Print Page      Close Window     

SEC Filings

8-K
FOREST CITY REALTY TRUST, INC. filed this Form 8-K on 10/30/2018
Entire Document
 
Forest City Realty Trust, Inc. and Subsidiaries
Earnings Release


AT THE COMPANY  
ON THE WEB
Mike Lonsway
www.forestcity.net
Executive Vice President – Planning
 
216-416-3325
 
 
 
Jeff Linton
 
Senior Vice President – Communication
 
216-416-3558
 

FOR IMMEDIATE RELEASE

Forest City Reports 2018 Third-Quarter and Year-to-Date Results

Q3 Net earnings: $447.2 million ($1.63 per share) vs. $5.5 million ($0.02 per share) Q3 2017
Q3 FFO: $98.8 million ($0.36 per share) vs. $112.6 million ($0.42 per share) Q3 2017
Q3 Operating FFO: $102.1 million ($0.38 per share) vs. $110.1 million ($0.41 per share) Q3 2017
Q3 Comp NOI up 1.7 percent, with office up 2.1 percent and apartments up 1.1 percent
Adjusted EBITDA margins up 490 basis points vs. yearend 2016 benchmark, on a rolling 12-month basis
Q3 Net Debt to Adjusted EBITDA ratio 6.7 times vs. 7.8 times Q3 2017, on a rolling 12-month basis

CLEVELAND, Ohio - October 30, 2018 - Forest City Realty Trust, Inc. (NYSE: FCEA) today announced financial results for the three and nine months ended September 30, 2018.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
2017
 
2018
2017
 
(in thousands, except per share data)
Net earnings attributable to Forest City Realty Trust, Inc. (GAAP)
$
447,173

$
5,454

 
$
715,432

$
103,124

Net earnings attributable to common stockholders per share, diluted
$
1.63

$
0.02

 
$
2.62

$
0.39

Revenues
$
218,230

$
233,544

 
$
635,488

$
685,992

FFO attributable to Forest City Realty Trust, Inc. (Non-GAAP)
$
98,796

$
112,558

 
$
279,776

$
308,301

FFO per share, diluted
$
0.36

$
0.42

 
$
1.03

$
1.15

Operating FFO attributable to Forest City Realty Trust, Inc. (Non-GAAP)
$
102,099

$
110,145

 
$
297,116

$
310,200

Operating FFO per share, diluted
$
0.38

$
0.41

 
$
1.10

$
1.16


Factors Impacting Variances in Net Earnings, FFO and Operating FFO
The primary driver of the positive net earnings variance for the third quarter, compared with the comparable period in 2017, was increased gain on change in control of interest and increased gain on sales (net of tax) totaling $394.3 million, as well as a non-recurring 2017 impairment of real estate of $54.9 million, partially offset by lower depreciation and amortization expense of $6.3 million. For the year to date, the same factors were the primary proportionate drivers of the net earnings variance, with the gains accounting for $556.2 million (net of tax) of the increase.

Third-quarter 2018 FFO was impacted by the factors listed below under Operating FFO, as well as by increased organizational transformation and severance costs of $5.7 million.

Primary positive factors impacting third-quarter 2018 Operating FFO, compared with the comparable period in 2017, included improvement in Other Net Operating Income/Corporate G&A of $7.7 million, most of which is reduced overhead expense, increased NOI from the mature portfolio of $1.9 million, and increased NOI from new property openings and acquisitions of $0.5 million. These positive factors were offset by reduced NOI from properties sold of $10.1 million, a 2017 tax credit of $7.2 million related to Westchester’s Ridge Hill that did not recur, and reduced Operating FFO from other sources of $0.8 million. Bridges depicting factors impacting Operating FFO for the three and nine months ended September 30, 2018, are included in the company’s Supplemental Package.



2