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

Exhibit 99.1

Forest City Enterprises, Inc.

Supplemental Package

Years Ended January 31, 2012 and 2011

Forest City Enterprises, Inc. and Subsidiaries

Years Ended January 31, 2012 and 2011

Supplemental Package

NYSE: FCEA, FCEB

Index

Corporate Overview	2-3
Selected Financial Information
Forest City Enterprises, Inc.
Consolidated Balance Sheet Information	4-7
Consolidated Earnings Information	8-11
Net Asset Value Components	12-13
Supplemental Operating Information
Occupancy Data	14
Retail Sales Data	15
Leasing Summary	16
Comparable Net Operating Income (NOI)	17
Comparable NOI Detail	18-19
NOI By Product Type	20
NOI By Core Market	21
Reconciliation of NOI to Net Earnings (Loss)	22-23
Results of Operations Discussion	24-27
EBDT Bridge	28-29
Reconciliation of Net Earnings (Loss) to EBDT	30-31
Schedules of Lease Expirations	32-33
Schedules of Significant Tenants	34-35
Development Pipeline	36-42
Supplemental Financial Information
Common Stock Data/Covenants	43
Projects under Construction and Development Debt and Nonrecourse Debt	44
Scheduled Maturities Table	45-46
Investments in and Advances to Affiliates	47-49
Forest City Rental Properties Corporation
Consolidated Balance Sheet Information	50
Consolidated Earnings Information	51
Summary of EBDT	52-63
Property Listing	64-75

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, 2011, as such risk factors shall be updated in our Form 10-K for the year ended January 31, 2012 and other factors that might cause differences, some of which could be material, include, but are not limited to, the impact of current lending and capital market conditions on our liquidity, ability to finance or refinance projects and repay our debt, the impact of the current economic environment on the ownership, development and management of our real estate portfolio, general real estate investment and development risks, vacancies in our properties, the strategic decision to reposition or divest portions of our land business, further downturns in the housing market, competition, illiquidity of real estate investments, bankruptcy or defaults of tenants, anchor store consolidations or closings, international activities, the impact of terrorist acts, risks associated with an investment in a professional sports team, our substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by our credit facility and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, the impact of credit rating downgrades, effects of uninsured or underinsured losses, effects of a downgrade or failure of our insurance carriers, environmental liabilities, conflicts of interest, risks associated with the sale of tax credits, risks associated with developing and managing properties in partnership with others, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, volatility in the market price of our publicly traded securities, inflation risks, litigation risks, cybersecurity risks and cyber incidents as well as other risks listed from time to time in our reports filed with the Securities and Exchange Commission. We have no obligation to revise or update any forward-looking statements, other than imposed by law, as a result of future events or new information. Readers are cautioned not to place undue reliance on such forward-looking statements.

1

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial and Operating Information

Corporate Overview

We principally engage in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. We operate through three strategic business units and five reportable segments. TheCommercial Group, our largest strategic business unit, owns, develops, acquires and operates regional malls, specialty/urban retail centers, office and life science buildings, hotels and mixed-use projects. TheResidential Group owns, 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. The Land Development Group acquires and sells both land and developed lots to residential, commercial and industrial customers. It also owns and develops land into master-planned communities and mixed-use projects. As of January 31, 2012, our Board of Directors approved a strategic decision by senior management to reposition or divest significant portions of our Land Development Group and are actively reviewing alternatives to do so.Real Estate Groups are the combined Commercial, Residential and Land Development Groups.Corporate Activities and theNets, a member of the National Basketball Association (“NBA”) in which we account for our investment on the equity method of accounting, are other reportable segments of the Company.

We have approximately $10.5 billion of assets in 28 states and the District of Columbia at January 31, 2012. Our core markets include Boston, Chicago, Dallas, Denver, Los Angeles, New York, Philadelphia, the Greater San Francisco metropolitan area and the Greater Washington D.C. metropolitan area. Our core markets account for approximately 77 percent of the cost of our real estate portfolio at January 31, 2012. We have offices in Albuquerque, Boston, Chicago, Dallas, 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, 2012 expected to be filed with the Securities and Exchange Commission (“SEC”) on April 2, 2012. 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.

Revision of Prior Period Financial Statements

Historically, we have recorded an allowance for projects under development (the “Allowance”) that have not been abandoned at each balance sheet date. During the three months ended January 31, 2012, we determined that the recording of the Allowance was not in accordance with ASC 970-360-40. The impact of this error (the “Allowance Revision”) was an understatement of operating expenses of $1,000,000 ($612,000 after tax) for the year ended January 31, 2011, and a $13,949,000 understatement of retained earnings as of January 31, 2010. We assessed the materiality of this error on prior periods’ financial statements in accordance with ASC 250-10 (SEC’s Staff Accounting Bulletin No. 99, Materiality), and concluded that the error was not material to any prior annual or interim periods but would be material if the entire correction was recorded during the year ended January 31, 2012. Accordingly, the financial statements as of January 31, 2011 and the year then ended presented herein have been revised to correct for the error.

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 unconsolidated properties in this supplemental package.

EBDT

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

2

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial and Operating Information

Supplemental Operating Information

The operating information contained in this document includes: occupancy data, retail sales data, leasing summaries, comparable NOI, NOI by product type and core market, reconciliation of NOI to net earnings, results of operations discussion, EBDT bridge, reconciliation of net earnings to EBDT, retail and office lease expirations, significant retail and office tenants, and our development pipeline. We believe this information will give interested parties a better understanding and more information about our operating performance. The term “comparable,” which is used throughout this document, is generally defined as including properties that were open and operated in both the years ended January 31, 2012 and 2011.

We believe occupancy rates, retail and office lease expirations, base rent, significant retail and office tenant listings, mall sales per square foot, and leasing spreads 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, is used to assess operating performance and resource allocation of our strategic business units. While property dispositions, acquisitions or other factors can impact net earnings in the short term, we believe comparable NOI gives a more consistent view of our overall performance from quarter-to-quarter and year-to-year. A reconciliation of NOI to net earnings, the most comparable financial measure calculated in accordance with GAAP, a reconciliation of NOI to net earnings for each strategic business unit and a reconciliation from NOI to comparable NOI are included in this supplemental package.

Corporate Headquarters

Forest City Enterprises, Inc.

Terminal Tower

50 Public Square, Suite 1100

Cleveland, Ohio 44113

Annual Report on Form 10-K

A copy of the Annual Report on Form 10-K as filed with the Securities and Exchange Commission for the fiscal year ended January 31, 2012 is expected to be filed with the SEC on April 2, 2012 and, at the time, can be found on our website under SEC Filings or may be obtained without charge upon written request to:

Jeffrey B. Linton

Senior Vice President, Corporate Communication

jefflinton@forestcity.net

Website

www.forestcity.net

The information contained on this website is not incorporated herein by reference and does not constitute a part of this supplemental package.

Investor Relations

Robert G. O’Brien

Executive Vice President and Chief Financial Officer

Transfer Agent and Registrar

Wells Fargo

Shareowner Services

P.O. Box 64854

St. Paul, MN 55164-9440

(800) 468-9716

www.shareowneronline.com

Stock Exchange Listing

NYSE: FCEA and FCEB

Dividend Reinvestment and Stock Purchase Plan

We offer our shareholders the opportunity to purchase additional shares of common stock through the Forest City Enterprises, Inc. Dividend Reinvestment and Stock Purchase Plan (the “Plan”) at 97% of current market value. You may obtain a copy of the Plan prospectus and an enrollment card by contacting Wells Fargo Shareowner Services at (800) 468-9716 or by visiting www.shareowneronline.com.

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Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

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

Consolidated Balance Sheet Information – January 31, 2012 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties
Residential	$	1,584,403		$	27,003		$	1,229,109		$	2,786,509
Commercial
Retail centers		2,638,954			74,012			1,203,459			3,768,401
Office and other buildings		2,949,699			94,310			387,543			3,242,932
Corporate and other equipment		10,392			–			–			10,392
Total completed rental properties		7,183,448			195,325			2,820,111			9,808,234
Projects under construction
Residential		56,496			988			95,404			150,912
Commercial
Retail centers		595,011			309			7,945			602,647
Office and other buildings		606,304			370,626			2,302			237,980
Total projects under construction		1,257,811			371,923			105,651			991,539
Projects under development
Residential		776,817			170,423			17,693			624,087
Commercial
Retail centers		39,495			99			10,481			49,877
Office and other buildings		254,856			25,712			2,670			231,814
Total projects under development		1,071,168			196,234			30,844			905,778
Total projects under construction and development		2,328,979			568,157			136,495			1,897,317
Land held for development and sale		77,298			7,451			24,851			94,698
Total Real Estate		9,589,725			770,933			2,981,457			11,800,249
Less accumulated depreciation		(1,526,503	)		(46,085	)		(557,613	)		(2,038,031	)
Real Estate, net		8,063,222			724,848			2,423,844			9,762,218
Cash and equivalents		217,486			9,324			60,689			268,851
Restricted cash and escrowed funds		542,566			98,001			109,282			553,847
Notes and accounts receivable, net		406,244			19,542			36,684			423,386
Investments in and advances to unconsolidated entities		609,079			(160,470	)		(542,772	)		226,777
Lease and mortgage procurement costs, net		273,995			8,760			58,512			323,747
Prepaid expenses and other deferred costs, net		227,354			34,626			20,708			213,436
Intangible assets, net		107,192			3			11,076			118,265
Land held for divestiture		57,145			14,141			45,257			88,261
Total Assets	$	10,504,283		$	748,775		$	2,223,280		$	11,978,788

4

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet Information – January 31, 2012 (Unaudited)

		$0000000000			$0000000000			$0000000000			$0000000000
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Liabilities and Equity
Liabilities
Mortgage debt and notes payable, nonrecourse
Completed rental properties
Residential	$	1,008,576		$	18,844		$	949,015		$	1,938,747
Commercial
Retail centers		1,735,148			67,371			971,035			2,638,812
Office and other buildings		2,064,588			73,056			301,910			2,293,442
Total completed rental properties		4,808,312			159,271			2,221,960			6,871,001
Projects under construction
Residential		6,596			–			56,737			63,333
Commercial
Retail centers		330,533			–			–			330,533
Office and other buildings		207,028			127,685			–			79,343
Total projects under construction		544,157			127,685			56,737			473,209
Projects under development
Residential		272,195			66,027			–			206,168
Commercial
Retail centers		–			–			–			–
Office and other buildings		–			–			2,887			2,887
Total projects under development		272,195			66,027			2,887			209,055
Total projects under construction and development		816,352			193,712			59,624			682,264
Land held for development and sale		15,775			1,578			12,655			26,852
Total Mortgage debt and notes payable, nonrecourse		5,640,439			354,561			2,294,239			7,580,117
Bank revolving credit facility		–			–			–			–
Senior and subordinated debt		1,038,529			–			–			1,038,529
Construction payables		202,395			61,564			18,564			159,395
Operating accounts payable and accrued expenses		621,582			27,798			161,323			755,107
Accrued derivative liability		174,020			–			19,033			193,053
Deferred profit on NY retail joint venture transaction		114,465			–			–			114,465
Total Accounts payable, accrued expenses and other liabilities		1,112,462			89,362			198,920			1,220,020
Cash distributions and losses in excess of investments in unconsolidated entities		279,708			(24,803	)		(282,105	)		22,406
Deferred income taxes		433,040			–			–			433,040
Mortgage debt and notes payable, nonrecourse on land held for divestiture		19,084			1,721			12,226			29,589
Total Liabilities		8,523,262			420,841			2,223,280			10,325,701
Redeemable Noncontrolling Interest		229,149			229,149			–			–
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss		1,587,526			–			–			1,587,526
Accumulated other comprehensive loss		(120,460	)		–			–			(120,460	)
Total Shareholders’ Equity		1,467,066			–			–			1,467,066
Noncontrolling interest		284,806			98,785			–			186,021
Total Equity		1,751,872			98,785			–			1,653,087
Total Liabilities and Equity	$	10,504,283		$	748,775		$	2,223,280		$	11,978,788

5

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet Information – January 31, 2011 (Unaudited)

		$0000000000			$0000000000			$0000000000			$0000000000
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties
Residential	$	1,664,490		$	26,028		$	826,356		$	2,464,818
Commercial
Retail centers		3,226,717			113,193			718,593			3,832,117
Office and other buildings		3,314,371			253,604			378,863			3,439,630
Corporate and other equipment		9,847			–			1			9,848
Total completed rental properties		8,215,425			392,825			1,923,813			9,746,413
Projects under construction
Residential		771,245			213,988			3,642			560,899
Commercial
Retail centers		703,397			532			50,220			753,085
Office and other buildings		297,069			199,241			1,981			99,809
Total projects under construction		1,771,711			413,761			55,843			1,413,793
Projects under development
Residential		687,125			222,514			6,063			470,674
Commercial
Retail centers		17,837			99			10,890			28,628
Office and other buildings		229,562			58,830			6,807			177,539
Total projects under development		934,524			281,443			23,760			676,841
Total projects under construction and development		2,706,235			695,204			79,603			2,090,634
Land held for development and sale		244,879			18,683			115,607			341,803
Total Real Estate		11,166,539			1,106,712			2,119,023			12,178,850
Less accumulated depreciation		(1,614,399	)		(63,987	)		(424,331	)		(1,974,743	)
Real Estate, net		9,552,140			1,042,725			1,694,692			10,204,107
Cash and equivalents		193,372			13,979			48,583			227,976
Restricted cash and escrowed funds		720,180			240,709			78,890			558,361
Notes and accounts receivable, net		403,101			20,329			86,729			469,501
Investments in and advances to unconsolidated entities		431,509			(278,671	)		(323,995	)		386,185
Lease and mortgage procurement costs, net		356,804			30,171			33,025			359,658
Prepaid expenses and other deferred costs, net		266,689			44,536			10,443			232,596
Intangible assets, net		135,906			5			1,289			137,190
Total Assets	$	12,059,701		$	1,113,783		$	1,629,656		$	12,575,574

6

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet Information – January 31, 2011 (Unaudited)

		$000000000			$000000000			$000000000			$000000000
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Liabilities and Equity
Liabilities
Mortgage debt and notes payable, nonrecourse
Completed rental properties
Residential	$	1,110,095		$	18,998		$	709,846		$	1,800,943
Commercial
Retail centers		2,322,539			120,042			655,162			2,857,659
Office and other buildings		2,346,189			219,327			295,641			2,422,503
Total completed rental properties		5,778,823			358,367			1,660,649			7,081,105
Projects under construction
Residential		717,700			203,681			–			514,019
Commercial
Retail centers		379,363			–			–			379,363
Office and other buildings		82,157			60,108			–			22,049
Total projects under construction		1,179,220			263,789			–			915,431
Projects under development
Residential		155,890			61,760			–			94,130
Commercial
Retail centers		–			–			–			–
Office and other buildings		42,200			16,880			2,887			28,207
Total projects under development		198,090			78,640			2,887			122,337
Total projects under construction and development		1,377,310			342,429			2,887			1,037,768
Land held for development and sale		51,085			3,500			49,831			97,416
Total Mortgage debt and notes payable, nonrecourse		7,207,218			704,296			1,713,367			8,216,289
Bank revolving credit facility		137,152			–			–			137,152
Senior and subordinated debt		773,683			–			–			773,683
Construction payables		179,601			44,490			4,670			139,781
Operating accounts payable and accrued expenses		715,068			28,443			105,075			791,700
Accrued derivative liability		156,587			3,327			15,163			168,423
Total Accounts payable, accrued expenses and other liabilities		1,051,256			76,260			124,908			1,099,904
Cash distributions and losses in excess of investments in unconsolidated entities		290,492			(38,493	)		(208,619	)		120,366
Deferred income taxes		498,811			–			–			498,811
Total Liabilities		9,958,612			742,063			1,629,656			10,846,205
Redeemable Noncontrolling Interest		226,829			226,829			–			–
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss		1,637,777			–			–			1,637,777
Accumulated other comprehensive loss		(94,429	)		–			–			(94,429	)
Total Shareholders’ Equity		1,543,348			–			–			1,543,348
Noncontrolling interest		330,912			144,891			–			186,021
Total Equity		1,874,260			144,891			–			1,729,369
Total Liabilities and Equity	$	12,059,701		$	1,113,783		$	1,629,656		$	12,575,574

7

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Earnings Information – Three Months Ended January 31, 2012 (Unaudited)

		$0000000000			$0000000000			$0000000000			$0000000000			$0000000000
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	281,249		$	17,675		$	106,313		$	2,481		$	372,368
Expenses
Operating expenses		191,427			13,600			49,895			2,828			230,550
Depreciation and amortization		53,850			707			20,131			215			73,489
Impairment of real estate		113,804			243			40,897			–			154,458
		359,081			14,550			110,923			3,043			458,497
Interest expense		(64,128	)		(2,823	)		(26,457	)		(106	)		(87,868	)
Amortization of mortgage procurement costs		(2,797	)		(86	)		(858	)		(2	)		(3,571	)
Gain on early extinguishment of debt		256			134			114			–			236
Interest and other income		10,001			458			342			(1	)		9,884
Net gain on disposition of full or partial interests in rental properties		2,255			–			–			11,859			14,114
Earnings (loss) before income taxes		(132,245	)		808			(31,469	)		11,188			(153,334	)
Income tax expense (benefit)
Current		(11,340	)		–			–			8,994			(2,346	)
Deferred		(52,839	)		–			–			(4,283	)		(57,122	)
		(64,179	)		–			–			4,711			(59,468	)
Equity in earnings (loss) of unconsolidated entities, including impairment		(43,402	)		(413	)		31,469			–			(11,520	)
Earnings (loss) from continuing operations		(111,468	)		395			–			6,477			(105,386	)
Discontinued operations, net of tax:
Operating loss from rental properties		(1,091	)		(573	)		–			518			–
Impairment of real estate		(6,279	)		–			–			6,279			–
Gain on disposition of rental properties		13,274			–			–			(13,274	)		–
		5,904			(573	)		–			(6,477	)		–
Net loss		(105,564	)		(178	)		–			–			(105,386	)
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(395	)		(395	)		–			–			–
Loss from discontinued operations attributable to noncontrolling interests		573			573			–			–			–
		178			178			–			–			–
Net loss attributable to Forest City Enterprises, Inc.	$	(105,386	)	$	–		$	–		$	–		$	(105,386	)
Preferred dividends		(3,850	)		–			–			–			(3,850	)
Net loss attributable to Forest City Enterprises, Inc. common shareholders	$	(109,236	)	$	–		$	–		$	–		$	(109,236	)

8

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Earnings Information – Year Ended January 31, 2012 (Unaudited)

		$0000000000			$0000000000			$0000000000			$0000000000			$0000000000
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	1,089,977		$	56,108		$	385,521		$	23,173		$	1,442,563
Expenses
Operating expenses		668,959			38,794			179,242			18,074			827,481
Depreciation and amortization		218,601			4,659			67,855			3,154			284,951
Impairment of real estate		119,324			243			82,186			10,257			211,524
		1,006,884			43,696			329,283			31,485			1,323,956
Interest expense		(261,037	)		(11,989	)		(100,958	)		(2,123	)		(352,129	)
Amortization of mortgage procurement costs		(11,812	)		(513	)		(3,015	)		(356	)		(14,670	)
Gain (loss) on early extinguishment of debt		9,590			1,641			(366	)		–			7,583
Interest and other income		52,114			1,370			989			2			51,735
Net gain on disposition of full or partial interests in rental properties		17,665			–			12,567			51,796			82,028
Earnings (loss) before income taxes		(110,387	)		2,921			(34,545	)		41,007			(106,846	)
Income tax expense (benefit)
Current		(9,300	)		–			–			11,139			1,839
Deferred		55,044			–			–			6,536			(48,508	)
		(64,344	)		–			–			17,675			(46,669	)
Equity in earnings (loss) of unconsolidated entities, including impairment		(61,039	)		(185	)		34,545			–			(26,309	)
Earnings (loss) from continuing operations		(107,082	)		2,736			–			23,332			(86,486	)
Discontinued operations, net of tax:
Operating earnings from rental properties		992			1,424			–			432			–
Impairment of real estate		(6,279	)		–			–			6,279			–
Gain on disposition of rental properties		111,801			81,758			–			(30,043	)		–
		106,514			83,182			–			(23,332	)		–
Net earnings (loss)		(568	)		85,918			–			–			(86,486	)
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(2,736	)		(2,736	)		–			–			–
Earnings from discontinued operations attributable to noncontrolling interests		(83,182	)		(83,182	)		–			–			–
		(85,918	)		(85,918	)		–			–			–
Net loss attributable to Forest City Enterprises, Inc.	$	(86,486	)	$	–		$	–		$	–		$	(86,486	)
Preferred dividends		(15,400	)		–			–			–			(15,400	)
Net loss attributable to Forest City Enterprises, Inc. common shareholders	$	(101,886	)	$	–		$	–		$	–		$	(101,886	)

9

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Earnings Information – Three Months Ended January 31, 2011 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	280,147		$	14,172		$	80,167		$	14,978		$	361,120
Expenses
Operating expenses		172,078			8,309			39,254			10,457			213,480
Depreciation and amortization		59,044			1,575			15,237			1,764			74,470
Impairment of real estate		–			–			35,714			–			35,714
		231,122			9,884			90,205			12,221			323,664
Interest expense		(69,387	)		(3,047	)		(22,228	)		(1,848	)		(90,416	)
Amortization of mortgage procurement costs		(2,849	)		(117	)		(614	)		(271	)		(3,617	)
Gain (loss) on extinguishment of debt		(31,688	)		–			2,785			–			(28,903	)
Interest and other income		17,859			611			381			2			17,631
Net gain on disposition of full or partial interests in rental properties		–			–			15,633			46,527			62,160
Earnings (loss) before income taxes		(37,040	)		1,735			(14,081	)		47,167			(5,689	)
Income tax expense (benefit)
Current		(5,044	)		–			–			4,298			(746	)
Deferred		(18,310	)		–			–			14,820			(3,490	)
		(23,354	)		–			–			19,118			(4,236	)
Equity in earnings (loss) of unconsolidated entities,including impairment		(12,742	)		1,719			14,081			–			(380	)
Earnings (loss) from continuing operations		(26,428	)		3,454			–			28,049			(1,833	)
Discontinued operations, net of tax:
Operating earnings from rental properties		2,373			1,981			–			(392	)		–
Gain on disposition of rental properties		27,657			–			–			(27,657	)		–
		30,030			1,981			–			(28,049	)		–
Net earnings (loss)		3,602			5,435			–			–			(1,833	)
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(3,454	)		(3,454	)		–			–			–
Earnings from discontinued operations attributable to noncontrolling interests		(1,981	)		(1,981	)		–			–			–
		(5,435	)		(5,435	)		–			–			–
Net loss attributable to Forest City Enterprises, Inc.	$	(1,833	)	$	–		$	–		$	–		$	(1,833	)
Preferred dividends		(3,850	)		–			–			–			(3,850	)
Net loss attributable to Forest City Enterprises, Inc. common shareholders	$	(5,683	)	$	–		$	–		$	–		$	(5,683	)

10

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Earnings Information – Year Ended January 31, 2011 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	1,117,649		$	54,119		$	316,900		$	63,560		$	1,443,990
Expenses
Operating expenses		647,199			31,713			169,265			42,356			827,107
Depreciation and amortization		234,728			6,384			53,072			10,532			291,948
Impairment of real estate		4,763			1,526			72,459			81,643			157,339
		886,690			39,623			294,796			134,531			1,276,394
Interest expense		(309,766	)		(16,774	)		(81,184	)		(9,482	)		(383,658	)
Amortization of mortgage procurement costs		(11,484	)		(444	)		(2,314	)		(1,056	)		(14,410	)
Gain (loss) on extinguishment of debt		(21,035	)		247			2,760			–			(18,522	)
Interest and other income		52,818			2,635			15,666			14			65,863
Net gain on disposition of full or partial interests in rental properties		202,878			–			23,461			47,092			273,431
Net gain on disposition of partial interests in other investment		55,112			23,675			–			–			31,437
Earnings (loss) before income taxes		199,482			23,835			(19,507	)		(34,403	)		121,737
Income tax expense (benefit)
Current		602			–			–			2,491			3,093
Deferred		69,524			–			–			(15,002	)		54,522
		70,126			–			–			(12,511	)		57,615
Equity in earnings (loss) of unconsolidated entities, including impairment		(30,194	)		(4,613	)		19,507			–			(6,074	)
Earnings (loss) from continuing operations		99,162			19,222			–			(21,892	)		58,048
Discontinued operations, net of tax:
Operating earnings from rental properties		4,007			3,917			–			(90	)		–
Impairment of real estate		(49,980	)		–			–			49,980			–
Gain on disposition of rental properties		32,209			4,211			–			(27,998	)		–
		(13,764	)		8,128			–			21,892			–
Net earnings		85,398			27,350			–			–			58,048
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(19,222	)		(19,222	)		–			–			–
Earnings from discontinued operations attributable to noncontrolling interests		(8,128	)		(8,128	)		–			–			–
		(27,350	)		(27,350	)		–			–			–
Net earnings attributable to Forest City Enterprises, Inc.	$	58,048		$	–		$	–		$	–		$	58,048
Preferred dividends		(11,807	)		–			–			–			(11,807	)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders	$	46,241		$	–		$	–		$	–		$	46,241

11

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Net Asset Value Components – January 31, 2012

The “Net Asset Value Components” table below represents components of our business relevant to calculate Net Asset Value (“NAV”), a non-GAAP measure. There is no directly comparable GAAP financial measure to NAV. We consider NAV to be a useful supplemental measure which assists both management and investors to estimate the fair value of our Company. The calculation of the net asset value involves significant estimates and can be calculated using various methods. Each individual investor must determine the specific methodology, assumptions and estimates to use to arrive at an estimated NAV of the Company.

The components of NAV do not consider the potential changes in rental and fee income streams, or development platform. The components include non-GAAP financial measures, such as NOI and information related to our rental properties business prepared using the pro-rata consolidation method. Although these measures are not presented in accordance with GAAP, investors can use these non-GAAP measures as supplementary information to evaluate our business. The non-GAAP measures presented are not intended to be performance measures that should be regarded as alternatives to, or more meaningful than, our GAAP measures.

Net Asset Value Components - January 31, 2012
Completed Rental Properties (“CRP”)
(Dollars in millions at pro-rata)	Q4 2011 NOI(1)			Annualized NOI(2)			Net Stabilized Adjustments (3)			Annualized Stabilized NOI			Nonrecourse Debt(4)
				A			B			=A + B
Commercial Real Estate
Retail	$	56.9			227.6		$	9.8		$	237.4		$	(2,638.8	)
Office		59.8			239.2			(0.4	)		238.8			(2,293.4	)
Other		(3.3	)		(13.2	)		9.5			(3.7	)
Total Commercial Real Estate	$	113.4		$	453.6		$	18.9		$	472.5		$	(4,932.2	)
Residential Real Estate
Apartments	$	34.5		$	138.0		$	0.9		$	138.9		$	(1,938.8	)
Senior Housing		2.6			10.4			–			10.4
Military Housing		8.9			35.6			(20.6	)		15.0
Other		(1.4	)		(5.6	)		–			(5.6	)
Total Residential Real Estate	$	44.6		$	178.4		$	(19.7	)	$	158.7		$	(1,938.8	)
Total Rental Properties	$	158.0		$	632.0		$	(0.8	)	$	631.2		$	(6,871.0	)
Development Pipeline Debt Adj. NET(5)														423.1
Adjusted Total Rental Properties	$	158.0		$	632.0		$	(0.8	)	$	631.2		$	(6,447.9	)
Development Pipeline
										Book Value			Nonrecourse Debt(4)
Westchester’s Ridge Hill(Adjusted for amounts included in CRP)(5)										$	270.0		$	(157.2	)
8 Spruce Street(Adjusted for amounts included in CRP)(5)											351.9			(218.2	)
Foundry Lofts(Adjusted for amounts included in CRP)(5)											54.9			(47.7	)
Projects under construction(4)											991.5			(473.2	)
Adjusted projects under construction										$	1,668.3		$	(896.3	)
Projects under development(4)										$	905.8		$	(209.1	)
Land held for development and sale(4)										$	94.7		$	(26.9	)
Other Tangible Assets
										Book Value(4)			Nonrecourse Debt(4)
Cash and equivalents										$	268.9
Restricted cash and escrowed funds										$	553.8
Notes and accounts receivable, net(6)										$	423.4
Net investments and advances to unconsolidated entities										$	204.4
Prepaid expenses and other deferred costs, net										$	213.4
Land held for divestiture										$	88.3		$	(29.6	)
Recourse Debt and Other Liabilities
										Book Value(4)
Bank revolving credit facility										$	–
Senior and subordinated debt										$	(1,038.5	)
Less: convertible debt										$	599.1
Construction payables										$	(159.4	)
Operating accounts payable and accrued expenses(7)										$	(755.1	)
Weighted Average Shares Outstanding—Diluted
Number of shares for the three months ended January 31,  2012 (In millions)											221.5

12

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Net Asset Value Components – January 31, 2012 (continued)

(1) Pro-rata Q4 2011 NOI is reconciled to NOI at full consolidation by Product Group for the three months ended January 31, 2012 in the Supplemental Operating Information section of this supplemental package.

(2) The pro-rata annualized NOI is calculated by taking the Q4 2011 NOI times a multiple of four.

(3) The net stabilized adjustments column represents net adjustments required to arrive at a fully stabilized NOI for those properties currently in initial lease up periods, net of the removal of partial period NOI for recently sold properties. For those properties currently in initial lease up periods we have included stabilization adjustments as follows:

a) NOI for phased and new openings is removed until the property has been open for one year or achieves 80% lease commitment, whichever comes first.

b) NOI for the properties in lease up that have met the requirements of a) are reflected at 5% of the pro-rata cost disclosed in our Development Pipeline disclosure (Prior Two Year Openings). This assumption does not reflect Forest City’s anticipated NOI, but rather is used in order to establish a hypothetical basis for valuation of lease up properties.

c) At the conclusion of the initial development period at each of our military housing communities, we estimate the ongoing property management fees, net of operating expenses, to be $15.0 million.

The net stabilized adjustments are not comparable to any GAAP measure and therefore do not have a reconciliation to its nearest comparable GAAP measure.

(4) Amounts are derived from the respective pro-rata balance sheet line item as of January 31, 2012 and are reconciled to their GAAP equivalents in the Selected Financial Information section of this supplemental package.

(5) Phased and new property openings that have not achieved the parameters of 3(a) will have their assets shown in the Development Pipeline section of the model.Westchester’s Ridge Hill, as of January 31, 2012, had $270.0 million of costs incurred at pro-rata consolidation and $157.2 million of mortgage debt at pro-rata consolidation which were transferred to CRP.8 Spruce Street, as of January 31, 2012, had $351.9 million of costs incurred at pro-rata consolidation and $218.2 million of mortgage debt at pro-rata consolidation which were transferred to CRP.Foundry Lofts, as of January 31, 2012, had $54.9 million of costs incurred at pro-rata consolidation and $47.7 million of mortgage debt at pro-rata consolidation which were transferred to CRP. In order to account for the phased openings ofWestchester’s Ridge Hill,8 Spruce StreetandFoundry Lofts as NAV components we have made the following adjustments:

• All costs and associated debt forWestchester’s Ridge Hill,8 Spruce StreetandFoundry Lofts, for purposes exclusive to this disclosure, are accounted for as a component of “Adjusted Projects Under Construction” in the Development Pipeline section of this schedule. Accordingly, all NOI, through the net stabilized adjustments column, and debt have been removed from the CRP section of the NAV schedule.

(6) Includes $152.8 million of straight-line rent receivable (net of $15.6 million of allowance for doubtful accounts).

(7) Includes $41.2 million of straight-line rent payable.

13

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Occupancy Data - January 31, 2012 and 2011

Retail and office occupancy is based on square feet leased at the end of the fiscal quarter. Average Occupancy Year-to-Date 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 represents total units occupied divided by total units available. Average Occupancy for residential is calculated by dividing gross potential rent less vacancy by gross potential rent. Average Daily Rate (“ADR”) is calculated by dividing revenue by the number of rooms sold.

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, 2012	January 31, 2012	January 31, 2011	January 31, 2011
Retail
Comparable	90.9%	91.1%	91.2%	90.7%
Total	89.0%	90.0%	91.2%	90.0%
Office
Comparable	91.0%	90.2%	89.5%	90.3%
Total	89.1%	88.4%	87.8%	88.7%
Residential(1) (2)
Comparable	93.4%	94.7%	93.8%	93.8%
Total	92.1%	92.4%	92.7%	89.6%
Hotels
Comparable and Total		69.1%		69.0%
Comparable and Total ADR		$141.91		$140.03

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

(1) Excludes military and subsidized senior housing units.

(2) Prior periods have been recast to exclude subsidized senior housing. The Company believes this change will improve disclosure by allowing investors to see results for the conventional apartment portfolio separated from those of the limited-dividend senior-housing properties.

(3) Represents Comparable Occupancy for Retail and Office as of the applicable date and Comparable Average Occupancy Year-to-Date for Residential.

14

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Retail Sales Data

The following graphs provide current and historical retail sales for small shop inline tenants at our regional malls. We believe this data allows investors to better understand the productivity of our tenants.

The graph below represents regional mall sales for tenants that are open and operating for the entire rolling 12-months presented. Those tenants that have begun and/or ceased operations in the periods shown are not included.

The graph below represents regional mall sales for all tenants that are open and operating for the entire comparable periods presented. Those tenants that have begun and/or ceased operations in the periods shown are not included.

(1) All sales data is derived from schedules provided by our tenants and is not subject to the same internal control and verification procedures that are applied to the other data supplied in the Company’s supplemental package. In addition, the data is presented on a one-month lag to be consistent with the calendar year end of our tenants.

15

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Leasing Summary

Retail Centers

The following tables represent those new leases and gross leasable area (“GLA”) signed on the same space in which there was a former tenant and existing tenant renewals.

Regional Malls - Quarterly
Quarter	Number of Leases Signed		GLA Signed		Contractual Rent Per Square Foot (1)(2)		Prior Rent Per Square Foot (1)(2)		Cash Basis % Change over Prior Rent
1st Quarter 2011		29		64,008	$	60.70	$	58.14		4	%
2nd Quarter 2011		30		66,897	$	79.63	$	72.72		10	%
3rd Quarter 2011		48		162,170	$	49.53	$	45.43		9	%
4th Quarter 2011		59		149,030	$	60.95	$	55.35		10	%
Total - 12 months		166		442,105	$	59.55	$	54.75		9	%

Specialty Retail Centers - Quarterly
Quarter	Number of Leases Signed		GLA Signed		Contractual Rent Per Square Foot (1)(2)		Prior Rent Per Square Foot (1)(2)		Cash Basis % Change over Prior Rent
1st Quarter 2011		5		11,900	$	48.92	$	41.22		19	%
2nd Quarter 2011		4		15,522	$	21.04	$	21.43		(2	%)
3rd Quarter 2011		10		34,385	$	62.29	$	56.11		11	%
4th Quarter 2011		10		84,952	$	30.97	$	27.80		11	%
Total - 12 months		29		146,759	$	38.71	$	34.85		11	%

Office Buildings

The following table represents all new leases compared to terms of all expired leases in our office portfolio over the past 12 months.

Quarterly
Quarter	Number of Leases Signed		Number of Leases Expired		GLA Signed		GLA Expired		Contractual Rent Per Square Foot (2)		Expiring Rent Per Square Foot (2)		Cash Basis % Change over Prior Rent
1st Quarter 2011		38		24		649,323		327,228	$	32.56	$	29.57		10	%
2nd Quarter 2011		19		19		127,285		110,492	$	19.22	$	18.37		5	%
3rd Quarter 2011		33		27		178,838		178,598	$	26.20	$	29.22		(10	%)
4th Quarter 2011		46		33		703,488		683,121	$	30.13	$	27.86		8	%
Total - 12 months		136		103		1,658,934		1,299,439	$	29.82	$	27.67		8	%

(1) Retail contractual rent per square foot includes fixed minimum rent and fixed additional charges for marketing/promotional charges and common area maintenance.

(2) For all new leases, contractual rent per square foot is the new annualized rental rate as of rental commencement. For all expiring leases, contractual rent per square foot is the annualized rental rate at the time of expiration, which includes any applicable escalations.

16

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

We use NOI, along with EBDT, to assess operating performance. Comparable NOI is defined as NOI from properties opened and operated in the three months and years ended January 31, 2012 and 2011. The schedules below present Pro-Rata Comparable NOI for the three months and year ended January 31, 2012.

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

	Three Months Ended January 31, 2012			Year Ended January 31, 2012
Retail		4.7	%		2.6	%
Office		0.5	%		(2.6	%)
Residential(1)		11.9	%		7.3	%
Hotel		(0.6	%)		0.1	%
Total		4.5	%		1.4	%

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

Quarterly Historical Trends																Annual Historical Trends
	Three Months Ended																Years Ended
	January 31, 2012			October 31, 2011			July 31, 2011			April 30, 2011			January 31, 2011				January 31, 2012			January 31, 2011			January 31, 2010
Retail		4.7	%		(1.5	%)		1.6	%		2.6	%		3.4	%	Retail		2.6	%		2.2	%		(3.9	%)
Office		0.5	%		(7.6	%)		3.1	%		(2.5	%)		0.2	%	Office		(2.6	%)		2.1	%		5.4	%
Residential(1)		11.9	%		12.0	%		3.1	%		4.8	%		2.0	%	Residential (1)		7.3	%		4.3	%		(3.9	%)
Hotel		(0.6	%)		(6.7	%)		1.6	%		(54.2	%)		(13.4	%)	Hotel		0.1	%		(3.9	%)		(9.9	%)
Total		4.5	%		(1.5	%)		2.5	%		0.5	%		1.6	%	Total		1.4	%		2.4	%		(0.9	%)

(1) Prior periods have been recast to exclude subsidized senior housing. The Company believes this change will improve disclosure by allowing investors to see results for the conventional apartment portfolio separated from those of the limited-dividend senior-housing properties.

17

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

	Net Operating Income(dollars in thousands)
	Three Months Ended January 31, 2012												Three Months Ended January 31, 2011											% Change
	Full			Less			Plus			Pro-Rata			Full			Less			Plus		Pro-Rata			Full			Pro-Rata
	Consolidation			Noncontrolling			Discontinued			Consolidation			Consolidation			Noncontrolling			Discontinued		Consolidation			Consolidation			Consolidation
	(GAAP)			Interest			Operations			(Non-GAAP)			(GAAP)(2)			Interest			Operations		(Non-GAAP)			(GAAP)			(Non-GAAP)
Commercial Group
Retail
Comparable	$	59,429		$	1,853		$	–		$	57,576		$	56,967		$	1,982		$	–	$	54,985			4.3	%		4.7	%
Total		58,778			1,918			–			56,860			67,109			2,915			1,132		65,326
Office Buildings
Comparable		57,548			1,791			–			55,757			57,895			2,435			–		55,460			(0.6	%)		0.5	%
Total		62,505			2,369			(333	)		59,803			59,735			2,435			2,413		59,713
Hotels
Comparable		1,979			–			–			1,979			1,990			–			–		1,990			(0.6	%)		(0.6	%)
Total		1,979			–			(15	)		1,964			1,990			–			351		2,341
Earnings from Commercial
LandSales		690			–			–			690			282			–			–		282
Other(1)		(7,627	)		(1,715	)		–			(5,912	)		4,493			(26	)		–		4,519
Total Commercial Group
Comparable		118,956			3,644			–			115,312			116,852			4,417			–		112,435			1.8	%		2.6	%
Total		116,325			2,572			(348	)		113,405			133,609			5,324			3,896		132,181
Residential Group
Apartments
Comparable		34,022			421			–			33,601			30,378			359			–		30,019			12.0	%		11.9	%
Total		35,041			558			–			34,483			34,537			2,255			–		32,282
Subsidized Senior Housing		2,120			(416	)		–			2,536			3,351			60			–		3,291
Military Housing		9,521			585			–			8,936			7,520			–			–		7,520
Other(1)		(1,282	)		114			–			(1,396	)		(3,009	)		170			–		(3,179	)
Total Residential Group
Comparable		34,022			421			–			33,601			30,378			359			–		30, 019			12.0	%		11.9	%
Total		45,400			841			–			44,559			42,399			2,485			–		39,914
Total Rental Properties
Comparable		152,978			4,065			–			148,913			147,230			4,776			–		142,454			3.9	%		4.5	%
Total		161,725			3,413			(348	)		157,964			176,008			7,809			3,896		172,095
Land Development Group		6,071			707			–			5,364			3,077			384			–		2,693
The Nets		(11,845	)		–			–			(11,845	)		(312	)		–			–		(312	)
Corporate Activities		(16,385	)		–			–			(16,385	)		(18,004	)		–			–		(18,004	)
Grand Total	$	139,566		$	4,120		$	(348	)	$	135,098		$	160,769		$	8,193		$	3,896	$	156,472

(1) Includes write-offs of abandoned development projects, non-capitalizable development costs, non-capitalizable marketing/promotional costs associated withBarclays Center and unallocated management and service company overhead, net of tax credit income.

(2) Amounts have been recast to add back interest expense and gain (loss) on early extinguishment of debt for unconsolidated entities to NOI at full consolidation to conform to current period presentation.

18

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

	Net Operating Income(dollars in thousands)
	Year Ended January 31, 2012											Year Ended January 31, 2011											% Change
	Full			Less			Plus		Pro-Rata			Full			Less			Plus		Pro-Rata			Full			Pro-Rata
	Consolidation			Noncontrolling			Discontinued		Consolidation			Consolidation			Noncontrolling			Discontinued		Consolidation			Consolidation			Consolidation
	(GAAP)			Interest			Operations		(Non-GAAP)			(GAAP)(3)			Interest			Operations		(Non-GAAP)			(GAAP)			(Non-GAAP)
Commercial Group
Retail
Comparable	$	229,288		$	7,457		$	–	$	221,831		$	223,633		$	7,483		$	–	$	216,150			2.5	%		2.6	%
Total		246,126			9,392			–		236,734			274,793			11,379			8,894		272,308
Office Buildings
Comparable		231,117			6,633			–		224,484			240,748			10,383			–		230,365			(4.0	%)		(2.6	%)
Total		253,108			7,269			2,645		248,484			255,846			10,887			6,613		251,572
Hotels
Comparable		9,977			–			–		9,977			9,965			–			–		9,965			0.1	%		0.1	%
Total		9,977			–			1,885		11,862			9,965			–			3,016		12,981
Earnings from Commercial
Land Sales (1)		44,175			(782	)		–		44,957			4,652			14			–		4,638
Other(2)		(12,867	)		(2,608	)		–		(10,259	)		(134	)		(762	)		–		628
Total Commercial Group
Comparable		470,382			14,090			–		456,292			474,346			17,866			–		456,480			(0.8	%)		0.0	%
Total		540,519			13,271			4,530		531,778			545,122			21,518			18,523		542,127
Residential Group
Apartments
Comparable		121,487			1,701			–		119,786			112,912			1,313			–		111,599			7.6	%		7.3	%
Total		134,327			2,355			–		131,972			126,203			3,691			900		123,412
Subsidized Senior Housing		14,531			(65	)		–		14,596			19,378			480			–		18,898
Military Housing		29,314			920			–		28,394			28,469			(37	)		–		28,506
Land Sales		204			16			–		188			–			–			–		–
Other(2)		(3,788	)		541			–		(4,329	)		(3,377	)		287			–		(3,664	)
Total Residential Group
Comparable		121,487			1,701			–		119,786			112,912			1,313			–		111,599			7.6	%		7.3	%
Total		174,588			3,767			–		170,821			170,673			4,421			900		167,152
Total Rental Properties
Comparable		591,869			15,791			–		576,078			587,258			19,179			–		568,079			0.8	%		1.4	%
Total		715,107			17,038			4,530		702,599			715,795			25,939			19,423		709,279
Land Development Group		11,298			1,461			–		9,837			5,617			732			–		4,885
The Nets
Operations		(26,814	)		–			–		(26,814	)		(17,172	)		(6,243	)		–		(10,929	)
Gain on disposition of partial interest		–			–			–		–			55,112			23,675			–		31,437
Total		(26,814	)		–			–		(26,814	)		37,940			17,432			–		20,508
Corporate Activities		(53,837	)		–			–		(53,837	)		(48,357	)		–			–		(48,357	)
Grand Total	$	645,754		$	18,499		$	4,530	$	631,785		$	710,995		$	44,103		$	19,423	$	686,315

(1) Includes $42,622 of NOI generated from the casino land sale at full and pro-rata consolidation.

(2) Includes write-offs of abandoned development projects, non-capitalizable development costs, non-capitalizable marketing/promotional costs associated withBarclays Center and unallocated management and service company overhead, net of tax credit income.

(3) Amounts have been recast to add back interest expense and gain (loss) on early extinguishment of debt for unconsolidated entities to NOI at full consolidation to conform to current period presentation.

19

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income by Product Type

Pro-Rata Consolidation (dollars in thousands)

(1) Includes subsidized senior housing.

(2) Includes write-offs of abandoned development projects, non-capitalizable development costs, non-capitalizable marketing/promotional costs associated withBarclays Center and unallocated management and service company overhead, net of tax credit income.

20

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income by Core Market

Pro-Rata Consolidation (dollars in thousands)

(1) Includes Richmond, Virginia.

(2) Includes write-offs of abandoned development projects, non-capitalizable development costs, non-capitalizable marketing/promotional costs associated withBarclays Center and unallocated management and service company overhead, net of tax credit income.

21

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

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

	Three Months Ended January 31, 2012															Three Months Ended January 31, 2011
							Plus															Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation			Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	281,249		$	17,675		$	106,313		$	2,481		$	372,368		$	280,147		$	14,172		$	80,167		$	14,978		$	361,120
Exclude straight-line rent adjustment (1)		(5,308	)		–			–			–			(5,308	)		(8,532	)		–			–			(627	)		(9,159	)
Adjusted revenues		275,941			17,675			106,313			2,481			367,060			271,615			14,172			80,167			14,351			351,961
Add interest and other income		10,001			458			342			(1	)		9,884			17,859			611			381			2			17,631
Add equity in earnings (loss) of unconsolidated entities, including impairment		(43,402	)		(413	)		31,469			–			(11,520	)		(12,742	)		1,719			14,081			–			(380	)
Excludes gain on disposition of unconsolidated entities		–			–			–			–			–			(15,633	)		–			15,633			–			–
Exclude impairment of unconsolidated real estate		40,897			–			(40,897	)		–			–			35,714			–			(35,714	)		–			–
Exclude depreciation and amortization of unconsolidated entities (see below)		20,989			–			(20,989	)		–			–			15,851			–			(15,851	)		–			–
Exclude interest expense of unconsolidated entities		26,457			–			(26,457	)		–			–			22,228			–			(22,228	)		–			–
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		(114	)		–			114			–			–			(2,785	)		–			2,785			–			–
Adjusted total income		330,769			17,720			49,895			2,480			365,424			332,107			16,502			39,254			14,353			369,212
Operating expenses		191,427			13,600			49,895			2,828			230,550			172,078			8,309			39,254			10,457			213,480
Add back non-Real Estate depreciation and amortization (b)		847			–			–			–			847			1,091			–			–			–			1,091
Exclude straight-line rent adjustment (2)		(1,095	)		–			–			–			(1,095	)		(1,246	)		–			–			–			(1,246	)
Exclude preference payment		24			–			–			–			24			(585	)		–			–			–			(585	)
Adjusted operating expenses		191,203			13,600			49,895			2,828			230,326			171,338			8,309			39,254			10,457			212,740
Net operating income		139,566			4,120			–			(348	)		135,098			160,769			8,193			–			3,896			156,472
Interest expense		(64,128	)		(2,823	)		(26,457	)		(106	)		(87,868	)		(69,387	)		(3,047	)		(22,228	)		(1,848	)		(90,416	)
Gain (loss) on early extinguishment of debt		256			134			114			–			236			(31,688	)		–			2,785			–			(28,903	)
Equity in (earnings) loss of unconsolidated entities, including impairment		43,402			413			(31,469	)		–			11,520			12,742			(1,719	)		(14,081	)		–			380
Gain on disposition of unconsolidated entities		–			–			–			–			–			15,633			–			–			–			15,633
Impairment of unconsolidated real estate		(40,897	)		–			–			–			(40,897	)		(35,714	)		–			–			–			(35,714	)
Depreciation and amortization of unconsolidated entities (see above)		(20,989	)		–			20,989			–			–			(15,851	)		–			15,851			–			–
Interest expense of unconsolidated entities (see above)		(26,457	)		–			26,457			–			–			(22,228	)		–			22,228			–			–
Gain (loss) on early extinguishment of debt of unconsolidated entities (see above)		114			–			(114	)		–			–			2,785			–			(2,785	)		–			–
Net gain (loss) on disposition of rental properties and partial interests in rental properties		2,255			–			–			11,859			14,114			–			–			–			46,527			46,527
Impairment of consolidated real estate		(113,804	)		(243	)		–			–			(113,561	)		–			–			–			–			–
Depreciation and amortization –Real Estate Groups (a)		(53,003	)		(707	)		(20,131	)		(215	)		(72,642	)		(57,953	)		(1,575	)		(15,237	)		(1,764	)		(73,379	)
Amortization of mortgage procurement costs –Real Estate Groups (c)		(2,797	)		(86	)		(858	)		(2	)		(3,571	)		(2,849	)		(117	)		(614	)		(271	)		(3,617	)
Straight-line rent adjustment (1) + (2)		4,213			–			–			–			4,213			7,286			–			–			627			7,913
Preference payment		24			–			–			–			24			(585	)		–			–			–			(585	)
Earnings (loss) before income taxes		(132,245	)		808			(31,469	)		11,188			(153,334	)		(37,040	)		1,735			(14,081	)		47,167			(5,689	)
Income tax provision		64,179			–			–			(4,711	)		59,468			23,354			–			–			(19,118	)		4,236
Equity in earnings (loss) of unconsolidated entities, including impairment		(43,402	)		(413	)		31,469			–			(11,520	)		(12,742	)		1,719			14,081			–			(380	)
Earnings (loss) from continuing operations		(111,468	)		395			–			6,477			(105,386	)		(26,428	)		3,454			–			28,049			(1,833	)
Discontinued operations, net of tax		5,904			(573	)		–			(6,477	)		–			30,030			1,981			–			(28,049	)		–
Net earnings (loss)		(105,564	)		(178	)		–			–			(105,386	)		3,602			5,435			–			–			(1,833	)
Noncontrolling interests
Earnings from continuing operations attributable to noncontrolling interests		(395	)		(395	)		–			–			–			(3,454	)		(3,454	)		–			–			–
(Earnings) loss from discontinued operations attributable to noncontrolling interests		573			573			–			–			–			(1,981	)		(1,981	)		–			–			–
Noncontrolling interests		178			178			–			–			–			(5,435	)		(5,435	)		–			–			–
Net loss attributable to Forest City Enterprises, Inc.	$	(105,386	)	$	–		$	–		$	–		$	(105,386	)	$	(1,833	)	$	–		$	–		$	–		$	(1,833	)
Preferred dividends		(3,850	)		–			–			–			(3,850	)		(3,850	)		–			–			–			(3,850	)
Net loss attributable to Forest City Enterprises, Inc. common shareholders	$	(109,236	)	$	–		$	–		$	–		$	(109,236	)	$	(5,683	)	$	–		$	–		$	–		$	(5,683	)
(a) Depreciation and amortization –Real Estate Groups	$	53,003		$	707		$	20,131		$	215		$	72,642		$	57,953		$	1,575		$	15,237		$	1,764		$	73,379
(b) Depreciation and amortization –Non-Real Estate		847			–			–			–			847			1,091			–			–			–			1,091
Total depreciation and amortization	$	53,850		$	707		$	20,131		$	215		$	73,489		$	59,044		$	1,575		$	15,237		$	1,764		$	74,470
(c) Amortization of mortgage procurement costs –Real Estate Groups	$	2,797		$	86		$	858		$	2		$	3,571		$	2,849		$	117		$	614		$	271		$	3,617
(d) Amortization of mortgage procurement costs –Non-Real Estate		–			–			–			–			–			–			–			–			–			–
Total amortization of mortgage procurement costs	$	2,797		$	86		$	858		$	2		$	3,571		$	2,849		$	117		$	614		$	271		$	3,617

22

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

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

	Year Ended January 31, 2012														Year Ended January 31, 2011
							Plus														Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata		Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation		Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)		(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	1,089,977		$	56,108		$	385,521		$	23,173		$	1,442,563	$	1,117,649		$	54,119		$	316,900		$	63,560		$	1,443,990
Exclude straight-line rent adjustment (1)		(11,134	)		–			–			(571	)		(11,705)		(21,697	)		–			–			(1,795	)		(23,492	)
Adjusted revenues		1,078,843			56,108			385,521			22,602			1,430,858		1,095,952			54,119			316,900			61,765			1,420,498
Add interest and other income		52,114			1,370			989			2			51,735		52,818			2,635			15,666			14			65,863
Add gain on disposition of partial interests in other investment -Nets		–			–			–			–			–		55,112			23,675			–			–			31,437
Add equity in earnings (loss) of unconsolidated entities, including impairment		(61,039	)		(185	)		34,545			–			(26,309)		(30,194	)		(4,613	)		19,507			–			(6,074	)
Excludes gain on disposition of unconsolidated entities		(12,567	)		–			12,567			–			–		(23,461	)		–			23,461			–			–
Exclude impairment of unconsolidated real estate		82,186			–			(82,186	)		–			–		72,459			–			(72,459	)		–			–
Exclude depreciation and amortization of unconsolidated entities (see below)		70,870			–			(70,870	)		–			–		54,439			–			(54,439	)		–			–
Exclude interest expense of unconsolidated entities		100,958			–			(100,958	)		–			–		81,184			–			(81,184	)		–			–
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		366			–			(366	)		–			–		(2,760	)		–			2,760			–			–
Adjusted total income		1,311,731			57,293			179,242			22,604			1,456,284		1,355,549			75,816			170,212			61,779			1,511,724
Operating expenses		668,959			38,794			179,242			18,074			827,481		647,199			31,713			169,265			42,356			827,107
Add back non-Real Estate depreciation and amortization (b)		3,247			–			–			–			3,247		5,028			–			878			–			5,906
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		–			–			–			–			–		–			–			69			–			69
Exclude straight-line rent adjustment (2)		(4,497	)		–			–			–			(4,497)		(5,332	)		–			–			–			(5,332	)
Exclude preference payment		(1,732	)		–			–			–			(1,732)		(2,341	)		–			–			–			(2,341	)
Adjusted operating expenses		665,977			38,794			179,242			18,074			824,499		644,554			31,713			170,212			42,356			825,409
Net operating income		645,754			18,499			–			4,530			631,785		710,995			44,103			–			19,423			686,315
Interest expense		(261,037	)		(11,989	)		(100,958	)		(2,123	)		(352,129)		(309,766	)		(16,774	)		(81,184	)		(9,482	)		(383,658	)
Gain (loss) on early extinguishment of debt		9,590			1,641			(366	)		–			7,583		(21,035	)		247			2,760			–			(18,522	)
Equity in (earnings) loss of unconsolidated entities, including impairment		61,039			185			(34,545	)		–			26,309		30,194			4,613			(19,507	)		–			6,074
Gain on disposition of unconsolidated entities		12,567			–			–			–			12,567		23,461			–			–			–			23,461
Impairment of unconsolidated real estate		(82,186	)		–			–			–			(82,186)		(72,459	)		–			–			–			(72,459	)
Depreciation and amortization of unconsolidated entities (see above)		(70,870	)		–			70,870			–			–		(54,439	)		–			54,439			–			–
Interest expense of unconsolidated entities (see above)		(100,958	)		–			100,958			–			–		(81,184	)		–			81,184			–			–
Gain (loss) on early extinguishment of debt of unconsolidated entities (see above)		(366	)		–			366			–			–		2,760			–			(2,760	)		–			–
Net gain on disposition of rental properties and partial interests in rental properties		17,665			–			–			51,796			69,461		202,878			–			–			47,092			249,970
Impairment of consolidated real estate		(119,324	)		(243	)		–			(10,257	)		(129,338)		(4,763	)		(1,526	)		–			(81,643	)		(84,880	)
Depreciation and amortization –Real Estate Groups (a)		(215,354	)		(4,659	)		(67,855	)		(3,154	)		(281,704)		(229,700	)		(6,384	)		(52,194	)		(10,532	)		(286,042	)
Amortization of mortgage procurement costs –Real Estate Groups (c)		(11,812	)		(513	)		(3,015	)		(356	)		(14,670)		(11,484	)		(444	)		(2,245	)		(1,056	)		(14,341	)
Straight-line rent adjustment (1) + (2)		6,637			–			–			571			7,208		16,365			–			–			1,795			18,160
Preference payment		(1,732	)		–			–			–			(1,732)		(2,341	)		–			–			–			(2,341	)
Earnings (loss) before income taxes		(110,387	)		2,921			(34,545	)		41,007			(106,846)		199,482			23,835			(19,507	)		(34,403	)		121,737
Income tax provision		64,344			–			–			(17,675	)		46,669		(70,126	)		–			–			12,511			(57,615	)
Equity in earnings (loss) of unconsolidated entities, including impairment		(61,039	)		(185	)		34,545			–			(26,309)		(30,194	)		(4,613	)		19,507			–			(6,074	)
Earnings (loss) from continuing operations		(107,082	)		2,736			–			23,332			(86,486)		99,162			19,222			–			(21,892	)		58,048
Discontinued operations, net of tax		106,514			83,182			–			(23,332	)		–		(13,764	)		8,128			–			21,892			–
Net earnings (loss)		(568	)		85,918			–			–			(86,486)		85,298			27,350			–			–			58,048
Noncontrolling interests
Earnings from continuing operations attributable to noncontrolling interests		(2,736	)		(2,736	)		–			–			–		(19,222	)		(19,222	)		–			–			–
Earnings from discontinued operations attributable to noncontrolling interests		(83,182	)		(83,182	)		–			–			–		(8,128	)		(8,128	)		–			–			–
Noncontrolling interests		(85,918	)		(85,918	)		–			–			–		(27,350	)		(27,350	)		–			–			–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(86,486	)	$	–		$	–		$	–		$	(86,486)	$	58,048		$	–		$	–		$	–		$	58,048
Preferred dividends		(15,400	)		–			–			–			(15,400)		(11,807	)		–			–			–			(11,807	)
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(101,886	)	$	–		$	–		$	–		$	(101,886)	$	46,241		$	–		$	–		$	–		$	46,241
(a) Depreciation and amortization –Real Estate Groups	$	215,354		$	4,659		$	67,855		$	3,154		$	281,704	$	229,700		$	6,384		$	52,194		$	10,532		$	286,042
(b) Depreciation and amortization –Non-Real Estate		3,247			–			–			–			3,247		5,028			–			878			–			5,906
Total depreciation and amortization	$	218,601		$	4,659		$	67,855		$	3,154		$	284,951	$	234,728		$	6,384		$	53,072		$	10,532		$	291,948
(c) Amortization of mortgage procurement costs –Real Estate Groups	$	11,812		$	513		$	3,015		$	356		$	14,670	$	11,484		$	444		$	2,245		$	1,056		$	14,341
(d) Amortization of mortgage procurement costs –Non-Real Estate		–			–			–			–			–		–			–			69			–			69
Total amortization of mortgage procurement costs	$	11,812		$	513		$	3,015		$	356		$	14,670	$	11,484		$	444		$	2,314		$	1,056		$	14,410

23

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Results of Operations

Net Earnings (Loss) Attributable to Forest City Enterprises, Inc. –Net loss attributable to Forest City Enterprises, Inc. for the year ended January 31, 2012 was $86,486,000 versus net earnings of $58,048,000 for the year ended January 31, 2011. Although we have substantial recurring revenue sources from our properties, we also enter into significant transactions, which create substantial variances in net earnings (loss) between periods. This variance to the prior year is primarily attributable to the following decreases, which are net of noncontrolling interest:

• $176,192,000 related to the 2010 gain on disposition of partial interest in seven mixed-useUniversity Park life science properties in Cambridge, Massachusetts, related to the formation of a new joint venture with an outside partner;

• $54,185,000 related to the 2011 increase in impairment charges of consolidated (including discontinued operations) and unconsolidated entities;

• $31,437,000 related to the 2010 gain on disposition of partial interest in The Nets;

• $29,342,000 related to the 2010 gain on disposition of partial interest inThe Grand,Lenox Club andLenox Park, apartment communities in the Washington D.C. metropolitan area, related to the formation of a new joint venture with an outside partner;

• $14,739,000 related to a 2011 increase in allocated losses from our equity investment in The Nets;

• $10,894,000 related to the 2010 gains on disposition of our unconsolidated investments exceeding 2011. The 2011 gains related toMetropolitan Lofts andTwin Lake Towers, apartment communities in Los Angeles, California and Denver, Colorado, respectively, while the 2010 gains primarily related toMillender Center, a mixed-use property in Detroit, Michigan, andWoodbridge Crossing, a specialty retail center in Woodbridge, New Jersey;

• $9,649,000 related to the lease up losses of8 Spruce Street, an apartment community in Manhattan, New York, currently being opened in phases. This property was consolidated until a recapitalization transaction in July 2011 which resulted in joint control of the investment;

• $4,683,000 related to a decrease in income recognized on the sale of state and federal Historic Preservation Tax Credits and New Market Tax Credits in 2011 compared to 2010; and

• $4,200,000 related to increases in professional fees associated with strategic planning and process improvement initiatives in 2011 compared to 2010.

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

• $42,622,000 related to the 2011 sale of land and air rights for development of a casino in downtown Cleveland, Ohio;

• $26,105,000 (which includes $3,126,000 for unconsolidated entities) related to gains on extinguishment of debt in 2011 compared to losses on extinguishment of debt in 2010;

• $9,561,000 due to the 2011 gain on disposition of partial interests in 15 retail properties in the New York City metropolitan area, related to the formation of new joint venture agreements with an outside partner;

• $6,359,000 related to a decrease in interest expense on our corporate debt due primarily to decreased borrowings on our revolving credit facility and lower interest attributable to our senior and subordinated debt;

• $5,849,000 related to the 2011 gain on disposition of partial interest in theMall at Stonecrest, a regional mall in Atlanta, Georgia, related to the formation of a new joint venture with an outside partner;

• $4,704,000 related to the 2011 gains on disposition of rental properties exceeding 2010 gains. The 2011 gains related toWaterfront Station – East 4^th & West 4^th Buildings, office buildings in Washington, D.C.,Charleston Marriott, a hotel in Charleston, West Virginia,250 Huron, an office building in Cleveland, Ohio, andRitz-Carlton, a hotel in Cleveland, Ohio. The 2010 gains related toSimi Valley Town Center, a regional mall in Simi Valley, California,Saddle Rock Village, a specialty retail center in Aurora, Colorado,101 San Fernando, an apartment community in San Jose, California, and an investment in a triple net lease retail property located in Pueblo, Colorado;

24

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

• $2,656,000 related to transaction costs expensed during 2010 that were incurred in connection with a potential partial disposition of certain rental properties that did not occur;

• $2,255,000 related to the 2011 gain on the sale of an annex building containing 8 units adjacent to ourDallas Wilson Building, an apartment building in Dallas, Texas; and

• $104,284,000 due to decreased income tax expense attributable to both continuing and discontinued operations primarily related to the fluctuations in earnings (loss) before income taxes and pre-tax earnings (loss) including gains included in discontinued operations. These fluctuations are primarily due to the various transactions discussed herein.

Net Operating Income (NOI) from Real Estate Groups– NOI, a non-GAAP measure, is defined as revenues (excluding straight-line rent adjustments) less operating expenses (including depreciation and amortization and amortization of mortgage procurement costs for non-real estate groups) plus interest income plus equity in earnings (loss) of unconsolidated entities (excluding gain on disposition and impairment of unconsolidated entities) plus interest expense, gain (loss) on early extinguishment of debt, depreciation and amortization of unconsolidated entities. We believe NOI provides us, as well as our investors, additional information about our core business operations and, along with earnings, is necessary to understand our business and operating results.

Full Consolidation – Under the full consolidation method (GAAP), NOI from the combination of the Commercial Group and the Residential Group (“Rental Properties”) for the three months ended January 31, 2012 was $161,725,000 compared to $176,008,000 for the three months ended January 31, 2011, a 8.1% decrease. NOI for the year ended January 31, 2012 was $715,107,000, remaining flat compared to $715,795,000 for the year ended January 31, 2011.

Pro-Rata Consolidation – Management also analyzes property NOI using the pro-rata consolidation method because it provides operating data at our ownership share, and we publicly disclose and discuss our performance using this method of consolidation to complement our GAAP disclosures. Under the pro-rata consolidation method, NOI from Rental Properties for the three months ended January 31, 2012 was $157,964,000 compared to $172,095,000 for the three months ended January 31, 2011, a 8.2% decrease. NOI for the year ended January 31, 2012 was $702,599,000 compared to $709,279,000 for the year ended January 31, 2011, a 0.9% decrease. The primary drivers of the fiscal year change were the NOI generated from the casino land sale within the Commercial Group of $42,622,000 offset by reduced NOI from our joint venture transactions.

Comparable NOI increased 4.5% for the three months ended January 31, 2012 compared to the prior year. Retail, office and our residential portfolio comparable NOI increased 4.7%, 0.5% and 11.9%, respectively, and hotel comparable NOI decreased 0.6%. Comparable NOI increased 1.4% for the year ended January 31, 2012 compared to the prior year. Retail, residential and hotel comparable NOI increased 2.6%, 7.3%, and 0.1%, respectively, while office comparable NOI decreased 2.6%.

Capital Expenditures for our Operating Portfolio –Our diversified real estate portfolio requires certain capital expenditures, including tenant improvements, to maintain and improve its operating performance. During the year ended January 31, 2012 we invested $80,152,000 at pro-rata consolidation ($51,799,000 at full consolidation) in capital expenditures for our operating portfolio as compared to $84,020,000 at pro-rata consolidation ($69,984,000 at full consolidation) during the year ended January 31, 2011.

25

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

EBDT –We use an additional measure, along with net earnings, to report our operating results. This non-GAAP measure, referred to as EBDT, is not a measure of operating results or cash flows from operations as defined by GAAP and may not be directly comparable to similarly-titled measures reported by other companies.

We believe that EBDT provides additional information about our core operations and, along with net earnings, is necessary to understand our operating results. EBDT is used by the chief operating decision maker and management in assessing operating performance and to consider capital requirements and allocation of resources by segment and on a consolidated basis. We believe EBDT is important to investors because it provides another method for the investor to measure our long-term operating performance as net earnings can vary from year to year due to property dispositions, acquisitions and other factors that have a short-term impact.

EBDT is defined as net earnings excluding the following items: i) gain (loss) on disposition of rental properties, divisions and other investments (net of tax); ii) the adjustment to recognize rental revenues and rental expense using the straight-line method; iii) non-cash charges for real estate depreciation, amortization, and amortization of mortgage procurement costs; iv) deferred income taxes; v) preferred payment which is classified as noncontrolling interest expense on our Consolidated Statement of Operations; vi) impairment of real estate (net of tax); vii) extraordinary items (net of tax); viii) cumulative or retrospective effect of change in accounting principle (net of tax); and ix) revisions of prior period financial statements.

We reconcile EBDT to net earnings (loss), the most comparable financial measure calculated in accordance with GAAP. 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 income taxes, which are the result of timing differences of certain income and expense items which are to be realized in a future year for federal income tax purposes, are excluded until the year in which they are reflected in our current tax provision. The impairment of real estate is excluded from EBDT because it varies from year to year based on factors unrelated to our overall financial performance and is related to the ultimate gain on dispositions of operating properties. Our EBDT may not be directly comparable to similarly-titled measures reported by other companies.

Effective during the year ended January 31, 2012, under the direction of the Company’s chief operating decision maker, EBDT which is provided in order to assess performance for the Real Estate Groups and The Nets was on a pre-tax basis. The Corporate Activity segment controls the tax strategies and evaluates results on a consolidated basis. As a result, beginning February 1, 2011, the Company no longer allocates income tax expense (benefit) to the Real Estate Groups or The Nets. In addition, based on the consolidated evaluation of income taxes, it was determined that EBDT would exclude all deferred income taxes instead of just those attributable to the Real Estate Groups.

Our EBDT for the three months ended January 31, 2012 increased by $15,676,000 or 36.3% to $58,825,000 from $43,149,000 for the three months ended January 31, 2011. The fluctuations in EBDT by Segment are as follows:

• Our Commercial and Residential Segments combined provided a pre-tax EBDT decrease of $14,351,000. This is primarily related to reduced EBDT from properties sold of $8,617,000, decreased income recognized from state and federal Historic Preservation and New Market tax credits of $7,826,000, decreased EBDT from the change in fair market value of derivatives between the comparable periods which were marked to market through interest expense of $4,706,000, reduced EBDT from new property openings of $3,037,000 primarily due to lease up losses atWestchester’s Ridge Hill andFoundry Loftspartially offset by the ramp up of other new property openings, decreased gains on early extinguishment of nonrecourse mortgage debt of $2,550,000, and increased operating expenses due to an unfavorable judgment from litigation atEasthaven at the Village arising from a building fire in 2007 of $2,400,000. These decreases in the portfolio were partially offset by decreased write-offs of abandoned development projects of $7,507,000, increased NOI on our mature portfolio of $6,459,000, and decreased interest expense on our mature portfolio of $5,427,000;

• Our Land Segment provided a pre-tax EBDT increase of $2,700,000, primarily due to an increase in sales activity from the previous comparable quarter;

• The Nets provided a pre-tax EBDT decrease of $11,533,000 due to the increase in our allocated losses;

• Corporate pre-tax EBDT increased $34,497,000 primarily due to the nonrecurring 2010 loss on early extinguishment of debt on the exchange of a portion of our Senior Notes for Class A common stock of $31,689,000; and

• EBDT was favorably impacted by a larger tax benefit of $4,363,000 compared to prior year.

26

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Our EBDT for the year ended January 31, 2012 increased by $24,509,000 or 7.9% to $334,384,000 from $309,875,000 for the year ended January 31, 2011. The fluctuations in EBDT by Segment are as follows:

• Our Commercial and Residential Segments combined provided a pre-tax EBDT increase of $26,320,000. This is primarily related to the 2011 sale of land and air rights to Rock Ohio of $42,622,000, increased gains on early extinguishment of nonrecourse mortgage debt of $11,483,000, decreased interest expense on our mature portfolio of $8,618,000, and increased NOI on our mature portfolio of $7,999,000. These increases in the portfolio were partially offset by reduced EBDT from properties sold of $27,057,000, reduced EBDT from new property openings of $5,138,000 primarily due to lease up losses at8 Spruce Street, Westchester’s Ridge Hill, Presidio Landmarkand Foundry Lofts and partially offset by the ramp up of other new property openings, and reduced EBDT from subsidized senior housing of $3,872,000 primarily due to the 2010 income from Housing and Urban Development (HUD) replacement reserve;

• Our Land Segment provided a pre-tax EBDT increase of $6,698,000, partially due to the 2011 gain on early extinguishment of nonrecourse mortgage debt of $1,926,000. The remaining EBDT increase of $4,772,000 was from an increase in sales activity from the previous comparable period;

• The Nets provided a pre-tax EBDT decrease of $46,176,000, primarily due to the nonrecurring 2010 gain on disposition of partial interest of $31,437,000. The remaining EBDT decrease is due to the increase in our allocated losses of $14,739,000;

• Corporate pre-tax EBDT increased $14,262,000. This pre-tax EBDT increase is primarily due to decreased losses on early extinguishment of debt on exchanges of portions of our Senior Notes of $12,696,000; and

• EBDT was favorably impacted by a larger tax benefit of $23,405,000 compared to prior year.

27

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

28

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

29

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

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

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

	Three Months Ended January 31,						Years Ended January 31,
	2012			2011			2012			2011
	(in thousands)						(in thousands)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(105,386	)	$	(1,833	)	$	(86,486	)	$	58,048
Depreciation and amortization – Real Estate Groups (4)		72,642			73,379			281,704			286,042
Amortization of mortgage procurement costs – Real Estate Groups(4)		3,571			3,617			14,670			14,341
Deferred income tax expense (benefit)(5)		(57,122	)		(3,490	)		(48,508	)		54,522
Remove non-Real Estate deferred taxes for 2010 only (5)		–			(5,282	)		–			(18,478	)
Current income tax expense (benefit) on non-operating earnings:(5)
Gain on disposition of rental properties and partial interest in rental properties		(935	)		5,532			38,244			41,409
Gain on disposition included in discontinued operations		8,948			5,000			11,740			4,902
Straight-line rent adjustment(2)		(4,213	)		(7,913	)		(7,208	)		(18,160	)
Preference payment(3)		(24	)		585			1,732			2,341
Impairment of consolidated real estate, net of noncontrolling interest		113,561			–			119,081			3,237
Impairment of unconsolidated real estate		40,897			35,714			82,186			72,459
Gain on disposition of rental properties and partial interest in rental properties		(2,255	)		–			(17,665	)		(202,878	)
Gain on disposition of unconsolidated entities		–			(15,633	)		(12,567	)		(23,461	)
Allowance for projects under development revision		1,000			–			(1,000	)		1,000
Discontinued operations:(1)
Gain on disposition of rental properties		(11,859	)		(46,527	)		(133,554	)		(51,303	)
Impairment of real estate		–			–			10,257			81,643
Noncontrolling interest – Gain on disposition		–			–			81,758			4,211
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT)	$	58,825		$	43,149		$	334,384		$	309,875
EBDT Per Share
Numerator(in thousands):
EBDT	$	58,825		$	43,149		$	334,384		$	309,875
If-Converted Method (Pro forma numerator adjustment for interest, net of tax):
3.625% Puttable Senior Notes due 2014		1,110			1,110			4,438			4,438
5% Convertible Senior Notes due 2016		382			1,521			1,867			6,113
4.25% Convertible Senior Notes due 2018		2,277			–			4,882			–
EBDT for per share data	$	62,594		$	45,780		$	345,571		$	320,426
Denominator
Weighted average shares outstanding – Basic		169,157,392			155,643,554			168,170,650			155,485,243
Effect of stock options and restricted stock		646,943			803,779			821,739			550,730
Effect of convertible preferred stock		14,550,257			14,550,257			14,550,257			13,115,165
Effect of convertible debt		33,499,503			28,047,083			26,838,208			28,111,373
Effect of convertible Class A Common Units		3,646,755			3,646,755			3,646,755			3,646,755
Weighted average shares outstanding – Diluted		221,500,850			202,691,428			214,027,609			200,909,266
EBDT Per Share	$	0.28		$	0.23		$	1.61		$	1.59

EBDT Per Share
Quarterly Historical Trends		Three Months Ended
	January 31, 2012		October 31, 2011		July 31, 2011		April 30, 2011		January 31, 2011
Numerator(in thousands):
EBDT	$	58,825	$	77,477	$	70,706	$	127,376	$	43,149
If-Converted Method (Pro forma numerator adjustment for interest, net of tax):
3.625% Puttable Senior Notes due 2014		1,110		1,110		1,110		1,110		1,110
5% Convertible Senior Notes due 2016		382		382		413		688		1,521
4.25% Convertible Senior Notes due 2018		2,277		2,277		329		–		–
EBDT for per share data	$	62,594	$	81,246	$	72,558	$	129,174	$	45,780
Denominator
Weighted average shares outstanding – Basic		169,157,392		169,150,429		168,788,754		165,498,904		155,643,554
Effect of stock options and restricted stock		646,943		566,701		1,019,210		1,054,102		803,779
Effect of convertible preferred stock		14,550,257		14,550,257		14,550,257		14,550,257		14,550,257
Effect of convertible debt		33,499,503		33,499,503		19,912,982		20,225,204		28,047,083
Effect of convertible Class A Common Units		3,646,755		3,646,755		3,646,755		3,646,755		3,646,755
Weighted average shares outstanding -Diluted		221,500,850		221,413,645		207,917,958		204,975,222		202,691,428
EBDT Per Share	$	0.28	$	0.37	$	0.35	$	0.63	$	0.23

30

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

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

(1) All earnings of properties which have been sold or are held for sale are reported as discontinued operations assuming no significant continuing involvement.

(2) The Company recognizes minimum rents on a straight-line basis over the term of the related lease pursuant to accounting for leases. The straight-line rent adjustment is recorded as an increase or decrease to revenue or operating expense, with the applicable offset to either accounts receivable or accounts payable.

(3) The preference payment represents the respective period’s share of the annual preferred payment in connection with the issuance of Class A Common Units in exchange for Bruce C. Ratner’s noncontrolling interest in the Forest City Ratner Companies portfolio.

(4) The following table provides detail of depreciation and amortization and amortization of mortgage procurement costs presented in thousands.

	Depreciation and Amortization												Amortization of Mortgage Procurement Costs
	Three Months Ended January 31,						Years Ended January 31,						Three Months Ended January 31,						Years Ended January 31,
	2012			2011			2012			2011			2012			2011			2012			2011
Full Consolidation	$	53,850		$	59,044		$	218,601		$	234,728		$	2,797		$	2,849		$	11,812		$	11,484
Non-Real Estate		(847	)		(1,091	)		(3,247	)		(5,028	)		–			–			–			–
Real Estate Groups Full Consolidation		53,003			57,953			215,354			229,700			2,797			2,849			11,812			11,484
Real Estate Groups related to noncontrolling interest		(707	)		(1,575	)		(4,659	)		(6,384	)		(86	)		(117	)		(513	)		(444	)
Real Estate Groups Unconsolidated		20,131			15,237			67,855			52,194			858			614			3,015			2,245
Real Estate Groups Discontinued Operations		215			1,764			3,154			10,532			2			271			356			1,056
Real Estate Groups Pro-Rata Consolidation	$	72,642		$	73,379		$	281,704		$	286,042		$	3,571		$	3,617		$	14,670		$	14,341

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

		0000000			0000000			0000000			0000000
	Three Months Ended January 31,						Years Ended January 31,
	2012			2011			2012			2011
	(in thousands)						(in thousands)
Current taxes
Operating earnings	$	(10,405	)	$	(10,576	)	$	(47,544	)	$	(40,807	)
Gain on disposition of rental properties and partial interest in rental properties		(935	)		5,532			38,244			41,409
Subtotal		(11,340	)		(5,044	)		(9,300	)		602
Discontinued operations
Operating earnings		46			(702	)		(601	)		(2,411	)
Gain on disposition of rental properties and partial interest in rental properties		8,948			5,000			11,740			4,902
Subtotal		8,994			4,298			11,139			2,491
Total Current taxes		(2,346	)		(746	)		1,839			3,093
Deferred taxes
Continuing operations		(52,839	)		(18,310	)		(55,044	)		69,524
Discontinued operations		(4,283	)		14,820			6,536			(15,002	)
Total Deferred taxes		(57,122	)		(3,490	)		(48,508	)		54,522
Grand Total	$	(59,468	)	$	(4,236	)	$	(46,669	)	$	57,615
2010 Recap of Grand Total:
Real Estate Groups
Current				$	2,629					$	23,593
Deferred					(8,772	)					36,044
					(6,143	)					59,637
Non-Real Estate Groups
Current					(3,375	)					(20,500	)
Deferred					5,282						18,478
					1,907						(2,022	)
Grand Total				$	(4,236	)				$	57,615

31

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Retail Lease Expirations as of January 31, 2012

EXPIRATION YEAR	NUMBER OF EXPIRING LEASES		SQUARE FEET OF EXPIRING LEASES(3)		PERCENTAGE OF TOTAL LEASED GLA (1)		NET BASE RENT EXPIRING(2)		PERCENTAGE OF TOTAL BASE RENT		AVERAGE BASE RENT PER SQUARE FEET EXPIRING(3)
2012		275		909,858		7.05  %	$	18,848,095		7.36  %	$	27.01
2013		343		1,254,649		9.73		26,797,228		10.47		26.94
2014		292		1,159,467		8.99		22,305,708		8.72		28.14
2015		208		836,163		6.48		18,776,849		7.34		29.59
2016		270		1,436,411		11.14		31,815,105		12.43		35.65
2017		163		1,151,190		8.93		22,727,546		8.88		26.49
2018		160		738,457		5.72		18,814,575		7.35		28.16
2019		121		1,056,906		8.20		20,306,946		7.94		25.13
2020		107		837,916		6.50		16,970,522		6.63		30.40
2021		130		1,323,344		10.26		26,225,658		10.25		30.15
Thereafter		74		2,192,356		17.00		32,334,403		12.63		20.65
Total		2,143		12,896,717		100.00  %	$	255,922,635		100.00  %	$	27.56

(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 our ownership share of the base rental income from expiring leases as determined within the rent agreement and it does not include adjustments such as the impact of straight-line rent, amortization of intangible assets related to in-place leases, above and below market leases, and contingent rental payments (which are not reasonably estimable).

(3) Square feet of expiring leases and average base rent per square feet are operating statistics that represent 100% of the square footage and base rental income per square foot from expiring leases.

32

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Office Lease Expirations as of January 31, 2012

EXPIRATION YEAR	NUMBER OF EXPIRING LEASES		SQUARE FEET OF EXPIRING LEASES(3)		PERCENTAGE OF TOTAL LEASED GLA (1)		NET BASE RENT EXPIRING (2)		PERCENTAGE OF TOTAL BASE RENT		AVERAGE BASE RENT PER SQUARE FEET EXPIRING(3)
2012		102		980,801		8.77  %	$	25,144,510		8.38  %	$	31.48
2013		95		1,136,706		10.17		25,084,388		8.36		22.73
2014		73		759,301		6.79		15,743,907		5.25		32.38
2015		44		461,184		4.13		8,850,686		2.95		22.16
2016		61		983,434		8.80		22,746,109		7.58		30.00
2017		29		464,444		4.15		11,097,049		3.70		25.66
2018		27		1,253,718		11.21		34,646,554		11.54		32.07
2019		25		896,768		8.02		16,013,570		5.34		25.11
2020		14		1,044,824		9.34		27,856,087		9.28		33.06
2021		11		663,981		5.94		10,389,551		3.46		20.42
Thereafter		35		2,535,635		22.68		102,502,355		34.16		42.08
Total		516		11,180,796		100.00  %	$	300,074,766		100.00%	$	31.34

(1) GLA = Gross Leasable Area.

(2) Net base rent expiring is an operating statistic and is not comparable to rental revenue, a GAAP financial measure. The primary differences arise because net base rent is determined using the tenant’s contractual rental agreements at our ownership share of the base rental income from expiring leases as determined within the rent agreement and it does not include adjustments such as the impact of straight-line rent, amortization of intangible assets related to in-place leases, above and below market leases, and contingent rental payments (which are not reasonably estimable).

(3) Square feet of expiring leases and average base rent per square feet are operating statistics that represent 100% of the square footage and base rental income per square foot from expiring leases.

33

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Significant Retail Tenants as of January 31, 2012

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

TENANT	NUMBER OF LEASES		LEASED SQUARE FEET		PERCENTAGE OF TOTAL RETAIL SQUARE FEET
Bass Pro Shops, Inc.		3		510,855		3.96  %
Regal Entertainment Group		5		381,461		2.96
AMC Entertainment, Inc.		5		377,797		2.93
TJX Companies		11		347,457		2.70
The Gap		27		344,944		2.67
Dick’s Sporting Goods		6		326,866		2.53
Best Buy		7		208,977		1.62
Abercrombie & Fitch Stores, Inc.		27		194,549		1.51
The Limited		31		192,602		1.49
H&M Hennes & Mauritz AB		8		141,507		1.10
Footlocker, Inc.		34		131,878		1.02
Forever 21, Inc.		8		112,661		0.87
American Eagle Outfitters, Inc.		15		85,972		0.67
Subtotal		187		3,357,526		26.03
All Others		1,956		9,539,191		73.97
Total		2,143		12,896,717		100.00  %

34

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Significant Office Tenants as of January 31, 2012

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

TENANT	LEASED SQUARE FEET		PERCENTAGE OF TOTAL OFFICE SQUARE FEET
City of New York		1,046,101		9.36  %
Millennium Pharmaceuticals, Inc.		698,066		6.24
U.S. Government		670,925		6.00
WellPoint, Inc.		392,514		3.51
JP Morgan Chase & Co.		383,341		3.43
Morgan Stanley & Co.		377,304		3.37
Forest City Enterprises, Inc.(1)		358,310		3.20
Bank of New York		323,043		2.89
National Grid		254,034		2.27
Clearbridge Advisors, LLC, a Legg Mason Company		193,249		1.73
Covington & Burling, LLP		160,565		1.44
Seyfarth Shaw, LLP		96,909		0.87
Subtotal		4,954,361		44.31
All Others		6,226,435		55.69
Total		11,180,796		100.00  %

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

35

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Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Openings and Acquisitions

as of January 31, 2012

Property	Location	Dev (D) Acq (A)		Date Opened / Acquired	FCE Legal Ownership % (a)			Pro-Rata FCE % (a) (1)			Cost at Full Consolidation (GAAP) (b)		Total Cost at 100% (2)		Cost at FCE Pro-Rata Share (Non-GAAP) (c) (1) X (2)		Sq. ft./ No. of Units			Gross Leasable Area		Lease Commitment %
2011 (3)												(in millions)
Retail Centers: (m)
Westchester’s Ridge Hill (e)	Yonkers, NY		D	Q2-11/12		70.0	%		100.0	%	$	868.2	$	868.2	$	868.2		1,336,000	(d)		1,336,000		59	%
Residential: (m)
8 Spruce Street (f) (g)	Manhattan, NY		D	Q1-11/12		35.7	%		51.0	%	$	0.0	$	875.7	$	446.6		899					73	%
Foundry Lofts	Washington, D.C.		D	Q4-11		100.0	%		100.0	%		61.4		61.4		61.4		170					79	%
											$	61.4	$	937.1	$	508.0		1,069
Total 2011 (h)											$	929.6	$	1,805.3	$	1,376.2
Prior Two Years Openings (7) as of January 31, 2012
Retail Centers:(i)
Village at Gulfstream Park (g) (j)	Hallandale Beach, FL		D	Q1-10		50.0	%		50.0	%	$	0.0	$	139.2	$	69.6		511,000			511,000		76	%
East River Plaza (g)	Manhattan, NY		D	Q4-09/Q2-10		35.0	%		50.0	%		0.0		390.6		195.3		527,000			527,000		94	%
Promenade in Temecula Expansion	Temecula, CA		D	Q1-09		75.0	%		100.0	%		113.4		113.4		113.4		127,000			127,000		91	%
											$	113.4	$	643.2	$	378.3		1,165,000			1,165,000
Office:
Waterfront Station
–East 4th & West 4th Bldgs (Sold Q2-11) (k)	Washington, D.C.		D	Q1-10		45.0	%		45.0	%	$	245.9	$	245.9	$	110.7		631,000					99	%
Residential: (i)
Presidio Landmark	San Francisco, CA		D	Q3-10		100.0	%		100.0	%	$	96.6	$	96.6	$	96.6		161					89	%
North Church Towers	Parma Heights, OH		A	Q3-09		100.0	%		100.0	%		5.2		5.2		5.2		399					92	%
DKLB BKLN (g)	Brooklyn, NY		D	Q4-09/Q2-10		40.8	%		51.0	%		0.0		160.0		81.6		365					99	%
											$	101.8	$	261.8	$	183.4		925
Total Prior Two Years Openings (l)											$	461.1	$	1,150.9	$	672.4
Recap of Total Prior Two Years Openings
Total 2010											$	342.5	$	872.3	$	472.2
Total 2009												118.6		278.6		200.2
Total Prior Two Years Openings (l)											$	461.1	$	1,150.9	$	672.4

See footnotes on the following pages.

36

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Projects Under Construction (6)

as of January 31, 2012

Property	Location	Anticipated Opening		FCE Legal Ownership % (a)				Pro-Rata FCE % (a) (1)				Cost at Full Consolidation (GAAP) (b)		Total Cost at 100% (2)		Cost at FCE Pro-Rata Share (Non-GAAP) (c) (1) X (2)		Sq. ft./ No. of Units		Gross Leasable Area			Lease Commitment %
													(in millions)
Retail Centers:(m)
The Yards-Boilermaker Shops	Washington, D.C.		Q3-12		100.0	%			100.0	%		$	19.2	$	19.2	$	19.2		40,000		40,000			74	%
Office:
Johns Hopkins Parking Garage	Baltimore, MD		Q3-12		85.0	%			100.0	%		$	30.1	$	30.1	$	30.1		492,000
Residential:
The Aster Town Center (formerly Novella)	Denver, CO		Q1-12		90.0	%			90.0	%		$	10.9	$	10.9	$	9.8		85
Botanica Eastbridge	Denver, CO		Q2-12		90.0	%			90.0	%			15.4		15.4		13.9		118
Continental Building	Dallas, TX		Q1-13		100.0	%			100.0	%			54.3		54.3		54.3		203
												$	80.6	$	80.6	$	78.0		406
Arena:
Barclays Center	Brooklyn, NY		Q3-12		34.0	%			34.0	%		$	904.3	$	904.3	$	307.5		670,000		18,000 seats	(o)		64	%(p)
Total Under Construction (n)												$	1,034.2	$	1,034.2	$	434.8
Fee Development Projects (2)
Las Vegas City Hall	Las Vegas, NV		Q1-12		-		(q)		-		(q)	$	0.0	$	146.2	$	0.0		270,000
Dept. of Health & Mental Hygiene (DHMH)	Baltimore, MD		Q2-14		-		(q)		-		(q)		0.0		135.0		0.0		234,000
												$	0.0	$	281.2	$	0.0		504,000

FOOTNOTES

(a) As is customary within the real estate industry, the Company invests in certain real estate projects through joint ventures. For some of these projects, the Company provides funding at percentages that differ from the Company’s legal ownership.

(b) Amounts are presented on the full consolidation method of accounting, a GAAP measure. Under full consolidation, costs are reported as consolidated at 100 percent if we are deemed to have control or to be the primary beneficiary of our investments in the variable interest entity (“VIE”).

(c) Cost at pro-rata share represents Forest City’s share of cost, based on the Company’s pro-rata ownership of each property (a non-GAAP measure). Under the pro-rata consolidation method of accounting the Company determines its pro-rata share by multiplying its pro-rata ownership by the total cost of the applicable property.

(d) Includes 156,000 square feet of office space.

(e) Phased-in opening. Costs are representative of the total project cost, including 432,000 square feet opened as of March 12, 2012. As of January 31, 2012, $270.0 million of costs incurred at pro-rata consolidation and $157.2 million of mortgage debt at pro-rata consolidation were transferred to completed rental properties. As of January 31, 2012, projects under construction include $567.9 million of costs incurred at pro-rata consolidation and $330.6 million of mortgage debt at pro-rata consolidation.

(f) Phased-in opening. Costs are representative of the total project cost, including 787 units opened as of March 12, 2012. As of January 31, 2012, $351.9 million of costs incurred at pro-rata consolidation and $218.2 million of mortgage debt at pro-rata consolidation were transferred to completed rental properties. As of January 31, 2012, projects under construction include $91.5 million of costs incurred at pro-rata consolidation and $56.7 million of mortgage debt at pro-rata consolidation. As of March 12, 2012, 655 leases have been signed, representing 73% of the total 899 units after construction is complete.

(g) 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.

(h) The difference between the full consolidation cost amount (GAAP) of $929.6 million to the Company’s pro-rata share (a non-GAAP measure) of $1,376.2 million consists of the addition of its share of cost for unconsolidated investments of $446.6 million.

37

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

FOOTNOTES (continued)

(i) The lease percentage represents occupancy as of March 12, 2012.

(j) Costs reflect the impairment charge of $35.0 million recorded during the three months ended January 31, 2011 and the additional impairment charge of $34.6 million recorded during the three months ended October 31, 2011.

(k) Property was sold on May 10, 2011 and was 99% leased at time of sale.

(l) The difference between the full consolidation cost amount (GAAP) of $461.1 million to the Company’s pro-rata share (a non-GAAP measure) of $672.4 million consists of a reduction to full consolidation for noncontrolling interest of $135.2 million of cost and the addition of its share of cost for unconsolidated investments of $346.5 million.

(m) Updated lease commitments as of March 12, 2012.

(n) The difference between the full consolidation cost amount (GAAP) of $1,034.2 million to the Company’s pro-rata share (a non-GAAP measure) of $434.8 million consists of a reduction to full consolidation for noncontrolling interest of $599.4 million of cost.

(o) The Nets, a member of the NBA, has a 37 year license agreement to use the arena.

(p) Represents the percentage of forecasted contractually obligated arena income that is under contract. Contractually obligated income, which includes revenue from naming rights, sponsorships, suite licenses, Nets minimum rent and food concession agreements, accounts for 72% of total forecasted revenues for the arena.

(q) These are fee development projects. Therefore, these costs are not included on the full consolidation or pro-rata balance sheet. In March 2012, the Las Vegas City Hall, which we developed for the City of Las Vegas on a fee basis as part of a public-private partnership, was completed.

Equity Requirements for Projects Under Construction^(a)

as of January 31, 2012

	100%		Less Unconsolidated Investments at 100%		Full Consolidation (GAAP)(b)		Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Pro-Rata Consolidation (Non-GAAP) (c)
	(dollars in millions)
Total Cost Under Construction	$	1,034.2	$	–	$	1,034.2	$	599.4	$	–	$	434.8
Total Loan Draws and Other Sources at Completion(d)		620.7		–		620.7		376.6		–		244.1
Net Equity at Completion		413.5		–		413.5		222.8		–		190.7
Net Costs Incurred to Date		657.0		–		657.0		392.7		–		264.3
Loan Draws and Other Sources to Date		272.0		–		272.0		169.9		–		102.1
Net Equity to Date		385.0		–		385.0		222.8		–		162.2
% of Total Equity		93%				93%						85%
Remaining Costs		377.2		–		377.2		206.7		–		170.5
Remaining Loan Draws and Other Sources		348.7		–		348.7		206.7		–		142.0
Remaining Equity	$	28.5	$	–	$	28.5	$	–	$	–	$	28.5
% of Total Equity		7%				7%						15%

(a) This schedule includes only the six projects under construction listed on the previous page. This does not include costs associated with phased-in units, operating property renovations and military housing.

(b) Amounts are presented on the full consolidation method of accounting, a GAAP measure. Under full consolidation, costs are reported as consolidated at 100 percent if we are deemed to have control or to be the primary beneficiary of our investments in the variable interest entity (“VIE”).

(c) Cost at pro-rata share represents Forest City’s share of cost, based on the Company’s pro-rata ownership of each property (a non-GAAP measure). Under the pro-rata consolidation method of accounting the Company determines its pro-rata share by multiplying its pro-rata ownership by the total cost of the applicable property.

(d) “Other Sources” includes estimates of third party subsidies and tax credit proceeds. The timing and the amounts may differ from our estimates.

38

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Projects Under Development

as of January 31, 2012

Below is a summary of our active large scale development projects, which have yet to commence construction, often referred to as our “shadow pipeline” which are crucial to our long-term growth. While we cannot make any assurances on the timing or delivery of these projects, our track record speaks to our ability to bring large, complex projects to fruition when there is demand and available construction financing. The projects listed below represent pro-rata costs of $769.0 million ($965.1 million at full consolidation) of Projects Under Development (“PUD”) on our balance sheet and pro-rata mortgage debt of $194.6 million ($260.6 million at full consolidation).

1)    Atlantic Yards –Brooklyn, NY

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

2)    LiveWork Las Vegas –Las Vegas, NV

LiveWork Las Vegas is a mixed-use project on a 13.5 acre parcel in downtown Las Vegas. At full build-out, the project will have the new 260,000 square-foot City Hall and is also expected to include up to 1 million square feet of office space and approximately 300,000 square feet of retail. The City Hall is owned by the city of Las Vegas which held its dedication ceremony on March 5, 2012.

3)    The Yards –Washington, D.C.

The Yards is a 42 acre mixed-use project, located in the neighborhood of the Washington Nationals baseball park in the Capitol Riverfront District. The full project is expected to include up to 2,700 residential units, 1.8 million square feet of office space, and 300,000 square feet of retail and dining space. The Yards features a 5.5 acre publicly funded public park that is a gathering place and recreational focus for the community. The first residential building, Foundry Lofts, opened in November 2011. Two restaurants in the building, Potbelly Sandwich and Kruba Thai & Sushi, are on track for spring 2012 openings.

4)    The Science + Technology Park at Johns Hopkins –Baltimore, MD

The 31 acre Science + Technology Park at Johns Hopkins is a new center for collaborative research directly adjacent to the world-renowned Johns Hopkins medical and research complex. Initial plans call for 1.1 million square feet in five buildings, with future phases that could support additional expansion. In 2008, the Company opened the first of those buildings, 855 North Wolfe Street, a 279,000 square-foot office building anchored by the Johns Hopkins School of Medicine’s Institute for Basic Biomedical Sciences. Construction of a 492,000 square-foot parking garage at 901 N. Washington Street is currently underway and will provide approximately 1,450 parking spaces for Johns Hopkins and the active buildings at the Science + Technology Park when it is completed in Q3-12. Construction of a second commercial building totaling 234,000 square-feet commenced in January 2012. The new building is being developed on a fee basis and will be fully leased to the Department of Health & Mental Hygiene (DHMH) when it is expected to open in Q2-14.

5)    Colorado Science + Technology Park at Fitzsimons –Aurora, CO

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

6)    Waterfront Station –Washington, D.C.

Located in Southwest Washington, D.C., Waterfront Station is adjacent to the Waterfront/Southeastern University MetroRail station. Waterfront Station is expected to include 660,000 square feet of office space, an estimated 400 residential units and 40,000 square feet of stores and restaurants.

7)    300 Massachusetts Avenue – Cambridge, MA

Located in the science and technology hub of Cambridge, MA, the 300 Massachusetts Avenue block represents an expansion of University Park @ MIT. In a 50/50 partnership with MIT, Forest City is presently focused on a project that reflects a development program of approximately 260,000 square feet of lab and office space. Potential redevelopment of the entire block is possible with the acquisition of adjacent parcels in future phases, and would result in an approximately 400,000 square foot project.

39

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Military Housing

as of January 31, 2012

Below is a summary of our Military Housing development projects. The Company provides development, construction and management services for these projects and receives agreed upon fees for these services. The following phases still have a percentage of units opened and under construction:

Property	Location	Opening/ Anticipated Opening		FCE Pro-Rata %	Cost at Full Consolidation		Total Cost at 100%		No. of Units
					(in millions)
Military Housing- Recent Openings (6)
Navy, Hawaii Increment III	Honolulu, HI		2007-Q1-11	*	$	0.0	$	443.1		2,520
Marines, Hawaii Increment II	Honolulu, HI		2007-Q2-11	*		0.0		289.1		1,175
Navy Midwest	Chicago, IL		2006-Q4-11	*		0.0		200.3		1,401
Air Force Academy	Colorado Springs, CO		2007-Q4-11	50.0%		0.0		69.5		427
Pacific Northwest Communities	Seattle, WA		2007-Q4-11	*		0.0		280.5		2,985
Midwest Millington	Memphis, TN		2008-Q4-11	*		0.0		33.1		318
Total Recent Openings					$	0.0	$	1,315.6		8,826
Military Housing -Under Construction (5)
Hawaii Phase IV	Kaneohe, HI		2007-2014	*	$	0.0	$	476.7		1,141
Air Force – Southern Group:
Keesler Air Force Base	Biloxi, MS		2011-2012	0.0%		0.0		5.0		1,188
Joint Base Charleston	Charleston, SC		2011-2013	0.0%		0.0		72.0		345
Arnold Air Force Base	Tullahoma, TN		2011-2013	0.0%		0.0		10.1		22
Shaw Air Force Base	Sumter, SC		2011-2015	0.0%		0.0		156.5		630
Subtotal Air Force – Southern Group					$	0.0	$	243.6		2,185
Total Under Construction					$	0.0	$	720.3		3,326

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

Commitment Executed

Air Force – Southern Group was awarded on August 30, 2010. This project is expected to include 2,185 end state units at four Air Force bases in Sumter, SC, Tullahoma, TN, Charleston, SC and Biloxi, MS. There are 330 financially excluded units that will not be encumbered by debt and which may be removed from the end state at the sole discretion of the Air Force. The financial closing of the project was executed on September 30, 2011 with property management and construction beginning on October 1, 2011.

Summary of Military Housing Net Operating Income (14,104 end-state units)

Development fees related to our military housing projects are earned based on a contractual percentage of the actual development costs incurred. We also recognize additional development incentive fees upon successful completion of certain criteria, such as incentives to realize development cost savings, encourage small and local business participation, comply with specified safety standards and other project management incentives as specified in the development agreements. NOI from development and development incentive fees was $1,390,000 and $5,615,000 for the three months and year ended January 31, 2012, respectively, and $746,000 and $5,883,000 for the three months and year ended January 31, 2011, respectively.

Construction management fees are earned based on a contractual percentage of the actual construction costs incurred. We also recognize certain construction incentive fees based upon successful completion of certain criteria as set forth in the construction contracts. NOI from construction and incentive fees was $1,221,000 and $4,158,000 for the three months and year ended January 31, 2012, respectively, and $880,000 and $5,634,000 recognized during the three months and year ended January 31, 2011, respectively.

Property management and asset management fees are earned based on a contractual percentage of the annual net rental income and annual operating income, respectively, that is generated by the military housing privatization projects as defined in the agreements. We also recognize certain property management incentive fees based upon successful completion of certain criteria as set forth in the property management agreements. Property management, management incentive and asset management fees generated NOI of $4,724,000 and $14,276,000 during the three months and year ended January 31, 2012, respectively, and $3,060,000 and $12,865,000 during the three months and year ended January 31, 2011, respectively.

40

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Land Held for Development and Sale

as of January 31, 2012

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

Location	Gross Acres (1)		Saleable Acres (2)		Option Acres (3)
Stapleton – Denver, CO		207		128		1,323
Central Station – Chicago, IL		30		30		–
Total		237		158		1,323

(1) Represent all acres currently owned including those used for roadways, open spaces and parks.

(2) Saleable acres represent the total of all acres owned and available for sales. The Land Development Group may choose to further develop some of the acres into completed sublots prior to sale.

(3) Option acres are those acres that the Land Development Group has a formal option to acquire. Typically these options are in the form of purchase agreements with contingencies for the satisfaction of due diligence reviews.

Stapleton –Denver, CO

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

Central Station –Chicago, IL

Located adjacent to the city’s Museum Campus, and just minutes from the heart of Chicago’s Loop, the 80 acre Central Station is a residential community with 3,727 residential units completed, of which 3,156 are occupied and 571 units are listed for sale, and another 4,000 units in development. Central Station, a 14 million-square-foot development, is being developed in partnership with The Fogelson Companies.

41

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Land Held for Divestiture

as of January 31, 2012

As of January 31, 2012, our Board of Directors approved a strategic decision by our senior management to reposition or divest portions of our Land Development Group and are actively reviewing alternatives to do so. Below is a summary of land projects that are considered held for divestiture at January 31, 2012.

Location	Gross Acres		Saleable Acres		Option Acres
Mesa del Sol - Albuquerque, NM		3,011		1,647		5,731
Texas		2,720		1,480		–
North Carolina		1,220		996		–
Ohio		952		641		200
Arizona		657		483		–
Other		878		691		–
Total		9,438		5,938		5,931

Mesa del Sol –Albuquerque, NM

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

Three Stones – Prosper, TX

Three Stones is a master-planned community of 2,031 acres located in the growth corridor north of Dallas in the town of Prosper. The community is fully entitled and the plan includes approximately 3,090 single family lots, 600 units of attached housing, over 600 acres of parks and open space and 250 acres for commercial/retail use. A variety of single family lot sizes will be offered, as well as a complete amenity center. The development of Phase 1 is expected to be completed in late 2013.

San Antonio Portfolio– San Antonio, TX

Forest City owns four multi-phase communities and finished lots in three additional locations in the San Antonio area, predominantly on the west side. As of January 31, 2012, over 1,300 of the total 2,563 lots have been sold. The remaining portfolio is comprised of 356 finished lots and 870 undeveloped “paper” lots. Our San Antonio communities serve several different price ranges, and all lots are under option contract to one of five different builders.

Legacy Lakes –Aberdeen, NC

Legacy Lakes is a master-planned community located in the Pinehurst area. This community is surrounding the Nicklaus-designed Legacy Golf Course. Legacy Lakes is 406 acres and includes 718 residential lots. Of the 406 total acres, 265 are saleable acres and 20 acres have been sold to date.

Timberlake– Oak Point (Dallas), TX

Timberlake is a planned community of approximately 250 acres located in Denton County, north of Dallas. Forest City entered into this project earlier in 2011 through the formation of a new partnership with Taylor Duncan Interests, Inc. with Forest City providing capital for financing and development. The project is zoned for over 800 single family lots, and development of Phase 1 is expected to begin in 2012.

Tangerine Crossing –Tucson, AZ

Tangerine Crossing is a master-planned gated residential community with a major retail component on the exterior in a desirable region of the Tucson metropolitan area. This community includes open space, trails and recreation. Tangerine Crossing is 309 acres and includes 396 residential lots and a 25 acre retail center. As of January 31, 2012, 250 lots and the 25 commercial acres have been sold. Of the 309 total acres, 98 are saleable acres and 73 acres have been sold to date.

42

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Common Stock Data (NYSE: FCE A and FCE B)

The following summarizes information related to the Company’s Class A and Class B Common Stock based on information reported by the New York Stock Exchange:

	Quarter Ended
	January 31, 2012		October 31, 2011		July 31, 2011		April 30, 2011		January 31, 2011
Class A Common Stock
Closing Price, end of quarter	$	13.13	$	13.68	$	18.01	$	19.21	$	16.91
High Closing Price	$	14.00	$	17.82	$	19.24	$	19.26	$	16.98
Low Closing Price	$	10.88	$	9.76	$	17.78	$	17.30	$	14.78
Average Closing Price	$	12.32	$	12.72	$	18.55	$	18.48	$	15.98
Total Volume		56,114,430		101,588,513		60,938,097		49,003,190		47,217,359
Average Volume		905,071		1,562,900		967,271		790,374		749,482
Common shares outstanding, end of quarter		148,227,849		148,192,446		148,162,038		144,653,100		144,230,310
Class B Common Stock
Closing Price, end of quarter	$	13.17	$	13.57	$	17.90	$	18.99	$	16.77
High Closing Price	$	13.92	$	17.77	$	19.17	$	19.26	$	16.95
Low Closing Price	$	10.85	$	9.78	$	17.66	$	17.27	$	14.70
Average Closing Price	$	12.50	$	12.71	$	18.50	$	18.52	$	16.02
Total Volume		75,255		46,562		58,335		38,821		41,554
Average Volume		1,636		776		1,423		776		866
Common shares outstanding, end of quarter		20,934,335		20,964,181		20,987,364		21,006,188		21,218,753
Common Equity Market Capitalization	$	2,221,936,849	$	2,311,756,597	$	3,044,072,120	$	3,177,693,561	$	2,794,773,030
Quarterly dividends declared per common share Class A and Class B	$	–	$	–	$	–	$	–	$	–

Financial Covenants

The Company’s Credit Facility and indenture dated May 19, 2003 (“2003 Indenture”) contain certain restrictive financial covenants. A summary of the key financial covenants as defined in each agreement, all of which the Company is compliant with at January 31, 2012, follows:

	Requirement   Per Agreement		As of   January 31, 2012		As of October 31, 2011		As of July 31, 2011		As of April 30, 2011
					(dollars in thousands)
Credit Facility Financial Covenants
Debt Service Coverage Ratio		1.35x		1.93x		1.92x		1.95x		1.92x
Cash Flow Coverage Ratio		2.50x		3.86x		3.94x		4.37x		4.32x
Total Development Ratio		<17%		10.64%		11.59%		10.99%		9.89%
Minimum Consolidated Shareholders’ Equity, as defined	$	2,320,175	$	3,505,097	$	3,584,782	$	3,586,466	$	3,490,034
2003 Indenture Financial Covenants(1)
Ratio of Consolidated EBITDA to Interest		>1.30x		1.82x		1.84x		1.95x		1.97x
Minimum Net Worth, as defined(2)	$	999,434	$	4,061,179	$	4,105,717	$	4,100,853	$	4,003,711

(1) Violation of these financial covenants alone would not automatically cause the notes issued under the 2003 Indenture to become due and payable, but would prevent the Company from incurring or permitting a subsidiary from incurring additional debt, as defined in the 2003 Indenture, unless otherwise permitted by the 2003 Indenture.

(2) Represents the minimum net worth, as defined requirement at January 31, 2012. This requirement fluctuates each quarter based on actual financial results of each applicable period.

43

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Debt for Projects under Construction and Development

We use nonrecourse mortgage debt and nonrecourse notes payable for the financing of our projects under construction and development. We draw on these financings to partially fund the cost incurred with the development of our real estate. As of January 31, 2012, the amounts outstanding compared to the total commitment under the financings are as follows:

	Full Consolidation (GAAP)		Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Outstanding
Fixed	$	406,619	$	173,175	$	887	$	234,331
Variable
Taxable		409,733		20,537		37,274		426,470
Tax-Exempt		–		–		21,463		21,463
Total outstanding on projects under construction and development(1)	$	816,352	$	193,712	$	59,624	$	682,264
Commitment
Fixed	$	834,412	$	401,747	$	887	$	433,552
Variable
Taxable		503,769		22,326		37,274		518,717
Tax-Exempt		–		–		21,463		21,463
Total commitment	$	1,338,181	$	424,073	$	59,624	$	973,732

(1) Proceeds from outstanding debt of $1,646 and $15,703, at full and pro-rata consolidation, respectively, described above is recorded as restricted cash and escrowed funds in our Consolidated Balance Sheet. For bonds issued in conjunction with development, the full amount of the bonds is issued at the beginning of construction and must remain in escrow until costs are incurred.

Nonrecourse Debt

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

We use taxable and tax-exempt nonrecourse debt for our real estate projects. For 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. For those real estate projects financed with taxable debt, we generally seek long-term, fixed-rate financing for those operating projects whose loans mature or are projected to open and achieve stabilized operations. The availability of nonrecourse mortgage capital is improving, especially in strong markets, but is still not at the levels before the economic downturn. For those assets that cannot be refinanced at attractive terms, we attempt to extend the maturities with existing lenders.

We are actively working to refinance and/or extend the maturities of the nonrecourse debt that are coming due in the next 24 months. During the year ended January 31, 2012, we completed the following financings:

					Plus
			Less		Unconsolidated
	Full		Noncontrolling		Investments at		Pro-Rata
Purpose of Financing	Consolidation		Interest		Pro-Rata		Consolidation
	(in thousands)
Refinancings	$	339,154	$	11,675	$	160,391	$	487,870
Construction and development projects (1)		347,237		68,664		–		278,573
Loan extensions/additional fundings		535,411		67,223		442,620		910,808
	$	1,221,802	$	147,562	$	603,011	$	1,677,251

(1) Represents the full amount available to be drawn on the loans.

44

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Debt(dollars in thousands)

As of January 31, 2012

		000000.00			000000.00			000000.00			000000.00			000000.00			000000.00			000000.00			000000.00
	Period Ending January 31, 2013												Fiscal Year Ending January 31, 2014
							Plus												Plus
				Less			Unconsolidated									Less			Unconsolidated
	Full			Noncontrolling			Investments at			Pro-Rata			Full			Noncontrolling			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	294,235		$	17,567		$	79,934		$	356,602		$	602,745		$	75,780		$	142,279		$	669,244
Weighted average rate		5.96	%		7.04	%		6.33	%		5.99	%		6.46	%		9.92	%		6.33	%		6.04	%
Variable:
Variable-rate debt		1,039,618			13,300			100,521			1,126,839			93,969			9,069			50,809			135,709
Weighted average rate		3.53	%		8.18	%		3.94	%		3.51	%		6.59	%		8.63	%		3.16	%		5.17	%
Tax-Exempt		237			24			27,204			27,417			91,055			26			53,040			144,069
Weighted average rate		1.58			1.56	%		1.96	%		1.96	%		2.56	%		1.55	%		2.92	%		2.69	%
Total variable-rate debt		1,039,855			13,324			127,725			1,154,256			185,024			9,095			103,849			279,778
Total Nonrecourse Debt	$	1,334,090		$	30,891		$	207,659		$	1,510,858		$	787,769		$	84,875		$	246,128		$	949,022
Weighted Average Rate		4.06	%		7.53	%		4.60	%		4.07	%		6.02	%		9.78	%		4.94	%		5.41	%
	Fiscal Year Ending January 31, 2015												Fiscal Year Ending January 31, 2016
							Plus												Plus
				Less			Unconsolidated									Less			Unconsolidated
	Full			Noncontrolling			Investments at			Pro-Rata			Full			Noncontrolling			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	291,315		$	34,076		$	242,491		$	499,730		$	346,320		$	29,223		$	122,383		$	439,480
Weighted average rate		6.04	%		5.93	%		5.52	%		5.80	%		5.57	%		5.83	%		5.31	%		5.48	%
Variable:
Variable-rate debt		24,607			–			30,489			55,096			–			–			31,583			31,583
Weighted average rate		3.85	%		–	%		4.27	%		4.08	%		–	%		–	%		2.04	%		2.04	%
Tax-Exempt		272			27			–			245			290			29			–			261
Weighted average rate		1.58	%		1.59	%		–	%		1.58	%		1.58	%		1.58	%		–	%		1.58	%
Total variable-rate debt		24,879			27			30,489			55,341			290			29			31,583			31,844
Total Nonrecourse Debt	$	316,194		$	34,103		$	272,980		$	555,071		$	346,610		$	29,252		$	153,966		$	471,324
Weighted Average Rate		5.87	%		5.93	%		5.38	%		5.62	%		5.57	%		5.83	%		4.64	%		5.25	%

45

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Debt(dollars in thousands) (continued)

As of January 31, 2012

	Fiscal Year Ending January 31, 2017												Thereafter
							Plus												Plus
				Less			Unconsolidated									Less			Unconsolidated
	Full			Noncontrolling			Investments at			Pro-Rata			Full			Noncontrolling			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	420,637		$	6,583		$	89,598		$	503,652		$	1,464,433		$	162,484		$	796,610		$	2,098,559
Weighted average rate		5.75	%		6.01	%		6.48	%		5.88	%		5.16	%		5.88	%		5.61	%		5.27	%
Variable:
Variable-rate debt		–			–			183,037			183,037			644,435			2,785			112,213			753,863
Weighted average rate		–	%		–	%		2.38	%		2.38	%		6.52	%		3.25	%		3.97	%		6.15	%
Tax-Exempt		309			31			103,989			104,267			345,046			5,278			140,285			480,053
Weighted average rate		1.58	%		1.57	%		2.33	%		2.33	%		1.29	%		0.98	%		1.50	%		1.35	%
Total variable-rate debt		309			31			287,026			287,304			989,481			8,063			252,498			1,233,916
Total Nonrecourse Debt	$	420,946		$	6,614		$	376,624		$	790,956		$	2,453,914		$	170,547		$	1,049,108		$	3,332,475
Weighted Average Rate		5.75	%		5.99	%		3.34	%		4.60	%		4.97	%		5.69	%		4.88	%		4.91	%
	Total
	Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation
Fixed:
Fixed-rate debt	$	3,419,685		$	325,713		$	1,473,295		$	4,567,267
Weighted average rate		5.65	%		6.89	%		5.73 %			5.59 %
Variable:
Variable-rate debt		1,802,629			25,154			508,652			2,286,127
Weighted average rate		4.76	%		7.80	%		3.21	%		4.38	%
Tax-Exempt		437,209			5,415			324,518			756,312
Weighted average rate		1.55	%		1.00	%		2.04	%		1.76	%
Total variable-rate debt		2,239,838			30,569			833,170			3,042,439
Total Nonrecourse Debt	$	5,659,523		$	356,282		$	2,306,465		$	7,609,706
Weighted Average Rate		5.05	%		6.86	%		4.65	%		4.84	%

46

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Investments in Unconsolidated Entities

Investments in unconsolidated entities include investments in and advances to unconsolidated entities and cash distributions and losses in excess of investments in unconsolidated entities that the Company does not control and/or is not deemed to be the primary beneficiary, which are accounted for under the equity method of accounting.

The following is a reconciliation of members’ and partners’ equity to the Company’s carrying value:

	January 31, 2012			January 31, 2011
	(in thousands)
Members’ and partners’ equity, as below	$	945,129		$	587,164
Equity of other members and partners		790,618			616,640
Company’s investment in partnerships		154,511			(29,476	)
Basis differences		79,913			76,634
Advances to and on behalf of affiliates		94,947			93,859
Total Investments in Unconsolidated Entities	$	329,371		$	141,017
Assets-Investments in and advances to unconsolidated entities	$	609,079		$	431,509
Liabilities-Cash distributions and losses in excess of investments in unconsolidated entities		(279,708	)		(290,492	)
Total Investments in Unconsolidated Entities	$	329,371		$	141,017

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

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
	January 31, 2012			January 31, 2011			January 31, 2012			January 31, 2011
	(in thousands)
Balance Sheet:
Real Estate
Completed rental properties	$	7,287,539		$	5,514,041		$	2,820,111		$	1,923,813
Projects under construction and development		287,738			174,106			136,495			79,603
Land held for development and sale(1)		224,224			272,930			24,851			115,607
Total Real Estate		7,799,501			5,961,077			2,981,457			2,119,023
Less accumulated depreciation		(1,257,091	)		(944,968	)		(557,613	)		(424,331	)
Real Estate, net		6,542,410			5,016,109			2,423,844			1,694,692
Cash and equivalents		149,702			109,246			60,689			48,583
Restricted cash–military housing bond funds		284,641			384,584			5,588			5,161
Other restricted cash and escrowed funds		274,201			206,778			103,694			73,729
Other assets		756,564			536,246			126,980			131,486
Land held for divestiture(3)		–			–			45,257			–
Operating property assets held for sale(4)		–			67,190			–			–
Total Assets	$	8,007,518		$	6,320,153		$	2,766,052		$	1,953,651
Mortgage debt and notes payable, nonrecourse(2)	$	6,551,891		$	5,301,900		$	2,294,239		$	1,713,367
Other liabilities		510,498			369,871			198,920			124,908
Mortgage debt and notes payable, nonrecourse on land held for divestiture(3)		–			–			12,226			–
Liabilities of operating property held for sale(4)		–			61,218			–			–
Members’ and partners’ equity		945,129			587,164			260,667			115,376
Total Liabilities and Members’ and Partners’ Equity	$	8,007,518		$	6,320,153		$	2,766,052		$	1,953,651

(1) The combined (100%) amount at January 31, 2012 includes $181,749 of land held by unconsolidated entities in which the Company is currently reviewing its options to divest its portion of land held by these unconsolidated entities.

(2) The combined (100%) amount at January 31, 2012 includes $35,551 of mortgage debt and notes payable, nonrecourse related to the land held by the unconsolidated entities discussed in footnote (1).

(3) Represents our portion of land held and related mortgage debt and notes payable, nonrecourse of our land group which qualifies to be reclassified as held for sale as of January 31, 2012.

(4) Represents assets and liabilities ofMetropolitan Lofts, an unconsolidated apartment community in Los Angeles, California, which was disposed on February 1, 2011.

47

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Investments in Unconsolidated Entities (continued)

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Years Ended January 31,	2012			2011			2012			2011
	(in thousands)
Operations:
Revenues	$	1,051,766		$	916,942		$	385,521		$	316,900
Equity in earnings (loss) of unconsolidated entities on a pro-rata basis		–			–			(26,309	)		(6,074	)
Operating expenses		(573,060	)		(529,975	)		(179,242	)		(169,265	)
Interest expense including early extinguishment of debt		(323,667	)		(264,548	)		(101,324	)		(78,424	)
Impairment of real estate(1)		–			(1,457	)		–			(743	)
Depreciation and amortization		(203,319	)		(167,731	)		(70,870	)		(55,386	)
Interest and other income		14,757			15,782			989			15,666
Noncontrolling interest		–			–			(185	)		(4,613	)
Earnings (loss) from continuing operations	$	(33,523	)	$	(30,987	)	$	8,580		$	18,061
Discontinued operations:
Operating loss from rental properties		–			1,842			–			–
Gain on disposition of rental properties(2)		–			28,289			–			24,291
Discontinued operations subtotal		–			30,131			–			24,291
Net earnings (loss) (pre-tax)		(33,523	)		(856	)		8,580			42,352
Impairment of investments in unconsolidated entities(1)		(82,186	)		(71,716	)		(82,186	)		(71,716	)
Gain (loss) on disposition of equity method investments(2)		12,567			(830	)		12,567			(830	)
Net earnings (loss) (pre-tax) from unconsolidated entities	$	(103,142	)	$	(73,402	)	$	(61,039	)	$	(30,194	)

(1) The following tables show the detail of impairment of unconsolidated entities:

		Combined (100%)				Pro-Rata Share
		(GAAP)				(Non-GAAP)
		Years Ended January 31,
		2012		2011		2012		2011
		(in thousands)
Impairment of real estate:
Old Stone Crossing at Caldwell Creek (Mixed-Use Land Development)	Charlotte, North Carolina	$	–	$	1,457	$	–	$	743
Total impairment of real estate		$	–	$	1,457	$	–	$	743
Impairment of investments in unconsolidated entities:
Equity method investments in land entities	Various	$	41,902	$	–	$	41,902	$	–
Specialty Retail Centers:
Village at Gulfstream Park	Hallandale Beach, Florida		35,674		35,000		35,674		35,000
Metreon	San Francisco, California		–		4,595		–		4,595
Commercial development property	Cleveland, Ohio		4,610		–		4,610		–
Four Museum Park properties at Central Station	Chicago, Illinois		–		18,311		–		18,311
Office Buildings:
818 Mission Street	San Francisco, California		–		4,018		–		4,018
Bulletin Building	San Francisco, California		–		3,543		–		3,543
Other			–		6,249		–		6,249
Total impairment of investments in unconsolidated entities		$	82,186	$	71,716	$	82,186	$	71,716
Total impairment of unconsolidated entities		$	82,186	$	73,173	$	82,186	$	72,459

48

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Investments in Unconsolidated Entities (continued)

(2) Upon disposition, investments accounted for on the equity method are not classified as discontinued operations; therefore, gains or losses on the disposition of these properties are reported in continuing operations. The following table shows the detail of gains and losses on disposition of unconsolidated entities:

		Combined (100%)					Pro-Rata Share
		(GAAP)					(Non-GAAP)
		Years Ended January 31,
		2012		2011			2012		2011
			(in thousands)
Gain (loss) on disposition of rental properties:
Millender Center (hotel, parking, office and retail)	Detroit, Michigan	$	–	$	17,291		$	–	$	15,633
Woodbridge Crossing (Specialty Retail Centers)	Woodbridge, New Jersey		–		6,443			–		6,443
Pebble Creek (Apartment Communities)	Twinsburg, Ohio		–		4,555			–		2,215
Total loss on disposition of equity method investments		$	–	$	28,289		$	–	$	24,291
Gain (loss) on disposition of equity method investments:
Apartment Communities:
Metropolitan Lofts	Los Angeles, California		9,964		–			9,964		–
Twin Lake Towers	Denver, Colorado		2,603		–			2,603		–
Other			–		(830	)		–		(830	)
Gain (loss) on disposition of equity method investments		$	12,567	$	(830	)	$	12,567	$	(830	)

49

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Rental Properties Corporation (“FCRPC”) is a wholly-owned subsidiary of Forest City Enterprises, Inc. engaged in the ownership, development, management and acquisition of real estate projects, including regional malls, specialty/urban retail centers, office and life science buildings, hotels, mixed-use projects, as well as large land development projects, residential rental properties, development of for-sale condominium projects and also owns interests in entities that develop and manage military family housing.

Forest City Rental Properties Corporation and Subsidiaries

Consolidated Balance Sheet Information – January 31, 2012 (Unaudited)

	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties	$	7,173,056		$	195,325		$	2,820,111		$	9,797,842
Projects under construction and development		2,328,979			568,157			136,495			1,897,317
Land held for development and sale		77,298			7,451			24,851			94,698
Total Real Estate		9,579,333			770,933			2,981,457			11,789,857
Less accumulated depreciation		(1,518,427	)		(46,085	)		(557,613	)		(2,029,955	)
Real Estate, net		8,060,906			724,848			2,423,844			9,759,902
Cash and equivalents		137,619			9,286			56,400			184,733
Restricted cash and escrowed funds		541,487			97,978			109,271			552,780
Notes and accounts receivable, net		379,301			17,646			36,644			398,299
Investments in and advances to unconsolidated entities		574,889			(163,374	)		(522,480	)		215,783
Other assets		549,625			43,389			90,265			596,501
Land held for divestiture		3,618			–			22,645			26,263
Total Assets	$	10,247,445		$	729,773		$	2,216,589		$	11,734,261
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt and notes payable, nonrecourse	$	5,640,439		$	354,561		$	2,294,239		$	7,580,117
Bank revolving credit facility		–			–			–			–
Accounts payable, accrued expenses and other liabilities		978,454			89,372			194,268			1,083,350
Accounts payable to Forest City Enterprises, Inc.		578,344			(337	)		–			578,681
Cash distributions and losses in excess of investments in unconsolidated entities		279,708			(24,803	)		(282,105	)		22,406
Deferred income taxes		533,432			–			–			533,432
Mortgage debt and notes payable, nonrecourse on land held for divestiture		–			–			10,187			10,187
Total Liabilities		8,010,377			418,793			2,216,589			9,808,173
Redeemable Noncontrolling Interest		229,149			229,149			–			–
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss		1,853,891			–			–			1,853,891
Accumulated other comprehensive loss		(113,824	)		–			–			(113,824	)
Total Shareholders’ Equity		1,740,067			–			–			1,740,067
Noncontrolling interest		267,852			81,831			–			186,021
Total Equity		2,007,919			81,831			–			1,926,088
Total Liabilities and Equity	$	10,247,445		$	729,773		$	2,216,589		$	11,734,261

50

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Rental Properties Corporation and Subsidiaries

Consolidated Earnings Information – Year Ended January 31, 2012 (Unaudited)

							Plus
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	1,080,532		$	56,108		$	374,742		$	23,173		$	1,422,339
Expenses
Operating expenses		597,334			38,617			171,025			18,074			747,816
Depreciation and amortization		216,973			4,659			67,830			3,154			283,298
Impairment of real estate		3,670			–			71,720			10,257			85,647
		817,977			43,276			310,575			31,485			1,116,761
Interest expense		(253,551	)		(11,439	)		(100,725	)		(2,123	)		(344,960	)
Amortization of mortgage procurement costs		(11,658	)		(513	)		(2,935	)		(356	)		(14,436	)
Gain (loss) on early extinguishment of debt		20,390			1,641			(2,292	)		–			16,457
Interest and other income		49,035			1,293			1,055			2			48,799
Net gain on disposition of full or partial interests in rental properties		17,665			–			12,567			51,796			82,028
Earnings (loss) before income taxes		84,436			3,814			(28,163	)		41,007			93,466
Income tax expense (benefit)
Current		17,118			–			–			11,139			28,257
Deferred		(11,233	)		–			–			6,536			(4,697	)
		5,885			–			–			17,675			23,560
Equity in earnings (loss) of unconsolidated entities, including impairment		(54,477	)		(185	)		28,163			–			(26,129	)
Earnings from continuing operations		24,074			3,629			–			23,332			43,777
Discontinued operations, net of tax:
Operating earnings from rental properties		992			1,424			–			432			–
Impairment of real estate		(6,279	)		–			–			6,279			–
Gain on disposition of rental properties		111,801			81,758			–			(30,043	)		–
		106,514			83,182			–			(23,332	)		–
Net earnings		130,588			86,811			–			–			43,777
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(3,629	)		(3,629	)		–			–			–
Earnings from discontinued operations attributable to noncontrolling interests		(83,182	)		(83,182	)		–			–			–
		(86,811	)		(86,811	)		–			–			–
Net earnings attributable to Forest City Enterprises, Inc.	$	43,777		$	–		$	–		$	–		$	43,777

51

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2012(in thousands)

	Commercial Group 2011															Residential Group 2011
							Plus															Plus
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	185,306		$	7,758		$	59,849		$	2,481		$	239,878		$	75,595		$	8,145		$	41,654		$	–	$	109,104
Exclude straight-line rent adjustment		(5,408	)		–			–			–			(5,408	)		100			–			–			–		100
Adjusted revenues		179,898			7,758			59,849			2,481			234,470			75,695			8,145			41,654			–		109,204
Add interest and other income		2,691			117			47			(1	)		2,620			4,454			115			295			–		4,634
Add equity in earnings (loss) of unconsolidated entities, including impairment		5,131			–			(5,131	)		–			–			1,820			(413	)		(1,918	)		–		315
Exclude impairment of unconsolidated real estate		1,095			–			(1,095	)		–			–			–			–			–			–		–
Exclude depreciation and amortization of unconsolidated entities		11,568			–			(11,568	)		–			–			9,357			–			(9,357	)		–		–
Exclude interest expense of unconsolidated entities		16,652			–			(16,652	)		–			–			9,774			–			(9,774	)		–		–
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		1			–			(1	)		–			–			(115	)		–			115			–		–
Adjusted total income		217,036			7,875			25,449			2,480			237,090			100,985			7,847			21,015			–		114,153
Operating expenses		101,511			5,303			25,449			2,828			124,485			55,432			7,006			21,015			–		69,441
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		271			–			–			–			271			153			–			–			–		153
Exclude straight-line rent adjustment		(1,095	)		–			–			–			(1,095	)		–			–			–			–		–
Exclude preference payment		24			–			–			–			24			–			–			–			–		–
Adjusted operating expenses		100,711			5,303			25,449			2,828			123,685			55,585			7,006			21,015			–		69,594
Net operating income		116,325			2,572			–			(348	)		113,405			45,400			841			–			–		44,559
Interest expense		41,830			2,328			16,652			106			56,260			6,677			332			9,774			–		16,119
Interest expense of unconsolidated entities		16,652			–			(16,652	)		–			–			9,774			–			(9,774	)		–		–
(Gain) loss on early extinguishment of debt		(900	)		(134	)		1			–			(765	)		644			–			(115	)		–		529
(Gain) loss on early extinguishment of debt of unconsolidated entities		1			–			(1	)		–			–			(115	)		–			115			–		–
Noncontrolling interest in earnings before depreciation and amortization		378			378			–			–			–			509			509			–			–		–
Allowance for projects under development revision		700			–			–			–			700			300			–			–			–		300
Add: Pre-Tax EBDT from discontinued operations		(454	)		–			–			454			–			–			–			–			–		–
Pre-Tax EBDT		58,610			–			–			–			58,610			28,211			–			–			–		28,211
Income tax expense (benefit)		–			–			–			–			–			–			–			–			–		–
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	58,610		$	–		$	–		$	–		$	58,610		$	28,211		$	–		$	–		$	–	$	28,211
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	58,610		$	–		$	–		$	–		$	58,610		$	28,211		$	–		$	–		$	–	$	28,211
Depreciation and amortization-Real Estate Groups		(50,496	)		–			–			(215	)		(50,711	)		(21,876	)		–			–			–		(21,876	)
Amortization of mortgage procurement costs-Real Estate Groups		(2,699	)		–			–			(2	)		(2,701	)		(785	)		–			–			–		(785	)
Straight-line rent adjustment		4,313			–			–			–			4,313			(100	)		–			–			–		(100	)
Preference payment		24			–			–			–			24			–			–			–			–		–
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		–			–			–			11,859			11,859			2,255			–			–			–		2,255
Impairment of consolidated and unconsolidated real estate		–			–			(1,095	)		–			(1,095	)		–			–			–			–		–
Impairment of unconsolidated real estate		(1,095	)		–			1,095			–			–			–			–			–			–		–
Allowance for projects under development revision		(700	)		–			–			–			(700	)		(300	)		—			—			—		(300	)
Discontinued operations:
Depreciation and amortization-Real Estate Groups		(215	)		–			–			215			–			–			–			–			–		–
Amortization of mortgage procurement costs-Real Estate Groups		(2	)		–			–			2			–			–			–			–			–		–
Gain on disposition of rental properties		11,859			–			–			(11,859	)		–			–			–			–			–		–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	19,599		$	–		$	–		$	–		$	19,599		$	7,405		$	–		$	–		$	–	$	7,405

52

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2012(in thousands) (continued)

	Land Development Group 2011														The Nets 2011
						Plus														Plus
	Full Consolidation (GAAP)			Less Noncontrolling Interest		Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)				Full Consolidation (GAAP)			Less Noncontrolling Interest		Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	20,348		$	1,772	$	4,810		$	-	$	23,386			$	-		$	-	$	-	$	-	$	-
Exclude straight-line rent adjustment		-			-		-			-		-				-			-		-		-		-
Adjusted revenues		20,348			1,772		4,810			-		23,386				-			-		-		-		-
Add interest and other income		2,813			226		-			-		2,587				-			-		-		-		-
Add equity in earnings (loss) of unconsolidated entities, including impairment		(38,508	)		-		38,518			-		10				(11,845	)		-		-		-		(11,845	)
Exclude impairment of unconsolidated real estate		39,802			-		(39,802	)		-		-				-			-		-		-		-
Exclude depreciation and amortization of unconsolidated entities		64			-		(64	)		-		-				-			-		-		-		-
Exclude interest expense of unconsolidated entities		31			-		(31	)		-		-				-			-		-		-		-
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		-			-		-			-		-				-			-		-		-		-
Adjusted total income		24,550			1,998		3,431			-		25,983				(11,845	)		-		-		-		(11,845	)
Operating expenses		18,457			1,291		3,431			-		20,597				-			-		-		-		-
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		22			-		-			-		22				-			-		-		-		-
Exclude straight-line rent adjustment		-			-		-			-		-				-			-		-		-		-
Exclude preference payment		-			-		-			-		-				-			-		-		-		-
Adjusted operating expenses		18,479			1,291		3,431			-		20,619				-			-		-		-		-
Net operating income		6,071			707		-			-		5,364				(11,845	)		-		-		-		(11,845	)
Interest expense		978			163		31			-		846				-			-		-		-		-
Interest expense of unconsolidated entities		31			-		(31	)		-		-				-			-		-		-		-
(Gain) loss on early extinguishment of debt		-			-		-			-		-				-			-		-		-		-
(Gain) loss on early extinguishment of debt of unconsolidated entities		-			-		-			-		-				-			-		-		-		-
Noncontrolling interest in earnings before depreciation and amortization		544			544		-			-		-				-			-		-		-		-
Allowance for projects under development revision		-			-		-			-		-		-		-			-		-		-		-
Add: Pre-Tax EBDT from discontinued operations		-			-		-			-		-				-			-		-		-		-
Pre-Tax EBDT		4,518			-		-			-		4,518				(11,845	)		-		-		-		(11,845	)
Income tax expense (benefit)		-			-		-			-		-				-			-		-		-		-
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	4,518		$	-	$	-		$	-	$	4,518			$	(11,845	)	$	-	$	-	$	-	$	(11,845	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	4,518		$	-	$	-		$	-	$	4,518			$	(11,845	)	$	-	$	-	$	-	$	(11,845	)
Depreciation and amortization-Real Estate Groups		(55	)		-		-			-		(55	)			-			-		-		-		-
Amortization of mortgage procurement costs-Real Estate Groups		(85	)		-		-			-		(85	)			-			-		-		-		-
Straight-line rent adjustment		-			-		-			-		-				-			-		-		-		-
Preference payment		-			-		-			-		-				-			-		-		-		-
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		-			-		-			-		-				-			-		-		-		-
Impairment of consolidated and unconsolidated real estate		(113,561	)		-		(39,802	)		-		(153,363	)			-			-		-		-		-
Impairment of unconsolidated real estate		(39,802	)		-		39,802			-		-				-			-		-		-		-
Allowance for projects under development revision		-			-		-			-		-		-		-			-		-		-		-
Discontinued operations:
Depreciation and amortization-Real Estate Groups		-			-		-			-		-				-			-		-		-		-
Amortization of mortgage procurement costs-Real Estate Groups		-			-		-			-		-				-			-		-		-		-
Gain on disposition of rental properties		-			-		-			-		-				-			-		-		-		-
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(148,985	)	$	-	$	-		$	-	$	(148,985	)		$	(11,845	)	$	-	$	-	$	-	$	(11,845	)

53

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) –Three Months Ended January 31, 2012(in thousands) (continued)

	Corporate Activities 2011												Total 2011
	Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	–		$	–	$	–	$	–	$	–		$	281,249		$	17,675		$	106,313		$	2,481		$	372,368
Exclude straight-line rent adjustment		–			–		–		–		–			(5,308	)		–			–			–			(5,308	)
Adjusted revenues		–			–		–		–		–			275,941			17,675			106,313			2,481			367,060
Add interest and other income		43			–		–		–		43			10,001			458			342			(1	)		9,884
Add equity in earnings (loss) of unconsolidated entities, including impairment		–			–		–		–		–			(43,402	)		(413	)		31,469			–			(11,520	)
Exclude impairment of unconsolidated real estate		–			–		–		–		–			40,897			–			(40,897	)		–			–
Exclude depreciation and amortization of unconsolidated entities		–			–		–		–		–			20,989			–			(20,989	)		–			–
Exclude interest expense of unconsolidated entities		–			–		–		–		–			26,457			–			(26,457	)		–			–
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		–			–		–		–		–			(114	)		–			114			–			–
Adjusted total income		43			–		–		–		43			330,769			17,720			49,895			2,480			365,424
Operating expenses		16,027			–		–		–		16,027			191,427			13,600			49,895			2,828			230,550
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		401			–		–		–		401			847			–			–			–			847
Exclude straight-line rent adjustment		–			–		–		–		–			(1,095	)		–			–			–			(1,095	)
Exclude preference payment		–			–		–		–		–			24			–			–			–			24
Adjusted operating expenses		16,428			–		–		–		16,428			191,203			13,600			49,895			2,828			230,326
Net operating income		(16,385	)		–		–		–		(16,385	)		139,566			4,120			–			(348	)		135,098
Interest expense		14,643			–		–		–		14,643			64,128			2,823			26,457			106			87,868
Interest expense of unconsolidated entities		–			–		–		–		–			26,457			–			(26,457	)		–			–
(Gain) loss on early extinguishment of debt		–			–		–		–		–			(256	)		(134	)		(114	)		–			(236	)
(Gain) loss on early extinguishment of debt of unconsolidated entities		–			–		–		–		–			(114	)		–			114			–			–
Noncontrolling interest in earnings before depreciation and amortization		–			–		–		–		–			1,431			1,431			–			–			–
Allowance for projects under development revision		–			–		–		–		–			1,000			–			–			–			1,000
Add: Pre-Tax EBDT from discontinued operations		–			–		–		–		–			(454	)		–			–			454			–
Pre-Tax EBDT		(31,028	)		–		–		–		(31,028	)		48,466			–			–			–			48,466
Income tax expense (benefit)		(10,359	)		–		–		–		(10,359	)		(10,359	)		–			–			–			(10,359	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(20,669	)	$	–	$	–	$	–	$	(20,669	)	$	58,825		$	–		$	–		$	–		$	58,825
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(20,669	)	$	–	$	–	$	–	$	(20,669	)	$	58,825		$	–		$	–		$	–		$	58,825
Depreciation and amortization-Real Estate Groups		–			–		–		–		–			(72,427	)		–			–			(215	)		(72,642	)
Amortization of mortgage procurement costs-Real Estate Groups		–			–		–		–		–			(3,569	)		–			–			(2	)		(3,571	)
Straight-line rent adjustment		–			–		–		–		–			4,213			–			–			–			4,213
Preference payment		–			–		–		–		–			24			–			–			–			24
Gain on disposition of rental properties and partial interests																							–
in rental properties, net of noncontrolling interest		–			–		–		–		–			2,255			–			–			11,859			14,114
Impairment of consolidated and unconsolidated real estate		–			–		–		–		–			(113,561	)		–			(40,897	)		–			(154,458	)
Impairment of unconsolidated real estate		–			–		–		–		–			(40,897	)		–			40,897			–			–
Allowance for projects under development revision		–			–		–		–		–			(1,000	)		–			–			–			(1,000	)
Discontinued operations:																							–
Depreciation and amortization-Real Estate Groups		–			–		–		–		–			(215	)		–			–			215			–
Amortization of mortgage procurement costs-Real Estate Groups		–			–		–		–		–			(2	)		–			–			2			–
Gain on disposition of rental properties		–			–		–		–		–			11,859			–			–			(11,859	)		–
Tax (expense) benefit:
Deferred taxes		57,122			–		–		–		57,122			57,122			–			–			–			57,122
Gain (loss) on disposition of rental properties and partial interest in rental properties		(8,013	)		–		–		–		(8,013	)		(8,013	)		–			–			–			(8,013	)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	28,440		$	–	$	–	$	–	$	28,440		$	(105,386	)	$	–		$	–		$	–		$	(105,386	)
Preferred dividends		(3,850	)		–		–		–		(3,850	)		(3,850	)		–			–			–			(3,850	)
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	24,590		$	–	$	–	$	–	$	24,590		$	(109,236	)	$	–		$	–		$	–		$	(109,236	)

54

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2012(in thousands)

	Commercial Group 2011															Residential Group 2011
	Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	790,430		$	34,550		$	218,438		$	23,173		$	997,491		$	255,127		$	18,124		$	153,417		$	–	$	390,420
Exclude straight-line rent adjustment		(10,942	)		–			–			(571	)		(11,513	)		(192	)		–			–			–		(192	)
Adjusted revenues		779,488			34,550			218,438			22,602			985,978			254,935			18,124			153,417			–		390,228
Add interest and other income		21,198			(62	)		162			2			21,424			19,816			556			894			–		20,154
Add equity in earnings (loss) of unconsolidated entities, including impairment		(20,397	)		–			20,397			–			–			23,049			(185	)		(22,633	)		–		601
Exclude gain on disposition of unconsolidated entities		–			–			–			–			–			(12,567	)		–			12,567			–		–
Exclude impairment of unconsolidated real estate		40,284			–			(40,284	)		–			–			–			–			–			–		–
Exclude depreciation and amortization of unconsolidated entities		41,071			–			(41,071	)		–			–			29,542			–			(29,542	)		–		–
Exclude interest expense of unconsolidated entities		64,130			–			(64,130	)		–			–			36,499			–			(36,499	)		–		–
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		71			–			(71	)		–			–			2,221			–			(2,221	)		–		–
Adjusted total income		925,845			34,488			93,441			22,604			1,007,402			353,495			18,495			75,983			–		410,983
Operating expenses		390,607			21,217			93,441			18,074			480,905			178,224			14,728			75,983			–		239,479
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		1,011			–			–			–			1,011			620			–			–			–		620
Exclude straight-line rent adjustment		(4,560	)		–			–			–			(4,560	)		63			–			–			–		63
Exclude preference payment		(1,732	)		–			–			–			(1,732	)		–			–			–			–		–
Adjusted operating expenses		385,326			21,217			93,441			18,074			475,624			178,907			14,728			75,983			–		240,162
Net operating income		540,519			13,271			–			4,530			531,778			174,588			3,767			–			–		170,821
Interest expense		168,810			9,726			64,130			2,123			225,337			31,946			1,713			36,499			–		66,732
Interest expense of unconsolidated entities		64,130			–			(64,130	)		–			–			36,499			–			(36,499	)		–		–
(Gain) loss on early extinguishment of debt		(21,034	)		(1,641	)		71			–			(19,322	)		644			–			2,221			–		2,865
(Gain) loss on early extinguishment of debt of unconsolidated entities		71			–			(71	)		–			–			2,221			–			(2,221	)		–		–
Noncontrolling interest in earnings before depreciation and amortization		5,186			5,186			–			–			–			2,054			2,054			–			–		–
Allowance for projects under development revision		(700	)		–			–			–			(700	)		(300	)		–			–			–		(300	)
Add: Pre-Tax EBDT from discontinued operations		2,407			–			–			(2,407	)		–			–			–			–			–		–
Pre-Tax EBDT		325,063			–			–			–			325,063			100,924			–			–			–		100,924
Income tax expense (benefit)		–			–			–			–			–			–			–			–			–		–
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	325,063		$	–		$	–		$	–		$	325,063		$	100,924		$	–		$	–		$	–	$	100,924
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	325,063		$	–		$	–		$	–		$	325,063		$	100,924		$	–		$	–		$	–	$	100,924
Depreciation and amortization - Real Estate Groups		(198,063	)		–			–			(3,154	)		(201,217	)		(80,238	)		–			–			–		(80,238	)
Amortization of mortgage procurement costs - Real Estate Groups		(10,519	)		–			–			(356	)		(10,875	)		(3,506	)		–			–			–		(3,506	)
Straight-line rent adjustment		6,382			–			–			571			6,953			255			–			–			–		255
Preference payment		(1,732	)		–			–			–			(1,732	)		–			–			–			–		–
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		15,410			–			–			51,796			67,206			2,255			–			12,567			–		14,822
Gain on disposition of unconsolidated entities		–			–			–			–			–			12,567			–			(12,567	)		–		–
Impairment of consolidated and unconsolidated real estate		(3,435	)		–			(40,284	)		(10,257	)		(53,976	)		(235	)		–			–			–		(235	)
Impairment of unconsolidated real estate		(40,284	)		–			40,284			–			–			–			–			–			–		–
Allowance for projects under development revision		700			–			–			–			700			300			–			–			–		300
Discontinued operations:
Depreciation and amortization - Real Estate Groups		(3,154	)		–			–			3,154			–			–			–			–			–		–
Amortization of mortgage procurement costs - Real Estate Groups		(356	)		–			–			356			–			–			–			–			–		–
Straight-line rent adjustment		571			–			–			(571	)		–			–			–			–			–		–
Gain on disposition of rental properties		51,796			–			–			(51,796	)		–			–			–			–			–		–
Impairment of consolidated and unconsolidated real estate		(10,257	)		–			–			10,257			–			–			–			–			–		–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	132,122		$	–		$	–		$	–		$	132,122		$	32,322		$	–		$	–		$	–	$	32,322

55

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2012(in thousands) (continued)

Land Development Group 2011

The Nets 2011

Full Consolidation (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Full Consolidation (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Revenues from real estate operations

$

44,420

$

3,434

$

13,666

$

–

$

54,652

$

–

$

–

$

–

$

–

$

–

Exclude straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Adjusted revenues

44,420

3,434

13,666

–

54,652

–

–

–

–

–

Add interest and other income

10,838

876

(67

)

–

9,895

–

–

–

–

–

Add equity in earnings (loss) of unconsolidated entities, including impairment

(36,877

)

–

36,781

–

(96

)

(26,814

)

–

–

–

(26,814

)

Exclude gain on disposition of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Exclude impairment of unconsolidated real estate

41,902

–

(41,902

)

–

–

–

–

–

–

–

Exclude depreciation and amortization of unconsolidated entities

257

–

(257

)

–

–

–

–

–

–

–

Exclude interest expense of unconsolidated entities

329

–

(329

)

–

–

–

–

–

–

–

Exclude (gain) loss on early extinguishment of debt of unconsolidated entities

(1,926

)

–

1,926

–

–

–

–

–

–

–

Adjusted total income

58,943

4,310

9,818

–

64,451

(26,814

)

–

–

–

(26,814

)

Operating expenses

47,543

2,849

9,818

–

54,512

–

–

–

–

–

Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs

102

–

–

–

102

–

–

–

–

–

Exclude straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Exclude preference payment

–

–

–

–

–

–

–

–

–

–

Adjusted operating expenses

47,645

2,849

9,818

–

54,614

–

–

–

–

–

Net operating income

11,298

1,461

–

–

9,837

(26,814

)

–

–

–

(26,814

)

Interest expense

3,443

550

329

–

3,222

–

–

–

–

–

Interest expense of unconsolidated entities

329

–

(329

)

–

–

–

–

–

–

–

(Gain) loss on early extinguishment of debt

–

–

(1,926

)

–

(1,926

)

–

–

–

–

–

(Gain) loss on early extinguishment of debt of unconsolidated entities

(1,926

)

–

1,926

–

–

–

–

–

–

–

Noncontrolling interest in earnings before depreciation and amortization

911

911

–

–

–

–

–

–

–

–

Allowance for projects under development revision

–

–

–

–

–

–

–

–

–

–

Add: Pre-Tax EBDT from discontinued operations

–

–

–

–

–

–

–

–

–

–

Pre-Tax EBDT

8,541

–

–

–

8,541

(26,814

)

–

–

–

(26,814

)

Income tax expense (benefit)

–

–

–

–

–

–

–

–

–

–

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

8,541

$

–

$

–

$

–

$

8,541

$

(26,814

)

$

–

$

–

$

–

$

(26,814

)

Reconciliation to net earnings:

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

8,541

$

–

$

–

$

–

$

8,541

$

(26,814

)

$

–

$

–

$

–

$

(26,814

)

Depreciation and amortization - Real Estate Groups

(249

)

–

–

–

(249

)

–

–

–

–

–

Amortization of mortgage procurement costs - Real Estate Groups

(289

)

–

–

–

(289

)

–

–

–

–

–

Straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Preference payment

–

–

–

–

–

–

–

–

–

–

Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest

–

–

–

–

–

–

–

–

–

–

Gain on disposition of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate

(115,411

)

–

(41,902

)

–

(157,313

)

–

–

–

–

–

Impairment of unconsolidated real estate

(41,902

)

–

41,902

–

–

–

–

–

–

–

Allowance for projects under development revision

–

–

–

–

–

–

–

–

–

–

Discontinued operations:

Depreciation and amortization - Real Estate Groups

–

–

–

–

–

–

–

–

–

–

Amortization of mortgage procurement costs - Real Estate Groups

–

–

–

–

–

–

–

–

–

–

Straight-line rent adjustment

–

–

–

–

–

–

–

–

–

–

Gain on disposition of rental properties

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate

–

–

–

–

–

–

–

–

–

–

Net earnings (loss) attributable to Forest City Enterprises, Inc.

$

(149,310

)

$

–

$

–

$

–

$

(149,310

)

$

(26,814

)

$

–

$

–

$

–

$

(26,814

)

56

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2012(in thousands) (continued)

	Corporate Activities 2011												Total 2011
	Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro–Rata		Plus Discontinued Operations		Pro–Rata Consolidation (Non–GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro–Rata			Plus Discontinued Operations			Pro–Rata Consolidation (Non–GAAP)
Revenues from real estate operations	$	–		$	–	$	–	$	–	$	–		$	1,089,977		$	56,108		$	385,521		$	23,173		$	1,442,563
Exclude straight-line rent adjustment		–			–		–		–		–			(11,134	)		–			–			(571	)		(11,705	)
Adjusted revenues		–			–		–		–		–			1,078,843			56,108			385,521			22,602			1,430,858
Add interest and other income		262			–		–		–		262			52,114			1,370			989			2			51,735
Add equity in earnings (loss) of unconsolidated entities, including impairment		–			–		–		–		–			(61,039	)		(185	)		34,545			–			(26,309	)
Exclude gain on disposition of unconsolidated entities		–			–		–		–		–			(12,567	)		–			12,567			–			–
Exclude impairment of unconsolidated real estate		–			–		–		–		–			82,186			–			(82,186	)		–			–
Exclude depreciation and amortization of unconsolidated entities		–			–		–		–		–			70,870			–			(70,870	)		–			–
Exclude interest expense of unconsolidated entities		–			–		–		–		–			100,958			–			(100,958	)		–			–
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		–			–		–		–		–			366			–			(366	)		–			–
Adjusted total income		262			–		–		–		262			1,311,731			57,293			179,242			22,604			1,456,284
Operating expenses		52,585			–		–		–		52,585			668,959			38,794			179,242			18,074			827,481
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		1,514			–		–		–		1,514			3,247			–			–			–			3,247
Exclude straight-line rent adjustment		–			–		–		–		–			(4,497	)		–			–			–			(4,497	)
Exclude preference payment		–			–		–		–		–			(1,732	)		–			–			–			(1,732	)
Adjusted operating expenses		54,099			–		–		–		54,099			665,977			38,794			179,242			18,074			824,499
Net operating income		(53,837	)		–		–		–		(53,837	)		645,754			18,499			–			4,530			631,785
Interest expense		56,838			–		–		–		56,838			261,037			11,989			100,958			2,123			352,129
Interest expense of unconsolidated entities		–			–		–		–		–			100,958			–			(100,958	)		–			–
(Gain) loss on early extinguishment of debt		10,800			–		–		–		10,800			(9,590	)		(1,641	)		366			–			(7,583	)
(Gain) loss on early extinguishment of debt of unconsolidated entities		–			–		–		–		–			366			–			(366	)		–			–
Noncontrolling interest in earnings before depreciation and amortization		–			–		–		–		–			8,151			8,151			–			–			–
Allowance for projects under development revision		–			–		–		–		–			(1,000	)		–			–			–			(1,000	)
Add: Pre-Tax EBDT from discontinued operations		–			–		–		–		–			2,407			–			–			(2,407	)		–
Pre-Tax EBDT		(121,475	)		–		–		–		(121,475	)		286,239			–			–			–			286,239
Income tax expense (benefit)		(48,145	)		–		–		–		(48,145	)		(48,145	)		–			–			–			(48,145	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(73,330	)	$	–	$	–	$	–	$	(73,330	)	$	334,384		$	–		$	–		$	–		$	334,384
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(73,330	)	$	–	$	–	$	–	$	(73,330	)	$	334,384		$	–		$	–		$	–		$	334,384
Depreciation and amortization - Real Estate Groups		–			–		–		–		–			(278,550	)		–			–			(3,154	)		(281,704	)
Amortization of mortgage procurement costs - Real Estate Groups		–			–		–		–		–			(14,314	)		–			–			(356	)		(14,670	)
Straight-line rent adjustment		–			–		–		–		–			6,637			–			–			571			7,208
Preference payment		–			–		–		–		–			(1,732	)		–			–			–			(1,732	)
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		–			–		–		–		–			17,665			–			12,567			51,796			82,028
Gain on disposition of unconsolidated entities		–			–		–		–		–			12,567			–			(12,567	)		–			–
Impairment of consolidated and unconsolidated real estate		–			–		–		–		–			(119,081	)		–			(82,186	)		(10,257	)		(211,524	)
Impairment of unconsolidated real estate		–			–		–		–		–			(82,186	)		–			82,186			–			–
Allowance for projects under development revision		–			–		–		–		–			1,000			–			–			–			1,000
Discontinued operations:
Depreciation and amortization - Real Estate Groups		–			–		–		–		–			(3,154	)		–			–			3,154			–
Amortization of mortgage procurement costs - Real Estate Groups		–			–		–		–		–			(356	)		–			–			356			–
Straight-line rent adjustment		–			–		–		–		–			571			–			–			(571	)		–
Gain on disposition of rental properties		–			–		–		–		–			51,796			–			–			(51,796	)		–
Impairment of consolidated and unconsolidated real estate		–			–		–		–		–			(10,257	)		–			–			10,257			–
Tax (expense) benefit:
Deferred taxes		48,508			–		–		–		48,508			48,508			–			–			–			48,508
Gain (loss) on disposition of rental properties and partial interest in rental properties		(49,984	)		–		–		–		(49,984	)		(49,984	)		–			–			–			(49,984	)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(74,806	)	$	–	$	–	$	–	$	(74,806	)	$	(86,486	)	$	–		$	–		$	–		$	(86,486	)
Preferred dividends		(15,400	)		–		–		–		(15,400	)		(15,400	)		–			–			–			(15,400	)
Net loss attributable to Forest City Enterprises, Inc. common shareholders	$	(90,206	)	$	–	$	–	$	–	$	(90,206	)	$	(101,886	)	$	–		$	–		$	–		$	(101,886	)

57

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2011(in thousands)

	Commercial Group 2010														Residential Group 2010
	Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro–Rata			Plus Discontinued Operations			Pro–Rata Consolidation (Non–GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro–Rata			Plus Discontinued Operations		Pro–Rata Consolidation (Non–GAAP)
Revenues from real estate operations	$	213,983		$	12,219	$	41,125		$	14,978		$	257,867		$	53,597		$	922	$	37,102		$	–	$	89,777
Exclude straight–line rent adjustment		(8,750	)		–		–			(627	)		(9,377	)		215			–		–			–		215
Adjusted revenues		205,233			12,219		41,125			14,351			248,490			53,812			922		37,102			–		89,992
Add interest and other income		9,951			258		39			2			9,734			5,587			151		332			–		5,768
Add equity in earnings (loss) of unconsolidated entities, including impairment		(32,514	)		–		32,514			–			–			20,883			1,719		(19,283	)		–		(119	)
Exclude gain on disposition of unconsolidated entities		–			–		–			–			–			(15,633	)		–		15,633			–		–
Exclude impairment of unconsolidated real estate		35,000			–		(35,000	)		–			–			–			–		–			–		–
Exclude depreciation and amortization of unconsolidated entities		8,962			–		(8,962	)		–			–			6,830			–		(6,830	)		–		–
Exclude interest expense of unconsolidated entities		13,464			–		(13,464	)		–			–			8,628			–		(8,628	)		–		–
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		(2,791	)		–		2,791			–			–			6			–		(6	)		–		–
Adjusted total income		237,305			12,477		19,043			14,353			258,224			80,113			2,792		18,320			–		95,641
Operating expenses		105,134			7,153		19,043			10,457			127,481			37,463			307		18,320			–		55,476
Non–Real Estate depreciation and amortization and amortization of mortgage procurement costs		395			–		–			–			395			249			–		–			–		249
Exclude straight–line rent adjustment		(1,248	)		–		–			–			(1,248	)		2			–		–			–		2
Exclude preference payment		(585	)		–		–			–			(585	)		–			–		–			–		–
Adjusted operating expenses		103,696			7,153		19,043			10,457			126,043			37,714			307		18,320			–		55,727
Net operating income		133,609			5,324		–			3,896			132,181			42,399			2,485		–			–		39,914
Interest expense		48,811			2,628		13,464			1,848			61,495			3,915			329		8,628			–		12,214
Interest expense of unconsolidated entities		13,464			–		(13,464	)		–			–			8,628			–		(8,628	)		–		–
(Gain) loss on early extinguishment of debt		–			–		(2,791	)		–			(2,791	)		(1	)		–		6			–		5
(Gain) loss on early extinguishment of debt of unconsolidated entities		(2,791	)		–		2,791			–			–			6			–		(6	)		–		–
Noncontrolling interest in earnings before depreciation and amortization		2,696			2,696		–			–			–			2,156			2,156		–			–		–
Add: Pre–Tax EBDT from discontinued operations		2,048			–		–			(2,048	)		–			–			–		–			–		–
Pre–Tax EBDT		73,477			–		–			–			73,477			27,695			–		–			–		27,695
Income tax expense (benefit)		2,138			–		–			–			2,138			8,596			–		–			–		8,596
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	71,339		$	–	$	–		$	–		$	71,339		$	19,099		$	–	$	–		$	–	$	19,099
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	71,339		$	–	$	–		$	–		$	71,339		$	19,099		$	–	$	–		$	–	$	19,099
Depreciation and amortization –Real Estate Groups		(51,683	)		–		–			(1,764	)		(53,447	)		(19,870	)		–		–			–		(19,870	)
Amortization of mortgage procurement costs – Real Estate Groups		(2,575	)		–		–			(271	)		(2,846	)		(709	)		–		–			–		(709	)
Deferred taxes –Real Estate Groups		3,247			–		–			(950	)		2,297			8,225			–		–			–		8,225
Straight–line rent adjustment		7,502			–		–			627			8,129			(213	)		–		–			–		(213	)
Preference payment		(585	)		–		–			–			(585	)		–			–		–			–		–
Gain on disposition of rental properties and partial interests in rental properties, net of tax		825			–		–			27,657			28,482			–			–		9,570			–		9,570
Gain on disposition of unconsolidated entities, net of tax		–			–		–			–			–			9,570			–		(9,570	)		–		–
Impairment of consolidated and unconsolidated real estate, net of tax		–			–		(21,000	)		–			(21,000	)		–			–		–			–		–
Impairment of unconsolidated real estate, net of tax		(21,000	)		–		21,000			–			–			–			–		–			–		–
Discontinued operations, net of tax:
Depreciation and amortization – Real Estate Groups		(1,764	)		–		–			1,764			–			–			–		–			–		–
Amortization of mortgage procurement costs – Real Estate Groups		(271	)		–		–			271			–			–			–		–			–		–
Deferred taxes—Real Estate Groups		(950	)		–		–			950			–			–			–		–			–		–
Straight–line rent adjustment		627			–		–			(627	)		–			–			–		–			–		–
Gain on disposition of rental properties		27,657			–		–			(27,657	)		–			–			–		–			–		–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	32,369		$	–	$	–		$	–		$	32,369		$	16,102		$	–	$	–		$	–	$	16,102

58

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2011(in thousands) (continued)

Land Development Group 2010

The Nets 2010

Full Consolidation (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Full Consolidation (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro–Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Revenues from real estate operations

$

12,567

$

1,031

$

1,940

$

–

$

13,476

$

–

$

–

$

–

$

–

$

–

Exclude straight–line rent adjustment

3

–

–

–

3

–

–

–

–

–

Adjusted revenues

12,570

1,031

1,940

–

13,479

–

–

–

–

–

Add interest and other income

2,216

202

10

–

2,024

–

–

–

–

–

Add equity in earnings (loss) of unconsolidated entities, including impairment

(799

)

–

850

–

51

(312

)

–

–

–

(312

)

Exclude gain on disposition of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Exclude impairment of unconsolidated real estate

714

–

(714

)

–

–

–

–

–

–

–

Exclude depreciation and amortization of unconsolidated entities

59

–

(59

)

–

–

–

–

–

–

–

Exclude interest expense of unconsolidated entities

136

–

(136

)

–

–

–

–

–

–

–

Exclude (gain) loss on early extinguishment of debt of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Adjusted total income

14,896

1,233

1,891

–

15,554

(312

)

–

–

–

(312

)

Operating expenses

11,776

849

1,891

–

12,818

–

–

–

–

–

Non–Real Estate depreciation and amortization and amortization of mortgage procurement costs

43

–

–

–

43

–

–

–

–

–

Exclude straight–line rent adjustment

–

–

–

–

–

–

–

–

–

–

Exclude preference payment

–

–

–

–

–

–

–

–

–

–

Adjusted operating expenses

11,819

849

1,891

–

12,861

–

–

–

–

–

Net operating income

3,077

384

–

–

2,693

(312

)

–

–

–

(312

)

Interest expense

829

90

136

–

875

–

–

–

–

–

Interest expense of unconsolidated entities

136

–

(136

)

–

–

–

–

–

–

–

(Gain) loss on early extinguishment of debt

–

–

–

–

–

–

–

–

–

–

(Gain) loss on early extinguishment of debt of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Noncontrolling interest in earnings before depreciation and amortization

294

294

–

–

–

–

–

–

–

–

Add: Pre–Tax EBDT from discontinued operations

–

–

–

–

–

–

–

–

–

–

Pre–Tax EBDT

1,818

–

–

–

1,818

(312

)

–

–

–

(312

)

Income tax expense (benefit)

449

–

–

–

449

811

–

–

–

811

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

1,369

$

–

$

–

$

–

$

1,369

$

(1,123

)

$

–

$

–

$

–

$

(1,123

)

Reconciliation to net earnings:

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

1,369

$

–

$

–

$

–

$

1,369

$

(1,123

)

$

–

$

–

$

–

$

(1,123

)

Depreciation and amortization – Real Estate Groups

(62

)

–

–

–

(62

)

–

–

–

–

–

Amortization of mortgage procurement costs – Real Estate Groups

(62

)

–

–

–

(62

)

–

–

–

–

–

Deferred taxes – Real Estate Groups

236

–

–

–

236

–

–

–

–

–

Straight–line rent adjustment

(3

)

–

–

–

(3

)

–

–

–

–

–

Preference payment

–

–

–

–

–

–

–

–

–

–

Gain on disposition of rental properties and partial interests in rental properties, net of tax

–

–

–

–

–

–

–

–

–

–

Gain on disposition of unconsolidated entities, net of tax

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate, net of tax

–

–

(437

)

–

(437

)

–

–

–

–

–

Impairment of unconsolidated real estate, net of tax

(437

)

–

437

–

–

–

–

–

–

–

Discontinued operations, net of tax:

Depreciation and amortization – Real Estate Groups

–

–

–

–

–

–

–

–

–

–

Amortization of mortgage procurement costs – Real Estate Groups

–

–

–

–

–

–

–

–

–

–

Deferred taxes – Real Estate Groups

–

–

–

–

–

–

–

–

–

–

Straight–line rent adjustment

–

–

–

–

–

–

–

–

–

–

Gain on disposition of rental properties

–

–

–

–

–

–

–

–

–

–

Net earnings (loss) attributable to Forest City Enterprises, Inc.

$

1,041

$

–

$

–

$

–

$

1,041

$

(1,123

)

$

–

$

–

$

–

$

(1,123

)

59

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended January 31, 2011(in thousands) (continued)

	Corporate Activities 2010												Total 2010
	Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	–		$	–	$	–	$	–	$	–		$	280,147		$	14,172	$	80,167		$	14,978		$	361,120
Exclude straight–line rent adjustment		–			–		–		–		–			(8,532	)		–		–			(627	)		(9,159	)
Adjusted revenues		–			–		–		–		–			271,615			14,172		80,167			14,351			351,961
Add interest and other income		105			–		–		–		105			17,859			611		381			2			17,631
Add equity in earnings (loss) of unconsolidated entities, including impairment		–			–		–		–		–			(12,742	)		1,719		14,081			–			(380	)
Exclude gain on disposition of unconsolidated entities		–			–		–		–		–			(15,633	)		–		15,633			–			–
Exclude impairment of unconsolidated real estate		–			–		–		–		–			35,714			–		(35,714	)		–			–
Exclude depreciation and amortization of unconsolidated entities		–			–		–		–		–			15,851			–		(15,851	)		–			–
Exclude interest expense of unconsolidated entities		–			–		–		–		–			22,228			–		(22,228	)		–			–
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		–			–		–		–		–			(2,785	)		–		2,785			–			–
Adjusted total income		105			–		–		–		105			332,107			16,502		39,254			14,353			369,212
Operating expenses		17,705			–		–		–		17,705			172,078			8,309		39,254			10,457			213,480
Non–Real Estate depreciation and amortization and amortization of mortgage procurement costs		404			–		–		–		404			1,091			–		–			–			1,091
Exclude straight–line rent adjustment		–			–		–		–		–			(1,246	)		–		–			–			(1,246	)
Exclude preference payment		–			–		–		–		–			(585	)		–		–			–			(585	)
Adjusted operating expenses		18,109			–		–		–		18,109			171,338			8,309		39,254			10,457			212,740
Net operating income		(18,004	)		–		–		–		(18,004	)		160,769			8,193		–			3,896			156,472
Interest expense		15,832			–		–		–		15,832			69,387			3,047		22,228			1,848			90,416
Interest expense of unconsolidated entities		–			–		–		–		–			22,228			–		(22,228	)		–			–
(Gain) loss on early extinguishment of debt		31,689			–		–		–		31,689			31,688			–		(2,785	)		–			28,903
(Gain) loss on early extinguishment of debt of unconsolidated entities		–			–		–		–		–			(2,785	)		–		2,785			–			–
Noncontrolling interest in earnings before depreciation and amortization		–			–		–		–		–			5,146			5,146		–			–			–
Add: Pre–Tax EBDT from discontinued operations		–			–		–		–		–			2,048			–		–			(2,048	)		–
Pre–Tax EBDT		(65,525	)		–		–		–		(65,525	)		37,153			–		–			–			37,153
Income tax expense (benefit)		(17,990	)		–		–		–		(17,990	)		(5,996	)		–		–			–			(5,996	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(47,535	)	$	–	$	–	$	–	$	(47,535	)	$	43,149		$	–	$	–		$	–		$	43,149
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(47,535	)	$	–	$	–	$	–	$	(47,535	)	$	43,149		$	–	$	–		$	–		$	43,149
Depreciation and amortization – Real Estate Groups		–			–		–		–		–			(71,615	)		–		–			(1,764	)		(73,379	)
Amortization of mortgage procurement costs – Real Estate Groups		–			–		–		–		–			(3,346	)		–		–			(271	)		(3,617	)
Deferred taxes – Real Estate Groups		(2,687	)		–		–		–		(2,687	)		9,021			–		–			(950	)		8,071
Straight–line rent adjustment		–			–		–		–		–			7,286			–		–			627			7,913
Preference payment		–			–		–		–		–			(585	)		–		–			–			(585	)
Gain on disposition of rental properties and partial interests in rental properties, net of tax		–			–		–		–		–			825			–		9,570			27,657			38,052
Gain on disposition of unconsolidated entities, net of tax		–			–		–		–		–			9,570			–		(9,570	)		–			–
Impairment of consolidated and unconsolidated real estate, net of tax		–			–		–		–		–			–			–		(21,437	)		–			(21,437	)
Impairment of unconsolidated real estate, net of tax		–			–		–		–		–			(21,437	)		–		21,437			–			–
Discontinued operations, net of tax:
Depreciation and amortization – Real Estate Groups		–			–		–		–		–			(1,764	)		–		–			1,764			–
Amortization of mortgage procurement costs – Real Estate Groups		–			–		–		–		–			(271	)		–		–			271			–
Deferred taxes – Real Estate Groups		–			–		–		–		–			(950	)		–		–			950			–
Straight–line rent adjustment		–			–		–		–		–			627			–		–			(627	)		–
Gain on disposition of rental properties		–			–		–		–		–			27,657			–		–			(27,657	)		–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(50,222	)	$	–	$	–	$	–	$	(50,222	)	$	(1,833	)	$	–	$	–		$	–		$	(1,833	)
Preferred dividends		(3,850	)		–		–		–		(3,850	)		(3,850	)		–		–			–			(3,850	)
Net loss attributable to Forest City Enterprises, Inc. common shareholders	$	(54,072	)	$	–	$	–	$	–	$	(54,072	)	$	(5,683	)	$	–	$	–		$	–		$	(5,683	)

60

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2011(in thousands)

	Commercial Group 2010														Residential Group 2010
	Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	874,033		$	48,272	$	159,015		$	61,054		$	1,045,830		$	211,485		$	3,623		$	147,786		$	2,506		$	358,154
Exclude straight–line rent adjustment		(21,189	)		–		–			(1,795	)		(22,984	)		(516	)		–			–			–			(516	)
Adjusted revenues		852,844			48,272		159,015			59,259			1,022,846			210,969			3,623			147,786			2,506			357,638
Add interest and other income		23,384			1,318		357			10			22,433			19,830			551			1,166			4			20,449
Add gain on disposition of partial interests in other investments – Nets		–			–		–			–			–			–			–			–			–			–
Add equity in earnings (loss) of unconsolidated entities, including impairment		(29,269	)		–		29,269			–			–			37,415			1,630			(35,350	)		–			435
Exclude gain on disposition of unconsolidated entities		(5,613	)		–		5,613			–			–			(17,848	)		–			17,848			–			–
Exclude impairment of unconsolidated real estate		49,889			–		(49,889	)		–			–			–			–			–			–			–
Exclude depreciation and amortization of unconsolidated entities		29,581			–		(29,581	)		–			–			24,617			–			(24,617	)		–			–
Exclude interest expense of unconsolidated entities		46,091			–		(46,091	)		–			–			33,608			–			(33,608	)		–			–
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		(2,791	)		–		2,791			–			–			31			–			(31	)		–			–
Adjusted total income		964,116			49,590		71,484			59,269			1,045,279			308,622			5,804			73,194			2,510			378,522
Operating expenses		424,923			28,072		71,484			40,746			509,081			136,596			1,383			73,194			1,610			210,017
Non–Real Estate depreciation and amortization and amortization of mortgage procurement costs		1,750			–		–			–			1,750			1,347			–			–			–			1,347
Exclude straight–line rent adjustment		(5,338	)		–		–			–			(5,338	)		6			–			–			–			6
Exclude preference payment		(2,341	)		–		–			–			(2,341	)		–			–			–			–			–
Adjusted operating expenses		418,994			28,072		71,484			40,746			503,142			137,949			1,383			73,194			1,610			211,370
Net operating income		545,122			21,518		–			18,523			542,127			170,673			4,421			–			900			167,152
Interest expense		221,642			15,495		46,091			9,364			261,602			21,233			975			33,608			118			53,984
Interest expense of unconsolidated entities		46,091			–		(46,091	)		–			–			33,608			–			(33,608	)		–			–
(Gain) loss on early extinguishment of debt		–			–		(2,791	)		–			(2,791	)		(2,461	)		(247	)		31			–			(2,183	)
(Gain) loss on early extinguishment of debt of unconsolidated entities		(2,791	)		–		2,791			–			–			31			–			(31	)		–			–
Noncontrolling interest in earnings before depreciation and amortization		6,023			6,023		–			–			–			3,693			3,693			–			–			–
Allowance for projects under development revision		700			–		–			–			700			300			–			–			–			300
Add: Pre–Tax EBDT from discontinued operations		9,159			–		–			(9,159	)		–			782			–			–			(782	)		–
Pre–Tax EBDT		284,016			–		–			–			284,016			115,651			–			–			–			115,651
Income tax expense (benefit)		6,536			–		–			–			6,536			9,095			–			–			–			9,095
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	277,480		$	–	$	–		$	–		$	277,480		$	106,556		$	–		$	–		$	–		$	106,556
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	277,480		$	–	$	–		$	–		$	277,480		$	106,556		$	–		$	–		$	–		$	106,556
Depreciation and amortization – Real Estate Groups		(199,640	)		–		–			(9,896	)		(209,536	)		(75,606	)		–			–			(636	)		(76,242	)
Amortization of mortgage procurement costs – Real Estate Groups		(10,444	)		–		–			(1,043	)		(11,487	)		(2,568	)		–			–			(13	)		(2,581	)
Deferred taxes – Real Estate Groups		(12,600	)		–		–			(2,069	)		(14,669	)		(3,002	)		–			–			(400	)		(3,402	)
Straight–line rent adjustment		15,851			–		–			1,795			17,646			522			–			–			–			522
Preference payment		(2,341	)		–		–			–			(2,341	)		–			–			–			–			–
Gain on disposition of rental properties and partial interests in rental properties, net of tax		106,943			–		3,436			26,899			137,278			18,083			–			10,926			1,099			30,108
Gain on disposition of unconsolidated entities, net of tax		3,436			–		(3,436	)		–			–			10,926			–			(10,926	)		–			–
Impairment of consolidated and unconsolidated real estate, net of tax		(964	)		–		(30,115	)		(49,980	)		(81,059	)		–			–			–			–			–
Impairment of unconsolidated real estate, net of tax		(30,115	)		–		30,115			–			–			–			–			–			–			–
Allowance for projects under development revision		(700	)		–		–			–			(700	)		(300	)		–			–			–			(300	)
Discontinued operations, net of tax:
Depreciation and amortization – Real Estate Groups		(9,896	)		–		–			9,896			–			(636	)		–			–			636			–
Amortization of mortgage procurement costs – Real Estate Groups		(1,043	)		–		–			1,043			–			(13	)		–			–			13			–
Deferred taxes – Real Estate Groups		(2,069	)		–		–			2,069			–			(400	)		–			–			400			–
Straight–line rent adjustment		1,795			–		–			(1,795	)		–			–			–			–			–			–
Gain on disposition of rental properties		26,899			–		–			(26,899	)		–			1,099			–			–			(1,099	)		–
Impairment of consolidated and unconsolidated real estate		(49,980	)		–		–			49,980			–			–			–			–			–			–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	112,612		$	–	$	–		$	–		$	112,612		$	54,661		$	–		$	–		$	–		$	54,661

61

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2011(in thousands) (continued)

Land Development Group 2010

The Nets 2010

Full Consolidation (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro–Rata Consolidation (Non-GAAP)

Full Consolidation (GAAP)

Less Noncontrolling Interest

Plus Unconsolidated Investments at Pro-Rata

Plus Discontinued Operations

Pro-Rata Consolidation (Non-GAAP)

Revenues from real estate operations

$

32,131

$

2,224

$

10,099

$

–

$

40,006

$

–

$

–

$

–

$

–

$

–

Exclude straight–line rent adjustment

8

–

–

–

8

–

–

–

–

–

Adjusted revenues

32,139

2,224

10,099

–

40,014

–

–

–

–

–

Add interest and other income

9,162

766

106

–

8,502

–

–

14,037

–

14,037

Add gain on disposition of partial interests in other investments—Nets

–

–

–

–

–

55,112

23,675

–

–

31,437

Add equity in earnings (loss) of unconsolidated entities, including impairment

(20,022

)

–

21,381

–

1,359

(18,318

)

(6,243

)

4,207

–

(7,868

)

Exclude gain on disposition of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Exclude impairment of unconsolidated real estate

22,570

–

(22,570

)

–

–

–

–

–

–

–

Exclude depreciation and amortization of unconsolidated entities

241

–

(241

)

–

–

–

–

–

–

–

Exclude interest expense of unconsolidated entities

339

–

(339

)

–

–

1,146

–

(1,146

)

–

–

Exclude (gain) loss on early extinguishment of debt of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Adjusted total income

44,429

2,990

8,436

–

49,875

37,940

17,432

17,098

–

37,606

Operating expenses

38,650

2,258

8,436

–

44,828

–

–

16,151

–

16,151

Non–Real Estate depreciation and amortization and amortization of mortgage procurement costs

162

–

–

–

162

–

–

947

–

947

Exclude straight–line rent adjustment

–

–

–

–

–

–

–

–

–

–

Exclude preference payment

–

–

–

–

–

–

–

–

–

–

Adjusted operating expenses

38,812

2,258

8,436

–

44,990

–

–

17,098

–

17,098

Net operating income

5,617

732

–

–

4,885

37,940

17,432

–

–

20,508

Interest expense

3,007

304

339

–

3,042

–

–

1,146

–

1,146

Interest expense of unconsolidated entities

339

–

(339

)

–

–

1,146

–

(1,146

)

–

–

(Gain) loss on early extinguishment of debt

–

–

–

–

–

–

–

–

–

–

(Gain) loss on early extinguishment of debt of unconsolidated entities

–

–

–

–

–

–

–

–

–

–

Noncontrolling interest in earnings before depreciation and amortization

428

428

–

–

–

17,432

17,432

–

–

–

Allowance for projects under development revision

–

–

–

–

–

–

–

–

–

–

Add: Pre–Tax EBDT from discontinued operations

–

–

–

–

–

–

–

–

–

–

Pre–Tax EBDT

1,843

–

–

–

1,843

19,362

–

–

–

19,362

Income tax expense (benefit)

(533

)

–

–

–

(533

)

9,711

–

–

–

9,711

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

2,376

$

–

$

–

$

–

$

2,376

$

9,651

$

–

$

–

$

–

$

9,651

Reconciliation to net earnings:

Earnings before depreciation, amortization and deferred taxes (EBDT)

$

2,376

$

–

$

–

$

–

$

2,376

$

9,651

$

–

$

–

$

–

$

9,651

Depreciation and amortization—Real Estate Groups

(264

)

–

–

–

(264

)

–

–

–

–

–

Amortization of mortgage procurement costs—Real Estate Groups

(273

)

–

–

–

(273

)

–

–

–

–

–

Deferred taxes—Real Estate Groups

(591

)

–

–

–

(591

)

–

–

–

–

–

Straight–line rent adjustment

(8

)

–

–

–

(8

)

–

–

–

–

–

Preference payment

–

–

–

–

–

–

–

–

–

–

Gain on disposition of rental properties and partial interests in rental properties, net of tax

–

–

–

–

–

–

–

–

–

–

Gain on disposition of unconsolidated entities, net of tax

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate, net of tax

(1,016

)

–

(13,817

)

–

(14,833

)

–

–

–

–

–

Impairment of unconsolidated real estate, net of tax

(13,817

)

–

13,817

–

–

–

–

–

–

–

Allowance for projects under development revision

–

–

–

–

–

–

–

–

–

–

Discontinued operations, net of tax:

Depreciation and amortization—Real Estate Groups

–

–

–

–

–

–

–

–

–

–

Amortization of mortgage procurement costs—Real Estate Groups

–

–

–

–

–

–

–

–

–

–

Deferred taxes—Real Estate Groups

–

–

–

–

–

–

–

–

–

–

Straight–line rent adjustment

–

–

–

–

–

–

–

–

–

–

Gain on disposition of rental properties

–

–

–

–

–

–

–

–

–

–

Impairment of consolidated and unconsolidated real estate

–

–

–

–

–

–

–

–

–

–

Net earnings (loss) attributable to Forest City Enterprises, Inc.

$

(13,593

)

$

–

$

–

$

–

$

(13,593

)

$

9,651

$

–

$

–

$

–

$

9,651

62

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Year Ended January 31, 2011(in thousands) (continued)

	Corporate Activities 2010												Total 2010
	Full Consolidation (GAAP)			Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Plus Discontinued Operations		Pro-Rata Consolidation (Non-GAAP)			Full Consolidation (GAAP)			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Plus Discontinued Operations			Pro-Rata Consolidation (Non-GAAP)
Revenues from real estate operations	$	–		$	–	$	–	$	–	$	–		$	1,117,649		$	54,119		$	316,900		$	63,560		$	1,443,990
Exclude straight–line rent adjustment		–			–		–		–		–			(21,697	)		–			–			(1,795	)		(23,492	)
Adjusted revenues		–			–		–		–		–			1,095,952			54,119			316,900			61,765			1,420,498
Add interest and other income		442			–		–		–		442			52,818			2,635			15,666			14			65,863
Add gain on disposition of partial interests in other investments – Nets		–			–		–		–		–			55,112			23,675			–			–			31,437
Add equity in earnings (loss) of unconsolidated entities, including impairment		–			–		–		–		–			(30,194	)		(4,613	)		19,507			–			(6,074	)
Exclude gain on disposition of unconsolidated entities		–			–		–		–		–			(23,461	)		–			23,461			–			–
Exclude impairment of unconsolidated real estate														72,459			–			(72,459	)		–			–
Exclude depreciation and amortization of unconsolidated entities														54,439			–			(54,439	)		–			–
Exclude interest expense of unconsolidated entities		–			–		–		–		–			81,184			–			(81,184	)		–			–
Exclude (gain) loss on early extinguishment of debt of unconsolidated entities		–			–		–		–		–			(2,760	)		–			2,760			–			–
Adjusted total income		442			–		–		–		442			1,355,549			75,816			170,212			61,779			1,511,724
Operating expenses		47,030			–		–		–		47,030			647,199			31,713			169,265			42,356			827,107
Non–Real Estate depreciation and amortization and amortization of mortgage procurement costs		1,769			–		–		–		1,769			5,028			–			947			–			5,975
Exclude straight–line rent adjustment		–			–		–		–		–			(5,332	)		–			–			–			(5,332	)
Exclude preference payment		–			–		–		–		–			(2,341	)		–			–			–			(2,341	)
Adjusted operating expenses		48,799			–		–		–		48,799			644,554			31,713			170,212			42,356			825,409
Net operating income		(48,357	)		–		–		–		(48,357	)		710,995			44,103			–			19,423			686,315
Interest expense		63,884			–		–		–		63,884			309,766			16,774			81,184			9,482			383,658
Interest expense of unconsolidated entities		–			–		–		–		–			81,184			–			(81,184	)		–			–
(Gain) loss on early extinguishment of debt		23,496			–		–		–		23,496			21,035			(247	)		(2,760	)		–			18,522
(Gain) loss on early extinguishment of debt of unconsolidated entities		–			–		–		–		–			(2,760	)		–			2,760			–			–
Noncontrolling interest in earnings before depreciation and amortization		–			–		–		–		–			27,576			27,576			–			–			–
Allowance for projects under development revision		–			–		–		–		–			1,000			–			–			–			1,000
Add: Pre–Tax EBDT from discontinued operations		–			–		–		–		–			9,941			–			–			(9,941	)		–
Pre–Tax EBDT		(135,737	)		–		–		–		(135,737	)		285,135			–			–			–			285,135
Income tax expense (benefit)		(49,549	)		–		–		–		(49,549	)		(24,740	)		–			–			–			(24,740	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(86,188	)	$	–	$	–	$	–	$	(86,188	)	$	309,875		$	–		$	–		$	–		$	309,875
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(86,188	)	$	–	$	–	$	–	$	(86,188	)	$	309,875		$	–		$	–		$	–		$	309,875
Depreciation and amortization – Real Estate Groups		–			–		–		–		–			(275,510	)		–			–			(10,532	)		(286,042	)
Amortization of mortgage procurement costs – Real Estate Groups		–			–		–		–		–			(13,285	)		–			–			(1,056	)		(14,341	)
Deferred taxes – Real Estate Groups		(19,095	)		–		–		–		(19,095	)		(35,288	)		–			–			(2,469	)		(37,757	)
Straight–line rent adjustment		–			–		–		–		–			16,365			–			–			1,795			18,160
Preference payment		–			–		–		–		–			(2,341	)		–			–			–			(2,341	)
Gain on disposition of rental properties and partial interests in rental properties, net of tax		–			–		–		–		–			125,026			–			14,362			27,998			167,386
Gain on disposition of unconsolidated entities, net of tax		–			–		–		–		–			14,362			–			(14,362	)		–			–
Impairment of consolidated and unconsolidated real estate, net of tax		–			–		–		–		–			(1,980	)		–			(43,932	)		(49,980	)		(95,892	)
Impairment of unconsolidated real estate, net of tax		–			–		–		–		–			(43,932	)		–			43,932			–			–
Allowance for projects under development revision		–			–		–		–		–			(1,000	)		–			–			–			(1,000	)
Discontinued operations, net of tax:
Depreciation and amortization – Real Estate Groups		–			–		–		–		–			(10,532	)		–			–			10,532			–
Amortization of mortgage procurement costs – Real Estate Groups		–			–		–		–		–			(1,056	)		–			–			1,056			–
Deferred taxes – Real Estate Groups		–			–		–		–		–			(2,469	)		–			–			2,469			–
Straight–line rent adjustment		–			–		–		–		–			1,795			–			–			(1,795	)		–
Gain on disposition of rental properties		–			–		–		–		–			27,998			–			–			(27,998	)		–
Impairment of consolidated and unconsolidated real estate		–			–		–		–		–			(49,980	)		–			–			49,980			–
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(105,283	)	$	–	$	–	$	–	$	(105,283	)	$	58,048		$	–		$	–		$	–		$	58,048
Preferred dividends		(11,807	)		–		–		–		(11,807	)		(11,807	)		–			–			–			(11,807	)
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(117,090	)	$	–	$	–	$	–	$	(117,090	)	$	46,241		$	–		$	–		$	–		$	46,241

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Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

COMMERCIAL GROUP-OFFICE BUILDINGS

Name	Date of Opening/ Acquisition/ Expansion		Legal Ownership (1)			Pro-Rata Ownership (2)			Location	Major Tenants	Leasable Square Feet		Leasable Square Feet at Pro- Rata %
Consolidated Office Buildings
2 Hanson Place		2004		100.00	%		100.00	%	Brooklyn, NY	Bank of New York, HSBC		399,000		399,000
4930 Oakton		2006		100.00	%		100.00	%	Skokie, IL	Sanford Brown College		40,000		40,000
Ballston Common Office Center		2005		100.00	%		100.00	%	Arlington, VA	US Coast Guard; Better Business Bureau		174,000		174,000
Colorado Studios		2007		90.00	%		90.00	%	Denver, CO	Colorado Studios		75,000		68,000
Commerce Court		2007		100.00	%		100.00	%	Pittsburgh, PA	US Bank; Wesco Distributors; Cardworks Services; Marc USA		379,000		379,000
Edgeworth Building		2006		100.00	%		100.00	%	Richmond, VA	Hirschler Fleischer; Ernst & Young		137,000		137,000
Eleven MetroTech Center		1995		85.00	%		85.00	%	Brooklyn, NY	City of New York - DoITT; E-911		216,000		184,000
Fairmont Plaza		1998		100.00	%		100.00	%	San Jose, CA	Littler Mendelson; Merrill Lynch; UBS Financial; Camera 12 Cinemas; Accenture		405,000		405,000
Fifteen MetroTech Center		2003		95.00	%		95.00	%	Brooklyn, NY	Wellpoint, Inc.; City of New York - HRA		650,000		618,000
Halle Building		1986		100.00	%		100.00	%	Cleveland, OH	Case Western Reserve University; Grant Thornton; CEOGC		409,000		409,000
Harlem Center		2003		100.00	%		100.00	%	Manhattan, NY	Office of General Services-Temporary Disability & Assistance; State Liquor Authority		147,000		147,000
Higbee Building		1990		100.00	%		100.00	%	Cleveland, OH	Key Bank; Horseshoe Casino		815,000		815,000
Illinois Science and Technology Park
- 4901 Searle (A)		2006		100.00	%		100.00	%	Skokie, IL	Northshore University Health System		224,000		224,000
- 8025 Lamon (P)		2006		100.00	%		100.00	%	Skokie, IL	NanoInk, Inc.; Midwest Bio Research; Vetter Development Services		128,000		128,000
- 8030 Lamon (J)		2010		100.00	%		100.00	%	Skokie, IL	Leasing in progress		147,000		147,000
- 8045 Lamon (Q)		2007		100.00	%		100.00	%	Skokie, IL	Astellas; Polyera; APP Pharmaceuticals, LLC		161,000		161,000
Johns Hopkins – 855 North Wolfe Street		2008		83.99	%		98.81	%	East Baltimore, MD	Johns Hopkins; Brain Institute; Howard Hughes Institute; Lieber Institute		279,000		276,000
New York Times		2007		100.00	%		100.00	%	Manhattan, NY	ClearBridge Advisors, LLC, a Legg Mason Co.; Covington & Burling; Osler Hoskin & Harcourt; Seyfarth Shaw		738,000		738,000
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	JP Morgan Chase; National Grid		937,000		773,000
One Pierrepont Plaza		1988		100.00	%		100.00	%	Brooklyn, NY	Morgan Stanley; U.S. Probation		659,000		659,000
Post Office Plaza (MK Ferguson)		1990		100.00	%		100.00	%	Cleveland, OH	Washington Group; Chase Manhattan Mortgage Corp; Quicken Loans; Squire Sanders		476,000		476,000
Richmond Office Park		2007		100.00	%		100.00	%	Richmond, VA	The Brinks Co.; Wachovia Bank; Bon Secours Virginia HealthSource		568,000		568,000
Skylight Office Tower		1991		92.50	%		100.00	%	Cleveland, OH	Cap Gemini; Ulmer & Berne, LLP		321,000		321,000
Stapleton – 3055 Roslyn		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		365,000		365,000
Terminal Tower		1983		100.00	%		100.00	%	Cleveland, OH	Forest City Enterprises, Inc.; Falls Communications; Riverside Company		597,000		597,000
Twelve MetroTech Center		2004		100.00	%		100.00	%	Brooklyn, NY	National Union Fire Insurance Co.		177,000		177,000
Two MetroTech Center		1990		82.50	%		82.50	%	Brooklyn, NY	City of New York - Board of Education; City of New York - DoITT		522,000		431,000
University of Pennsylvania		2004		100.00	%		100.00	%	Philadelphia, PA	University of Pennsylvania		122,000		122,000
Consolidated Office Buildings Subtotal												10,629,000		10,248,000

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Supplemental Financial Information

Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

COMMERCIAL GROUP-OFFICE BUILDINGS (continued)

Name	Date of Opening/ Acquisition/ Expansion		��	Legal Ownership (1)			Pro-Rata Ownership (2)			Location	Major Tenants	Leasable Square Feet		Leasable Square Feet at Pro-Rata %
Unconsolidated Office Buildings
35 Landsdowne Street		2002			51.00	%		51.00	%	Cambridge, MA	Millennium Pharmaceuticals		202,000		103,000
350 Massachusetts Ave		1998			50.00	%		50.00	%	Cambridge, MA	Star Market; Tofias; Novartis		169,000		85,000
40 Landsdowne Street		2003			51.00	%		51.00	%	Cambridge, MA	Millennium Pharmaceuticals		215,000		110,000
45/75 Sidney Street		1999			51.00	%		51.00	%	Cambridge, MA	Millennium Pharmaceuticals; Novartis		277,000		141,000
65/80 Landsdowne Street		2001			51.00	%		51.00	%	Cambridge, MA	Partners HealthCare System		122,000		62,000
818 Mission Street		2008			50.00	%		50.00	%	San Francisco, CA	Denny’s; Community Vocational Enterprises		28,000		14,000
88 Sidney Street		2002			51.00	%		51.00	%	Cambridge, MA	Vertex Pharmaceuticals		145,000		74,000
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	Nine Sigma; Benihana; H&R Block		113,000		75,000
Clark Building		1989			50.00	%		50.00	%	Cambridge, MA	Sanofi Pasteur Biologics; Agios Pharmaceuticals		122,000		61,000
Enterprise Place		1998			50.00	%		50.00	%	Beachwood, OH	University of Phoenix; Advance Payroll; PS Executive Centers; Retina Assoc. of Cleveland		132,000		66,000
Jackson Building		1987			51.00	%		51.00	%	Cambridge, MA	Ariad Pharmaceuticals		99,000		50,000
Liberty Center		1986			50.00	%		50.00	%	Pittsburgh, PA	Federated Investors; Direct Energy Business		526,000		263,000
Mesa del Sol – 5600 University SE		2006			47.50	%		47.50	%	Albuquerque, NM	MSR-FSR, LLC; CFV Solar		87,000		41,000
Mesa del Sol – Aperture Center		2008			47.50	%		47.50	%	Albuquerque, NM	Forest City Covington NM, LLC		76,000		36,000
Mesa del Sol – Fidelity		2008/2009			47.50	%		47.50	%	Albuquerque, NM	Fidelity Investments		210,000		100,000
Richards Building		1990			51.00	%		51.00	%	Cambridge, MA	Genzyme Biosurgery; Alkermes, Inc.		126,000		64,000
Signature Square I		1986			50.00	%		50.00	%	Beachwood, OH	Ciuni & Panichi; PCC Airfoils; Liberty Bank		79,000		40,000
Signature Square II		1989			50.00	%		50.00	%	Beachwood, OH	Pro Ed Communications; Goldberg Co.; Resilience Mgt.		82,000		41,000
Unconsolidated Office Buildings Subtotal													2,888,000		1,465,000
Total Office Buildings at January 31, 2012													13,517,000		11,713,000
Total Office Buildings at January 31, 2011													14,259,000		11,985,000

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Supplemental Financial Information

Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

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	Macy’s; Sears; JCPenney; Dillard’s; Forever 21; Cinemark Theatre		1,196,000		933,000		478,000		373,000
Ballston Common Mall		1986/1999		100.00	%		100.00	%	Arlington, VA	Macy’s; Sport & Health; Regal Cinemas		579,000		579,000		311,000		311,000
Galleria at Sunset		1996/2002		100.00	%		100.00	%	Henderson, NV	Dillard’s; Macy’s; JCPenney; Dick’s Sporting Goods; Kohl’s		1,048,000		1,048,000		412,000		412,000
Mall at Robinson		2001		56.67	%		100.00	%	Pittsburgh, PA	Macy’s; Sears; JCPenney; Dick’s Sporting Goods		880,000		880,000		384,000		384,000
Northfield at Stapleton		2005/2006		100.00	%		100.00	%	Denver, CO	Bass Pro Shops; Target; Harkins Theatre; JCPenney; Macy’s		1,127,000		1,127,000		664,000		664,000
Orchard Town Center		2008/2012		100.00	%		100.00	%	Westminster, CO	JCPenney; Macy’s; Target; AMC Theatres		1,043,000		1,043,000		507,000		507,000
Promenade Bolingbrook		2007		100.00	%		100.00	%	Bolingbrook, IL	Bass Pro Shops; Macy’s; Gold Class Cinemas; Barnes & Noble; Designer Shoe Warehouse		771,000		771,000		575,000		575,000
Promenade in Temecula		1999/2002/2009		75.00	%		100.00	%	Temecula, CA	JCPenney; Sears; Macy’s; Edwards Cinema		1,279,000		1,279,000		544,000		544,000
Shops at Wiregrass		2008		50.00	%		100.00	%	Tampa, FL	JCPenney; Dillard’s; Macy’s; Barnes & Noble		734,000		734,000		349,000		349,000
Short Pump Town Center		2003/2005		50.00	%		100.00	%	Richmond, VA	Nordstrom; Macy’s; Dillard’s; Dick’s Sporting Goods		1,303,000		1,303,000		591,000		591,000
South Bay Galleria		1985/2001		100.00	%		100.00	%	Redondo Beach, CA	Nordstrom; Macy’s; Kohl’s; AMC Theatres		956,000		956,000		389,000		389,000
Victoria Gardens		2004/2007		80.00	%		80.00	%	Rancho Cucamonga, CA	Bass Pro Shops; Macy’s; JCPenney; AMC Theatres		1,401,000		1,121,000		829,000		663,000
^ Westchester’s Ridge Hill		2011/2012		70.00	%		100.00	%	Yonkers, NY	Lord & Taylor; WESTMED Medical Group; LA Fitness; National Amusements’ Cinema de Lux; Whole Foods; Dick’s Sporting Goods		1,336,000		1,336,000		1,336,000		1,336,000
Consolidated Regional Malls Subtotal												13,653,000		13,110,000		7,369,000		7,098,000

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Supplemental Financial Information

Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

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
Atlantic Center Site V		1998		100.00	%		100.00	%	Brooklyn, NY	Modell’s		17,000		17,000		17,000		17,000
Avenue at Tower City Center		1990		100.00	%		100.00	%	Cleveland, OH	Hard Rock Café; Morton’s of Chicago; Cleveland Cinemas; Horseshoe Casino (located in Higbee Building)		365,000		365,000		365,000		365,000
Brooklyn Commons		2004		100.00	%		100.00	%	Brooklyn, NY	Lowe’s		151,000		151,000		151,000		151,000
Market at Tobacco Row		2002		100.00	%		100.00	%	Richmond, VA	Rich Foods; CVS/Pharmacy		43,000		43,000		43,000		43,000
Quartermaster Plaza		2004		100.00	%		100.00	%	Philadelphia, PA	Home Depot; BJ’s Wholesale Club; Staples; PetSmart; Walgreen’s		456,000		456,000		456,000		456,000
++ Quebec Square		2002		90.00	%		90.00	%	Denver, CO	Walmart; Home Depot; Sam’s Club; Ross Dress for Less; Office Depot; PetSmart		739,000		665,000		217,000		195,000
Station Square		1994/2002		100.00	%		100.00	%	Pittsburgh, PA	Hard Rock Café; Grand Concourse Restaurant; Buca Di Beppo		291,000		291,000		291,000		291,000
*   The Yards – Boilermaker Shops		2012		100.00	%		100.00	%	Washington, D.C.	Forest City Enterprises; Buzz Bakery; Huey’s 24/7 Diner; Willie’s Brew & Que; Well’s Cleaners; Smith & Union Brewery		40,000		40,000		40,000		40,000
Town Center (East 29th Avenue)		2004		90.00	%		90.00	%	Denver, CO	King Soopers; Walgreen’s; Casey’s Pub; Chipotle;		181,000		163,000		98,000		88,000
										SDC Services Corp.; Exempla, Inc.
White Oak Village		2008		50.00	%		100.00	%	Richmond, VA	Target; Lowe’s; Sam’s Club; JCPenney; OfficeMax; PetSmart; Martin’s		843,000		843,000		295,000		295,000
Consolidated Specialty Retail Centers Subtotal												3,126,000		3,034,000		1,973,000		1,941,000
Consolidated Retail Centers Total												16,779,000		16,144,000		9,342,000		9,039,000

67

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

COMMERCIAL GROUP-RETAIL CENTERS (continued)

Name	Date of Opening/ Acquisition/ Expansion		Legal Ownership (1)			Pro-Rata Ownership (2)			Location	Major Tenants	Total Square Feet		Total Square Feet at Pro- Rata %		Gross Leasable Area		Gross Leasable Area at Pro- Rata %
Unconsolidated Regional Malls
Boulevard Mall		1996/2000		50.00	%		50.00	%	Amherst, NY	JCPenney; Macy’s; Sears; Michael’s		912,000		456,000		336,000		168,000
Charleston Town Center		1983		50.00	%		50.00	%	Charleston, WV	Macy’s; JCPenney; Sears; Brickstreet Insurance		897,000		449,000		363,000		182,000
Mall at Stonecrest		2001		51.00	%		51.00	%	Atlanta, GA	Kohl’s; Sears; JCPenney; Dillard’s; AMC Theatres; Macy’s		1,226,000		625,000		397,000		202,000
San Francisco Centre		2006		50.00	%		50.00	%	San Francisco, CA	Nordstrom; Bloomingdale’s; Century Theaters; San Francisco State University; Microsoft		1,462,000		731,000		788,000		394,000
Unconsolidated Regional Malls Subtotal												4,497,000		2,261,000		1,884,000		946,000
Unconsolidated Specialty Retail Centers
42nd Street		1999		51.00	%		51.00	%	Manhattan, NY	AMC Theatres; Madame Tussaud’s Wax Museum; Modell’s; Dave & Buster’s; Ripley’s Believe It or Not!; Famous Dave’s BBQ		309,000		158,000		309,000		158,000
Atlantic Center		1996		51.00	%		51.00	%	Brooklyn, NY	Pathmark; OfficeMax; Old Navy; Marshall’s; NYC - Dept of Motor Vehicles; Best Buy		395,000		201,000		395,000		201,000
Atlantic Terminal		2004		51.00	%		51.00	%	Brooklyn, NY	Target; Designer Shoe Warehouse; Chuck E. Cheese’s; Daffy’s; Guitar Center		371,000		189,000		371,000		189,000
Bruckner Boulevard		1996		51.00	%		51.00	%	Bronx, NY	Conway; Old Navy; Marshall’s		113,000		58,000		113,000		58,000
Columbia Park Center		1999		38.25	%		38.25	%	North Bergen, NJ	Shop Rite; Old Navy; Staples; Bally’s; Shopper’s World; Phoenix Theatres		351,000		134,000		351,000		134,000
Court Street		2000		51.00	%		51.00	%	Brooklyn, NY	United Artists Theatres; Barnes & Noble		102,000		52,000		102,000		52,000
Eastchester		2000		51.00	%		51.00	%	Bronx, NY	Pathmark		63,000		32,000		63,000		32,000
East River Plaza		2009/2010		35.00	%		50.00	%	Manhattan, NY	Costco; Target; Best Buy; Marshall’s; PetSmart; Bob’s Furniture; Old Navy		527,000		264,000		527,000		264,000
Forest Avenue		2000		51.00	%		51.00	%	Staten Island, NY	United Artists Theatres		70,000		36,000		70,000		36,000
Golden Gate		1958		50.00	%		50.00	%	Mayfield Heights, OH	OfficeMax; JoAnn Fabrics; Marshall’s; World Market; HH Gregg; PetSmart		361,000		181,000		361,000		181,000
Gun Hill Road		1997		51.00	%		51.00	%	Bronx, NY	Home Depot; Chuck E. Cheese’s		147,000		75,000		147,000		75,000
Harlem Center		2002		51.00	%		51.00	%	Manhattan, NY	Marshall’s; CVS/Pharmacy; Staples; H&M; Planet Fitness		126,000		64,000		126,000		64,000
Kaufman Studios		1999		51.00	%		51.00	%	Queens, NY	United Artists Theatres		84,000		43,000		84,000		43,000
Marketplace at Riverpark		1996		50.00	%		50.00	%	Fresno, CA	JCPenney; Best Buy; Marshall’s; OfficeMax; Old Navy; Target; Sports Authority		471,000		236,000		296,000		148,000
Northern Boulevard		1997		51.00	%		51.00	%	Queens, NY	Stop & Shop; Marshall’s; Old Navy; AJ Wright; Guitar Center		218,000		111,000		218,000		111,000
Plaza at Robinson Town Center		1989		50.00	%		50.00	%	Pittsburgh, PA	T.J. Maxx; Marshall’s; IKEA; Value City; JoAnn Fabrics; HomeGoods		507,000		254,000		507,000		254,000
Queens Place		2001		51.00	%		51.00	%	Queens, NY	Target; Best Buy; Macy’s Furniture; Designer Shoe Warehouse		455,000		232,000		221,000		113,000
Richmond Avenue		1998		51.00	%		51.00	%	Staten Island, NY	Staples; Dick’s Sporting Goods		76,000		39,000		76,000		39,000
Village at Gulfstream Park		2010		50.00	%		50.00	%	Hallandale Beach, FL	Crate & Barrel; The Container Store; Texas de Brazil; Yard House		511,000		256,000		511,000		256,000
Unconsolidated Specialty Retail Centers Subtotal												5,257,000		2,615,000		4,848,000		2,408,000
Unconsolidated Retail Centers Total												9,754,000		4,876,000		6,732,000		3,354,000
Total Retail Centers at January 31, 2012												26,533,000		21,020,000		16,074,000		12,393,000
Total Retail Centers at January 31, 2011												26,464,000		22,511,000		16,005,000		13,640,000

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Supplemental Financial Information

Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

COMMERCIAL GROUP – HOTELS

Name	Date of Opening/ Acquisition/ Expansion		Legal Ownership (1)			Pro-Rata Ownership (2)			Location	Rooms		Hotel Rooms at Pro-Rata %
Consolidated Hotels
Sheraton Station Square		1998/2001		100.00	%		100.00	%	Pittsburgh, PA		399		399
Unconsolidated Hotels
Westin Convention Center		1986		50.00	%		50.00	%	Pittsburgh, PA		616		308
Total Hotel Rooms at January 31, 2012											1,015		707
Total Hotel Rooms at January 31, 2011											1,573		1,265

COMMERCIAL GROUP - ARENA							Major Tenants	Total Square Feet		Total Square Feet at Pro-Rata %		Est. Seating Capacity for NBA Basketball Event		Est. Seating Capacity for NBA Basketball Event at Pro-Rata %
* Barclays Center	2012	34.01	%	34.01	%	Brooklyn, NY	The Nets NBA Team		670,000		228,000		18,000		6,122

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Supplemental Financial Information

Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

RESIDENTIAL GROUP – APARTMENTS

Name	Date of Opening/ Acquisition/ Expansion	Legal Ownership (1)			Pro-Rata Ownership (2)			Location	Leasable Units(3)		Leasable Units at Pro-Rata % (3)
Consolidated Apartment Communities
100 Landsdowne Street	2005		100.00	%		100.00	%	Cambridge, MA		203		203
1251 S. Michigan	2006		0.01	%		100.00	%	Chicago, IL		91		91
American Cigar Company	2000		100.00	%		100.00	%	Richmond, VA		171		171
Ashton Mill	2005		100.00	%		100.00	%	Cumberland, RI		193		193
* Botanica Eastbridge	2012		90.00	%		90.00	%	Denver, CO		118		106
Brookview Place	1979		3.00	%		3.00	%	Dayton, OH		232		7
Cameron Kinney	2007		100.00	%		100.00	%	Richmond, VA		259		259
Cedar Place	1974		2.39	%		100.00	%	Lansing, MI		220		220
Consolidated-Carolina	2003		89.99	%		100.00	%	Richmond, VA		158		158
* Continental Building	2013		100.00	%		100.00	%	Dallas, TX		203		203
Cutter’s Ridge at Tobacco Row	2006		100.00	%		100.00	%	Richmond, VA		12		12
Drake	1998		95.05	%		95.05	%	Philadelphia, PA		284		270
Easthaven at the Village	1994/1995		100.00	%		100.00	%	Beachwood, OH		360		360
Emerald Palms	1996/2004		100.00	%		100.00	%	Miami, FL		505		505
Foundry Lofts	2011		100.00	%		100.00	%	Washington, D.C.		170		170
Grand Lowry Lofts	2000		100.00	%		100.00	%	Denver, CO		261		261
Hamel Mill Lofts	2008/2010		90.00	%		100.00	%	Haverhill, MA		305		305
Heritage	2002		100.00	%		100.00	%	San Diego, CA		230		230
Independence Place I	1973		50.00	%		50.00	%	Parma Heights, OH		202		101
Independence Place II	2003		100.00	%		100.00	%	Parma Heights, OH		201		201
Kennedy Biscuit Lofts	1990		3.00	%		100.00	%	Cambridge, MA		142		142
Knolls	1995		1.00	%		95.00	%	Orange, CA		260		247
Lofts 23	2005		100.00	%		100.00	%	Cambridge, MA		51		51
Lofts at 1835 Arch	2001		95.05	%		95.05	%	Philadelphia, PA		191		182
Lucky Strike	2008		88.98	%		100.00	%	Richmond, VA		131		131
Mercantile Place on Main	2008		100.00	%		100.00	%	Dallas, TX		366		366
Metro 417	2005		100.00	%		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

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Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

RESIDENTIAL GROUP—APARTMENTS (continued)

Name	Date of Opening/ Acquisition/ Expansion	Legal Ownership (1)		Pro-Rata Ownership (2)		Location	Leasable Units(3)		Leasable Units at Pro-Rata % (3)
Consolidated Apartment Communities (continued)
Millender Center	1985		5.57%		90.56%	Detroit, MI		339		307
Museum Towers	1997		100.00%		100.00%	Philadelphia, PA		286		286
North Church Towers	2009		100.00%		100.00%	Parma Heights, OH		399		399
One Franklintown	1988		100.00%		100.00%	Philadelphia, PA		335		335
Parmatown Towers and Gardens	1972-1973		100.00%		100.00%	Parma, OH		406		406
Pavilion	1992		95.00%		95.00%	Chicago, IL		1,114		1,058
Perrytown Place	1973		8.12%		100.00%	Pittsburgh, PA		231		231
Presidio Landmark	2010		1.00%		100.00%	San Francisco, CA		161		161
Queenswood	1990		93.36%		93.36%	Corona, NY		296		276
Sky55	2006		100.00%		100.00%	Chicago, IL		411		411
Southfield	2002		100.00%		100.00%	Whitemarsh, MD		212		212
* The Aster Town Center	2012		90.00%		90.00%	Denver, CO		85		77
Town Center (Botanica on the Green & Crescent Flats)	2004/2007		90.00%		90.00%	Denver, CO		298		268
Wilson Building	2007		100.00%		100.00%	Dallas, TX		135		135
Consolidated Apartment Communities Subtotal								11,409		10,889
Consolidated Supported-Living Apartments
Forest Trace	2000		100.00%		100.00%	Lauderhill, FL		322		322
Consolidated Apartments Total								11,731		11,211

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Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

RESIDENTIAL GROUP – APARTMENTS (continued)

Name	Date of Opening/ Acquisition/ Expansion	Legal Ownership (1)	Pro-Rata Ownership (2)	Location	Leasable Units(3)		Leasable Units at Pro-Rata % (3)
Unconsolidated Apartment Communities
^ 8 Spruce Street	2011/2012	35.70%	51.00%	Manhattan, NY		899		458
Arbor Glen	2001-2007	50.00%	50.00%	Twinsburg, OH		288		144
Barrington Place	2008	49.00%	49.00%	Raleigh, NC		274		134
Bayside Village	1988-1989	50.00%	50.00%	San Francisco, CA		862		431
Big Creek	1996-2001	50.00%	50.00%	Parma Heights, OH		516		258
Camelot	1967	50.00%	50.00%	Parma Heights, OH		151		76
Cherry Tree	1996-2000	50.00%	50.00%	Strongsville, OH		442		221
Chestnut Lake	1969	50.00%	50.00%	Strongsville, OH		789		395
Cobblestone Court Apartments	2006-2009	50.00%	50.00%	Painesville, OH		400		200
Colonial Grand	2003	50.00%	50.00%	Tampa, FL		176		88
Coppertree	1998	50.00%	50.00%	Mayfield Heights, OH		342		171
Deer Run	1987-1990	46.00%	46.00%	Twinsburg, OH		562		259
DKLB BKLN	2009/2010	40.80%	51.00%	Brooklyn, NY		365		186
Eaton Ridge	2002-2004	50.00%	50.00%	Sagamore Hills, OH		260		130
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
Grand	1999	42.75%	42.75%	North Bethesda, MD		549		235
Hamptons	1969	50.00%	50.00%	Beachwood, OH		651		326
Hunter’s Hollow	1990	50.00%	50.00%	Strongsville, OH		208		104
Legacy Arboretum	2008	49.00%	49.00%	Charlotte, NC		266		130
Legacy Crossroads	2008-2009	50.00%	50.00%	Cary, NC		344		172
Lenox Club	1991	47.50%	47.50%	Arlington, VA		385		183
Lenox Park	1992	47.50%	47.50%	Silver Spring, MD		406		193
Liberty Hills	1979-1986	50.00%	50.00%	Solon, OH		396		198
Newport Landing	2002-2005	50.00%	50.00%	Coventry Township, OH		336		168
Noble Towers	1979	50.00%	50.00%	Pittsburgh, PA		133		67
Parkwood Village	2001-2002	50.00%	50.00%	Brunswick, OH		204		102

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Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

RESIDENTIAL GROUP - APARTMENTS (continued)

Name	Date of Opening/ Acquisition/ Expansion	Legal Ownership (1)			Pro-Rata Ownership (2)			Location	Leasable Units(3)		Leasable Units at Pro-Rata % (3)
Unconsolidated Apartment Communities (continued)
Pine Ridge Valley	1967-1974, 2005-2007		50.00	%		50.00	%	Willoughby Hills, OH		1,309		655
Residences at University Park	2002		40.00	%		40.00	%	Cambridge, MA		135		54
Settler’s Landing at Greentree	2000-2004		50.00	%		50.00	%	Streetsboro, OH		408		204
Stratford Crossing	2007-2010		50.00	%		50.00	%	Wadsworth, OH		348		174
Surfside Towers	1970		50.00	%		50.00	%	Eastlake, OH		246		123
Sutton Landing	2007-2009		50.00	%		50.00	%	Brimfield, OH		216		108
Tamarac	1990-2001		50.00	%		50.00	%	Willoughby, OH		642		321
Uptown Apartments	2008		50.00	%		50.00	%	Oakland, CA		665		333
Westwood Reserve	2002		50.00	%		50.00	%	Tampa, FL		340		170
Woodgate / Evergreen Farms	2004-2006		33.33	%		33.33	%	Olmsted Township, OH		348		116
Worth Street	2003		50.00	%		50.00	%	Manhattan, NY		330		165
Unconsolidated Apartment Communities Subtotal										15,817		7,679
Unconsolidated Senior Housing Apartments
Autumn Ridge	2002		100.00	%		100.00	%	Sterling Heights, MI		251		251
Bowin	1998		95.05	%		95.05	%	Detroit, MI		193		183
Brookpark Place	1976		100.00	%		100.00	%	Wheeling, WV		152		152
Buckeye Towers	1976		8.94	%		8.94	%	New Boston, OH		120		11
Burton Place	2000		90.00	%		90.00	%	Burton, MI		200		180
Cambridge Towers	2002		100.00	%		100.00	%	Detroit, MI		250		250
Canton Towers	1978		8.94	%		8.94	%	Canton, OH		199		18
Carl D. Perkins	2002		100.00	%		100.00	%	Pikeville, KY		150		150
Connellsville Towers	1981		9.59	%		9.59	%	Connellsville, PA		111		11
Coraopolis Towers	2002		80.00	%		80.00	%	Coraopolis, PA		200		160
Donora Towers	2002		100.00	%		100.00	%	Donora, PA		103		103
Farmington Place	1980		100.00	%		100.00	%	Farmington, MI		153		153
Frenchtown Place	1975		8.12	%		100.00	%	Monroe, MI		151		151
Glendora Gardens	1983		1.99	%		45.51	%	Glendora, CA		105		48

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Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

RESIDENTIAL GROUP - APARTMENTS (continued)

Name	Date of Opening/ Acquisition/ Expansion		Legal Ownership (1)			Pro-Rata Ownership (2)			Location	Leasable Units(3)		Leasable Units at Pro-Rata % (3)
Unconsolidated Senior Housing Apartments (continued)
Grove		2003		100.00	%		100.00	%	Ontario, CA		101		101
Lakeland		1998		95.10	%		95.10	%	Waterford, MI		200		190
Lima Towers		1977		8.94	%		8.94	%	Lima, OH		200		18
Miramar Towers		1980		7.98	%		100.00	%	Los Angeles, CA		157		157
North Port Village		1981		30.60	%		30.60	%	Port Huron, MI		251		77
Nu Ken Tower (Citizen’s Plaza)		1981		8.84	%		50.00	%	New Kensington, PA		101		51
Oceanpointe Towers		1980		7.98	%		100.00	%	Long Branch, NJ		151		151
Panorama Towers		1978		99.00	%		99.00	%	Panorama City, CA		154		152
Park Place Towers		1975		21.79	%		100.00	%	Mt. Clemens, MI		187		187
Pine Grove Manor		1973		9.76	%		100.00	%	Muskegon Township, MI		172		172
Plymouth Square		2003		100.00	%		100.00	%	Detroit, MI		280		280
Potomac Heights Village		1981		7.98	%		100.00	%	Keyser, WV		141		141
Riverside Towers		1977		9.63	%		100.00	%	Coshocton, OH		100		100
Shippan Avenue		1980		100.00	%		100.00	%	Stamford, CT		148		148
St. Mary’s Villa		2002		40.07	%		40.07	%	Newark, NJ		360		144
The Springs		1981		7.98	%		100.00	%	La Mesa, CA		129		129
Tower 43		2002		100.00	%		100.00	%	Kent, OH		101		101
Towne Centre Place		1975		8.31	%		100.00	%	Ypsilanti, MI		170		170
Village Center		1983		100.00	%		100.00	%	Detroit, MI		254		254
Village Square		1978		100.00	%		100.00	%	Williamsville, NY		100		100
Ziegler Place		1978		100.00	%		100.00	%	Livonia, MI		141		141
Unconsolidated Senior Housing Apartments Subtotal											5,936		4,785
Unconsolidated Apartments Total											21,753		12,464
Combined Apartments Total											33,484		23,675
Federally Subsidized Housing (Total of 5 Buildings)											741
Total Apartment Units at January 31, 2012											34,225
Total Apartment Units at January 31, 2011											34,355

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Supplemental Financial Information

Forest City Enterprises, Inc. Real Estate Portfolio as of January 31, 2012

RESIDENTIAL GROUP - MILITARY HOUSING

Name	Date of Opening/ Acquisition/ Expansion		Legal Ownership (1)		Pro-Rata Ownership (2)		Location	Leasable Units(3)
Unconsolidated Military Housing^
Air Force Academy		2007-2011		50.00%		50.00%	Colorado Springs, CO		427
* Hawaii Phase IV		2007-2014		1.00%		^^	Kaneohe, HI		1,141
Marines, Hawaii Increment II		2007-2011		1.00%		^^	Honolulu, HI		1,175
Midwest Millington		2008-2011		1.00%		^^	Memphis, TN		318
Navy, Hawaii Increment III		2007-2011		1.00%		^^	Honolulu, HI		2,520
Navy Midwest		2006-2011		1.00%		^^	Chicago, IL		1,401
Ohana Military Communities, Hawaii Increment I		2005-2008		1.00%		^^	Honolulu, HI		1,952
Pacific Northwest Communities		2007-2011		20.00%		^^	Seattle, WA		2,985
Southern Group:
*     Arnold Air Force Base		2011-2013		100.00%		^^^	Tullahoma, TN		22
*     Joint Base Charleston		2011-2013		100.00%		^^^	Charleston, SC		345
*     Keesler Air Force Base		2011-2012		100.00%		^^^	Biloxi, MS		1,188
*     Shaw Air Force Base		2011-2015		100.00%		^^^	Sumter, SC		630
Unconsolidated Military Housing Total									14,104
Total Military Housing Units at January 31, 2012									14,104
Total Military Housing Units at January 31, 2011									11,919

(1) Legal ownership percentage represents our actual equity ownership percentage and reflects the percentage of income or loss allocation we expect to receive after settlement of any preferred returns which we or our partners may be entitled to in accordance with the applicable agreements.

(2) Pro-Rata ownership percentage represents the percentage of income or loss allocation we expect to receive prior to the settlement of any preferred returns which we or our partners may be entitled to in accordance with the applicable agreements. After settlement of the preferred returns, it is expected that our capital balance would be proportionate to our legal ownership.

(3) Leaseable units represent 100% of the leasable units in the apartment community. Leasable units at Pro-Rata % represents the total leasable units multiplied by the Pro-Rata ownership percent.

* Property under construction as of January 31, 2012.

++ Property sold subsequent to January 31, 2012.

^ Property to open in phases.

^^ Our share of residual cash flow ranges from 0-20% during the life cycle of the project.

^^^ We do not share in any cash flow from operations. However, we are entitled to the return of our equity at the end of the 50-year lease term.

75