FOREST CITY ENTERPRISES, INC.
SUPPLEMENTAL PACKAGE
[PICTURE]
Six Months ended July 31, 2003
FOREST CITY ENTERPRISES, INC.
SIX MONTHS ENDED JULY 31, 2003
SUPPLEMENTAL OPERATING DATA
NYSE: FCEA, FCEB
INDEX
-----
CORPORATE OVERVIEW 3
OPERATING DATA AND OTHER DATA
Occupancy 7
Comparable Net Operating Income (NOI) 7
Lease Expiration Schedules 8
Significant Tenant Listings 10
DEBT MATURITY 13
EXHIBITS
Comparable NOI Data - Detail 15
- --------------------------------------------------------------------------------
Statements made here that are our intentions, hopes, beliefs, expectations or
predictions of the future are forward-looking statements. It is important to
note that our results could differ materially from those projected in such
forward-looking statements. Additional information concerning factors that could
cause actual results to differ materially from those in the forward-looking
statements include, but are not limited to, real estate development and
investment risks, economic conditions in our target markets, reliance on major
tenants, the impact of terrorist acts, our substantial leverage and the ability
to service debt, guarantees under our credit facility, changes in interest
rates, continued availability of tax-exempt government financing, the
sustainability of substantial operations at the subsidiary level, significant
geographic concentration, illiquidity of real estate investments, dependence on
rental income from real property, conflicts of interest, competition, potential
liability from syndicated properties, effects of uninsured loss, environmental
liabilities, partnership risks, litigation risks and other risk factors as
disclosed from time to time in our SEC filings, including, but not limited to,
our Annual Report on Form 10-K for the year ended January 31, 2003.
- --------------------------------------------------------------------------------
CORPORATE OVERVIEW
[PICTURE]
CORPORATE DESCRIPTION
- ---------------------
Founded in 1920 and publicly traded since 1960, we are principally engaged in
the ownership, development, management and acquisition of commercial and
residential real estate properties in 21 states and the District of Columbia. At
July 31, 2003, we had approximately $5.3 billion in total assets. We have a
portfolio of real estate assets diversified both geographically and among
property types. We operate our business through four strategic business units:
- Commercial Group, our largest business unit, owns, develops, acquires
and operates regional malls, specialty/urban retail centers, office
buildings, hotels and mixed-use projects;
- Residential Group owns, develops, acquires and operates residential
rental properties, including upscale and middle-market apartments,
adaptive re-use developments and supported-living facilities;
- 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;
and
- Lumber Trading Group, a lumber wholesaler.
OPERATING AND OTHER STATISTICS
- ------------------------------
The operating data contained in this document includes: occupancy data,
comparable net operating income (NOI), retail and office lease expirations,
significant retail and office tenant listings and schedule of debt maturities.
The term "comparable", which is used throughout this document, is defined as
including properties that were opened and operated in both the first six months
of 2003 and 2002.
We believe occupancy rates, retail and office lease expirations and significant
retail and office tenant listings represent meaningful operating statistics
about our company. This information will give interested parties a greater
understanding and more information about the operating performance of our
company.
Comparable NOI is a non-Generally Accepted Accounting Principle (GAAP) financial
measure that is provided to supplement information presented in our Annual
Reports on Form 10-K and Quarterly Reports on Form10-Q that we file with the
Securities and Exchange Commission. We believe comparable NOI is useful to our
investors because it measures the performance of the same properties on a
period-to-period basis. A reconciliation of net earnings, the most comparable
financial measure calculated in accordance with GAAP, to NOI is provided in the
exhibit section to this document. 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 Forest City's overall financial performance
from quarter-to-quarter and year-to-year.
Our schedule of debt maturities contains both GAAP (full consolidation
accounting method) and non-GAAP (pro-rata consolidation method) financial
measures. We believe the pro-rata schedule of debt maturities provides a more
useful and meaningful measure to our investors, because it shows our share of
the maturities of the debt we manage during the period disclosed (2003-2007 and
afterward). A reconciliation of the full consolidation method and pro-rata
consolidation method of accounting is presented within the schedule of debt
maturities.
We present certain financial amounts under the pro rata method, because we
believe that this method more accurately reflects the manner in which we operate
our business. This is because, 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 sharing risk. Under the pro rata consolidation method, we present our
investments proportionate to our share of ownership, except for our syndicated
residential properties, which are accounted for on the equity method. Under
GAAP, the full consolidation method is used to report partnership assets and
liabilities as consolidated at 100% if deemed to be under our control, even if
our ownership is not 100%.
Generally, we believe these non-GAAP financial measures, mentioned above,
provide supplemental information about our operations, and along with net
earnings and other GAAP measures, are necessary to understand our operating
results. We believe our investors use these non-GAAP measures as a supplementary
measure to evaluate operating performance and our ability to service our debt
obligations. Our non-GAAP financial measures are not intended to be performance
measures that should be regarded as alternatives to, or more meaningful than,
our GAAP financial measures.
CORPORATE OFFICE
- ----------------
Forest City Enterprises, Inc.
Terminal Tower
50 Public Square, Suite 1100
Cleveland, Ohio 44113
SEC FORM ON 10-K
- ----------------
A copy of the Annual Report on Form 10-K
as filed with the Securities and Exchange
Commission can be found on our website or
may be obtained without charge upon written
request to:
Thomas T. Kmiecik
Assistant Treasurer
tomkmiecik@forestcity.net
WEBSITE
- -------
www.forestcity.net
The information contained on this website is not
incorporated herein by reference and does not constitute
a part of this supplemental package.
INVESTOR RELATIONS
- ------------------
Thomas G. Smith, Executive Vice President
Chief Financial Officer
Thomas T. Kmiecik
Assistant Treasurer
(216) 621-6060
TRANSFER AGENT AND REGISTRAR
- ----------------------------
National City Bank
Stock Transfer Department
P.O. Box 92301
Cleveland, Ohio 44193-0900
(800) 622-6757
www.shareholder.inquiries@nationalcity.com
STOCK EXCHANGE LISTING
- ----------------------
NYSE: FCEA and FCEB
DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
- ---------------------------------------------
The Company offers its stockholders the opportunity
to purchase additional shares of common stock through
the Forest City Enterprises, Inc. Dividend Reinvestment
and Stock Purchase Plan at 97% of current market value.
A copy of the Plan prospectus and an enrollment card
may be obtained by contacting National City Bank at (800) 622-6757.
OPERATING AND OTHER DATA
[PICTURE]
FOREST CITY ENTERPRISES, INC.
SIX MONTHS ENDED JULY 31, 2003
OCCUPANCY DATA
AVERAGE AVERAGE
OCCUPANCY OCCUPANCY OCCUPANCY OCCUPANCY
AS OF YTD AS OF YTD
JULY 31, 2003 JULY 31, 2003 JULY 31, 2002 JULY 31, 2002
------------- ------------- ------------- -------------
RETAIL
Comparable 90.5% 90.3% 91.2% 91.7%
Total 90.2% 89.5% 90.3% 91.1%
OFFICE
Comparable 92.4% 92.2% 93.4% 93.8%
Total 92.7% 89.2% 93.9% 90.7%
RESIDENTIAL
Comparable 90.3% 91.4% 92.4% 91.9%
Total 90.2% 89.4% 90.1% 85.2%
HOTELS
Comparable 73.2% 74.5%
ADR $134.73 $139.05
NOTES:
RETAIL AND OFFICE OCCUPANCY AS OF JULY 31, 2003 AND 2002 IS BASED ON SQUARE FEET
LEASED AT THE END OF THE FISCAL QUARTER. AVERAGE OCCUPANCY YTD FOR JULY 31, 2003
AND 2002 FOR RETAIL AND OFFICE IS CALCULATED BY DIVIDING THE SUM OF LEASED
SQUARE FEET AT THE BEGINNING AND END OF THE PERIOD, BY TWO. RESIDENTIAL
OCCUPANCY AS OF JULY 31, 2003 AND 2002 REPRESENTS TOTAL UNITS OCCUPIED DIVIDED
BY TOTAL UNITS AVAILABLE. AVERAGE RESIDENTIAL OCCUPANCY YEAR-TO-DATE FOR 2003
AND 2002 IS CALCULATED BY DIVIDING GROSS POTENTIAL RENT LESS VACANCY BY GROSS
POTENTIAL RENT. AVERAGE DAILY RATE (ADR) IS CALCULATED BY DIVIDING REVENUE BY
THE NUMBER OF ROOMS SOLD FOR THE SIX MONTHS ENDED JULY 31, 2003 AND 2002.
COMPARABLE NOI (% CHANGE OVER SAME PERIOD, PRIOR YEAR)
SIX MONTHS ENDED JULY 31, 2003
------------------------------
FULL PRO-RATA
CONSOLIDATION CONSOLIDATION
------------- -------------
RETAIL +1.2% +2.1%
OFFICE +0.1% -0.3%
HOTEL -43.2% -33.5%
RESIDENTIAL -6.3% -5.3%
TOTAL -3.5% -2.8%
NOTES:
SEE RECONCILIATION OF FULL CONSOLIDATION ACCOUNTING METHOD TO THE PRO-RATA
CONSOLIDATION METHOD IN THE EXHIBIT SECTION.
FOREST CITY ENTERPRISES, INC.
RETAIL LEASE EXPIRATIONS
AS OF JULY 31, 2003
NUMBER OF SQUARE FEET PERCENTAGE
OF LEASES OF LEASES OF TOTAL
EXPIRATION YEAR EXPIRING EXPIRING LEASED GLA*
- -------------------------------------------------------------------------------------------------------
2003 89 264,772 3.16%
2004 161 520,603 6.22%
2005 155 436,051 5.21%
2006 225 570,596 6.82%
2007 154 585,505 6.99%
2008 116 442,925 5.29%
2009 146 569,987 6.81%
2010 101 448,930 5.36%
2011 248 1,087,702 12.99%
2012 125 774,045 9.25%
2013 44 254,008 3.03%
THEREAFTER 80 2,415,287 28.87%
-------------------------------------------------------
TOTAL 1,644 8,370,411 100.00%
=======================================================
*GLA = Gross Leasable Area.
RETAIL LEASE EXPIRATIONS (%)
[GRAPH]
FOREST CITY ENTERPRISES, INC.
OFFICE LEASE EXPIRATIONS
AS OF JULY 31, 2003
NUMBER OF SQUARE FEET PERCENTAGE
OF LEASES OF LEASES OF TOTAL
EXPIRATION YEAR EXPIRING EXPIRING SQUARE FEET
- -------------------------------------------------------------------------------------------------------
2003 43 348,696 4.55%
2004 77 515,967 6.73%
2005 53 316,973 4.14%
2006 42 500,296 6.53%
2007 38 667,685 8.71%
2008 38 356,279 4.65%
2009 8 69,035 0.90%
2010 16 740,047 9.66%
2011 10 236,255 3.08%
2012 11 1,103,809 14.41%
2013 8 528,682 6.90%
THEREAFTER 21 2,278,438 29.74%
------------------------------------------------------
TOTAL 365 7,662,162 100.00%
======================================================
OFFICE LEASE EXPIRATIONS (%)
[GRAPH]
FOREST CITY ENTERPRISES, INC.
SCHEDULE OF SIGNIFICANT RETAIL TENANTS
AS OF JULY 31, 2003
(BASED ON 1% OF TOTAL GLA OR GREATER)
PERCENTAGE
OF TOTAL
LEASED RETAIL
TENANT SQUARE FEET SQUARE FEET
- --------------------------------------------------------------------------------------------
REGAL ENTERTAINMENT GROUP 492,180 5.88%
THE GAP 337,025 4.03%
TJX COMPANIES 272,354 3.25%
AMC ENTERTAINMENT INC. 209,054 2.50%
THE LIMITED 198,343 2.37%
AHOLD USA (STOP & SHOP) 177,455 2.12%
THE GREAT INDOORS (Sears) 157,808 1.89%
HOME DEPOT 132,000 1.58%
CIRCUIT CITY 130,269 1.56%
LINENS-N-THINGS 130,045 1.55%
PATHMARK STORES, INC. 123,500 1.48%
CompUSA STORES 116,012 1.39%
FOOTLOCKER, INC. 110,431 1.32%
BEST BUY 102,661 1.23%
ABERCROMBIE & FITCH STORES INC. 98,123 1.17%
STAPLES 90,381 1.08%
-----------------------------
SUBTOTAL 2,877,641 34.40%
ALL OTHERS 5,492,770 65.60%
-----------------------------
TOTAL 8,370,411 100.00%
=============================
FOREST CITY ENTERPRISES, INC.
SCHEDULE OF SIGNIFICANT OFFICE TENANTS
AS OF JULY 31, 2003
(BASED ON SQUARE FOOTAGE 2% OR GREATER)
PERCENTAGE
OF TOTAL
LEASED OFFICE
TENANT SQUARE FEET SQUARE FEET
- ------------------------------------------------------------------------------------------------------
CITY OF NEW YORK 816,190 10.65%
MILLENNIUM PHARMACEUTICALS INC 750,842 9.80%
U.S. GOVERNMENT 579,593 7.56%
KEYSPAN ENERGY 481,131 6.28%
SECURITIES INDUSTRY AUTOMATION CORP. 428,786 5.60%
MORGAN STANLEY COMPANY 419,156 5.47%
EMPIRE BLUE CROSS AND BLUE SHEILD 392,518 5.12%
FEDERATED INVESTORS INC. 345,266 4.51%
BEAR STEARNS 291,044 3.80%
ALKERMES INC. 210,248 2.74%
FOREST CITY ENTERPRISES, INC. 208,654 2.72%
-----------------------------
SUBTOTAL 4,923,428 64.25%
ALL OTHERS 2,738,734 35.75%
-----------------------------
TOTAL 7,662,162 100.00%
=============================
DEBT MATURITY
[PICTURE]
FOREST CITY ENTERPRISES, INC.
Scheduled Maturities Table: Non-Recourse Mortgage Debt
As of July 31, 2003
2003
--------------------------------------------------------------
Plus
Unconsolidated
Full Less Minority Investments at Pro-Rata
Consolidation Interest Pro-Rata Consolidation
--------------------------------------------------------------
FIXED:
Fixed rate debt 43,341 8,369 16,543 51,515
UDAG 4,911 2,292 10,895 13,514
------- ------ ------ -------
Total Fixed Rate Debt 48,252 10,661 27,438 65,029
VARIABLE:
Variable rate debt 332,617 84,930 62,728 310,415
Tax Exempt 16,660 3,365 5,510 18,805
------- ------ ------ -------
Total Variable Rate Debt 349,277 88,295 68,238 329,220
TOTAL NON-RECOURSE MORTGAGE
DEBT 397,529 98,956 95,676 394,249
WEIGHTED AVERAGE RATE 3.96% 4.10% 4.64% 4.10%
2004
--------------------------------------------------------------
Plus
Unconsolidated
Full Less Minority Investments at Pro-Rata
Consolidation Interest Pro-Rata Consolidation
--------------------------------------------------------------
FIXED:
Fixed rate debt 59,572 13,114 27,542 74,000
UDAG 365 91 -- 274
------- ------ ------- -------
Total Fixed Rate Debt 59,937 13,205 27,542 74,274
VARIABLE:
Variable rate debt 157,686 28,650 89,833 218,869
Tax Exempt 36,340 1,985 31,621 65,976
------- ------ ------- -------
Total Variable Rate Debt 194,026 30,635 121,454 284,845
TOTAL NON-RECOURSE MORTGAGE
DEBT 253,963 43,840 148,996 359,119
WEIGHTED AVERAGE RATE 4.26% 4.53% 3.84% 4.05%
2005
--------------------------------------------------------------
Plus
Unconsolidated
Full Less Minority Investments at Pro-Rata
Consolidation Interest Pro-Rata Consolidation
--------------------------------------------------------------
FIXED:
Fixed rate debt 133,583 16,944 41,029 157,668
UDAG 10,876 94 -- 10,782
------- ------ ------- -------
Total Fixed Rate Debt 144,459 17,038 41,029 168,450
VARIABLE:
Variable rate debt 59,315 10,071 46,683 95,927
Tax Exempt 21,000 -- 40,057 61,057
------- ------ ------- -------
Total Variable Rate Debt 80,315 10,071 86,740 156,984
TOTAL NON-RECOURSE MORTGAGE
DEBT 224,774 27,109 127,769 325,434
WEIGHTED AVERAGE RATE 5.69% 5.59% 4.70% 5.31%
2006
--------------------------------------------------------------
Plus
Unconsolidated
Full Less Minority Investments at Pro-Rata
Consolidation Interest Pro-Rata Consolidation
--------------------------------------------------------------
FIXED:
Fixed rate debt 413,072 84,850 36,083 364,305
UDAG 8,050 480 -- 7,570
------- ------ ------ -------
Total Fixed Rate Debt 421,122 85,330 36,083 371,875
VARIABLE:
Variable rate debt 5,965 119 4,687 10,533
Tax Exempt -- -- 63 63
------- ------ ------ -------
Total Variable Rate Debt 5,965 119 4,750 10,596
TOTAL NON-RECOURSE MORTGAGE
DEBT 427,087 85,449 40,833 382,471
WEIGHTED AVERAGE RATE 6.44% 6.16% 7.50% 6.61%
2007
--------------------------------------------------------------
Plus
Unconsolidated
Full Less Minority Investments at Pro-Rata
Consolidation Interest Pro-Rata Consolidation
--------------------------------------------------------------
FIXED:
Fixed rate debt 120,595 22,613 114,003 211,985
UDAG 402 100 -- 302
------- ------ ------- -------
Total Fixed Rate Debt 120,997 22,713 114,003 212,287
VARIABLE:
Variable rate debt 24,821 2,127 10,828 33,522
Tax Exempt -- -- 70 70
------- ------ ------- -------
Total Variable Rate Debt 24,821 2,127 10,898 33,592
TOTAL NON-RECOURSE MORTGAGE
DEBT 145,818 24,840 124,901 245,879
WEIGHTED AVERAGE RATE 6.72% 6.99% 7.19% 6.93%
THEREAFTER
--------------------------------------------------------------
Plus
Unconsolidated
Full Less Minority Investments at Pro-Rata
Consolidation Interest Pro-Rata Consolidation
--------------------------------------------------------------
FIXED:
Fixed rate debt 1,506,125 272,391 321,018 1,554,752
UDAG 51,112 10,547 966 41,531
--------- ------- ------- ---------
Total Fixed Rate Debt 1,557,237 282,938 321,984 1,596,283
VARIABLE:
Variable rate debt 157,526 4,174 3,459 156,811
Tax Exempt 31,000 6,200 2,524 27,324
--------- ------- ------- ---------
Total Variable Rate Debt 188,526 10,374 5,983 184,135
TOTAL NON-RECOURSE MORTGAGE
DEBT 1,745,763 293,312 327,967 1,780,418
WEIGHTED AVERAGE RATE 6.50% 6.76% 7.01% 6.55%
TOTAL
--------------------------------------------------------------
Plus
Unconsolidated
Full Less Minority Investments at Pro-Rata
Consolidation Interest Pro-Rata Consolidation
--------------------------------------------------------------
FIXED:
Fixed rate debt 2,276,288 418,281 556,218 2,414,225
Weighted average rate 6.98% 6.90% 7.44% 7.10%
UDAG 75,716 13,604 11,862 73,974
Weighted average rate 2.02% 2.24% 7.35% 2.83%
Total Fixed Rate Debt 2,352,004 431,885 568,080 2,488,199
VARIABLE:
Variable rate debt 737,930 130,071 218,218 826,077
Weighted average rate 3.73% 3.84% 3.34% 3.61%
Tax Exempt 105,000 11,550 79,845 173,295
Weighted average rate 1.97% 1.71% 2.08% 2.03%
Total Variable Rate Debt 842,930 141,621 298,063 999,372
TOTAL NON-RECOURSE MORTGAGE
DEBT 3,194,934 573,506 866,143 3,487,571
WEIGHTED AVERAGE RATE 5.95% 5.99% 5.91% 5.93%
[GRAPH]
EXHIBITS
[PICTURE]
NET OPERATING INCOME (In Thousands)
----------------------------------------------------------------
Six Months Ended July 31, 2003
----------------------------------------------------------------
Plus
Unconsol- Plus
Full Less idated Discont- Pro-Rata
Consol- Minority Investments inued Consol-
idation Interest at Pro-Rata Operations idation
----------------------------------------------------------------
COMMERCIAL GROUP
RETAIL
Comparable 54,648 8,425 10,658 -- 56,881
-----------------------------------------------------------------------------------------------
Total 65,820 11,709 10,658 -- 64,769
OFFICE BUILDINGS
Comparable 60,025 10,859 2,191 -- 51,357
-----------------------------------------------------------------------------------------------
Total 76,319 13,684 2,191 -- 64,826
HOTELS
Comparable 4,873 427 1,275 -- 5,721
-----------------------------------------------------------------------------------------------
Total 12,701 4,033 1,275 -- 9,943
OTHER 6,385 550 2,108 -- 7,943
TOTAL COMMERCIAL GROUP
Comparable 119,546 19,711 14,124 -- 113,959
-----------------------------------------------------------------------------------------------
Total 161,225 29,976 16,232 -- 147,481
RESIDENTIAL GROUP
Comparable 41,914 265 7,943 -- 49,592
-----------------------------------------------------------------------------------------------
Total 55,805 886 11,726 (62) 66,583
TOTAL REAL ESTATE GROUPS
Comparable 161,460 19,976 22,067 -- 163,551
-----------------------------------------------------------------------------------------------
Total 217,030 30,862 27,958 (62) 214,064
LAND DEVELOPMENT GROUP 14,402 1,118 501 -- 13,785
LUMBER TRADING GROUP 1,998 -- -- -- 1,998
CORPORATE GROUP (12,378) -- -- -- (12,378)
- -------------------------------------------------------------------------------------------------
GRAND TOTAL 221,052 31,980 28,459 (62) 217,469
=================================================================================================
NET OPERATING INCOME (In Thousands)
--------------------------------------------------------------------------------------------------
Six Months Ended July 31, 2002 % Change
------------------------------------------------------------------- ------------------------
Plus
Unconsol- Plus
Full Less idated Discont- Pro-Rata Full Pro-Rata
Consol- Minority Investments inued Consol- Consol- Consol-
idation Interest at Pro-Rata Operations idation idation idation
------------------------------------------------------------------- ------------------------
COMMERCIAL GROUP
RETAIL
Comparable 53,988 7,997 9,693 -- 55,684 1.2% 2.1%
------------------------------------------------------------------------------------------------
Total 57,781 9,137 9,693 1,943 60,280
OFFICE BUILDINGS
Comparable 59,987 10,708 2,231 -- 51,510 0.1% (0.3%)
------------------------------------------------------------------------------------------------
Total 67,176 13,321 2,231 -- 56,086
HOTELS
Comparable 8,577 1,273 1,302 -- 8,606 (43.2%) (33.5%)
------------------------------------------------------------------------------------------------
Total 11,775 2,582 1,302 -- 10,495
OTHER (2,338) 469 68 -- (2,739)
TOTAL COMMERCIAL GROUP
Comparable 122,552 19,978 13,226 -- 115,800 (2.5%) (1.6%)
------------------------------------------------------------------------------------------------
Total 134,394 25,509 13,294 1,943 124,122
RESIDENTIAL GROUP
Comparable 44,725 274 7,925 -- 52,376 (6.3%) (5.3%)
------------------------------------------------------------------------------------------------
Total 43,758 501 9,142 359 52,758
TOTAL REAL ESTATE GROUPS
Comparable 167,277 20,252 21,151 -- 168,176 (3.5%) (2.8%)
------------------------------------------------------------------------------------------------
Total 178,152 26,010 22,436 2,302 176,880
LAND DEVELOPMENT GROUP 19,425 1,224 1,100 -- 19,301
LUMBER TRADING GROUP 1,476 -- -- -- 1,476
CORPORATE GROUP (9,630) -- -- -- (9,630)
- --------------------------------------------------------------------------------------------------
GRAND TOTAL 189,423 27,234 23,536 2,302 188,027
==================================================================================================
RECONCILIATION OF NET OPERATING INCOME TO NET EARNINGS:
SIX MONTHS ENDED JULY 31, 2003
---------------------------------------------------------------
PLUS
UNCONSOL- PLUS
FULL LESS IDATED DISCONT- PRO-RATA
CONSOL- MINORITY INVESTMENTS INUED CONSOL-
IDATION INTEREST AT PRO-RATA OPERATIONS IDATION
----------------------------------------------------------------
Revenues $ 495,993 $ 77,019 $ 112,685 $ 687 $ 532,346
Exclude straight-line rent adjustment (1) (4,782) -- -- -- (4,782)
Add back equity method depreciation expense (see below) 14,483 -- (14,236) -- 247
----------------------------------------------------------------
ADJUSTED REVENUES 505,694 77,019 98,449 687 527,811
Operating expenses 284,972 45,039 69,910 749 310,592
Add back depreciation and amortization for non-Real
Estate Groups (a) 1,921 -- 80 -- 2,001
Exclude straight-line rent adjustment (2) (2,251) -- -- -- (2,251)
----------------------------------------------------------------
ADJUSTED OPERATING EXPENSES 284,642 45,039 69,990 749 310,342
----------------------------------------------------------------
NET OPERATING INCOME 221,052 31,980 28,459 (62) 217,469
Interest expense (92,392) (15,510) (28,459) -- (105,341)
Loss (gain) on early extinguishment of debt (10,718) 98 -- -- (10,816)
Provision for decline in real estate (2,728) (331) -- -- (2,397)
Depreciation and amortization (a) (58,837) (9,138) (14,236) (57) (63,992)
Straight-line rent adjustment (1) + (2) 2,531 -- -- -- 2,531
Equity method depreciation expense (see above) (14,483) -- 14,236 -- (247)
(Loss) gain on disposition of other investments (431) -- -- 88 (343)
----------------------------------------------------------------
EARNINGS BEFORE INCOME TAXES 43,994 7,099 -- (31) 36,864
Income tax (provision) benefit (15,481) -- -- 12 (15,469)
----------------------------------------------------------------
EARNINGS BEFORE MINORITY INTEREST AND DISCONTINUED OPERATIONS 28,513 7,099 -- (19) 21,395
Minority interest (7,099) (7,099) -- -- --
----------------------------------------------------------------
EARNINGS FROM CONTINUING OPERATIONS 21,414 -- -- (19) 21,395
Discontinued operations, net of tax and minority interest:
(Loss) earnings from operations (72) -- -- 72 --
Gain on disposition of operating properties 53 -- -- (53) --
----------------------------------------------------------------
(19) -- -- 19 --
----------------------------------------------------------------
NET EARNINGS $ 21,395 $ -- $ -- $-- $ 21,395
================================================================
(a) Depreciation and amortization per above $ 58,837 $ 9,138 $ 14,236 $ 57 $ 63,992
Depreciation and amortization - Non-Real Estate Groups 1,921 -- 80 -- 2,001
----------------------------------------------------------------
Total depreciation and amortization $ 60,758 $ 9,138 $ 14,316 $ 57 $ 65,993
================================================================
SIX MONTHS ENDED JULY 31, 2002
---------------------------------------------------------------
PLUS
UNCONSOL- PLUS
FULL LESS IDATED DISCONT- PRO-RATA
CONSOL- MINORITY INVESTMENTS INUED CONSOL-
IDATION INTEREST AT PRO-RATA OPERATIONS IDATION
-----------------------------------------------------------------
Revenues $ 448,339 $ 61,886 $ 88,842 $ 5,091 $ 480,386
Exclude straight-line rent adjustment (1) (4,565) -- -- (27) (4,592)
Add back equity method depreciation expense (see below) 12,272 -- (12,034) -- 238
-----------------------------------------------------------------
ADJUSTED REVENUES 456,046 61,886 76,808 5,064 476,032
Operating expenses 267,975 34,652 53,199 2,762 289,284
Add back depreciation and amortization for non-Real 2,109 -- 73 -- 2,182
Estate Groups (a)
Exclude straight-line rent adjustment (2) (3,461) -- -- -- (3,461)
-----------------------------------------------------------------
ADJUSTED OPERATING EXPENSES 266,623 34,652 53,272 2,762 288,005
-----------------------------------------------------------------
NET OPERATING INCOME 189,423 27,234 23,536 2,302 188,027
Interest expense (88,135) (16,445) (23,536) (822) (96,048)
Loss (gain) on early extinguishment of debt (380) -- -- -- (380)
Provision for decline in real estate -- -- -- -- --
Depreciation and amortization (a) (52,259) (8,935) (12,034) (655) (56,013)
Straight-line rent adjustment (1) + (2) 1,104 -- -- 27 1,131
Equity method depreciation expense (see above) (12,272) -- 12,034 -- (238)
(Loss) gain on disposition of other investments (116) -- -- -- (116)
-----------------------------------------------------------------
EARNINGS BEFORE INCOME TAXES 37,365 1,854 -- 852 36,363
Income tax (provision) benefit (13,709) -- -- 165 (13,544)
-----------------------------------------------------------------
EARNINGS BEFORE MINORITY INTEREST AND DISCONTINUED OPERATIONS 23,656 1,854 -- 1,017 22,819
Minority interest (1,854) (1,854) -- -- --
-----------------------------------------------------------------
EARNINGS FROM CONTINUING OPERATIONS 21,802 -- -- 1,017 22,819
Discontinued operations, net of tax and minority interest:
(Loss) earnings from operations 1,017 -- -- (1,017) --
Gain on disposition of operating properties -- -- -- -- --
-----------------------------------------------------------------
1,017 -- -- (1,017) --
-----------------------------------------------------------------
NET EARNINGS $ 22,819 $ -- $ -- $ -- $ 22,819
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(a) Depreciation and amortization per above $ 52,259 $ 8,935 $ 12,034 $ 655 $ 56,013
Depreciation and amortization - Non-Real Estate Groups 2,109 -- 73 -- 2,182
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Total depreciation and amortization $ 54,368 $ 8,935 $ 12,107 $ 655 $ 58,195
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