Printer Friendly

FOREST CITY ENTERPRISES, INC., ANNOUNCES FIRST SIX MONTHS RESULTS OF OPERATIONS

 CLEVELAND, Sept. 1 /PRNewswire/ -- Forest City Enterprises, Inc. (AMEX: FCEA FCEB) Vice Chairman of the Board and Chief Executive Officer Albert B. Ratner announced today that operating revenues for the six months ended July 31, 1993, were $242,810,000, a 12 percent increase over revenues of $217,003,000 reported for the six months ended July 31, 1992.
 Earnings before depreciation and deferred taxes increased by 30 percent to $36,568,000 for the six months ended July 31, 1993, as compared to $28,071,000 for the comparable period in 1992.
 The company reported net earnings from operations of $1,272,000 for the six months ended July 31, 1993, versus a net loss of $4,930,000 for the first two fiscal quarters of 1992.
 The gain on disposition of properties was not significant in either 1993 or 1992.
 Forest City has a number of active development projects in various locations. Eleven MetroTech Center is a 210,000-square-foot building that is the newest building in the company's MetroTech project in downtown Brooklyn, N.Y. It is 100-percent leased to the City of New York for its Computer and Data Communications Service Agency and Police Emergency Assistance Communications and Dispatch Center (E-911). The company broke ground in July 1993 and projects to open the building in January 1995. This project is being financed by Credit Lyonnais.
 Atlantic Center, also located in downtown Brooklyn on a 32-acre site, is being developed for commercial, retail and residential use. The company recently signed a deal with Bradlees, Inc., for a 150,000- square-foot store. Bradlees will be the first tenant in a retail shopping center consisting of 450,000 gross leasable square feet. Construction on the Bradlees store will commence in November 1993 and is expected to open in the fall of 1994.
 The company recently signed a 20-year lease with Toys 'R Us at Albee Square Mall adjacent to MetroTech. Toys 'R Us will serve as an anchor tenant in the revitalization of this mall and will occupy 45,000 square feet. This store, which will open in November 1993, will be the first for Toys 'R Us in Brooklyn.
 Mervyn's leased and opened a 79,000-square-foot department store in July 1993 at Courtland Mall in Flint, Mich. This space had been occupied by the Fair department store.
 Forest City has completed a significant milestone in its development of the Park Labrea site in Los Angeles. Final approval was received from the City of Los Angeles City Council in August 1993 for the zoning and related entitlements for all the development at Park Labrea. The company can now proceed with the development of 1,597 residential units on three sites. These will be three- and four-story buildings built over parking and are included in a partnership with the May Co. in which each partner has a 50-percent interest.
 In addition to the apartment zoning, approval was received to develop office buildings and a hotel on the eight-acre Superblock site at Park Labrea that is zoned for 1,080,000 square feet of development. This land was leased from the May Co. Because of the probable long period of time it could take to develop this site as zoned, Forest City decided to sell its partnership interest to the May Co. This transaction occurred during the second quarter and a profit was reported by the company.
 The corporation continues to refinance its existing nonrecourse mortgage debt as well as amortize its corporate recourse debt. The company recently completed the refinancing of the Avenue, the retail portion of the Tower City project located in downtown Cleveland. This loan was extended for three years to June 1996.
 The company has made excellent progress on the amortization of its recourse debt which stood at $155,110,000 at July 1992 and now stands at $118,646,000. This outstanding debt is being amortized at the rate of $22,500,000 annually.
 Ratner commented that the company is benefiting from the decline in short-term interest rates and has been able to extend or refinance loans on terms favorable to the company. Forest City has also completed the major development program that started over 10 years ago and now is adding new properties on a smaller scale to its more than $2 billion real estate portfolio. The land and lumber businesses continue to do well and overall the company looks forward to an excellent year in 1993.
 Forest City Enterprises, Inc., is a major national real estate development and management company that owns more than $2.3 billion of real estate at cost. The company is active in 20 states and the District of Columbia. Its corporate headquarters is located in Cleveland, with regional offices in New York, Boston, Los Angeles, Tucson, Ariz., Washington and Detroit.
 Forest City Enterprises, Inc. and Subsidiaries
 Financial Highlights
 For the Period Ended July 31, 1993 and 1992
 (dollars in thousands, except per share data)
 Three Months Ended
 July 31,
 Actual Increase/(Decrease)
 1993 1992 Amount Percent
 Sales and operating revenues
 Forest City Enterprises, Inc. $23,566 $20,703 $ 2,863 13.8
 Forest City Rental Properties
 Corporation 91,339 87,844 3,495 4.0
 Consolidated sales and
 operating revenues $114,905 $108,547 $ 6,358 5.9
 Earnings before depreciation
 and deferred taxes (A) $ 18,205 $ 13,709 $ 4,496 32.8
 Operating earnings (loss),
 net of tax $ 185 $ (2,343) $ 2,528 ---
 Gain (loss) on disposition of
 properties and other
 provisions, net of tax (6) 81 (87) ---
 Net earnings (loss) from
 operations $ 179 $ (2,262) $ 2,441 ---
 Per common share
 Earnings before depreciation
 and deferred taxes (A) $ 2.02 $ 1.52 $ 0.50 32.9
 Operating earnings (loss), net
 of tax $ 0.02 $(0.26) $ 0.28 ---
 Gain (loss) on disposition of
 properties and other
 provisions, net of tax --- 0.01 (0.01) (100.0)
 Net earnings (loss) from
 operations $ 0.02 $(0.25) $ 0.27 ---
 Weighted average shares
 outstanding 8,991,614 8,991,614 --- ---
 Six Months Ended
 July 31,
 Actual Increase/(Decrease)
 1993 1992 Amount Percent
 Sales and operating revenues
 Forest City Enterprises, Inc. $62,096 $44,727 $17,369 38.8
 Forest City Rental Properties
 Corporation 180,714 172,276 8,438 4.9
 Consolidated sales and
 operating revenues $242,810 $217,003 $25,807 11.9
 Earnings before depreciation
 and deferred taxes (A) $ 36,568 $ 28,071 $ 8,497 30.3
 Operating earnings (loss),
 net of tax $ 1,272 $ (4,930) $ 6,202 ---
 Gain (loss) on disposition of
 properties and other
 provisions, net of tax 230 81 149 184.0
 Net earnings (loss) from
 operations $ 1,502 $ (4,849) $ 6,351 ---
 Per common share
 Earnings before depreciation
 and deferred taxes (A) $ 4.07 $ 3.12 $ 0.95 30.4
 Operating earnings (loss), net
 of tax $ 0.14 $(0.55) $ 0.69 ---
 Gain (loss) on disposition of
 properties and other
 provisions, net of tax 0.03 0.01 0.02 200.0
 Net earnings (loss) from
 operations $ 0.17 $(0.54) $ 0.71 ---
 Weighted average shares
 outstanding 8,991,614 8,991,614 --- ---
 (A) -- Earnings before depreciation and deferred taxes consists of the net earnings (loss) from operations, excluding the gain on disposition of properties and other provisions, before deducting the non- cash charges from Rental Properties for depreciation and amortization and deferred income taxes. Also included in earnings before depreciation and deferred taxes is $1,500,000 and $1,186,000 for the three months ended July 31, 1993 and 1992, respectively, and $2,760,000 and $2,839,000 for the six months ended July 31, 1993 and 1992, respectively, of accrued interest on mortgage notes of a rental property which is not payable until future years.
 -0- 9/1/93
 /CONTACT: Thomas G. Smith, senior vice president and chief financial officer of Forest City Enterprises, Inc., 216-267-1200/
 (FCEA FCEB)


CO: Forest City Enterprises, Inc. ST: Ohio IN: REA CST SU: ERN

AR -- CL012 -- 7997 09/01/93 13:43 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 1, 1993
Words:1328
Previous Article:SEABOARD BANCORP, INC. ANNOUNCES ELECTION OF NEW CHAIRMAN OF BOARD AND NEW DIRECTORS
Next Article:CINTAS CORPORATION ANNOUNCES IMPACT OF NEW TAX LAW
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters