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SEC Filings

PREM14A
FOREST CITY REALTY TRUST, INC. filed this Form PREM14A on 09/21/2018
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Table of Contents

Final Business Case Projections

The final business case projections, which replaced the prior business case projections, incorporated actual performance for the fiscal quarter ended March 31, 2018 and an updated forecast for the fiscal year ending December 31, 2018, reflecting the information available to our senior management at the time of such update, and a corresponding roll forward for the fiscal years ending December 31, 2019 through December 31, 2022, and contained the same line items as the prior business case projections. The table below presents a summary of the final business case projections.

Final Business Case Projections(1)(2)

 

     Fiscal Year Ending December 31,  
     2018E      2019E      2020E      2021E      2022E  

NOI(3)

   $ 559      $ 619      $ 660      $ 707      $ 754  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

EBITDA(4)

   $ 589      $ 628      $ 656      $ 704      $ 751  

FFO(5)

   $ 509      $ 452      $ 479      $ 528      $ 571  

OFFO(6)

   $ 409      $ 442      $ 475      $ 524      $ 567  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

OFFO Per Share—Diluted

   $ 1.50      $ 1.61      $ 1.72      $ 1.89      $ 2.05  

AFFO(7)

   $ 256      $ 343      $ 371      $ 435      $ 478  

Dividends Per Share

   $ 0.72      $ 0.90      $ 0.99      $ 1.09      $ 1.20  

 

(1)

Dollar amounts in millions, except OFFO per share and dividends per share, which are in dollars.

(2)

The projected financial data provided in this table has not been updated following July 13, 2018 to reflect events subsequent, and should not be treated as guidance with respect to projected results for the fiscal year ending December 31, 2018 or any other period.

(3)

Net Operating Income (“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 activity of our Corporate segment does not involve the operations of our rental property portfolio and therefore is excluded from our NOI.

(4)

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”), a non-GAAP measure, is defined as net earnings (loss) excluding the following items at our ownership: i) depreciation and amortization; ii) interest expense; iii) income tax expense (benefit); iv) impairment of depreciable real estate; and v) gains and losses on the disposition of depreciable real estate, including gains and losses on change in control of interests.

(5)

Funds From Operations (“FFO”), a non-GAAP measure, is defined by the National Association of Real Estate Investment Trusts 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) gains or losses on change in control of interests; iii) non-cash charges for real estate depreciation and amortization; iv) impairment of depreciable real estate (net of tax); and v) cumulative or retrospective effect of change in accounting principle (net of tax).

(6)

Operating Funds from Operations (“OFFO”), a non-GAAP measure, is defined 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) the adjustment to recognize rental revenues and rental expense using the straight-line method; vii) participation payments to ground lessors on refinancing of our properties; viii) other transactional items; and ix) income taxes on FFO.

(7)

Adjusted FFO (“AFFO”), a non-GAAP measure, is defined as OFFO adjusted to exclude: i) operating property capital expenditures, including tenant improvements and leasing commissions; ii) capitalized interest on development project equity; iii) amortization of mortgage procurement costs; and iv) non-cash charges for non-real estate depreciation and amortization.

 

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