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SEC Filings

10-Q
FOREST CITY REALTY TRUST, INC. filed this Form 10-Q on 10/30/2018
Entire Document
 
Forest City Realty Trust, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Unaudited)

T. Segment Information
The following tables summarize financial data for the Company’s reportable operating segments. All amounts are presented in thousands.
 
September 30, 2018
December 31, 2017
 
 
 
 
 
 
 
 
Identifiable Assets
 
 
 
 
 
 
Office
$
3,691,382

$
3,025,810

 
 
 
 
 
 
 
Apartments
2,297,394

2,246,479

 
 
 
 
 
 
 
Retail
360,005

368,353

 
 
 
 
 
 
 
Total Operations
6,348,781

5,640,642

 
 
 
 
 
 
 
Development
1,706,763

2,020,273

 
 
 
 
 
 
 
Corporate
520,802

402,372

 
 
 
 
 
 
 
 
$
8,576,346

$
8,063,287

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
Three Months Ended September 30,
Nine Months Ended September 30,
 
2018
2017
2018
2017
 
2018
2017
2018
2017
 
Revenues
 
Operating Expenses
Office
$
122,443

$
108,165

$
344,775

$
339,087

 
$
45,017

$
41,104

$
129,614

$
128,618

Apartments
69,424

72,086

215,449

216,498

 
35,059

30,874

103,533

96,968

Retail
4,978

14,009

15,035

43,803

 
5,026

9,532

12,664

30,882

Total Operations
196,845

194,260

575,259

599,388

 
85,102

81,510

245,811

256,468

Development
21,385

39,284

60,229

86,604

 
13,298

29,337

40,404

71,236

Corporate




 
18,025

19,113

64,519

60,102

 
$
218,230

$
233,544

$
635,488

$
685,992

 
$
116,425

$
129,960

$
350,734

$
387,806

 
 
 
 
 
 
 
 
 
 
 
Depreciation and Amortization
 
Capital Expenditures
Office
$
32,901

$
28,471

$
88,694

$
97,382

 
$
22,792

$
12,831

$
41,407

$
40,132

Apartments
20,288

19,442

61,106

57,452

 
7,706

9,264

17,243

19,370

Retail
626

2,889

2,065

8,404

 
975

912

2,012

3,073

Total Operations
53,815

50,802

151,865

163,238

 
31,473

23,007

60,662

62,575

Development
6,147

8,764

16,220

24,299

 
63,768

80,368

180,282

241,990

Corporate
963

628

2,567

1,959

 
162

2,008

922

2,372

 
$
60,925

$
60,194

$
170,652

$
189,496

 
$
95,403

$
105,383

$
241,866

$
306,937

The Company uses Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") to manage its business and report its operating results by segment. Adjusted EBITDA, a non-GAAP measure, is defined as net earnings excluding the following items at the Company's ownership: i) non-cash charges for depreciation and amortization; ii) interest expense; iii) amortization of mortgage procurement costs; iv) income taxes; v) impairment of real estate; vi) gains or losses from extinguishment of debt; vii) gains or losses on full or partial disposition of rental properties, development projects and other investments; viii) gains or losses on change in control of interests; and ix) other transactional items, including organizational transformation and termination benefits.
The Company believes that Adjusted EBITDA is an appropriate measure to assess operating performance by segment as it represents ongoing key operating components of each segment without regard to how the business is financed. The Company’s Chief Executive Officer, the chief operating decision maker, uses Adjusted EBITDA, as presented, to assess performance of the Company’s real estate assets by reportable operating segment because it provides information on the financial performance of the core real estate portfolio operations, development, corporate general and administrative expenses and interest and other income derived from the Company's investments. Adjusted EBITDA measures the profitability of each real estate segment in operations based on the process of collecting rent and paying operating expenses and represents the equivalent of Net Operating Income (“NOI”), a non-GAAP measure, as all property level interest expense is reported in the Corporate segment. NOI by operating segment is discussed in the Net Operating Income section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) of this Form 10-Q. For the development segment, adjusted EBITDA measures the profitability of our land development sales activity and any recently opened unstabilized properties, offset by development expenses that do not qualify for capitalization. Interest expense is monitored and evaluated by the chief operating decision maker on an overall company-wide basis and is not a factor in evaluating individual segment performance.



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