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

Exhibit 99.1

Forest City Enterprises, Inc.

Supplemental Package

Three Months Ended April 30, 2012 and 2011

Forest City Enterprises, Inc. and Subsidiaries

Three Months Ended April 30, 2012 and 2011

Supplemental Package

NYSE: FCEA, FCEB

Index

Corporate Overview	2-4
Selected Financial Information
Forest City Enterprises, Inc.
Consolidated Balance Sheet Information	5-8
Consolidated Earnings Information	9-10
Net Asset Value Components	11-12
Supplemental Operating Information
Occupancy Data	13
Retail Sales Data	14
Leasing Summary	15
Comparable Net Operating Income (NOI)	16
Comparable NOI Detail	17
NOI By Product Type	18
NOI By Core Market	19
Reconciliation of NOI to Net Earnings	20
Results of Operations Discussion	21-23
FFO Bridge	24
EBDT Bridge	25
Funds From Operations	26-28
Schedules of Lease Expirations	29-30
Schedules of Significant Tenants	31-32
Development Pipeline	33-39
Supplemental Financial Information
Common Stock Data/Covenants	40
Projects under Construction and Development Debt and Nonrecourse Debt	41
Scheduled Maturities Table	42-43
Summary of EBDT	44-49

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, 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. On 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 is 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 April 30, 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 78 percent of the cost of our real estate portfolio at April 30, 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-Q for the three months ended April 30, 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 have historically reported 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. Beginning in the three months ended April 30, 2012, we are also presenting Funds From Operations (“FFO”) for the first time, which is also a non-GAAP measure. The non-GAAP financial measures presented under the pro-rata consolidation method, comparable net operating income (“NOI”), EBDT and FFO, 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 $2,000,000 ($1,224,000 after tax) for the three months ended April 30, 2011. 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 for the three months ended April 30, 2011 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 our supplemental package for the year ended January 31, 2012.

2

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial and Operating Information

EBDT

We believe that EBDT, along with net earnings, provides additional information about our core operations. While property dispositions, acquisitions or other factors can affect net earnings in the short-term, we believe EBDT presents a more consistent view of the overall financial performance of our business from period-to-period. EBDT has been 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, but not identical, to FFO, a measure of performance used by publicly traded Real Estate Investment Trusts (“REITs”).

FFO

The majority of our peers in the publically traded real estate industry are REITs and report operations using FFO as defined by the National Association of Real Estate Investment Trusts (“NAREIT”). Although we are not a REIT, we feel it is important to publish this measure to allow for easier comparison of our performance to our peers. The major difference between us and our REIT peers is that we are a taxable entity and any taxable income we generate could result in payment of federal or state income taxes. Our REIT peers typically are not subject to federal or state income taxes, but must pay out a portion of their taxable income to shareholders. Due to our effective tax management policies, we have not historically been a significant payer of income taxes. This has allowed us to retain our internally generated cash flows but has also resulted in large expenses for deferred taxes as required by GAAP. The treatment of deferred taxes is the single biggest difference between EBDT and FFO. We intend to continue to report both EBDT and FFO during the fiscal year ending January 31, 2013. Effective February 1, 2013, we will only report FFO and remove deferred taxes and any other industry accepted exclusion to arrive at Adjusted FFO to be more comparable to our industry peers.

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, FFO and EBDT bridges, reconciliation of net earnings to FFO and EBDT, retail and office lease expirations, significant retail and office tenants, and our development pipeline. We believe this information will give interested parties a better understanding and more information about our operating performance. The term “comparable,” which is used throughout this document, is generally defined as including properties that were open and operated in both the three months ended April 30, 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 is used to assess operating performance and resource allocation of the operating properties within 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 the overall performance of our operating portfolio 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.

3

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial and Operating Information

Corporate Headquarters

Forest City Enterprises, Inc.

Terminal Tower

50 Public Square, Suite 1100

Cleveland, Ohio 44113

Annual Report on Form 10-K

A copy of the Annual Report on Form 10-K as filed with the Securities and Exchange Commission for the fiscal year ended January 31, 2012 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.

4

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet Information – April 30, 2012 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties
Residential	$	1,597,234		$	34,795		$	1,311,034		$	2,873,473
Commercial
Retail centers		2,686,186			71,240			1,209,501			3,824,447
Office and other buildings		2,967,531			95,935			377,334			3,248,930
Corporate and other equipment		10,621			—			—			10,621
Total completed rental properties		7,261,572			201,970			2,897,869			9,957,471
Projects under construction
Residential		43,591			1,326			23,195			65,460
Commercial
Retail centers		559,811			224			3,940			563,527
Office and other buildings		698,639			428,699			658			270,598
Total projects under construction		1,302,041			430,249			27,793			899,585
Projects under development
Residential		820,262			177,683			18,355			660,934
Commercial
Retail centers		40,638			106			32			40,564
Office and other buildings		260,639			25,518			2,670			237,791
Total projects under development		1,121,539			203,307			21,057			939,289
Total projects under construction and development		2,423,580			633,556			48,850			1,838,874
Land held for development and sale		80,185			7,735			25,110			97,560
Total Real Estate		9,765,337			843,261			2,971,829			11,893,905
Less accumulated depreciation		(1,561,063	)		(49,664	)		(573,862	)		(2,085,261	)
Real Estate, net		8,204,274			793,597			2,397,967			9,808,644
Cash and equivalents		287,678			10,704			59,753			336,727
Restricted cash and escrowed funds		385,116			60,158			104,034			428,992
Notes and accounts receivable, net		375,974			20,357			31,299			386,916
Investments in and advances to unconsolidated entities		619,510			(136,395	)		(522,218	)		233,687
Lease and mortgage procurement costs, net		268,368			8,641			58,358			318,085
Prepaid expenses and other deferred costs, net		227,955			34,012			21,242			215,185
Intangible assets, net		104,247			3			10,959			115,203
Land held for divestiture		58,114			14,177			44,598			88,535
Total Assets	$	10,531,236		$	805,254		$	2,205,992		$	11,931,974

5

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheet Information – April 30, 2012 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Liabilities and Equity
Liabilities
Mortgage debt and notes payable, nonrecourse
Completed rental properties
Residential	$	1,012,242		$	25,820		$	989,090		$	1,975,512
Commercial
Retail centers		1,737,819			64,980			969,023			2,641,862
Office and other buildings		2,070,003			72,940			300,446			2,297,509
Total completed rental properties		4,820,064			163,740			2,258,559			6,914,883
Projects under construction
Residential		13,711			148			13,776			27,339
Commercial
Retail centers		300,229			—			—			300,229
Office and other buildings		287,057			180,317			—			106,740
Total projects under construction		600,997			180,465			13,776			434,308
Projects under development
Residential		234,869			55,854			—			179,015
Commercial
Retail centers		—			—			—			—
Office and other buildings		—			—			2,887			2,887
Total projects under development		234,869			55,854			2,887			181,902
Total projects under construction and development		835,866			236,319			16,663			616,210
Land held for development and sale		15,775			1,577			12,434			26,632
Total Mortgage debt and notes payable, nonrecourse		5,671,705			401,636			2,287,656			7,557,725
Bank revolving credit facility		—			—			—			—
Senior and subordinated debt		1,038,610			—			—			1,038,610
Construction payables		207,064			65,235			13,264			155,093
Operating accounts payable and accrued expenses		581,895			35,631			160,174			706,438
Accrued derivative liability		165,500			—			17,499			182,999
Deferred profit on NY retail joint venture transaction		114,465			—			—			114,465
Total Accounts payable, accrued expenses and other liabilities		1,068,924			100,866			190,937			1,158,995
Cash distributions and losses in excess of investments in unconsolidated entities		278,756			(27,173	)		(284,792	)		21,137
Deferred income taxes		448,520			—			—			448,520
Mortgage debt and notes payable, nonrecourse on land held for divestiture		18,171			1,721			12,191			28,641
Total Liabilities		8,524,686			477,050			2,205,992			10,253,628
Redeemable Noncontrolling Interest		230,438			230,438			—			—
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss		1,606,664			—			—			1,606,664
Accumulated other comprehensive loss		(114,339	)		—			—			(114,339	)
Total Shareholders’ Equity		1,492,325			—			—			1,492,325
Noncontrolling interest		283,787			97,766			—			186,021
Total Equity		1,776,112			97,766			—			1,678,346
Total Liabilities and Equity	$	10,531,236		$	805,254		$	2,205,992		$	11,931,974

6

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

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

							Plus
	Full			Less			Unconsolidated			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties
Residential	$	1,584,403		$	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

7

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

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

							Plus
	Full			Less			Unconsolidated			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Liabilities and Equity
Liabilities
Mortgage debt and notes payable, nonrecourse
Completed rental properties
Residential	$	1,008,576		$	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			1,222,020
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

8

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Earnings Information – Three Months Ended April 30, 2012 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	296,652		$	12,561		$	101,564		$	292		$	385,947
Expenses
Operating expenses		166,851			9,057			45,184			141			203,119
Depreciation and amortization		52,833			957			19,161			—			71,037
Impairment of real estate		1,381			—			—			—			1,381
		221,065			10,014			64,345			141			275,537
Interest expense		(58,516	)		(2,724	)		(26,332	)		(97	)		(82,221	)
Amortization of mortgage procurement costs		(2,869	)		(83	)		(837	)		—			(3,623	)
Loss on early extinguishment of debt		(719	)		(188	)		—			—			(531	)
Interest and other income		10,679			466			210			—			10,423
Net gain on disposition of full or partial interests in rental properties		—			—			—			7,914			7,914
Earnings before income taxes		24,162			18			10,260			7,968			42,372
Income tax expense
Current		1,129			—			—			511			1,640
Deferred		8,444			—			—			3,019			11,463
		9,573			—			—			3,530			13,103
Equity in earnings (loss) of unconsolidated entities		3,773			30			(10,260	)		—			(6,517	)
Earnings from continuing operations		18,362			48			—			4,438			22,752
Discontinued operations, net of tax:
Operating earnings from rental properties		41			8			—			(33	)		—
Gain on disposition of rental properties		5,370			965			—			(4,405	)		—
		5,411			973			—			(4,438	)		—
Net earnings		23,773			1,021			—			—			22,752
Noncontrolling Interests
Earnings from continuing operations attributable to noncontrolling interests		(48	)		(48	)		—			—			—
Earnings from discontinued operations attributable to noncontrolling interests		(973	)		(973	)		—			—			—
		(1,021	)		(1,021	)		—			—			—
Net earnings attributable to Forest City Enterprises, Inc.	$	22,752		$	—		$	—		$	—		$	22,752
Preferred dividends		(3,850	)		—			—			—			(3,850	)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders	$	18,902		$	—		$	—		$	—		$	18,902

9

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Consolidated Earnings Information – Three Months Ended April 30, 2011 (Unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Noncontrolling			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	304,180		$	12,498		$	82,714		$	9,252		$	383,648
Expenses
Operating expenses		160,689			7,400			37,684			6,679			197,652
Depreciation and amortization		55,853			1,638			13,690			1,626			69,531
Impairment of real estate		4,835			—			—			—			4,835
		221,377			9,038			51,374			8,305			272,018
Interest expense		(66,181	)		(3,832	)		(23,107	)		(1,236	)		(86,692	)
Amortization of mortgage procurement costs		(2,882	)		(130	)		(618	)		(262	)		(3,632	)
Loss on extinguishment of debt		(296	)		(4	)		—			—			(292	)
Interest and other income		15,507			(140	)		117			—			15,764
Net gain on disposition of full or partial interests in rental properties		9,561			—			12,567			10,038			32,166
Earnings (loss) before income taxes		38,512			(646	)		20,299			9,487			68,944
Income tax expense
Current		17,633			—			—			578			18,211
Deferred		116			—			—			3,921			4,037
		17,749			—			—			4,499			22,248
Equity in earnings (loss) of unconsolidated entities		19,994			48			(20,299	)		—			(353	)
Earnings (loss) from continuing operations		40,757			(598	)		—			4,988			46,343
Discontinued operations, net of tax:
Operating earnings from rental properties		997			1,335			—			338			—
Gain on disposition of rental properties		5,719			393			—			(5,326	)		—
		6,716			1,728			—			(4,988	)		—
Net earnings		47,473			1,130			—			—			46,343
Noncontrolling Interests
Loss from continuing operations attributable to noncontrolling interests		598			598			—			—			—
Earnings from discontinued operations attributable to noncontrolling interests		(1,728	)		(1,728	)		—			—			—
		(1,130	)		(1,130	)		—			—			—
Net earnings attributable to Forest City Enterprises, Inc.	$	46,343		$	—		$	—		$	—		$	46,343
Preferred dividends		(3,850	)		—			—			—			(3,850	)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders	$	42,493		$	—		$	—		$	—		$	42,493

10

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Net Asset Value Components – April 30, 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 - April 30, 2012
Completed Rental Properties (“CRP”)
(Dollars in millions at pro-rata)	Q1 2012 NOI(1)			Annualized NOI(2)			Net Stabilized Adjustments (3)			Annualized Stabilized NOI			Nonrecourse Debt(4)
				A			B			=A + B
Commercial Real Estate
Retail	$	59.0		$	236.0		$	4.9		$	240.9		$	(2,641.9	)
Office		62.8			251.2			0.5			251.7			(2,297.5	)
Other		(6.3	)		(25.2	)		9.7			(15.5	)
Total Commercial Real Estate	$	115.5		$	462.0		$	15.1		$	477.1		$	(4,939.4	)
Residential Real Estate
Apartments	$	38.1		$	152.4		$	(2.8	)	$	149.6		$	(1,975.5	)
Subsidized Senior Housing(5)		4.4			17.6			—			17.6
Military Housing		7.3			29.2			(14.2	)		15.0
Other		(3.3	)		(13.2	)		—			(13.2	)
Total Residential Real Estate	$	46.5		$	186.0		$	(17.0	)	$	169.0		$	(1,975.5	)
Total Rental Properties	$	162.0		$	648.0		$	(1.9	)	$	646.1		$	(6,914.9	)
Development Pipeline Debt Adj. NET(6)														454.8
Adjusted Total Rental Properties	$	162.0		$	648.0		$	(1.9	)	$	646.1		$	(6,460.1	)
Development Pipeline
										Book Value			Nonrecourse Debt
Westchester's Ridge Hill(Adjusted for amounts included in CRP)(6)										$	346.2		$	(193.7	)
8 Spruce Street(Adjusted for amounts included in CRP)(6)											427.4			(261.1	)
Total development pipeline adjustments											773.6			(454.8	)
Projects under construction(4)											899.6			(434.3	)
Adjusted projects under construction										$	1,673.2		$	(889.1	)
Projects under development(4)										$	939.3		$	(181.9	)
Land held for development and sale(4)										$	97.6		$	(26.6	)
Other Tangible Assets
										Book Value (4)			Nonrecourse Debt(4)
Cash and equivalents										$	336.7
Restricted cash and escrowed funds										$	429.0
Notes and accounts receivable, net(7)										$	386.9
Net investments and advances to unconsolidated entities										$	212.6
Prepaid expenses and other deferred costs, net										$	215.2
Land held for divestiture										$	88.5		$	(28.6	)
Recourse Debt and Other Liabilities
										Book Value (4)
Bank revolving credit facility										$	—
Senior and subordinated debt										$	(1,038.6	)
Less: convertible debt										$	599.2
Construction payables										$	(155.1	)
Operating accounts payable and accrued expenses(8)										$	(706.4	)
Weighted Average Shares Outstanding—Diluted
Number of shares for the three months ended April 30, 2012(In millions)											221.8

11

Forest City Enterprises, Inc. and Subsidiaries

Selected Financial Information

Net Asset Value Components – April 30, 2012(continued)

(1) Pro-rata Q1 2012 NOI is reconciled to NOI at full consolidation by Product Group for the three months ended April 30, 2012 in the Supplemental Operating Information section of this supplemental package. NOI generated from the casino land sale of $36.5 million has been excluded from total NOI used in the Net Asset Value Component schedule.

(2) Pro-rata annualized NOI is calculated by taking the Q1 2012 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) Except forWestchester’s Ridge Hill and8 Spruce Street, NOI for the properties in lease up are reflected at 5% of the pro-rata cost disclosed in our Development Pipeline disclosure (Current Year and 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. See note 6, which describes the treatment ofWestchester’s Ridge Hill and8 Spruce Street.

b) 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 the nearest comparable GAAP measure.

(4) Amounts are derived from the respective pro-rata balance sheet line item as of April 30, 2012 and are reconciled to their GAAP equivalents in the Selected Financial Information section of this supplemental package.

(5) Represents limited-distribution subsidized senior housing properties.

(6) Westchester’s Ridge Hill and8 Spruce Street have their assets shown in the Development Pipeline section of the model.Westchester’s Ridge Hill, as of April 30, 2012, had $346.2 million of costs incurred at pro-rata consolidation and $193.7 million of mortgage debt at pro-rata consolidation which were transferred to CRP.8 Spruce Street, as of April 30, 2012, had $427.4 million of costs incurred at pro-rata consolidation and $261.1 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 and8 Spruce Street as NAV components we have made the following adjustments:

a) All costs and associated debt forWestchester’s Ridge Hill and 8 Spruce Streetfor 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.

(7) Includes $157.7 million of straight-line rent receivable (net of $15.9 million of allowance for doubtful accounts).

(8) Includes $41.7 million of straight-line rent payable.

12

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Occupancy Data - April 30, 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.

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

	Occupancy As of April 30, 2012	Average Occupancy Year-to-Date April 30, 2012	Occupancy As of April 30, 2011	Average Occupancy Year-to-Date April 30, 2011
Retail
Comparable	91.1%	91.0%	91.1%	91.1%
Total	89.0%	89.0%	91.1%	91.1%
Office
Comparable	91.5%	91.2%	91.0%	90.2%
Total	89.5%	89.3%	89.6%	88.7%
Residential(1)
Comparable	94.2%	94.9%	93.6%	94.6%
Total	93.5%	94.0%	92.6%	91.5%

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 limited-distribution subsidized senior housing units.

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

13

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 duration of each rolling 12-month period 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 duration of each comparable period 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.

14

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
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	%
1st Quarter 2012		38		88,993	$	58.67	$	53.37		10	%
Total—12 months		175		467,090	$	59.24	$	54.02		10	%

Specialty Retail Centers—Quarterly⁽³⁾

	Number				Contractual				Cash Basis %
	of Leases		GLA		Rent Per		Prior Rent Per		Change over
Quarter	Signed		Signed		Square Foot (1)(2)		Square Foot (1)(2)		Prior Rent
2nd Quarter 2011		3		13,779	$	20.79	$	20.58		1	%
3rd Quarter 2011		10		34,385	$	62.29	$	56.11		11	%
4th Quarter 2011		9		83,671	$	31.12	$	27.86		12	%
1st Quarter 2012		7		29,117	$	41.95	$	41.56		1	%
Total—12 months		29		160,952	$	38.85	$	35.75		9	%

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

	Number		Number						Contractual		Expiring		Cash Basis %
	of Leases		of Leases		GLA		GLA		Rent Per		Rent Per		Change over
Quarter	Signed		Expired		Signed		Expired		Square Foot (2)		Square Foot (2)		Prior Rent
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	%
1st Quarter 2012		38		28		340,382		239,112	$	27.40	$	28.01		(2	%)
Total—12 months		136		107		1,349,993		1,211,323	$	27.90	$	27.23		2	%

(1) Retail contractual rent per square foot includes base 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 base rate as of rental commencement. For all expiring leases, contractual rent per square foot is the base rate at the time of expiration, plus any applicable escalations.

(3) Prior periods have been recast to exclude leases atQuebec Square, a specialty retail center located in Denver, Colorado, which was sold Q1-12.

Apartment Communities

			Monthly Average Residential Rental Rates (2)							Average Residential Occupancy
	Leasable		Three Months Ended							Year-to-Date
	Units at		April 30,							April 30,
Comparable Apartment Communities(1)	Pro-Rata %		2012		2011		% Change			2012			2011			% Change
Core Markets		8,221	$	1,529	$	1,448		5.6	%		95.7	%		94.7	%		1.0	%
Non-Core Markets		9,081	$	862	$	829		4.0	%		93.5	%		94.4	%		(0.9	%)
Total Comparable Apartments		17,302	$	1,179	$	1,123		5.0	%		94.9	%		94.6	%		0.3	%

(1) Includes apartment communities completely opened and operated in both periods presented. Excludes all military and limited-distribution subsidized senior housing units. These apartment communities include units leased at affordable apartment rates which provide a discount from average market rental rates. As of April 30, 2012, 21.9% of our core market leasable units and 1.7% of our non-core market leasable units were affordable housing.

(2) Represents gross potential rent less concessions.

15

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Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Comparable NOI is defined as NOI from properties opened and operated in the three months ended April 30, 2012 and 2011. The schedules below present Pro-Rata Comparable NOI for the three months ended April 30, 2012.

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

	Three Months Ended
	April 30, 2012
Retail		3.0	%
Office		3.2	%
Residential		11.0	%
Total		4.8	%

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
	Three Months Ended
	April 30, 2012			January 31, 2012			October 31, 2011			July 31, 2011			April 30, 2011
Retail		3.0	%		4.7	%		(1.5	%)		1.6	%		2.6	%
Office		3.2	%		0.5	%		(7.6	%)		3.1	%		(2.5	%)
Residential		11.0	%		11.9	%		12.0	%		3.1	%		4.8	%
Total (1)		4.8	%		4.6	%		(1.4	%)		2.6	%		0.9	%

Annual Historical Trends
	Years Ended
	January 31, 2012			January 31, 2011			January 31, 2010
Retail		2.6	%		2.2	%		(3.9	%)
Office		(2.6	%)		2.1	%		5.4	%
Residential		7.3	%		4.3	%		(3.9	%)
Total (1)		1.4	%		2.5	%		(0.7	%)

(1) Prior periods have been recast to exclude hotels. The Company believes this change will improve disclosure by allowing investors to see the overall total comparable NOI results of strictly our core product types.

16

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

	Net Operating Income(dollars in thousands)
	Three Months Ended April 30, 2012											Three Months Ended April 30, 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)			Interest			Operations			(Non-GAAP)			(GAAP)			(Non-GAAP)
Commercial Group
Retail
Comparable	$	58,865		$	1,773		$	—	$	57,092		$	57,337		$	1,920		$	—		$	55,417			2.7	%		3.0	%
Total		60,917			2,076			148		58,989			66,791			2,840			549			64,500
Office Buildings
Comparable		60,865			2,251			—		58,614			58,873			2,057			—			56,816			3.4	%		3.2	%
Total		65,185			2,408			—		62,777			61,998			2,026			2,134			62,106
Hotels		1,096			—			—		1,096			956			—			(446	)		510
Land Sales(1)		36,484			—			—		36,484			42,585			(782	)		—			43,367
Other(2)		(9,371	)		(2,011	)		—		(7,360	)		719			(54	)		—			773
Total Commercial Group
Comparable		119,730			4,024			—		115,706			116,210			3,977			—			112,233			3.0	%		3.1	%
Total		154,311			2,473			148		151,986			173,049			4,030			2,237			171,256
Residential Group
Apartments
Comparable		35,690			634			—		35,056			32,085			496			—			31,589			11.2	%		11.0	%
Total		38,963			807			—		38,156			31,585			444			—			31,141
Subsidized Senior Housing		4,400			39			—		4,361			3,961			97			—			3,864
Military Housing		7,542			195			—		7,347			5,968			—			—			5,968
Land Sales		—			—			—		—			158			16			—			142
Other(2)		(3,187	)		143			—		(3,330	)		98			143			—			(45	)
Total Residential Group
Comparable		35,690			634			—		35,056			32,085			496			—			31,589			11.2	%		11.0	%
Total		47,718			1,184			—		46,534			41,770			700			—			41,070
Total Rental Properties
Comparable		155,420			4,658			—		150,762			148,295			4,473			—			143,822			4.8	%		4.8	%
Total		202,029			3,657			148		198,520			214,819			4,730			2,237			212,326
Land Development Group		3,075			343			—		2,732			2,251			276			—			1,975
The Nets		(6,958	)		—			—		(6,958	)		(304	)		—			—			(304	)
Corporate Activities		(13,015	)		—			—		(13,015	)		(14,931	)		—			—			(14,931	)
Grand Total	$	185,131		$	4,000		$	148	$	181,279		$	201,835		$	5,006		$	2,237		$	199,066

(1) Includes $36,484 and $42,622 of NOI generated from the casino land sale at full and pro-rata consolidation for the three months ended April 30, 2012 and 2011, respectively.

(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.

17

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income by Product Type

Pro-Rata Consolidation (dollars in thousands)

(1) Includes limited-distribution 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.

18

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.

19

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

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

	Three Months Ended April 30, 2012															Three Months Ended April 30, 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	$	296,652		$	12,561		$	101,564		$	292		$	385,947		$	304,180		$	12,498		$	82,714		$	9,252		$	383,648
Exclude straight-line rent adjustment (1)		(5,624	)		—			—			(3	)		(5,627	)		(3,099	)		—			—			(336	)		(3,435	)
Adjusted revenues		291,028			12,561			101,564			289			380,320			301,081			12,498			82,714			8,916			380,213
Add interest and other income		10,679			466			210			—			10,423			15,507			(140	)		117			—			15,764
Add equity in earnings (loss) of unconsolidated entities		3,773			30			(10,260	)		—			(6,517	)		19,994			48			(20,299	)		—			(353	)
Exclude gain on disposition of unconsolidated entities		—			—			—			—			—			(12,567	)		—			12,567			—			—
Exclude depreciation and amortization of unconsolidated entities		19,998			—			(19,998	)		—			—			14,308			—			(14,308	)		—			—
Exclude interest expense of unconsolidated entities		26,332			—			(26,332	)		—			—			23,107			—			(23,107	)		—			—
Adjusted total income		351,810			13,057			45,184			289			384,226			361,430			12,406			37,684			8,916			395,624
Operating expenses		166,851			9,057			45,184			141			203,119			160,689			7,400			37,684			6,679			197,652
Add back non-Real Estate depreciation and amortization (b)		620			—			—			—			620			702			—			—			—			702
Exclude straight-line rent adjustment (2)		(792	)		—			—			—			(792	)		(1,211	)		—			—			—			(1,211	)
Exclude preference payment		—			—			—			—			—			(585	)		—			—			—			(585	)
Adjusted operating expenses		166,679			9,057			45,184			141			202,947			159,595			7,400			37,684			6,679			196,558
Net operating income		185,131			4,000			—			148			181,279			201,835			5,006			—			2,237			199,066
Interest expense		(58,516	)		(2,724	)		(26,332	)		(97	)		(82,221	)		(66,181	)		(3,832	)		(23,107	)		(1,236	)		(86,692	)
Loss on early extinguishment of debt		(719	)		(188	)		—			—			(531	)		(296	)		(4	)		—			—			(292	)
Equity in (earnings) loss of unconsolidated entities		(3,773	)		(30	)		10,260			—			6,517			(19,994	)		(48	)		20,299			—			353
Gain on disposition of unconsolidated entities		—			—			—			—			—			12,567			—			—			—			12,567
Depreciation and amortization of unconsolidated entities		(19,998	)		—			19,998			—			—			(14,308	)		—			14,308			—			—
Interest expense of unconsolidated entities		(26,332	)		—			26,332			—			—			(23,107	)		—			23,107			—			—
Net gain on disposition of rental properties and partial interests in rental properties		—			—			—			7,914			7,914			9,561			—			—			10,038			19,599
Impairment of consolidated real estate		(1,381	)		—			—			—			(1,381	)		(4,835	)		—			—			—			(4,835	)
Depreciation and amortization—Real Estate Groups (a)		(52,213	)		(957	)		(19,161	)		—			(70,417	)		(55,151	)		(1,638	)		(13,690	)		(1,626	)		(68,829	)
Amortization of mortgage procurement costs—Real Estate Groups (c)		(2,869	)		(83	)		(837	)		—			(3,623	)		(2,882	)		(130	)		(618	)		(262	)		(3,632	)
Straight-line rent adjustment (1) + (2)		4,832			—			—			3			4,835			1,888			—			—			336			2,224
Preference payment		—			—			—			—			—			(585	)		—			—			—			(585	)
Earnings (loss) before income taxes		24,162			18			10,260			7,968			42,372			38,512			(646	)		20,299			9,487			68,944
Income tax expense		(9,573	)		—			—			(3,530	)		(13,103	)		(17,749	)		—			—			(4,499	)		(22,248	)
Equity in earnings (loss) of unconsolidated entities		3,773			30			(10,260	)		—			(6,517	)		19,994			48			(20,299	)		—			(353	)
Earnings (loss) from continuing operations		18,362			48			—			4,438			22,752			40,757			(598	)		—			4,988			46,343
Discontinued operations, net of tax		5,411			973			—			(4,438	)		—			6,716			1,728			—			(4,988	)		—
Net earnings		23,773			1,021			—			—			22,752			47,473			1,130			—			—			46,343
Noncontrolling interests
(Earnings) loss from continuing operations attributable to noncontrolling interests		(48	)		(48	)		—			—			—			598			598			—			—			—
Earnings from discontinued operations attributable to noncontrolling interests		(973	)		(973	)		—			—			—			(1,728	)		(1,728	)		—			—			—
Noncontrolling interests		(1,021	)		(1,021	)		—			—			—			(1,130	)		(1,130	)		—			—			—
Net earnings attributable to Forest City Enterprises, Inc.	$	22,752		$	—		$	—		$	—		$	22,752		$	46,343		$	—		$	—		$	—		$	46,343
Preferred dividends		(3,850	)		—			—			—			(3,850	)		(3,850	)		—			—			—			(3,850	)
Net earnings attributable to Forest City Enterprises, Inc. common shareholders	$	18,902		$	—		$	—		$	—		$	18,902		$	42,493		$	—		$	—		$	—		$	42,493
(a) Depreciation and amortization—Real Estate Groups	$	52,213		$	957		$	19,161		$	—		$	70,417		$	55,151		$	1,638		$	13,690		$	1,626		$	68,829
(b) Depreciation and amortization—Non-Real Estate		620			—			—			—			620			702			—			—			—			702
Total depreciation and amortization	$	52,833		$	957		$	19,161		$	—		$	71,037		$	55,853		$	1,638		$	13,690		$	1,626		$	69,531
(c) Amortization of mortgage procurement costs—Real Estate Groups	$	2,869		$	83		$	837		$	—		$	3,623		$	2,882		$	130		$	618		$	262		$	3,632
(d) Amortization of mortgage procurement costs—Non-Real Estate		—			—			—			—			—			—			—			—			—			—
Total amortization of mortgage procurement costs	$	2,869		$	83		$	837		$	—		$	3,623		$	2,882		$	130		$	618		$	262		$	3,632

20

Results of Operations

Net Earnings Attributable to Forest City Enterprises, Inc.—Net earnings attributable to Forest City Enterprises, Inc. for the three months ended April 30, 2012 was $22,752,000 versus $46,343,000 for the three months ended April 30, 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 period is primarily attributable to the following decreases, which are net of noncontrolling interest:

• $42,622,000 related to the 2011 sale of an approximate 6 acre land parcel and air rights for development of a casino in downtown Cleveland, Ohio;

• $12,567,000 related to the 2011 gains on disposition of our unconsolidated investments inMetropolitan Lofts andTwin Lake Towers, apartment communities in Los Angeles, California and Denver, Colorado, respectively;

• $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;

• $6,654,000 related to a 2012 increase in allocated losses from our equity investment in The Nets;

• $5,157,000 related to a decrease in income recognized on the sale of state and federal Historic Preservation Tax Credits and New Market Tax Credits in 2012 compared to 2011; and

• $2,124,000 related to the 2011 gain on disposition ofCharleston Marriott, a hotel in Charleston, West Virginia, offset by the 2012 gain on disposition ofQuebec Square, a specialty retail center in Denver, Colorado.

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

• $36,484,000 related to the 2012 sale of an approximate 10 acre land parcel and air rights for development of a casino in downtown Cleveland, Ohio;

• $3,678,000 related to the change in fair market value of certain derivatives between the comparable periods, which was marked to market through interest expense as a result of the derivatives not qualifying for hedge accounting;

• $3,454,000 related to the 2012 decrease in impairment charges of consolidated entities; and

• $9,145,000 due to decreased income tax expense attributable to both continuing and discontinued operations primarily related to the fluctuations in earnings before income taxes and pre-tax earnings, including gains in discontinued operations. These fluctuations are primarily related 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 April 30, 2012 was $202,029,000 compared to $214,819,000 for the three months ended April 30, 2011, a 6.0% decrease.

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 April 30, 2012 was $198,520,000 compared to $212,326,000 for the three months ended April 30, 2011, a 6.5% decrease. The fluctuation in total NOI from Rental Properties has similar components to the change in FFO and EBDT for the period as described in the following discussion of FFO and EBDT.

Comparable NOI increased 4.8% for the three months ended April 30, 2012 compared to the prior year period. Retail, office and our residential portfolio comparable NOI increased 3.0%, 3.2% and 11.0%, respectively.

21

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 three months ended April 30, 2012 we invested $22,716,000 at pro-rata consolidation ($18,902,000 at full consolidation) in capital expenditures for our operating portfolio as compared to $18,499,000 at pro-rata consolidation ($14,257,000 at full consolidation) during the three months ended April 30, 2011.

FFO—The majority of our peers in the publically traded real estate industry are REITs and report operations using FFO as defined by NAREIT. Although we are not a REIT, we feel it is important to publish this measure to allow for easier comparison of our performance to our peers.

FFO is defined by NAREIT as net earnings excluding the following items: i) gain (loss) on disposition of rental properties, divisions and other investments (net of tax); ii) non-cash charges for real estate depreciation and amortization; iii) impairment of depreciable real estate (net of tax); iv) extraordinary items (net of tax); and v) cumulative or retrospective effect of change in accounting principle (net of tax).

FFO for the three months ended April 30, 2012 of $89,152,000 decreased by $8,424,000 or 8.6% compared to $97,576,000 for the three months ended April 30, 2011. The fluctuations in FFO by Segment are as follows:

• Our Commercial and Residential Segments combined provided a pre-tax FFO decrease of $5,955,000. This is primarily related to decreased income recognized from state and federal Historic Preservation and New Market tax credits of $6,333,000, decreased FFO on the casino land sale in 2012 compared to 2011 of $6,138,000 and reduced FFO from properties sold of $5,643,000. These decreases in the portfolio were partially offset by increased NOI on our mature portfolio of $6,940,000, decreased interest expense on our mature portfolio of $3,603,000, increased FFO from the change in fair market value of derivatives between the comparable periods which were marked to market through interest expense of $3,580,000 and increased FFO for the adjustments to recognize rental revenues and rental expenses using the straight-line method of $2,611,000;

• Our Land Segment provided a pre-tax FFO increase of $1,419,000, primarily due to the 2011 impairment of Land Group projects of $1,400,000;

• The Nets provided a pre-tax FFO decrease of $6,654,000 due to the increase in our allocated losses;

• Corporate pre-tax FFO increased $2,240,000 primarily due to decreased professional fees associated with strategic planning and process improvement initiatives and other general corporate expenses; and

• FFO was favorably impacted by a smaller tax expense of $526,000 compared to prior year.

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.

22

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.

EBDT for the three months ended April 30, 2012 of $102,432,000 decreased by $24,944,000 or 19.6% compared to $127,376,000 for the three months ended April 30, 2011. The fluctuations in EBDT by Segment are as follows:

• Our Commercial and Residential Segments combined provided a pre-tax EBDT decrease of $11,125,000. This is primarily related to decreased income recognized from state and federal Historic Preservation and New Market tax credits of $6,333,000, decreased EBDT on the casino land sale in 2012 compared to 2011 of $6,138,000 and reduced EBDT from properties sold of $5,643,000. These decreases in the portfolio were partially offset by increased NOI on our mature portfolio of $6,940,000, decreased interest expense on our mature portfolio of $3,603,000 and increased EBDT from the change in fair market value of derivatives between the comparable periods which were marked to market through interest expense of $3,580,000;

• Our Land Segment remained flat;

• The Nets provided a pre-tax EBDT decrease of $6,654,000 due to the increase in our allocated losses;

• Corporate pre-tax EBDT increased $2,240,000 primarily due to decreased professional fees associated with strategic planning and process improvement initiatives and other general corporate expenses; and

• EBDT was unfavorably impacted by a smaller current tax benefit of $9,389,000 compared to prior year.

23

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

24

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

25

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Funds From Operations (FFO)

The table below will illustrate the differences between FFO and our historical reporting of EBDT. The table will also reconcile these non-GAAP measures to net earnings, the most comparable GAAP measure.

	Three Months Ended April 30, 2012						Three Months Ended April 30, 2011
	FFO			EBDT			FFO			EBDT
	(in thousands)						(in thousands)
Net earnings attributable to Forest City Enterprises, Inc.	$	22,752		$	22,752		$	46,343		$	46,343
Depreciation and Amortization—Real Estate Groups		70,417			70,417			68,829			68,829
Impairment of depreciable rental properties		1,381			1,381			3,435			3,435
Gain on disposition of rental properties and partial interests in rental properties		(7,914	)		(7,914	)		(32,166	)		(32,166	)
Income tax expense (benefit) on non-operating earnings (loss)—current and deferred(1)
Gain on disposition of rental properties and partial interests in rental properties		3,052			3,052			12,467			12,467
Impairment of depreciable rental properties		(536	)		(536	)		(1,332	)		(1,332	)
Straight-line rent adjustments					(4,835	)					(2,224	)
Impairment of Land Group projects					—						1,400
Deferred taxes on impairment of Land Group projects(1)					—						(543	)
Deferred income tax expense on operating earnings(1)					14,492						24,950
Amortization of mortgage procurement costs—Real Estate Groups					3,623						3,632
Preference payment					—						585
Allowance for projects under development revision					—						2,000
FFO/EBDT	$	89,152		$	102,432		$	97,576		$	127,376

EBDT/FFO Per Share Data - Quarterly Historical Trends
	Three Months Ended
	April 30,		January 31,			October 31,		July 31,		April 30,
	2012		2012(2)			2011		2011		2011
Numerator(in thousands):
EBDT	$	102,432	$	58,825		$	77,477	$	70,706	$	127,376
If-Converted Method (adjustments for interest, net of tax):
3.625% Puttable Senior Notes due 2014		1,110		1,110			1,110		1,110		1,110
5.00% Convertible Senior Notes due 2016		382		382			382		413		688
4.25% Convertible Senior Notes due 2018		2,277		2,277			2,277		329		—
Total If-Converted Method interest adjustments		3,769		3,769			3,769		1,852		1,798
EBDT for per share data	$	106,201	$	62,594		$	81,246	$	72,558	$	129,174
FFO	$	89,152	$	(40,714	)	$	61,198	$	60,129	$	97,576
If-Converted Method (adjustments for interest, net of tax) (see above):		3,769		—			3,769		1,852		1,798
FFO for per share data	$	92,921	$	(40,714	)	$	64,967	$	61,981	$	99,374
Denominator
Weighted average shares outstanding—Basic		169,206,594		169,157,392			169,150,429		168,788,754		165,498,904
Effect of stock options and restricted stock		937,272		646,943			566,701		1,019,210		1,054,102
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			33,499,503		19,912,982		20,225,204
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		221,840,381		221,500,850			221,413,645		207,917,958		204,975,222
EBDT Per Share	$	0.48	$	0.28		$	0.37	$	0.35	$	0.63
FFO Per Share	$	0.42	$	(0.24	)	$	0.29	$	0.30	$	0.48

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Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

FFO(continued)

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

	Three Months Ended April 30,
	2012			2011
Current taxes
Operating earnings	$	(3,736	)	$	(12,671	)
Gain on disposition of rental properties and partial interests in rental properties		4,865			30,304
Subtotal		1,129			17,633
Discontinued operations
Operating earnings		(169	)		(623	)
Gain on disposition of rental properties and partial interests in rental properties		680			1,201
Subtotal		511			578
Total Current taxes		1,640			18,211
Deferred taxes
Operating earnings		14,302			24,540
Gain on disposition of rental properties and partial interests in rental properties		(5,322	)		(22,549	)
Impairment of depreciable rental properties		(536	)		(1,332	)
Impairment of Land Group projects		—			(543	)
Subtotal		8,444			116
Discontinued operations
Operating earnings		190			410
Gain on disposition of rental properties and partial interests in rental properties		2,829			3,511
Subtotal		3,019			3,921
Total Deferred taxes		11,463			4,037
Grand Total	$	13,103		$	22,248

(2) For the three months ended January 31, 2012, the effect of 52,343,458 shares of dilutive securities were not included in the computation of diluted FFO per share because their effect is anti-dilutive due to the negative FFO for the quarter. As a result, an adjustment to FFO is not required for interest expense of $3,769,000 related to these securities.

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Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

FFO (continued)

The table below is a quarterly historical trend analysis of FFO and EBDT for the year ended January 31, 2012:

	Three Months Ended April 30, 2011						Three Months Ended July 31, 2011						Three Months Ended October 31, 2011						Three Months Ended January 31, 2012
	FFO			EBDT			FFO			EBDT			FFO			EBDT			FFO			EBDT
	(in thousands)						(in thousands)						(in thousands)						(in thousands)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	46,343		$	46,343		$	9,358		$	9,358		$	(36,801	)	$	(36,801	)	$	(105,386	)	$	(105,386	)
Depreciation and Amortization—Real Estate Groups		68,829			68,829			68,929			68,929			71,304			71,304			72,642			72,642
Impairment of depreciable rental properties		3,435			3,435			235			235			49,446			49,446			1,095			1,095
Gain on disposition of rental properties and partial interests in rental properties		(32,166	)		(32,166	)		(29,899	)		(29,899	)		(5,849	)		(5,849	)		(14,114	)		(14,114	)
Income tax expense (benefit) on non-operating earnings (loss) - current and deferred:
Gain on disposition of rental properties and partial interests in rental properties		12,467			12,467			11,597			11,597			2,275			2,275			5,473			5,473
Impairment of depreciable rental properties		(1,332	)		(1,332	)		(91	)		(91	)		(19,177	)		(19,177	)		(424	)		(424	)
Straight-line rent adjustments					(2,224	)					2,497						(3,268	)					(4,213	)
Impairment of Land Group projects					1,400						—						2,550						153,363
Deferred taxes on impairment of Land Group projects					(543	)					—						(989	)					(59,479	)
Deferred income tax expense on operating earnings					24,950						6,079						15,349						5,321
Amortization of mortgage procurement costs—Real Estate Groups					3,632						3,415						4,052						3,571
Preference payment					585						586						585						(24	)
Allowance for projects under development revision					2,000						(2,000	)					(2,000	)					1,000
FFO/EBDT	$	97,576		$	127,376		$	60,129		$	70,706		$	61,198		$	77,477		$	(40,714	)	$	58,825

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Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Retail Lease Expirations as of April 30, 2012

													AVERAGE
													BASE
	NUMBER OF		SQUARE FEET		PERCENTAGE			NET		PERCENTAGE			RENT PER
EXPIRATION	EXPIRING		OF EXPIRING		OF TOTAL			BASE RENT		OF TOTAL			SQUARE FEET
YEAR	LEASES		LEASES(3)		LEASED GLA (1)			EXPIRING(2)		BASE RENT			EXPIRING(3)
2012		212		634,085		5.08	%	$	12,995,333		5.17	%	$	26.27
2013		350		1,223,594		9.80			26,708,040		10.63			27.30
2014		295		1,077,675		8.63			21,067,186		8.38			27.67
2015		218		866,319		6.93			19,331,135		7.69			29.84
2016		265		1,404,114		11.24			31,550,161		12.55			36.38
2017		171		1,219,049		9.76			24,184,163		9.62			26.93
2018		159		745,680		5.97			19,033,415		7.57			28.90
2019		118		1,024,355		8.20			19,833,619		7.89			25.06
2020		102		810,027		6.48			16,613,119		6.61			30.55
2021		138		1,221,501		9.78			26,076,567		10.38			31.11
2022		23		391,767		3.14			4,641,654		1.85			18.10
Thereafter		66		1,872,180		14.99			29,317,826		11.66			21.52
Total		2,117		12,490,346		100.00	%	$	251,352,218		100.00	%	$	27.78

(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.

29

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Office Lease Expirations as of April 30, 2012

													AVERAGE
													BASE
	NUMBER OF		SQUARE FEET		PERCENTAGE			NET		PERCENTAGE			RENT PER
EXPIRATION	EXPIRING		OF EXPIRING		OF TOTAL			BASE RENT		OF TOTAL			SQUARE FEET
YEAR	LEASES		LEASES(3)		LEASED GLA (1)			EXPIRING(2)		BASE RENT			EXPIRING(3)
2012		82		629,105		5.54	%	$	18,223,579		6.02	%	$	35.37
2013		99		1,203,425		10.61			25,976,786		8.58			22.77
2014		80		862,748		7.60			17,803,428		5.88			33.02
2015		53		507,152		4.47			9,539,205		3.15			21.98
2016		65		1,003,898		8.85			23,101,556		7.63			29.77
2017		33		479,231		4.22			11,421,651		3.78			25.61
2018		28		1,256,726		11.08			34,721,382		11.47			32.07
2019		25		896,768		7.90			16,036,802		5.30			25.13
2020		15		1,048,425		9.24			27,922,087		9.23			33.07
2021		14		810,711		7.15			12,976,306		4.29			23.03
2022		7		150,372		1.33			7,144,146		2.36			48.07
Thereafter		29		2,497,631		22.01			97,764,456		32.31			40.98
Total		530		11,346,192		100.00	%	$	302,631,384		100.00	%	$	31.48

(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.

30

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Significant Retail Tenants as of April 30, 2012

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

	NUMBER		LEASED		PERCENTAGE OF
	OF		SQUARE		TOTAL RETAIL
TENANT	LEASES		FEET		SQUARE FEET
Bass Pro Shops, Inc.		3		510,855		4.09	%
Regal Entertainment Group		5		381,461		3.05
AMC Entertainment, Inc.		5		377,797		3.03
TJX Companies		11		347,457		2.78
The Gap		27		344,944		2.76
Dick’s Sporting Goods		6		326,866		2.62
Best Buy(1)		7		208,977		1.67
The Limited		32		196,846		1.58
Abercrombie & Fitch Stores, Inc.		26		188,604		1.51
H&M Hennes & Mauritz AB		8		141,520		1.13
Footlocker, Inc.		35		136,789		1.10
Forever 21, Inc.		8		112,661		0.90
American Eagle Outfitters, Inc.		15		85,972		0.69
Subtotal		188		3,360,749		26.91
All Others		1,929		9,129,597		73.09
Total		2,117		12,490,346		100.00	%

(1) Includes a lease for 54,927 square feet at East River Plaza, with an expiration date of January 31, 2031. In April 2012, Best Buy Co., Inc. publicly announced their intention to vacate this space.

31

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Schedule of Significant Office Tenants as of April 30, 2012

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

	LEASED		PERCENTAGE OF
	SQUARE		TOTAL OFFICE
TENANT	FEET		SQUARE FEET
City of New York		1,046,101		9.22	%
Millennium Pharmaceuticals, Inc.		698,066		6.15
U.S. Government		533,112		4.70
WellPoint, Inc.		392,514		3.46
JP Morgan Chase & Co.		383,341		3.38
Morgan Stanley & Co.		377,304		3.33
Bank of New York		323,043		2.85
National Grid		254,034		2.24
Clearbridge Advisors, LLC, a Legg Mason Company		193,249		1.70
Covington & Burling, LLP		160,565		1.41
Seyfarth Shaw, LLP		96,909		0.85
Subtotal		4,458,238		39.29
All Others		6,887,954		60.71
Total		11,346,192		100.00	%

32

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Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Openings

as of April 30, 2012

																	Cost at FCE
										Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share		Sq. ft./		Gross
					Date		FCE Legal			FCE % (a)			Consolidation		at 100%		(Non-GAAP) (c)		No. of		Leasable			Lease
Property	Location		Dev (D)		Opened		Ownership % (a)			(1)			(GAAP) (b)		(2)		(1) X (2)		Units		Area			Commitment %
2012													(in millions)
Residential:(f)
The Aster Town Center (d)		Denver, CO		D		Q1-12/Q2-12		90.0	%		90.0	%	$	10.9	$	10.9	$	9.8		85				42%
Fee Development Project
Las Vegas City Hall		Las Vegas, NV		D		Q1-12		—	(e)		—	(e)	$	0.0	$	146.2	$	0.0		270,000
Prior Two Years Openings as of April 30, 2012
Retail Centers:(f)
Westchester’s Ridge Hill (i)		Yonkers, NY		D		Q2-11/12		70.0	%		100.0	%	$	868.2	$	868.2	$	868.2		1,336,000		1,336,000	(h)	60%/68%
Village at Gulfstream Park (g) (k)		Hallandale Beach, FL		D		Q1-10		50.0	%		50.0	%		0.0		140.2		70.1		511,000		511,000		78%
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%
													$	868.2	$	1,399.0	$	1,133.6		2,374,000		2,374,000
Office:
Waterfront Station
- East 4th & West 4th Bldgs (Sold Q2-11) (l)		Washington, D.C.		D		Q1-10		45.0	%		45.0	%	$	245.9	$	245.9	$	110.7		631,000				99%
Residential: (f)
8 Spruce Street (g) (j)		Manhattan, NY		D		Q1-11/12		35.7	%		51.0	%	$	0.0	$	875.7	$	446.6		899				79%
Foundry Lofts		Washington, D.C.		D		Q4-11		100.0	%		100.0	%		57.5		57.5		57.5		170				97%
Presidio Landmark		San Francisco, CA		D		Q3-10		100.0	%		100.0	%		96.6		96.6		96.6		161				98%
													$	154.1	$	1,029.8	$	600.7		1,230
Total Prior Two Years Openings (m)													$	1,268.2	$	2,674.7	$	1,845.0
Recap of Total Prior Two Years Openings
Total 2011													$	925.7	$	1,801.4	$	1,372.3
Total 2010														342.5		873.3		472.7
Total Prior Two Years Openings (m)													$	1,268.2	$	2,674.7	$	1,845.0

See footnotes on the following pages.

33

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Projects Under Construction

as of April 30, 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: (f)
The Yards—Boilermaker Shops	Washington, D.C.		Q3-12		100.0	%		100.0	%	$	19.6	$	19.6	$	19.6		40,000		40,000			74	%
Office:
Johns Hopkins Parking Garage	Baltimore, MD		Q3-12		85.0	%		100.0	%	$	29.9	$	29.9	$	29.9		492,000
Residential:
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	%		54.6		54.6		54.6		203
										$	70.0	$	70.0	$	68.5		321
Arena:
Barclays Center	Brooklyn, NY		Q3-12		34.0	%		34.0	%	$	934.3	$	934.3	$	317.7		670,000		18,000 seats	(n)		70	% (o)
Total Under Construction (p)										$	1,053.8	$	1,053.8	$	435.7
Fee Development Projects
Dept. of Health & Mental Hygiene (DHMH)	Baltimore, MD		Q2-14		—	(e)		—	(e)	$	0.0	$	135.0	$	0.0		234,000

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) The difference between the full consolidation cost amount (GAAP) of $10.9 million to the Company's pro-rata share (a non-GAAP measure) of $9.8 million consists of a reduction to full consolidation for non-controlling interest of $1.1 million.

(e) These are fee development projects. Therefore, these costs are not included on the full consolidation or pro-rata balance sheet.

(f) Updated lease commitments as of May 21, 2012.

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

(i) Phased-in opening. Costs are representative of the total project cost, including 597,000 square feet opened as of May 21, 2012. As of April 30, 2012, $346.2 million of costs incurred at pro-rata consolidation and $193.7 million of mortgage debt at pro-rata consolidation were transferred to completed rental properties. As of April 30, 2012, projects under construction include $525.8 million of costs incurred at pro-rata consolidation and $294.1 million of mortgage debt at pro-rata consolidation. Approximately 800,000 square feet of leases have been signed, representing 60% of the total 1,336,000 square feet after construction is complete. The leased percentage excluding Parcel L is 68%. Parcel L is a self contained pad site at the southern end of the center. Parcel L has been assumed to be leased in the future predominantly to a single retail tenant in its own phase. Given Parcel L’s location on the end of the site, the lease commitment percentage has been presented both with and without the anticipated square footage for Parcel L in the denominator of Gross Leasable Area.

34

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

FOOTNOTES (continued)

(j) Phased-in opening. Costs are representative of the total project cost, including 871 units opened as of May 21, 2012. As of April 30, 2012, $427.4 million of costs incurred at pro-rata consolidation and $261.1 million of mortgage debt at pro-rata consolidation were transferred to completed rental properties. As of April 30, 2012, projects under construction include $22.5 million of costs incurred at pro-rata consolidation and $13.8 million of mortgage debt at pro-rata consolidation. As of May 21, 2012, 707 leases have been signed, representing 79% of the total 899 units after construction is complete.

(k) Costs were reduced by 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.

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

(m) The difference between the full consolidation cost amount (GAAP) of $1,268.2 million to the Company's pro-rata share (a non-GAAP measure) of $1,845.0 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 $712.0 million.

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

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

(p) The difference between the full consolidation cost amount (GAAP) of $1,053.8 million to the Company's pro-rata share (a non-GAAP measure) of $435.7 million consists of a reduction to full consolidation for noncontrolling interest of $618.1 million of cost.

Equity Requirements for Projects Under Construction^(a)

as of April 30, 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	$	1,053.8		$	—	$	1,053.8		$	618.1	$	—	$	435.7
Total Loan Draws and Other Sources at Completion(d)		638.5			—		638.5			389.8		—		248.7
Net Equity at Completion		415.3			—		415.3			228.3		—		187.0
Net Costs Incurred to Date		762.3			—		762.3			450.7		—		311.6
Loan Draws and Other Sources to Date		380.9			—		380.9			228.4		—		152.5
Net Equity to Date		381.4			—		381.4			222.3		—		159.1
% of Total Equity		92	%				92	%						85	%
Remaining Costs		291.5			—		291.5			167.4		—		124.1
Remaining Loan Draws and Other Sources		257.6			—		257.6			161.4		—		96.2
Remaining Equity	$	33.9		$	—	$	33.9		$	6.0	$	—	$	27.9
% of Total Equity		8	%				8	%						15	%

(a) This schedule includes only the five 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.

35

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Projects Under Development

as of April 30, 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 $801.8 million ($1,005.0 million at full consolidation) of Projects Under Development (“PUD”) on our balance sheet and pro-rata mortgage debt of $166.2 million ($222.0 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 and includes a Potbelly Sandwich restaurant which opened Q1-12. Kruba Thai & Sushi restaurant is expected to open Q2-12.

4)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.

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

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

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.

36

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Military Housing

as of April 30, 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	Anticipated Opening		FCE Pro-Rata %			Cost at Full Consolidation		Total Cost at 100%		No. of Units
							(in millions)
Military Housing—Under Construction
Hawaii Phase IV	Kaneohe, HI		2007-2014		*		$	0.0	$	476.6		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	$	720.2		3,326

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

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 $2,362,000 for the three months ended April 30, 2012 and $1,137,000 for the three months ended April 30, 2011.

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 $433,000 for the three months ended April 30, 2012 and $1,180,000 for the three months ended April 30, 2011.

Property management and asset management fees are earned based on a contractual percentage of the annual net rental income and annual operating income, respectively, that is generated by the military housing privatization projects as defined in the agreements. We also recognize certain property management incentive fees based upon successful completion of certain criteria as set forth in the property management agreements. Property management, management incentive and asset management fees generated NOI of $3,547,000 for the three months ended April 30, 2012 and $3,229,000 for the three months ended April 30, 2011.

37

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Land Held for Development and Sale

as of April 30, 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		334		195		1,173
Central Station—Chicago, IL		30		30		—
Total		364		225		1,173

(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 over 3,000 residential units completed and another 4,000 units in development. Central Station, a 14 million-square-foot development, is being developed in partnership with The Fogelson Companies.

38

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Operating Information

Land Held for Divestiture

as of April 30, 2012

On January 31, 2012, our Board of Directors approved a strategic decision by our senior management to reposition or divest significant portions of our Land Development Group and is actively reviewing alternatives to do so. Below is a summary of land projects that are considered held for divestiture at April 30, 2012.

Location	Gross Acres		Saleable Acres		Option Acres
Mesa del Sol - Albuquerque, NM		3,009		1,645		5,731
Texas		2,709		1,469		—
North Carolina		1,217		992		—
Ohio		949		638		200
Arizona		656		482		—
Other		878		691		—
Total		9,418		5,917		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 I is expected to be completed in late 2013.

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 21 acres have been sold to date.

San Antonio Portfolio– San Antonio, TX

Forest City owns four multi-phase communities and finished lots in one additional location in the San Antonio area, predominantly on the west side. As of April 30, 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.

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 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 I 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 April 30, 2012, 254 lots and the 25 commercial acres have been sold. Of the 309 total acres, 98 are saleable acres and 74 acres have been sold to date.

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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
	April 30, 2012		January 31, 2012		October 31, 2011		July 31, 2011		April 30, 2011
Class A Common Stock
Closing Price, end of quarter	$	15.95	$	13.13	$	13.68	$	18.01	$	19.21
High Closing Price	$	16.16	$	14.00	$	17.82	$	19.24	$	19.26
Low Closing Price	$	13.19	$	10.88	$	9.76	$	17.78	$	17.30
Average Closing Price	$	14.97	$	12.32	$	12.72	$	18.55	$	18.48
Total Volume		42,370,907		56,114,430		101,588,513		60,938,097		49,003,190
Average Volume		683,402		905,071		1,562,900		967,271		790,374
Common shares outstanding, end of quarter		148,501,425		148,227,849		148,192,446		148,162,038		144,653,100
Class B Common Stock
Closing Price, end of quarter	$	15.87	$	13.17	$	13.57	$	17.90	$	18.99
High Closing Price	$	16.12	$	13.92	$	17.77	$	19.17	$	19.26
Low Closing Price	$	13.17	$	10.85	$	9.78	$	17.66	$	17.27
Average Closing Price	$	14.95	$	12.29	$	12.71	$	18.54	$	18.46
Total Volume		41,208		75,255		46,562		58,335		38,821
Average Volume		665		1,214		716		926		626
Common shares outstanding, end of quarter		20,911,371		20,934,335		20,964,181		20,987,364		21,006,188
Common Equity Market Capitalization	$	2,700,461,187	$	2,221,936,849	$	2,311,756,597	$	3,044,072,120	$	3,177,693,561
Quarterly dividends declared per common share Class A and Class B	$	—	$	—	$	—	$	—	$	—

Financial Covenants

The Company’s bank revolving 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 April 30, 2012, follows:

	Requirement Per  Agreement			As of April 30, 2012			As of January 31, 2012			As of October 31, 2011			As of July 31, 2011
	(dollars in thousands)
Credit Facility Financial Covenants
Debt Service Coverage Ratio		1.35x			1.89x			1.93x			1.92x			1.95x
Cash Flow Coverage Ratio		2.50x			3.57x			3.86x			3.94x			4.37x
Total Development Ratio		<17	%		10.96	%		10.64	%		11.59	%		10.99	%
Minimum Consolidated Shareholders’ Equity, as defined	$	2,320,175		$	3,577,586		$	3,505,097		$	3,584,782		$	3,586,466
2003 Indenture Financial Covenants(1)
Ratio of Consolidated EBITDA to Interest		>1.30x			1.76x			1.82x			1.84x			1.95x
Minimum Net Worth, as defined(2)	$	1,002,072		$	4,142,140		$	4,061,179		$	4,105,717		$	4,100,853

(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 April 30, 2012. This requirement fluctuates each quarter based on actual financial results of each applicable period.

40

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 April 30, 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	$	536,584	$	236,171	$	887	$	301,300
Variable
Taxable		299,282		148		10,565		309,699
Tax-Exempt		—		—		5,211		5,211
Total outstanding on projects under construction and development(1)	$	835,866	$	236,319	$	16,663	$	616,210
Commitment
Fixed	$	839,432	$	401,463	$	887	$	438,856
Variable
Taxable		395,116		1,139		10,565		404,542
Tax-Exempt		—		—		5,211		5,211
Total commitment	$	1,234,548	$	402,602	$	16,663	$	848,609

(1) Proceeds from outstanding debt of $2,715 and $5,581, at full and pro-rata consolidation, respectively, described above are 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 three months ended April 30, 2012, we completed the following financings:

Purpose of Financing	Full Consolidation		Less Noncontrolling Interest		Plus Unconsolidated Investments at Pro-Rata		Pro-Rata Consolidation
	(in thousands)
Refinancings	$	73,000	$	—	$	10,829	$	83,829
Construction and development projects(1)		18,380		—		—		18,380
Loan extensions/additional fundings		57,830		862		24,700		81,668
	$	149,210	$	862	$	35,529	$	183,877

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

41

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Debt(dollars in thousands)

As of April 30, 2012

	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	$	280,987		$	17,074		$	64,118		$	328,031		$	605,454		$	78,317		$	142,330		$	669,467
Weighted average rate		5.96	%		7.09	%		6.23	%		5.95	%		6.49	%		9.90	%		6.32	%		6.05	%
Variable:
Variable-rate debt		925,943			—			99,319			1,025,262			66,392			1,869			50,866			115,389
Weighted average rate		3.17	%		—	%		3.92	%		3.25	%		5.39	%		5.76	%		3.14	%		4.39	%
Tax-Exempt		239			24			2,480			2,695			91,055			26			53,040			144,069
Weighted average rate		1.75	%		1.74	%		1.62	%		1.63	%		2.75	%		1.72	%		2.96	%		2.83	%
Total variable-rate debt		926,182			24			101,799			1,027,957			157,447			1,895			103,906			259,458
Total Nonrecourse Debt	$	1,207,169		$	17,098		$	165,917		$	1,355,988		$	762,901		$	80,212		$	246,236		$	928,925
Weighted Average Rate		3.82	%		7.09	%		4.77	%		3.90	%		5.95	%		9.80	%		4.94	%		5.35	%
	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	$	291,188		$	34,041		$	242,658		$	499,805		$	346,108		$	29,186		$	122,682		$	439,604
Weighted average rate		6.06	%		5.93	%		5.51	%		5.81	%		5.59	%		5.83	%		5.30	%		5.49	%
Variable:
Variable-rate debt		28,479			314			30,460			58,625			—			—			31,715			31,715
Weighted average rate		3.82	%		2.74	%		4.26	%		4.06	%		—	%		—	%		2.22	%		2.22	%
Tax-Exempt		272			27			—			245			290			29			—			261
Weighted average rate		1.75	%		1.76	%		—	%		1.75	%		1.75	%		1.75	%		—	%		1.75	%
Total variable-rate debt		28,751			341			30,460			58,870			290			29			31,715			31,976
Total Nonrecourse Debt	$	319,939		$	34,382		$	273,118		$	558,675		$	346,398		$	29,215		$	154,397		$	471,580
Weighted Average Rate		5.86	%		5.90	%		5.37	%		5.62	%		5.59	%		5.83	%		4.67	%		5.27	%

42

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

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

As of April 30, 2012

	Fiscal Year Ending January 31, 2017												Thereafter
	Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation			Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation
Fixed:
Fixed-rate debt	$	420,327		$	6,544		$	89,802		$	503,585		$	1,639,829		$	222,812		$	806,617		$	2,223,634
Weighted average rate		5.77	%		6.01	%		6.48	%		5.89	%		5.18	%		6.20	%		5.59	%		5.23	%
Variable:
Variable-rate debt		—			—			182,378			182,378			648,324			3,335			112,217			757,206
Weighted average rate		—	%		—	%		2.38	%		2.38	%		6.50	%		3.25	%		3.97	%		6.14	%
Tax-Exempt .		309			31			103,989			104,267			344,680			9,728			165,176			500,128
Weighted average rate		1.75	%		1.74	%		2.47			2.47	%		1.35	%		0.94	%		1.59	%		1.44	%
Total variable-rate debt		309			31			286,367			286,645			993,004			13,063			277,393			1,257,334
Total Nonrecourse Debt	$	420,636		$	6,575		$	376,169		$	790,230		$	2,632,833		$	235,875		$	1,084,010		$	3,480,968
Weighted Average Rate		5.77	%		5.99	%		3.38	%		4.63	%		5.01	%		5.95	%		4.81	%		4.88	%

	Total
	Full Consolidation			Less Noncontrolling Interest			Plus Unconsolidated Investments at Pro-Rata			Pro-Rata Consolidation
Fixed:
Fixed-rate debt	$	3,583,893		$	387,974		$	1,468,207		$	4,664,126
Weighted average rate		5.64	%		6.93	%		5.71	%		5.56	%
Variable:
Variable-rate debt		1,669,138			5,518			506,955			2,170,575
Weighted average rate		4.57	%		4.07	%		3.21	%		4.25	%
Tax-Exempt		436,845			9,865			324,685			751,665
Weighted average rate		1.64	%		0.95	%		2.09	%		1.85	%
Total variable-rate debt		2,105,983			15,383			831,640			2,922,240
Total Nonrecourse Debt	$	5,689,876		$	403,357		$	2,299,847		$	7,586,366
Weighted Average Rate		5.02	%		6.75	%		4.65	%		4.82	%

43

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2012 and 2011(in thousands)

	Commercial Group 2012															Commercial Group 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	$	219,191		$	7,070		$	57,944		$	292		$	270,357		$	242,586		$	10,799		$	44,504		$	9,252		$	285,543
Exclude straight-line rent adjustment		(5,706	)		—			—			(3	)		(5,709	)		(3,325	)		—			—			(336	)		(3,661	)
Adjusted revenues		213,485			7,070			57,944			289			264,648			239,261			10,799			44,504			8,916			281,882
Add interest and other income		3,799			103			33			—			3,729			6,741			(511	)		29			—			7,281
Add equity in earnings (loss) of unconsolidated entities		6,398			—			(6,398	)		—			—			2,922			(1	)		(2,923	)		—			—
Exclude gain on disposition of unconsolidated entities		—			—			—			—			—			—			—			—			—			—
Exclude depreciation and amortization of unconsolidated entities		10,985			—			(10,985	)		—			—			8,669			—			(8,669	)		—			—
Exclude interest expense of unconsolidated entities		16,533			—			(16,533	)		—			—			13,852			—			(13,852	)		—			—
Adjusted total income		251,200			7,173			24,061			289			268,377			271,445			10,287			19,089			8,916			289,163
Operating expenses		97,504			4,700			24,061			141			117,006			100,060			6,257			19,089			6,679			119,571
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		177			—			—			—			177			195			—			—			—			195
Exclude straight-line rent adjustment		(792	)		—			—			—			(792	)		(1,274	)		—			—			—			(1,274	)
Exclude preference payment		—			—			—			—			—			(585	)		—			—			—			(585	)
Adjusted operating expenses		96,889			4,700			24,061			141			116,391			98,396			6,257			19,089			6,679			117,907
Net operating income		154,311			2,473			—			148			151,986			173,049			4,030			—			2,237			171,256
Interest expense		(38,822	)		(2,223	)		(16,533	)		(97	)		(53,229	)		(45,224	)		(3,227	)		(13,852	)		(1,236	)		(57,085	)
Interest expense of unconsolidated entities		(16,533	)		—			16,533			—			—			(13,852	)		—			13,852			—			—
Loss on early extinguishment of debt		(719	)		(188	)		—			—			(531	)		(296	)		(4	)		—			—			(292	)
Noncontrolling interest in earnings before depreciation and amortization		(62	)		(62	)		—			—			—			(799	)		(799	)		—			—			—
Allowance for projects under development revision		—			—			—			—			—			1,400			—			—			—			1,400
Pre-tax EBDT from discontinued operations		51			—			—			(51	)		—			1,001			—			—			(1,001	)		—
Pre-Tax EBDT		98,226			—			—			—			98,226			115,279			—			—			—			115,279
Income tax expense (benefit)		—			—			—			—			—			—			—			—			—			—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	98,226		$	—		$	—		$	—		$	98,226		$	115,279		$	—		$	—		$	—		$	115,279
Reconciliation to net earnings (loss):
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	98,226		$	—		$	—		$	—		$	98,226		$	115,279		$	—		$	—		$	—		$	115,279
Depreciation and amortization - Real Estate Groups		(49,178	)		—			—			—			(49,178	)		(48,804	)		—			—			(1,626	)		(50,430	)
Amortization of mortgage procurement costs - Real Estate Groups		(2,839	)		—			—			—			(2,839	)		(2,469	)		—			—			(262	)		(2,731	)
Straight-line rent adjustment		4,914			—			—			3			4,917			2,051			—			—			336			2,387
Preference payment		—			—			—			—			—			(585	)		—			—			—			(585	)
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		—			—			—			7,914			7,914			9,561			—			—			10,038			19,599
Gain on disposition of unconsolidated entities		—			—			—			—			—			—			—			—			—			—
Impairment of consolidated real estate		(1,381	)		—			—			—			(1,381	)		(3,435	)		—			—			—			(3,435	)
Allowance for projects under development revision		—			—			—			—			—			(1,400	)		—			—			—			(1,400	)
Discontinued operations:
Depreciation and amortization - Real Estate Groups		—			—			—			—			—			(1,626	)		—			—			1,626			—
Amortization of mortgage procurement costs - Real Estate Groups		—			—			—			—			—			(262	)		—			—			262			—
Straight-line rent adjustment		3			—			—			(3	)		—			336			—			—			(336	)		—
Gain on disposition of rental properties		7,914			—			—			(7,914	)		—			10,038			—			—			(10,038	)		—
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	57,659		$	—		$	—		$	—		$	57,659		$	78,684		$	—		$	—		$	—		$	78,684

44

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2012 and 2011(in thousands) (continued)

	Residential Group 2012														Residential Group 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	$	65,305		$	4,589		$	41,669		$	—	$	102,385		$	53,504		$	1,048		$	35,783		$	—	$	88,239
Exclude straight-line rent adjustment		82			—			—			—		82			226			—			—			—		226
Adjusted revenues		65,387			4,589			41,669			—		102,467			53,730			1,048			35,783			—		88,465
Add interest and other income		4,475			141			176			—		4,510			5,876			142			148			—		5,882
Add equity in earnings (loss) of unconsolidated entities		4,170			30			(3,949	)		—		191			17,032			49			(16,705	)		—		278
Exclude gain on disposition of unconsolidated entities		—			—			—			—		—			(12,567	)		—			12,567			—		—
Exclude depreciation and amortization of unconsolidated entities		8,990			—			(8,990	)		—		—			5,556			—			(5,556	)		—		—
Exclude interest expense of unconsolidated entities		9,735			—			(9,735	)		—		—			9,106			—			(9,106	)		—		—
Adjusted total income		92,757			4,760			19,171			—		107,168			78,733			1,239			17,131			—		94,625
Operating expenses		44,939			3,576			19,171			—		60,534			36,777			539			17,131			—		53,369
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		100			—			—			—		100			123			—			—			—		123
Exclude straight-line rent adjustment		—			—			—			—		—			63			—			—			—		63
Exclude preference payment		—			—			—			—		—			—			—			—			—		—
Adjusted operating expenses		45,039			3,576			19,171			—		60,634			36,963			539			17,131			—		53,555
Net operating income		47,718			1,184			—			—		46,534			41,770			700			—			—		41,070
Interest expense		(4,348	)		(328	)		(9,735	)		—		(13,755	)		(6,214	)		(501	)		(9,106	)		—		(14,819	)
Interest expense of unconsolidated entities		(9,735	)		—			9,735			—		—			(9,106	)		—			9,106			—		—
Loss on early extinguishment of debt		—			—			—			—		—			—			—			—			—		—
Noncontrolling interest in earnings before depreciation and amortization		(856	)		(856	)		—			—		—			(199	)		(199	)		—			—		—
Allowance for projects under development revision		—			—			—			—		—			600			—			—			—		600
Pre-tax EBDT from discontinued operations		—			—			—			—		—			—			—			—			—		—
Pre-Tax EBDT		32,779			—			—			—		32,779			26,851			—			—			—		26,851
Income tax expense (benefit)		—			—			—			—		—			—			—			—			—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	32,779		$	—		$	—		$	—	$	32,779		$	26,851		$	—		$	—		$	—	$	26,851
Reconciliation to net earnings (loss):
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	32,779		$	—		$	—		$	—	$	32,779		$	26,851		$	—		$	—		$	—	$	26,851
Depreciation and amortization - Real Estate Groups		(21,131	)		—			—			—		(21,131	)		(18,313	)		—			—			—		(18,313	)
Amortization of mortgage procurement costs - Real Estate Groups		(758	)		—			—			—		(758	)		(840	)		—			—			—		(840	)
Straight-line rent adjustment		(82	)		—			—			—		(82	)		(163	)		—			—			—		(163	)
Preference payment		—			—			—			—		—			—			—			—			—		—
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		—			—			—			—		—			—			—			12,567			—		12,567
Gain on disposition of unconsolidated entities		—			—			—			—		—			12,567			—			(12,567	)		—		—
Impairment of consolidated real estate		—			—			—			—		—			—			—			—			—		—
Allowance for projects under development revision		—			—			—			—		—			(600	)		—			—			—		(600	)
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		—			—			—			—		—			—			—			—			—		—
												��
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	10,808		$	—		$	—		$	—	$	10,808		$	19,502		$	—		$	—		$	—	$	19,502

45

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2012 and 2011(in thousands)(continued)

	Land Development Group 2012														Land Development Group 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	$	12,156		$	902		$	1,951		$	—	$	13,205		$	8,090		$	651		$	2,427		$	—	$	9,866
Exclude straight-line rent adjustment		—			—			—			—		—			—			—			—			—		—
Adjusted revenues		12,156			902			1,951			—		13,205			8,090			651			2,427			—		9,866
Add interest and other income		2,360			222			1			—		2,139			2,841			229			(60	)		—		2,552
Add equity in earnings (loss) of unconsolidated entities		163			—			87			—		250			344			—			(671	)		—		(327	)
Exclude gain on disposition of unconsolidated entities		—			—			—			—		—			—			—			—			—		—
Exclude depreciation and amortization of unconsolidated entities		23			—			(23	)		—		—			83			—			(83	)		—		—
Exclude interest expense of unconsolidated entities		64			—			(64	)		—		—			149			—			(149	)		—		—
Adjusted total income		14,766			1,124			1,952			—		15,594			11,507			880			1,464			—		12,091
Operating expenses		11,677			781			1,952			—		12,848			9,225			604			1,464			—		10,085
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		14			—			—			—		14			31			—			—			—		31
Exclude straight-line rent adjustment		—			—			—			—		—			—			—			—			—		—
Exclude preference payment		—			—			—			—		—			—			—			—			—		—
Adjusted operating expenses		11,691			781			1,952			—		12,862			9,256			604			1,464			—		10,116
Net operating income		3,075			343			—			—		2,732			2,251			276			—			—		1,975
Interest expense		(1,751	)		(173	)		(64	)		—		(1,642	)		(824	)		(104	)		(149	)		—		(869	)
Interest expense of unconsolidated entities		(64	)		—			64			—		—			(149	)		—			149			—		—
Loss on early extinguishment of debt		—			—			—			—		—			—			—			—			—		—
Noncontrolling interest in earnings before depreciation and amortization		(170	)		(170	)		—			—		—			(172	)		(172	)		—			—		—
Allowance for projects under development revision		—			—			—			—		—			—			—			—			—		—
Pre-tax EBDT from discontinued operations		—			—			—			—		—			—			—			—			—		—
Pre-Tax EBDT		1,090			—			—			—		1,090			1,106			—			—			—		1,106
Income tax expense (benefit)		—			—			—			—		—			—			—			—			—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	1,090		$	—		$	—		$	—	$	1,090		$	1,106		$	—		$	—		$	—	$	1,106
Reconciliation to net earnings (loss):
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	1,090		$	—		$	—		$	—	$	1,090		$	1,106		$	—		$	—		$	—	$	1,106
Depreciation and amortization - Real Estate Groups		(108	)		—			—			—		(108	)		(86	)		—			—			—		(86	)
Amortization of mortgage procurement costs - Real Estate Groups		(26	)		—			—			—		(26	)		(61	)		—			—			—		(61	)
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 real estate		—			—			—			—		—			(1,400	)		—			—			—		(1,400	)
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		—			—			—			—		—			—			—			—			—		—
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	956		$	—		$	—		$	—	$	956		$	(441	)	$	—		$	—		$	—	$	(441	)

46

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2012 and 2011(in thousands) (continued)

	The Nets 2012												The Nets 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	$	—		$	—	$	—	$	—	$	—		$	—		$	—	$	—	$	—	$	—
Exclude straight-line rent adjustment		—			—		—		—		—			—			—		—		—		—
Adjusted revenues		—			—		—		—		—			—			—		—		—		—
Add interest and other income		—			—		—		—		—			—			—		—		—		—
Add equity in earnings (loss) of unconsolidated entities		(6,958	)		—		—		—		(6,958	)		(304	)		—		—		—		(304	)
Exclude gain on disposition of unconsolidated entities		—			—		—		—		—			—			—		—		—		—
Exclude depreciation and amortization of unconsolidated entities		—			—		—		—		—			—			—		—		—		—
Exclude interest expense of unconsolidated entities		—			—		—		—		—			—			—		—		—		—
Adjusted total income		(6,958	)		—		—		—		(6,958	)		(304	)		—		—		—		(304	)
Operating expenses		—			—		—		—		—			—			—		—		—		—
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		—			—		—		—		—			—			—		—		—		—
Exclude straight-line rent adjustment		—			—		—		—		—			—			—		—		—		—
Exclude preference payment		—			—		—		—		—			—			—		—		—		—
Adjusted operating expenses		—			—		—		—		—			—			—		—		—		—
Net operating income		(6,958	)		—		—		—		(6,958	)		(304	)		—		—		—		(304	)
Interest expense		—			—		—		—		—			—			—		—		—		—
Interest expense of unconsolidated entities		—			—		—		—		—			—			—		—		—		—
Loss on early extinguishment of debt		—			—		—		—		—			—			—		—		—		—
Noncontrolling interest in earnings before depreciation and amortization		—			—		—		—		—			—			—		—		—		—
Allowance for projects under development revision		—			—		—		—		—			—			—		—		—		—
Pre-tax EBDT from discontinued operations		—			—		—		—		—			—			—		—		—		—
Pre-Tax EBDT		(6,958	)		—		—		—		(6,958	)		(304	)		—		—		—		(304	)
Income tax expense (benefit)		—			—		—		—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(6,958	)	$	—	$	—	$	—	$	(6,958	)	$	(304	)	$	—	$	—	$	—	$	(304	)
Reconciliation to net earnings (loss):
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(6,958	)	$	—	$	—	$	—	$	(6,958	)	$	(304	)	$	—	$	—	$	—	$	(304	)
Depreciation and amortization - Real Estate Groups		—			—		—		—		—			—			—		—		—		—
Amortization of mortgage procurement costs - Real Estate Groups		—			—		—		—		—			—			—		—		—		—
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 real estate		—			—		—		—		—			—			—		—		—		—
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		—			—		—		—		—			—			—		—		—		—
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(6,958	)	$	—	$	—	$	—	$	(6,958	)	$	(304	)	$	—	$	—	$	—	$	(304	)

47

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2012 and 2011(in thousands)(continued)

	Corporate Activities 2012												Corporate Activities 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	$	—		$	—	$	—	$	—	$	—		$	—		$	—	$	—	$	—	$	—
Exclude straight-line rent adjustment		—			—		—		—		—			—			—		—		—		—
Adjusted revenues		—			—		—		—		—			—			—		—		—		—
Add interest and other income		45			—		—		—		45			49			—		—		—		49
Add equity in earnings (loss) of unconsolidated entities		—			—		—		—		—			—			—		—		—		—
Exclude gain on disposition of unconsolidated entities		—			—		—		—		—			—			—		—		—		—
Exclude depreciation and amortization of unconsolidated entities		—			—		—		—		—			—			—		—		—		—
Exclude interest expense of unconsolidated entities		—			—		—		—		—			—			—		—		—		—
Adjusted total income		45			—		—		—		45			49			—		—		—		49
Operating expenses		12,731			—		—		—		12,731			14,627			—		—		—		14,627
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		329			—		—		—		329			353			—		—		—		353
Exclude straight-line rent adjustment		—			—		—		—		—			—			—		—		—		—
Exclude preference payment		—			—		—		—		—			—			—		—		—		—
Adjusted operating expenses		13,060			—		—		—		13,060			14,980			—		—		—		14,980
Net operating income		(13,015	)		—		—		—		(13,015	)		(14,931	)		—		—		—		(14,931	)
Interest expense		(13,595	)		—		—		—		(13,595	)		(13,919	)		—		—		—		(13,919	)
Interest expense of unconsolidated entities		—			—		—		—		—			—			—		—		—		—
Loss on early extinguishment of debt		—			—		—		—		—			—			—		—		—		—
Noncontrolling interest in earnings before depreciation and amortization		—			—		—		—		—			—			—		—		—		—
Allowance for projects under development revision		—			—		—		—		—			—			—		—		—		—
Pre-tax EBDT from discontinued operations		—			—		—		—		—			—			—		—		—		—
Pre-Tax EBDT		(26,610	)		—		—		—		(26,610	)		(28,850	)		—		—		—		(28,850	)
Income tax expense (benefit)		(3,905	)		—		—		—		(3,905	)		(13,294	)		—		—		—		(13,294	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(22,705	)	$	—	$	—	$	—	$	(22,705	)	$	(15,556	)	$	—	$	—	$	—	$	(15,556	)
Reconciliation to net earnings (loss):
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(22,705	)	$	—	$	—	$	—	$	(22,705	)	$	(15,556	)	$	—	$	—	$	—	$	(15,556	)
Depreciation and amortization - Real Estate Groups		—			—		—		—		—			—			—		—		—		—
Amortization of mortgage procurement costs - Real Estate Groups		—			—		—		—		—			—			—		—		—		—
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 real estate		—			—		—		—		—			—			—		—		—		—
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		—			—		—		—		—			—			—		—		—		—
Tax expense:
Deferred taxes		(11,463	)		—		—		—		(11,463	)		(4,037	)		—		—		—		(4,037	)
Gain on disposition of rental properties and partial interest in rental properties		(5,545	)		—		—		—		(5,545	)		(31,505	)		—		—		—		(31,505	)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	(39,713	)	$	—	$	—	$	—	$	(39,713	)	$	(51,098	)	$	—	$	—	$	—	$	(51,098	)
Preferred dividends		(3,850	)		—		—		—		(3,850	)		(3,850	)		—		—		—		(3,850	)
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	(43,563	)	$	—	$	—	$	—	$	(43,563	)	$	(54,948	)	$	—	$	—	$	—	$	(54,948	)

48

Forest City Enterprises, Inc. and Subsidiaries

Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended April 30, 2012 and 2011(in thousands)(continued)

	Total 2012															Total 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	$	296,652		$	12,561		$	101,564		$	292		$	385,947		$	304,180		$	12,498		$	82,714		$	9,252		$	383,648
Exclude straight-line rent adjustment		(5,624	)		—			—			(3	)		(5,627	)		(3,099	)		—			—			(336	)		(3,435	)
Adjusted revenues		291,028			12,561			101,564			289			380,320			301,081			12,498			82,714			8,916			380,213
Add interest and other income		10,679			466			210			—			10,423			15,507			(140	)		117			—			15,764
Add equity in earnings (loss) of unconsolidated entities		3,773			30			(10,260	)		—			(6,517	)		19,994			48			(20,299	)		—			(353	)
Exclude gain on disposition of unconsolidated entities		—			—			—			—			—			(12,567	)		—			12,567			—			—
Exclude depreciation and amortization of unconsolidated entities		19,998			—			(19,998	)		—			—			14,308			—			(14,308	)		—			—
Exclude interest expense of unconsolidated entities		26,332			—			(26,332	)		—			—			23,107			—			(23,107	)		—			—
Adjusted total income		351,810			13,057			45,184			289			384,226			361,430			12,406			37,684			8,916			395,624
Operating expenses		166,851			9,057			45,184			141			203,119			160,689			7,400			37,684			6,679			197,652
Non-Real Estate depreciation and amortization and amortization of mortgage procurement costs		620			—			—			—			620			702			—			—			—			702
Exclude straight-line rent adjustment		(792	)		—			—			—			(792	)		(1,211	)		—			—			—			(1,211	)
Exclude preference payment		—			—			—			—			—			(585	)		—			—			—			(585	)
Adjusted operating expenses		166,679			9,057			45,184			141			202,947			159,595			7,400			37,684			6,679			196,558
Net operating income		185,131			4,000			—			148			181,279			201,835			5,006			—			2,237			199,066
Interest expense		(58,516	)		(2,724	)		(26,332	)		(97	)		(82,221	)		(66,181	)		(3,832	)		(23,107	)		(1,236	)		(86,692	)
Interest expense of unconsolidated entities		(26,332	)		—			26,332			—			—			(23,107	)		—			23,107			—			—
Loss on early extinguishment of debt		(719	)		(188	)		—			—			(531	)		(296	)		(4	)		—			—			(292	)
Noncontrolling interest in earnings before depreciation and amortization		(1,088	)		(1,088	)		—			—			—			(1,170	)		(1,170	)		—			—			—
Allowance for projects under development revision		—			—			—			—			—			2,000			—			—			—			2,000
Pre-tax EBDT from discontinued operations		51			—			—			(51	)		—			1,001			—			—			(1,001	)		—
Pre-Tax EBDT		98,527			—			—			—			98,527			114,082			—			—			—			114,082
Income tax expense (benefit)		(3,905	)		—			—			—			(3,905	)		(13,294	)		—			—			—			(13,294	)
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	102,432		$	—		$	—		$	—		$	102,432		$	127,376		$	—		$	—		$	—		$	127,376
Reconciliation to net earnings (loss):
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	102,432		$	—		$	—		$	—		$	102,432		$	127,376		$	—		$	—		$	—		$	127,376
Depreciation and amortization - Real Estate Groups		(70,417	)		—			—			—			(70,417	)		(67,203	)		—			—			(1,626	)		(68,829	)
Amortization of mortgage procurement costs - Real Estate Groups		(3,623	)		—			—			—			(3,623	)		(3,370	)		—			—			(262	)		(3,632	)
Straight-line rent adjustment		4,832			—			—			3			4,835			1,888			—			—			336			2,224
Preference payment		—			—			—			—			—			(585	)		—			—			—			(585	)
Gain on disposition of rental properties and partial interests in rental properties, net of noncontrolling interest		—			—			—			7,914			7,914			9,561			—			12,567			10,038			32,166
Gain on disposition of unconsolidated entities		—			—			—			—			—			12,567			—			(12,567	)		—			—
Impairment of consolidated real estate		(1,381	)		—			—			—			(1,381	)		(4,835	)		—			—			—			(4,835	)
Allowance for projects under development revision		—			—			—			—			—			(2,000	)		—			—			—			(2,000	)
Discontinued operations:
Depreciation and amortization - Real Estate Groups		—			—			—			—			—			(1,626	)		—			—			1,626			—
Amortization of mortgage procurement costs - Real Estate Groups		—			—			—			—			—			(262	)		—			—			262			—
Straight-line rent adjustment		3			—			—			(3	)		—			336			—			—			(336	)		—
Gain on disposition of rental properties		7,914			—			—			(7,914	)		—			10,038			—			—			(10,038	)		—
Tax expense:
Deferred taxes		(11,463	)		—			—			—			(11,463	)		(4,037	)		—			—			—			(4,037	)
Gain on disposition of rental properties and partial interest in rental properties		(5,545	)		—			—			—			(5,545	)		(31,505	)		—			—			—			(31,505	)
Net earnings (loss) attributable to Forest City Enterprises, Inc.	$	22,752		$	—		$	—		$	—		$	22,752		$	46,343		$	—		$	—		$	—		$	46,343
Preferred dividends		(3,850	)		—			—			—			(3,850	)		(3,850	)		—			—			—			(3,850	)
Net earnings (loss) attributable to Forest City Enterprises, Inc. common shareholders	$	18,902		$	—		$	—		$	—		$	18,902		$	42,493		$	—		$	—		$	—		$	42,493

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