Forest City Realty Trust, Inc. and Subsidiaries
Selected Financial Information
Net Asset Value Components – September 30, 2018 (continued)
Q3 2018 Earnings Before Income Taxes is reconciled to NOI for the three months ended September 30, 2018 in the Supplemental Operating Information section of this supplemental package. Total NOI is reconciled below:
(Dollars in millions)
The net stabilized adjustments column represents adjustments assumed to arrive at an estimated annualized stabilized NOI. We include stabilization adjustments to the Q3 2018 NOI as follows:
Due to the redevelopment of 26 Landsdowne Street (Life Science Office - Cambridge), we have included a stabilization adjustment to the Q3 2018 NOI to arrive at our estimate of annualized stabilized NOI prior to the commencement of our current redevelopment.
Additional NOI for the recently acquired ownership interests in three life science properties at University Park at MIT (Life Science Office - Cambridge) and DKLB BKLN (Apartments, Core Markets) has been included.
Partial period NOI for recently sold properties has been removed.
Due to the planned transfer of Charleston Town Center and Shops at Northern Boulevard (Other Retail) to the lenders in deed-in-lieu transactions, we have removed NOI and nonrecourse debt, net, related to these properties.
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
October 25, 2018
The Bridge at Cornell Tech (New York Office)
Apartments, Core Markets:
Mint Town Center
38 Sixth Avenue
Eliot on 4th
Due to the redevelopment of Ballston Quarter (Development Segment; Recently-Opened Properties/Redevelopment), we have included a stabilization adjustment to the Q3 2018 NOI to arrive at $2.6 million, our estimate of annualized stabilized NOI prior to the commencement of our current redevelopment..
Development Other includes a stabilization adjustment to arrive at our estimate of annualized net expensed development overhead.
The net stabilized adjustments are not comparable to any GAAP measure and therefore do not have a reconciliation to the nearest comparable GAAP measure.
Amounts represent the company’s share of each respective balance sheet line item as of September 30, 2018 and may be calculated using the financial information contained in the Appendix of this supplemental package. Adjustments to these amounts include:
Due to the planned transfer of Charleston Town Center and Shops at Northern Boulevard to their lenders in deed in lieu transactions, we have removed nonrecourse debt, net, of $48.7 million and $17.0 million, respectively, related to these properties.
Gross asset valued related to the retail portfolio dispositions:
Represents the gross asset value of the four remaining regional malls, based on the agreed upon pricing under the signed definitive agreement with QIC.
Represents the gross asset value of the remaining asset, based on agreed upon pricing under the signed definitive agreement with Madison.