
Current		(3,057	)		—			—			(2,474	)		(5,531	)
Deferred		7,512			—			—			13,523			21,035
		4,455			—			—			11,049			15,504
Earnings before minority interest and discontinued operations		33,247			22,547			—			17,535			28,235
Minority interest		(22,547	)		(22,547	)		—			—			—
Earnings from continuing operations		10,700			—			—			17,535			28,235
Discontinued operations, net of tax and minority interest:
Operating (loss) from rental properties		(3,156	)		—			—			3,156			—
Gain on disposition of rental properties		20,691			—			—			(20,691	)		—
		17,535			—			—			(17,535	)		—
Net earnings	$	28,235		$	—		$	—		$	—		$	28,235

25

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information — Year Ended January 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	$	1,128,472		$	129,043		$	318,282		$	115,392		$	1,433,103
Expenses
Operating expenses		644,765			55,114			194,900			78,436			862,987
Depreciation and amortization		164,397			15,341			39,991			17,858			206,905
Provision for decline in real estate		7,874			1,432			704			—			7,146
		817,036			71,887			235,595			96,294			1,077,038
Interest expense, including early extinguishment of debt		(264,834	)		(28,667	)		(52,589	)		(30,062	)		(318,818	)
Amortization of mortgage procurement costs		(9,979	)		(1,066	)		(3,279	)		(1,790	)		(13,982	)
Interest and other income		27,773			2,604			1,218			543			26,930
Equity in earnings of unconsolidated entities (Note 1)		55,201			—			(49,060	)		—			6,141
Gain on disposition of rental properties and other investments		506			—			21,023			43,198			64,727
Earnings before income taxes		120,103			30,027			—			30,987			121,063
Income tax expense (benefit)
Current		4,000			—			—			(6,960	)		(2,960	)
Deferred		21,564			—			—			18,940			40,504
		25,564			—			—			11,980			37,544
Earnings before minority interest and discontinued operations		94,539			30,027			—			19,007			83,519
Minority interest		(30,027	)		(30,027	)		—			—			—
Earnings from continuing operations(Note 1)		64,512			—			—			19,007			83,519
Discontinued operations, net of tax and minority interest:
Operating (loss) from rental properties		(7,498	)		—			—			7,498			—
Gain on disposition of rental properties		26,505			—			—			(26,505	)		—
		19,007			—			—			(19,007	)		—
Net earnings	$	83,519		$	—		$	—		$	—		$	83,519

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 year ended January 31, 2006, three equity method investments were sold,Showcase, Colony PlaceandFlower Park Plaza.A pre-tax gain of $21,023 ($12,900 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.

26

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:

	January 31,
	2007		2006
	(in thousands)
Members’ and partners’ equity as below	$	592,681	$	564,280
Equity of other members and partners		496,971		409,035
Company’s investment in partnerships		95,710		155,245
Advances to and on behalf of other affiliates(1)		238,072		206,697
Total investments in and advances to affiliates	$	333,782	$	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. Historically, 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, Bruce C. Ratner, is the President and Chief Executive Officer of FCRC and is the cousin to five executive officers of the Company. The FCRC portfolio became a wholly-owned subsidiary of the Company upon the issuance of the Class A Common Units in exchange for Bruce C. Ratner’s minority interests. At January 31, 2007 and 2006, amounts advanced for projects on behalf of this partner were $0 and $38,817, respectively, of the $238,072 and $206,697 presented above for “Advances to and on behalf of other affiliates.” These advances entitled 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. These advances were repaid upon the issuance of the Class A Common Units on November 8, 2006.

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

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Year Ended January 31,	2007			2006			2007			2006
	(in thousands)						(in thousands)
Balance sheet:
Completed rental properties	$	2,697,454		$	1,946,922		$	1,207,591		$	931,183
Projects under development		777,419			854,316			298,665			394,648
Land held for development or sale		160,296			181,315			78,578			97,566
Accumulated depreciation		(554,910	)		(529,501	)		(286,054	)		(269,412	)
Restricted cash (2)		1,432,636			317,850			168,062			51,241
Other assets		526,142			469,676			138,289			105,350
Total assets	$	5,039,037		$	3,240,578		$	1,605,131		$	1,310,576
Mortgage debt, nonrecourse (2)	$	3,834,085		$	2,145,146		$	1,308,209		$	966,107
Other liabilities		612,271			531,152			201,212			189,224
Members’ and partners’ equity		592,681			564,280			95,710			155,245
Total liabilities and members’/partners’ equity	$	5,039,037		$	3,240,578		$	1,605,131		$	1,310,576

(2) The increase in restricted cash and nonrecourse debt is primarily related to bond proceeds held in escrow related to Phase 2 and Phase 3 of development at Ohana Military Communities.

27

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Investments in and Advances to Affiliates(continued)

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Year Ended January 31,	2007			2006			2007			2006
	(in thousands)
Operations:
Revenues	$	797,745		$	686,455		$	354,935		$	314,702
Equity in earnings of unconsolidated entities on a pro-rata basis		—			—			17,264			6,141
Operating expenses		(547,825	)		(425,308	)		(234,685	)		(193,376	)
Interest expense including early extinguishment of debt		(145,755	)		(119,470	)		(55,566	)		(51,002	)
Provision for decline in real estate		(900	)		—			(300	)		—
Depreciation and amortization		(110,587	)		(112,312	)		(43,996	)		(42,813	)
Interest income		23,879			9,472			3,277			1,064
Earnings from continuing operations		16,557			38,837			40,929			34,716
Discontinued operations:
Gain on disposition of rental properties(3)		15,325			85,802			7,662			21,023
Operating earnings (loss) from rental properties		4			(206	)		(49	)		(538	)
		15,329			85,596			7,613			20,485
Net Earnings (pre-tax)	$	31,886		$	124,433		$	48,542		$	55,201

(3) 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
		(GAAP)				(Non-GAAP)
		Year Ended January 31,
		2007		2006		2007		2006
		(in thousands)
Midtown Plaza (Specialty Retail Center)	(Parma, Ohio)	$	15,325	$	—	$	7,662	$	—
Showcase (Specialty Retail Center)	(Las Vegas, Nevada)		—		71,005		—		13,145
Colony Place (Apartments)	(Fort Myers, Florida)		—		10,703		—		5,352
Flower Park Plaza (Apartments)	(Santa Ana, California)		—		4,094		—		2,526
Total		$	15,325	$	85,802	$	7,662	$	21,023

28

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate and Related Nonrecourse Mortgage Debt

	January 31, 2007
			Less				Nonrecourse
			Accumulated				Mortgage
	Total Cost		Depreciation		Net Cost		Debt
	(in thousands)
Full Consolidation:
Completed rental properties
Residential	$	1,608,777	$	207,792	$	1,400,985	$	1,109,476
Commercial
Retail centers		2,596,216		333,875		2,262,341		2,094,902
Office and other buildings		2,444,476		538,765		1,905,711		1,548,345
Corporate and other equipment		9,585		5,546		4,039		—
		6,659,054		1,085,978		5,573,076		4,752,723
Projects under development
Residential
Under construction		109,118		—		109,118		70,927
In development		221,107		—		221,107		63,000
Commercial
Retail centers
Under construction		159,065		—		159,065		71,633
In development		133,610		—		133,610		—
Office and other buildings
Under construction		446,167		—		446,167		215,687
In development		327,016		—		327,016		114,407
		1,396,083		—		1,396,083		535,654
Land held for development or sale		174,136		—		174,136		49,995
Total real estate and mortgage debt	$	8,229,273	$	1,085,978	$	7,143,295	$	5,338,372
Less Minority Interest:
Completed rental properties
Residential	$	57,671	$	6,971	$	50,700	$	48,550
Commercial
Retail centers		96,237		9,273		86,964		94,052
Office and other buildings		192,415		54,619		137,796		121,607
Corporate and other equipment		—		—		—		—
		346,323		70,863		275,460		264,209
Projects under development
Residential
Under construction		—		—		—		—
In development		—		—		—		—
Commercial
Retail centers
Under construction		5,450		—		5,450		6,400
In development		—		—		—		—
Office and other buildings
Under construction		7,554		—		7,554		427
In development		113,656		—		113,656		46,983
		126,660		—		126,660		53,810
Land held for development or sale		6,032		—		6,032		2,251
Total real estate and mortgage debt	$	479,015	$	70,863	$	408,152	$	320,270

29

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate and Related Nonrecourse Mortgage Debt (continued)

	January 31, 2007
							Nonrecourse
			Less Accumulated				Mortgage
	Total Cost		Depreciation		Net Cost		Debt
	(in thousands)
Plus Unconsolidated Investments at Pro-Rata:
Completed rental properties
Residential	$	634,745	$	182,008	$	452,737	$	543,823
Commercial
Retail centers		389,786		41,157		348,629		387,053
Office and other buildings		183,059		62,889		120,170		102,693
Corporate and other equipment		1		—		1		—
		1,207,591		286,054		921,537		1,033,569
Projects under development
Residential
Under construction		132,243		—		132,243		153,085
In development		6,728		—		6,728		—
Commercial
Retail centers
Under construction		77,452		—		77,452		65,000
In development		51,922		—		51,922		7,522
Office and other buildings
Under construction		83		—		83		—
In development		30,237		—		30,237		8,554
		298,665		—		298,665		234,161
Land held for development or sale		78,578		—		78,578		40,479
Total real estate and mortgage debt	$	1,584,834	$	286,054	$	1,298,780	$	1,308,209
Pro-Rata Consolidation (Non-GAAP):
Completed rental properties
Residential	$	2,185,851	$	382,829	$	1,803,022	$	1,604,749
Commercial
Retail centers		2,889,765		365,759		2,524,006		2,387,903
Office and other buildings		2,435,120		547,035		1,888,085		1,529,431
Corporate and other equipment		9,586		5,546		4,040		—
		7,520,322		1,301,169		6,219,153		5,522,083
Projects under development
Residential
Under construction		241,361		—		241,361		224,012
In development		227,835		—		227,835		63,000
Commercial
Retail centers
Under construction		231,067		—		231,067		130,233
In development		185,532		—		185,532		7,522
Office and other buildings
Under construction		438,696		—		438,696		215,260
In development		243,597		—		243,597		75,978
		1,568,088		—		1,568,088		716,005
Land held for development or sale		246,682		—		246,682		88,223
Total real estate and mortgage debt	$	9,335,092	$	1,301,169	$	8,033,923	$	6,326,311

30

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Rental Properties Corporation (“Rental Properties”) is a wholly-owned subsidiary of Forest City Enterprises, Inc. 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. Consolidated Balance Sheet information and Consolidated Earnings information for Rental Properties and its subsidiaries follow.

Forest City Rental Properties Corporation and Subsidiaries
Consolidated Balance Sheet Information — January 31, 2007 (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	$	6,649,471		$	346,323		$	1,207,589		$	7,510,737
Projects under development		1,396,083			126,660			298,665			1,568,088
Land for development or sale		58,408			5,517			27,018			79,909
Total Real Estate		8,103,962			478,500			1,533,272			9,158,734
Less accumulated depreciation		(1,080,432	)		(70,863	)		(286,054	)		(1,295,623	)
Real Estate, net		7,023,530			407,637			1,247,218			7,863,111
Cash and equivalents		159,635			24,532			25,986			161,089
Restricted cash		289,081			25,028			167,610			431,663
Notes and accounts receivable, net		261,796			25,477			4,494			240,813
Investments in and advances to affiliates		279,489			—			(69,604	)		209,885
Other assets		580,911			29,260			95,462			647,113
Total Assets	$	8,594,442		$	511,934		$	1,471,166		$	9,553,674
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse	$	5,310,876		$	320,270		$	1,279,543		$	6,270,149
Notes payable		82,188			1,167			86,251			167,272
Bank revolving credit facility		—			—			—			—
Senior and subordinated debt		20,400			—			—			20,400
Accounts payable and accrued expenses(1)		1,254,846			14,714			105,372			1,345,504
Deferred income taxes		547,516			—			—			547,516
Total Liabilities		7,215,826			336,151			1,471,166			8,350,841
Minority Interest		374,428			175,783			—			198,645
Total Shareholders’ Equity		1,004,188			—			—			1,004,188
Total Liabilities and Shareholders’ Equity	$	8,594,442		$	511,934		$	1,471,166		$	9,553,674

(1) Included in the Full Consolidation balance is $635,013 of liabilities payable to Forest City Enterprises, Inc.

31

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Rental Properties Corporation and Subsidiaries
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	$	6,153,835		$	765,827		$	931,181		$	6,319,189
Projects under development		886,256			84,241			394,648			1,196,663
Land held for development or sale		38,091			3,420			15,604			50,275
Total Real Estate		7,078,182			853,488			1,341,433			7,566,127
Less accumulated depreciation		(982,249	)		(147,375	)		(269,412	)		(1,104,286	)
Real Estate, net		6,095,933			706,113			1,072,021			6,461,841
Cash and equivalents		141,471			33,026			9,675			118,120
Restricted cash		429,176			31,942			50,516			447,750
Notes and accounts receivable, net		242,952			30,562			(3,885	)		208,505
Investments in and advances to affiliates		298,596			—			(111,992	)		186,604
Other assets		429,496			37,042			93,415			485,869
Total Assets	$	7,637,624		$	838,685		$	1,109,750		$	7,908,689
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse	$	5,130,324		$	625,600		$	928,502		$	5,433,226
Notes payable		61,879			19,214			88,822			131,487
Bank revolving credit facility		82,500			—			—			82,500
Senior and subordinated debt		20,400			—			—			20,400
Accounts payable and accrued expenses(1)		985,788			91,155			92,426			987,059
Deferred income taxes		428,453			—			—			428,453
Total Liabilities		6,709,344			735,969			1,109,750			7,083,125
Minority Interest		102,716			102,716			—			—
Total Shareholders’ Equity		825,564			—			—			825,564
Total Liabilities and Shareholders’ Equity	$	7,637,624		$	838,685		$	1,109,750		$	7,908,689

(1) Included in the Full Consolidation balance is $398,895 of liabilities payable to Forest City Enterprises, Inc.

32

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Rental Properties Corporation and Subsidiaries
Consolidated Earnings Information — Year Ended January 31, 2007 (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	$	1,118,688		$	96,481		$	293,731		$	58,198		$	1,374,136
Expenses
Operating expenses		631,914			45,038			183,702			37,497			808,075
Depreciation and amortization		179,558			13,811			41,942			6,219			213,908
Provision for decline in real estate		1,923			—			400			—			2,323
		813,395			58,849			226,044			43,716			1,024,306
Interest expense, including early extinguishment of debt		(292,273	)		(24,557	)		(55,071	)		(10,053	)		(332,840	)
Amortization of mortgage procurement costs		(10,570	)		(1,076	)		(1,831	)		(192	)		(11,517	)
Interest and other income		59,528			2,754			3,116			1,504			61,394
Equity in earnings of unconsolidated entities (Note 1)		28,896			—			(21,563	)		—			7,333
Gain on disposition of rental properties		—			—			7,662			233,092			240,754
Earnings before income taxes		90,874			14,753			—			238,833			314,954
Income tax expense (benefit)
Current		(6,505	)		—			—			15,371			8,866
Deferred		45,889			—			—			76,916			122,805
		39,384			—			—			92,287			131,671
Earnings before minority interest and discontinued operations		51,490			14,753			—			146,546			183,283
Minority interest		(14,753	)		(14,753	)		—			—			—
Earnings from continuing operations(Note 1)		36,737			—			—			146,546			183,283
Discontinued operations, net of tax and minority interest
Operating earnings from rental properties		3,520			—			—			(3,520	)		—
Gain on disposition of rental properties		143,026			—			—			(143,026	)		—
		146,546			—			—			(146,546	)		—
Net earnings	$	183,283		$	—		$	—		$	—		$	183,283

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 year ended January 31, 2007, 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.

33

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Rental Properties Corporation and Subsidiaries
Consolidated Earnings Information — Year Ended January 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	$	1,099,473		$	129,043		$	273,959		$	115,392		$	1,359,781
Expenses
Operating expenses		585,022			55,114			168,761			78,436			777,105
Depreciation and amortization		163,293			15,341			39,783			17,858			205,593
Provision for decline in real estate		6,356			1,432			704			—			5,628
		754,671			71,887			209,248			96,294			988,326
Interest expense, including early extinguishment of debt		(261,013	)		(28,667	)		(52,269	)		(30,062	)		(314,677	)
Amortization of mortgage procurement costs		(9,610	)		(1,066	)		(2,963	)		(1,790	)		(13,297	)
Interest and other income		26,031			2,604			1,078			543			25,048
Equity in earnings of unconsolidated entities (Note 1)		34,588			—			(31,580	)		—			3,008
Gain on disposition of rental properties		—			—			21,023			43,198			64,221
Earnings before income taxes		134,798			30,027			—			30,987			135,758
Income tax expense (benefit)
Current		2,968			—			—			(6,960	)		(3,992	)
Deferred		25,963			—			—			18,940			44,903
		28,931			—			—			11,980			40,911
Earnings before minority interest and discontinued operations		105,867			30,027			—			19,007			94,847
Minority interest		(30,027	)		(30,027	)		—			—			—
Earnings from continuing operations(Note 1)		75,840			—			—			19,007			94,847
Discontinued operations, net of tax and minority interest
Operating loss from rental properties		(7,498	)		—			—			7,498			—
Gain on disposition of rental properties		26,505			—			—			(26,505	)		—
		19,007			—			—			(19,007	)		—
Net earnings	$	94,847		$	—		$	—		$	—		$	94,847

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 year ended January 31, 2006, three equity method investments were sold,Showcase,Colony Place, andFlower Park Plaza.A pre-tax gain of $21,023 ($12,900 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.

34

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

The following is a summary of the real estate activity of the Company’s Real Estate Groups as presented on pro-rata consolidation including a reconciliation from full consolidation to pro-rata consolidation.

Forest City Rental Properties Corporation — Real Estate Activity⁽¹⁾

	Pro-Rata Consolidation (Non-GAAP)
	January 31,
	2007			2006			2005			2004			2003
	(in thousands)
Forest City Rental Properties Corporation – Real Estate Activity(1)
Real estate – end of year
Completed rental properties	$	7,510,737		$	6,319,189		$	5,776,806		$	4,786,035		$	4,082,080
Projects under development		1,568,088			1,196,663			869,265			541,476			575,558
Land held for development or sale		79,909			50,275			53,007			53,089			51,751
Real estate, at cost		9,158,734			7,566,127			6,699,078			5,380,600			4,709,389
Less accumulated depreciation		(1,295,623	)		(1,104,286	)		(975,063	)		(816,395	)		(697,055	)
Total real estate	$	7,863,111		$	6,461,841		$	5,724,015		$	4,564,205		$	4,012,334
Real estate activity during the year
Completed rental properties
Capital expenditures	$	87,237		$	66,239		$	127,486		$	38,890		$	43,266
Transferred from projects under development		547,667			534,820			612,111			377,578			305,982
Acquisitions		314,779			58,667			115,185			374,305			172,860
Exchange of cash and Class A Common Units for partner’s interest		228,958			—			—			—			—
Other(7)		310,275			81,396			337,293			—			—
Total additions		1,488,916			741,122			1,192,075			790,773			522,108
Dispositions		(297,368	)(2)		(198,739	)(3)		(201,304	)(4)		(86,818	)(5)		(54,448	)(6)
Completed rental properties, net additions		1,191,548			542,383			990,771			703,955			467,660
Projects under development
New development		957,227			926,217			885,320			343,496			397,810
Transferred to completed rental properties		(547,667	)		(534,820	)		(612,111	)		(377,578	)		(305,982	)
Cost of Land Sales		(38,135	)		(63,999	)		—			—			—
Other		—			—			54,580			—			—
Projects under development, net additions		371,425			327,398			327,789			(34,082	)		91,828
Land held for development or sale, net change		29,634			(2,732	)		(82	)		1,338			(7,624	)
Increase in real estate, at cost	$	1,592,607		$	867,049		$	1,318,478		$	671,211		$	551,864

35

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Rental Properties Corporation — Real Estate Activity⁽¹⁾— (Continued)

							Plus
							Unconsolidated			Pro-Rata
	Full			Less Minority			Investments at			Consolidation
Years Ended January 31,	Consolidation			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
2007
Real estate – end of year
Completed rental properties	$	6,649,471		$	346,323		$	1,207,589		$	7,510,737
Projects under development		1,396,083			126,660			298,665			1,568,088
Land held for development or sale		58,408			5,517			27,018			79,909
Real estate, at cost		8,103,962			478,500			1,533,272			9,158,734
Less accumulated depreciation		(1,080,432	)		(70,863	)		(286,054	)		(1,295,623	)
Total real estate	$	7,023,530		$	407,637		$	1,247,218		$	7,863,111
Real estate activity during the year
Completed rental properties
Capital expenditures	$	78,663		$	17,488		$	26,062		$	87,237
Transferred from projects under development		359,649			6,835			194,853			547,667
Acquisitions		218,763			17,785			113,801			314,779
Exchange of cash and Class A Common Units for partner’s interest		228,958			—			—			228,958
Other(7)		32,884			(330,388	)		(52,997	)		310,275
Total additions		918,917			(288,280	)		281,719			1,488,916
Dispositions		(423,281	)		(131,224	)		(5,311	)		(297,368)	(2)
Completed rental properties, net additions		495,636			(419,504	)		276,408			1,191,548
Projects under development
New development		898,561			49,927			108,593			957,227
Transferred to completed rental properties		(359,649	)		(6,835	)		(194,853	)		(547,667	)
Cost of Land Sales		(29,085	)		(673	)		(9,723	)		(38,135	)
Projects under development, net additions		509,827			42,419			(95,983	)		371,425
Land held for development or sale, net change		20,317			2,097			11,414			29,634
Increase (decrease) in real estate, at cost	$	1,025,780		$	(374,988	)	$	191,839		$	1,592,607
2006
Real estate – end of year
Completed rental properties	$	6,153,835		$	765,827		$	931,181		$	6,319,189
Projects under development		886,256			84,241			394,648			1,196,663
Land held for development or sale		38,091			3,420			15,604			50,275
Real estate, at cost		7,078,182			853,488			1,341,433			7,566,127
Less accumulated depreciation		(982,249	)		(147,375	)		(269,412	)		(1,104,286	)
Total real estate	$	6,095,933		$	706,113		$	1,072,021		$	6,461,841
Real estate activity during the year
Completed rental properties
Capital expenditures	$	78,132		$	1,855		$	(10,038	)	$	66,239
Transferred from projects under development		490,278			11,968			56,510			534,820
Acquisitions		58,667			—			—			58,667
Other(7)		—			(86,432	)		(5,036	)		81,396
Total additions		627,077			(72,609	)		41,436			741,122
Dispositions		(164,403	)		(5,195	)		(39,531	)		(198,739	)(3)
Completed rental properties, net additions		462,674			(77,804	)		1,905			542,383
Projects under development
New development		807,768			78,696			197,145			926,217
Transferred to completed rental properties		(490,278	)		(11,968	)		(56,510	)		(534,820	)
Cost of Commercial Group Land Sales		(65,675	)		(2,787	)		(1,111	)		(63,999	)
Projects under development, net additions		251,815			63,941			139,524			327,398
Land held for development or sale, net change		(2,455	)		(157	)		(434	)		(2,732	)
Increase in real estate, at cost	$	712,034		$	(14,020	)	$	140,995		$	867,049

36

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Rental Properties Corporation — Real Estate Activity⁽¹⁾— (Continued)

							Plus
							Unconsolidated			Pro-Rata
	Full			Less Minority			Investments at			Consolidation
Years Ended January 31,	Consolidation			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
2005
Real estate – end of year
Completed rental properties	$	5,691,161		$	843,631		$	929,276		$	5,776,806
Projects under development		634,441			20,300			255,124			869,265
Land held for development or sale		40,546			3,577			16,038			53,007
Real estate, at cost		6,366,148			867,508			1,200,438			6,699,078
Less accumulated depreciation		(861,516	)		(141,674	)		(255,221	)		(975,063	)
Total real estate	$	5,504,632		$	725,834		$	945,217		$	5,724,015
Real estate activity during the year
Completed rental properties
Capital expenditures	$	93,664		$	11,524		$	45,346		$	127,486
Transferred from projects under development		643,324			39,168			7,955			612,111
Acquisitions		108,076			(6,201	)		908			115,185
Other(7)		538,173			111,815			(89,065	)		337,293
Total additions		1,383,237			156,306			(34,856	)		1,192,075
Dispositions		(187,651	)		(18,721	)		(32,374	)		(201,304	)(4)
Completed rental properties, net additions		1,195,586			137,585			(67,230	)		990,771
Projects under development
New development		771,183			44,142			158,279			885,320
Transferred to completed rental properties		(643,324	)		(39,168	)		(7,955	)		(612,111	)
Other		—			(54,580	)		—			54,580
Projects under development, net transfers		127,859			(49,606	)		150,324			327,789
Land held for development or sale, net change		3,142			484			(2,740	)		(82	)
Increase in real estate, at cost	$	1,326,587		$	88,463		$	80,354		$	1,318,478
2004
Real estate – end of year
Completed rental properties	$	4,495,575		$	706,046		$	996,506		$	4,786,035
Projects under development		506,582			69,906			104,800			541,476
Land held for development or sale		37,404			3,093			18,778			53,089
Real estate, at cost		5,039,561			779,045			1,120,084			5,380,600
Less accumulated depreciation		(710,986	)		(109,941	)		(215,350	)		(816,395	)
Total real estate	$	4,328,575		$	669,104		$	904,734		$	4,564,205
Real estate activity during the year
Completed rental properties
Capital expenditures	$	36,159		$	4,806		$	7,537		$	38,890
Transferred from projects under development		304,321			53,599			126,856			377,578
Acquisitions		382,472			24,021			15,854			374,305
Total additions		722,952			82,426			150,247			790,773
Dispositions		(68,179	)		(10,384	)		(29,023	)		(86,818	)(5)
Completed rental properties, net additions		654,773			72,042			121,224			703,955
Projects under development
New development		274,469			48,953			117,980			343,496
Transferred to completed rental properties		(304,321	)		(53,599	)		(126,856	)		(377,578	)
Projects under development, net additions		(29,852	)		(4,646	)		(8,876	)		(34,082	)
Land held for development or sale, net change		1,362			213			189			1,338
Increase in real estate, at cost	$	626,283		$	67,609		$	112,537		$	671,211

37

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Rental Properties Corporation — Real Estate Activity⁽¹⁾— (Continued)

							Plus
							Unconsolidated			Pro-Rata
	Full			Less Minority			Investments at			Consolidation
Years Ended January 31,	Consolidation			Interest			Pro-Rata			(Non-GAAP)
				(in thousands)
2003
Real estate – end of year
Completed rental properties	$	3,840,802		$	634,004		$	875,282		$	4,082,080
Projects under development		536,434			74,552			113,676			575,558
Land held for development or sale		36,042			2,880			18,589			51,751
Real estate, at cost		4,413,278			711,436			1,007,547			4,709,389
Less accumulated depreciation		(597,787	)		(96,033	)		(195,301	)		(697,055	)
Total real estate	$	3,815,491		$	615,403		$	812,246		$	4,012,334
Real estate activity during the year
Completed rental properties
Capital expenditures	$	37,909		$	14,539		$	19,896		$	43,266
Transferred from projects under development		265,720			26,514			66,776			305,982
Acquisitions		158,872			24			14,012			172,860
Total additions		462,501			41,077			100,684			522,108
Dispositions		(53,268	)		(61	)		(1,241	)		(54,448	)(6)
Completed rental properties, net additions		409,233			41,016			99,443			467,660
Projects under development
New development		383,459			61,947			76,298			397,810
Transferred to completed rental properties		(265,720	)		(26,514	)		(66,776	)		(305,982	)
Projects under development, net transfers		117,739			35,433			9,522			91,828
Land held for development or sale, net additions		(6,467	)		(495	)		(1,652	)		(7,624	)
Increase in real estate, at cost	$	520,505		$	75,954		$	107,313		$	551,864

(1)	The table includes only the real estate activity for the Company’s Real Estate Groups 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.
(2)	Primarily reflects the dispositions ofProvidence at Palm Harbor,Mount Vernon Square,Midtown Plaza,G Street,Battery Park City,Embassy Suites Hotel, andHilton Times Square.Providence at Palm Harboris a 236-units apartment community in Tampa, Florida.Mount Vernon Squareis a 1,387-units apartment community in Alexandria, Virginia.Midtown Plazahas 240,000 square feet in Parma, Ohio.G Streethas 13,000 square feet in Philadelphia, Pennsylvania.Battery Park Cityhas 166,000 square feet in Manhattan, New York.Embassy Suites HotelandHilton Times Squarehave 463 and 444 rooms respectively in Manhattan, New York.
(3)	Primarily reflects the dispositions ofCherrywood Village, Ranchstone, Colony Place, Enclave, Flower Park,andShowcase.Cherrywood VillageandRanchstoneare apartment communities in Denver, Colorado with 360 and 368 units, respectively.Colony Placeis a 300-unit apartment community in Fort Myers, Florida.Enclaveis a 637-unit apartment community in San Jose, California.Flower Parkis a 199-unit apartment community in Santa Ana, California.Showcase has 186,000 square feet in Las Vegas, Nevada.
(4)	Primarily reflects the dispositions ofWoodlake, Regency Towers, Bridgewater, Arboretum Place, Trellis at Lee’s Mill, Silver Hill, Colony Woods, Manhattan Town Center, Chapel Hill Mall, Chapel Hill Suburban, Pavilion, Flatbush Avenue,andHunting Park.Woodlakeis a 534-unit apartment community in Silver Spring, Maryland.Regency Towersis a 372-unit apartment community in Jackson, New Jersey.Arboretum Place, Silver Hill, andTrellis at Lee’s Millare apartment communities in Newport News, Virginia with 184, 153 and 176 units, respectively.Bridgewateris a 216-unit apartment community in Hampton, Virginia.Colony Woodsis a 396-unit apartment community in Bellevue, Washington.Chapel Hill MallandChapel Hill Suburbanhave 860,000 and 117,000 square feet, respectively in Akron, Ohio.Pavilionhas 250,000 square feet in San Jose, California.Flatbush Avenuehas 142,000 square feet in Brooklyn, New York.Hunting Parkhas 125,000 square feet in Philadelphia, Pennsylvania.Manhattan Town Centerhas 392,000 square feet in Manhattan, Kansas.
(5)	Primarily reflects the dispositions ofWaterford Village, LaurelsandVineyards. Waterford Villageis a 576-unit apartment community in Indianapolis, Indiana.Laurelsis a 520-unit apartment community in Justice, Illinois andVineyardsis a 386-unit apartment community in Broadview Heights, Ohio.
(6)	Primarily reflects the dispositions ofCourtland CenterandBay Street. Courtland Centerhas 458,000 square feet in Flint, Michigan.Bay Streethas 16,000 square feet in Staten Island, New York.
(7)	Primarily relates to changes in ownership percentage and non cash items.

38

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Results of Operations

Net Earnings —Net earnings for the year ended January 31, 2007 were $177,251,000 versus $83,519,000 for the year ended January 31, 2006. Although we have substantial recurring revenue sources from our properties, we also enter into significant one-time transactions, which could create substantial variances in net earnings between periods. This variance to the prior year is primarily attributable to the following increases, which are net of tax and minority interest:

• $143,026,000 ($233,092,000, pre-tax) related to the 2006 gains on disposition of six consolidated properties,Mount Vernon Square, an apartment community located in Alexandria, Virginia,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,a 463-room hotel located in Manhattan, New York, andBattery Park City, a retail center located in Manhattan, New York;

• $15,781,000 ($25,719,000, pre-tax) related to income recognition on the sale of state and federal Historical Preservation Tax Credits;

• $5,765,000 ($9,831,000, pre-tax) related to the decreased losses from our equity investment in the New Jersey Nets basketball team; and

• $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.

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

• $26,505,000 ($43,198,000, pre-tax) related to the 2005 gains on disposition of three consolidated properties,Enclave, an apartment community located in San Jose, California, andCherrywood VillageandRanchstone, apartment communities located in Denver, Colorado;

• $9,913,000 ($16,155,000, 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, $7,174,000, pre-tax, in outlot land sales for our consolidated properties primarily atVictoria Gardens,Simi ValleyandWadsworth, and $4,528,000, pre-tax, related to the sale of a development project in Las Vegas, Nevada. These decreases were partially offset by increased land sales of $2,555,000, pre-tax, for our unconsolidated properties atVictor VillageandCharleston Mall;

• $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, an apartment community located in Santa Ana, California;

• $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 2005;

• $5,759,000 ($9,386,000, pre-tax) related to the fair market value adjustments of certain of our 10-year forward swaps which were marked to market as additional interest expense as a result of the derivatives not qualifying for hedge accounting;

• $3,583,000 ($5,840,000, pre-tax) related to our development fee revenue atTwelve MetroTech Centerthat did not recur; and

• $3,469,000 ($4,738,000, pre-tax) related to the expensing of stock options upon our adoption of SFAS No. 123 (Revised), “Share-Based Payment” (“SFAS No. 123(R)”), on February 1, 2006.

Net earnings for the year ended January 31, 2006 were $83,519,000 versus $85,206,000 for the year ended January 31, 2005. This variance to the prior year is primarily attributable to the following decreases, which are net of tax and minority interest:

• $40,893,000 ($67,645,000, pre-tax) related to the 2004 gains on disposition of ten consolidated properties,Regency Towers,Woodlake, Bridgewater, Pavilion, Trellis at Lee’s Mill, Hunting Park, Arboretum, Flatbush Avenue, Colony WoodsandSilver Hill;

• $19,341,000 ($31,996,000, pre-tax) due to the gains on disposition of three equity method properties in 2004,Manhattan Town Center Mall, a regional mall located in Manhattan, Kansas,Chapel Hill Suburban, a specialty retail center located in Akron, Ohio andChapel Hill Mall, a regional mall located in Akron, Ohio;

39

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

• $13,745,000 ($22,737,000, pre-tax) related to Stapleton Land, LLC’s retained interest in a trust. Of this amount, $12,445,000 was earned in 2004 but attributable to other comprehensive income (“OCI”) in previous fiscal years and deferred until 2004 under the cost recovery method. The remaining amount of $1,300,000 was earned and recognized during the year ended January 31, 2005;

• $11,501,000 ($20,920,000, pre-tax) related to the 2004 gain on disposition of Lumber Group and a decrease of $4,545,000 ($9,390,000 pre-tax) related to Lumber Group’s 2004 earnings with no corresponding amount in 2005;

• $9,999,000 ($13,645,000, pre-tax) related to our increased loss from our equity investment in the New Jersey Nets basketball team, which we did not own during the first half of 2004;

• $8,134,000 ($13,552,000, pre-tax) related to our development fee revenue atTwelve MetroTech Centerthat did not recur at the same level in 2005; and

• $5,981,000 in interest expense as a result of the issuance of $150,000,000 senior notes in January 2005.

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

• $26,830,000 ($48,001,000 pre-tax) related to increases in Commercial Group sales of land, outlots, and development projects. These increases are made up of $7,008,000, pre-tax, related to the 2005 land sale atTwelve MetroTech Center, $34,195,000, pre-tax, in outlot land sales for our consolidated properties primarily atVictoria Gardens andSimi Valley, $4,528,000, pre-tax, related to the sale of a development project in Las Vegas, Nevada, and $2,270,000, pre-tax, related to land sales for our unconsolidated properties;

• $26,505,000 ($43,198,000, pre-tax) related to the 2005 gains on disposition of three consolidated residential properties,Enclave, Cherrywood VillageandRanchstone;

• $23,706,000 ($37,892,000, pre-tax) related to land sales reported in the Land Development Group primarily atGrass Farms in Manatee County, Florida,Central Station in Chicago, Illinois andStapleton in Denver, Colorado;

• $12,900,000 ($21,023,000, pre-tax) related to the 2005 gains on disposition of three equity method properties,Showcase,Colony PlaceandFlower Park Plaza;

• $11,261,000 related to the prior year charge for cumulative effect of change in accounting principle as a result of our implementation of FIN No. 46 (R), which did not recur; and

• $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 2005.

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 January 31, 2007 was $168,969,000 compared to $145,992,000 for the three months ended January 31, 2006, a 15.7% increase. NOI for the year ended January 31, 2007 was $544,786,000 compared to $518,927,000 for the year ended January 31, 2006, a 5.0% increase. A reconciliation of NOI to the most comparable GAAP measure, net earnings, is presented on pages 9-10. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 44-55.

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 January 31, 2007 was $174,850,000 compared to $138,371,000 for the three months ended January 31, 2006, a 26.4% increase. NOI for the year ended January 31, 2007 was $570,569,000 compared to $537,016,000 for the year ended January 31, 2006, a 6.2% increase. Comparable NOI increased 4.9% for the year ended January 31, 2007 compared to the prior year. Comparable NOI for our retail portfolio is up 4.9% from the prior year and our residential portfolio has generated an increase of 6.5%. Including the expected NOI for the twelve months following stabilization for the properties that were opened, expanded or acquired through

40

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

January 31, 2007, less the actual annual NOI of property disposals through January 31, 2007, NOI for Real Estate Groups would be approximately $620,000,000 for the year ended January 31, 2007. This amount includes Commercial Group land sales of $35,100,000 and income recognition on the sale of state and federal Historical Preservation Tax Credits of $25,719,000.

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.

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 year ended January 31, 2007 increased by 5.3% to $284,954,000 from $270,496,000 for the year ended January 31, 2006. This variance to the prior year is primarily attributable to the strong performance of our Commercial and Residential operating portfolios, as evidenced by comparable NOI growth, improved occupancies, and NOI generated from new property openings. EBDT in our comparable portfolio increased $8,592,000. In addition, EBDT was impacted by increases in our Military Housing business of $6,143,000, Historic Preservation Tax Credit income of $25,719,000 and decreased losses from the Nets of $5,765,000. These increases were partially offset by the consequences of our rate hedging transactions of $9,386,000, decreases in Commercial land sales and development fees of $19,104,000 and the expensing of stock options of $3,800,000 upon our adoption of SFAS No. 123 (Revised), “Share-Based Payment.”

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 $3,469,000 and $3,807,000, respectively, for the year ended January 31, 2007. Diluted net earnings per share and EBDT per share were lower by $0.03 for the year ended January 31, 2007 due to SFAS No. 123(R).

Summary of EBDT — The information in the tables on pages 42-53 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.

41

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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

	Three Months Ended January 31,						Years Ended January 31,
	2007			2006			2007			2006
	(in thousands)						(in thousands)
Net earnings	$	70,626		$	28,235		$	177,251		$	83,519
Depreciation and amortization – Real Estate Groups(4)		57,938			54,202			206,745			192,715
Amortization of mortgage procurement costs – Real Estate Groups(4)		2,900			2,919			10,998			11,578
Deferred income tax expense – Real Estate Groups(5)		47,102			26,089			120,230			43,981
Deferred income tax expense – Non Real-Estate Groups:(5)
Gain on disposition of other investments		294			(39	)		294			135
Provision for decline in real estate recorded on equity method		—			—			—			—
Provision for decline in real estate		—			(587	)		—			(587	)
Current income tax expense on non-operating earnings:(5)
Gain on disposition of other investments		—			—			—			60
Gain on disposition included in discontinued operations		(3,369	)		(811	)		13,829			(811	)
Gain on disposition of equity method rental properties		—			—			2,657			8,147
Straight-line rent adjustment(3)		(4,198	)		(4,477	)		(8,757	)		(10,660	)
Preference payment		898			—			898			—
Provision for decline in real estate, net of minority interest		—			1,748			1,923			6,442
Provision for decline in real estate of equity method rental properties		—			—			400			704
Gain on disposition of equity method rental properties		—			—			(7,662	)		(21,023	)
Loss (gain) on disposition of other investments		—			100			—			(506	)
Discontinued operations:(1)
Gain on disposition of rental properties		(64,641	)		(33,722	)		(351,861	)		(43,198	)
Minority interest – Gain on disposition		—			—			118,009			—
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)(2)	$	107,550		$	73,657		$	284,954		$	270,496

(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						Years Ended						Three Months Ended						Years Ended
	January 31,						January 31,						January 31,						January 31,
	2007			2006			2007			2006			2007			2006			2007			2006
Full Consolidation	$	52,793		$	46,124		$	181,129		$	164,397		$	2,695		$	2,534		$	10,903		$	9,979
Non-Real Estate Groups		(639	)		(368	)		(1,571	)		(1,104	)		(97	)		(83	)		(333	)		(369	)
Real Estate Groups Full Consolidation		52,154			45,756			179,558			163,293			2,598			2,451			10,570			9,610
Real Estate Groups related to minority interest		(3,097	)		(2,233	)		(13,811	)		(15,341	)		(161	)		(84	)		(1,076	)		(1,066	)
Real Estate Groups Equity Method		8,867			7,080			34,779			26,905			452			338			1,312			1,244
Real Estate Groups Discontinued Operations		14			3,599			6,219			17,858			11			214			192			1,790
Real Estate Groups Pro-Rata Consolidation	$	57,938		$	54,202		$	206,745		$	192,715		$	2,900		$	2,919		$	10,998		$	11,578

42

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 January 31,						Years Ended January 31,
		2007			2006			2007			2006
		(in thousands)						(in thousands)
(A)	Operating earnings
	Current	$	1,119		$	(3,057	)	$	(16,085	)	$	(4,207	)
	Deferred		23,165			8,227			48,433			24,215
			24,284			5,170			32,348			20,008
(B)	Provision for decline in real estate
	Deferred		—			(676	)		(743	)		(2,490	)
	Deferred-Equity method investment		—			—			(155	)		(272	)
			—			(676	)		(898	)		(2,762	)
(C)	Gain on disposition of other investments
	Current – Non-Real Estate Groups		—			—			—			60
	Deferred – Non-Real Estate Groups		—			(39	)		—			135
			—			(39	)		—			195
(D)	Gain on disposition of equity method rental properties
	Current		—			—			2,657			8,147
	Deferred		—			—			305			(24	)
		��	—			—			2,962			8,123
	Subtotal (A) (B) (C) (D)
	Current		1,119			(3,057	)		(13,428	)		4,000
	Deferred		23,165			7,512			47,840			21,564
	Income tax expense		24,284			4,455			34,412			25,564
(E)	Discontinued operations – Rental Properties
	Operating earnings
	Current		49			(1,663	)		1,542			(6,149	)
	Deferred		138			(319	)		679			1,436
			187			(1,982	)		2,221			(4,713	)
	Gain on disposition of rental properties
	Current		(3,369	)		(811	)		13,829			(811	)
	Deferred		28,053			13,842			76,237			17,504
			24,684			13,031			90,066			16,693
			24,871			11,049			92,287			11,980
	Deferred gain on disposition of Lumber Group
	Current		—			—			—			—
	Deferred		294			—			294			—
			294			—			294			—
	Subtotal		25,165			11,049			92,581			11,980
	Grand Total (A) (B) (C) (D) (E)
	Current		(2,201	)		(5,531	)		1,943			(2,960	)
	Deferred		51,650			21,035			125,050			40,504
		$	49,449		$	15,504		$	126,993		$	37,544
	Recap of Grand Total:
	Real Estate Groups
	Current		98			(8,215	)		15,802			5,356
	Deferred		47,102			26,089			120,230			43,981
			47,200			17,874			136,032			49,337
	Non-Real Estate Groups
	Current		(2,299	)		2,684			(13,859	)		(8,316	)
	Deferred		4,548			(5,054	)		4,820			(3,477	)
			2,249			(2,370	)		(9,039	)		(11,793	)
	Grand Total	$	49,449		$	15,504		$	126,993		$	37,544

43

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2007(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	$	242,641		$	13,874		$	36,189		$	(318	)	$	264,638		$	66,352		$	2,435	$	48,782		$	2,437		$	115,136
Exclude straight-line rent adjustment		(7,020	)		—			—			—			(7,020	)		24			—		—			—			24
Adjusted revenues		235,621			13,874			36,189			(318	)		257,618			66,376			2,435		48,782			2,437			115,160
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		135,906			3,815			21,446			173			153,710			45,822			1,230		32,498			1,227			78,317
Exclude straight-line rent adjustment		(2,797	)		—			—			—			(2,797	)		—			—		—			—			—
Exclude preference payment		(898	)		—			—			—			(898	)		—			—		—			—			—
Adjusted operating expenses		132,211			3,815			21,446			173			150,015			45,822			1,230		32,498			1,227			78,317
Add interest and other income		3,582			(579	)		1,813			272			6,246			20,465			10		575			606			21,636
Add equity in earnings of unconsolidated entities		9,189			—			(6,124	)		—			3,065			2,450			—		(2,993	)		—			(543	)
Add back equity method depreciation and amortization expense		3,970			—			(3,970	)		—			—			5,349			—		(5,349	)		—			—
Net operating income		120,151			9,480			6,462			(219	)		116,914			48,818			1,215		8,517			1,816			57,936
Interest expense, including early extinguishment of debt		47,745			3,655			6,462			(44	)		50,508			20,665			825		8,517			1,137			29,494
Income tax expense (benefit)		(3,414	)		—			—			(70	)		(3,484	)		9,683			—		—			119			9,802
Minority interest in earnings before depreciation and amortization		5,825			5,825			—			—			—			390			390		—			—			—
Add: EBDT from discontinued operations		(105	)		—			—			105			—			560			—		—			(560	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	69,890		$	—		$	—		$	—		$	69,890		$	18,640		$	—	$	—		$	—		$	18,640
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	69,890		$	—		$	—		$	—		$	69,890		$	18,640		$	—	$	—		$	—		$	18,640
Depreciation and amortization – Real Estate Groups		(39,024	)		—			—			—			(39,024	)		(18,855	)		—		—			(14	)		(18,869	)
Amortization of mortgage procurement costs – Real Estate Groups		(2,129	)		—			—			—			(2,129	)		(760	)		—		—			(11	)		(771	)
Deferred taxes – Real Estate Groups		(14,321	)		—			—			(4	)		(14,325	)		6,555			—		—			(134	)		6,421
Straight-line rent adjustment		4,223			—			—			—			4,223			(24	)		—		—			—			(24	)
Preference payment		(898	)		—			—			—			(898	)		—			—		—			—			—
Gain on disposition of rental properties, net of tax		—			—			—			—			—			—			—		—			39,197			39,197
Discontinued operations, net of tax and minority interest:
Depreciation and amortization – Real Estate Groups		—			—			—			—			—			(14	)		—		—			14			—
Amortization of mortgage procurement costs – Real Estate Groups		—			—			—			—			—			(11	)		—		—			11			—
Deferred taxes – Real Estate Groups		(4	)		—			—			4			—			(134	)		—		—			134			—
Straight-line rent adjustment		—			—			—			—			—			—			—		—			—			—
Gain on disposition of rental properties		—			—			—			—			—			39,197			—		—			(39,197	)		—
Deferred gain on disposition of Lumber Group		—			—			—			—			—			—			—		—			—			—
Net earnings	$	17,737		$	—		$	—		$	—		$	17,737		$	44,594		$	—	$	—		$	—		$	44,594

44

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2007(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	$	51,386		$	4,080	$	60,303		$	—	$	107,609		$	—		$	—	$	—	$	—	$	—
Exclude straight-line rent adjustment		1			—		—			—		1			—			—		—		—		—
Adjusted revenues		51,387			4,080		60,303			—		107,610			—			—		—		—		—
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		33,138			2,470		39,648			—		70,316			—			—		631		—		631
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Exclude preference payment		—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses		33,138			2,470		39,648			—		70,316			—			—		631		—		631
Add interest and other income		6,818			659		112			—		6,271			—			—		1		—		1
Add equity in earnings of unconsolidated entities		21,710			—		(20,637	)		—		1,073			(619	)		—		631		—		12
Add back equity method depreciation and amortization expense		—			—		—			—		—			—			—		—		—		—
Net operating income		46,777			2,269		130			—		44,638			(619	)		—		1		—		(618	)
Interest expense, including early extinguishment of debt		2,368			170		130			—		2,328			—			—		1		—		1
Income tax expense (benefit)		5,473			—		—			—		5,473			1,417			—		—		—		1,417
Minority interest in earnings before depreciation and amortization		2,099			2,099		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	36,837		$	—	$	—		$	—	$	36,837		$	(2,036	)	$	—	$	—	$	—	$	(2,036	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	36,837		$	—	$	—		$	—	$	36,837		$	(2,036	)	$	—	$	—	$	—	$	(2,036	)
Depreciation and amortization – Real Estate Groups		(45	)		—		—			—		(45	)		—			—		—		—		—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes – Real Estate Groups		(11,725	)		—		—			—		(11,725	)		—			—		—		—		—
Straight-line rent adjustment		(1	)		—		—			—		(1	)		—			—		—		—		—
Preference payment		—			—		—			—		—			—			—		—		—		—
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		—			—		—			—		—			—			—		—		—		—
Deferred gain on disposition of Lumber Group		—			—		—			—		—			—			—		—		—		—
Net earnings	$	25,066		$	—	$	—		$	—	$	25,066		$	(2,036	)	$	—	$	—	$	—	$	(2,036	)

45

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2007(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	$	—		$	—	$	—	$	—		$	—		$	360,379		$	20,389	$	145,274		$	2,119		$	487,383
Exclude straight-line rent adjustment		—			—		—		—			—			(6,995	)		—		—			—			(6,995	)
Adjusted revenues		—			—		—		—			—			353,384			20,389		145,274			2,119			480,388
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		11,335			—		—		—			11,335			226,201			7,515		94,223			1,400			314,309
Exclude straight-line rent adjustment		—			—		—		—			—			(2,797	)		—		—			—			(2,797	)
Exclude preference payment		—			—		—		—			—			(898	)		—		—			—			(898	)
Adjusted operating expenses		11,335			—		—		—			11,335			222,506			7,515		94,223			1,400			310,614
Add interest and other income		898			—		—		—			898			31,763			90		2,501			878			35,052
Add equity in earnings of unconsolidated entities		1			—		—		—			1			32,731			—		(29,123	)		—			3,608
Add back equity method depreciation and amortization expense		—			—		—		—			—			9,319			—		(9,319	)		—			—
Net operating income		(10,436	)		—		—		—			(10,436	)		204,691			12,964		15,110			1,597			208,434
Interest expense, including early extinguishment of debt		13,131			—		—		—			13,131			83,909			4,650		15,110			1,093			95,462
Income tax expense (benefit)		(7,786	)		—		—		—			(7,786	)		5,373			—		—			49			5,422
Minority interest in earnings before depreciation and amortization		—			—		—		—			—			8,314			8,314		—			—			—
Add: EBDT from discontinued operations		—			—		—		—			—			455			—		—			(455	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(15,781	)	$	—	$	—	$	—		$	(15,781	)	$	107,550		$	—	$	—		$	—		$	107,550
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(15,781	)	$	—	$	—	$	—		$	(15,781	)	$	107,550		$	—	$	—		$	—		$	107,550
Depreciation and amortization – Real Estate Groups		—			—		—		—			—			(57,924	)		—		—			(14	)		(57,938	)
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—			—			(2,889	)		—		—			(11	)		(2,900	)
Deferred taxes – Real Estate Groups		580			—		—		—			580			(18,911	)		—		—			(138	)		(19,049	)
Straight-line rent adjustment		—			—		—		—			—			4,198			—		—			—			4,198
Preference payment		—			—		—		—			—			(898	)		—		—			—			(898	)
Gain on disposition of rental properties, net of tax		—			—		—		466			466			—			—		—			39,663			39,663
Discontinued operations, net of tax and minority interest:
Depreciation and amortization – Real Estate Groups		—			—		—		—			—			(14	)		—		—			14			—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—			—			(11	)		—		—			11			—
Deferred taxes – Real Estate Groups		—			—		—		—			—			(138	)		—		—			138			—
Straight-line rent adjustment		—			—		—		—			—			—			—		—			—			—
Gain on disposition of rental properties		—			—		—		—			—			39,197			—		—			(39,197	)		—
Deferred gain on disposition of Lumber Group		466			—		—		(466	)		—			466			—		—			(466	)		—
Net earnings	$	(14,735	)	$	—	$	—	$	—		$	(14,735	)	$	70,626		$	—	$	—		$	—		$	70,626

46

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2007(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	$	811,315		$	80,330	$	110,529		$	41,880		$	883,394		$	240,290		$	9,482	$	143,042		$	16,318		$	390,168
Exclude straight-line rent adjustment		(15,965	)		—		—			(44	)		(16,009	)		12			—		—			—			12
Adjusted revenues		795,350			80,330		110,529			41,836			867,385			240,302			9,482		143,042			16,318			390,180
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		428,132			35,829		64,952			30,943			488,198			164,496			5,434		86,731			6,554			252,347
Exclude straight-line rent adjustment		(6,299	)		—		—			(938	)		(7,237	)		—			—		—			—			—
Exclude preference payment		(898	)		—		—			—			(898	)		—			—		—			—			—
Adjusted operating expenses		420,935			35,829		64,952			30,005			480,063			164,496			5,434		86,731			6,554			252,347
Add interest and other income		8,019			993		1,825			878			9,729			33,663			34		1,249			626			35,504
Add equity in earnings of unconsolidated entities		23,936			—		(22,037	)		—			1,899			118			—		(1,836	)		—			(1,718	)
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		12,438			—		(12,438	)		—			—			23,653			—		(23,653	)		—			—
Net operating income		411,546			45,494		20,189			12,709			398,950			133,240			4,082		32,071			10,390			171,619
Interest expense, including early extinguishment of debt		179,164			20,795		20,189			5,296			183,854			59,853			3,111		32,071			4,757			93,570
Income tax expense (benefit)		2,708			—		—			152			2,860			1,274			—		—			1,390			2,664
Minority interest in earnings before depreciation and amortization		24,699			24,699		—			—			—			971			971		—			—			—
Add: EBDT from discontinued operations		7,261			—		—			(7,261	)		—			4,243			—		—			(4,243	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	212,236		$	—	$	—		$	—		$	212,236		$	75,385		$	—	$	—		$	—		$	75,385
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	212,236		$	—	$	—		$	—		$	212,236		$	75,385		$	—	$	—		$	—		$	75,385
Depreciation and amortization – Real Estate Groups		(131,182	)		—		—			(3,497	)		(134,679	)		(69,184	)		—		—			(2,722	)		(71,906	)
Amortization of mortgage procurement costs – Real Estate Groups		(7,904	)		—		—			(125	)		(8,029	)		(2,902	)		—		—			(67	)		(2,969	)
Deferred taxes – Real Estate Groups		(31,796	)		—		—			(970	)		(32,766	)		997			—		—			291			1,288
Straight-line rent adjustment		9,666			—		—			(894	)		8,772			(12	)		—		—			—			(12	)
Preference payment		(898	)		—		—			—			(898	)		—			—		—			—			—
Gain on disposition of rental properties and other investments, net of tax		—			—		4,700			99,323			104,023			—			—		—			43,703			43,703
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			—			(2,722	)		—		—			2,722			—
Amortization of mortgage procurement costs – Real Estate Groups		(125	)		—		—			125			—			(67	)		—		—			67			—
Deferred taxes – Real Estate Groups		(970	)		—		—			970			—			291			—		—			(291	)		—
Straight-line rent adjustment		(894	)		—		—			894			—			—			—		—			—			—
Gain on disposition of rental properties		99,323			—		—			(99,323	)		—			43,703			—		—			(43,703	)		—
Deferred gain on disposition of Lumber Group		—			—		—			—			—			—			—		—			—			—
Net earnings	$	147,234		$	—	$	—		$	—		$	147,234		$	45,489		$	—	$	—		$	—		$	45,489

47

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2007(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	$	117,230		$	8,189	$	82,750		$	—	$	191,791		$	—		$	—	$	19,136		$	—	$	19,136
Exclude straight-line rent adjustment		3			—		—			—		3			—			—		—			—		—
Adjusted revenues		117,233			8,189		82,750			—		191,794			—			—		19,136			—		19,136
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		75,546			4,870		60,147			—		130,823			—			—		30,959			—		30,959
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—			—		—
Exclude preference payment		—			—		—			—		—			—			—		—			—		—
Adjusted operating expenses		75,546			4,870		60,147			—		130,823			—			—		30,959			—		30,959
Add interest and other income		18,179			1,736		246			—		16,689			—			—		(19	)		—		(19	)
Add equity in earnings of unconsolidated entities		39,190			—		(22,059	)		—		17,131			(14,703	)		—		14,654			—		(49	)
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		99,056			5,055		790			—		94,791			(14,703	)		—		2,812			—		(11,891	)
Interest expense, including early extinguishment of debt		8,875			651		790			—		9,014			—			—		2,812			—		2,812
Income tax expense (benefit)		23,632			—		—			—		23,632			(4,361	)		—		—			—		(4,361	)
Minority interest in earnings before depreciation and amortization		4,404			4,404		—			—		—			—			—		—			—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—			—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	62,145		$	—	$	—		$	—	$	62,145		$	(10,342	)	$	—	$	—		$	—	$	(10,342	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	62,145		$	—	$	—		$	—	$	62,145		$	(10,342	)	$	—	$	—		$	—	$	(10,342	)
Depreciation and amortization – Real Estate Groups		(160	)		—		—			—		(160	)		—			—		—			—		—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—			—		—			—			—		—			—		—
Deferred taxes – Real Estate Groups		(10,448	)		—		—			—		(10,448	)		—			—		—			—		—
Straight-line rent adjustment		(3	)		—		—			—		(3	)		—			—		—			—		—
Preference payment		—			—		—			—		—			—			—		—			—		—
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		—			—		—			—		—			—			—		—			—		—
Deferred gain on disposition of Lumber Group		—			—		—			—		—			—			—		—			—		—
Net earnings	$	51,534		$	—	$	—		$	—	$	51,534		$	(10,342	)	$	—	$	—		$	—	$	(10,342	)

48

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2007(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	$	—		$	—	$	—	$	—		$	—		$	1,168,835		$	98,001	$	355,457		$	58,198		$	1,484,489
Exclude straight-line rent adjustment		—			—		—		—			—			(15,950	)		—		—			(44	)		(15,994	)
Adjusted revenues		—			—		—		—			—			1,152,885			98,001		355,457			58,154			1,468,495
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		43,073			—		—		—			43,073			711,247			46,133		242,789			37,497			945,400
Exclude straight-line rent adjustment		—			—		—		—			—			(6,299	)		—		—			(938	)		(7,237	)
Exclude preference payment		—			—		—		—			—			(898	)		—		—			—			(898	)
Adjusted operating expenses		43,073			—		—		—			43,073			704,050			46,133		242,789			36,559			937,265
Add interest and other income		1,876			—		—		—			1,876			61,737			2,763		3,301			1,504			63,779
Add equity in earnings of unconsolidated entities		1			—		—		—			1			48,542			—		(31,278	)		—			17,264
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		—			—		—		—			—			36,091			—		(36,091	)		—			—
Net operating income		(41,196	)		—		—		—			(41,196	)		587,943			54,631		55,862			23,099			612,273
Interest expense, including early extinguishment of debt		48,086			—		—		—			48,086			295,978			24,557		55,862			10,053			337,336
Income tax expense (benefit)		(34,812	)		—		—		—			(34,812	)		(11,559	)		—		—			1,542			(10,017	)
Minority interest in earnings before depreciation and amortization		—			—		—		—			—			30,074			30,074		—			—			—
Add: EBDT from discontinued operations		—			—		—		—			—			11,504			—		—			(11,504	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(54,470	)	$	—	$	—	$	—		$	(54,470	)	$	284,954		$	—	$	—		$	—		$	284,954
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(54,470	)	$	—	$	—	$	—		$	(54,470	)	$	284,954		$	—	$	—		$	—		$	284,954
Depreciation and amortization – Real Estate Groups		—			—		—		—			—			(200,526	)		—		—			(6,219	)		(206,745	)
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—			—			(10,806	)		—		—			(192	)		(10,998	)
Deferred taxes – Real Estate Groups		(2,660	)		—		—		—			(2,660	)		(43,907	)		—		—			(679	)		(44,586	)
Straight-line rent adjustment		—			—		—		—			—			9,651			—		—			(894	)		8,757
Preference payment		—			—		—		—			—			(898	)		—		—			—			(898	)
Gain on disposition of rental properties and other investments, net of tax		—			—		—		466			466			—			—		4,700			143,492			148,192
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		—			—		—		—			—			(6,219	)		—		—			6,219			—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—			—			(192	)		—		—			192			—
Deferred taxes – Real Estate Groups		—			—		—		—			—			(679	)		—		—			679			—
Straight-line rent adjustment		—			—		—		—			—			(894	)		—		—			894			—
Gain on disposition of rental properties		—			—		—		—			—			143,026			—		—			(143,026	)		—
Deferred gain on disposition of Lumber Group		466			—		—		(466	)		—			466			—		—			(466	)		—
Net earnings	$	(56,664	)	$	—	$	—	$	—		$	(56,664	)	$	177,251		$	—	$	—		$	—		$	177,251

49

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2006(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	$	229,045		$	37,388	$	23,457		$	19,454		$	234,568		$	53,297		$	3,819	$	29,837		$	5,918		$	85,233
Exclude straight-line rent adjustment		(6,308	)		—		—			(69	)		(6,377	)		(11	)		—		—			—			(11	)
Adjusted revenues		222,737			37,388		23,457			19,385			228,191			53,286			3,819		29,837			5,918			85,222
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		105,462			9,857		13,947			13,815			123,367			38,851			2,406		16,733			3,315			56,493
Exclude straight-line rent adjustment		(1,349	)		—		—			(577	)		(1,926	)		—			—		—			—			—
Adjusted operating expenses		104,113			9,857		13,947			13,238			121,441			38,851			2,406		16,733			3,315			56,493
Add interest and other income		1,302			279		(153	)		64			934			1,399			27		719			109			2,200
Add equity in earnings of unconsolidated entities		2,300			—		(2,398	)		—			(98	)		514			—		(658	)		—			(144	)
Add back equity method depreciation and amortization expense		2,745			—		(2,745	)		—			—			4,673			—		(4,673	)		—			—
Net operating income		124,971			27,810		4,214			6,211			107,586			21,021			1,440		8,492			2,712			30,785
Interest expense, including early extinguishment of debt		44,689			5,416		4,214			7,089			50,576			10,449			941		8,492			2,651			20,651
Income tax expense (benefit)		(11,692	)		—		—			(935	)		(12,627	)		1,639			—		—			(728	)		911
Minority interest in earnings before depreciation and amortization		22,394			22,394		—			—			—			499			499		—			—			—
Add: EBDT from discontinued operations		57			—		—			(57	)		—			789			—		—			(789	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	69,637		$	—	$	—		$	—		$	69,637		$	9,223		$	—	$	—		$	—		$	9,223
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	69,637		$	—	$	—		$	—		$	69,637		$	9,223		$	—	$	—		$	—		$	9,223
Depreciation and amortization – Real Estate Groups		(31,001	)		—		—			(1,971	)		(32,972	)		(19,558	)		—		—			(1,628	)		(21,186	)
Amortization of mortgage procurement costs – Real Estate Groups		(2,169	)		—		—			(185	)		(2,354	)		(536	)		—		—			(29	)		(565	)
Deferred taxes – Real Estate Groups		(22,685	)		—		—			430			(22,255	)		8,380			—		—			(111	)		8,269
Straight-line rent adjustment		4,959			—		—			(508	)		4,451			11			—		—			—			11
Gain on disposition of rental properties, net of tax		—			—		—			—			—			—			—		—			20,691			20,691
Provision of decline in real estate, net of tax and minority interest		—			—		—			—			—			—			—		—			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization – Real Estate Groups		(1,971	)		—		—			1,971			—			(1,628	)		—		—			1,628			—
Amortization of mortgage procurement costs – Real Estate Groups		(185	)		—		—			185			—			(29	)		—		—			29			—
Deferred taxes – Real Estate Groups		430			—		—			(430	)		—			(111	)		—		—			111			—
Straight-line rent adjustment		(508	)		—		—			508			—			—			—		—			—			—
Gain on disposition of rental properties		—			—		—			—			—			20,691			—		—			(20,691	)		—
Net earnings	$	16,507		$	—	$	—		$	—		$	16,507		$	16,443		$	—	$	—		$	—		$	16,443

50

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2006(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	$	30,628		$	2,810	$	25,767		$	—	$	53,585		$	—		$	—	$	7,531	$	—	$	7,531
Exclude straight-line rent adjustment		(15	)		—		—			—		(15	)		—			—		—		—		—
Adjusted revenues		30,613			2,810		25,767			—		53,570			—			—		7,531		—		7,531
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		18,559			1,335		12,246			—		29,470			—			—		14,136		—		14,136
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses		18,559			1,335		12,246			—		29,470			—			—		14,136		—		14,136
Add interest and other income		6,214			653		26			—		5,587			—			—		121		—		121
Add equity in earnings of unconsolidated entities		13,916			—		(13,385	)		—		531			(7,537	)		—		7,484		—		(53	)
Add back equity method depreciation and amortization expense		—			—		—			—		—			—			—		—		—		—
Net operating income		32,184			2,128		162			—		30,218			(7,537	)		—		1,000		—		(6,537	)
Interest expense, including early extinguishment of debt		1,979			131		162			—		2,010			—			—		1,000		—		1,000
Income tax expense (benefit)		8,050			—		—			—		8,050			(1,858	)		—		—		—		(1,858	)
Minority interest in earnings before depreciation and amortization		1,997			1,997		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	20,158		$	—	$	—		$	—	$	20,158		$	(5,679	)	$	—	$	—	$	—	$	(5,679	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	20,158		$	—	$	—		$	—	$	20,158		$	(5,679	)	$	—	$	—	$	—	$	(5,679	)
Depreciation and amortization – Real Estate Groups		(44	)		—		—			—		(44	)		—			—		—		—		—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes – Real Estate Groups		(4,371	)		—		—			—		(4,371	)		—			—		—		—		—
Straight-line rent adjustment		15			—		—			—		15			—			—		—		—		—
Gain on disposition of rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Provision of decline in real estate, net of tax and minority interest		(1,072	)		—		—			—		(1,072	)		—			—		—		—		—
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	$	14,686		$	—	$	—		$	—	$	14,686		$	(5,679	)	$	—	$	—	$	—	$	(5,679	)

51

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January��31, 2006(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	$	—		$	—	$	—	$	—	$	—		$	312,970		$	44,017	$	86,592		$	25,372		$	380,917
Exclude straight-line rent adjustment		—			—		—		—		—			(6,334	)		—		—			(69	)		(6,403	)
Adjusted revenues		—			—		—		—		—			306,636			44,017		86,592			25,303			374,514
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		10,825			—		—		—		10,825			173,697			13,598		57,062			17,130			234,291
Exclude straight-line rent adjustment		—			—		—		—		—			(1,349	)		—		—			(577	)		(1,926	)
Adjusted operating expenses		10,825			—		—		—		10,825			172,348			13,598		57,062			16,553			232,365
Add interest and other income		377			—		—		—		377			9,292			959		713			173			9,219
Add equity in earnings of unconsolidated entities		(21	)		—		—		—		(21	)		9,172			—		(8,957	)		—			215
Add back equity method depreciation and amortization expense		—			—		—		—		—			7,418			—		(7,418	)		—			—
Net operating income		(10,469	)		—		—		—		(10,469	)		160,170			31,378		13,868			8,923			151,583
Interest expense, including early extinguishment of debt		12,837			—		—		—		12,837			69,954			6,488		13,868			9,740			87,074
Income tax expense (benefit)		(3,624	)		—		—		—		(3,624	)		(7,485	)		—		—		��	(1,663	)		(9,148	)
Minority interest in earnings before depreciation and amortization		—			—		—		—		—			24,890			24,890		—			—			—
Add: EBDT from discontinued operations		—			—		—		—		—			846			—		—			(846	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(19,682	)	$	—	$	—	$	—	$	(19,682	)	$	73,657		$	—	$	—		$	—		$	73,657
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(19,682	)	$	—	$	—	$	—	$	(19,682	)	$	73,657		$	—	$	—		$	—		$	73,657
Depreciation and amortization – Real Estate Groups		—			—		—		—		—			(50,603	)		—		—			(3,599	)		(54,202	)
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—		—			(2,705	)		—		—			(214	)		(2,919	)
Deferred taxes – Real Estate Groups		6,021			—		—		—		6,021			(12,655	)		—		—			319			(12,336	)
Straight-line rent adjustment		—			—		—		—		—			4,985			—		—			(508	)		4,477
Gain on disposition of rental properties, net of tax		(61	)		—		—		—		(61	)		(61	)		—		—			20,691			20,630
Provision of decline in real estate, net of tax and minority interest		—			—		—		—		—			(1,072	)		—		—			—			(1,072	)
Discontinued operations, net of tax and minority interest:
Depreciation and amortization – Real Estate Groups		—			—		—		—		—			(3,599	)		—		—			3,599			—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—		—			(214	)		—		—			214			—
Deferred taxes – Real Estate Groups		—			—		—		—		—			319			—		—			(319	)		—
Straight-line rent adjustment		—			—		—		—		—			(508	)		—		—			508			—
Gain on disposition of rental properties		—			—		—		—		—			20,691			—		—			(20,691	)		—
Net earnings	$	(13,722	)	$	—	$	—	$	—	$	(13,722	)	$	28,235		$	—	$	—		$	—		$	28,235

52

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2006(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	$	824,337		$	106,236	$	96,766		$	86,121		$	900,988		$	196,266		$	14,944	$	121,084		$	29,271		$	331,677
Exclude straight-line rent adjustment		(18,174	)		—		—			(163	)		(18,337	)		(40	)		—		—			—			(40	)
Adjusted revenues		806,163			106,236		96,766			85,958			882,651			196,226			14,944		121,084			29,271			331,637
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		406,316			41,258		54,970			64,095			484,123			137,079			9,934		67,861			14,341			209,347
Exclude straight-line rent adjustment		(5,394	)		—		—			(2,338	)		(7,732	)		—			—		—			—			—
Adjusted operating expenses		400,922			41,258		54,970			61,757			476,391			137,079			9,934		67,861			14,341			209,347
Add interest and other income		4,415			801		(863	)		212			2,963			3,842			40		1,656			331			5,789
Add equity in earnings of unconsolidated entities		24,637			—		(24,503	)		—			134			13,815			—		(14,235	)		—			(420	)
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		11,211			—		(11,211	)		—			—			16,938			—		(16,938	)		—			—
Net operating income		433,063			65,779		17,660			24,413			409,357			85,864			5,050		31,584			15,261			127,659
Interest expense, including early extinguishment of debt		170,722			23,362		17,660			18,009			183,029			41,503			4,871		31,584			12,053			80,269
Income tax expense (benefit)		641			—		—			(4,185	)		(3,544	)		(4,050	)		—		—			(1,964	)		(6,014	)
Minority interest in earnings before depreciation and amortization		42,417			42,417		—			—			—			179			179		—			—			—
Add: EBDT from discontinued operations		10,589			—		—			(10,589	)		—			5,172			—		—			(5,172	)		—
Earnings before depreciation,     amortization and deferred taxes (EBDT)	$	229,872		$	—	$	—		$	—		$	229,872		$	53,404		$	—	$	—		$	—		$	53,404
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	229,872		$	—	$	—		$	—		$	229,872		$	53,404		$	—	$	—		$	—		$	53,404
Depreciation and amortization – Real Estate Groups		(119,633	)		—		—			(10,723	)		(130,356	)		(55,034	)		—		—			(7,135	)		(62,169	)
Amortization of mortgage procurement costs – Real Estate Groups		(7,440	)		—		—			(1,609	)		(9,049	)		(2,348	)		—		—			(181	)		(2,529	)
Deferred taxes – Real Estate Groups		(33,019	)		—		—			(1,059	)		(34,078	)		7,825			—		—			(377	)		7,448
Straight-line rent adjustment		12,780			—		—			(2,175	)		10,605			40			—		—			—			40
Gain on disposition of rental properties and other investments, net of tax		—			—		8,064			—			8,064			—			—		4,836			26,505			31,341
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		(10,723	)		—		—			10,723			—			(7,135	)		—		—			7,135			—
Amortization of mortgage procurement costs – Real Estate Groups		(1,609	)		—		—			1,609			—			(181	)		—		—			181			—
Deferred taxes – Real Estate Groups		(1,059	)		—		—			1,059			—			(377	)		—		—			377			—
Straight-line rent adjustment		(2,175	)		—		—			2,175			—			—			—		—			—			—
Gain on disposition of rental properties		—			—		—			—			—			26,505			—		—			(26,505	)		—
Net earnings	$	73,706		$	—	$	—		$	—		$	73,706		$	25,575		$	—	$	—		$	—		$	25,575

53

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2006(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	$	107,869		$	7,863	$	73,102		$	—	$	173,108		$	—		$	—	$	27,330	$	—	$	27,330
Exclude straight-line rent adjustment		(15	)		—		—			—		(15	)		—			—		—		—		—
Adjusted revenues		107,854			7,863		73,102			—		173,093			—			—		27,330		—		27,330
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		64,872			3,922		38,112			—		99,062			—			—		49,078		—		49,078
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses		64,872			3,922		38,112			—		99,062			—			—		49,078		—		49,078
Add interest and other income		17,716			1,763		137			—		16,090			—			—		288		—		288
Add equity in earnings of unconsolidated entities		41,304			—		(34,774	)		—		6,530			(24,534	)		—		24,452		—		(82	)
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		102,002			5,704		353			—		96,651			(24,534	)		—		2,992		—		(21,542	)
Interest expense, including early extinguishment of debt		7,606			434		353			—		7,525			—			—		2,992		—		2,992
Income tax expense (benefit)		29,789			—		—			—		29,789			(8,427	)		—		—		—		(8,427	)
Minority interest in earnings before depreciation and amortization		5,270			5,270		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—		—		—
Earnings before depreciation,     amortization and deferred taxes (EBDT)	$	59,337		$	—	$	—		$	—	$	59,337		$	(16,107	)	$	—	$	—	$	—	$	(16,107	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	59,337		$	—	$	—		$	—	$	59,337		$	(16,107	)	$	—	$	—	$	—	$	(16,107	)
Depreciation and amortization – Real Estate Groups		(190	)		—		—			—		(190	)		—			—		—		—		—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes – Real Estate Groups		(6,004	)		—		—			—		(6,004	)		—			—		—		—		—
Straight-line rent adjustment		15			—		—			—		15			—			—		—		—		—
Gain on disposition of rental properties and other investments, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate, net of tax and minority interest		(1,072	)		—		—			—		(1,072	)		—			—		—		—		—
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	$	52,086		$	—	$	—		$	—	$	52,086		$	(16,107	)	$	—	$	—	$	—	$	(16,107	)

54

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2006(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	$	—		$	—	$	—	$	—	$	—		$	1,128,472		$	129,043	$	318,282			$	115,392		$	1,433,103
Exclude straight-line rent adjustment		—			—		—		—		—			(18,229	)		—		—				(163	)		(18,392	)
Adjusted revenues		—			—		—		—		—			1,110,243			129,043		318,282				115,229			1,414,711
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		37,971			—		—		—		37,971			646,238			55,114		210,021				78,436			879,581
Exclude straight-line rent adjustment		—			—		—		—		—			(5,394	)		—		—				(2,338	)		(7,732	)
Adjusted operating expenses		37,971			—		—		—		37,971			640,844			55,114		210,021				76,098			871,849
Add interest and other income		1,800			—		—		—		1,800			27,773			2,604		1,218				543			26,930
Add equity in earnings of unconsolidated entities		(21	)		—		—		—		(21	)		55,201			—		(49,060	)			—			6,141
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		—			—		—		—		—			28,149			—		(28,149	)			—			—
Net operating income		(36,192	)		—		—		—		(36,192	)		560,203			76,533		52,589				39,674			575,933
Interest expense, including early extinguishment of debt		45,003			—		—		—		45,003			264,834			28,667		52,589				30,062			318,818
Income tax expense (benefit)		(25,185	)		—		—		—		(25,185	)		(7,232	)		—		—				(6,149	)		(13,381	)
Minority interest in earnings before depreciation and amortization		—			—		—		—		—			47,866			47,866		—				—			—
Add: EBDT from discontinued operations		—			—		—		—		—			15,761			—		—				(15,761	)		—
Earnings before depreciation,     amortization and deferred taxes (EBDT)	$	(56,010	)	$	—	$	—	$	—	$	(56,010	)	$	270,496		$	—	$	—			$	—		$	270,496
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(56,010	)	$	—	$	—	$	—	$	(56,010	)	$	270,496		$	—	$	—			$	—		$	270,496
																					��
Depreciation and amortization – Real Estate Groups		—			—		—		—		—			(174,857	)		—		—				(17,858	)		(192,715	)
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—		—			(9,788	)		—		—				(1,790	)		(11,578	)
Deferred taxes – Real Estate Groups		3,958			—		—		—		3,958			(27,240	)		—		—				(1,436	)		(28,676	)
Straight-line rent adjustment		—			—		—		—		—			12,835			—		—				(2,175	)		10,660
Gain on disposition of rental properties and other investments, net of tax		311			—		—		—		311			311			—		12,900				26,505			39,716
Provision for decline in real estate, net of tax and minority interest		—			—		—		—		—			(3,952	)		—		(432	)			—			(4,384	)
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		—			—		—		—		—			(17,858	)		—		—				17,858			—
Amortization of mortgage procurement costs – Real Estate Groups		—			—		—		—		—			(1,790	)		—		—				1,790			—
Deferred taxes – Real Estate Groups		—			—		—		—		—			(1,436	)		—		—				1,436			—
Straight-line rent adjustment		—			—		—		—		—			(2,175	)		—		—				2,175			—
Gain on disposition of rental properties		—			—		—		—		—			26,505			—		—				(26,505	)		—
Net earnings	$	(51,741	)	$	—	$	—	$	—	$	(51,741	)	$	83,519		$	—	$	—			$	—		$	83,519

55

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

COMMERCIAL GROUP
OFFICE BUILDINGS

		Date of											Leasable
		Opening/									Leasable		Square
		Acquisition/	Legal			Pro-Rata					Square		Feet at Pro-
Name		Expansion	Ownership(1)			Ownership(2)			Location	Major Tenants	Feet		Rata %
Consolidated Office Buildings
	2 Hanson Place	2004		100.00	%		100.00	%	Brooklyn, NY	Bank of New York, HSBC		399,000		399,000
	35 Landsdowne Street	2002		100.00	%		100.00	%	Cambridge, MA	Millennium Pharmaceuticals		202,000		202,000
	40 Landsdowne Street	2003		100.00	%		100.00	%	Cambridge, MA	Millennium Pharmaceuticals		215,000		215,000
	45/75 Sidney Street	1999		100.00	%		100.00	%	Cambridge, MA	Millennium Pharmaceuticals		277,000		277,000
	65/80 Landsdowne Street	2001		100.00	%		100.00	%	Cambridge, MA	Partners HealthCare System		122,000		122,000
	88 Sidney Street	2002		100.00	%		100.00	%	Cambridge, MA	Alkermes, Inc.		145,000		145,000
	Ballston Common Office Center	2005		50.00	%		100.00	%	Arlington, VA	US Coast Guard		176,000		176,000
	Chase Financial Tower	1991		95.00	%		100.00	%	Cleveland, OH	Chase Manhattan Mortgage Corporation		119,000		119,000
+	Edgeworth Building	2006		100.00	%		100.00	%	Richmond, VA	Heushler Flieshler		142,000		142,000
	Eleven MetroTech Center	1995		85.00	%		85.00	%	Brooklyn, NY	City of New York — CDCSA; E-911		216,000		184,000
	Fifteen MetroTech Center	2003		95.00	%		95.00	%	Brooklyn, NY	Empire Blue Cross and Blue Shield; City of New York — HRA		653,000		620,000
	Halle Building	1986		75.00	%		100.00	%	Cleveland, OH	Case Western Reserve University; First American Equity; Liggett-Stashower		412,000		412,000
	Harlem Center	2003		75.00	%		75.00	%	Manhattan, NY	Office of General Services-Temporary Disability & Assistance; State Liquor Authority		146,000		110,000
	Illinois Science and Technology Park
+	– Building A	2006		100.00	%		100.00	%	Skokie, IL	Evanston Northwestern Hospital		225,000		225,000
+	– Building P	2006		100.00	%		100.00	%	Skokie, IL	Nanoink, Inc.		127,000		127,000
*	– Building Q	2007		100.00	%		100.00	%	Skokie, IL	Leasing in Progress		160,000		160,000
	Jackson Building	1987		100.00	%		100.00	%	Cambridge, MA	Ariad Pharmaceuticals		99,000		99,000
*	Johns Hopkins – 855 North Wolfe Street	2008		76.60	%		76.60	%	East Baltimore, MD	Johns Hopkins, Spec Biotech		278,000		213,000
	Knight Ridder Building at Fairmont Plaza	1998		85.00	%		85.00	%	San Jose, CA	Knight Ridder; Merrill Lynch; Calpine; UBS Financial; Camera 12 Cinemas		404,000		343,000
	M. K. Ferguson Plaza	1990		1.00	%		1.00	%	Cleveland, OH	Washington Group; Chase Manhattan Mortgage Corporation; Quicken Loans; Educational Loan Servicing Corp.		478,000		5,000
*	New York Times	2007		70.00	%		79.50	%	Manhattan, NY	Legg Mason; Covington & Burling; Osler Hoskin		736,000		585,000
	Nine MetroTech Center North	1997		85.00	%		85.00	%	Brooklyn, NY	City of New York — Fire Department		317,000		269,000
	One MetroTech Center	1991		82.50	%		82.50	%	Brooklyn, NY	Keyspan; Bear Stearns		933,000		770,000
	One Pierrepont Plaza	1988		91.70	%		91.70	%	Brooklyn, NY	Morgan Stanley; Goldman Sachs; U.S. Attorney		656,000		602,000
+	Resurrection Health Care	2006		100.00	%		100.00	%	Skokie, IL	Resurrection Health Care		40,000		40,000
	Richards Building	1990		100.00	%		100.00	%	Cambridge, MA	Genzyme Biosurgery; Alkermes, Inc.		126,000		126,000

56

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

COMMERCIAL GROUP
OFFICE BUILDINGS (continued)

		Date of												Leasable
		Opening/										Leasable		Square
		Acquisition/		Legal			Pro-Rata					Square		Feet at Pro-
Name		Expansion		Ownership(1)			Ownership(2)			Location	Major Tenants	Feet		Rata %
Consolidated Office Buildings (continued)
	Skylight Office Tower		1991		92.50	%		100.00	%	Cleveland, OH	Cap Gemini; Travelers Indemnity; Ulmer & Berne, LLP		320,000		320,000
+	Stapleton Medical Office Building		2006		90.00	%		90.00	%	Denver, CO	University of Colorado Hospital		45,000		41,000
	Ten MetroTech Center		1992		100.00	%		100.00	%	Brooklyn, NY	Internal Revenue Service		409,000		409,000
	Terminal Tower		1983		100.00	%		100.00	%	Cleveland, OH	Forest City Enterprises, Inc.; Greater Cleveland Growth Association		577,000		577,000
	Twelve MetroTech Center		2004		80.00	%		80.00	%	Brooklyn, NY	Leasing in progress		177,000		142,000
	Two MetroTech Center		1990		82.50	%		82.50	%	Brooklyn, NY	Securities Industry Automation Corp.; City of New York — Board of Education		521,000		430,000
	University of Pennsylvania		2004		100.00	%		100.00	%	Philadelphia, PA	University of Pennsylvania		123,000		123,000
	Consolidated Office Buildings Subtotal												9,975,000		8,729,000
Unconsolidated Office Buildings
	350 Massachusetts Ave		1998		50.00	%		50.00	%	Cambridge, MA	Star Market; Tofias		169,000		85,000
+	Advent Solar		2006		47.50	%		47.50	%	Albuquerque, NM	Advent Solar		88,000		42,000
+	Bulletin Building		2006		50.00	%		50.00	%	San Francisco, CA	Great West Life and Annuity; Corinthian School		87,000		44,000
	Chagrin Plaza I & II		1969		66.67	%		66.67	%	Beachwood, OH	National City Bank; Benihana; H&R Block		114,000		76,000
	Clark Building		1989		50.00	%		50.00	%	Cambridge, MA	Acambis		122,000		61,000
	Emery-Richmond		1991		50.00	%		50.00	%	Warrensville Hts., OH	Allstate Insurance		5,000		3,000
	Enterprise Place		1998		50.00	%		50.00	%	Beachwood, OH	University of Phoenix; Advance Payroll; PS Executive Centers		132,000		66,000
	Liberty Center		1986		50.00	%		50.00	%	Pittsburgh, PA	Federated Investors		527,000		264,000
	One International Place		2000		50.00	%		50.00	%	Cleveland, OH	Fort Dearborn Life Ins.; Battelle Memorial; Transportation Security Administration		88,000		44,000
	Signature Square I		1986		50.00	%		50.00	%	Beachwood, OH	Ciuni & Panichi		79,000		40,000
	Signature Square II		1989		50.00	%		50.00	%	Beachwood, OH	Cleveland Clinic Ophthalmology; Allen Telecom, Inc.		82,000		41,000
	Unconsolidated Office Buildings Subtotal												1,493,000		766,000
	Total Office Buildings at January 31, 2007												11,468,000		9,495,000
	Total Office Buildings at January 31, 2006												11,185,000		8,532,000

57

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

COMMERCIAL GROUP
RETAIL CENTERS

													Total				Gross
		Date of											Square				Leasable
		Opening/									Total		Feet at		Gross		Area at
		Acquisition/	Legal			Pro-Rata					Square		Pro-Rata		Leasable		Pro-Rata
Name		Expansion	Ownership(1)			Ownership(2)			Location	Major Tenants	Feet		%		Area		%
Consolidated Regional Malls
	Antelope Valley Mall	1990/1999		78.00	%		78.00	%	Palmdale, CA	Sears; JCPenney; Dillard’s; Harris Gottschalks; Mervyn’s		995,000		776,000		303,000		236,000
	Ballston Common Mall	1986/1999		100.00	%		100.00	%	Arlington, VA	Macy’s; Sport & Health; Regal Cinemas		578,000		578,000		310,000		310,000
	Gallaria at Sunset	1996/2002		100.00	%		100.00	%	Henderson, NV	Dillard’s; Macy’s; Mervyn’s; JCPenney; Galyan’s		1,048,000		1,048,000		330,000		330,000
	Mall at Robinson	2001		56.67	%		100.00	%	Pittsburgh, PA	Macy’s; Sears; JCPenney; Dick’s Sporting Goods		872,000		872,000		318,000		318,000
	Mall at Stonecrest	2001		66.67	%		100.00	%	Atlanta, GA	Parisian; Sears; JCPenney; Dillard’s; AMC Theatre; Macy’s		1,171,000		1,171,000		397,000		397,000
^+	Northfield at Stapleton	2005/2006		95.00	%		97.90	%	Denver, CO	Bass Pro; Target; Foley’s; Harkins Theatre		1,170,000		1,145,000		560,000		548,000
^*	Orchard Town Center	2008		100.00	%		100.00	%	Westminister, CO	JCPenney; Macy’s; Target		971,000		971,000		557,000		557,000
*	Promenade Bolingbrook	2007		100.00	%		100.00	%	Bolingbrook, IL	Bass Pro; Macy’s		736,000		736,000		409,000		409,000
	Promenade in Temecula	1999/2002		75.00	%		100.00	%	Temecula, CA	JCPenney; Sears; Robinsons-May; Macy’s; Edwards Cinema		1,013,000		1,013,000		425,000		425,000
	Short Pump Town Center	2003/2005		50.00	%		100.00	%	Richmond, VA	Nordstrom; Hecht’s; Dillard’s; Dick’s Sporting Goods		1,193,000		1,193,000		590,000		590,000
	Simi Valley Town Center	2005		85.00	%		100.00	%	Simi Valley, CA	Macy’s		612,000		612,000		365,000		365,000
	South Bay Galleria	1985/2001		100.00	%		100.00	%	Redondo Beach, CA	Macy’s; Mervyn’s; Nordstrom; AMC Theater		955,000		955,000		387,000		387,000
	Victoria Gardens	2004		40.00	%		80.00	%	Rancho Cucamonga, CA	Macy’s; JCPenney; AMC Theater		1,139,000		911,000		670,000		536,000
	Consolidated Regional Malls Subtotal											12,453,000		11,981,000		5,621,000		5,408,000

58

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

COMMERCIAL GROUP
RETAIL CENTERS (continued)

													Total				Gross
													Square				Leasable
		Opening/									Total		Feet at		Gross		Area at
		Acquisition/	Legal			Pro-Rata					Square		Pro-Rata		Leasable		Pro-Rata
Name		Expansion	Ownership(1)			Ownership(2)			Location	Major Tenants	Feet		%		Area		%
Consolidated Specialty Retail Centers
	42nd Street	1999		100.00	%		100.00	%	Manhattan, NY	AMC Theaters; Modell’s; Dave & Buster’s; Madame Tussaud’s Wax Museum		306,000		306,000		306,000		306,000
	Atlantic Center	1996		100.00	%		100.00	%	Brooklyn, NY	Pathmark; OfficeMax; Old Navy; Marshall’s; Sterns; Circuit City; NYC — Dept. of Motor Vehicles		399,000		399,000		399,000		399,000
	Atlantic Center Site V	1998		100.00	%		100.00	%	Brooklyn, NY	Modell’s		17,000		17,000		17,000		17,000
	Atlantic Terminal	2004		100.00	%		100.00	%	Brooklyn, NY	Target; Designer Shoe Warehouse; Chuck E. Cheese’s; Daffy’s		373,000		373,000		373,000		373,000
	Avenue at Tower City Center	1990		100.00	%		100.00	%	Cleveland, OH	Hard Rock Café; Morton’s of Chicago; Cleveland Cinemas		367,000		367,000		367,000		367,000
	Brooklyn Commons	2004		100.00	%		100.00	%	Brooklyn, NY	Lowe’s		151,000		151,000		151,000		151,000
	Bruckner Boulevard	1996		100.00	%		100.00	%	Bronx, NY	Conway; Seaman’s; Old Navy		113,000		113,000		113,000		113,000
	Columbia Park Center	1999		75.00	%		75.00	%	North Bergen, NJ	Shop Rite; Old Navy; Circuit City; Staples; Bally’s; Shopper’s World		347,000		260,000		347,000		260,000
	Court Street	2000		100.00	%		100.00	%	Brooklyn, NY	United Artists; Barnes & Noble		103,000		103,000		103,000		103,000
	Eastchester	2000		100.00	%		100.00	%	Bronx, NY	Pathmark		63,000		63,000		63,000		63,000
	Forest Avenue	2000		100.00	%		100.00	%	Staten Island, NY	United Artists		70,000		70,000		70,000		70,000
	Grand Avenue	1997		100.00	%		100.00	%	Queens, NY	Stop & Shop		100,000		100,000		100,000		100,000
	Gun Hill Road	1997		100.00	%		100.00	%	Bronx, NY	Home Depot; Chuck E. Cheese’s		147,000		147,000		147,000		147,000
	Harlem Center	2002		75.00	%		75.00	%	Manhattan, NY	Marshall’s; CVS/Pharmacy; Staples; H&M		126,000		95,000		126,000		95,000
	Kaufman Studios	1999		100.00	%		100.00	%	Queens, NY	United Artists		84,000		84,000		84,000		84,000
	Market at Tobacco Row	2002		100.00	%		100.00	%	Richmond, VA	Rich Foods; CVS/Pharmacy		43,000		43,000		43,000		43,000
	Northern Boulevard	1997		100.00	%		100.00	%	Queens, NY	Stop & Shop; Marshall’s; Old Navy		218,000		218,000		218,000		218,000
	Quartermaster Plaza	2004		100.00	%		100.00	%	Philadelphia, PA	A.J. Wright; Home Depot; BJ’s Wholesale; Staples; PetSmart; Walgreen’s		459,000		459,000		459,000		459,000
	Quebec Square	2002		90.00	%		90.00	%	Denver, CO	Wal-Mart; Home Depot; Sam’s Club; Ross Dress for Less; Office Depot; PetSmart		740,000		666,000		218,000		196,000
	Queens Place	2001		100.00	%		100.00	%	Queens, NY	Target; Best Buy; Macy’s Furniture; Designer Shoe Warehouse		455,000		455,000		221,000		221,000
*	Rancho Cucamonga Leggio	2007		80.00	%		80.00	%	Rancho Cucamonga, CA	Bass Pro		180,000		144,000		180,000		144,000
	Richmond Avenue	1998		100.00	%		100.00	%	Staten Island, NY	Circuit City; Staples		76,000		76,000		76,000		76,000
	Saddle Rock Village	2005		80.00	%		100.00	%	Aurora, CO	Target; JoAnn Fabrics		271,000		271,000		97,000		97,000
	South Bay Southern Center	1978		100.00	%		100.00	%	Redondo Beach, CA	CompUSA		78,000		78,000		78,000		78,000
	Station Square	1994/2002		100.00	%		100.00	%	Pittsburgh, PA	Hard Rock Café; Grand Concourse Restaurant; Buca Di Beppo		288,000		288,000		288,000		288,000
	Woodbridge Crossing	2002		100.00	%		100.00	%	Woodbridge, NJ	Great Indoors; Linens-N-Things; Circuit City; Modell’s; Thomasville Furniture; Party City		284,000		284,000		284,000		284,000
	Consolidated Specialty Retail Centers Subtotal											5,858,000		5,630,000		4,928,000		4,752,000
	Consolidated Retail Centers Total											18,311,000		17,611,000		10,549,000		10,160,000

59

��

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

COMMERCIAL GROUP
RETAIL CENTERS (continued)

		Date of											Total				Gross
		Opening/									Total		Square Feet		Gross		Leasable
		Acquisition/	Legal			Pro-Rata					Square		at Pro-Rata		Leasable		Area at
Name		Expansion	Ownership(1)			Ownership(2)			Location	Major Tenants	Feet		%		Area		Pro-Rata %
Unconsolidated Regional Malls
	Boulevard Mall	1996/2000		50.00	%		50.00	%	Amherst, NY	JCPenney; Macy’s; Sears; Michael’s		908,000		454,000		331,000		166,000
	Charleston Town Center	1983		50.00	%		50.00	%	Charleston, WV	Macy’s; JCPenney; Sears		897,000		449,000		361,000		181,000
+	San Francisco Centre	2006		50.00	%		50.00	%	San Francisco, CA	Nordstrom’s; Bloomingdale’s; Century Theaters		1,462,000		731,000		812,000		406,000
^*	Shops at Wiregrass	2008		50.00	%		66.70	%	Tampa, FL	JCPenney		530,000		354,000		380,000		253,000
	Unconsolidated Regional Malls Subtotal											3,797,000		1,988,000		1,884,000		1,006,000
Unconsolidated Specialty Retail Centers
*	East River Plaza	2008		35.00	%		50.00	%	Manhattan, NY	Home Depot; Target; Best Buy		514,000		257,000		514,000		257,000
	Golden Gate	1958		50.00	%		50.00	%	Mayfield Hts., OH	OfficeMax; Old Navy; Linens-N-Things; Marshall’s; Cost Plus		362,000		181,000		362,000		181,000
	Marketplace at Riverpark	1996		50.00	%		50.00	%	Fresno, CA	JCPenney; Best Buy; Linens-N-Things; Marshall’s; Office Max; Old Navy; Target; Sports Authority		471,000		236,000		296,000		148,000
+	Metreon	2006		50.00	%		50.00	%	San Francisco, CA	Lowes; IMAX		290,000		145,000		290,000		145,000
	Plaza at Robinson Town Center	1989		50.00	%		50.00	%	Pittsburgh, PA	TJ Maxx; Marshall’s; CompUSA; IKEA; Value City; JoAnn Fabrics		507,000		254,000		507,000		254,000
	Unconsolidated Specialty Retail Centers Subtotal											2,144,000		1,073,000		1,969,000		985,000
	Unconsolidated Retail Centers Subtotal											5,941,000		3,061,000		3,853,000		1,991,000
	Total Retail Centers at January 31, 2007											24,252,000		20,672,000		14,402,000		12,151,000
	Total Retail Centers at January 31, 2006											21,745,000		17,735,000		12,955,000		10,427,000

60

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

COMMERCIAL GROUP
HOTELS

	Date of
	Opening/
	Acquisition/	Legal			Pro-Rata						Hotel Rooms
Name	Expansion	Ownership(1)			Ownership(2)			Location	Rooms		at Pro-Rata %
Consolidated Hotels
Charleston Marriott	1983		95.00	%		100.00	%	Charleston, WV		352		352
Ritz-Carlton, Cleveland	1990		95.00	%		100.00	%	Cleveland, OH		206		206
Sheraton Station Square	1998/2001		100.00	%		100.00	%	Pittsburgh, PA		399		399
Consolidated Hotels Subtotal										957		957
Unconsolidated Hotels
Courtyard by Marriott	1985		3.97	%		3.97	%	Detroit, MI		250		10
University Park at MIT	1998		50.00	%		50.00	%	Cambridge, MA		210		105
Westin Convention Center	1986		50.00	%		50.00	%	Pittsburgh, PA		616		308
Unconsolidated Hotels Subtotal										1,076		423
Total Hotel Rooms at January 31, 2007										2,033		1,380
Total Hotel Rooms at January 31, 2006										2,496		1,613

61

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

RESIDENTIAL GROUP
APARTMENTS

	Date of
	Opening/
	Acquisition/	Legal			Pro-Rata				Leasable		Leasable Units
Name	Expansion	Ownership(1)			Ownership(2)			Location	Units		at Pro-Rata %
Consolidated Apartment Communities
100 Landsdowne Street	2005		100.00	%		100.00	%	Cambridge, MA		203		203
101 San Fernando	2000		66.50	%		95.00	%	San Jose, CA		323		307
+   1251 S. Michigan	2006		100.00	%		100.00	%	Chicago, IL		91		91
23 Sidney Street	2005		100.00	%		100.00	%	Cambridge, MA		51		51
American Cigar Company	2000		100.00	%		100.00	%	Richmond, VA		171		171
Ashton Mill	2005		90.00	%		100.00	%	Cumberland, RI		193		193
Autumn Ridge	2002		100.00	%		100.00	%	Sterling Heights, MI		251		251
Botanica on the Green (East 29th Avenue Town Center)	2004		90.00	%		90.00	%	Denver, CO		78		70
*   Botanica II	2007		90.00	%		90.00	%	Denver, CO		154		139
Bowin	1998		1.99	%		95.05	%	Detroit, MI		193		183
Cambridge Towers	2002		100.00	%		100.00	%	Detroit, MI		250		250
Consolidated-Carolina	2003		89.99	%		100.00	%	Richmond, VA		158		158
Coraopolis Towers	2002		80.00	%		80.00	%	Coraopolis, PA		200		160
Crescent Flats (East 29th Avenue Town Center)	2004		90.00	%		90.00	%	Denver, CO		66		59
+   Cutters Ridge at Tobacco Row	2006		100.00	%		100.00	%	Richmond, VA		12		12
^* Dallas Mercantile	2007-2008		100.00	%		100.00	%	Dallas, TX		366		366
Donora Towers	2002		100.00	%		100.00	%	Donora, PA		103		103
Drake	1998		1.99	%		95.05	%	Philadelphia, PA		282		268
Emerald Palms	1996/2004		100.00	%		100.00	%	Miami, FL		505		505
Grand	1999		85.50	%		85.50	%	North Bethesda, MD		549		469
Grand Lowry Lofts	2000		0.10	%		90.00	%	Denver, CO		261		235
Grove	2003		100.00	%		100.00	%	Ontario, CA		101		101
Heritage	2002		100.00	%		100.00	%	San Diego, CA		230		230
Independence Place II	2003		100.00	%		100.00	%	Parma Heights, OH		201		201
Kennedy Biscuit Lofts	1990		2.99	%		100.00	%	Cambridge, MA		142		142
Knolls	1995		1.00	%		100.00	%	Orange, CA		260		260
Lakeland	1998		1.98	%		94.10	%	Waterford, MI		200		188
Landings of Brentwood	2002		100.00	%		100.00	%	Nashville, TN		724		724
Lenox Club	1991		95.00	%		95.00	%	Arlington, VA		385		366
Lenox Park	1992		95.00	%		95.00	%	Silver Spring, MD		406		386
Lofts at 1835 Arch	2001		1.99	%		95.05	%	Philadelphia, PA		191		182
*  Lucky Strike	2007		100.00	%		100.00	%	Richmond, VA		131		131
Metro 417	2005		75.00	%		100.00	%	Los Angeles, CA		277		277
Metropolitan	1989		100.00	%		100.00	%	Los Angeles, CA		270		270
Museum Towers	1997		100.00	%		100.00	%	Philadelphia, PA		286		286
One Franklintown	1988		100.00	%		100.00	%	Philadelphia, PA		335		335
Parmatown Towers and Gardens	1972-1973		100.00	%		100.00	%	Parma, OH		412		412

62

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Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

RESIDENTIAL GROUP
APARTMENTS (continued)

	Date of
	Opening/
	Acquisition/	Legal			Pro-Rata				Leasable		Leasable Units
Name	Expansion	Ownership(1)			Ownership(2)			Location	Units		at Pro-Rata %
Consolidated Apartment Communities (continued)
Pavilion	1992		95.00	%		95.00	%	Chicago, IL		1,114		1,058
Plymouth Square	2003		100.00	%		100.00	%	Detroit, MI		280		280
Queenswood	1990		99.00	%		100.00	%	Corona, NY		296		296
+   Sky55	2006		100.00	%		100.00	%	Chicago, IL		411		411
Southfield	2002		100.00	%		100.00	%	White Marsh, MD		212		212
Village Green	1994-1995		100.00	%		100.00	%	Beachwood, OH		360		360
Consolidated Apartment Communities Subtotal										11,684		11,352
Consolidated Supported-Living Apartments
Forest Trace	2000		100.00	%		100.00	%	Lauderhill, FL		322		322
Sterling Glen of Bayshore	2001		80.00	%		100.00	%	Bayshore, NY		85		85
Sterling Glen of Center City	2002		80.00	%		100.00	%	Philadelphia, PA		135		135
Sterling Glen of Darien	2001		80.00	%		100.00	%	Darien, CT		80		80
Sterling Glen of Forest Hills	2001		56.00	%		70.00	%	Forest Hills, NY		83		58
Sterling Glen of Lynbrook	2005		80.00	%		100.00	%	Lynbrook, NY		130		130
Sterling Glen of Plainview	2000		80.00	%		100.00	%	Plainview, NY		79		79
*  Sterling Glen of Roslyn	2007		80.00	%		100.00	%	Roslyn, NY		158		158
Sterling Glen of Rye Brook	2004		40.00	%		50.00	%	Ryebrook, NY		168		84
Sterling Glen of Stamford	2000		80.00	%		100.00	%	Stamford, CT		166		166
Consolidated Supported-Living Apartments Subtotal										1,406		1,297
Consolidated Apartment Total										13,090		12,649

63

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

RESIDENTIAL GROUP
APARTMENTS (continued)

	Date of
	Opening/
	Acquisition/	Legal			Pro-Rata				Leasable		Leasable Units
Name	Expansion	Ownership(1)			Ownership(2)			Location	Units		at Pro-Rata %
Unconsolidated Apartment Communities
^*++  Arbor Glen	2001-2007		50.00	%		50.00	%	Twinsburg, OH		288		144
Bayside Village	1988-1989		50.00	%		50.00	%	San Francisco, CA		862		431
Big Creek	1996-2001		50.00	%		50.00	%	Parma Hts., OH		516		258
Boulevard Towers	1969		50.00	%		50.00	%	Amherst, NY		402		201
(3)        Brookpark Place	1976		100.00	%		100.00	%	Wheeling, WV		152		152
Brookview Place	1979		3.00	%		3.00	%	Dayton, OH		232		7
(3)        Burton Place	1999		90.00	%		90.00	%	Burton, MI		200		180
Camelot	1967		50.00	%		50.00	%	Parma, OH		151		76
(3)        Carl D. Perkins	2002		100.00	%		100.00	%	Pikeville, KY		150		150
(3)        Cedar Place	1974		2.39	%		100.00	%	Lansing, MI		220		220
Cherry Tree	1996-2000		50.00	%		50.00	%	Strongsville, OH		442		221
Chestnut Lake	1969		50.00	%		50.00	%	Strongsville, OH		789		395
Clarkwood	1963		50.00	%		50.00	%	Warrensville Hts., OH		568		284
^*++   Cobblestone Court	2006-2008		50.00	%		50.00	%	Painesville, OH		304		152
Colonial Grand	2003		50.00	%		50.00	%	Tampa, FL		176		88
Connellsville Towers	1981		7.96	%		7.96	%	Connellsville, PA		111		9
Coppertree	1998		50.00	%		50.00	%	Mayfield Hts., OH		342		171
Deer Run	1987-1989		43.03	%		43.03	%	Twinsburg, OH		562		242
Eaton Ridge	2002-2004		50.00	%		50.00	%	Sagamore Hills, OH		260		130
(3)        Farmington Place	1980		100.00	%		100.00	%	Farmington, MI		153		153
Fenimore Court	1982		7.06	%		50.00	%	Detroit, MI		144		72
Fort Lincoln II	1979		45.00	%		45.00	%	Washington, D.C.		176		79
Fort Lincoln III & IV	1981		24.90	%		24.90	%	Washington, D.C.		306		76
(3)        Frenchtown Place	1975		4.92	%		100.00	%	Monroe, MI		151		151
(3)        Glendora Gardens	1983		1.99	%		99.00	%	Glendora, CA		105		104
Granada Gardens	1966		50.00	%		50.00	%	Warrensville Hts., OH		940		470
Hamptons	1969		50.00	%		50.00	%	Beachwood, OH		651		326
Hunter’s Hollow	1990		50.00	%		50.00	%	Strongsville, OH		208		104
Independence Place I	1973		50.00	%		50.00	%	Parma Hts., OH		202		101
Liberty Hills	1979-1986		50.00	%		50.00	%	Solon, OH		396		198
Met Lofts	2005		50.00	%		50.00	%	Los Angeles, CA		264		132
Midtown Towers	1969		63.00	%		63.00	%	Parma, OH		635		400
(3)        Millender Center	1985		3.97	%		100.00	%	Detroit, MI		339		339
(3)        Miramar Towers	1980		1.99	%		100.00	%	Los Angeles, CA		157		157

64

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Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

RESIDENTIAL GROUP
APARTMENTS (continued)

	Date of
	Opening/
	Acquisition/	Legal			Pro-Rata				Leasable		Leasable Units
Name	Expansion	Ownership(1)			Ownership(2)			Location	Units		at Pro-Rata %
Unconsolidated Apartment Communities (continued)
^*   Military Housing — Marines, Hawaii Increment II	2007-2010		10.00	%		10.00	%	Honolulu, HI		1,175		118
^*   Military Housing — Navy, Hawaii Increment III	2007-2010		10.00	%		10.00	%	Honolulu, HI		2,519		252
^*   Military Housing — Navy Midwest	2009		25.00	%		25.00	%	Chicago, IL		1,658		415
Newport Landing	2002-2005		50.00	%		50.00	%	Coventry, OH		336		168
Noble Towers	1979		50.00	%		50.00	%	Pittsburgh, PA		133		67
Nu Ken Tower (Citizen’s Plaza)	1981		8.84	%		50.00	%	New Kensington, PA		101		51
(3)       Oceanpointe Towers	1980		1.99	%		100.00	%	Long Branch, NJ		151		151
^*   Ohana Military Communities, Hawaii Increment I	2005-2008		10.00	%		10.00	%	Honolulu, HI		1,952		195
(3)      Panorama Towers	1978		99.00	%		99.00	%	Los Angeles, CA		154		152
(3)      Park Place Towers	1975		2.39	%		100.00	%	Mt. Clemens, MI		187		187
Parkwood Village	2001-2002		50.00	%		50.00	%	Brunswick, OH		204		102
Pebble Creek	1995-1996		50.00	%		50.00	%	Twinsburg, OH		148		74
(3)      Perrytown	1973		4.92	%		100.00	%	Pittsburgh, PA		231		231
(3)      Pine Grove Manor	1973		1.99	%		100.00	%	Muskegon Township, MI		172		172
^       Pine Ridge Valley	1967-1974, 2005-2007		50.00	%		50.00	%	Willoughby Hills, OH		1,309		655
(3)      Potomac Heights Village	1981		1.99	%		100.00	%	Keyser, WV		141		141
Residences at University Park	2002		25.00	%		40.00	%	Cambridge, MA		135		54
(3)      Riverside Towers	1977		2.96	%		100.00	%	Coshocton, OH		100		100
Settler’s Landing at Greentree	2001-2004		50.00	%		50.00	%	Streetsboro, OH		408		204
(3)      Shippan Avenue	1980		100.00	%		100.00	%	Stamford, CT		148		148
St. Mary’s Villa	2002		35.22	%		35.22	%	Newark, NJ		360		127
^*   Stratford Crossing	2007-2009		50.00	%		50.00	%	Wadsworth, OH		348		174
Surfside Towers	1970		50.00	%		50.00	%	Eastlake, OH		246		123
^*   Sutton Landing	2007-2008		50.00	%		50.00	%	Brimfield, OH		216		108
Tamarac	1990-2001		50.00	%		50.00	%	Willoughby, OH		642		321
(3)      The Springs	1981		1.99	%		100.00	%	La Mesa, CA		129		129
(3)      Tower 43	2002		100.00	%		100.00	%	Kent, OH		101		101
(3)      Towne Centre Place	1975		4.43	%		100.00	%	Ypsilanti, MI		170		170
Twin Lake Towers	1966		50.00	%		50.00	%	Denver, CO		254		127
*       Uptown Oakland	2008		50.00	%		50.00	%	Oakland, CA		665		333
(3)      Village Square	1978		100.00	%		100.00	%	Williamsville, NY		100		100
Westwood Reserve	2002		50.00	%		50.00	%	Tampa, FL		340		170
Woodgate/Evergreen Farms	2004-2006		33.00	%		33.00	%	Olmsted Township, OH		348		115
Worth Street	2003		50.00	%		50.00	%	Manhattan, NY		330		165
(3)      Ziegler Place	1978		100.00	%		100.00	%	Livonia, MI		141		141
Unconsolidated Apartment Communities Subtotal										27,306		12,414

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

RESIDENTIAL GROUP
APARTMENTS (continued)

	Date of
	Opening/
	Acquisition/	Legal			Pro-Rata				Leasable		Leasable Units
Name	Expansion	Ownership(1)			Ownership(2)			Location	Units		at Pro-Rata %
Unconsolidated Supported-Living Apartments
Classic Residence by Hyatt	1989		50.00	%		50.00	%	Teaneck, NJ		220		110
Classic Residence by Hyatt	1990		50.00	%		50.00	%	Chevy Chase, MD		339		170
Classic Residence by Hyatt	2000		50.00	%		50.00	%	Yonkers, NY		310		155
Sterling Glen of Glen Cove	2000		40.00	%		50.00	%	Glen Cove, NY		80		40
Sterling Glen of Great Neck	2000		40.00	%		50.00	%	Great Neck, NY		142		71
Unconsolidated Supported-Living Apartments Subtotal										1,091		546
Unconsolidated Apartments Total										28,397		12,960
Combined Apartments Total										41,487		25,609
Federally Subsidized Housing (Total of 10 Buildings)										1,765
Total Apartments at January 31, 2007										43,252
Total Apartments at January 31, 2006										38,440

CONDOMINIUMS

	Date of
	Opening/												Units Sold		Units Sold as
	Acquisition/	Legal			Pro-Rata				Total		Total Units		as of		of 1/31/07 at
Name	Expansion	Ownership(1)			Ownership(2)			Location	Units		at Pro-Rata %		1/31/07		Pro-Rata %
Unconsolidated For Sale Condominiums
+   1100 Wilshire	2006-2007		40.00	%		40.00	%	Los Angeles, CA		228		91		139		56
*   Mercury	2007-2008		50.00	%		50.00	%	Los Angeles, CA		238		119		62		31
^*Central Station	1995-2009		25.00	%		25.00	%	Chicago, IL		2,140		535		571		143
Unconsolidated For Sale Condominiums Total										2,606		745		772		230
Total For Sale Condominiums at January 31, 2007										2,606

*	Property under construction as of January 31, 2007.
**	Expansion of property under construction as of January 31, 2007.
+	Property opened or acquired in 2006.
++	Expansion of property.
^	Property to open in phases.
(1)	Represents the Company’s share of a property’s profits and losses upon settlement of any preferred returns to which the Company or its partner(s) may be entitled.
(2)	Represents the Company’s share of a property’s profits and losses adjusted for any preferred returns to which the Company or its partner(s) may be entitled.
(3)	This property is reported on the equity method of accounting as the U.S. Department of Housing and Urban Development is the primary beneficiary of the property primarily due to the fact that they are either the lender on the mortgage or the guarantor of the mortgage.

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