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

Forest City Enterprises, Inc.

Supplemental Package

Years Ended January 31, 2008 and 2007

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Forest City Enterprises, Inc. and Subsidiaries
Years Ended January 31, 2008 and 2007
Supplemental Package

NYSE: FCEA, FCEB

Index

Corporate Overview	2
Supplemental Operating Information
Occupancy Data	4
Comparable Net Operating Income (NOI)	5
Comparable NOI Detail	6-7
Reconciliation of NOI to Net Earnings	8-9
Lease Expirations Schedules	10-11
Schedules of Significant Tenants	12-13
Development Pipeline	14-16
Supplemental Financial Information
Mortgage Financings	17
Scheduled Maturities Table	18-19
Forest City Enterprises, Inc. Consolidated Balance Sheet Information	20-21
Consolidated Earnings Information	22-25
Investments in and Advances to Affiliates	26-27
Real Estate and Related Nonrecourse Mortgage Debt	28-29
Forest City Rental Properties Corporation Consolidated Balance Sheet Information	30-31
Consolidated Earnings Information	32-33
Real Estate Activity	34-37
Results of Operations Summary	38-40
Reconciliation of Net Earnings to EBDT	41-42
Summary of EBDT	43-54
Property Listing	55-67

This Supplemental Package, together with other statements and information publicly disseminated by us, contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements reflect management’s current views with respect to financial results related to future events and are based on assumptions and expectations that may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial or otherwise, may differ from the results discussed in the forward-looking statements. Risk factors discussed in Item 1A of our Form 10-K for the year ended January 31, 2008 and other factors that might cause differences, some of which could be material, include, but are not limited to, general real estate development and investment risks including lack of satisfactory financing, construction and lease-up delays and cost overruns, dependence on rental income from real property, reliance on major tenants, the effect of economic and market conditions on a nationwide basis as well as in our primary markets, vacancies in our properties, downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, department store consolidations, international activities, the impact of terrorist acts, risks associated with an investment in and operation of a professional sports team, conflicts of interests, our substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by our credit facility, the level and volatility of interest rates, the continued availability of tax-exempt government financing, effects of uninsured or underinsured losses, environmental liabilities, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, changes in market conditions, litigation risks, as well as other risks listed from time to time in our reports filed with the Securities and Exchange Commission. We have no obligation to revise or update any forward-looking statements, other than imposed by law, as a result of future events or new information. Readers are cautioned not to place undue reliance on such forward-looking statements.

1

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Corporate Overview
We principally engage in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. We operate through three strategic business units and five reportable segments. TheCommercial Group, our largest business unit, owns, develops, acquires and operates regional malls, specialty/urban retail centers, office and life science buildings, hotels and mixed-use projects. TheResidential Groupowns, develops, acquires and operates residential rental properties, including upscale and middle-market apartments and adaptive re-use developments. Additionally, the Residential Group develops for-sale condominium projects and also owns interests in entities that develop and manage military family housing. New York City operations are part of the Commercial Group or Residential Group depending on the nature of the operations. TheLand Development Groupacquires and sells both land and developed lots to residential, commercial and industrial customers. It also owns and develops land into master-planned communities and mixed-use projects.Real Estate Groupsare the combined Commercial, Residential and Land Development Groups.Corporate Activitiesand theNets, a franchise of the National Basketball Association (“NBA”) in which we account for our investment on the equity method of accounting, are reportable segments of the Company.

We have approximately $10 billion of assets in 27 states and the District of Columbia at January 31, 2008. Our core markets include the New York City/Philadelphia metropolitan area, Denver, Boston, the Greater Washington, D.C./Baltimore metropolitan area, Chicago and the state of California. As a result of an ongoing effort to increase property concentration in the core markets, these markets now account for approximately 77 percent of the cost of our real estate portfolio at January 31, 2008. We have offices in Albuquerque, Boston, Chicago, Denver, London (England), Los Angeles, New York City, San Francisco, Washington, D.C. and our corporate headquarters in Cleveland, Ohio.

SUPPLEMENTAL FINANCIAL AND OPERATING INFORMATION
We recommend that this supplemental package be read in conjunction with our Form 10-K for the year ended January 31, 2008. This supplemental package contains certain measures prepared in accordance with generally accepted accounting principles (“GAAP”) under the full consolidation accounting method, and certain measures prepared under the pro-rata consolidation method, a non-GAAP measure. Along with net earnings, we use an additional measure, Earnings before Depreciation, Amortization and Deferred Taxes (“EBDT”), to report operating results. EBDT is a non-GAAP measure and may not be directly comparable to similarly-titled measures reported by other companies. The non-GAAP financial measures presented under the pro-rata consolidation method, comparable net operating income (“NOI”) and EBDT, provide supplemental information about our operations. Although these measures are not presented in accordance with GAAP, we believe they are necessary to understand our business and operating results, along with net earnings and other GAAP measures. Our investors can use these non-GAAP measures as supplementary information to evaluate our business. Our non-GAAP measures are not intended to be performance measures that should be regarded as alternatives to, or more meaningful than, our GAAP measures.

Consolidation Methods
We present certain financial amounts under the pro-rata consolidation method because we believe this information is useful to investors as this method reflects the manner in which we operate our business. In line with industry practice, we have made a large number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. Under the pro-rata consolidation method, we generally present our investments proportionate to our economic share of ownership. Under GAAP, the full consolidation method is used to report partnership assets and liabilities consolidated at 100% if deemed to be under our control or if we are deemed to be the primary beneficiary of the variable interest entity (“VIE”), even if our ownership is not 100%. We provide reconciliations from the full consolidation method to the pro-rata consolidation method throughout our supplemental package. Please refer to our property listing for the detail of our consolidated and non-consolidated properties on pages 55-67.

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 40-42 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 our operating performance. The term “comparable,” which is used throughout this document, is generally defined as including properties that were open and operated in both the fiscal years ended January 31, 2008 and 2007.

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

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

Comparable NOI is useful because it measures the performance of the same properties on a period-to-period basis and, along with EBDT (as discussed beginning on page 40), is used to assess operating performance and resource allocation of our strategic business units. While property dispositions, acquisitions or other factors can impact net earnings in the short term, we believe comparable NOI gives a more consistent view of our overall performance from quarter-to-quarter and year-to-year. A reconciliation of net earnings, the most comparable financial measure calculated in accordance with GAAP, to NOI and reconciliation from NOI to comparable NOI are provided on pages
6-9 of this document. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 43-54.

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, 2008 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
Robert G. O’Brien
Vice President - Finance and Investment

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
We offer our shareholders the opportunity to purchase additional shares of common stock through the Forest City Enterprises, Inc. Dividend Reinvestment and Stock Purchase Plan (the “Plan”) at 97% of current market value. You may obtain a copy of the Plan prospectus and an enrollment card by contacting National City Bank at (800) 622-6757.

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Occupancy Data - January 31, 2008 and 2007

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, 2008			January 31, 2008			January 31, 2007			January 31, 2007
Retail
Comparable		94.1	%		94.4	%		94.6	%		94.7	%
Total		92.1	%		92.6	%		93.1	%		93.7	%
Office
Comparable		92.7	%		93.1	%		93.6	%		93.0	%
Total		89.7	%		89.9	%		90.1	%		91.3	%
Residential
Comparable		93.2	%		95.7	%		95.3	%		95.7	%
Total		91.9	%		91.6	%		92.6	%		91.6	%
Hotels
Comparable and Total(1)					70.0	%					67.7	%
Comparable ADR and Total ADR(1)				$	141.60					$	136.32

Retail and office occupancy as of January 31, 2008 and 2007 is based on square feet leased at the end of the fiscal quarter. Average Occupancy Year-to-Date as of January 31, 2008 and 2007 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, 2008 and 2007 represents total units occupied divided by total units available. Average residential occupancy year-to-date for 2007 and 2006 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, 2008 and 2007.

(1) Total Hotel Average Occupancy Year-to-Date and Total ADR for January 31, 2007 have been restated to excludeUniversity Park at MIT Hotel, which was sold during the year ended January 31, 2008.

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

We use NOI, along with EBDT as discussed on page 2, to assess operating performance. Comparable NOI is defined as NOI from properties opened and operated in both the three months and years ended January 31, 2008 and 2007. The following schedules on pages 6-7 present comparable NOI for each of our major product lines, as well as the strategic business unit under which these product lines operate. A reconciliation of NOI to the most comparable GAAP measure, net earnings, is presented on pages 8-9. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 43-54.

Comparable Net Operating Income (NOI) (% change over same period, prior year)
	Three Months Ended January 31, 2008						Year Ended January 31, 2008
	Full			Pro-Rata			Full			Pro-Rata
	Consolidation			Consolidation			Consolidation			Consolidation
Retail		5.2	%		6.8	%		6.8	%		6.9	%
Office		3.7	%		2.0	%		2.0	%		2.1	%
Hotel		-33.9	%		-31.5	%		5.2	%		4.9	%
Residential		1.1	%		1.4	%		3.6	%		4.2	%
Total		2.9	%		2.9	%		4.4	%		4.6	%

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income (dollars in thousands)
	Three Months Ended January 31, 2008														Three Months Ended January 31, 2007														% Change
							Plus													Plus
	Full			Less			Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Pro-Rata
	Consolidation			Minority			Investments at			Discontinued		Consolidation			Consolidation			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	$	56,769		$	2,632		$	2,638		$	-	$	56,775		$	53,963		$	2,232	$	1,430		$	-		$	53,161			5.2	%		6.8	%
Total		68,553			3,214			6,520			-		71,859			62,219			2,902		4,296			186			63,799
Office Buildings
Comparable		45,879			3,041			944			-		43,782			44,227			2,556		1,261			-			42,932			3.7	%		2.0	%
Total		55,062			1,271			1,861			-		55,652			43,321			2,400		1,294			-			42,215
Hotels
Comparable		2,158			-			270			-		2,428			3,266			-		281			-			3,547			-33.9	%		-31.5	%
Total		1,526			(23	)		1,156			-		2,705			3,388			-		491			(405	)		3,474
Earnings from Commercial Land Sales		15,096			879			-			-		14,217			18,989			1,556		395			-			17,828
Other		(5,848	)		(407	)		(33	)		-		(5,474	)		(7,766	)		2,622		(14	)		-			(10,402	)
Total Commercial Group
Comparable		104,806			5,673			3,852			-		102,985			101,456			4,788		2,972			-			99,640			3.3	%		3.4	%
Total		134,389			4,934			9,504			-		138,959			120,151			9,480		6,462			(219	)		116,914
Residential Group
Apartments
Comparable		23,467			763			7,270			-		29,974			23,216			652		6,999			-			29,563			1.1	%		1.4	%
Total		26,352			1,000			8,068			724		34,144			39,601			1,162		8,372			5,404			52,215
Military Housing
Comparable		-			-			-			-		-			-			-		-			-			-
Total		11,260			-			730			-		11,990			5,576			-		145			-			5,721
Sale of Residential Development Project		(28	)		-			-			-		(28	)		-			-		-			-			-
Total Residential Group
Comparable		23,467			763			7,270			-		29,974			23,216			652		6,999			-			29,563			1.1	%		1.4	%
Total		37,584			1,000			8,798			724		46,106			45,177			1,162		8,517			5,404			57,936
Total Rental Properties
Comparable		128,273			6,436			11,122			-		132,959			124,672			5,440		9,971			-			129,203			2.9	%		2.9	%
Total		171,973			5,934			18,302			724		185,065			165,328			10,642		14,979			5,185			174,850
Land Development Group		31,018			4,397			273			-		26,894			46,777			2,269		130			-			44,638
The Nets		(5,825	)		-			738			-		(5,087	)		(619	)		-		1			-			(618	)
Corporate Activities		(6,945	)		-			-			-		(6,945	)		(10,436	)		-		-			-			(10,436	)
Grand Total	$	190,221		$	10,331		$	19,313		$	724	$	199,927		$	201,050		$	12,911	$	15,110		$	5,185		$	208,434

6

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income (dollars in thousands)
	Year Ended January 31, 2008													Year Ended January 31, 2007													% Change
						Plus													Plus
	Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Pro-Rata
	Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			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	$	213,752		$	20,018	$	11,240		$	-	$	204,974		$	200,100		$	17,447	$	9,173		$	-	$	191,826			6.8	%		6.9	%
Total		248,889			13,126		24,098			-		259,861			210,793			17,228		13,207			1,994		208,766
Office Buildings
Comparable		182,336			18,938		4,226			-		167,624			178,688			18,854		4,366			-		164,200			2.0	%		2.1	%
Total		198,961			9,676		7,443			-		196,728			174,399			18,767		4,399			-		160,031
Hotels
Comparable		14,093			-		1,106			-		15,199			13,398			-		1,096			-		14,494			5.2	%		4.9	%
Total		14,738			118		2,611			-		17,231			14,130			-		1,947			10,715		26,792
Earnings from Commercial Land Sales		23,555			1,670		-			-		21,885			37,143			2,684		641			-		35,100
Other		(16,983	)		5,908		(908	)		-		(23,799	)		(24,919	)		6,815		(5	)		-		(31,739	)
Total Commercial Group
Comparable		410,181			38,956		16,572			-		387,797			392,186			36,301		14,635			-		370,520			4.6	%		4.7	%
Total		469,160			30,498		33,244			-		471,906			411,546			45,494		20,189			12,709		398,950
Residential Group
Apartments
Comparable		92,745			2,840		28,806			-		118,711			89,540			2,627		27,004			-		113,917			3.6	%		4.2	%
Total		108,293			4,433		38,075			7,191		149,126			107,318			3,838		31,766			24,016		159,262
Military Housing
Comparable		-			-		-			-		-			-			-		-			-		-
Total		24,826			-		1,823			-		26,649			12,052			-		305			-		12,357
Sale of Residential Development Project		17,607			-		-			-		17,607			-			-		-			-		-
Total Residential Group
Comparable		92,745			2,840		28,806			-		118,711			89,540			2,627		27,004			-		113,917			3.6	%		4.2	%
Total		150,726			4,433		39,898			7,191		193,382			119,370			3,838		32,071			24,016		171,619
Total Rental Properties
Comparable		502,926			41,796		45,378			-		506,508			481,726			38,928		41,639			-		484,437			4.4	%		4.6	%
Total		619,886			34,931		73,142			7,191		665,288			530,916			49,332		52,260			36,725		570,569
Land Development Group		43,396			5,194		676			-		38,878			99,056			5,055		790			-		94,791
The Nets		(20,878	)		-		3,427			-		(17,451	)		(14,703	)		-		2,812			-		(11,891	)
Corporate Activities		(41,916	)		-		-			-		(41,916	)		(41,196	)		-		-			-		(41,196	)
Grand Total	$	600,488		$	40,125	$	77,245		$	7,191	$	644,799		$	574,073		$	54,387	$	55,862		$	36,725	$	612,273

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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, 2008															Three Months Ended January 31, 2007
							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	$	406,043		$	19,717		$	87,410		$	703		$	474,439			$	348,254		$	20,200		$	145,274		$	14,055		$	487,383
Exclude straight-line rent adjustment (1)		(9,018	)		-			-			-			(9,018	)			(6,995	)		-			-			-			(6,995	)
Adjusted revenues		397,025			19,717			87,410			703			465,421				341,259			20,200			145,274			14,055			480,388
Operating expenses		240,602			10,374			52,582			170			282,980				216,889			7,379			94,094			9,840			313,444
Add back non-Real Estate depreciation and amortization (b)		3,233			-			4,160			-			7,393				639			-			(99	)		-			540
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		-			-			20			-			20				97			-			228			-			325
Exclude straight-line rent adjustment (2)		(1,755	)		-			-			-			(1,755	)			(2,797	)		-			-			-			(2,797	)
Exclude preference payment		(936	)		-			-			-			(936	)			(898	)		-			-			-			(898	)
Adjusted operating expenses		241,144			10,374			56,762			170			287,702				213,930			7,379			94,223			9,840			310,614
Add interest income and other income		21,002			800			2,375			191			22,768				31,671			90			2,501			970			35,052
Add equity in earnings of unconsolidated entities		9,665			188			(10,037	)		-			(560	)			32,731			-			(29,123	)		-			3,608
Remove gain on disposition recorded on equity method		(12,286	)		-			12,286			-			-				-			-			-			-			-
Add back provision for decline recorded on equity method		8,269			-			(8,269	)		-			-				-			-			-			-			-
Add back equity method depreciation and amortization expense (see below)		7,690			-			(7,690	)		-			-				9,319			-			(9,319	)		-			-
Net Operating Income		190,221			10,331			19,313			724			199,927				201,050			12,911			15,110			5,185			208,434
Interest expense, including early extinguishment of debt		(91,191	)		(473	)		(19,313	)		(275	)		(110,306	)			(79,349	)		(4,595	)		(15,110	)		(5,598	)		(95,462	)
Equity in earnings of unconsolidated entities		(7,707	)		(188	)		10,037			-			2,518				(32,731	)		-			29,123			-			(3,608	)
Gain on disposition of equity method rental properties (e)		12,286			-			-			-			12,286				-			-			-			-			-
Provision for decline in real estate of equity method rental properties		(8,269	)		-			-			-			(8,269	)			-			-			-			-			-
Equity method depreciation and amortization expense (see above)		(7,690	)		-			7,690			-			-				(9,319	)		-			9,319			-			-
Gain on disposition of rental properties and other investments		-			-			-			1,046			1,046				-			-			-			64,641			64,641
Provision for decline in real estate		(3,302	)		(10	)		-			-			(3,292	)			-			-			-			-			-
Depreciation and amortization - Real Estate Groups (a)		(59,409	)		(1,118	)		(7,096	)		(6	)		(65,393	)			(51,144	)		(3,074	)		(8,867	)		(1,001	)		(57,938	)
Amortization of mortgage procurement costs - Real Estate Groups (c)		(2,653	)		(114	)		(594	)		(10	)		(3,143	)			(2,562	)		(161	)		(452	)		(47	)		(2,900	)
Straight-line rent adjustment (1) + (2)		7,263			-			-			-			7,263				4,198			-			-			-			4,198
Preference payment		(936	)		-			-			-			(936	)			(898	)		-			-			-			(898	)
Earnings before income taxes		28,613			8,428			10,037			1,479			31,701				29,245			5,081			29,123			63,180			116,467
Income tax provision		(16,007	)		-			-			(571	)		(16,578	)			(25,033	)		-			-			(24,416	)		(49,449	)
Earnings before minority interest and discontinued operations		12,606			8,428			10,037			908			15,123				4,212			5,081			29,123			38,764			67,018
Minority interest		(8,616	)		(8,616	)		-			-			-				(5,081	)		(5,081	)		-			-			-
Equity in earnings (loss) of unconsolidated entities		7,707			188			(10,037	)		-			(2,518	)			32,731			-			(29,123	)		-			3,608
Earnings from continuing operations		11,697			-			-			908			12,605				31,862			-			-			38,764			70,626
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		266			-			-			(266	)		-				(899	)		-			-			899			-
Gain (loss) on disposition of rental properties		642			-			-			(642	)		-				39,663			-			-			(39,663	)		-
		908			-			-			(908	)		-				38,764			-			-			(38,764	)		-
Net earnings	$	12,605		$	-		$	-		$	-		$	12,605			$	70,626		$	-		$	-		$	-		$	70,626
(a) Depreciation and amortization - Real Estate Groups	$	59,409		$	1,118		$	7,096		$	6		$	65,393			$	51,144		$	3,074		$	8,867		$	1,001		$	57,938
(b) Depreciation and amortization - Non-Real Estate		3,233			-			4,160			-			7,393				639			-			(99	)		-			540
Total depreciation and amortization	$	62,642		$	1,118		$	11,256		$	6		$	72,786			$	51,783		$	3,074		$	8,768		$	1,001		$	58,478
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	2,653		$	114		$	594		$	10		$	3,143			$	2,562		$	161		$	452		$	47		$	2,900
(d) Amortization of mortgage procurement costs - Non-Real Estate		-			-			20			-			20				97			-			228			-			325
Total amortization of mortgage procurement costs	$	2,653		$	114		$	614		$	10		$	3,163			$	2,659		$	161		$	680		$	47		$	3,225

(e) 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” (“SFAS No. 144”) and therefore are reported in continuing operations when sold. For the three months ended January 31, 2008, one equity method property was sold, University Park atMIT Hotel, resulting in a pre-tax gain on disposition of $12,286.

8

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, 2008															Year Ended January 31, 2007
							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	$	1,295,620		$	71,040		$	344,638		$	26,304		$	1,595,522			$	1,123,351		$	97,031		$	355,457		$	102,712		$	1,484,489
Exclude straight-line rent adjustment (1)		(25,166	)		-			-			-			(25,166	)			(15,950	)		-			-			(44	)		(15,994	)
Adjusted revenues		1,270,454			71,040			344,638			26,304			1,570,356				1,107,401			97,031			355,457			102,668			1,468,495
Operating expenses		787,654			34,461			224,833			20,055			998,081				677,403			45,406			234,796			68,711			935,504
Add back non-Real Estate depreciation and amortization (b)		10,663			-			10,431			-			21,094				1,571			-			7,174			-			8,745
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		-			-			125			-			125				333			1			819			-			1,151
Exclude straight-line rent adjustment (2)		(8,615	)		-			-			-			(8,615	)			(6,299	)		-			-			(938	)		(7,237	)
Exclude preference payment		(3,707	)		-			-			-			(3,707	)			(898	)		-			-			-			(898	)
Adjusted operating expenses		785,995			34,461			235,389			20,055			1,006,978				672,110			45,407			242,789			67,773			937,265
Add interest income and other income		73,368			2,662			11,533			942			83,181				61,411			2,763			3,301			1,830			63,779
Add equity in earnings of unconsolidated entities		12,273			884			(13,149	)		-			(1,760	)			48,542			-			(31,278	)		-			17,264
Remove gain on disposition recorded on equity method		(14,392	)		-			14,392			-			-				(7,662	)		-			7,662			-			-
Add back provision for decline recorded on equity method		8,269			-			(8,269	)		-			-				400			-			(400	)		-			-
Add back equity method depreciation and amortization expense (see below)		36,511			-			(36,511	)		-			-				36,091			-			(36,091	)		-			-
Net Operating Income		600,488			40,125			77,245			7,191			644,799				574,073			54,387			55,862			36,725			612,273
Interest expense, including early extinguishment of debt		(337,842	)		(13,108	)		(72,211	)		(4,542	)		(401,487	)			(285,507	)		(24,262	)		(55,862	)		(20,229	)		(337,336	)
Equity in earnings of unconsolidated entities		(10,315	)		(884	)		13,149			-			3,718				(48,542	)		-			31,278			-			(17,264	)
Gain on disposition of equity method rental properties (e)		14,392			-			-			-			14,392				7,662			-			-			-			7,662
Provision for decline in real estate of equity method rental properties		(8,269	)		-			-			-			(8,269	)			(400	)		-			-			-			(400	)
Equity method depreciation and amortization expense (see above)		(36,511	)		-			36,511			-			-				(36,091	)		-			36,091			-			-
Gain on disposition of rental properties and other investments		603			-			-			106,333			106,936				-			-			-			233,852			233,852
Preferred return on disposition		-			-			(5,034	)		-			(5,034	)			-			-			-			-			-
Provision for decline in real estate		(3,302	)		(10	)		-			-			(3,292	)			(1,923	)		-			-			-			(1,923	)
Depreciation and amortization - Real Estate Groups (a)		(221,921	)		(7,286	)		(34,369	)		(1,947	)		(250,951	)			(175,244	)		(13,588	)		(34,779	)		(10,310	)		(206,745	)
Amortization of mortgage procurement costs - Real Estate Groups (c)		(11,624	)		(730	)		(2,142	)		(90	)		(13,126	)			(10,377	)		(1,061	)		(1,312	)		(370	)		(10,998	)
Straight-line rent adjustment (1) + (2)		16,551			-			-			-			16,551				9,651			-			-			(894	)		8,757
Preference payment		(3,707	)		-			-			-			(3,707	)			(898	)		-			-			-			(898	)
Earnings before income taxes		(1,457	)		18,107			13,149			106,945			100,530				32,404			15,476			31,278			238,774			286,980
Income tax provision		(3,064	)		-			-			(41,323	)		(44,387	)			(34,728	)		-			-			(92,265	)		(126,993	)
Earnings before minority interest and discontinued operations		(4,521	)		18,107			13,149			65,622			56,143				(2,324	)		15,476			31,278			146,509			159,987
Minority interest		(18,991	)		(18,991	)		-			-			-				(15,476	)		(15,476	)		-			-			-
Equity in earnings (loss) of unconsolidated entities		10,315			884			(13,149	)		-			(3,718	)			48,542			-			(31,278	)		-			17,264
Earnings from continuing operations		(13,197	)		-			-			65,622			52,425				30,742			-			-			146,509			177,251
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		376			-			-			(376	)		-				3,017			-			-			(3,017	)		-
Gain (loss) on disposition of rental properties		65,246			-			-			(65,246	)		-				143,492			-			-			(143,492	)		-
		65,622			-			-			(65,622	)		-				146,509			-			-			(146,509	)		-
Net earnings	$	52,425		$	-		$	-		$	-		$	52,425			$	177,251		$	-		$	-		$	-		$	177,251
(a) Depreciation and amortization - Real Estate Groups	$	221,921		$	7,286		$	34,369		$	1,947		$	250,951			$	175,244		$	13,588		$	34,779		$	10,310		$	206,745
(b) Depreciation and amortization - Non-Real Estate		10,663			-			10,431			-			21,094				1,571			-			7,174			-			8,745
Total depreciation and amortization	$	232,584		$	7,286		$	44,800		$	1,947		$	272,045			$	176,815		$	13,588		$	41,953		$	10,310		$	215,490
(c) Amortization of mortgage procurement costs - Real Estate Groups	$	11,624		$	730		$	2,142		$	90		$	13,126			$	10,377		$	1,061		$	1,312		$	370		$	10,998
(d) Amortization of mortgage procurement costs - Non-Real Estate		-			-			125			-			125				333			1			819			-			1,151
Total amortization of mortgage procurement costs	$	11,624		$	730		$	2,267		$	90		$	13,251			$	10,710		$	1,062		$	2,131		$	370		$	12,149

(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, 2008, two equity method properties were sold;White Acres, resulting in a pre-tax gain on disposition of $2,106 andUniversity Park at MIT Hotel, resulting in a pre-tax gain on disposition of $12,286. For the year ended January 31, 2007, one equity method property was sold,Midtown Plaza, resulting in a pre-tax gain on disposition of $7,662.

9

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Retail Lease Expirations as of January 31, 2008

													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)
2008		198		683,506		5.61	%	$	13,994,932		5.17	%	$	26.55
2009		261		870,180		7.15			16,891,576		6.24			24.24
2010		242		651,267		5.35			15,720,014		5.81			29.59
2011		331		1,247,369		10.24			31,777,217		11.75			29.04
2012		208		899,634		7.39			21,440,815		7.93			28.40
2013		145		579,006		4.76			17,134,244		6.33			31.68
2014		163		708,505		5.82			16,322,861		6.03			28.89
2015		173		715,552		5.88			19,089,224		7.06			30.46
2016		259		1,260,968		10.36			36,059,989		13.33			39.50
2017		150		1,115,979		9.16			24,073,011		8.90			24.71
Thereafter		100		3,443,850		28.28			58,006,956		21.45			18.89
Total		2,230		12,175,816		100.00	%	$	270,510,839		100.00	%	$	26.56

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

10

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Office Lease Expirations as of January 31, 2008
 

													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)
2008		113		723,817		6.92		$	13,032,621		4.67		$	20.57
2009		76		581,112		5.55			10,949,651		3.92			22.90
2010		76		1,315,417		12.57			24,312,847		8.70			23.09
2011		51		682,969		6.53			14,133,835		5.06			26.55
2012		47		995,871		9.52			28,115,054		10.06			29.86
2013		29		796,573		7.61			17,736,136		6.35			24.39
2014		20		610,408		5.83			13,985,826		5.01			28.25
2015		5		189,840		1.82			2,381,718		0.85			19.73
2016		14		395,369		3.78			7,541,915		2.70			21.54
2017		18		267,072		2.55			8,000,445		2.86			32.94
Thereafter		37		3,904,225		37.32			139,207,000		49.82			37.96
Total		486		10,462,673		100.00	%	$	279,397,048		100.00	%	$	29.86

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

11

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Retail Tenants as of January 31, 2008

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

	NUMBER		LEASED		PERCENTAGE OF
	OF		SQUARE		TOTAL RETAIL
TENANT	LEASES		FEET		SQUARE FEET
Bass Pro Shops, Inc.		3		510,855		4.20	%
AMC Entertainment, Inc.		5		462,863		3.80
Regal Entertainment Group		5		379,072		3.11
The Gap		24		308,834		2.54
TJX Companies		9		291,131		2.39
The Home Depot		2		282,000		2.32
Dick’s Sporting Goods		5		257,486		2.12
Circuit City Stores, Inc.		7		220,616		1.81
Abercrombie & Fitch Stores, Inc.		28		210,663		1.73
The Limited		33		188,608		1.55
Footlocker, Inc.		40		147,931		1.21
Pathmark Stores, Inc.		2		123,500		1.01
Ahold USA (Stop & Shop)		2		115,861		0.95
Subtotal		165		3,499,420		28.74
All Others		2,065		8,676,396		71.26
Total		2,230		12,175,816		100.00	%

12

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Office Tenants as of January 31, 2008

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

	LEASED		PERCENTAGE OF
	SQUARE		TOTAL OFFICE
TENANT	FEET		SQUARE FEET
City of New York		890,185		8.51	%
Millennium Pharmaceuticals, Inc.		693,743		6.63
U.S. Government		597,438		5.71
Morgan Stanley & Co.		444,685		4.25
Securities Industry Automation Corp.		433,971		4.15
Wellchoice, Inc.		392,514		3.75
Forest City Enterprises, Inc.(1)		360,635		3.45
Keyspan Energy		335,318		3.20
Bank of New York		323,043		3.09
Bear Stearns		292,142		2.79
Alkermes, Inc.		210,248		2.01
Clearbridge Advisors, LLC, a Legg Mason Company		195,249		1.87
Covington & Burling, LLP		160,565		1.53
Partners Health Care System, Inc.		136,150		1.30
Seyfarth Shaw, LLP		96,909		0.93
Subtotal		5,562,795		53.17
All Others		4,899,878		46.83
Total		10,462,673		100.00	%

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

13

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline

January 31, 2008

2007 Openings and Acquisitions (11)

														Cost at FCE
			Date				Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share		Sq. ft./			Gross
		Dev (D)	Opened /	FCE Legal			FCE % (h)			Consolidation		at 100%		(Non-GAAP) (b)		No. of			Leasable
Property	Location	Acq (A)	Acquired	Ownership % (h)			(1)			(GAAP) (a)		(2)		(1) X (2)		Units			Area
										(in millions)
Retail Centers:
Promenade Bolingbrook	Bolingbrook, IL	D	Q1-07		100.0	%		100.0	%	$	152.0	$	152.0	$	152.0		750,000			430,000	(f)
Victoria Gardens - Bass Pro	Rancho Cucamonga, CA	D	Q2-07		80.0	%		80.0	%		41.2		41.2		33.0		180,000			180,000
										$	193.2	$	193.2	$	185.0		930,000			610,000
Office:
Colorado Studios	Denver, CO	A	Q1-07		90.0	%		90.0	%	$	2.2	$	2.2	$	2.0		75,000
Commerce Court	Pittsburgh, PA	A	Q1-07		70.0	%		100.0	%		26.5		26.5		26.5		377,000
Illinois Science and Technology Park - Building Q	Skokie, IL	A/D	Q1-07		100.0	%		100.0	%		47.8		47.8		47.8		158,000
Richmond Office Park	Richmond, VA	A	Q2-07		100.0	%		100.0	%		116.0		116.0		116.0		570,000	(i)
New York Times	Manhattan, NY	D	Q3-07		70.0	%		100.0	%		542.9		542.9		542.9		737,000	(j)
										$	735.4	$	735.4	$	735.2		1,917,000
Residential:
Stapleton Town Center - Botanica Phase II	Denver, CO	D	Q2-07		90.0	%		90.0	%	$	26.3	$	26.3	$	23.7		154
Tobacco Row - Cameron Kinney	Richmond, VA	A	Q2-07		100.0	%		100.0	%		31.0		31.0		31.0		259
Wilson Building	Dallas, TX	A	Q4-07		100.0	%		100.0	%		21.4		21.4		21.4		143
										$	78.7	$	78.7	$	76.1		556
																			Units sold at
Condominiums:																			1/31/08
Mercury (c)	Los Angeles, CA	D	Q2-07		50.0	%		50.0	%	$	0.0	$	157.6	$	78.8		240		76
Total Openings (d)										$	1,007.3	$	1,164.9	$	1,075.1
LESS: Above properties to be sold as Condominiums										$	0.0	$	157.6	$	78.8
Openings and Acquisitions less Condominiums										$	1,007.3	$	1,007.3	$	996.3
Residential Phased-In Units (c) (e):																Opened in ‘07 / Total
Arbor Glenn	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
Stratford Crossing	Wadsworth, OH	D	2007-09		50.0	%		50.0	%		0.0		25.3		12.7	108/348
Sutton Landing	Brimfield, OH	D	2007-08		50.0	%		50.0	%		0.0		15.9		8.0	24/216
Cobblestone Court	Painesville, OH	D	2006-08		50.0	%		50.0	%		0.0		24.6		12.3	96/304
Total(g)										$	0.0	$	100.6	$	50.4	316/1,318

See attached footnotes.

14

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline

January 31, 2008

Under Construction and To Be Acquired (22)

														Cost at FCE
							Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share		Sq. ft./				Gross
		Dev (D)	Anticipated	FCE Legal			FCE % (h)			Consolidation		at 100%		(Non-GAAP) (b)		No. of				Leasable			Lease
Property	Location	Acq (A)	Opening	Ownership % (h)			(1)			(GAAP) (a)		(2)		(1) X (2)		Units				Area			Commitment %
										(in millions)
Retail Centers:
Orchard Town Center	Westminster, CO	D	Q1-08		100.0	%		100.0	%	$	164.1	$	164.1	$	164.1		983,000				569,000	(n)		59	%
Shops at Wiregrass	Tampa, FL	D	Q3-08		50.0	%		100.0	%(m)		149.3		149.3		149.3		646,000				356,000			73	%
White Oak Village	Richmond, VA	D	Q3-08		50.0	%		100.0	%		73.5		73.5		73.5		792,000				286,000			86	%
Village at Gulfstream (c)	Hallandale, FL	D	Q1-09		50.0	%		50.0	%		0.0		164.4		82.2		455,000				455,000	(o)		25	%
Promenade at Temecula Expansion	Temecula, CA	D	Q1-09		75.0	%		75.0	%		102.5		102.5		76.9		127,000				127,000			49	%
East River Plaza (c)	Manhattan, NY	D	Q3-09		35.0	%		50.0	%		0.0		407.4		203.7		517,000				517,000			64	%
Ridge Hill Retail	Yonkers, NY	D	Q4-09/Q2-10		70.0	%		100.0	%		670.7		670.7		670.7		1,200,000				1,200,000	(p)		13	%
										$	1,160.1	$	1,731.9	$	1,420.4		4,720,000				3,510,000
Office:
Johns Hopkins - 855 North Wolfe Street	East Baltimore, MD	D	Q1-08		76.6	%		76.6	%	$	111.2	$	111.2	$	85.2		278,000	(q)						45	%
818 Mission Street (c)	San Francisco, CA	A	Q1-08		50.0	%		50.0	%		0.0		20.6		10.3		34,000							18	%
Mesa Del Sol Town Center (c)	Albuquerque, NM	D	Q3-08		47.5	%		47.5	%		0.0		18.7		8.9		74,000							31	%
										$	111.2	$	150.5	$	104.4		386,000
Residential:
Lucky Strike	Richmond, VA	D	Q1-08		100.0	%		100.0	%	$	37.4	$	37.4	$	37.4		131
Uptown Apartments (c)	Oakland, CA	D	Q1-08/Q4-08		50.0	%		50.0	%		0.0		204.2		102.1		665
Dallas Mercantile	Dallas, TX	D	Q1-08/Q3-08		100.0	%		100.0	%		142.7		142.7		142.7		366	(r)
Haverhill	Haverhill, MA	D	Q1-09		100.0	%		100.0	%		72.8		72.8		72.8		305
										$	252.9	$	457.1	$	355.0		1,467
Military Housing:
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
Midwest Millington (c)(e)	Memphis, TN	D	2008-2009		25.0	%		25.0	%		0.0		38.1		9.5		318
Military Housing - Navy Midwest (c)(e)	Chicago, IL	D	2006-2009		25.0	%		25.0	%		0.0		264.7		66.2		1,658
Air Force Academy (c)(e)	Colorado Springs, CO	D	2007-2009		50.0	%		50.0	%		0.0		82.5		41.3		427
Military Housing - Marines, Hawaii Increment II (c)(e)	Honolulu, HI	D	2007-2010		10.0	%		10.0	%		0.0		338.8		33.9		1,175
Military Housing - Navy, Hawaii Increment III (c)(e)	Honolulu, HI	D	2007-2010		10.0	%		10.0	%		0.0		614.6		61.5		2,519
Pacific Northwest Communities (c)(e)	Seattle, WA	A/D	2007-2010		20.0	%		20.0	%		0.0		264.5		52.9		2,986
Hawaii Phase IV (c)(e)	Kaneohe, HI	D	2007-2014		10.0	%		10.0	%		0.0		257.9		25.8		917
										$	0.0	$	2,177.6	$	322.8		11,952
Total Under Construction (k)										$	1,524.2	$	4,517.1	$	2,202.6
Residential Phased-In Units (c) (e):																			Under Const./Total
Cobblestone Court	Painesville, OH	D	2006-08		50.0	%		50.0	%	$	0.0	$	24.6	$	12.3				96/304
Sutton Landing	Brimfield, OH	D	2007-08		50.0	%		50.0	%		0.0		15.9		8.0				192/216
Stratford Crossing	Wadsworth, OH	D	2007-09		50.0	%		50.0	%		0.0		25.3		12.7				240/348
Total (l)										$	0.0	$	65.8	$	33.0				528/868

See attached footnotes.

15

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline

January 31, 2008 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 $1,007.3 million to the Company’s pro-rata share (a non-GAAP measure) of $1,075.1 million consists of a reduction to full consolidation for minority interest of $11.0 million of cost and the addition of its share of cost for unconsolidated investments of $78.8 million.
(e)	Phased-in openings. Costs are representative of the total project.
(f)	Includes 39,000 square feet of office space.
(g)	The difference between the full consolidation cost amount (GAAP) of $0.0 million to the Company’s pro-rata share (a non-GAAP measure) of $50.4 million consists of the Company’s share of cost for unconsolidated investments of $50.4 million.
(h)	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.
(i)	Includes 11 office buildings.
(j)	Includes 23,000 square feet of retail space.
(k)	The difference between the full consolidation cost amount (GAAP) of $1,524.2 million to the Company’s pro-rata share (a non-GAAP measure) of $2,202.6 million consists of a reduction to full consolidation for minority interest of $51.6 million of cost and the addition of its share of cost for unconsolidated investments of $730.0 million.
(l)	The difference between the full consolidation cost amount (GAAP) of $0.0 million to the Company’s pro-rata share (a non-GAAP measure) of $33.0 million consists of Forest City’s share of cost for unconsolidated investments of $33.0 million.
(m)	As of January 31, 2008, Shops at Wiregrass was funded 50% by Forest City. Since this date, Forest City has entered into an agreement to pay back the original partner’s contribution and will fund 100% going forward.
(n)	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.
(o)	Includes 67,000 square feet of office space.
(p)	Includes 156,000 square feet of office space.
(q)	Includes 22,000 square feet of retail space.
(r)	Includes 18,000 square feet of retail space.

16

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Mortgage Financings

We use taxable and tax-exempt nonrecourse debt for our real estate projects. For those projects financed with taxable debt, we generally seek long-term, fixed-rate financing for those real estate project loans that mature within the next 12 months, as well as those real estate projects that 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 2008 and 2009. During the year ended January 31, 2008, we completed the following financings:

					Plus
			Less		Unconsolidated
	Full		Minority		Investments at		Pro-Rata
Purpose of Financing	Consolidation		Interest		Pro-Rata		Consolidation
	(in thousands)
Refinancings	$	1,142,700	$	50,800	$	171,429	$	1,263,329
Development projects and acquisitions(1)		1,005,570		1,763		245,202		1,249,009
Loan extensions/additional fundings		678,567		20,469		44,754		702,852
	$	2,826,837	$	73,032	$	461,385	$	3,215,190

(1) $915,053 of the $1,005,570 relates to development projects and represents the full amount available to be drawn on the loan.

Projects under Development Debt

We use nonrecourse mortgage debt for the financing of our development pipeline. We draw on these financings to partially fund the cost incurred with the development of our real estate. As of January 31, 2008, the detail of how much is outstanding compared to the total commitment under the financing is as follows:

					Plus
			Less		Unconsolidated
	Full		Minority		Investments at		Pro-Rata
	Consolidation		Interest		Pro-Rata		Consolidation
	(in thousands)
Total outstanding on projects under development	$	552,258	$	74,509	$	371,930	$	849,679
Total available commitment	$	1,283,538	$	88,088	$	520,127	$	1,715,577

17

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Mortgage Debt(dollars in thousands)
As of January 31, 2008

	Fiscal Year Ending January 31, 2009												Fiscal Year Ending January 31, 2010
							Plus												Plus
				Less			Unconsolidated									Less			Unconsolidated
	Full			Minority			Investments at			Pro-Rata			Full			Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	84,220		$	4,402		$	47,755		$	127,573		$	327,885		$	15,114		$	35,031		$	347,802
Weighted average rate		6.53	%		6.74	%		6.55	%		6.53	%		6.92	%		7.01	%		6.74	%		6.89	%
Variable:
Variable-rate debt		672,218			82,765			96,765			686,218			152,872			1,393			149,267			300,746
Weighted average rate		6.68	%		7.05	%		7.39	%		6.73	%		6.78	%		7.00	%		6.90	%		6.84	%
Tax-Exempt		85,413			24			4,050			89,439			1,160			26			40,000			41,134
Weighted average rate		3.12	%		2.90	%		3.57	%		3.14	%		2.81	%		2.86	%		2.58	%		2.59	%
Total variable-rate debt		757,631			82,789			100,815			775,657			154,032			1,419			189,267			341,880
Total Nonrecourse Mortgage Debt	$	841,851		$	87,191		$	148,570		$	903,230		$	481,917		$	16,533		$	224,298		$	689,682
Weighted Average Rate		6.30	%		7.04	%		7.02	%		6.35	%		6.86	%		7.01	%		6.11	%		6.62	%

	Fiscal Year Ending January 31, 2011												Fiscal Year Ending January 31, 2012
							Plus												Plus
				Less			Unconsolidated									Less			Unconsolidated
	Full			Minority			Investments at			Pro-Rata			Full			Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	174,421		$	15,858		$	21,665		$	180,228		$	375,489		$	18,962		$	35,661		$	392,188
Weighted average rate		6.78	%		2.44	%		7.17	%		7.21	%		7.03	%		7.21	%		6.92	%		7.01	%
Variable:
Variable-rate debt		170,753			-			12,896			183,649			10,056			-			6,784			16,840
Weighted average rate		6.28	%		-	%		6.36	%		6.28	%		5.61	%		-	%		6.68	%		6.04	%
Tax-Exempt		1,140			-			-			1,140			505			-			-			505
Weighted average rate		3.00	%		-	%		-	%		3.00	%		3.36	%		-	%		-	%		3.36	%
Total variable-rate debt		171,893			-			12,896			184,789			10,561			-			6,784			17,345
Total Nonrecourse Mortgage Debt	$	346,314		$	15,858		$	34,561		$	365,017		$	386,050		$	18,962		$	42,445		$	409,533
Weighted Average Rate		6.52	%		2.44	%		6.87	%		6.73	%		6.99	%		7.21	%		6.88	%		6.97	%

18

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Mortgage Debt(dollars in thousands)(continued)
As of January 31, 2008

	Fiscal Year Ending January 31, 2013												Thereafter
							Plus												Plus
				Less			Unconsolidated									Less			Unconsolidated
	Full			Minority			Investments at			Pro-Rata			Full			Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	319,644		$	6,556		$	29,062		$	342,150		$	2,650,047		$	178,118		$	770,598		$	3,242,527
Weighted average rate		5.98	%		6.28	%		6.55	%		6.02	%		5.79	%		5.98	%		5.64	%		5.74	%
Variable:
Variable-rate debt		45,366			-			10,116			55,482			653,826			-			25,429			679,255
Weighted average rate		6.37	%		-	%		6.20	%		6.34	%		6.39	%		-	%		5.29	%		6.35	%
Tax-Exempt		540			-			-			540			613,055			22,631			173,500			763,924
Weighted average rate		3.36	%		-	%		-	%		3.36	%		3.11	%		2.89	%		3.08	%		3.11	%
Total variable-rate debt		45,906			-			10,116			56,022			1,266,881			22,631			198,929			1,443,179
Total Nonrecourse Mortgage Debt	$	365,550		$	6,556		$	39,178		$	398,172		$	3,916,928		$	200,749		$	969,527		$	4,685,706
Weighted Average Rate		6.02	%		6.28	%		6.46	%		6.06	%		5.47	%		5.63	%		5.17	%		5.40	%

	Total
							Plus
				Less			Unconsolidated
	Full			Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	3,931,706		$	239,010		$	939,772		$	4,632,468
Weighted average rate		6.08	%		5.93	%		5.84	%		6.04	%
Variable:
Variable-rate debt		1,705,091			84,158			301,257			1,922,190
Weighted average rate		6.52	%		7.05	%		6.87	%		6.55	%
Tax-Exempt		701,813			22,681			217,550			896,682
Weighted average rate		3.11	%		2.89	%		2.99	%		3.09	%
Total variable-rate debt		2,406,904			106,839			518,807			2,818,872
Total Nonrecourse Mortgage Debt	$	6,338,610		$	345,849		$	1,458,579		$	7,451,340
Weighted Average Rate		5.87	%		6.01	%		5.63	%		5.81	%
Tax Exempt Nonrecourse Mortgage Debt included in Liabilities – held for sale, due 2045, variable interest rate, 2.70% at January 31, 2008		-			-			-			27,700
Adjusted total Nonrecourse Mortgage Debt	$	6,338,610		$	345,849		$	1,458,579		$	7,479,040

19

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

As discussed on page 2, we present certain financial amounts under the pro-rata consolidation method (a non-GAAP measure). This information is useful to our investors because we believe that it more accurately reflects the manner in which we operate our business. This is because, in line with industry practice, we have a large number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. The tables below present amounts for both full consolidation, a GAAP measure, and pro-rata consolidation, providing a reconciliation of the difference between the two methods. Under the pro-rata consolidation method, we present our partnership investments proportionate to our share of ownership for each line item of our consolidated financial statements. Under full consolidation, partnership assets and liabilities are reported as consolidated at 100% if deemed to be under our control or if we are deemed to be the primary beneficiary for our investments in a VIE. Partnership assets and liabilities are reported on the equity or cost method of accounting if we do not have control, or, in the case of investments in VIEs, we are not deemed the primary beneficiary.

Consolidated Balance Sheet Information – January 31, 2008 (unaudited)

							Plus
	Full			Less			Unconsolidated						Pro-Rata
	Consolidation			Minority			Investments at			Plus Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties	$	7,561,685		$	334,392		$	1,208,040		$	31,328		$	8,466,661
Projects under development		1,499,495			185,806			506,658			-			1,820,347
Land held for development or sale		155,524			7,658			118,335			-			266,201
Total Real Estate		9,216,704			527,856			1,833,033			31,328			10,553,209
Less accumulated depreciation		(1,244,391	)		(73,924	)		(301,604	)		(1,470	)		(1,473,541	)
Real Estate, net		7,972,313			453,932			1,531,429			29,858			9,079,668
Cash and equivalents		254,434			12,466			26,217			-			268,185
Restricted cash		248,262			8,970			182,675			-			421,967
Notes and accounts receivable, net		419,090			19,271			46,091			179			446,089
Investments in and advances to affiliates		495,828			14,844			(188,029	)		-			292,955
Other assets		829,998			23,826			87,777			1,635			895,584
Operating property assets held for sale		31,672			-			-			(31,672	)		-
Total Assets	$	10,251,597		$	533,309		$	1,686,160		$	-		$	11,404,448
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse	$	6,338,610		$	345,849		$	1,458,579		$	27,700		$	7,479,040
Notes payable		143,874			1,101			85,582			-			228,355
Bank revolving credit facility		39,000			-			-			-			39,000
Senior and subordinated debt		886,900			-			-			-			886,900
Accounts payable and accrued expenses		1,015,844			35,659			142,171			798			1,123,154
Deferred income taxes		477,238			-			-			-			477,238
Liabilities of operating property held for sale		28,498			-			-			(28,498	)		-
Total Liabilities		8,929,964			382,609			1,686,332			-			10,233,687
Minority Interest		349,517			150,700			(172	)		-			198,645
Total Shareholders’ Equity		972,116			-			-			-			972,116
Total Liabilities and Shareholders’ Equity	$	10,251,597		$	533,309		$	1,686,160		$	-		$	11,404,448

20

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Balance Sheet Information – January 31, 2007 (unaudited)

							Plus
	Full			Less			Unconsolidated			Pro-Rata
	Consolidation			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 Earnings Information – Three Months Ended January 31, 2008 (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	$	406,043		$	19,717		$	87,410		$	703		$	474,439
Expenses
Operating expenses		240,602			10,374			52,582			170			282,980
Depreciation and amortization		62,642			1,118			11,256			6			72,786
Provision for decline in real estate		3,302			10			8,269			-			11,561
		306,546			11,502			72,107			176			367,327
Interest expense, including early extinguishment of debt		(91,191	)		(473	)		(19,313	)		(275	)		(110,306	)
Amortization of mortgage procurement costs		(2,653	)		(114	)		(614	)		(10	)		(3,163	)
Interest and other income		21,002			800			2,375			191			22,768
Gain on disposition of rental properties and other investments		-			-			12,286			1,046			13,332
Earnings before income taxes		26,655			8,428			10,037			1,479			29,743
Income tax expense
Current		5,605			-			-			43			5,648
Deferred		10,402			-			-			528			10,930
		16,007			-			-			571			16,578
Minority interest		(8,616	)		(8,616	)		-			-			-
Equity in earnings (loss) of unconsolidated entities		9,665			188			(10,037	)		-			(560	)
Earnings from continuing operations		11,697			-			-			908			12,605
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		266			-			-			(266	)		-
Gain on disposition of Lumber Group		642			-			-			(642	)		-
		908			-			-			(908	)		-
Net earnings	$	12,605		$	-		$	-		$	-		$	12,605

22

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information – Year Ended January 31, 2008 (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	$	1,295,620		$	71,040		$	344,638		$	26,304		$	1,595,522
Expenses
Operating expenses		787,654			34,461			224,833			20,055			998,081
Depreciation and amortization		232,584			7,286			44,800			1,947			272,045
Provision for decline in real estate		3,302			10			8,269			-			11,561
		1,023,540			41,757			277,902			22,002			1,281,687
Interest expense, including early extinguishment of debt		(337,842	)		(13,108	)		(72,211	)		(4,542	)		(401,487	)
Amortization of mortgage procurement costs		(11,624	)		(730	)		(2,267	)		(90	)		(13,251	)
Interest and other income		73,368			2,662			11,533			942			83,181
Gain on disposition of rental properties and other investments		603			-			9,358			106,333			116,294
Earnings before income taxes		(3,415	)		18,107			13,149			106,945			98,572
Income tax expense (benefit)
Current		(10,669	)		-			-			25,310			14,641
Deferred		13,733			-			-			16,013			29,746
		3,064			-			-			41,323			44,387
Minority interest		(18,991	)		(18,991	)		-			-			-
Equity in earnings (loss) of unconsolidated entities		12,273			884			(13,149	)		-			(1,760	)
Earnings (loss) from continuing operations		(13,197	)		-			-			65,622			52,425
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		376			-			-			(376	)		-
Gain on disposition of rental properties		64,604			-			-			(64,604	)		-
Gain on disposition of Lumber Group		642			-			-			(642	)		-
		65,622			-			-			(65,622	)		-
Net earnings	$	52,425		$	-		$	-		$	-		$	52,425

23

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	$	348,254		$	20,200		$	145,274		$	14,055		$	487,383
Expenses
Operating expenses		216,889			7,379			94,094			9,840			313,444
Depreciation and amortization		51,783			3,074			8,768			1,001			58,478
		268,672			10,453			102,862			10,841			371,922
Interest expense, including early extinguishment of debt		(79,349	)		(4,595	)		(15,110	)		(5,598	)		(95,462	)
Amortization of mortgage procurement costs		(2,659	)		(161	)		(680	)		(47	)		(3,225	)
Interest and other income		31,671			90			2,501			970			35,052
Gain on disposition of rental properties and other investments		-			-			-			64,641			64,641
Earnings before income taxes		29,245			5,081			29,123			63,180			116,467
Income tax expense (benefit)
Current		3,715			-			-			(5,916	)		(2,201	)
Deferred		21,318			-			-			30,332			51,650
		25,033			-			-			24,416			49,449
Minority interest		(5,081	)		(5,081	)		-			-			-
Equity in earnings of unconsolidated entities		32,731			-			(29,123	)		-			3,608
Earnings from continuing operations		31,862			-			-			38,764			70,626
Discontinued operations, net of tax and minority interest:
Operating (loss) from rental properties		(899	)		-			-			899			-
Gain on disposition of rental properties		39,197			-			-			(39,197	)		-
Gain on disposition of Lumber Group		466			-			-			(466	)		-
		38,764			-			-			(38,764	)		-
Net earnings	$	70,626		$	-		$	-		$	-		$	70,626

24

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	$	1,123,351		$	97,031		$	355,457		$	102,712		$	1,484,489
Expenses
Operating expenses		677,403			45,406			234,796			68,711			935,504
Depreciation and amortization		176,815			13,588			41,953			10,310			215,490
Provision for decline in real estate		1,923			-			400			-			2,323
		856,141			58,994			277,149			79,021			1,153,317
Interest expense, including early extinguishment of debt		(285,507	)		(24,262	)		(55,862	)		(20,229	)		(337,336	)
Amortization of mortgage procurement costs		(10,710	)		(1,062	)		(2,131	)		(370	)		(12,149	)
Interest and other income		61,411			2,763			3,301			1,830			63,779
Gain on disposition of rental properties and other investments		-			-			7,662			233,852			241,514
Earnings before income taxes		32,404			15,476			31,278			238,774			286,980
Income tax expense (benefit)
Current		(10,986	)		-			-			12,929			1,943
Deferred		45,714			-			-			79,336			125,050
		34,728			-			-			92,265			126,993
Minority interest		(15,476	)		(15,476	)		-			-			-
Equity in earnings of unconsolidated entities(1)		48,542			-			(31,278	)		-			17,264
Earnings from continuing operations		30,742			-			-			146,509			177,251
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		3,017			-			-			(3,017	)		-
Gain on disposition of rental properties		143,026			-			-			(143,026	)		-
Gain on disposition of Lumber Group		466			-			-			(466	)		-
		146,509			-			-			(146,509	)		-
Net earnings	$	177,251		$	-		$	-		$	-		$	177,251

(1) 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 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.

25

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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

Investments in and Advances to Affiliates

Included in Investments in and Advances to Affiliates in the Consolidated Balance Sheet Information tables are unconsolidated investments in entities that we do not control and/or are not deemed to be 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,
	2008		2007
	(in thousands)
Members’ and partners’ equity as below	$	741,871	$	592,681
Equity of other members and partners		553,842		496,971
Company’s investment in partnerships	$	188,029	$	95,710
Advances to and on behalf of other affiliates		292,955		238,072
Minority interest in advances to and on behalf of affiliates(1)		14,844		-
Total investments in and advances to affiliate	$	495,828	$	333,782

(1) Primarily represents the minority interest portion of advances to other affiliates included in the fully consolidated presentation. Previously, a portion of these amounts were recorded in pro-rata accounts payable or receivable.

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

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Year Ended January 31,	2008			2007			2008			2007
	(in thousands)
Balance Sheet:
Completed rental properties	$	2,989,525		$	2,697,454		$	1,208,040		$	1,207,591
Projects under development		1,271,998			777,419			506,658			298,665
Land held for development or sale		265,943			160,296			118,335			78,578
Accumulated depreciation		(606,961	)		(554,910	)		(301,604	)		(286,054	)
Restricted cash - Miliatary housing bond funds		1,029,503			771,697			67,235			7,717
Other restricted cash		574,638			660,939			115,440			160,345
Other assets		409,973			526,142			160,085			138,289
Total Assets	$	5,934,619		$	5,039,037		$	1,874,189		$	1,605,131
Mortgage debt, nonrecourse	$	4,486,786		$	3,834,085		$	1,458,579		$	1,308,209
Other liabilities		705,962			612,271			227,753			201,212
Minority interest		-			-			(172	)		-
Members’ and partners’ equity		741,871			592,681			188,029			95,710
Total Liabilities and Members’/Partners’ Equity	$	5,934,619		$	5,039,037		$	1,874,189		$	1,605,131

26

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Investments in and Advances to Affiliates(continued)

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Year Ended January 31,	2008			2007			2008			2007
	(in thousands)
Operations:
Revenues	$	890,156		$	777,418		$	335,798		$	344,773
Equity in earnings of unconsolidated entities on a pro-rata basis		-			-			(1,760	)		17,264
Operating expenses		(588,753	)		(531,728	)		(218,546	)		(226,625	)
Interest expense including early extinguishment of debt		(214,363	)		(143,550	)		(70,664	)		(54,463	)
Provision for decline in real estate(1)		(22,526	)		(900	)		(8,269	)		(300	)
Depreciation and amortization		(133,923	)		(109,258	)		(46,726	)		(43,332	)
Interest income		62,075			23,916			6,398			3,283
Minority interest		-			-			884			-
Income (loss) before gain on disposition of rental properties and discontinued operations		(7,334	)		15,898			(2,885	)		40,600
Discontinued operations:
Gain on disposition of rental properties(2)		31,148			15,325			14,392			7,662
Income from discontinued operations		1,532			663			766			280
Discontinued operations subtotal		32,680			15,988			15,158			7,942
Net earnings (pre-tax)	$	25,346		$	31,886		$	12,273		$	48,542

(1)

Due to the continued deterioration of the condominium market in Los Angeles, California during the fourth quarter of 2007,Mercury, an unconsolidated condominium project, lowered certain estimates regarding future undiscounted cash flows on condominium sales resulting in an impairment charge under SFAS No. 144 of $22,526, of which $8,269 is at our proportionate share. Included in the amount for the year ended January 31, 2007 is an impairment loss for land located in Pittsburgh, Pennsylvania, in which our share was $300.

(2)

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

		(Combined 100%)
		Years Ended January 31,
		2008		2007
		(in thousands)
University Park at MIT Hotel	(Cambridge, MA)	$	26,936	$	-
White Acres (Apartments)	(Richmond Heights, Ohio)		4,212		-
Midtown Plaza (Specialty Retail Center)	(Parma, Ohio)		-		15,325
Total gain on disposition of equity method rental properties		$	31,148	$	15,325
Company’s portion of gain on disposition of equity method rental properties		$	14,392	$	7,662

27

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate and Related Nonrecourse Mortgage Debt – January 31, 2008

			Nonrecourse
			Mortgage
	Total Cost		Debt
	(in thousands)
Full Consolidation
Completed rental properties
Residential	$	1,602,247	$	1,048,164
Commercial
Retail centers		2,963,820		2,289,906
Office and other buildings		2,984,523		2,366,751
Corporate and other equipment		11,095		-
		7,561,685		5,704,821
Projects under development
Residential
Under construction		125,980		73,375
In development		751,485		254,548
Commercial
Retail centers
Under construction		371,508		176,054
In development		35,957		-
Office and other buildings
Under construction		88,507		39,002
In development		126,058		9,279
		1,499,495		552,258
Land held for development or sale		155,524		81,531
Total - Full Consolidation	$	9,216,704	$	6,338,610
Less Minority Interest
Completed rental properties
Residential	$	35,036	$	27,617
Commercial
Retail centers		104,551		110,034
Office and other buildings		194,805		127,689
Corporate and other equipment		-		-
		334,392		265,340
Projects under development
Residential
Under construction		-		-
In development		166,142		65,375
Commercial
Retail centers
Under construction		495		-
In development		89		-
Office and other buildings
Under construction		16,403		9,134
In development		2,677		-
		185,806		74,509
Land held for development or sale		7,658		6,000
Total - Minority Interest	$	527,856	$	345,849

28

`

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate and Related Nonrecourse Mortgage Debt- January 31, 2008 (continued)

			Nonrecourse
			Mortgage
	Total Cost		Debt
	(in thousands)
Plus Unconsolidated Investments at Pro-Rata
Completed rental properties
Residential	$	622,941	$	522,147
Commercial
Retail centers		419,243		431,908
Office and other buildings		165,855		81,525
Corporate and other equipment		1		-
		1,208,040		1,035,580
Projects under development
Residential
Under construction		149,939		194,680
In development		9,583		2,595
Commercial
Retail centers
Under construction		182,364		92,625
In development		40,767		9,552
Office and other buildings
Under construction		658		-
In development		123,347		72,478
		506,658		371,930
Land held for development or sale		118,335		51,069
Total - Unconsolidated Investments at Pro-Rata	$	1,833,033	$	1,458,579
Pro-Rata Consolidation
Completed rental properties
Residential(1)	$	2,221,480	$	1,570,394
Commercial
Retail centers		3,278,512		2,611,780
Office and other buildings		2,955,573		2,320,587
Corporate and other equipment		11,096		-
		8,466,661		6,502,761
Projects under development
Residential
Under construction		275,919		268,055
In development		594,926		191,768
Commercial
Retail centers
Under construction		553,377		268,679
In development		76,635		9,552
Office and other buildings
Under construction		72,762		29,868
In development		246,728		81,757
		1,820,347		849,679
Land held for development or sale		266,201		126,600
Total - Pro-Rata Consolidation	$	10,553,209	$	7,479,040

(1) Amounts include completed rental property of $31,328 and nonrecourse mortgage debt of $27,700 for an operating property held for sale.

29

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, 2008 (unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
							(in thousands)
Assets
Real Estate
Completed rental properties	$	7,550,590		$	334,392		$	1,208,040		$	31,328		$	8,455,566
Projects under development		1,499,495			185,806			506,658			-			1,820,347
Land held for development or sale		52,614			4,921			42,458			-			90,151
Total Real Estate		9,102,699			525,119			1,757,156			31,328			10,366,064
Less accumulated depreciation		(1,239,123	)		(73,924	)		(301,604	)		(1,470	)		(1,468,273	)
Real Estate, net		7,863,576			451,195			1,455,552			29,858			8,897,791
Cash and equivalents		184,130			12,438			21,396			-			193,088
Restricted cash		243,368			8,141			181,752			-			416,979
Notes and accounts receivable, net		392,903			17,032			39,492			179			415,542
Investments in and advances to affiliates		435,738			15,974			(150,584	)		-			269,180
Other assets		768,312			23,804			87,159			1,635			833,302
Operating property assets held for sale		31,672			-			-			(31,672	)		-
Total Assets	$	9,919,699		$	528,584		$	1,634,767		$	-		$	11,025,882
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse	$	6,303,142		$	344,456		$	1,423,791		$	27,700		$	7,410,177
Notes payable		129,808			1,101			83,061			-			211,768
Bank revolving credit facility		39,000			-			-			-			39,000
Senior and subordinated debt		20,400			-			-			-			20,400
Accounts payable and accrued expenses(1)		1,413,534			34,576			128,087			798			1,507,843
Deferred income taxes		566,587			-			-			-			566,587
Operating property liabilities held for sale		28,498			-			-			(28,498	)		-
Total Liabilities		8,500,969			380,133			1,634,939			-			9,755,775
Minority Interest		347,268			148,451			(172	)		-			198,645
Total Shareholders’ Equity		1,071,462			-			-			-			1,071,462
Total Liabilities and Shareholders’ Equity	$	9,919,699		$	528,584		$	1,634,767		$	-		$	11,025,882

(1) Included in the Full Consolidation balance is $614,115 of liabilities payable to Forest City Enterprises, Inc.

30

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Rental Properties Corporation and Subsidiaries
Consolidated Balance Sheet Information – January 31, 2007 (unaudited)

							Plus
	Full			Less			Unconsolidated			Pro-Rata
	Consolidation			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 held 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 Earnings Information – Year Ended January 31, 2008 (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	$	1,254,990		$	68,775		$	332,631		$	26,304		$	1,545,150
Expenses
Operating expenses		713,300			34,357			216,549			20,055			915,547
Depreciation and amortization		229,596			7,286			44,801			1,947			269,058
Provision for decline in real estate		102			10			8,269			-			8,361
		942,998			41,653			269,619			22,002			1,192,966
Interest expense, including early extinguishment of debt		(334,243	)		(12,914	)		(71,535	)		(4,542	)		(397,406	)
Amortization of mortgage procurement costs		(11,245	)		(730	)		(1,999	)		(90	)		(12,604	)
Interest and other income		70,011			2,576			11,375			942			79,752
Gain on disposition of rental properties		-			-			9,358			105,287			114,645
Earnings before income taxes		36,515			16,054			10,211			105,899			136,571
Income tax expense
Current		10,989			-			-			25,310			36,299
Deferred		9,027			-			-			15,609			24,636
		20,016			-			-			40,919			60,935
Minority interest		(16,938	)		(16,938	)		-			-			-
Equity in earnings of unconsolidated entities		11,569			884			(10,211	)		-			474
Earnings from continuing operations		11,130			-			-			64,980			76,110
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		376			-			-			(376	)		-
Gain on disposition of rental properties		64,604			-			-			(64,604	)		-
		64,980			-			-			(64,980	)		-
Net earnings	$	76,110		$	-		$	-		$	-		$	76,110

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	$	1,073,204		$	95,511		$	293,731		$	102,712		$	1,374,136
Expenses
Operating expenses		599,974			44,312			183,702			68,711			808,075
Depreciation and amortization		175,244			13,588			41,942			10,310			213,908
Provision for decline in real estate		1,923			-			400			-			2,323
		777,141			57,900			226,044			79,021			1,024,306
Interest expense, including early extinguishment of debt		(281,802	)		(24,262	)		(55,071	)		(20,229	)		(332,840	)
Amortization of mortgage procurement costs		(10,377	)		(1,061	)		(1,831	)		(370	)		(11,517	)
Interest and other income		59,202			2,754			3,116			1,830			61,394
Gain on disposition of rental properties		-			-			7,662			233,092			240,754
Earnings before income taxes		63,086			15,042			21,563			238,014			307,621
Income tax expense (benefit)
Current		(4,063	)		-			-			12,929			8,866
Deferred		43,763			-			-			79,042			122,805
		39,700			-			-			91,971			131,671
Minority interest		(15,042	)		(15,042	)		-			-			-
Equity in earnings of unconsolidated entities (1)		28,896			-			(21,563	)		-			7,333
Earnings from continuing operations		37,240			-			-			146,043			183,283
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		3,017			-			-			(3,017	)		-
Gain on disposition of rental properties		143,026			-			-			(143,026	)		-
		146,043			-			-			(146,043	)		-
Net earnings	$	183,283		$	-		$	-		$	-		$	183,283

(1) 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 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

The following is a summary of the real estate activity of Forest City Rental Properties Corporation’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,
	2008			2007			2006			2005			2004
	(in thousands)
Forest City Rental Properties Corporation – Real Estate Activity(1)
Real estate – end of year
Completed rental properties	$	8,455,566		$	7,510,737		$	6,319,189		$	5,776,806		$	4,786,035
Projects under development		1,820,347			1,568,088			1,196,663			869,265			541,476
Land held for development or sale		90,151			79,909			50,275			53,007			53,089
Real estate, at cost		10,366,064			9,158,734			7,566,127			6,699,078			5,380,600
Less accumulated depreciation		(1,468,273	)		(1,295,623	)		(1,104,286	)		(975,063	)		(816,395	)
Total real estate	$	8,897,791		$	7,863,111		$	6,461,841		$	5,724,015		$	4,564,205
Real estate activity during the year
Completed rental properties
Capital expenditures	$	108,166		$	87,237		$	66,239		$	127,486		$	38,890
Transferred from projects under development		705,803			547,667			534,820			612,111			377,578
Acquisitions		335,750			314,779			58,667			115,185			374,305
Exchange of cash and Class A Common Units for partner’s interest		-			228,958			-			-			-
Other(7)		8,502			310,275			81,396			337,293			-
Total additions		1,158,221			1,488,916			741,122			1,192,075			790,773
Dispositions		(213,392	)(2)		(297,368	)(3)		(198,739	)(4)		(201,304	)(5)		(86,818	)(6)
Completed rental properties, net additions		944,829			1,191,548			542,383			990,771			703,955
Projects under development
New development		1,119,554			957,227			926,217			885,320			343,496
Transferred to completed rental properties		(705,803	)		(547,667	)		(534,820	)		(612,111	)		(377,578	)
Cost of land sales		(161,492	)		(38,135	)		(63,999	)		-			-
Other		-			-			-			54,580			-
Projects under development, net additions		252,259			371,425			327,398			327,789			(34,082	)
Land held for development or sale, net change		10,242			29,634			(2,732	)		(82	)		1,338
Increase in real estate, at cost	$	1,207,330		$	1,592,607		$	867,049		$	1,318,478		$	671,211

34

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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

							Plus
				Less			Unconsolidated			Plus			Pro-Rata
	Full			Minority			Investments at			Discontinued			Consolidation
Years Ended January 31,	Consolidation			Interest			Pro-Rata			Operations			(Non-GAAP)
							(in thousands)
2008
Real estate - end of year
Completed rental properties	$	7,550,590		$	334,392		$	1,208,040		$	31,328		$	8,455,566
Projects under development		1,499,495			185,806			506,658			-			1,820,347
Land held for development or sale		52,614			4,921			42,458			-			90,151
Real estate, at cost		9,102,699			525,119			1,757,156			31,328			10,366,064
Less accumulated depreciation .		(1,239,123	)		(73,924	)		(301,604	)		(1,470	)		(1,468,273	)
Total real estate	$	7,863,576		$	451,195		$	1,455,552		$	29,858		$	8,897,791
Real estate activity during the year
Completed rental properties
Capital expenditures	$	91,677		$	3,588		$	20,077		$	-		$	108,166
Transferred from projects under development		678,997			11,656			38,462			-			705,803
Acquisitions		334,655			-			1,095			-			335,750
Other(7)		17,652			(27,175	)		(36,325	)		-			8,502
Total additions		1,122,981			(11,931	)		23,309			-			1,158,221
Operating property held for sale		(31,328	)		-			-			31,328			-
Dispositions		(190,534	)		-			(22,858	)		-			(213,392	)(2)
Completed rental properties, net additions		901,119			(11,931	)		451			31,328			944,829
Projects under development
New development		908,349			71,499			282,704			-			1,119,554
Transferred to completed rental properties		(678,997	)		(11,656	)		(38,462	)		-			(705,803	)
Cost of land sales		(125,940	)		(697	)		(36,249	)		-			(161,492	)
Projects under development, net additions		103,412			59,146			207,993			-			252,259
Land held for development or sale, net additions		(5,794	)		(596	)		15,440			-			10,242
Increase (decrease) in real estate, at cost	$	998,737		$	46,619		$	223,884		$	31,328		$	1,207,330
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	)(3)
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 additions		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

35

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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

							Plus
							Unconsolidated			Plus		Pro-Rata
	Full			Less Minority			Investments at			Discontinued		Consolidation
Years Ended January 31,	Consolidation			Interest			Pro-Rata			Operations		(Non-GAAP)
	(in thousands)
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	)(4)
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 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 additions		(2,455	)		(157	)		(434	)		-		(2,732	)
Increase (decrease) in real estate, at cost	$	712,034		$	(14,020	)	$	140,995		$	-	$	867,049
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	)(5)
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	)
Cost of land sales		-			(54,580	)		-			-		54,580
Projects under development, net additions		127,859			(49,606	)		150,324			-		327,789
Land held for development or sale, net additions		3,142			484			(2,740	)		-		(82	)
Increase (decrease) in real estate, at cost	$	1,326,587		$	88,463		$	80,354		$	-	$	1,318,478

36

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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

							Plus
				Less			Unconsolidated			Plus		Pro-Rata
	Full			Minority			Investments at			Discontinued		Consolidation
Years Ended January 31,	Consolidation			Interest			Pro-Rata			Operations		(Non-GAAP)
	(in thousands)
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
Realestate, 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	)  (6)
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 additions		1,362			213			189			-		1,338
Increase (decrease) in real estate, at cost	$	626,283		$	67,609		$	112,537		$	-	$	671,211

(1)	The table includes only the real estate activity for Real Estate Groups owned by Forest City Rental Properties Corporation, a wholly-owned subsidiary of the Company 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 ofLandings of Brentwood, Sterling Glen of Bayshore, Sterling Glen of Center City, Sterling Glen of Darien, Sterling Glen of Forest Hills, Sterling Glen of Plainview, Sterling Glen of Stamford,andUniversity Park at MIT Hotel. Landings of Brentwoodis a 724-unit apartment community in Nashville, Tennessee.Sterling Glen of Bayshoreis an 85-unit supported-living apartment community in Bayshore, New York.Sterling Glen of Center Cityis a 135-unit supported-living apartment community in Philadelphia, Pennsylvania.Sterling Glen of Darienis an 80-unit supported-living apartment community in Darien, Connecticut.Sterling Glen of Forest Hillsis an 83-unit supported-living apartment community in Forest Hills, New York.Sterling Glen of Plainviewis a 79-units supported-living apartment community in Plainview, New York.Sterling Glen of Stamfordis a 166-unit supported-living apartment community in Stamford, Connecticut.University Park at MIT Hotelhas 210 rooms in Cambridge, Massachusetts.
(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 percentages and non cash items.

37

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Results of Operations

Net Earnings —Net earnings for the year ended January 31, 2008 was $52,425,000 versus $177,251,000 for the year ended January 31, 2007. 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 decreases, 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;

• $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;

• $34,458,000 ($51,756,000, pre-tax) related to decreased earnings in 2007 reported in the Land Development Group primarily due to a decrease in land sales atSweetwater Ranch, in Austin, Texas,Stapleton, in Denver, Colorado andBal Grain Edenton, North Carolina;

• $9,256,000 ($15,085,000, pre-tax) related to income recognition on the sale of state and federal Historic Preservation Tax Credits and New Market Tax Credits (collectively, “the Tax Credits”) in 2006 that did not recur at the same level;

• $8,109,000 ($13,215,000, pre-tax) related to decreases in earnings from the Commercial Group outlot land sales in 2007 primarily atSimi Valleyin Simi Valley, California partially offset by the 2007 land sale and related site work construction atRidge Hill Retail, in Yonkers, New York which is accounted for under the percentage of completion method;

• $6,081,000 ($9,910,000, pre-tax) related to increased write-offs of abandoned development projects in 2007 compared to 2006;

• $5,074,000 ($8,269,000, pre-tax) related to an impairment charge under SFAS No. 144. Due to the continued deterioration of the condominium market in Los Angeles, California during the fourth quarter of 2007,Mercury, an unconsolidated condominium project, lowered certain estimates regarding future undiscounted cash flows on condominium sales; and

• $4,809,000 ($7,837,000, pre-tax) related to management’s approved plan to demolish two buildings owned by us adjacent toTen MetroTech Center, an office building located in Brooklyn, New York, to clear the land for a residential project named80 DeKalb Avenue. Due to this new development plan, the estimated useful lives of the two adjacent buildings were adjusted to expire at the scheduled demolition date in April 2007 resulting in accelerated depreciation expense.

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

• $64,605,000 ($105,287,000, pre-tax) related to the 2007 gains on disposition ofLandings of Brentwoodand the following six consolidated supported-living apartment properties:Sterling Glen of Bayshore, in Bayshore, New York,Sterling Glen of Center City, in Philadelphia, Pennsylvania,Sterling Glen of Darien, in Darien, Connecticut,Sterling Glen of Forest Hills, in Forest Hills, New York,Sterling Glen of Plainview, in Plainview, New York andSterling Glen of Stamfordin Stamford, Connecticut;

• $10,940,000 ($17,830,000, pre-tax) related to the 2007 net gain recognized in other income on the sale ofSterling Glen of Roslyn, a consolidated supported-living apartment community under construction in Roslyn, New York;

• $8,831,000 ($14,392,000, pre-tax) related to the 2007 gains on disposition of two equity method properties,University Park at MIT Hotel, located in Cambridge, Massachusetts andWhite Acres, an apartment community located in Richmond Heights, Ohio; and

• $6,685,000 ($10,858,000, pre-tax) primarily related to military housing fee income from the management and development of units in Hawaii and Illinois.

Net earnings for the year ended January 31, 2007 was $177,251,000 versus $83,519,000 for the year ended January 31, 2006. This variance to the prior year is primarily attributable to the following increases, which are net of tax and minority interest:

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

• $143,026,000 ($233,092,000, pre-tax) related to the 2006 gains on disposition of six consolidated properties,Mount Vernon Square,Providence at Palm Harbor,Hilton Times Square,G Street,Embassy Suites HotelandBattery Park City;

• $15,876,000 ($25,873,000, pre-tax) related to income recognition on the sale of the 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.

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;

• $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;

• $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, in Brooklyn, New York, $7,174,000, pre-tax, in outlot land sales for our consolidated properties primarily atVictoria Gardensin Rancho Cucamonga, California,Simi ValleyandWadsworthin Ohio, 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 Village, located in Victorville, California andCharleston Mallin Charleston, West Virginia;

• $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 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 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, 2008 was $171,973,000 compared to $165,328,000 for the three months ended January 31, 2007, a 4.0% increase. NOI for the year ended January 31, 2008 was $619,886,000 compared to $530,916,000 for the year ended January 31, 2007, a 16.8% increase. A reconciliation of NOI to the most comparable GAAP measure, net earnings, is presented on pages 8-9. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 43-54.

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, 2008 was $185,065,000 compared to $174,850,000 for the three months ended January 31, 2007, a 5.8% increase. NOI for the year ended January 31, 2008 was $665,288,000 compared to $570,569,000 for the year ended January 31, 2007, a 16.6% increase. Comparable NOI increased 2.9% for the three months ended January 31, 2008 compared to the prior year. Retail and office comparable NOI increased 6.8% and 2.0% respectively, from the prior year. Hotels decreased 31.5% and our residential portfolio generated an increase of 1.4%. Comparable NOI increased 4.6% for the year ended January 31, 2008 compared to the prior year. Retail, office and hotel comparable NOI increased 6.9%, 2.1% and 4.9% respectively, from the prior year and our residential portfolio has generated an increase of 4.2%. Including the expected NOI for the twelve months following stabilization for the

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

properties that were opened, expanded or acquired through January 31, 2008, less the actual annual NOI of property disposals through January 31, 2008, NOI for Real Estate Groups would be approximately $742,000,000 for the year ended January 31, 2008. This amount includes Commercial Group land sales of $39,500,000 and income recognition on the sale of state and federal historic rehabilitation and new market tax credits of $10,800,000.

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 for real estate depreciation, amortization, amortization of mortgage procurement costs and deferred income taxes; iv) preferred payment classified as minority interest expense on our Consolidated Statement of Earnings; v) provision for decline in real estate (net of tax); vi) extraordinary items (net of tax); and vii) 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, on page 41. 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, 2008 decreased by 6.8% to $265,718,000 from $284,954,000 for the year ended January 31, 2007. This variance to the prior year is primarily attributable to decreased EBDT from the sale of land in our Land Development Group of $34,051,000, decreased EBDT from outlot land sales reported in our Commercial Group of $13,667,000, decreases in Tax Credit income of $15,085,000, and $9,631,000 of increased interest expense reported in corporate activities, primarily related to the Puttable Equity-Linked Senior Notes issued in October 2006. These decreases were partially offset by increased EBDT of $39,451,000 from 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. In addition, EBDT was impacted by increases in our Military Housing business of $6,815,000 and EBDT generated from the sale ofSterling Glen of Roslyn, a consolidated supported-living apartment community under construction in Roslyn, New York of $9,832,000.

Summary of EBDT- The information in the tables on pages 41-54 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.

40

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,
	2008			2007			2008			2007
	(in thousands)						(in thousands)
Net earnings	$	12,605		$	70,626		$	52,425		$	177,251
Depreciation and amortization – Real Estate Groups (5)		65,393			57,938			250,951			206,745
Amortization of mortgage procurement costs – Real Estate Groups (5)		3,143			2,900			13,126			10,998
Deferred income tax expense – Real Estate Groups (6)		11,283			47,102			32,864			120,230
Deferred income tax expense – Non-Real Estate Groups: (6)
Gain on disposition of other investments		404			294			347			294
Current income tax expense on non-operating earnings: (6)
Gain on disposition of other investments		-			-			290			-
Gain on disposition included in discontinued operations		-			(3,369	)		26,834			13,829
Gain on disposition of equity method rental properties		6,458			-			6,458			2,657
Straight-line rent adjustment (3)		(7,263	)		(4,198	)		(16,551	)		(8,757	)
Preference payment (4)		936			898			3,707			898
Preferred return on disposition		-			-			5,034			-
Provision for decline in real estate, net of minority interest		3,292			-			3,292			1,923
Provision for decline in real estate of equity method rental properties		8,269			-			8,269			400
Gain on disposition of equity method rental properties		-			-			(14,392	)		(7,662	)
Gain on disposition of other investments		(12,286	)		-			(603	)		-
Discontinued operations: (1)
Gain on disposition of rental properties		(1,046	)		(64,641	)		(106,333	)		(351,861	)
Minority interest – Gain on disposition		-			-			-			118,009
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) (2)	$	91,188		$	107,550		$	265,718		$	284,954

(1)	Pursuant to the definition of a component of an entity of SFAS No. 144, assuming no significant continuing involvement, all earnings of properties which have been sold or are 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) non-cash charges for real estate depreciation, amortization (including amortization of mortgage procurement costs) and deferred income taxes; iv) preferred payment classified as minority interest expense on the Company’s Consolidated Statement of Earnings; v) provision for decline in real estate (net of tax); vi) extraordinary items (net of tax); and vii) cumulative effect of change in accounting principle (net of tax). See our discussion of EBDT in the news release.
(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 or operating expense from Forest City Rental Properties Corporation, a wholly-owned subsidiary of Forest City Enterprises, Inc., with the applicable offset to either accounts receivable or accounts payable, as appropriate.
(4)	The Forest City Ratner Companies portfolio became a wholly-owned subsidiary of the Company November 8, 2006 upon the issuance of the Class A Common Units in exchange for Bruce C. Ratner’s minority interests. For the first five years only, the Units that have not been exchanged are entitled to their proportionate share of an annual preferred payment of $2,500,000 plus an amount equal to the dividends paid on the same number of shares of the Company’s common stock. After five years, the Units that have not been exchanged are entitled to a payment equal to the dividends paid on an equivalent number of shares of the Company’s common stock. At January 31, 2007, the Company has recorded approximately $3,707,000 related to the annual preferred payment which is classified as minority interest expense on the Company’s consolidated statement of earnings.
(5)	The following table provides detail of depreciation and amortization and amortization of mortgage procurement costs. The Company’s Real Estate Groups are 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,
	2008			2007			2008			2007			2008			2007			2008			2007
Full Consolidation	$	62,642		$	51,783		$	232,584		$	176,815		$	2,653		$	2,659		$	11,624		$	10,710
Non-Real Estate		(3,233	)		(639	)		(10,663	)		(1,571	)		-			(97	)		-			(333	)
Real Estate Groups Full Consolidation		59,409			51,144			221,921			175,244			2,653			2,562			11,624			10,377
Real Estate Groups related to minority interest		(1,118	)		(3,074	)		(7,286	)		(13,588	)		(114	)		(161	)		(730	)		(1,061	)
Real Estate Groups Equity Method		7,096			8,867			34,369			34,779			594			452			2,142			1,312
Real Estate Groups Discontinued Operations		6			1,001			1,947			10,310			10			47			90			370
Real Estate Groups Pro-Rata Consolidation	$	65,393		$	57,938		$	250,951		$	206,745		$	3,143		$	2,900		$	13,126		$	10,998

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

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

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

		Three Months Ended January 31,						Years Ended January 31,
		2008			2007			2008			2007
		(in thousands)						(in thousands)
(A)	Operating earnings
	Current	$	(853	)	$	3,715		$	(17,417	)	$	(13,643	)
	Deferred		16,581			21,318			21,100			46,307
			15,728			25,033			3,683			32,664
(B)	Provision for decline in real estate
	Deferred		(1,272	)		-			(1,272	)		(743	)
	Deferred - equity method investment		(3,195	)		-			(3,195	)		(155	)
			(4,467	)		-			(4,467	)		(898	)
(C)	Gain on disposition of other investments
	Current - Non-Real Estate Groups		-			-			290			-
	Deferred - Non-Real Estate Groups		-			-			(57	)		-
			-			-			233			-
(D)	Gain on disposition of equity method rental properties
	Current		6,458			-			6,458			2,657
	Deferred		(1,712	)		-			(2,843	)		305
			4,746			-			3,615			2,962
	Subtotal (A) (B) (C) (D)
	Current		5,605			3,715			(10,669	)		(10,986	)
	Deferred		10,402			21,318			13,733			45,714
	Income tax expense		16,007			25,033			3,064			34,728
(E)	Discontinued operations - Rental Properties
	Operating earnings
	Current		43			(2,547	)		(1,524	)		(900	)
	Deferred		124			1,985			1,760			2,805
			167			(562	)		236			1,905
	Gain on disposition of rental properties
	Current		-			(3,369	)		26,834			13,829
	Deferred		-			28,053			13,849			76,237
			-			24,684			40,683			90,066
	Deferred gain on disposition of Lumber Group
	Current		-			-			-			-
	Deferred		404			294			404			294
			404			294			404			294
	Subtotal		571			24,416			41,323			92,265
	Grand Total (A) (B) (C) (D) (E)
	Current		5,648			(2,201	)		14,641			1,943
	Deferred		10,930			51,650			29,746			125,050
		$	16,578		$	49,449		$	44,387		$	126,993
	Recap of Grand Total:
	Real Estate Groups
	Current	$	13,598		$	98		$	37,885		$	15,802
	Deferred		11,283			47,102			32,864			120,230
			24,881			47,200			70,749			136,032
	Non-Real Estate Groups
	Current		(7,950	)		(2,299	)		(23,244	)		(13,859	)
	Deferred		(353	)		4,548			(3,118	)		4,820
			(8,303	)		2,249			(26,362	)		(9,039	)
	Grand Total	$	16,578		$	49,449		$	44,387		$	126,993

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2008(in thousands)

	Commercial Group 2007													Residential Group 2007
						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	$	275,644		$	7,199	$	31,776		$	-	$	300,221		$	76,898		$	6,896	$	38,408		$	703		$	109,113
Exclude straight-line rent adjustment		(9,011	)		-		-			-		(9,011	)		(8	)		-		-			-			(8	)
Adjusted revenues		266,633			7,199		31,776			-		291,210			76,890			6,896		38,408			703			109,105
Operating expenses, including non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		156,341			2,741		14,863			-		168,463			51,123			6,058		22,852			170			68,087
Exclude straight-line rent adjustment		(1,755	)		-		-			-		(1,755	)		-			-		-			-			-
Exclude preference payment		(936	)		-		-			-		(936	)		-			-		-			-			-
Adjusted operating expenses		153,650			2,741		14,863			-		165,772			51,123			6,058		22,852			170			68,087
Add interest and other income		12,486			444		1,272			-		13,314			4,225			6		1,041			191			5,451
Add equity in earnings of unconsolidated entities		17,073			32		(16,834	)		-		207			(4,137	)		156		3,930			-			(363	)
Remove gain on disposition of equity method rental properties		(12,286	)		-		12,286			-		-			-			-		-			-			-
Add back provision for decline in real estate of equity method rental properties		-			-		-			-		-			8,269			-		(8,269	)		-			-
Add back equity method depreciation and amortization expense		4,133			-		(4,133	)		-		-			3,460			-		(3,460	)		-			-
Net operating income		134,389			4,934		9,504			-		138,959			37,584			1,000		8,798			724			46,106
Interest expense, including early extinguishment of debt		63,730			12		9,504			-		73,222			14,443			446		8,798			275			23,070
Income tax expense (benefit)		3,506			-		-			-		3,506			(112	)		-		-			43			(69	)
Minority interest in earnings before depreciation and amortization		4,922			4,922		-			-		-			554			554		-			-			-
Add: EBDT from discontinued operations		-			-		-			-		-			406			-		-			(406	)		-
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	62,231		$	-	$	-		$	-	$	62,231		$	23,105		$	-	$	-		$	-		$	23,105
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	62,231		$	-	$	-		$	-	$	62,231		$	23,105		$	-	$	-		$	-		$	23,105
Depreciation and amortization - Real Estate Groups		(46,181	)		-		-			-		(46,181	)		(19,144	)		-		-			(6	)		(19,150	)
Amortization of mortgage procurement costs - Real Estate Groups		(2,189	)		-		-			-		(2,189	)		(750	)		-		-			(10	)		(760	)
Deferred taxes - Real Estate Groups		(14,151	)		-		-			-		(14,151	)		(3,595	)		-		-			(124	)		(3,719	)
Straight-line rent adjustment		7,256			-		-			-		7,256			8			-		-			-			8
Preference payment		(936	)		-		-			-		(936	)		-			-		-			-			-
Gain on disposition of rental properties and other investments, net of tax		-			-		7,540			-		7,540			-			-		-			-			-
Provision for decline in real estate, net of tax and minority interest		-			-		-			-		-			-			-		(5,074	)		-			(5,074	)
Gain on disposition of equity method rental properties, net of tax		7,540			-		(7,540	)		-		-			-			-		-			-			-
Provision for decline in real estate of equity method rental properties, net of tax		-			-		-			-		-			(5,074	)		-		5,074			-			-
Discontinued operations, net of tax and minority interest:
Depreciation and amortization - Real Estate Groups		-			-		-			-		-			(6	)		-		-			6			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-			-		-			(10	)		-		-			10			-
Deferred taxes - Real Estate Groups		-			-		-			-		-			(124	)		-		-			124			-
Deferred gain on disposition of Lumber Group		-			-		-			-		-			-			-		-			-			-
Net earnings (loss)	$	13,570		$	-	$	-		$	-	$	13,570		$	(5,590	)	$	-	$	-		$	-		$	(5,590	)

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, 2008(in thousands)(continued)

	Land Development Group 2007													The Nets 2007
						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	$	53,501		$	5,622	$	7,747		$	-	$	55,626		$	-		$	-	$	9,479		$	-	$	9,479
Exclude straight-line rent adjustment		1			-		-			-		1			-			-		-			-		-
Adjusted revenues		53,502			5,622		7,747			-		55,627			-			-		9,479			-		9,479
Operating expenses, including non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		28,756			1,575		4,482			-		31,663			-			-		14,565			-		14,565
Exclude straight-line rent adjustment		-			-		-			-		-			-			-		-			-		-
Exclude preference payment		-			-		-			-		-			-			-		-			-		-
Adjusted operating expenses		28,756			1,575		4,482			-		31,663			-			-		14,565			-		14,565
Add interest and other income		3,621			350		63			-		3,334			-			-		(1	)		-		(1	)
Add equity in earnings of unconsolidated entities		2,554			-		(2,958	)		-		(404	)		(5,825	)		-		5,825			-		-
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		97			-		(97	)		-		-			-			-		-			-		-
Net operating income		31,018			4,397		273			-		26,894			(5,825	)		-		738			-		(5,087	)
Interest expense, including early extinguishment of debt		(2,332	)		15		273			-		(2,074	)		-			-		738			-		738
Income tax expense (benefit)		7,909			-		-			-		7,909			(3,151	)		-		-			-		(3,151	)
Minority interest in earnings before depreciation and amortization		4,382			4,382		-			-		-			-			-		-			-		-
Add: EBDT from discontinued operations		-			-		-			-		-			-			-		-			-		-
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	21,059		$	-	$	-		$	-	$	21,059		$	(2,674	)	$	-	$	-		$	-	$	(2,674	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	21,059		$	-	$	-		$	-	$	21,059		$	(2,674	)	$	-	$	-		$	-	$	(2,674	)
Depreciation and amortization - Real Estate Groups		(62	)		-		-			-		(62	)		-			-		-			-		-
Amortization of mortgage procurement costs - Real Estate Groups		(194	)		-		-			-		(194	)		-			-		-			-		-
Deferred taxes - Real Estate Groups		(6,616	)		-		-			-		(6,616	)		-			-		-			-		-
Straight-line rent adjustment		(1	)		-		-			-		(1	)		-			-		-			-		-
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		(2,020	)		-		-			-		(2,020	)		-			-		-			-		-
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		-			-		-			-		-			-			-		-			-		-
Deferred gain on disposition of Lumber Group		-			-		-			-		-			-			-		-			-		-
Net earnings (loss)	$	12,166		$	-	$	-		$	-	$	12,166		$	(2,674	)	$	-	$	-		$	-	$	(2,674	)

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, 2008(in thousands)(continued)

	Corporate Activities 2007													Total 2007
						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	$	-		$	-	$	-	$	-		$	-		$	406,043		$	19,717	$	87,410		$	703		$	474,439
Exclude straight-line rent adjustment		-			-		-		-			-			(9,018	)		-		-			-			(9,018	)
Adjusted revenues		-			-		-		-			-			397,025			19,717		87,410			703			465,421
Operating expenses, including non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		7,615			-		-		-			7,615			243,835			10,374		56,762			170			290,393
Exclude straight-line rent adjustment		-			-		-		-			-			(1,755	)		-		-			-			(1,755	)
Exclude preference payment		-			-		-		-			-			(936	)		-		-			-			(936	)
Adjusted operating expenses		7,615			-		-		-			7,615			241,144			10,374		56,762			170			287,702
Add interest and other income		670			-		-		-			670			21,002			800		2,375			191			22,768
Add equity in earnings of unconsolidated entities		-			-		-		-			-			9,665			188		(10,037	)		-			(560	)
Remove gain on disposition of equity method rental properties		-			-		-		-			-			(12,286	)		-		12,286			-			-
Add back provision for decline in real estate of equity method rental properties		-			-		-		-			-			8,269			-		(8,269	)		-			-
Add back equity method depreciation and amortization expense		-			-		-		-			-			7,690			-		(7,690	)		-			-
Net operating income		(6,945	)		-		-		-			(6,945	)		190,221			10,331		19,313			724			199,927
Interest expense, including early extinguishment of debt		15,350			-		-		-			15,350			91,191			473		19,313			275			110,306
Income tax expense (benefit)		(9,762	)		-		-		-			(9,762	)		(1,610	)		-		-			43			(1,567	)
Minority interest in earnings before depreciation and amortization		-			-		-		-			-			9,858			9,858		-			-			-
Add: EBDT from discontinued operations		-			-		-		-			-			406			-		-			(406	)		-
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(12,533	)	$	-	$	-	$	-		$	(12,533	)	$	91,188		$	-	$	-		$	-		$	91,188
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(12,533	)	$	-	$	-	$	-		$	(12,533	)	$	91,188		$	-	$	-		$	-		$	91,188
Depreciation and amortization - Real Estate Groups		-			-		-		-			-			(65,387	)		-		-			(6	)		(65,393	)
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-		-			-			(3,133	)		-		-			(10	)		(3,143	)
Deferred taxes - Real Estate Groups		7,024			-		-		-			7,024			(17,338	)		-		-			(124	)		(17,462	)
Straight-line rent adjustment		-			-		-		-			-			7,263			-		-			-			7,263
Preference payment		-			-		-		-			-			(936	)		-		-			-			(936	)
Gain on disposition of rental properties and other investments, net of tax		-			-		-		642			642			-			-		7,540			642			8,182
Provision for decline in real estate, net of tax and minority interest		-			-		-		-			-			(2,020	)		-		(5,074	)		-			(7,094	)
Gain on disposition of equity method rental properties, net of tax		-			-		-		-			-			7,540			-		(7,540	)		-			-
Provision for decline in real estate of equity method rental properties, net of tax		-			-		-		-			-			(5,074	)		-		5,074			-			-
Discontinued operations, net of tax and minority interest:
Depreciation and amortization - Real Estate Groups		-			-		-		-			-			(6	)		-		-			6			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-		-			-			(10	)		-		-			10			-
Deferred taxes - Real Estate Groups		-			-		-		-			-			(124	)		-		-			124			-
Deferred gain on disposition of Lumber Group		642			-		-		(642	)		-			642			-		-			(642	)		-
Net earnings (loss)	$	(4,867	)	$	-	$	-	$	-		$	(4,867	)	$	12,605		$	-	$	-		$	-		$	12,605

45

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2008(in thousands)

	Commercial Group 2007													Residential Group 2007
						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	$	928,436		$	41,962	$	120,069		$	-	$	1,006,543		$	274,927		$	21,659	$	181,397		$	26,304		$	460,969
Exclude straight-line rent adjustment		(30,144	)		-		-			-		(30,144	)		4,975			-		-			-			4,975
Adjusted revenues		898,292			41,962		120,069			-		976,399			279,902			21,659		181,397			26,304			465,944
Operating expenses, including non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		496,402			12,825		63,241			-		546,818			189,657			18,143		118,090			20,055			309,659
Exclude straight-line rent adjustment		(8,615	)		-		-			-		(8,615	)		-			-		-			-			-
Exclude preference payment		(3,707	)		-		-			-		(3,707	)		-			-		-			-			-
Adjusted operating expenses		484,080			12,825		63,241			-		534,496			189,657			18,143		118,090			20,055			309,659
Add interest and other income		27,607			1,357		3,566			-		29,816			29,795			37		7,693			942			38,393
Add equity in earnings of unconsolidated entities		23,773			4		(23,582	)		-		187			4,133			880		(4,549	)		-			(1,296	)
Remove gain on disposition of equity method rental properties		(12,286	)		-		12,286			-		-			(2,106	)		-		2,106			-			-
Add back provision for decline in real estate of equity method rental properties		-			-		-			-		-			8,269			-		(8,269	)		-			-
Add back equity method depreciation and amortization expense		15,854			-		(15,854	)		-		-			20,390			-		(20,390	)		-			-
Net operating income		469,160			30,498		33,244			-		471,906			150,726			4,433		39,898			7,191			193,382
Interest expense, including early extinguishment of debt		221,311			10,772		33,244			-		243,783			52,336			2,082		34,864			4,542			89,660
Income tax expense (benefit)		10,922			-		-			-		10,922			7,480			-		-			(1,524	)		5,956
Preferred return on disposition		-			-		-			-		-			5,034			-		(5,034	)		-			-
Minority interest in earnings before depreciation and amortization		19,726			19,726		-			-		-			2,351			2,351		-			-			-
Add: EBDT from discontinued operations		-			-		-			-		-			4,173			-		-			(4,173	)		-
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	217,201		$	-	$	-		$	-	$	217,201		$	97,766		$	-	$	-		$	-		$	97,766
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	217,201		$	-	$	-		$	-	$	217,201		$	97,766		$	-	$	-		$	-		$	97,766
Depreciation and amortization - Real Estate Groups		(177,992	)		-		-			-		(177,992	)		(70,766	)		-		-			(1,947	)		(72,713	)
Amortization of mortgage procurement costs - Real Estate Groups		(9,238	)		-		-			-		(9,238	)		(3,152	)		-		-			(90	)		(3,242	)
Deferred taxes - Real Estate Groups		(21,435	)		-		-			-		(21,435	)		(3,498	)		-		-			(1,760	)		(5,258	)
Straight-line rent adjustment		21,529			-		-			-		21,529			(4,975	)		-		-			-			(4,975	)
Preference payment		(3,707	)		-		-			-		(3,707	)		-			-		-			-			-
Preferred return on disposition, net of tax		-			-		-			-		-			(3,089	)		-		-			-			(3,089	)
Gain on disposition of rental properties and other investments, net of tax		-			-		7,540			-		7,540			-			-		1,292			64,604			65,896
Provision for decline in real estate, net of tax and minority interest		-			-		-			-		-			-			-		(5,074	)		-			(5,074	)
Gain on disposition of equity method rental properties, net of tax		7,540			-		(7,540	)		-		-			1,292			-		(1,292	)		-			-
Provision for decline in real estate of equity method rental properties, net of tax		-			-		-			-		-			(5,074	)		-		5,074			-			-
Discontinued operations, net of tax and minority interest:
Depreciation and amortization - Real Estate Groups		-			-		-			-		-			(1,947	)		-		-			1,947			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-			-		-			(90	)		-		-			90			-
Deferred taxes - Real Estate Groups		-			-		-			-		-			(1,760	)		-		-			1,760			-
Gain on disposition of rental properties		-			-		-			-		-			64,604			-		-			(64,604	)		-
Deferred gain on disposition of Lumber Group		-			-		-			-		-			-			-		-			-			-
Net earnings (loss)	$	33,898		$	-	$	-		$	-	$	33,898		$	69,311		$	-	$	-		$	-		$	69,311

46

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2008(in thousands)(continued)

	Land Development Group 2007													The Nets 2007
						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	$	92,257		$	7,419	$	18,220		$	-	$	103,058		$	-		$	-	$	24,952	$	-	$	24,952
Exclude straight-line rent adjustment		3			-		-			-		3			-			-		-		-		-
Adjusted revenues		92,260			7,419		18,220			-		103,061			-			-		24,952		-		24,952
Operating expenses, including non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		68,084			3,493		11,630			-		76,221			-			-		42,428		-		42,428
Exclude straight-line rent adjustment		-			-		-			-		-			-			-		-		-		-
Exclude preference payment		-			-		-			-		-			-			-		-		-		-
Adjusted operating expenses		68,084			3,493		11,630			-		76,221			-			-		42,428		-		42,428
Add interest and other income		13,708			1,268		211			-		12,651			-			-		63		-		63
Add equity in earnings of unconsolidated entities		5,245			-		(5,858	)		-		(613	)		(20,878	)		-		20,840		-		(38	)
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		267			-		(267	)		-		-			-			-		-		-		-
Net operating income		43,396			5,194		676			-		38,878			(20,878	)		-		3,427		-		(17,451	)
Interest expense, including early extinguishment of debt		413			254		676			-		835			-			-		3,427		-		3,427
Income tax expense (benefit)		9,949			-		-			-		9,949			(8,831	)		-		-		-		(8,831	)
Preferred return on disposition		-			-		-			-		-			-			-		-		-		-
Minority interest in earnings before depreciation and amortization		4,940			4,940		-			-		-			-			-		-		-		-
Add: EBDT from discontinued operations		-			-		-			-		-			-			-		-		-		-
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	28,094		$	-	$	-		$	-	$	28,094		$	(12,047	)	$	-	$	-	$	-	$	(12,047	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	28,094		$	-	$	-		$	-	$	28,094		$	(12,047	)	$	-	$	-	$	-	$	(12,047	)
Depreciation and amortization - Real Estate Groups		(246	)		-		-			-		(246	)		-			-		-		-		-
Amortization of mortgage procurement costs - Real Estate Groups		(646	)		-		-			-		(646	)		-			-		-		-		-
Deferred taxes - Real Estate Groups		(8,103	)		-		-			-		(8,103	)		-			-		-		-		-
Straight-line rent adjustment		(3	)		-		-			-		(3	)		-			-		-		-		-
Preference payment		-			-		-			-		-			-			-		-		-		-
Preferred return on disposition, net of tax		-			-		-			-		-			-			-		-		-		-
Gain on disposition of rental properties and other investments, net of tax		-			-		-			-		-			-			-		-		-		-
Provision for decline in real estate, net of tax and minority interest		(2,020	)		-		-			-		(2,020	)		-			-		-		-		-
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		-			-		-			-		-			-			-		-		-		-
Gain on disposition of rental properties		-			-		-			-		-			-			-		-		-		-
Deferred gain on disposition of Lumber Group		-			-		-			-		-			-			-		-		-		-
Net earnings (loss)	$	17,076		$	-	$	-		$	-	$	17,076		$	(12,047	)	$	-	$	-	$	-	$	(12,047	)

47

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2008(in thousands)(continued)

	Corporate Activities 2007													Total 2007
						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	$	-		$	-	$	-	$	-		$	-		$	1,295,620		$	71,040	$	344,638		$	26,304		$	1,595,522
Exclude straight-line rent adjustment		-			-		-		-			-			(25,166	)		-		-			-			(25,166	)
Adjusted revenues		-			-		-		-			-			1,270,454			71,040		344,638			26,304			1,570,356
Operating expenses, including non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		44,174			-		-		-			44,174			798,317			34,461		235,389			20,055			1,019,300
Exclude straight-line rent adjustment		-			-		-		-			-			(8,615	)		-		-			-			(8,615	)
Exclude preference payment		-			-		-		-			-			(3,707	)		-		-			-			(3,707	)
Adjusted operating expenses		44,174			-		-		-			44,174			785,995			34,461		235,389			20,055			1,006,978
Add interest and other income		2,258			-		-		-			2,258			73,368			2,662		11,533			942			83,181
Add equity in earnings of unconsolidated entities		-			-		-		-			-			12,273			884		(13,149	)		-			(1,760	)
Remove gain on disposition of equity method rental properties		-			-		-		-			-			(14,392	)		-		14,392			-			-
Add back provision for decline in real estate of equity method rental properties		-			-		-		-			-			8,269			-		(8,269	)		-			-
Add back equity method depreciation and amortization expense		-			-		-		-			-			36,511			-		(36,511	)		-			-
Net operating income		(41,916	)		-		-		-			(41,916	)		600,488			40,125		77,245			7,191			644,799
Interest expense, including early extinguishment of debt		63,782			-		-		-			63,782			337,842			13,108		72,211			4,542			401,487
Income tax expense (benefit)		(40,402	)		-		-		-			(40,402	)		(20,882	)		-		-			(1,524	)		(22,406	)
Preferred return on disposition		-			-		-		-			-			5,034			-		(5,034	)		-			-
Minority interest in earnings before depreciation and amortization		-			-		-		-			-			27,017			27,017		-			-			-
Add: EBDT from discontinued operations		-			-		-		-			-			4,173			-		-			(4,173	)		-
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(65,296	)	$	-	$	-	$	-		$	(65,296	)	$	265,718		$	-	$	-		$	-		$	265,718
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(65,296	)	$	-	$	-	$	-		$	(65,296	)	$	265,718		$	-	$	-		$	-		$	265,718
Depreciation and amortization - Real Estate Groups		-			-		-		-			-			(249,004	)		-		-			(1,947	)		(250,951	)
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-		-			-			(13,036	)		-		-			(90	)		(13,126	)
Deferred taxes - Real Estate Groups		8,471			-		-		-			8,471			(24,565	)		-		-			(1,760	)		(26,325	)
Straight-line rent adjustment		-			-		-		-			-			16,551			-		-			-			16,551
Preference payment		-			-		-		-			-			(3,707	)		-		-			-			(3,707	)
Preferred return on disposition, net of tax		-			-		-		-			-			(3,089	)		-		-			-			(3,089	)
Gain on disposition of rental properties and other investments, net of tax		370			-		-		642			1,012			370			-		8,832			65,246			74,448
Provision for decline in real estate, net of tax and minority interest		-			-		-		-			-			(2,020	)		-		(5,074	)		-			(7,094	)
Gain on disposition of equity method rental properties, net of tax		-			-		-		-			-			8,832			-		(8,832	)		-			-
Provision for decline in real estate of equity method rental properties, net of tax		-			-		-		-			-			(5,074	)		-		5,074			-			-
Discontinued operations, net of tax and minority interest:
Depreciation and amortization - Real Estate Groups		-			-		-		-			-			(1,947	)		-		-			1,947			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-		-			-			(90	)		-		-			90			-
Deferred taxes - Real Estate Groups		-			-		-		-			-			(1,760	)		-		-			1,760			-
Gain on disposition of rental properties		-			-		-		-			-			64,604			-		-			(64,604	)		-
Deferred gain on disposition of Lumber Group		642			-		-		(642	)		-			642			-		-			(642	)		-
Net earnings (loss)	$	(55,813	)	$	-	$	-	$	-		$	(55,813	)	$	52,425		$	-	$	-		$	-		$	52,425

48

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 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		$	54,227		$	2,246	$	48,782		$	14,373		$	115,136
Exclude straight-line rent adjustment		(7,020	)		-			-			-			(7,020	)		24			-		-			-			24
Adjusted revenues		235,621			13,874			36,189			(318	)		257,618			54,251			2,246		48,782			14,373			115,160
Operating expenses, including non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		135,906			3,815			21,446			173			153,710			37,246			1,094		32,498			9,667			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			37,246			1,094		32,498			9,667			78,317
Add interest and other income		3,582			(579	)		1,813			272			6,246			20,373			10		575			698			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			45,177			1,162		8,517			5,404			57,936
Interest expense, including early extinguishment of debt		47,745			3,655			6,462			(44	)		50,508			16,105			770		8,517			5,642			29,494
Income tax expense (benefit)		(3,414	)		-			-			(70	)		(3,484	)		12,279			-		-			(2,477	)		9,802
Minority interest in earnings before depreciation and amortization		5,825			5,825			-			-			-			392			392		-			-			-
Add: EBDT from discontinued operations		(105	)		-			-			105			-			2,239			-		-			(2,239	)		-
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	)		(17,868	)		-		-			(1,001	)		(18,869	)
Amortization of mortgage procurement costs - Real Estate Groups		(2,129	)		-			-			-			(2,129	)		(724	)		-		-			(47	)		(771	)
Deferred taxes - Real Estate Groups		(14,321	)		-			-			(4	)		(14,325	)		8,402			-		-			(1,981	)		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		-			-			-			-			-			(1,001	)		-		-			1,001			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-			-			-			-			(47	)		-		-			47			-
Deferred taxes - Real Estate Groups		(4	)		-			-			4			-			(1,981	)		-		-			1,981			-
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

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, 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 non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		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 Lumber Group		-			-		-			-		-			-			-		-		-		-
Gain on disposition of rental properties		-			-		-			-		-			-			-		-		-		-
Deferred gain on disposition of Lumber Group		-			-		-			-		-			-			-		-		-		-
Net earnings	$	25,066		$	-	$	-		$	-	$	25,066		$	(2,036	)	$	-	$	-	$	-	$	(2,036	)

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, 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	$	-		$	-	$	-	$	-		$	-		$	348,254		$	20,200	$	145,274		$	14,055		$	487,383
Exclude straight-line rent adjustment		-			-		-		-			-			(6,995	)		-		-			-			(6,995	)
Adjusted revenues		-			-		-		-			-		$	341,259		$	20,200	$	145,274		$	14,055			480,388
Operating expenses, including non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		11,335			-		-		-			11,335			217,625			7,379		94,223			9,840			314,309
Exclude straight-line rent adjustment		-			-		-		-			-			(2,797	)		-		-			-			(2,797	)
Exclude preference payment		-			-		-		-			-			(898	)		-		-			-			(898	)
Adjusted operating expenses		11,335			-		-		-			11,335			213,930			7,379		94,223			9,840			310,614
Add interest and other income		898			-		-		-			898			31,671			90		2,501			970			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	)		201,050			12,911		15,110			5,185			208,434
Interest expense, including early extinguishment of debt		13,131			-		-		-			13,131			79,349			4,595		15,110			5,598			95,462
Income tax expense (benefit)		(7,786	)		-		-		-			(7,786	)		7,969			-		-			(2,547	)		5,422
Minority interest in earnings before depreciation and amortization		-			-		-		-			-			8,316			8,316		-			-			-
Add: EBDT from discontinued operations		-			-		-		-			-			2,134			-		-			(2,134	)		-
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		-			-		-		-			-			(56,937	)		-		-			(1,001	)		(57,938	)
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-		-			-			(2,853	)		-		-			(47	)		(2,900	)
Deferred taxes - Real Estate Groups		580			-		-		-			580			(17,064	)		-		-			(1,985	)		(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		-			-		-		-			-			(1,001	)		-		-			1,001			-
Amortization of mortgage procurement costs - Real Estate Groups		-			-		-		-			-			(47	)		-		-			47			-
Deferred taxes - Real Estate Groups		-			-		-		-			-			(1,985	)		-		-			1,985			-
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

51

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		$	194,806		$	8,512	$	143,042		$	60,832		$	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			194,818			8,512		143,042			60,832			390,180
Operating expenses, including non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		428,132			35,829		64,952			30,943			488,198			132,556			4,708		86,731			37,768			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			132,556			4,708		86,731			37,768			252,347
Add interest and other income		8,019			993		1,825			878			9,729			33,337			34		1,249			952			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			119,370			3,838		32,071			24,016			171,619
Interest expense, including early extinguishment of debt		179,164			20,795		20,189			5,296			183,854			49,382			2,816		32,071			14,933			93,570
Income tax expense (benefit)		2,708			-		-			152			2,860			3,716			-		-			(1,052	)		2,664
Minority interest in earnings before depreciation and amortization		24,699			24,699		-			-			-			1,022			1,022		-			-			-
Add: EBDT from discontinued operations		7,261			-		-			(7,261	)		-			10,135			-		-			(10,135	)		-
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	)		(65,093	)		-		-			(6,813	)		(71,906	)
Amortization of mortgage procurement costs - Real Estate Groups		(7,904	)		-		-			(125	)		(8,029	)		(2,724	)		-		-			(245	)		(2,969	)
Deferred taxes - Real Estate Groups		(31,796	)		-		-			(970	)		(32,766	)		3,123			-		-			(1,835	)		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			-			(6,813	)		-		-			6,813			-
Amortization of mortgage procurement costs - Real Estate Groups		(125	)		-		-			125			-			(245	)		-		-			245			-
Deferred taxes - Real Estate Groups		(970	)		-		-			970			-			(1,835	)		-		-			1,835			-
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

52

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 non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		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	)

53

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	$	-		$	-	$	-	$	-		$	-		$	1,123,351		$	97,031	$	355,457		$	102,712		$	1,484,489
Exclude straight-line rent adjustment		-			-		-		-			-			(15,950	)		-		-			(44	)		(15,994	)
Adjusted revenues		-			-		-		-			-			1,107,401			97,031		355,457			102,668			1,468,495
Operating expenses, including non-Real Estate depreciation and amortization, and amortization of mortgage procurement costs		43,073			-		-		-			43,073			679,307			45,407		242,789			68,711			945,400
Exclude straight-line rent adjustment		-			-		-		-			-			(6,299	)		-		-			(938	)		(7,237	)
Exclude preference payment		-			-		-		-			-			(898	)		-		-			-			(898	)
Adjusted operating expenses		43,073			-		-		-			43,073			672,110			45,407		242,789			67,773			937,265
Add interest and other income		1,876			-		-		-			1,876			61,411			2,763		3,301			1,830			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	)		574,073			54,387		55,862			36,725			612,273
Interest expense, including early extinguishment of debt		48,086			-		-		-			48,086			285,507			24,262		55,862			20,229			337,336
Income tax expense (benefit)		(34,812	)		-		-		-			(34,812	)		(9,117	)		-		-			(900	)		(10,017	)
Minority interest in earnings before depreciation and amortization		-			-		-		-			-			30,125			30,125		-			-			-
Add: EBDT from discontinued operations		-			-		-		-			-			17,396			-		-			(17,396	)		-
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		-			-		-		-			-			(196,435	)		-		-			(10,310	)		(206,745	)
Amortization of mortgage procurement costs — Real Estate Groups		-			-		-		-			-			(10,628	)		-		-			(370	)		(10,998	)
Deferred taxes — Real Estate Groups		(2,660	)		-		-		-			(2,660	)		(41,781	)		-		-			(2,805	)		(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		-			-		-		-			-			(10,310	)		-		-			10,310			-
Amortization of mortgage procurement costs — Real Estate Groups		-			-		-		-			-			(370	)		-		-			370			-
Deferred taxes — Real Estate Groups		-			-		-		-			-			(2,805	)		-		-			2,805			-
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

54

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

COMMERCIAL GROUP			Date of											Leasable
OFFICE BUILDINGS			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		100.00	%		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
	+	Colorado Studios	2007		90.00	%		90.00	%	Denver, CO	Colorado Studios		75,000		68,000
	+	Commerce Court	2007		70.00	%		100.00	%	Pittsburg, PA	US Bank; Wesco Distributors		377,000		377,000
		Edgeworth Building	2006		100.00	%		100.00	%	Richmond, VA	Heushler Flieshler		137,000		137,000
		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		650,000		618,000
		Halle Building	1986		75.00	%		100.00	%	Cleveland, OH	Case Western Reserve University; 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
		Higbee Building	1990		100.00	%		100.00	%	Cleveland, OH	Greater Cleveland Partnership		872,000		872,000
		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.		132,000		132,000
	+	- Building Q	2007		100.00	%		100.00	%	Skokie, IL	Leasing in progress		158,000		158,000
		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		278,000		213,000
		Knight Ridder Building at Fairmont Plaza	1998		85.00	%		85.00	%	San Jose, CA	Littler Mendelson; Merrill Lynch; Calpine; UBS Financial; Camera 12 Cinemas		404,000		343,000
		M. K. Ferguson Plaza	1990		1.00	%		90.00	%	Cleveland, OH	Washington Group; Chase Manhattan Mortgage Corp; Educational Loan Servicing Corp; Quicken Loans		476,000		428,000
	+	New York Times	2007		70.00	%		100.00	%	Manhattan, NY	ClearBridge Advisors, LLC, a Legg Mason Company; Covington & Burling; Osler Hoskin		737,000		737,000
		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		929,000		766,000
		One Pierrepont Plaza	1988		98.77	%		100.00	%	Brooklyn, NY	Morgan Stanley; Goldman Sachs		656,000		656,000
		Resurrection Health Care	2006		100.00	%		100.00	%	Skokie, IL	Leasing in progress		40,000		40,000
		Richards Building	1990		100.00	%		100.00	%	Cambridge, MA	Genzyme Biosurgery; Alkermes, Inc.		126,000		126,000

55

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

COMMERCIAL GROUP			Date of											Leasable
OFFICE BUILDINGS (continued)			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)
	+	Richmond Office Park	2007		100.00	%		100.00	%	Richmond, VA	Anthem Blue Cross Blue Shield; The Brinks Co.; Wachovia Bank		570,000		570,000
		Skylight Office Tower	1991		92.50	%		100.00	%	Cleveland, OH	Cap Gemini; 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.		577,000		577,000
		Twelve MetroTech Center	2004		80.00	%		80.00	%	Brooklyn, NY	National Union Fire Insurance Co.		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											11,859,000		11,237,000
Unconsolidated Office Buildings
		350 Massachusetts Ave	1998		50.00	%		50.00	%	Cambridge, MA	Star Market; Tofias		169,000		85,000
		818 Mission Street	2008		50.00	%		50.00	%	San Francisco, CA	Leasing in progress		34,000		17,000
		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		78,000		39,000
		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
	*	Mesa Del Sol Town Center	2008		47.50	%		47.50	%	Albuquerque, NM	Lumidigm		74,000		35,000
		One International Place	2000		50.00	%		50.00	%	Cleveland, OH	Fort Dearborn Life Ins.; Transportation Security Administration; Battelle Memorial		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											1,592,000		813,000
		Total Office Buildings at January 31, 2008											13,451,000		12,050,000
		Total Office Buildings at January 31, 2007											11,468,000		9,495,000

56

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Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

COMMERCIAL GROUP
RETAIL CENTERS

				Date of											Total				Gross
				Opening/									Total		Square		Gross		Leasable
				Acquisition/	Legal			Pro-Rata					Square		Feet at Pro-		Leasable		Area at Pro
Name				Expansion	Ownership(1)			Ownership(2)			Location	Major Tenants	Feet		Rata %		Area		Rata %
Consolidated Regional Malls
			Antelope Valley Mall	1990/1999		78.00	%		78.00	%	Palmdale, CA	Sears; JCPenney; Harris Gottschalks; Mervyn’s; Dillard’s		995,000		776,000		361,000		282,000
			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
			Galleria at Sunset	1996/2002		100.00	%		100.00	%	Henderson, NV	Dillard's; Macy's; Mervyn's; JCPenney; Dick's Sporting Goods		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	Kohl’s; 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	%		100.00	%	Denver, CO	Bass Pro; Target; Foley's; Harkins Theatre; JCPenney		1,106,000		1,106,000		476,000		476,000
	*		Orchard Town Center	2008		100.00	%		100.00	%	Westminster, CO	JCPenney; Macy's; Target		983,000		983,000		569,000		569,000
	+		Promenade Bolingbrook	2007		100.00	%		100.00	%	Bolingbrook, IL	Bass Pro; Macy's		750,000		750,000		430,000		430,000
	*	*	Promenade in Temecula	1999/2002/2009		75.00	%		75.00	%	Temecula, CA	JCPenney; Sears; Macy's; Edwards Cinema		1,140,000		855,000		552,000		414,000
	^	*	Ridge Hill Retail	2009/2010		70.00	%		100.00	%	Yonkers, NY	Leasing in progress		1,200,000		1,200,000		1,200,000		1,200,000
	(4)	*	Shops at Wiregrass	2008		50.00	%		100.00	%	Tampa, FL	JCPenney		646,000		646,000		356,000		356,000
			Short Pump Town Center	2003/2005		50.00	%		100.00	%	Richmond, VA	Nordstrom; Macy's; Dillard's; Dick's Sporting Goods		1,193,000		1,193,000		502,000		502,000
			Simi Valley Town Center	2005		85.00	%		100.00	%	Simi Valley, CA	Macy's		612,000		612,000		351,000		351,000
			South Bay Galleria	1985/2001		100.00	%		100.00	%	Redondo Beach, CA	Macy's; Mervyn's; Nordstrom; AMC Theater		955,000		955,000		387,000		387,000
			Victoria Gardens	2004		80.00	%		80.00	%	Rancho Cucamonga, CA	Macy’s; JCPenney; AMC Theater		1,162,000		930,000		650,000		520,000
			Consolidated Regional Malls Subtotal											14,411,000		13,675,000		7,189,000		6,842,000

57

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		Gross		Leasable
		Acquisition/		Legal			Pro-Rata					Square		Feet at Pro-		Leasable		Area at Pro-
Name		Expansion		Ownership(1)			Ownership(2)			Location	Major Tenants	Feet		Rata %		Area		Rata %
Consolidated Specialty Retail Centers
	42nd Street		1999		100.00	%		100.00	%	Manhattan, NY	AMC Theaters; Madame Tussaud’s Wax Museum; Modell’s; Dave & Buster’s		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		392,000		392,000
	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; 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	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
	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	Bank of America		78,000		78,000		78,000		78,000

58

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		Gross		Leasable
		Acquisition/		Legal			Pro-Rata					Square		Feet at Pro-		Leasable		Area at Pro-
Name		Expansion		Ownership(1)			Ownership(2)			Location	Major Tenants	Feet		Rata %		Area		Rata %
Consolidated Specialty Retail Centers (continued)
	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
+	Victoria Gardens — Bass Pro		2007		80.00	%		80.00	%	Rancho Cucomonga, CA	Bass Pro		180,000		144,000		180,000		144,000
*	White Oak Village		2008		50.00	%		100.00	%	Richmond, VA	Circuit City’s Target; Lowes; Sam’s Club; JCPenny		792,000		792,000		286,000		286,000
	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												6,650,000		6,422,000		5,207,000		5,031,000
	Consolidated Retail Centers Total												21,061,000		20,097,000		12,396,000		11,873,000
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		788,000		394,000
*	Village at Gulfstream		2009		50.00	%		50.00	%	Hallendale, FL	Leasing in progress		455,000		228,000		455,000		228,000
	Unconsolidated Regional Malls Subtotal												3,722,000		1,862,000		1,935,000		969,000
Unconsolidated Specialty Retail Centers
*	East River Plaza		2009		35.00	%		50.00	%	Manhattan, NY	Home Depot; Target; Best Buy		517,000		259,000		517,000		259,000
	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	T.J. Maxx; Marshall’s; CompUSA; IKEA; Value City; JoAnn Fabrics		507,000		254,000		507,000		254,000
	Unconsolidated Specialty Retail Centers Subtotal												2,147,000		1,075,000		1,972,000		987,000
	Unconsolidated Retail Centers Total												5,869,000		2,937,000		3,907,000		1,956,000
	Total Retail Centers at January 31, 2008												26,930,000		23,034,000		16,303,000		13,829,000
	Total Retail Centers at January 31, 2007												24,252,000		20,672,000		14,402,000		12,151,000

59

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 at
Name	Expansion		Ownership (1)			Ownership (2)			Location	Rooms		Pro-Rata %
Consolidated Hotels
Charleston Marriott		1983		95.00	%		100.00	%	Charleston, WV		352		352
Ritz-Carlton, Cleveland		1990		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
Westin Convention Center		1986		50.00	%		50.00	%	Pittsburgh, PA		616		308
Unconsolidated Hotels Subtotal											866		318
Total Hotel Rooms at January 31, 2008											1,823		1,275
Total Hotel Rooms at January 31, 2007											2,033		1,380

60

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
	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
+	Cameron Kinney		2007		100.00	%		100.00	%	Richmond, VA		259		259
	Consolidated-Carolina		2003		89.99	%		100.00	%	Richmond, VA		158		158
	Coraopolis Towers		2002		80.00	%		80.00	%	Coraopolis, PA		200		160
	Crescent Flats (East 29th Avenue Town Center)		2004		90.00	%		90.00	%	Denver, CO		66		59
	Cutter’s Ridge at Tobacco Row		2006		100.00	%		100.00	%	Richmond, VA		12		12
^ *	Dallas Mercantile		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		283		269
	Easthaven at the Village (formerly Village Green)		1994-1995		100.00	%		100.00	%	Beachwood, OH		360		360
	Emerald Palms		1996/2004		100.00	%		100.00	%	Miami, FL		505		505
	Grand		1999		85.50	%		85.50	%	North Bethesda, MD		549		469
	Grand Lowry Lofts		2000		100.00	%		100.00	%	Denver, CO		261		261
	Grove		2003		100.00	%		100.00	%	Ontario, CA		101		101
*	Haverhill		2009		100.00	%		100.00	%	Haverhill, MA		305		305
	Heritage		2002		100.00	%		100.00	%	San Diego, CA		230		230
	Independence Place II		2003		100.00	%		100.00	%	Parma Hts., 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	%	Pontiac, MI		200		188
	Lenox Club		1991		95.00	%		95.00	%	Arlington, VA		385		366

61

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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)
	Lenox Park		1992		95.00	%		95.00	%	Silver Spring, MD		406		386
	Lofts at 23 Sidney		2005		100.00	%		100.00	%	Cambridge, MA		51		51
	Lofts at 1835 Arch		2001		1.99	%		95.05	%	Philadelphia, PA		191		182
*	Lucky Strike		2008		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
	Midtown Towers		1969		100.00	%		100.00	%	Parma, OH		635		635
	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
	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		100.00	%		100.00	%	Corona, NY		296		296
	Sky55		2006		100.00	%		100.00	%	Chicago, IL		411		411
	Southfield		2002		100.00	%		100.00	%	Nottingham, MD		212		212
+	Wilson Building		2007		100.00	%		100.00	%	Dallas, TX		143		143
	Consolidated Apartment Communities Subtotal											12,303		11,997
Consolidated Supported Living Apartments
	Forest Trace		2000		100.00	%		100.00	%	Lauderhill, FL		322		322
	Sterling Glen of Glen Cove		2000		100.00	%		100.00	%	Glen Cove, NY		80		80
	Sterling Glen of Great Neck		2000		100.00	%		100.00	%	Great Neck, NY		142		142
	Sterling Glen of Lynbrook		2005		100.00	%		100.00	%	Lynbrook, NY		130		130
	Sterling Glen of Rye Brook		2004		100.00	%		100.00	%	Rye Brook, NY		168		168
	Consolidated Supported Living Apartments Subtotal											842		842
	Consolidated Apartments Total											13,145		12,839

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 %
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 Hts., 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 Apartments		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

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/											Leasable
		Acquisition/		Legal			Pro-Rata				Leasable		Units at Pro-
Name		Expansion		Ownership (1)			Ownership (2)			Location	Units		Rata %
Unconsolidated Apartment Communities (continued)
	Liberty Hills		1979-1986		50.00	%		50.00	%	Solon, OH		396		198
	Met Lofts		2005		50.00	%		50.00	%	Los Angeles, CA		264		132
(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
	Newport Landing		2002-2005		50.00	%		50.00	%	Coventry, OH		336		168
	Noble Towers		1979		50.00	%		50.00	%	Pittsburgh, PA		133		67
	North Port Village		1981		27.00	%		27.00	%	Port Huron, MI		251		68
	Nu Ken Tower (Citizen’s Plaza)		1981		8.84	%		50.00	%	New Kensington, PA		101		51
(3)	Oceanpointe Towers		1980		1.99	%		100.00	%	Long Branch, NJ		151		151
(3)	Panorama Towers		1978		99.00	%		99.00	%	Panorama City, 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

64

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

RESIDENTIAL GROUP
APARTMENTS (continued)

		Date of
		Opening/											Leasable
		Acquisition/		Legal			Pro-Rata				Leasable		Units at Pro-
Name		Expansion		Ownership (1)			Ownership (2)			Location	Units		Rata %
Unconsolidated Apartment Communities (continued)
(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 Apartments		2008		50.00	%		50.00	%	Oakland, CA		665		333
	Village Center		1983		6.23	%		6.23	%	Detroit, MI		254		16
(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											19,872		11,118
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
	Unconsolidated Supported-Living Apartments Subtotal											869		435

65

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

RESIDENTIAL GROUP
APARTMENTS (continued)

		Date of
		Opening/										Leasable
		Acquisition/	Legal			Pro-Rata				Leasable		Units at Pro-
Name		Expansion	Ownership (1)			Ownership (2)			Location	Units		Rata %
Unconsolidated Military Housing
^ *	Air Force Academy	2007-2009		50.00	%		50.00	%	Colorado Springs, CO		427		214
*	Hawaii Phase IV	2007-2014		10.00	%		10.00	%	Kaneohe, HI		917		92
^ *	Midwest Millington	2008-2009		25.00	%		25.00	%	Memphis, TN		318		80
^ *	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
^ *	Navy Midwest	2006-2009		25.00	%		25.00	%	Chicago, IL		1,658		415
^ *	Ohana Military Communities, Hawaii Increment I	2005-2008		10.00	%		10.00	%	Honolulu, HI		1,952		195
*	Pacific Northwest Communities	2007-2010		20.00	%		20.00	%	Seattle, WA		2,986		597
	Unconsolidated Military Housing Subtotal										11,952		1,963
	Unconsolidated Apartments Total										32,693		13,516
	Combined Apartments Total										45,838		26,355
	Federally Subsidized Housing (Total of 8 Buildings)										1,260
	Total Apartment Units at January 31, 2008										47,098
	Total Apartment Units at January 31, 2007										43,252

66

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Forest City Enterprises, Inc. Portfolio of Real Estate

RESIDENTIAL GROUP
CONDOMINIUMS

		Date of
		Opening/														Units Sold
		Acquisition/	Legal			Pro-Rata						Total Units at		Units Sold as		as of 1/31/08 at
Name		Expansion	Ownership (1)			Ownership (2)			Location	Total Units		Pro-Rata %		of 1/31/08		Pro-Rata %
Unconsolidated For Sale Condominiums
	1100 Wilshire	2006-2007		40.00	%		40.00	%	Los Angeles, CA		228		91		164		66
+	Mercury	2007-2008		50.00	%		50.00	%	Los Angeles, CA		240		120		76		38
^*	Central Station	1995-2009		25.00	%		25.00	%	Chicago, IL		4,549		1,137		3,475		869
	Unconsolidated For Sale Condominiums Total										5,017		1,348		3,715		973
Total For Sale Condominiums at January 31, 2008											5,017

*	Property under construction as of January 31, 2008.
**	Expansion of property under construction as of January 31, 2008.
+	Property opened or acquired in 2007.
++	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 US 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.
(4)	As of January 31, 2008, Shops at Wiregrass was funded 50% by Forest City. Since this date, Forest City has entered into an agreement to pay back the original partner’s contributions and will fund 100% going forward.

67