Forest City Realty Trust, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
EX-99.2 - EXHIBIT 99.2 - Forest City Realty Trust, Inc.	fcrtex992erq1-2017.htm
8-K - 8-K - Forest City Realty Trust, Inc.	a8kforsupppackq1-2017.htm

Exhibit 99.1

Supplemental Package

For the Quarter Ended March 31, 2017

Forest City Realty Trust, Inc. and Subsidiaries - Supplemental Package

First Quarter 2017

Index



Corporate Description	2
Selected Financial Information
Consolidated Balance Sheets	7
Consolidated Statements of Operations	9
Net Asset Value Components	11
Supplemental Operating Information
Occupancy Data	15
Retail Sales Data	16
Leasing Summary	17
Comparable Net Operating Income (NOI)	19
NOI Detail	20
NOI by Product Type	21
NOI by Core Market	22
Reconciliation of Earnings (Loss) Before Income Taxes to NOI	23
Net Earnings	24
Interest Expense and Capital Expenditures	25
Reconciliation of Net Earnings to FFO	26
Reconciliation of FFO to Operating FFO	27
Reconciliation of NOI to Operating FFO	27
Reconciliation of Net Earnings to EBITDA	28
Operating FFO Bridge	29
Historical Trends	31
Development Pipeline	33
Supplemental Financial Information
Common Stock Data/Financial Covenants	38
Nonrecourse Debt Maturities Table	39
Appendix	41

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, perhaps materially, from the results discussed in the forward-looking statements. Risk factors discussed in Item 1A of our Form 10-K for the year ended December 31, 2016 and other factors that might cause differences, some of which could be material, include, but are not limited to, our failure to receive stockholder approval of the reclassification proposal, any other delays with respect to, or the failure to complete, the reclassification, our ability to carry out future transactions and strategic investments, as well as the acquisition related costs, unanticipated difficulties realizing expected benefits expected when entering into a transaction, our ability to qualify or to remain qualified as a REIT, our ability to satisfy REIT distribution requirements, the impact of issuing equity, debt or both, and selling assets to satisfy our future distributions required as a REIT or to fund capital expenditures, future growth and expansion initiatives, the impact of the amount and timing of any future distributions, the impact from complying with REIT qualification requirements limiting our flexibility or causing us to forego otherwise attractive opportunities beyond rental real estate operations, the impact of complying with the REIT requirements related to hedging, our lack of experience operating as a REIT, legislative, administrative, regulatory or other actions affecting REITs, including positions taken by the Internal Revenue Service, the possibility that our Board of Directors will unilaterally revoke our REIT election, the possibility that the anticipated benefits of qualifying as a REIT will not be realized, or will not be realized within the expected time period, the impact of current lending and capital market conditions on our liquidity, our ability to finance or refinance projects or repay our debt, the impact of the slow economic recovery on the ownership, development and management of our commercial real estate portfolio, general real estate investment and development risks, litigation risks, including risks with respect to the outcome of any legal proceedings that have or may be instituted against us or others relating to the reclassification, vacancies in our properties, risks associated with developing and managing properties in partnership with others, competition, our ability to renew leases or re-lease spaces as leases expire, illiquidity of real estate investments, our ability to identify and transact on chosen strategic alternatives for a portion of our retail portfolio, bankruptcy or defaults of tenants, anchor store consolidations or closings, the impact of terrorist acts and other armed conflicts, our substantial debt leverage and the ability to obtain and service debt, the impact of restrictions imposed by our revolving credit facility, term loan and senior debt, exposure to hedging agreements, the level and volatility of interest rates, the continued availability of tax-exempt government financing, our ability to receive payment on the notes receivable issued by Onexim in connection with their purchase of our interests in the Barclays Center and the Nets, the impact of credit rating downgrades, effects of uninsured or underinsured losses, effects of a downgrade or failure of our insurance carriers, environmental liabilities, competing interests of our directors and executive officers, the ability to recruit and retain key personnel, risks associated with the sale of tax credits, downturns in the housing market, the ability to maintain effective internal controls, compliance with governmental regulations, increased legislative and regulatory scrutiny of the financial services industry, changes in federal, state or local tax laws and international trade agreements, volatility in the market price of our publicly traded securities, inflation risks, cybersecurity risks, cyber incidents, shareholder activism efforts, conflicts of interest, risks related to our organizational structure including operating through our Operating Partnership and our UPREIT structure, as well as other risks listed from time to time in our SEC filings, including but not limited to, our annual and quarterly reports. We have no obligation to revise or update any forward-looking statements, other than as 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.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Financial and Operating Information

Corporate Description

We principally engage in the operation, development, management and acquisition of office, apartment and retail real estate and land throughout the United States. We have approximately $8.2 billion of consolidated assets in 20 states and the District of Columbia at March 31, 2017. Our core markets include Boston, Chicago, Dallas, Denver, Los Angeles, Philadelphia and the greater metropolitan areas of New York City, San Francisco and Washington D.C. We have regional offices in Boston, Dallas, Denver, Los Angeles, New York City, San Francisco, Washington, D.C. and our corporate headquarters in Cleveland, Ohio.

Segments

Real Estate Operations represents the performance of our core rental real estate portfolio and is comprised of the following reportable operating segments:


•	Office - owns, acquires and operates office and life science buildings.


•	Apartments - owns, acquires and operates rental properties, including upscale and middle-market apartments, adaptive re-use developments and subsidized senior housing.


•	Retail - owns, acquires and operates amenity retail within our mixed-use projects, regional malls and specialty/urban retail centers .

The remaining reportable operating segments consist of the following:

•

Development - develops and constructs office and life science buildings, apartments, condominiums, amenity retail, regional malls, specialty/urban retail centers and mixed-use projects. The Development segment includes recently opened operating properties prior to stabilization and the horizontal development and sale of land to residential, commercial and industrial customers primarily at our Stapleton project in Denver, Colorado.


•	Corporate - provides executive oversight to the company and various support services for Operations, Development and Corporate employees.


•	Other - owned and operated several non-core investments, including the Barclays Center, a sports and entertainment arena located in Brooklyn, New York (“Arena”) (sold in January 2016), our equity method investment in the Brooklyn Nets (the “Nets”) (sold in January 2016), and military housing operations (sold in February 2016).

Segment Transfers

The Development segment includes projects in development and projects under construction along with recently opened operating properties prior to stabilization. Projects will be reported in their applicable operating segment (Office, Apartments or Retail) beginning on January 1 of the year following stabilization. Therefore, the Development segment will continue to report results from recently opened properties until the year-end following initial stabilization. We generally define stabilized properties as achieving 92% or greater occupancy or having been open and operating for one or two years, depending on the size of the project. Once a stabilized property is transferred to the applicable Operations segment on January 1, it will be considered “comparable” beginning on the following January 1.

Segment Reclassifications

We recently completed an internal reorganization and began presenting new reportable operating segments during the three months ended September 30, 2016. The prior period has been recast to conform to the current period presentation.

Concurrent with our internal reorganization, certain functions previously performed within our old business unit structure were centralized into our corporate segment. We analyzed the allocation methodology of these new corporate functions and our historic corporate functions and how it relates to support services provided to our new segments within our new organizational structure. As a result of this analysis, certain expenses previously recorded in the old business units and reported on the property operating and management expenses financial statement line item are recorded in the corporate segment and included in the corporate general and administrative expense financial statement line item. To conform to the current year presentation, $1,460,000 has been reclassed from property operating and management expenses to corporate general and administrative expenses for the three months ended March 31, 2016.

Company Operations

We believe that we are organized in a manner enabling us to qualify, and intend to operate in a manner allowing us to continue to qualify, as a REIT for federal income tax purposes. As such, we intend to elect REIT status for our taxable year ended December 31, 2016, upon filing the 2016 Form 1120-REIT with the Internal Revenue Service on or before October 15, 2017.

We hold substantially all of our assets, and conduct substantially all of our business, through the Operating Partnership. We are the sole general partner of the Operating Partnership and, as of March 31, 2017, we directly or indirectly own all of the limited partnership interests in the Operating Partnership.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Financial and Operating Information

We hold and operate certain of our assets through one or more taxable REIT subsidiaries (“TRSs”). A TRS is a subsidiary of a REIT subject to applicable corporate income tax. Our use of TRSs enables us to continue to engage in certain businesses while complying with REIT qualification requirements and allows us to retain income generated by these businesses for reinvestment without the requirement of distributing those earnings. The primary non-REIT qualified businesses held in TRSs include 461 Dean Street, an apartment building in Brooklyn, New York, the Pacific Park Brooklyn project, land development operations, Barclays Center arena (sold in January 2016), the Nets (sold in January 2016) and military housing operations (sold in February 2016). In the future, we may elect to reorganize and transfer certain assets or operations from our TRSs to other subsidiaries, including qualified REIT subsidiaries.

Supplemental Financial and Operating Information

We recommend this supplemental package be read in conjunction with our Form 10-Q for the three months ended March 31, 2017. This supplemental package contains consolidated financial statements prepared in accordance with generally accepted accounting principles (“GAAP”). We also present certain financial information at total company ownership because we believe this information is useful to financial statement users as this method reflects the manner in which we operate our business. We believe financial information and other operating metrics at total company ownership including net asset value (“NAV”) components, net operating income (“NOI”), comparable NOI, Funds From Operations (“FFO”), Operating FFO, Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), Adjusted EBITDA and Net Debt to Adjusted EBITDA are necessary to understand our business and operating results, along with net earnings and other GAAP measures. Our financial statement users can use these non-GAAP measures as supplementary information to evaluate our business. Our non-GAAP measures or information shown at total company ownership are not intended to be performance measures that should be regarded as alternatives to, or more meaningful than, our GAAP measures.

This supplemental package also contains financial information of entities consolidated under GAAP (“Fully Consolidated Entities”), financial information on our partners’ share of entities consolidated under GAAP (“Noncontrolling Interest”) and financial information on our share of entities accounted for using the equity method of accounting (“Company Share of Unconsolidated Entities”). We believe disclosing financial information on Fully Consolidated Entities, Noncontrolling Interest and Company Share of Unconsolidated Entities is essential to allow our financial statement users the ability to arrive at our total company ownership of all of our real estate investments, whether or not we “control” the investment under GAAP.

Financial information related to Fully Consolidated Entities, Noncontrolling Interest and Company Share of Unconsolidated Entities is included in the Appendix section of this supplemental package.

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 earnings (loss) before income taxes to NOI, reconciliation of net earnings to FFO, reconciliation of FFO to Operating FFO, reconciliation of NOI to Operating FFO, reconciliation of net earnings to EBITDA, Operating FFO bridge, historical trends and our development pipeline. We believe this information gives 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 stabilized properties open and operated in the three months ended March 31, 2017 and 2016. We believe occupancy data, retail sales data, leasing spreads on office and retail properties, and other rental rate information on multi-family properties represent meaningful operating statistics about us.

Consolidation Method

In line with industry practice, we have a number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. Under GAAP, the full consolidation method is used to report assets and liabilities 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%.

Net Asset Value Components

We disclose components of our business relevant to calculate 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 NAV 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. NAV components are shown at our total company ownership. We believe disclosing the components at total company ownership is essential to estimate NAV, as they represent our estimated proportionate amount of assets and liabilities the Company is entitled to.

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 at the Company’s share. Although these measures are not presented in accordance with GAAP, investors can use these non-GAAP measures as supplementary information to evaluate our business.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Financial and Operating Information

FFO

FFO, a non-GAAP measure, along with net earnings, provides additional information about our core operations. While property dispositions, acquisitions or other factors impact net earnings in the short-term, we believe FFO presents a more consistent view of the overall financial performance of our business from period-to-period since the core of our business is the recurring operations of our portfolio of real estate assets. Management believes that the exclusion from FFO of gains and losses from the sale of operating real estate assets allows investors and analysts to readily identify the operating results of the Company’s core assets and assists in comparing those operating results between periods. Implicit in historical cost accounting for real estate assets in accordance with GAAP is the assumption that the value of real estate assets diminishes ratably over time. Since real estate values have historically risen or fallen with market conditions, many real estate investors and analysts have considered presentations of operating results for real estate companies using historical cost accounting alone to be insufficient. Because FFO excludes depreciation and amortization of real estate assets and impairment of depreciable real estate, management believes that FFO, along with the required GAAP presentations, provides a more complete measurement of the Company’s performance relative to its competitors and a more appropriate basis on which to make decisions involving operating, financing and investing activities than the required GAAP presentations alone would provide.

The majority of our peers in the publicly traded real estate industry report operations using FFO as defined by the National Association of Real Estate Investment Trusts (“NAREIT”). FFO is defined by NAREIT as net earnings excluding the following items at our ownership: i) gain (loss) on full or partial 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); and iv) cumulative or retrospective effect of change in accounting principle (net of tax).

Operating FFO

In addition to reporting FFO, we report Operating FFO, a non-GAAP measure, as an additional measure of our operating performance. We believe it is appropriate to adjust FFO for significant items driven by transactional activity and factors relating to the financial and real estate markets, rather than factors specific to the on-going operating performance of our properties. We use Operating FFO as an indicator of continuing operating results in planning and executing our business strategy. Operating FFO should not be considered to be an alternative to net earnings computed under GAAP as an indicator of our operating performance and may not be directly comparable to similarly-titled measures reported by other companies.

We define Operating FFO as FFO adjusted to exclude: i) impairment of non-depreciable real estate; ii) write-offs of abandoned development projects and demolition costs; iii) income recognized on state and federal historic and other tax credits; iv) gains or losses from extinguishment of debt; v) change in fair market value of nondesignated hedges; vi) gains or losses on change in control of interests; vii) the adjustment to recognize rental revenues and rental expense using the straight-line method; viii) participation payments to ground lessors on refinancing of our properties; ix) other transactional items; x) the Nets pre-tax FFO; and xi) income taxes on FFO.

EBITDA

EBITDA, a non-GAAP measure, is defined as net earnings excluding the following items at our company share: i) non-cash charges for depreciation and amortization; ii) interest expense; iii) amortization of mortgage procurement costs; and iv) income taxes. EBITDA may not be directly comparable to similarly-titled measures reported by other companies. We use EBITDA as the starting point in order to calculate Adjusted EBITDA as described below.

Adjusted EBITDA

We define Adjusted EBITDA, a non-GAAP measure, as EBITDA adjusted to exclude: i) impairment of real estate; ii) gains or losses from extinguishment of debt; iii) gain (loss) on full or partial disposition of rental properties and other investments; iv) gains or losses on change in control of interests; v) other transactional items, including organizational transformation and termination benefits; and vi) the Nets pre-tax EBITDA. We believe EBITDA, Adjusted EBITDA and net debt to Adjusted EBITDA provide additional information in evaluating our credit and ability to service our debt obligations. Adjusted EBITDA is used by the chief operating decision maker and management to assess operating performance and resource allocations by segment and on a consolidated basis. Management believes Adjusted EBITDA gives the investment community a more complete understanding of the Company’s operating results, including the impact of general and administrative expenses and acquisition-related expenses, before the impact of investing and financing transactions and facilitates comparisons with competitors. However, Adjusted EBITDA should not be viewed as an alternative measure of the Company’s operating performance since it excludes financing costs as well as depreciation and amortization costs which are significant economic costs that could materially impact the Company’s results of operations and liquidity. Other REITs may use different methodologies for calculating Adjusted EBITDA and, accordingly, the Company’s Adjusted EBITDA may not be comparable to other REITs.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Financial and Operating Information

Net Debt to Adjusted EBITDA

Net Debt to Adjusted EBITDA, a non-GAAP measure, is defined as total debt, net at our company share (total debt includes outstanding borrowings on our revolving credit facility, our term loan facility, convertible senior debt, net, nonrecourse mortgages and notes payable, net) less cash and equivalents, at our company share, divided by Adjusted EBITDA. Net Debt to Adjusted EBITDA is a supplemental measure derived from non-GAAP financial measures that the Company uses to evaluate its capital structure and the magnitude of its debt against its operating performance. The Company believes that investors use versions of this ratio in a similar manner. The Company’s method of calculating the ratio may be different from methods used by other REITs and, accordingly, may not be comparable to other REITs.

NOI

NOI, a non-GAAP measure, reflects our share of the core operations of our rental real estate portfolio, prior to any financing activity. NOI is defined as revenues less operating expenses at our ownership within our Office, Apartments, Retail, and Development segments, except for revenues and cost of sales associated with sales of land held in these segments. The activities of our Corporate and Other segments do not involve the operations of our rental property portfolio and therefore are not included in NOI.

We believe NOI provides important information about our core operations and, along with earnings before income taxes, is necessary to understand our business and operating results. Because NOI excludes general and administrative expenses, interest expense, depreciation and amortization, revenues and cost of sales associated with sales of land, other non-property income and losses, and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, reflects the revenues and expenses directly associated with owning and operating office, apartment and retail real estate and the impact to operations from trends in occupancy rates, rental rates, and operating costs, providing a perspective on operations not immediately apparent from net income. We use NOI to evaluate our operating performance on a portfolio basis since NOI allows us to evaluate the impact that factors such as occupancy levels, lease structure, rental rates, and tenant mix have on our financial results. Investors can use NOI as supplementary information to evaluate our business. In addition, management believes NOI provides useful information to the investment community about our financial and operating performance when compared to other REITs since NOI is generally recognized as a standard measure of performance in the real estate industry. NOI is not intended to be a performance measure that should be regarded as an alternative to, or more meaningful than, our GAAP measures, and may not be directly comparable to similarly-titled measures reported by other companies.

Comparable NOI

We use comparable NOI as a metric to evaluate the performance of our office, apartment and retail properties. This measure provides a same-store comparison of operating results of all stabilized properties that are open and operating in all periods presented. Non-capitalizable development costs and unallocated management and service company overhead, net of service fee revenues, are not directly attributable to an individual operating property and are considered non-comparable NOI. In addition, certain income and expense items at the property level, such as lease termination income, real estate tax assessments or rebates, certain litigation expenses incurred and any related legal settlements and NOI impacts of changes in ownership percentages, are excluded from comparable NOI. Other properties and activities such as Arena, federally assisted housing, military housing, straight-line rent adjustments and participation payments as a result of refinancing transactions are not evaluated on a comparable basis and the NOI from these properties and activities is considered non-comparable NOI.

Comparable NOI is an operating statistic defined as NOI from stabilized properties operated in all periods presented. We believe 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. While property dispositions, acquisitions or other factors impact net earnings in the short term, we believe comparable NOI presents a more consistent view of the overall performance of our operating portfolio from period to period. A reconciliation of earnings (loss) before income taxes, the most comparable financial measure calculated in accordance with GAAP, to NOI, a reconciliation of NOI to earnings (loss) before income taxes for each operating segment and a reconciliation from NOI to comparable NOI are included in this supplemental package.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Financial and Operating Information

Corporate Headquarters

Forest City Realty Trust, 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 (“SEC”) for the year ended December 31, 2016, 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

Michael E. Lonsway

Executive Vice President - Planning

MikeLonsway@forestcity.net

Investor Presentations

We periodically post updated investor presentations on the Investors page of our website at www.forestcity.net. It is possible the periodic updates may include information deemed to be material. Therefore, we encourage investors, the media, and other interested parties to review the Investors page of our website at www.forestcity.net for the most recent investor presentation.

Transfer Agent and Registrar

Wells Fargo

Shareowner Services

P.O. Box 64854

St. Paul, MN 55164-9440

(800) 468-9716

www.shareowneronline.com

NYSE Listings

FCEA - Class A Common Stock ($.01 par value)

FCEB - Class B Common Stock ($.01 par value)

Dividend Reinvestment and Stock Purchase Plan

We offer our shareholders the opportunity to purchase additional shares of common stock through the Forest City Realty Trust, Inc. Dividend Reinvestment and Stock Purchase Plan (the “Plan”). 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.

Forest City Realty Trust, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheets – (Unaudited)



	March 31, 2017			December 31, 2016
	(in thousands)
Assets
Real Estate
Completed rental properties
Office	$	3,515,014		$	3,603,480
Apartments	2,604,760			2,586,720
Retail	288,659			288,582
Total Operations	6,408,433			6,478,782
Recently-Opened Properties/Redevelopment	759,457			622,939
Corporate	10,646			10,626
Total completed rental properties	7,178,536			7,112,347
Projects under construction
Office	121,074			110,526
Apartments	320,656			399,332
Retail	8,171			6,457
Total projects under construction	449,901			516,315
Projects under development
Operating properties	2,382			1,637
Office	106,881			103,598
Apartments	101,904			113,430
Retail	—			—
Total projects under development	211,167			218,665
Total projects under construction and development	661,068			734,980
Land inventory	78,014			68,238
Total Real Estate	7,917,618			7,915,565
Less accumulated depreciation	(1,461,370		)	(1,442,006		)
Real Estate, net	6,456,248			6,473,559
Cash and equivalents	146,426			174,619
Restricted cash	142,352			149,300
Accounts receivable, net	214,022			208,563
Notes receivable	382,746			383,163
Investments in and advances to unconsolidated entities	557,775			564,779
Lease procurement costs, net	60,934			66,065
Prepaid expenses and other deferred costs, net	69,977			73,987
Intangible assets, net	126,164			134,562
Total Assets	$	8,156,644		$	8,228,597

Forest City Realty Trust, Inc. and Subsidiaries

Selected Financial Information

Consolidated Balance Sheets – (Unaudited)



	March 31, 2017			December 31, 2016
	(in thousands)
Liabilities and Equity
Liabilities
Nonrecourse mortgage debt and notes payable, net
Completed rental properties
Office	$	1,097,213		$	1,152,425
Apartments	1,404,628			1,396,088
Retail	140,093			141,160
Total Operations	2,641,934			2,689,673
Recently-Opened Properties/Redevelopment	334,733			292,083
Total completed rental properties	2,976,667			2,981,756
Projects under construction
Office	48,013			37,660
Apartments	55,501			69,996
Retail	—			—
Total projects under construction	103,514			107,656
Projects under development
Operating properties	—			—
Office	—			—
Apartments	31,666			31,421
Retail	—			—
Total projects under development	31,666			31,421
Total projects under construction and development	135,180			139,077
Land inventory	—			—
Nonrecourse mortgage debt and notes payable, net	3,111,847			3,120,833
Revolving credit facility	—			—
Term loan, net	333,368			333,268
Convertible senior debt, net	112,295			112,181
Construction payables	129,965			137,738
Operating accounts payable and accrued expenses	511,755			562,784
Accrued derivative liability	19,891			26,202
Total Accounts payable, accrued expenses and other liabilities	661,611			726,724
Cash distributions and losses in excess of investments in unconsolidated entities	132,874			150,592
Total Liabilities	4,351,995			4,443,598
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss	3,326,753			3,298,248
Accumulated other comprehensive loss	(12,701		)	(14,410		)
Total Shareholders’ Equity	3,314,052			3,283,838
Noncontrolling interest	490,597			501,161
Total Equity	3,804,649			3,784,999
Total Liabilities and Equity	$	8,156,644		$	8,228,597

Forest City Realty Trust, Inc. and Subsidiaries

Selected Financial Information

Consolidated Statements of Operations – (Unaudited)



	Three Months Ended March 31,
	2017			2016
	(in thousands)
Revenues
Rental	$	162,449		$	163,183
Tenant recoveries	25,932			31,590
Service and management fees	10,127			8,682
Parking and other	11,738			15,357
Arena	—			—
Land sales	5,760			3,933
Subsidized Senior Housing	—			—
Military Housing	—			3,518
Total revenues	216,006			226,263
Expenses
Property operating and management	78,793			89,920
Real estate taxes	21,200			24,466
Ground rent	3,888			3,639
Arena operating	—			—
Cost of land sales	2,001			340
Subsidized Senior Housing operating	—			—
Military Housing operating	—			2,730
Corporate general and administrative	15,583			17,112
Organizational transformation and termination benefits	4,525			8,720
	125,990			146,927
Depreciation and amortization	63,555			63,211
Write-offs of abandoned development projects and demolition costs	—			—
Impairment of real estate	—			12,464
Total expenses	189,545			222,602
Operating Income	26,461			3,661
Interest and other income	10,272			9,654
Net gain on disposition of interest in unconsolidated entities	—			—
Interest expense	(27,975		)	(34,635		)
Amortization of mortgage procurement costs	(1,222		)	(1,665		)
Loss on extinguishment of debt	(2,843		)	(29,084		)
Earnings (loss) before income taxes and earnings from unconsolidated entities	4,693			(52,069		)
Equity in earnings	9,278			10,536
Net gain on disposition of interest in unconsolidated entities	17,701			—
	26,979			10,536
Earnings (loss) before income taxes	31,672			(41,533		)
Income tax expense of taxable REIT subsidiaries
Current	51			922
Deferred	—			528
	51			1,450
Earnings (loss) before gain on disposal of real estate	31,621			(42,983		)
Net gain (loss) on disposition of interest in development project	(113		)	136,117
Net gain on disposition of full or partial interests in rental properties, net of tax	9,303			89,641
Earnings from continuing operations	40,811			182,775
Discontinued operations, net of tax
Operating loss from rental properties	—			(1,126		)
Gain on disposition of disposal group	—			64,553
Equity in earnings (loss)	—			(822		)
	—			62,605
Net earnings	40,811			245,380
Noncontrolling interests, gross of tax
(Earnings) loss from continuing operations attributable to noncontrolling interests	106			(2,121		)
Loss from discontinued operations attributable to noncontrolling interests	—			776
	106			(1,345		)
Net earnings attributable to Forest City Realty Trust, Inc.	$	40,917		$	244,035

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Forest City Realty Trust, Inc. and Subsidiaries

Selected Financial Information

Net Asset Value Components – March 31, 2017



Completed Rental Properties - Operations
	Q1 2017				Net Stabilized			Stabilized			Annualized			Nonrecourse
(Dollars in millions)	NOI⁽¹⁾				Adjustments⁽²⁾			NOI			Stabilized NOI⁽³⁾			Debt, net ⁽⁴⁾
Operations	A				B			=A+B
Office Real Estate
Life Science
Cambridge	$	20.0			$	0.1		$	20.1		$	80.4		$	(506.4	)
Other Life Science	3.8				(0.2		)	3.6			14.4			(102.6		)
New York
Manhattan	15.6				(1.5		)	14.1			56.4			—
Brooklyn	23.4				—			23.4			93.6			(409.0		)
Central Business District	3.8				(0.1		)	3.7			14.8			(136.0		)
Suburban/Other	3.3			—	—			3.3			13.2			(82.1		)
Subtotal Office	$	69.9			$	(1.7	)	$	68.2		$	272.8		$	(1,236.1	)
Apartment Real Estate
Apartments, Core Markets	$	34.4		—	$	—		$	34.4		$	137.6		$	(1,369.0	)
Apartments, Non-Core Markets	11.0				—			11.0			44.0			(325.3		)
Subtotal Apartment Product Type	$	45.4			$	—		$	45.4		$	181.6		$	(1,694.3	)
Federally Assisted Housing ⁽⁵⁾	4.3				(0.4		)	3.9			15.6			(124.6		)
Subtotal Apartments	$	49.7			$	(0.4	)	$	49.3		$	197.2		$	(1,818.9	)
Retail Real Estate
Regional Malls	$	27.2			$	(1.5	)	$	25.7		$	102.8		$	(931.6	)
Specialty Retail Centers	12.2			—	0.1			12.3			49.2			(474.7		)
Subtotal Retail	$	39.4			$	(1.4	)	$	38.0		$	152.0		$	(1,406.3	)
Subtotal	$	159.0			$	(3.5	)	$	155.5		$	622.0		$	(4,461.3	)
Straight-line rent adjustments	2.8				—			2.8			11.2			—
Other Operations	(0.4		)		—			(0.4		)	(1.6		)	—
Total Operations	$	161.4			$	(3.5	)	$	157.9		$	631.6		$	(4,461.3	)

Development
Recently-Opened Properties/Redevelopment	$	(1.3	)		$	7.6		$	6.3		$	25.2		$	(111.1	)
Straight-line rent adjustments	0.1				—			0.1			0.4			—
Other Development	(6.9		)	—	—			(6.9		)	(27.6		)	—
Total Development	$	(8.1	)		$	7.6		$	(0.5	)	$	(2.0	)	$	(111.1	)
											Book Value ⁽⁴⁾
Projects under construction ⁽⁶⁾											$	483.9		$	(177.7	)
Projects under development											$	264.3		$	(186.3	)
Land inventory:
Stapleton											$	50.2		$	—
Commercial Outlots											$	23.4		$	—
Other Tangible Assets
Cash and equivalents											$	217.6
Restricted cash											$	231.0
Accounts receivable, net ⁽⁷⁾											$	257.6
Notes receivable											$	408.5
Net investments and advances to unconsolidated entities											$	42.1
Prepaid expenses and other deferred costs, net											$	85.7
Recourse Debt and Other Liabilities
Revolving credit facility											$	—
Term loan, net											$	(333.4	)
Convertible senior debt, net											$	(112.3	)
Less: convertible debt											$	112.3
Construction payables											$	(123.3	)
Operating accounts payable and accrued expenses ⁽⁸⁾											$	(651.3	)
Share Data (in millions)
Diluted weighted average number of shares for the three months ended March 31, 2017											267.1

Forest City Realty Trust, Inc. and Subsidiaries

Selected Financial Information

Net Asset Value Components – March 31, 2017 (continued)


(1)	Q1 2017 Earnings Before Income Taxes reconciled to NOI for the three months ended March 31, 2017 in the Supplemental Operating Information section of this supplemental package.


(2)	The net stabilized adjustments column represents adjustments assumed to arrive at an estimated annualized stabilized NOI. We include stabilization adjustments to the Q1 2017 NOI as follows:


a)	We have removed Q1 2017 lease termination income from our Cambridge Life Science office portfolio.


b)	Due to the temporary decline in occupancy at 45/75 Sidney Street (Life Science), we have included a stabilization adjustment to the Q1 2017 NOI to arrive at our estimate of stabilized NOI. This temporary decline was due to one of our tenants relocating to 300 Massachusetts Ave (Life Science). This vacant space is currently leased and is completely occupied as of March 31, 2017.


c)	We have removed Q1 2017 lease termination income from our Manhattan Office portfolio.

Due to quarterly fluctuations of NOI as a result of distribution restrictions from our limited-distribution federally assisted housing properties, we have included a stabilization adjustment to the Q1 2017 NOI to arrive at our estimate of stabilized NOI. Our estimate of stabilized NOI is based on the 2016 annual NOI of $15.6 million, which excludes NOI related to 6 properties in this portfolio that were sold in Q1 2017.


e)	Partial period NOI for recently sold properties has been removed in the Operations Segments.


f)	Due to the planned transfer of Boulevard Mall (Regional Malls) to the lender in a deed-in-lieu transaction during 2017, we have removed NOI and nonrecourse debt, net, related to this property.

For recently-opened properties currently in initial lease-up periods included in the Development Segment, NOI is reflected at 5% of the company ownership cost. This assumption does not reflect our anticipated NOI, but rather is used in order to establish a hypothetical basis for an estimated valuation of leased-up properties. The following properties are currently in their initial lease-up periods:



	Cost at 100%		Cost at Company Share		Lease Commitment % as of
Property	Cost at 100%		Cost at Company Share		April 27, 2017
	(in millions)
Office:
1812 Ashland Ave (Life Science)	$	61.2	$	61.2	75%
Apartments:
535 Carlton (Core Market)	$	168.1	$	53.3	21%
Eliot on 4th (Core Market)	$	143.7	$	38.6	9%
NorthxNorthwest (Core Market)	$	115.0	$	28.9	13%
461 Dean Street (Core Market)	$	195.6	$	195.6	39%
The Bixby (Core Market)	$	59.2	$	11.8	77%
Blossom Plaza (Core Market)	$	100.6	$	25.9	91%
The Yards - Arris (Core Market)	$	143.2	$	37.3	93%
	$	986.6	$	452.6

NOI attributable to Kapolei Lofts, an apartment community on land in which we lease, is not included in NOI from lease-up properties. We consolidate the land lessor, who is entitled to a preferred return that currently exceeds anticipated operating cash flow of the project, and therefore, this project is reflected at 0% for company-share purposes. In accordance with the waterfall provisions of the distribution Agreement, we expect to share in the net proceeds upon a sale of the project, which is not currently reflected on the NAV component schedule.


h)	Due to the planned redevelopment of Ballston Quarter (Development Segment; Recently-Opened Properties/Redevelopment), we have included a stabilization adjustment to the Q1 2017 NOI to arrive at $2.6 million, our estimate of annualized stabilized NOI following the completion of our planned redevelopment.

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


(3)	Company ownership annualized stabilized NOI is calculated by taking the Q1 2017 stabilized NOI times a multiple of four.


(4)	Amounts represent the company’s share of each respective balance sheet line item as of March 31, 2017 and may be calculated using the financial information contained in the Appendix of this supplemental package. Due to the planned transfer of Boulevard Mall to the lender, we have removed nonrecourse debt, net, of $91.5 million related to this property.


(5)	Represents the remaining 41 federally assisted housing apartment communities. We recently signed a master purchase and sale agreement to dispose of this portfolio and expect to receive net proceeds of approximately $65 million. As of March 31, 2017, 6 properties have closed, representing $18.1 million in net proceeds.


(6)	We have removed $37.4 million of assets from projects under construction, which represents the costs on the balance sheet associated with the ongoing redevelopment of Ballston Quarter ($20.8 million) and the phased opening of 535 Carlton ($16.6 million). NOI for each of these is stabilized under Recently-Opened Properties/Redevelopment.


(7)	Includes $149.4 million of straight-line rent receivable (net of $9.1 million of allowance for doubtful accounts).


(8)	Includes $61.7 million of straight-line rent payable.

Forest City Realty Trust, Inc. and Subsidiaries

Selected Financial Information

Net Asset Value Components - Stabilized NOI - Q4 2016 vs. Q1 2017

The following represents the quarterly change in stabilized NOI used to estimate NAV, as a result of recent property openings, acquisitions or sales, as well as other portfolio changes. GAAP reconciliations for the beginning period can be found in prior supplemental packages furnished with the SEC and are available on our website at www.forestcity.net.




Net Asset Value Components - Stabilized NOI
				Stabilized Adjustments

	Q4 2016			Property		Property			Portfolio			Q1 2017
(Dollars in millions)	Stabilized NOI			Openings		Sales/Other⁽¹⁾			NOI Changes			Stabilized NOI
Operations
Office Real Estate
Life Science
Cambridge	$	17.5		$	—	$	—		$	2.6		$	20.1
Other Life Science	3.4			—		—			0.2			3.6
New York
Manhattan	14.2			—		—			(0.1		)	14.1
Brooklyn	23.1			—		—			0.3			23.4
Central Business District	3.5			—		—			0.2			3.7
Suburban/Other	3.2			—		—			0.1			3.3
Subtotal Office	$	64.9		$	—	$	—		$	3.3		$	68.2
Apartment Real Estate
Apartments, Core Markets	$	33.5		$	—	$	—		$	0.9		$	34.4
Apartments, Non-Core Markets	10.7			—		—			0.3			11.0
Subtotal Apartment Product Type	$	44.2		$	—	$	—		$	1.2		$	45.4
Federally Assisted Housing ⁽⁵⁾	4.9			—		(1.0		)	—			3.9
Subtotal Apartments	$	49.1		$	—	$	(1.0	)	$	1.2		$	49.3
Retail Real Estate
Regional Malls	$	28.7		$	—	$	(2.0	)	$	(1.0	)	$	25.7
Specialty Retail Centers	11.8			—		(0.2		)	0.7			12.3
Subtotal Retail	$	40.5		$	—	$	(2.2	)	$	(0.3	)	$	38.0
Subtotal	$	154.5		$	—	$	(3.2	)	$	4.2		$	155.5
Straight-line rent adjustments	1.8			—		—			1.0			2.8
Other Operations	(0.1		)	—		—			(0.3		)	(0.4		)
Total Operations	$	156.2		$	—	$	(3.2	)	$	4.9		$	157.9

Development Pipeline
Development
Recently-Opened Properties/Redevelopment	$	6.6		$	1.0	$	—		$	(1.3	)	$	6.3
Straight-line rent adjustments	0.4			—		—			(0.3		)	0.1
Other Development	(6.7		)	—		—			(0.2		)	(6.9		)
Total Development	$	0.3		$	1.0	$	—		$	(1.8	)	$	(0.5	)
Grand Total	$	156.5		$	1.0	$	(3.2	)	$	3.1		$	157.4


(1)	Reduction to Regional Malls represents the removal of NOI at Boulevard Mall due to the planned transfer to the lender in a deed-in-lieu transaction.

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Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Occupancy Data

Office and retail segment occupancy data represents leased occupancy at the end of the quarter. Leased occupancy percentage is calculated by dividing the sum of the total tenant occupied space under the lease and vacant space under the lease by gross leasable area (“GLA”). Occupancy data includes leases with original terms of one year or less.



	Leased Occupancy
	As of March 31,
Office	2017	2016
Comparable	93.5%	96.4%
Total	93.7%	94.9%
Retail
Comparable	93.6%	94.2%
Total	92.9%	94.2%

Apartment segment occupancy data represents economic occupancy, which is calculated by dividing the period-to-date gross potential rent less vacancy by gross potential rent. Apartment occupancy data excludes limited-distribution subsidized senior housing units.



	Economic Occupancy
	Three Months Ended March 31,
Apartments	2017	2016
Comparable	93.6%	94.3%
Total	93.6%	94.3%

The graph below provides comparable leased and economic occupancy data as reported in previous quarters. Prior period amounts may differ from above since the properties qualifying as comparable change from period to period.

Comparable Occupancy Percentage Trend

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Retail Sales Data

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

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

FCE Regional Mall Sales per Square Foot ^{(1) (2)}

Rolling 12-month basis for periods presented


(1)	All sales data is derived from schedules provided by our tenants and is not subject to the same internal control and verification procedures applied to other data supplied in this supplemental package.

(2)

The increase for the rolling 12-months ended March 31, 2017 over the prior periods is primarily due to the exclusion of sales data at Boulevard Mall, which is planned to transfer to the lender in a deed-in-lieu transaction during 2017. With the comparable exclusion of Boulevard Mall sales data, sales per square foot for the rolling 12-months ended March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016 would have been $570, $566, $561 and $567, respectively.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Leasing Summary

Office Buildings

The following table represents those new leases and GLA signed on the same space in which there was a former tenant and existing tenant renewals along with all other new leases signed within the rolling 12-month period.



	Same-Space Leases								Other New Leases
Quarter	Number of Leases Signed	GLA Signed	Contractual Rent Per SF ⁽¹⁾		Expired Rent Per SF ⁽¹⁾		Cash Basis % Change over Prior Rent		Number of Leases Signed	GLA Signed	Contractual Rent Per SF ⁽¹⁾		Total GLA Signed
Q2 2016	20	526,931	$	34.39	$	30.08	14.3	%	4	12,503	$	18.12	539,434
Q3 2016	9	79,348	$	28.02	$	26.52	5.7	%	5	8,227	$	22.71	87,575
Q4 2016	12	88,740	$	20.36	$	21.46	(5.1	)%	3	3,549	$	25.27	92,289
Q1 2017	15	148,260	$	62.17	$	51.85	19.9	%	5	13,128	$	25.04	161,388
Total	56	843,279	$	37.20	$	32.67	13.9	%	17	37,407	$	22.24	880,686

Retail Centers

The following tables represent those new leases and GLA signed and rent per square foot (“SF”) on the same space in which there was a former tenant and existing tenant renewals.

Regional Malls



Quarter	Number of Leases Signed	GLA Signed	Contractual Rent Per SF ⁽¹⁾		Expired Rent Per SF ⁽¹⁾		Cash Basis % Change over Prior Rent
Q2 2016	23	49,196	$	60.15	$	55.57	8.2	%
Q3 2016	26	79,205	$	63.15	$	56.31	12.1	%
Q4 2016	14	53,130	$	153.75	$	137.47	11.8	%
Q1 2017	12	36,475	$	140.81	$	110.97	26.9	%
Total	75	218,006	$	97.54	$	85.08	14.6	%

Specialty Retail Centers



Quarter	Number of Leases Signed	GLA Signed	Contractual Rent Per SF ⁽¹⁾		Expired Rent Per SF ⁽¹⁾		Cash Basis % Change over Prior Rent
Q2 2016	1	1,050	$	40.00	$	33.00	21.2	%
Q3 2016	2	5,131	$	82.06	$	78.17	5.0	%
Q4 2016	—	—	$	—	$	—	0.0	%
Q1 2017	—	—	$	—	$	—	0.0	%
Total	3	6,181	$	74.91	$	70.50	6.3	%


(1)	Office and Retail contractual rent per square foot includes base rent and fixed additional charges for common area maintenance and real estate taxes as of rental commencement. Retail contractual rent per square foot also includes fixed additional marketing/promotional charges. For all expiring leases, contractual rent per square foot includes any applicable escalations.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Apartment Communities

The following tables present leasing information of our apartment communities. Prior period amounts may differ from data as reported in previous quarters since the properties that qualify as comparable change from period to period.

Year-to-Date Comparison



		Monthly Average Apartment Rental Rates ⁽²⁾						Economic Apartment Occupancy
Comparable Apartment	Leasable Units	Three Months Ended March 31,						Three Months Ended March 31,
Communities ⁽¹⁾	at Company % ⁽³⁾	2017		2016		% Change		2017		2016		% Change
Core Markets	8,772	$	2,008	$	1,988	1.0	%	94.4	%	95.2	%	(0.8	)%
Non-Core Markets	7,954	$	994	$	973	2.2	%	91.7	%	92.1	%	(0.4	)%
Total Comparable Apartments	16,726	$	1,526	$	1,505	1.4	%	93.6	%	94.3	%	(0.7	)%

Sequential Comparison



		Monthly Average Apartment Rental Rates ⁽²⁾						Economic Apartment Occupancy
		Three Months Ended						Three Months Ended
Comparable Apartment	Leasable Units	March 31,		December 31,				March 31,		December 31,
Communities ⁽¹⁾	at Company % ⁽³⁾	2017		2016		% Change		2017		2016		% Change
Core Markets	8,772	$	2,008	$	2,016	(0.4	)%	94.4	%	94.4	%	—
Non-Core Markets	7,954	$	994	$	991	0.3	%	91.7	%	92.5	%	(0.8	)%
Total Comparable Apartments	16,726	$	1,526	$	1,528	(0.1	)%	93.6	%	93.8	%	(0.2	)%

(1)

Includes stabilized apartment communities completely opened and operated in the periods presented. These apartment communities include units leased at affordable apartment rates which provide a discount from average market rental rates. For the three months ended March 31, 2017, 15.2% of leasable units in core markets and 4.9% of leasable units in non-core markets were affordable housing units. Excludes limited-distribution federally assisted housing units.


(2)	Represents gross potential rent less concessions.


(3)	Leasable units represent our share of comparable leasable units at the apartment community.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Comparable NOI



	Three Months Ended
	March 31, 2017
Office	(1.4	)%
Apartments	(0.3	)%
Retail	(1.2	)%
Total	(1.0	)%

The tables below provide the percentage change of Comparable NOI as reported in previous quarters. GAAP reconciliations for previous periods can be found in prior supplemental packages furnished to the SEC and are available on our website at www.forestcity.net.



Quarterly Historical Trends
	Three Months Ended
	March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016
Office	(1.4	)%	(0.4	)%	(0.4	)%	6.4	%	12.1	%
Apartments	(0.3	)%	1.1	%	1.8	%	3.0	%	7.8	%
Retail	(1.2	)%	(2.9	)%	1.6	%	2.7	%	8.3	%
Total	(1.0	)%	(0.7	)%	0.8	%	4.3	%	9.7	%



Annual Historical Trends
	Years Ended						11 Months Ended
	December 31, 2016		December 31, 2015		December 31, 2014		December 31, 2013
Office	3.6	%	4.9	%	6.6	%	(6.4	)%
Apartments	3.3	%	4.7	%	4.3	%	4.7	%
Retail	2.6	%	5.1	%	2.6	%	3.6	%
Total	3.2	%	4.9	%	4.8	%	(0.2	)%

The table below provides comparable NOI margins for our Operations segments.



Year-to-Date and Annual Historical Trends - Margins on Comparable NOI
	Three Months Ended		Years Ended
	March 31, 2017		December 31, 2016		December 31, 2015		December 31, 2014
Office Segment
Life Science	69.2	%	60.1	%	58.7	%	58.5	%
New York
Manhattan	74.0	%	73.5	%	72.1	%	73.2	%
Brooklyn	53.2	%	53.0	%	51.4	%	50.5	%
Central Business District	49.3	%	47.5	%	45.1	%	46.0	%
Suburban/Other	65.0	%	68.5	%	66.3	%	66.0	%
Total Office Segment	61.8	%	59.0	%	57.3	%	57.1	%
Apartment Segment
Core Markets	61.4	%	61.6	%	60.8	%	60.7	%
Non-Core Markets	48.9	%	48.9	%	46.3	%	47.0	%
Total Apartment Segment	57.8	%	57.8	%	56.7	%	56.7	%
Retail Segment
Regional Malls	61.1	%	60.2	%	58.5	%	61.1	%
Specialty Retail Centers	60.7	%	58.7	%	48.7	%	47.8	%
Total Retail Segment	61.0	%	59.7	%	55.0	%	55.6	%
Total	60.3	%	58.9	%	56.4	%	56.6	%

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income (Non-GAAP) Detail (in thousands)



	Three Months Ended March 31,
	2017			2016			% Change
Office Segment
Comparable NOI	64,871			65,792			(1.4	)%
Non-Comparable NOI	5,075			4,147
Office Product Type NOI	69,946			69,939
Other NOI⁽¹⁾	3,454			(521		)
Total Office Segment	73,400			69,418
Apartment Segment
Comparable NOI	45,328			45,443			(0.3	)%
Non-Comparable NOI	76			(1,129		)
Apartment Product Type NOI	45,404			44,314
Federally Assisted Housing	4,285			5,548
Other NOI⁽¹⁾	(732		)	(4,201		)
Total Apartment Segment	48,957			45,661
Retail Segment
Comparable NOI	37,770			38,211			(1.2	)%
Non-Comparable NOI	1,593			4,234
Retail Product Type NOI	39,363			42,445
Other NOI⁽¹⁾	(338		)	1,010
Total Retail Segment	39,025			43,455
Operations
Comparable NOI	147,969			149,446			(1.0	)%
Non-Comparable NOI ⁽²⁾	6,744			7,252
Product Type NOI	154,713			156,698
Federally Assisted Housing	4,285			5,548
Other NOI ⁽¹⁾:
Straight-line rent adjustments	2,798			1,848
Other Operations	(414		)	(5,560		)
	2,384			(3,712		)
Total Operations	161,382			158,534
Development Segment
Recently-Opened Properties/Redevelopment	(1,252		)	629
Other Development ⁽³⁾	(6,877		)	(11,303		)
Total Development Segment	(8,129		)	(10,674		)
Other Segment	—			2,502
Grand Total	$	153,253		$	150,362


(1)	Includes straight-line rent adjustments, participation payments as a result of refinancing transactions on our properties and management and service company overhead, net of service fee revenues.


(2)	Non-comparable NOI includes lease termination income of $2,140 for the three months ended March 31, 2017, compared with $334 for the three months ended March 31, 2016.


(3)	Includes straight-line adjustments, non-capitalizable development overhead and other costs on our development projects.

Summary of Corporate General and Administrative and Other NOI (in thousands)



	Three Months Ended March 31,
	2017			2016			Change
Corporate General and Administrative	$	(15,583	)	$	(17,112	)	$	1,529
Other Operations NOI	(414		)	(5,560		)	5,146
Other Development NOI	(6,877		)	(11,303		)	4,426
Total	$	(22,874	)	$	(33,975	)	$	11,101

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income by Product Type

(dollars in thousands)



Three Months Ended March 31, 2017		Three Months Ended March 31, 2016



NOI by Product Type in Operations	$	158,998		NOI by Product Type in Operations	$	162,246
Other NOI ⁽²⁾:				Other NOI ⁽²⁾:
Straight-line rent adjustments	2,798			Straight-line rent adjustments	1,848
Other Operations	(414		)	Other Operations	(5,560		)
	2,384				(3,712		)
Recently-Opened Properties/Redevelopment	(1,252		)	Recently-Opened Properties/Redevelopment	629
Development Segment ⁽³⁾	(6,877		)	Development Segment ⁽³⁾	(11,303		)
Other Segment	—			Other Segment	2,502
Grand Total NOI	$	153,253		Grand Total NOI	$	150,362


(1)	Includes limited-distribution federally assisted housing.


(2)	Includes straight-line rent adjustments, participation payments as a result of refinancing transactions on our properties and management and service company overhead, net of service fee revenues.


(3)	Includes straight-line adjustments, non-capitalizable development overhead and other costs on our development projects.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Net Operating Income by Core Market

(dollars in thousands)



Three Months Ended March 31, 2017		Three Months Ended March 31, 2016



NOI by Market in Operations	$	158,998		NOI by Market in Operations	$	162,246
Other NOI ⁽³⁾:				Other NOI ⁽³⁾:
Straight-line rent adjustments	2,798			Straight-line rent adjustments	1,848
Other Operations	(414		)	Other Operations	(5,560		)
	2,384				(3,712		)
Recently-Opened Properties/Redevelopment	(1,252		)	Recently-Opened Properties/Redevelopment	629
Development Segment ⁽⁴⁾	(6,877		)	Development Segment ⁽⁴⁾	(11,303		)
Other Segment	—			Other Segment	2,502
Grand Total NOI	$	153,253		Grand Total NOI	$	150,362


(1)	Includes Richmond, Virginia.


(2)	Represents Regional Malls located in Non-Core Markets. Regional Malls located in Core Markets are included in their applicable Core Markets.


(3)	Includes straight-line rent adjustments, participation payments as a result of refinancing transactions on our properties and management and service company overhead, net of service fee revenues.


(4)	Includes straight-line adjustments, non-capitalizable development overhead and other costs on our development projects.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

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



	Three Months Ended March 31,
	2017			2016
Earnings (loss) before income taxes (GAAP)	$	31,672		$	(41,533	)
Earnings from unconsolidated entities	(26,979		)	(10,536		)
Earnings (loss) before income taxes and earnings from unconsolidated entities	4,693			(52,069		)
Land sales	(5,760		)	(3,933		)
Cost of land sales	2,001			340
Other land development revenues	(1,105		)	(1,916		)
Other land development expenses	2,564			2,348
Corporate general and administrative expenses	15,583			17,112
Organizational transformation and termination benefits	4,525			8,720
Depreciation and amortization	63,555			63,211
Impairment of real estate	—			12,464
Interest and other income	(10,272		)	(9,654		)
Interest expense	27,975			34,635
Amortization of mortgage procurement costs	1,222			1,665
Loss on extinguishment of debt	2,843			29,084
NOI related to unconsolidated entities ⁽¹⁾	55,100			55,245
NOI related to noncontrolling interest ⁽²⁾	(9,671		)	(8,088		)
NOI related to discontinued operations ⁽³⁾	—			1,198
Net Operating Income (Non-GAAP)	$	153,253		$	150,362

(1) NOI related to unconsolidated entities:
Equity in earnings (GAAP)	$	9,278		$	10,536
Exclude non-NOI activity from unconsolidated entities:
Land and non-rental activity, net	(1,136		)	(941		)
Interest and other income	(1,525		)	(365		)
Write offs of abandoned development projects and demolition costs	351			—
Depreciation and amortization	23,089			21,674
Interest expense and extinguishment of debt	25,043			24,341
NOI related to unconsolidated entities	$	55,100		$	55,245

(2) NOI related to noncontrolling interest:
(Earnings) loss from continuing operations attributable to noncontrolling interests (GAAP)	$	106		$	(2,121	)
Exclude non-NOI activity from noncontrolling interests:
Land and non-rental activity, net	246			349
Interest and other income	524			377
Depreciation and amortization	(6,983		)	(4,519		)
Interest expense and extinguishment of debt	(3,564		)	(1,989		)
Loss on disposition of full or partial interests in rental properties	—			(185		)
NOI related to noncontrolling interest	$	(9,671	)	$	(8,088	)

(3) NOI related to discontinued operations:
Operating loss from discontinued operations, net of tax (GAAP)	$	—		$	(1,126	)
Less loss from discontinued operations attributable to noncontrolling interests	—			776
Exclude non-NOI activity from discontinued operations (net of noncontrolling interest):
Depreciation and amortization	—			56
Interest expense	—			1,738
Income tax benefit	—			(246		)
NOI related to discontinued operations	$	—		$	1,198

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Net Earnings Attributable to Forest City Realty Trust, Inc.

Net earnings attributable to Forest City Realty Trust, Inc. for the three months ended March 31, 2017 was $40,917,000 versus net earnings of $244,035,000 for the three months ended March 31, 2016. The variance to the prior year period is primarily attributable to the following fluctuations, which are pre-tax, include unconsolidated investment activity and are net of noncontrolling interests:

Asset Dispositions - $(352,408,000)


•	$(209,001,000) related to decreased gains on disposition of full or partial interest in rental properties and unconsolidated investments in 2017 compared to 2016;


•	$(136,687,000) related to the net gain on disposition of the development site 625 Fulton Avenue in 2016; and


•	$(6,720,000) related to a combined fluctuation in revenues and operating expenses at properties in which we disposed of our full or partial interest during 2017 and 2016.

Financing Transactions - $35,512,000


•	$24,618,000 related to decreased losses on extinguishment of debt compared with 2016 primarily due to separate, privately negotiated exchange transactions involving a portion of our Senior Notes due 2016, 2018 and 2020 in 2016;

•

$13,863,000 primarily related to decreases in interest expense on nonrecourse mortgage debt due to the payoff of the nonrecourse mortgage debt for New York Times in 2016 and on corporate debt due to separate, privately negotiated exchange transactions involving certain of our Senior Notes due 2016, 2018 and 2020 in 2016. The decreases were offset by interest expense incurred on the Term Loan which we borrowed in full in November 2016;


•	$(6,071,000) related to an increase in interest expense in 2017 compared with 2016 due to decreased capitalized interest on projects under construction and development as we decreased our construction pipeline; and


•	$3,102,000 related to the change in fair market value of certain derivatives not qualifying for hedge accounting between the comparable periods, which was marked to market through interest expense.

Operations - $15,296,000


•	$11,101,000 primarily related to lower corporate general and administrative expenses and decreased costs in our operations and development management and service entities; and


•	$4,195,000 related to lower organizational transformation and termination benefits in 2017 compared with 2016.

Non-Cash Transactions - $13,094,000


•	$12,464,000 related to decreased impairment of real estate in 2017 compared to 2016; and


•	$630,000 related to a decrease in depreciation and amortization expense in 2017 compared with 2016 primarily due to the disposition of our partial interest in Westchester’s Ridge Hill and Shops at Wiregrass in 2016 as well as the full disposition of several properties in 2016 and 2017. This decrease was partially offset by recently opened properties.

Income Taxes


•	$82,771,000 due to decreased income tax expense primarily due to gains on sale of assets owned by our TRS in 2016. The tax expense in 2016 is primarily non-cash as it largely relates to the utilization of the deferred tax asset to offset the taxable gain on the various sales.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

The interest expense and capital expenditure information shown below is for all of our consolidated investments. See the appendix for further information on noncontrolling interest share of these items plus our share of our unconsolidated investments’ interest expense and capital expenditures.

Interest Expense – The following table summarizes interest incurred, capitalized and paid on all forms of indebtedness.



	Three Months Ended March 31,
	2017			2016
	(in thousands)
Amortization and mark-to-market adjustments of derivative instruments	$	(1,030	)	$	2,066
Interest incurred	33,756			43,838
Interest capitalized	(4,751		)	(11,269		)
Net interest expense	$	27,975		$	34,635

Capital Expenditures for our Operating Portfolio – Our diversified real estate portfolio requires capital expenditures, including tenant improvements, to maintain and improve its operating performance. The following table represents our capital expenditures by segment:



	Three Months Ended March 31,
	2017		2016
	(in thousands)
Operating properties:
Office Segment	$	7,087	$	1,984
Apartment Segment	3,920		1,955
Retail Segment	163		771
Total operating properties	11,170		4,710
Corporate Segment	21		—
Tenant improvements:
Office Segment	7,215		7,517
Retail Segment	252		1,270
Total capital expenditures	$	18,658	$	13,497

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Reconciliation of Net Earnings (Loss) to FFO

The table below reconciles net earnings (loss), the most comparable GAAP measure, to FFO, a non-GAAP measure.



	Three Months Ended March 31,
	2017			2016
	(in thousands)
Net earnings attributable to Forest City Realty Trust, Inc. (GAAP)	$	40,917		$	244,035
Depreciation and Amortization—real estate ⁽¹⁾	78,349			78,862
Gain on disposition of full or partial interests in rental properties	(27,004		)	(99,758		)
Impairment of depreciable rental properties	—			12,464
Income tax expense adjustment — current and deferred ⁽²⁾:
Gain on disposition of full or partial interests in rental properties	—			55,036
FFO attributable to Forest City Realty Trust, Inc. (Non-GAAP)	$	92,262		$	290,639
FFO Per Share - Diluted
Numerator (in thousands):
FFO attributable to Forest City Realty Trust, Inc.	$	92,262		$	290,639
If-Converted Method (adjustments for interest):
4.250% Notes due 2018	778			1,472
3.625% Notes due 2020	363			918
FFO for per share data	$	93,403		$	293,029
Denominator:
Weighted average shares outstanding—Basic	258,797,277			257,951,076
Effect of stock options, restricted stock and performance shares	1,320,911			1,484,743
Effect of convertible debt	5,031,753			10,577,203
Effect of convertible 2006 Class A Common Units	1,910,625			1,940,788
Weighted average shares outstanding - Diluted	267,060,566			271,953,810
FFO Per Share - Diluted	$	0.35		$	1.08


(1)	The following table provides detail of depreciation and amortization:



	Three Months Ended March 31,
	2017			2016
	(in thousands)
Full Consolidation	$	63,555		$	63,211
Non-Real Estate	(702		)	(819		)
Real Estate Full Consolidation	62,853			62,392
Real Estate related to noncontrolling interest	(6,696		)	(4,327		)
Real Estate Unconsolidated	22,192			20,762
Real Estate Discontinued Operations	—			35
Real Estate at Company share	$	78,349		$	78,862


(2)	The following table provides detail of income tax expense:



	Three Months Ended March 31,
	2017		2016
	(in thousands)
Income tax expense on FFO
Operating Earnings:
Current taxes	$	51	$	3,629
Deferred taxes	—		24,157
Total income tax expense on FFO	51		27,786
Income tax expense (benefit) on non-FFO
Disposition of full or partial interests in rental properties:
Current taxes	$	—	$	(4,587	)
Deferred taxes	—		59,623
Total income tax expense on non-FFO	—		55,036
Grand Total	$	51	$	82,822

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Reconciliation of FFO to Operating FFO



	Three Months Ended March 31,
	2017			2016			% Change
	(in thousands)
FFO attributable to Forest City Realty Trust, Inc.	$	92,262		$	290,639
Write-offs of abandoned development projects and demolition costs	351			—
Tax credit income	(2,691		)	(3,008		)
Loss on extinguishment of debt	4,466			29,084
Change in fair market value of nondesignated hedges	(1,502		)	1,396
Net gain on disposition of interest in development project	—			(136,687		)
Net gain on disposition of partial interest in other investment - Nets	—			(136,247		)
Straight-line rent adjustments	(2,942		)	(1,861		)
Organizational transformation and termination benefits	4,525			8,720
Nets pre-tax FFO	—			1,400
Income tax expense (benefit) on FFO	51			27,786
Operating FFO attributable to Forest City Realty Trust, Inc.	$	94,520		$	81,222		16.4%
If-Converted Method (adjustments for interest) (in thousands):
4.250% Notes due 2018	778			1,472
3.625% Notes due 2020	363			918
Operating FFO attributable to Forest City Realty Trust, Inc. (If-Converted)	$	95,661		$	83,612
Weighted average shares outstanding - Diluted	267,060,566			271,953,810

Reconciliation of NOI to Operating FFO



	Three Months Ended March 31,
	2017			2016
	(in thousands)
NOI attributable to Forest City Realty Trust, Inc.	$	153,253		$	150,362
Land sales	8,082			4,208
Other land development revenues	1,389			1,773
Cost of land sales	(3,910		)	(308		)
Other land development expenses	(2,371		)	(2,415		)
Corporate general and administrative expenses	(15,583		)	(17,112		)
Interest and other income	11,273			9,642
Interest expense	(47,831		)	(58,725		)
Amortization of mortgage procurement costs	(1,832		)	(2,406		)
Non-real estate depreciation and amortization	(702		)	(819		)
Tax credit income	(2,691		)	(3,008		)
Change in fair market value of nondesignated hedges	(1,502		)	1,396
Straight-line rent adjustments	(2,942		)	(1,861		)
Other	(113		)	495
Operating FFO attributable to Forest City Realty Trust, Inc.	$	94,520		$	81,222

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Reconciliation of Net Earnings (Loss) (GAAP) to EBITDA (non-GAAP)



	Three Months Ended March 31,
	2017			2016
	(in thousands)
Net earnings attributable to Forest City Realty Trust, Inc. (GAAP)	$	40,917		$	244,035
Depreciation and amortization	79,051			79,681
Interest expense⁽¹⁾	47,831			58,725
Amortization of mortgage procurement costs	1,832			2,406
Income tax expense	51			82,822
EBITDA attributable to Forest City Realty Trust, Inc. (Non-GAAP)	$	169,682		$	467,669
Impairment of real estate	—			12,464
Net loss on extinguishment of debt	4,466			29,084
Net gain on disposition of interest in development project	—			(136,687		)
Net gain on disposition of partial interest in other investment - Nets	—			(136,247		)
Net gain on disposition of full or partial interests in rental properties	(27,004		)	(99,758		)
Nets pre-tax EBITDA	—			1,400
Organizational transformation and termination benefits	4,525			8,720
Adjusted EBITDA attributable to Forest City Realty Trust, Inc. (Non-GAAP)	$	151,669		$	146,645
	As of March 31,
	2017			2016
	(in thousands)
Nonrecourse mortgage debt and notes payable, net, at company share	$	5,027,841		$	5,592,428
Revolving credit facility	—			—
Term loan, net	333,368			—
Convertible senior debt, net	112,295			111,838
Total debt	$	5,473,504		$	5,704,266
Less cash and equivalents	(217,643		)	(343,124		)
Net Debt	$	5,255,861		$	5,361,142
Net Debt to Adjusted EBITDA (Annualized)	8.7		x	9.1		x


(1)	The following table provides detail of interest expense:



	Three Months Ended March 31,
	2017			2016
	(in thousands)
Full consolidation	$	27,975		$	34,635
Noncontrolling interest	(3,564		)	(1,989		)
Unconsolidated entities at Company share	23,420			24,341
Discontinued operations at Company share	—			1,738
Company share	$	47,831		$	58,725

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

(THIS PAGE INTENTIONALLY LEFT BLANK)

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Historical Trends

Through the implementation of our strategic plan, we approach our business by:


•	Focus on the Core: Aligning our business initiatives with our core markets and products as we develop, own and operate a high-quality portfolio;


•	Sustainable Capital Structure: Improving our metrics by paying down debt and activating our existing pipeline; and


•	Operational Excellence: Using the strength of the enterprise to maximize efficiency, effectiveness and customer satisfaction through improved business processes.

The tables below illustrate our progress as we continue to implement our strategic plan. The financial and operating data presented is as reported in previous year-end supplemental packages. GAAP reconciliations for previous years can be found in prior supplemental packages furnished to the SEC and are available on our website at www.forestcity.net.

Development ratio is defined as total assets (less accumulated depreciation) divided by total projects under construction and development and land inventory. Total debt includes outstanding borrowings on our revolving credit facility, our term loan, net, convertible senior debt, net, nonrecourse mortgages and notes payable, net. All metrics are reflected at company share.


*	Represents data for the full year ended December 31, 2013, which is consistent with our calendar year-end adopted in 2013. As such, data for the year ended December 31, 2013 includes results for the month ended January 31, 2013, which was previously included in the financial results for the year ended January 31, 2013 in our supplemental package furnished with the SEC on March 27, 2013.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Development Pipeline

Phased Openings and Projects Under Construction

March 31, 2017



								Cost at Completion (b)					Cost Incurred to Date (c)
		Anticipated	Legal							Cost at					Cost at
		Opening	Ownership			Company		Cost		Company			Cost		Company		No. of		Lease %
	Location	Date	(a)			% (a)		at 100%		Share			at 100%		Share		Units	GLA	(d)
								(in millions)
2017 Phased Openings
Apartments
Greenland Joint Venture:
535 Carlton	Brooklyn, NY	Q1-17/Q2-17	30	%	(e)	30	%	$	168.1	$	53.3		$	165.5	$	47.5	298	—	21	%
550 Vanderbilt (condominiums)	Brooklyn, NY	Q1-17/Q3-17	30	%	(e)	30	%	362.7		96.8			284.8		81.9		278	7,000
Pacific Park - Parking (f)	Brooklyn, NY	Q1-17/Q3-17	30	%	(e)	30	%	46.2		4.1			35.9		1.1		—	—
Total Phased Openings								$	577.0	$	154.2		$	486.2	$	130.5	576	7,000

Projects Under Construction
Apartments:
Arizona State Retirement System Joint Venture:
Axis (Broadway and Hill)	Los Angeles, CA	Q2-17/Q3-17	25	%		25	%	$	140.4	$	36.3		$	122.0	$	36.2	391	15,000
Ardan (West Village II)	Dallas, TX	Q1-18/Q2-18	25	%		25	%	122.1		31.3			49.0		14.7		389	4,250
								$	262.5	$	67.6		$	171.0	$	50.9	780	19,250
Greenland Joint Venture:
38 Sixth Ave	Brooklyn, NY	Q2-17/Q3-17	30	%	(e)	30	%	202.7		62.0			166.6		47.8		303	28,000

Mint Town Center (Town Center Wrap)	Denver, CO	Q2-17/Q4-17	95	%		95	%	93.1		88.4			55.1		52.4		399	7,000
VYV (Hudson Exchange)	Jersey City, NJ	Q3-17/Q1-18	50	%	(e)	50	%	214.3		107.1			161.7		81.9		421	9,000
Ballston Quarter Residential	Arlington, VA	Q3-18/Q1-19	51	%	(e)	51	%	178.3		90.9			31.8		17.8		406	53,000
The Yards - The Guild	Washington, D.C.	Q4-18	0	%	(g)	0	%	91.1		0.0			22.9		0.0		191	6,000
Capper 769	Washington, D.C.	Q1-19	25	%	(e)	25	%	72.3		18.1			13.3		3.3		179	—
								$	1,114.3	$	434.1		$	622.4	$	254.1	2,679	122,250
Office:
The Bridge at Cornell Tech	Roosevelt Island, NY	Q2-17	100	%		100	%	164.1		164.1			121.1		121.1		—	235,000	44	%
Retail:
The Yards - District Winery	Washington, D.C.	Q4-17	100	%		100	%	$	10.6	$	10.6		$	8.2	$	8.2	—	16,150	100	%
Ballston Quarter Redevelopment	Arlington, VA	Q3-18	51	%	(e)	51	%	83.1		42.4			33.0		20.8		—	307,000	40	%
								$	93.7	$	53.0		$	41.2	$	29.0	—	323,150
Total Projects Under Construction (h)								$	1,372.1	$	651.2		$	784.7	$	404.2

Estimated Initial Yield on Cost										5.6% - 6.1%		(i)

See footnotes on the following page.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Development Pipeline

Property Openings

March 31, 2017



								Cost at Completion (b)
		Date	Legal					Cost		Cost at		No. of
	Location	Opened	Ownership (a)			Company % (a)		at 100%		Company Share		Units	GLA	Lease % (d)
								(in millions)
2017 Property Openings
Apartments:
461 Dean Street	Brooklyn, NY	Q3-16/Q1-17	100	%		100	%	$	195.6	$	195.6	363	4,000	39	%
The Bixby (j)	Washington, D.C.	Q3-16/Q2-17	25	%	(e)	25	%	59.2		11.8		195	—	77	%
Arizona State Retirement System Joint Venture:
Eliot on 4th (j)	Washington, D.C.	Q1-17/Q2-17	25	%		25	%	$	143.7	$	38.6	365	5,000	9	%
NorthxNorthwest	Philadelphia, PA	Q4-16/Q1-17	25	%		25	%	115.0		28.9		286	—	13	%
								$	258.7	$	67.5	651	5,000
Total Property Openings								$	513.5	$	274.9


(a)	The Company invests in certain real estate projects through joint ventures and, at times, may provide funding at percentages that differ from the Company’s legal ownership.


(b)	Represents estimated project costs to achieve stabilization, at 100% and the Company’s share, respectively. Amounts exclude capitalized interest not allocated to the underlying joint venture.


(c)	Represents total capitalized project costs incurred to date, at 100% and the Company’s share, respectively, including all capitalized interest related to the development project.


(d)	Lease commitments as of April 27, 2017.


(e)	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 its investments in a VIE.


(f)	Expected to include 370 parking spaces.

(g)

Represents an apartment community under construction in which the Company has a 0% legal ownership in. However, the Company is the project developer, on a fee basis. In addition, the Company has issued a project completion guarantee to the first mortgagee and is funding a portion of the construction costs through a mezzanine loan to the owner. As a result, the Company determined it was the primary beneficiary of this variable interest entity and has consolidated the project.


(h)	Of the remaining project costs, the Company has undrawn construction loan commitments of $304.7 million at the company’s share ($618.9 million at 100%).


(i)	Range of estimated initial yield on cost for projects under construction is calculated using estimated company-share initial stabilized NOI divided by the company’s share of project cost per above, net of anticipated subsidies and other cost adjustments.


(j)	As of March 31, 2017, construction on these properties is complete. The properties are open and have received partial tenant certificates of occupancy, 144 of 195 for The Bixby and 112 of 365 for Eliot on 4th, and are awaiting remaining tenant certificates of occupancy.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Development Pipeline

Projects Under Development

March 31, 2017

Below is a summary of our active large scale development projects which are crucial to our long-term growth. While we cannot make any assurances on the timing or delivery of these projects, we believe 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 company ownership costs of $182.7 million ($158.2 million at full consolidation) of Projects Under Development on our balance sheet and company ownership mortgage debt, net of $164.8 million ($10.1 million at full consolidation).


1)	Pacific Park Brooklyn - Brooklyn, NY

Pacific Park Brooklyn, a 22-acre mixed-use project, is located adjacent to the state-of-the-art arena, Barclays Center. At full build-out, Pacific Park Brooklyn is expected to feature more than 6,400 units of housing, including 2,250 affordable units and more than 8 acres of landscaped open space. Included in the square feet of residential entitlements is 250,000 square feet of amenity retail that will reside in the base of the various buildings. The project is also currently entitled for approximately 1 million square feet of office space. 38 Sixth Ave, a 303-unit, 100% affordable rental building, is currently under construction. Current partially opened projects include 535 Carlton, a 100% affordable rental building with 298 apartment units, 550 Vanderbilt, a 278-unit condominium building and parking garages which are expected to include 370 parking spaces. 461 Dean Street, a 50% market-rate and 50% affordable rental building with 363 apartment units, is complete.


2)	The Yards - Washington, D.C.

The Yards is a fully entitled, 53-acre mixed-use project, located in the neighborhood of the Washington Nationals baseball park in the Capitol Riverfront District. At full build-out, the project is expected to include up to 3,000 residential units, 1.8 million square feet of office space and approximately 400,000 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. Current completed projects include 715 apartment units and 178,000 square feet of retail. Currently under construction is the District Winery, a 16,150 square-foot retail building, which is 100% leased to a single tenant and The Guild, a 191-unit apartment building.

3) Waterfront Station - Washington, D.C.

Located in Southwest Washington, D.C., Waterfront Station is adjacent to the Waterfront MetroRail station. At full build-out, Waterfront Station is expected to include 980 apartment units and 40,000 square feet of retail stores and restaurants. Currently completed is a 365-unit apartment building, Eliot on 4th.

4) Pier 70 - San Francisco, CA

Pier 70 is a former shipyard on San Francisco’s eastern waterfront. Our master development area of 28 acres is a mixed-use project, which is expected to include 3.2 million total square feet, consisting of 900,000 to 1.8 million square feet of office space, approximately 350,000 square feet of traditional retail, local production, and cultural/community uses, 1,000 to 2,000 residential units, approximately 2,000 parking spaces and 7 acres of waterfront parks. The provided ranges for commercial and residential uses are the result of a flexible zoning approach taken with a select number of parcels, allowing either commercial or residential uses. Project entitlements are anticipated in Q4-2017 through the Port Commission, Planning Commission and Board of Supervisors.

5) 5M - San Francisco, CA

5M is a fully entitled, mixed-use project on approximately 4 acres in downtown San Francisco. 5M is expected to include approximately 800,000 square feet of commercial uses and 690 residential units. The project will retain three existing historic buildings, including the iconic San Francisco Chronicle building and would create significant new open spaces for the neighborhood. The project is designed to house a dynamic ground-floor mix featuring local retail and arts, cultural and community uses for a total of approximately 1.7 million square feet of development.

6) Hudson Exchange - Jersey City, NJ

Hudson Exchange is a partnership with G&S Investors, the owner of an 18-acre parcel of land, three miles from downtown Manhattan in the waterfront section of Jersey City. At full build-out, the project is expected to include up to 5,400 apartment units in twelve towers and 350,000 square feet of amenity retail and dining space. Currently under construction is VYV, a 421-unit apartment building.

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Operating Information

Development Pipeline

Summary of Development Projects

March 31, 2017

Below is a summary of our active large scale development projects in core markets, as well as other projects in core and non-core markets along with the related developable square feet, by product type. These development opportunities are in a wide range of various stages, including but not limited to, being entitled for its intended development purposes and ready for construction to merely being controlled through a land option. The other product type includes condominiums and hotels. Amounts exclude any currently open or under construction projects within the larger overall development project and are shown at 100% and our estimated ownership share.



Developable Square Feet	Square Feet at 100%					Square Feet at Company Share
	Office	Apartments	Retail	Other	Total	Office	Apartments	Retail	Other	Total	Projects under development balance
Development Projects - Core Markets											(in thousands)
Pacific Park Brooklyn - Brooklyn, NY	1,068,190	3,858,724	—	944,877	5,871,791	320,457	1,157,617	—	283,463	1,761,537	$	21,111
The Yards - Washington, D.C.	1,838,702	2,060,342	263,384	471,897	4,634,325	1,838,702	2,038,290	263,384	471,897	4,612,273	72,137
Waterfront Station - Washington, D.C.	—	634,441	57,949	—	692,390	—	285,498	26,078	—	311,576	10,012
Pier 70 - San Francisco, CA	1,200,936	865,412	363,104	772,250	3,201,702	1,200,936	865,412	363,104	772,250	3,201,702	32,503
5M - San Francisco, CA	801,327	260,203	36,478	552,252	1,650,260	133,020	43,194	6,055	91,674	273,943	30,041
Stapleton - Denver, CO	3,494,444	2,260,722	200,000	270,000	6,225,166	3,145,000	2,034,650	180,000	243,000	5,602,650	—
Hudson Exchange - Jersey City, NJ	—	5,952,232	350,000	—	6,302,232	—	2,976,120	175,000	—	3,151,120	11,290
Other	414,344	935,000	252,373	—	1,601,717	62,152	467,500	233,356	—	763,008	5,640
	8,817,943	16,827,076	1,523,288	3,011,276	30,179,583	6,700,267	9,868,281	1,246,977	1,862,284	19,677,809	$	182,734
Development Projects - Non Core Markets	1,590,895	374,217	99,744	—	2,064,856	1,590,895	374,217	99,744	—	2,064,856	58,407
Projects under development - Operating Properties	—	—	—	—	—	—	—	—	—	—	23,155
Total	10,408,838	17,201,293	1,623,032	3,011,276	32,244,439	8,291,162	10,242,498	1,346,721	1,862,284	21,742,665	$	264,296

Land Inventory

Land inventory represents undeveloped land parcels we currently do not intend to hold for future vertical development. A summary of our land inventory follows:

Stapleton

Stapleton, a 90% owned entity, 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, 3 million square feet of retail and 10 million square feet of office/research and development/industrial space. 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. As of March 31, 2017, we own 484 gross acres, of which 185 acres are saleable. We also have an option to purchase an additional 408 gross acres at Stapleton.

Commercial Outlots

Commercial outlots are primarily undeveloped parcels of land adjacent to our retail assets throughout the United States. These parcels are sold to third party operators that benefit from being in close proximity to the existing retail asset. Typically, these outlots have zoning and entitlements consistent with our retail asset. Also included in commercial outlots is Las Vegas Land, a 7.4-acre parcel of undeveloped land located in downtown Las Vegas, NV adjacent to the City Hall.

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Forest City Realty Trust, 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
	March 31, 2017		December 31, 2016		September 30, 2016		June 30, 2016		March 31, 2016
Class A Common Stock
Closing Price, end of period	$	21.78	$	20.84	$	23.13	$	22.31	$	21.09
High Sales Price	$	23.42	$	23.08	$	24.22	$	23.56	$	22.22
Low Sales Price	$	20.25	$	17.79	$	22.24	$	20.50	$	16.44
Average Sales Price	$	22.11	$	20.29	$	23.35	$	21.77	$	19.64
Total Volume	114,635,533		114,234,232		74,328,684		60,999,364		147,110,090
Average Volume	1,848,960		1,813,242		1,161,386		953,115		2,411,641
Common shares outstanding, end of period	240,443,569		239,937,796		239,926,928		239,891,378		239,592,160
Class B Common Stock
Closing Price, end of period	$	28.31	$	26.93	$	23.11	$	22.19	$	21.10
High Sales Price	$	30.32	$	28.41	$	24.84	$	23.20	$	22.50
Low Sales Price	$	26.25	$	18.00	$	22.29	$	20.60	$	16.59
Average Sales Price	$	28.63	$	22.21	$	23.47	$	21.80	$	19.65
Total Volume	85,539		211,574		73,494		61,451		51,192
Average Volume	1,380		3,358		1,148		960		839
Common shares outstanding, end of period	18,788,163		18,788,169		18,788,169		18,788,287		18,792,687
Common Equity Market Capitalization	$	5,768,753,827	$	5,506,269,060	$	5,983,704,430	$	5,768,888,732	$	5,449,524,350
Quarterly dividends declared and paid per Class A and Class B common share	$	0.09	$	0.06	$	0.06	$	0.06	$	0.06
Special, one-time distribution declared and paid per Class A and Class B common share ⁽¹⁾	$	—	$	—	$	—	$	—	$	0.10


(1)	To satisfy our estimated cumulative positive Earnings and Profit dividend of our predecessor, Forest City Enterprises, Inc., as a result of our conversion to REIT status.

Financial Covenants

Our revolving credit facility and term loan facility contain certain identical restrictive financial covenants. A summary of the key financial covenants as defined in the agreements, all of which we are compliant with at March 31, 2017, follows:



	Requirement Per Agreements	As of March 31, 2017		As of December 31, 2016		As of September 30, 2016		As of June 30, 2016
Credit Facility Financial Covenants
Maximum Total Leverage Ratio	≤65%	48.27	%	49.45	%	50.96	%	49.27	%
Maximum Secured Leverage Ratio	≤55%	44.54	%	45.49	%	51.08	%	49.52	%
Maximum Secured Recourse Leverage Ratio	≤15%	0.00	%	0.00	%	0.00	%	0.00	%
Maximum Unsecured Leverage Ratio	≤60%	18.72	%	19.86	%	0.00	%	0.00	%
Minimum Fixed Charge Coverage Ratio	≥1.50x	2.00	x	1.95	x	1.74	x	1.85	x
Minimum Unencumbered Interest Coverage Ratio	≥1.50x	9.73	x	10.07	x	4.72	x	3.99	x

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Financial Information

Nonrecourse Debt Maturities Table (dollars in thousands)

As of March 31, 2017



	Year Ending December 31, 2017												Year Ending December 31, 2018
	Full Consolidation			Noncontrolling Interest			Company Share of Unconsolidated Entities			Company Share			Full Consolidation			Noncontrolling Interest			Company Share of Unconsolidated Entities			Company Share
Fixed:
Fixed-rate debt	$	179,829		$	11,177		$	127,971		$	296,623		$	208,394		$	7,827		$	252,147		$	452,714
Weighted average rate	5.97		%	6.23		%	5.33		%	5.68		%	4.53		%	3.55		%	4.99		%	4.80		%
Variable:
Variable-rate debt	38,236			4,661			1,919			35,494			155,275			107,002			251,327			299,600
Weighted average rate	3.61		%	3.59		%	3.65		%	3.61		%	3.42		%	3.16		%	4.79		%	4.66		%

Tax-Exempt	—			—			—			—			100,740			1,616			20,000			119,124
Weighted average rate	—			—			—			—			1.85		%	1.77		%	2.51		%	1.96		%
Total variable-rate debt	38,236			4,661			1,919			35,494			256,015			108,618			271,327			418,724
Total Nonrecourse Debt	$	218,065		$	15,838		$	129,890		$	332,117		$	464,409		$	116,445		$	523,474		$	871,438
Weighted Average Rate	5.55		%	5.45		%	5.30		%	5.46		%	3.57		%	3.16		%	4.80		%	4.36		%

	Year Ending December 31, 2019												Year Ending December 31, 2020
	Full Consolidation			Noncontrolling Interest			Company Share of Unconsolidated Entities			Company Share			Full Consolidation			Noncontrolling Interest			Company Share of Unconsolidated Entities			Company Share
Fixed:
Fixed-rate debt	$	108,176		$	4,464		$	35,465		$	139,177		$	160,603		$	23,838		$	154,590		$	291,355
Weighted average rate	4.03		%	4.18		%	5.45		%	4.39		%	5.03		%	4.35		%	4.88		%	5.00		%
Variable:
Variable-rate debt	338,130			125,423			99,042			311,749			49,425			—			1,092			50,517
Weighted average rate	2.78		%	2.60		%	4.31		%	3.33		%	3.34		%	—			2.71		%	3.32		%

Tax-Exempt	8,500			—			—			8,500			—			—			—			—
Weighted average rate	3.89		%	—			—			3.89		%	—			—			—			—
Total variable-rate debt	346,630			125,423			99,042			320,249			49,425			—			1,092			50,517
Total Nonrecourse Debt	$	454,806		$	129,887		$	134,507		$	459,426		$	210,028		$	23,838		$	155,682		$	341,872
Weighted Average Rate	3.09		%	2.65		%	4.61		%	3.66		%	4.63		%	4.35		%	4.86		%	4.76		%

Forest City Realty Trust, Inc. and Subsidiaries

Supplemental Financial Information

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

As of March 31, 2017



	Year Ending December 31, 2021												Thereafter
	Full Consolidation			Noncontrolling Interest			Company Share of Unconsolidated Entities			Company Share			Full Consolidation			Noncontrolling Interest			Company Share of Unconsolidated Entities			Company Share
Fixed:
Fixed-rate debt	$	170,583		$	5,068		$	60,541		$	226,056		$	1,079,737		$	102,703		$	1,299,790		$	2,276,824
Weighted average rate	4.65		%	3.44		%	4.78		%	4.72		%	3.99		%	4.40		%	4.06		%	4.01		%
Variable:
Variable-rate debt	20,741			—			600			21,341			23,398			—			751			24,149
Weighted average rate	4.69		%	—			1.87		%	4.61		%	3.33		%	—			1.87		%	3.28		%

Tax-Exempt	—			—			—			—			505,666			147,114			169,647			528,199
Weighted average rate	—			—			—			—			1.81		%	1.74		%	2.02		%	1.90		%
Total variable-rate debt	20,741			—			600			21,341			529,064			147,114			170,398			552,348
Total Nonrecourse Debt	$	191,324		$	5,068		$	61,141		$	247,397		$	1,608,801		$	249,817		$	1,470,188		$	2,829,172
Weighted Average Rate	4.66		%	3.44		%	4.75		%	4.71		%	3.29		%	2.84		%	3.82		%	3.61		%

	Total
	Full Consolidation			Noncontrolling Interest			Company Share of Unconsolidated Entities			Company Share
Fixed:
Fixed-rate debt	$	1,907,322		$	155,077		$	1,930,504		$	3,682,749
Weighted average rate	4.38		%	4.45		%	4.38		%	4.38		%
Variable:
Variable-rate debt	625,205			237,086			354,731			742,850
Weighted average rate	3.11		%	2.87		%	4.63		%	3.92		%

Tax-Exempt	614,906			148,730			189,647			655,823
Weighted average rate	1.84		%	1.74		%	2.07		%	1.93		%
Total variable-rate debt	1,240,111			385,816			544,378			1,398,673
Total Nonrecourse Debt	$	3,147,433		$	540,893		$	2,474,882		$	5,081,422
Net unamortized mortgage procurement costs	(35,586		)	(8,429		)	(26,424		)	$	(53,581	)
Total Nonrecourse Debt, net	$	3,111,847		$	532,464		$	2,448,458		$	5,027,841
Weighted Average Rate	3.64		%	3.01		%	4.24		%	4.00		%

Forest City Realty Trust, Inc. and Subsidiaries - Appendix

First Quarter 2017

Index



General Information	42
Selected Financial Information
Asset, Liability and Equity Information	43
Revenue and Expense Information	45
Interest Expense Information	46
Capital Expenditures Information	46
Adjusted EBITDA and NOI by Segment - Fully Consolidated Entities, Noncontrolling Interest, Company Share of Unconsolidated Entities and Company Share of Discontinued Operations	47

Forest City Realty Trust, Inc. and Subsidiaries

Appendix - General Information

General Information

This appendix to this supplemental package contains certain financial information of entities accounted for using the full consolidated accounting method (“Fully Consolidated Entities”), financial information on our partners share of entities accounted for using the full consolidated accounting method (“Noncontrolling Interest”), financial information on our share of entities that we do not control and therefore account for using the equity method of accounting (“Company Share of Unconsolidated Entities”) and financial information on our share of entities qualifying for discontinued operations reporting (“Company Share of Discontinued Operations”).

Amounts in columns labeled “Fully Consolidated Entities” represent 100% of the activity related to all entities that are consolidated under GAAP. Amounts in the columns labeled “Company Share of Unconsolidated Entities” were derived on a property-by-property basis by applying to each financial statement line item the ownership percentage interest used to arrive at our share of net income during the period when applying the equity method of accounting. Similar calculations were performed for the amounts in the columns labeled “Noncontrolling Interest”, which represent assets we consolidate but own less than 100%, and amounts in the columns labeled “Company Share of Discontinued Operations”. A financial statement user is able to calculate Total Company Ownership by beginning with the “Fully Consolidated Entities” column, subtracting the column labeled “Noncontrolling Interest” and adding the columns labeled “Company Share of Unconsolidated Entities” and “Company Share of Discontinued Operations”.

We believe disclosing financial information on Fully Consolidated Entities, Noncontrolling Interest, Company Share of Unconsolidated Entities and Company Share of Discontinued Operations is essential to allow our financial statement users the ability to arrive at our Total Company Ownership for all of our ownership interests, irrespective of the accounting method used to account for the entity. We believe it assists investors and analysts in estimating our economic interest in our consolidated and unconsolidated joint ventures when read in conjunction with the Company’s results under GAAP. The calculation of Total Company Ownership financial information has limitations as an analytical tool. Some of these limitations include:

•

The amounts shown in the Noncontrolling Interest, Company Share of Unconsolidated Entities and Company Share of Discontinued Operations columns were derived by applying our ownership percentage interest used to arrive at our share of net income during the period when applying the equity method of accounting and calculating income/loss to minority partners under noncontrolling interest accounting as well as our share of entities qualifying for discontinued operations reporting and may not accurately depict the legal and economic implications of holding a non-controlling interest of an entity; and


•	Other companies in our industry may calculate their total company ownership amounts differently than we do, limiting the usefulness as a comparative measure.

Because of these limitations, the calculation of Total Company Ownership should not be considered in isolation or as a substitute for our financial statements as reported under GAAP. We suggest you compensate for these limitations by relying primarily on our GAAP results and using the Total Company Ownership information only supplementally.

Forest City Realty Trust, Inc. and Subsidiaries

Appendix - Asset, Liability and Equity Information



	March 31, 2017						December 31, 2016
	Noncontrolling Interest			Company Share of Unconsolidated Investments			Noncontrolling Interest			Company Share of Unconsolidated Investments
	(in thousands)
Assets
Real Estate
Completed rental properties
Office	$	110,477		$	217,961		$	110,427		$	137,312
Apartments	376,396			923,276			374,128			970,009
Retail	—			1,974,873			—			1,979,903
Total Operations	486,873			3,116,110			484,555			3,087,224
Recently-Opened Properties/Redevelopment	399,069			75,460			339,735			123,511
Corporate	—			—			—			—
Total completed rental properties	885,942			3,191,570			824,290			3,210,735
Projects under construction
Office	—			—			—			—
Apartments	200,503			251,071			210,836			251,938
Retail	—			20,803			—			17,618
Total projects under construction	200,503			271,874			210,836			269,556
Projects under development
Operating properties	—			20,773			—			24,121
Office	9,233			3,289			9,021			3,287
Apartments	—			36,980			—			26,092
Retail	—			1,320			—			1,320
Total projects under development	9,233			62,362			9,021			54,820
Total projects under construction and development	209,736			334,236			219,857			324,376
Land inventory	5,761			1,396			5,026			4,359
Total Real Estate	1,101,439			3,527,202			1,049,173			3,539,470
Less accumulated depreciation	(97,332		)	(787,410		)	(90,917		)	(790,385		)
Real Estate, net	1,004,107			2,739,792			958,256			2,749,085
Cash and equivalents	25,969			97,186			22,269			69,128
Restricted cash	9,589			98,276			7,429			109,093
Accounts receivable, net	11,242			54,868			9,693			55,751
Notes receivable	(5,670		)	20,111			12,343			17,239
Investments in and advances to unconsolidated entities	(59,732		)	(568,620		)	(58,189		)	(569,864		)
Lease procurement costs, net	3,290			60,480			3,040			60,150
Prepaid expenses and other deferred costs, net	6,546			22,307			7,192			23,458
Intangible assets, net	13,854			12,157			14,008			12,446
Total Assets	$	1,009,195		$	2,536,557		$	976,041		$	2,526,486

Forest City Realty Trust, Inc. and Subsidiaries

Appendix - Asset, Liability and Equity Information



	March 31, 2017						December 31, 2016
	Noncontrolling Interest			Company Share of Unconsolidated Investments			Noncontrolling Interest			Company Share of Unconsolidated Investments
	(in thousands)
Liabilities and Equity
Liabilities
Nonrecourse mortgage debt and notes payable, net
Completed rental properties
Office	$	41,330		$	180,184		$	41,605		$	112,409
Apartments	210,674			624,945			209,660			643,307
Retail	—			1,357,670			—			1,366,375
Total Operations	252,004			2,162,799			251,265			2,122,091
Recently-Opened Properties/Redevelopment	250,762			27,086			207,577			75,482
Total completed rental properties	502,766			2,189,885			458,842			2,197,573
Projects under construction
Office	—			—			—			—
Apartments	29,698			103,909			49,485			98,497
Retail	—			—			—			—
Total projects under construction	29,698			103,909			49,485			98,497
Projects under development
Operating properties	—			—			—			—
Office	—			—			—			—
Apartments	—			154,664			—			154,599
Retail	—			—			—			—
Total projects under development	—			154,664			—			154,599
Total projects under construction and development	29,698			258,573			49,485			253,096
Land inventory	—			—			—			—
Nonrecourse mortgage debt and notes payable, net	532,464			2,448,458			508,327			2,450,669
Revolving credit facility	—			—			—			—
Term loan, net	—			—			—			—
Convertible senior debt, net	—			—			—			—
Construction payables	50,773			44,124			53,749			65,684
Operating accounts payable and accrued expenses	43,593			183,162			27,753			161,767
Accrued derivative liability	323			3,733			654			4,543
Total Accounts payable, accrued expenses and other liabilities	94,689			231,019			82,156			231,994
Cash distributions and losses in excess of investments in unconsolidated entities	(16,843		)	(142,920		)	(16,603		)	(156,177		)
Total Liabilities	610,310			2,536,557			573,880			2,526,486
Equity
Shareholders’ Equity
Shareholders’ equity before accumulated other comprehensive loss	—			—			—			—
Accumulated other comprehensive loss	—			—			—			—
Total Shareholders’ Equity	—			—			—			—
Noncontrolling interest	398,885			—			402,161			—
Total Equity	398,885			—			402,161			—
Total Liabilities and Equity	$	1,009,195		$	2,536,557		$	976,041		$	2,526,486

Forest City Realty Trust, Inc. and Subsidiaries

Appendix - Revenue and Expense Information



	Three Months Ended March 31, 2017						Three Months Ended March 31, 2016
	Noncontrolling Interest			Company Share of Unconsolidated Investments			Noncontrolling Interest			Company Share of Unconsolidated Investments			Company Share of Discontinued Operations
	(in thousands)
Revenues
Rental	$	16,164		$	63,399		$	12,788		$	61,028		$	—
Tenant recoveries	1,746			17,691			1,597			16,012			—
Service and management fees	41			2,532			38			1,603			—
Parking and other	1,008			4,772			831			4,273			—
Arena	—			—			—			—			8,136
Land sales	530			2,852			391			666			—
Subsidized Senior Housing	—			12,016			—			12,889			—
Military Housing	—			—			—			971			—
Total revenues	19,489			103,262			15,645			97,442			8,136
Expenses
Property operating and management	7,276			25,448			5,164			23,224			—
Real estate taxes	2,145			8,777			1,960			7,775			—
Ground rent	52			2,785			134			2,658			—
Arena operating	—			—			—			—			6,938
Cost of land sales	159			2,068			32			—			—
Subsidized Senior Housing operating	—			8,008			—			7,721			—
Military Housing operating	—			—			—			455			—
Corporate general and administrative	—			—			—			—			—
Organizational transformation and termination benefits	—			—			—			—			—
	9,632			47,086			7,290			41,833			6,938
Depreciation and amortization	6,696			22,192			4,327			20,762			35
Write-offs of abandoned development projects and demolition costs	—			351			—			—			—
Impairment of real estate	—			—			—			—			—
Total expenses	16,328			69,629			11,617			62,595			6,973
Operating income	3,161			33,633			4,028			34,847			1,163
Interest and other income	524			1,525			377			365			—
Net gain on disposition of interest in unconsolidated entities	—			17,701			—			—			—
Interest expense	(3,564		)	(23,420		)	(1,989		)	(24,341		)	(1,738		)
Amortization of mortgage procurement costs	(287		)	(897		)	(192		)	(912		)	(21		)
Loss on extinguishment of debt	—			(1,623		)	—			—			—
Earnings (loss) before income taxes and earnings (loss) from unconsolidated entities	(166		)	26,919			2,224			9,959			(596		)
Equity in earnings	60			(9,218		)	82			(9,959		)	(1,400		)
Net gain on disposition of interest in unconsolidated entities	—			(17,701		)	—			—			—
	60			(26,919		)	82			(9,959		)	(1,400		)
Earnings (loss) before income taxes	(106		)	—			2,306			—			(1,996		)
Income tax expense (benefit) of taxable REIT subsidiaries
Current	—			—			—			—			(431		)
Deferred	—			—			—			—			(393		)
	—			—			—			—			(824		)
Earnings (loss) before gain on disposal of real estate	(106		)	—			2,306			—			(1,172		)
Net gain (loss) on disposition of interest in development project, net of tax	—			—			—			—			—
Net gain (loss) on disposition of full or partial interests in rental properties, net of tax	—			—			(185		)	—			64,553
Earnings (loss) from continuing operations	(106		)	—			2,121			—			63,381
Discontinued operations, net of tax
Operating loss from rental properties	—			—			(776		)	—			350
Gain on disposition of disposal group	—			—			—			—			(64,553		)
Equity in earnings (loss)	—			—			—			—			822
	—			—			(776		)	—			(63,381		)
Net earnings (loss)	(106		)	—			1,345			—			—
Noncontrolling interests, gross of tax
(Earnings) loss from continuing operations attributable to noncontrolling interests	106			—			(2,121		)	—			—
Loss from discontinued operations attributable to noncontrolling interests	—			—			776			—			—
	106			—			(1,345		)	—			—
Net earnings (loss) attributable to Forest City Realty Trust, Inc.	$	—		$	—		$	—		$	—		$	—

Forest City Realty Trust, Inc. and Subsidiaries

Appendix

Interest Expense Information



	Three Months Ended March 31, 2017						Three Months Ended March 31, 2016
	Noncontrolling Interest			Company Share of Unconsolidated Entities			Noncontrolling Interest			Company Share of Unconsolidated Entities			Company Share of Discontinued Operations
	(in thousands)
Amortization and mark-to-market adjustments of derivative instruments	$	9		$	—		$	7		$	4		$	—
Interest incurred	4,179			26,280			2,500			26,643			1,738
Interest capitalized	(624		)	(2,860		)	(518		)	(2,306		)	—
Net interest expense	$	3,564		$	23,420		$	1,989		$	24,341		$	1,738

Capital Expenditures Information



	Three Months Ended March 31, 2017				Three Months Ended March 31, 2016
	Noncontrolling Interest		Company Share of Unconsolidated Entities		Noncontrolling Interest		Company Share of Unconsolidated Entities
	(in thousands)
Operating properties:
Office Segment	$	314	$	83	$	25	$	51
Apartment Segment	599		1,464		98		1,192
Retail Segment	—		2,990		—		1,291
Total operating properties	913		4,537		123		2,534
Corporate Segment	—		—		—		—
Tenant improvements:
Office Segment	47		356		175		75
Retail Segment	—		2,873		—		1,136
Total capital expenditures	$	960	$	7,766	$	298	$	3,745

Forest City Realty Trust, Inc. and Subsidiaries

Appendix

Summary of Adjusted EBITDA and NOI by Segment - Three Months Ended March 31, 2017 and 2016 (in thousands)



	Three Months Ended March 31, 2017
Fully Consolidated Entities	Office			Apartments			Retail			Total Operations			Development			Corporate			Total
	(in thousands)
Revenues
Rental	$	84,774		$	64,788		$	6,907		$	156,469		$	5,980		$	—		$	162,449
Tenant recoveries	21,855			516			3,170			25,541			391			—			25,932
Service and management fees	923			3,100			4,331			8,354			1,773			—			10,127
Other revenues (includes Subsidized Senior Housing)	5,987			3,694			342			10,023			7,475			—			17,498
	113,539			72,098			14,750			200,387			15,619			—			216,006
Expenses
Property operating and management	(27,159		)	(26,849		)	(9,209		)	(63,217		)	(15,576		)	—			(78,793		)
Real estate taxes	(12,399		)	(6,505		)	(1,425		)	(20,329		)	(871		)	—			(21,200		)
Ground rent	(3,218		)	(550		)	(120		)	(3,888		)	—			—			(3,888		)
Other expenses (includes Subsidized Senior Housing)	—			—			—			—			(2,001		)	(20,108		)	(22,109		)
	(42,776		)	(33,904		)	(10,754		)	(87,434		)	(18,448		)	(20,108		)	(125,990		)
Less organizational transformation and termination benefits	—			—			—			—			—			4,525			4,525
Write-offs of abandoned development projects and demolition costs	—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			10,272			10,272
Loss on disposition of interest in development project	—			—			—			—			(113		)	—			(113		)
Adjusted EBITDA attributable to Fully Consolidated Entities	$	70,763		$	38,194		$	3,996		$	112,953		$	(2,942	)	$	(5,311	)	$	104,700
Exclude:
Land sales	—			—			—			—			(5,760		)	—			(5,760		)
Other land development revenues	—			—			—			—			(1,105		)	—			(1,105		)
Cost of land sales	—			—			—			—			2,001			—			2,001
Other land development expenses	—			—			—			—			2,564			—			2,564
Corporate general and administrative expenses	—			—			—			—			—			15,583			15,583
Write-offs of abandoned development projects and demolition costs	—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			(10,272		)	(10,272		)
Loss on disposition of interest in development project	—			—			—			—			113			—			113
Subtotal NOI exclusions	$	—		$	—		$	—		$	—		$	(2,187	)	$	5,311		$	3,124
Net Operating Income attributable to Fully Consolidated Entities	$	70,763		$	38,194		$	3,996		$	112,953		$	(5,129	)	$	—		$	107,824
NOI exclusions per above																			(3,124		)
Depreciation and Amortization																			(63,555		)
Interest Expense																			(27,975		)
Amortization of mortgage procurement costs																			(1,222		)
Net loss on extinguishment of debt																			(2,843		)
Net gain on disposition of interest in unconsolidated entities																			—
Organizational transformation and termination benefits																			(4,525		)
Loss on disposition of interest in development project																			113
Earnings (loss) from unconsolidated entities																			26,979
Earnings (loss) before income taxes																			$	31,672
Margin % (based on Adjusted EBITDA)	62.3		%	53.0		%	27.1		%	56.4		%	(18.8		)%	0.0		%	48.5		%

Forest City Realty Trust, Inc. and Subsidiaries

Appendix

Summary of Adjusted EBITDA and NOI by Segment - Three Months Ended March 31, 2017 and 2016 (in thousands) (continued)



	Three Months Ended March 31, 2017
Noncontrolling Interest	Office			Apartments			Retail			Total Operations			Development			Corporate			Total
	(in thousands)
Revenues
Rental	$	3,344		$	9,081		$	—		$	12,425		$	3,739		$	—		$	16,164
Tenant recoveries	1,666			75			—			1,741			5			—			1,746
Service and management fees	1			—			—			1			40			—			41
Other revenues (includes Subsidized Senior Housing)	153			450			—			603			935			—			1,538
	5,164			9,606			—			14,770			4,719			—			19,489
Expenses
Property operating and management	(1,657		)	(2,987		)	—			(4,644		)	(2,632		)	—			(7,276		)
Real estate taxes	(745		)	(947		)	—			(1,692		)	(453		)	—			(2,145		)
Ground rent	(80		)	28			—			(52		)	—			—			(52		)
Other expenses (includes Subsidized Senior Housing)	—			—			—			—			(159		)	—			(159		)
	(2,482		)	(3,906		)	—			(6,388		)	(3,244		)	—			(9,632		)
Less organizational transformation and termination benefits	—			—			—			—			—			—			—
Write-offs of abandoned development projects and demolition costs	—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			524			524
Loss on disposition of interest in development project	—			—			—			—			—			—			—
Adjusted EBITDA attributable to Noncontrolling Interest	$	2,682		$	5,700		$	—		$	8,382		$	1,475		$	524		$	10,381
Exclude:
Land sales	—			—			—			—			(530		)	—			(530		)
Other land development revenues	—			—			—			—			(108		)	—			(108		)
Cost of land sales	—			—			—			—			159			—			159
Other land development expenses	—			—			—			—			293			—			293
Corporate general and administrative expenses	—			—			—			—			—			—			—
Write-offs of abandoned development projects and demolition costs	—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			(524		)	(524		)
Loss on disposition of interest in development project	—			—			—			—			—			—			—
Subtotal NOI exclusions	$	—		$	—		$	—		$	—		$	(186	)	$	(524	)	$	(710	)
Net Operating Income attributable to Noncontrolling Interest	$	2,682		$	5,700		$	—		$	8,382		$	1,289		$	—		$	9,671
NOI exclusions per above																			710
Depreciation and Amortization																			(6,696		)
Interest Expense																			(3,564		)
Amortization of mortgage procurement costs																			(287		)
Net loss on extinguishment of debt																			—
Net gain on disposition of interest in unconsolidated entities																			—
Organizational transformation and termination benefits																			—
Loss on disposition of interest in development project																			—
Earnings (loss) from unconsolidated entities																			60
Earnings (loss) before income taxes																			$	(106	)
Margin % (based on Adjusted EBITDA)	51.9		%	59.3		%	0.0		%	56.8		%	31.3		%	0.0		%	53.3		%

Forest City Realty Trust, Inc. and Subsidiaries

Appendix

Summary of Adjusted EBITDA and NOI by Segment - Three Months Ended March 31, 2017 and 2016 (in thousands) (continued)



	Three Months Ended March 31, 2017
Company Share of Unconsolidated Entities	Office			Apartments			Retail			Total Operations			Development			Corporate			Total
	(in thousands)
Revenues
Rental	$	6,570		$	19,419		$	37,100		$	63,089		$	310		$	—		$	63,399
Tenant recoveries	1,256			104			16,141			17,501			190			—			17,691
Service and management fees	416			1,309			1,158			2,883			(351		)	—			2,532
Other revenues (includes Subsidized Senior Housing)	436			13,023			2,896			16,355			3,285			—			19,640
	8,678			33,855			57,295			99,828			3,434			—			103,262
Expenses
Property operating and management	(1,881		)	(7,374		)	(14,261		)	(23,516		)	(1,932		)	—			(25,448		)
Real estate taxes	(887		)	(1,754		)	(6,070		)	(8,711		)	(66		)	—			(8,777		)
Ground rent	(591		)	(256		)	(1,935		)	(2,782		)	(3		)	—			(2,785		)
Other expenses (includes Subsidized Senior Housing)	—			(8,008		)	—			(8,008		)	(2,068		)	—			(10,076		)
	(3,359		)	(17,392		)	(22,266		)	(43,017		)	(4,069		)	—			(47,086		)
Less organizational transformation and termination benefits	—			—			—			—			—			—			—
Write-offs of abandoned development projects and demolition costs	—			—			—			—			(351		)	—			(351		)
Interest and other income	—			—			—			—			—			1,525			1,525
Loss on disposition of interest in development project	—			—			—			—			—			—			—
Adjusted EBITDA attributable to Unconsolidated Entities	$	5,319		$	16,463		$	35,029		$	56,811		$	(986	)	$	1,525		$	57,350
Exclude:
Land sales	—			—			—			—			(2,852		)	—			(2,852		)
Other land development revenues	—			—			—			—			(392		)	—			(392		)
Cost of land sales	—			—			—			—			2,068			—			2,068
Other land development expenses	—			—			—			—			100			—			100
Corporate general and administrative expenses	—			—			—			—			—			—			—
Write-offs of abandoned development projects and demolition costs	—			—			—			—			351			—			351
Interest and other income	—			—			—			—			—			(1,525		)	(1,525		)
Loss on disposition of interest in development project	—			—			—			—			—			—			—
Subtotal NOI exclusions	$	—		$	—		$	—		$	—		$	(725	)	$	(1,525	)	$	(2,250	)
Net Operating Income attributable to Unconsolidated Entities	$	5,319		$	16,463		$	35,029		$	56,811		$	(1,711	)	$	—		$	55,100
NOI exclusions per above																			2,250
Depreciation and Amortization																			(22,192		)
Interest Expense																			(23,420		)
Amortization of mortgage procurement costs																			(897		)
Net loss on extinguishment of debt																			(1,623		)
Net gain on disposition of interest in unconsolidated entities																			17,701
Organizational transformation and termination benefits																			—
Loss on disposition of interest in development project																			—
Earnings (loss) from unconsolidated entities																			(26,919		)
Earnings (loss) before income taxes																			$	—
Margin % (based on Adjusted EBITDA)	61.3		%	48.6		%	61.1		%	56.9		%	(28.7		)%	0.0		%	55.5		%

Forest City Realty Trust, Inc. and Subsidiaries

Appendix

Summary of Adjusted EBITDA and NOI by Segment - Three Months Ended March 31, 2017 and 2016 (in thousands) (continued)



	Three Months Ended March 31, 2017
Company Share of Discontinued Operations	Office			Apartments			Retail			Total Operations			Development			Corporate			Total
	(in thousands)
Revenues
Rental	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Tenant recoveries	—			—			—			—			—			—			—
Service and management fees	—			—			—			—			—			—			—
Other revenues (includes Subsidized Senior Housing)	—			—			—			—			—			—			—
	—			—			—			—			—			—			—
Expenses
Property operating and management	—			—			—			—			—			—			—
Real estate taxes	—			—			—			—			—			—			—
Ground rent	—			—			—			—			—			—			—
Other expenses (includes Subsidized Senior Housing)	—			—			—			—			—			—			—
	—			—			—			—			—			—			—
Less organizational transformation and termination benefits	—			—			—			—			—			—			—
Write-offs of abandoned development projects and demolition costs	—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			—			—
Loss on disposition of interest in development project	—			—			—			—			—			—			—
Adjusted EBITDA attributable to Discontinued Operations	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Exclude:
Land sales	—			—			—			—			—			—			—
Other land development revenues	—			—			—			—			—			—			—
Cost of land sales	—			—			—			—			—			—			—
Other land development expenses	—			—			—			—			—			—			—
Corporate general and administrative expenses	—			—			—			—			—			—			—
Write-offs of abandoned development projects and demolition costs	—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			—			—
Loss on disposition of interest in development project	—			—			—			—			—			—			—
Subtotal NOI exclusions	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net Operating Income attributable to Discontinued Operations	$	—		$	—		$	—		$	—		$	—		$	—		$	—
NOI exclusions per above																			—
Depreciation and Amortization																			—
Interest Expense																			—
Amortization of mortgage procurement costs																			—
Net loss on extinguishment of debt																			—
Net gain on disposition of interest in unconsolidated entities																			—
Organizational transformation and termination benefits																			—
Loss on disposition of interest in development project																			—
Earnings (loss) from unconsolidated entities																			—
Earnings (loss) before income taxes																			$	—
Margin % (based on Adjusted EBITDA)	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%

Forest City Realty Trust, Inc. and Subsidiaries

Appendix

Summary of Adjusted EBITDA and NOI by Segment - Three Months Ended March 31, 2017 and 2016 (in thousands) (continued)



	Three Months Ended March 31, 2016
Fully Consolidated Entities	Office			Apartments			Retail			Total Operations			Development			Corporate			Other			Total
	(in thousands)
Revenues
Rental	$	84,877		$	64,543		$	11,559		$	160,979		$	2,204		$	—		$	—		$	163,183
Tenant recoveries	24,567			309			6,069			30,945			645			—			—			31,590
Service and management fees	(54		)	2,434			4,497			6,877			1,805			—			—			8,682
Other revenues (includes Subsidized Senior Housing)	6,218			3,882			3,066			13,166			6,124			—			3,518			22,808
	115,608			71,168			25,191			211,967			10,778			—			3,518			226,263
Expenses
Property operating and management	(29,858		)	(28,897		)	(13,611		)	(72,366		)	(17,554		)	—			—			(89,920		)
Real estate taxes	(13,119		)	(7,205		)	(3,250		)	(23,574		)	(892		)	—			—			(24,466		)
Ground rent	(2,921		)	(527		)	(187		)	(3,635		)	(4		)	—			—			(3,639		)
Other expenses (includes Subsidized Senior Housing)	—			—			—			—			(340		)	(25,832		)	(2,730		)	(28,902		)
	(45,898		)	(36,629		)	(17,048		)	(99,575		)	(18,790		)	(25,832		)	(2,730		)	(146,927		)
Less organizational transformation and termination benefits	—			—			—			—			—			8,720			—			8,720
Write-offs of abandoned development projects	—			—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			9,654			—			9,654
Earnings (loss) from unconsolidated entities in Adjusted EBITDA	—			—			—			—			—			—			—			—
Adjusted EBITDA attributable to Fully Consolidated Entities	$	69,710		$	34,539		$	8,143		$	112,392		$	(8,012	)	$	(7,458	)	$	788		$	97,710
Exclude:
Land sales	—			—			—			—			(3,933		)	—			—			(3,933		)
Other land development revenues	—			—			—			—			(1,916		)	—			—			(1,916		)
Cost of land sales	—			—			—			—			340			—			—			340
Other land development expenses	—			—			—			—			2,348			—			—			2,348
Corporate general and administrative expenses	—			—			—			—			—			17,112			—			17,112
Write-offs of abandoned development projects	—			—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			(9,654		)	—			(9,654		)
Earnings (loss) from unconsolidated entities in Adjusted EBITDA	—			—			—			—			—			—			—			—
Subtotal NOI exclusions	$	—		$	—		$	—		$	—		$	(3,161	)	$	7,458		$	—		$	4,297
Net Operating Income attributable to Fully Consolidated Entities	$	69,710		$	34,539		$	8,143		$	112,392		$	(11,173	)	$	—		$	788		$	102,007
NOI exclusions per above																						(4,297		)
Depreciation and Amortization																						(63,211		)
Interest Expense																						(34,635		)
Amortization of mortgage procurement costs																						(1,665		)
Impairment of real estate																						(12,464		)
Net loss on extinguishment of debt																						(29,084		)
Net gain on disposition of interest in unconsolidated entities																						—
Organizational transformation and termination benefits																						(8,720		)
(Earnings) loss from unconsolidated entities in Adjusted EBITDA																						—
Earnings (loss) from unconsolidated entities																						10,536
Earnings (loss) before income taxes																						$	(41,533	)
Margin % (based on Adjusted EBITDA)	60.3		%	48.5		%	32.3		%	53.0		%	(74.3		)%	0.0		%	22.4		%	43.2		%

Forest City Realty Trust, Inc. and Subsidiaries

Appendix

Summary of Adjusted EBITDA and NOI by Segment - Three Months Ended March 31, 2017 and 2016 (in thousands) (continued)



	Three Months Ended March 31, 2016
Noncontrolling Interest	Office			Apartments			Retail			Total Operations			Development			Corporate			Other			Total
	(in thousands)
Revenues
Rental	$	3,168		$	8,913		$	—		$	12,081		$	707		$	—		$	—		$	12,788
Tenant recoveries	1,565			32			—			1,597			—			—			—			1,597
Service and management fees	—			—			—			—			38			—			—			38
Other revenues (includes Subsidized Senior Housing)	129			583			—			712			510			—			—			1,222
	4,862			9,528			—			14,390			1,255			—			—			15,645
Expenses
Property operating and management	(1,486		)	(2,588		)	—			(4,074		)	(1,090		)	—			—			(5,164		)
Real estate taxes	(669		)	(1,035		)	—			(1,704		)	(256		)	—			—			(1,960		)
Ground rent	(81		)	(53		)	—			(134		)	—			—			—			(134		)
Other expenses (includes Subsidized Senior Housing)	—			—			—			—			(32		)	—			—			(32		)
	(2,236		)	(3,676		)	—			(5,912		)	(1,378		)	—			—			(7,290		)
Less organizational transformation and termination benefits	—			—			—			—			—			—			—			—
Write-offs of abandoned development projects	—			—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			377			—			377
Earnings (loss) from unconsolidated entities in Adjusted EBITDA	—			—			—			—			—			—			—			—
Adjusted EBITDA attributable to Noncontrolling Interest	$	2,626		$	5,852		$	—		$	8,478		$	(123	)	$	377		$	—		$	8,732
Exclude:
Land sales	—			—			—			—			(391		)	—			—			(391		)
Other land development revenues	—			—			—			—			(189		)	—			—			(189		)
Cost of land sales	—			—			—			—			32			—			—			32
Other land development expenses	—			—			—			—			281			—			—			281
Corporate general and administrative expenses	—			—			—			—			—			—			—			—
Write-offs of abandoned development projects	—			—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			(377		)	—			(377		)
Earnings (loss) from unconsolidated entities in Adjusted EBITDA	—			—			—			—			—			—			—			—
Subtotal NOI exclusions	$	—		$	—		$	—		$	—		$	(267	)	$	(377	)	$	—		$	(644	)
Net Operating Income attributable to Noncontrolling Interest	$	2,626		$	5,852		$	—		$	8,478		$	(390	)	$	—		$	—		$	8,088
NOI exclusions per above																						644
Depreciation and Amortization																						(4,327		)
Interest Expense																						(1,989		)
Amortization of mortgage procurement costs																						(192		)
Impairment of real estate																						—
Net loss on extinguishment of debt																						—
Net gain on disposition of interest in unconsolidated entities																						—
Organizational transformation and termination benefits																						—
(Earnings) loss from unconsolidated entities in Adjusted EBITDA																						—
Earnings (loss) from unconsolidated entities																						82
Earnings (loss) before income taxes																						$	2,306
Margin % (based on Adjusted EBITDA)	54.0		%	61.4		%	0.0		%	58.9		%	(9.8		)%	0.0		%	0.0		%	55.8		%

Forest City Realty Trust, Inc. and Subsidiaries

Appendix

Summary of Adjusted EBITDA and NOI by Segment - Three Months Ended March 31, 2017 and 2016 (in thousands) (continued)



	Three Months Ended March 31, 2016
Company Share of Unconsolidated Entities	Office			Apartments			Retail			Total Operations			Development			Corporate			Other			Total
	(in thousands)
Revenues
Rental	$	3,934		$	19,421		$	36,885		$	60,240		$	788		$	—		$	—		$	61,028
Tenant recoveries	830			104			14,996			15,930			82			—			—			16,012
Service and management fees	97			927			574			1,598			5			—			—			1,603
Other revenues (includes Subsidized Senior Housing)	(588		)	13,846			3,761			17,019			809			—			971			18,799
	4,273			34,298			56,216			94,787			1,684			—			971			97,442
Expenses
Property operating and management	(1,121		)	(7,730		)	(13,493		)	(22,344		)	(880		)	—			—			(23,224		)
Real estate taxes	(590		)	(1,617		)	(5,347		)	(7,554		)	(221		)	—			—			(7,775		)
Ground rent	(228		)	(256		)	(2,064		)	(2,548		)	(110		)	—			—			(2,658		)
Other expenses (includes Subsidized Senior Housing)	—			(7,721		)	—			(7,721		)	—			—			(455		)	(8,176		)
	(1,939		)	(17,324		)	(20,904		)	(40,167		)	(1,211		)	—			(455		)	(41,833		)
Less organizational transformation and termination benefits	—			—			—			—			—			—			—			—
Write-offs of abandoned development projects	—			—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			365			—			365
Earnings (loss) from unconsolidated entities in Adjusted EBITDA	—			(34		)	—			(34		)	547			—			(18		)	495
Adjusted EBITDA attributable to Unconsolidated Entities	$	2,334		$	16,940		$	35,312		$	54,586		$	1,020		$	365		$	498		$	56,469
Exclude:
Land sales	—			—			—			—			(666		)	—			—			(666		)
Other land development revenues	—			—			—			—			(46		)	—			—			(46		)
Cost of land sales	—			—			—			—			—			—			—			—
Other land development expenses	—			—			—			—			348			—			—			348
Corporate general and administrative expenses	—			—			—			—			—			—			—			—
Write-offs of abandoned development projects	—			—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			(365		)	—			(365		)
Earnings (loss) from unconsolidated entities in Adjusted EBITDA	—			34			—			34			(547		)	—			18			(495		)
Subtotal NOI exclusions	$	—		$	34		$	—		$	34		$	(911	)	$	(365	)	$	18		$	(1,224	)
Net Operating Income attributable to Unconsolidated Entities	$	2,334		$	16,974		$	35,312		$	54,620		$	109		$	—		$	516		$	55,245
NOI exclusions per above																						1,224
Depreciation and Amortization																						(20,762		)
Interest Expense																						(24,341		)
Amortization of mortgage procurement costs																						(912		)
Impairment of real estate																						—
Net loss on extinguishment of debt																						—
Net gain on disposition of interest in unconsolidated entities																						—
Organizational transformation and termination benefits																						—
(Earnings) loss from unconsolidated entities in Adjusted EBITDA																						(495		)
Earnings (loss) from unconsolidated entities																						(9,959		)
Earnings (loss) before income taxes																						$	—
Margin % (based on Adjusted EBITDA)	54.6		%	49.4		%	62.8		%	57.6		%	60.6		%	0.0		%	51.3		%	58.0		%

Forest City Realty Trust, Inc. and Subsidiaries

Appendix

Summary of Adjusted EBITDA and NOI by Segment - Three Months Ended March 31, 2017 and 2016 (in thousands) (continued)



	Three Months Ended March 31, 2016
Company Share of Discontinued Operations	Office			Apartments			Retail			Total Operations			Development			Corporate			Other			Total
	(in thousands)
Revenues
Rental	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Tenant recoveries	—			—			—			—			—			—			—			—
Service and management fees	—			—			—			—			—			—			—			—
Other revenues (includes Subsidized Senior Housing)	—			—			—			—			—			—			8,136			8,136
	—			—			—			—			—			—			8,136			8,136
Expenses
Property operating and management	—			—			—			—			—			—			—			—
Real estate taxes	—			—			—			—			—			—			—			—
Ground rent	—			—			—			—			—			—			—			—
Other expenses (includes Subsidized Senior Housing)	—			—			—			—			—			—			(6,938		)	(6,938		)
	—			—			—			—			—			—			(6,938		)	(6,938		)
Less organizational transformation and termination benefits	—			—			—			—			—			—			—			—
Write-offs of abandoned development projects	—			—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			—			—			—
Earnings (loss) from unconsolidated entities in Adjusted EBITDA	—			—			—			—			—			—			—			—
Adjusted EBITDA attributable to Discontinued Operations	$	—		$	—		$	—		$	—		$	—		$	—		$	1,198		$	1,198
Exclude:
Land sales	—			—			—			—			—			—			—			—
Other land development revenues	—			—			—			—			—			—			—			—
Cost of land sales	—			—			—			—			—			—			—			—
Other land development expenses	—			—			—			—			—			—			—			—
Corporate general and administrative expenses	—			—			—			—			—			—			—			—
Write-offs of abandoned development projects	—			—			—			—			—			—			—			—
Interest and other income	—			—			—			—			—			—			—			—
Earnings (loss) from unconsolidated entities in Adjusted EBITDA	—			—			—			—			—			—			—			—
Subtotal NOI exclusions	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Net Operating Income attributable to Discontinued Operations	$	—		$	—		$	—		$	—		$	—		$	—		$	1,198		$	1,198
NOI exclusions per above																						—
Depreciation and Amortization																						(35		)
Interest Expense																						(1,738		)
Amortization of mortgage procurement costs																						(21		)
Impairment of real estate																						—
Net loss on extinguishment of debt																						—
Net gain on disposition of interest in unconsolidated entities																						—
Organizational transformation and termination benefits																						—
(Earnings) loss from unconsolidated entities in Adjusted EBITDA																						—
Earnings (loss) from unconsolidated entities																						(1,400		)
Earnings (loss) before income taxes																						$	(1,996	)
Margin % (based on Adjusted EBITDA)	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	0.0		%	14.7		%	14.7		%

Forest City Realty Trust, Inc. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - May 4, 2017

Attached files

Forest City Realty Trust, Inc. Reports