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SEC Filings

10-Q
FOREST CITY REALTY TRUST, INC. filed this Form 10-Q on 10/30/2018
Entire Document
 

Comparable NOI
We use comparable NOI, a non-GAAP measure, as a metric to evaluate the performance of our office and apartment properties. Comparable NOI is an operating statistic defined as NOI from stabilized properties operated in all periods presented. This operating statistic provides a same-store comparison of operating results of all stabilized properties that are open and operating in each period presented. Non-capitalizable development costs and unallocated management and service company overhead, net of service fee revenues, are not directly attributable to an individual operating property and are considered non-comparable NOI. In addition, certain income and expense items at the property level, such as lease termination income, real estate tax assessments or rebates, certain litigation expenses incurred and any related legal settlements and NOI impacts of changes in ownership percentages, are excluded from comparable NOI. Retained properties in lease-up or are otherwise considered non-comparable are disclosed in the Segment Operating Results of the MD&A. Due to the planned/ongoing disposition of substantially all of our regional mall and specialty retail portfolios, we are no longer disclosing comparable NOI for our retail properties. Other properties and activities such as federally assisted housing, straight-line rent adjustments and participation payments as a result of refinancing transactions are not evaluated on a comparable basis and the NOI from these properties and activities is considered non-comparable NOI.
We believe comparable NOI is useful because it measures the performance of the same properties on a period-to-period basis and is used to assess operating performance and resource allocation of the operating properties. While property dispositions, acquisitions or other factors impact net earnings in the short term, we believe comparable NOI presents a consistent view of the overall performance of our operating portfolio from period to period.
The following is a reconciliation of comparable NOI to total NOI.
 
Net Operating Income (in thousands)
 
 
Three Months Ended September 30, 2018
 
Three Months Ended September 30, 2017
Comparable
 
Comparable
Non-Comparable
Total
 
Comparable
Non-Comparable
Total
NOI % Change
Office
$
67,918

$
3,427

$
71,345

 
$
66,515

$
367

$
66,882

2.1
%
Apartments
47,764

741

48,505

 
47,250

(26
)
47,224

1.1
%
Retail

22,794

22,794

 

39,698

39,698



Product Type NOI
$
115,682

$
26,962

$
142,644

 
$
113,765

$
40,039

$
153,804

 
Federally Assisted Housing



 

1,532

1,532

 
Other NOI (1):
 
 
 
 
 
 
 
 
Straight-line rent adjustments

3,985

3,985

 

2,133

2,133

 
Participation payments

(26
)
(26
)
 



 
Other Operations

(1,329
)
(1,329
)
 

(165
)
(165
)
 
 
115,682

29,592

145,274

 
113,765

43,539

157,304



Recently-Opened Properties/Redevelopment

2,646

2,646

 

2,542

2,542

 
Development Segment (2)

(1,803
)
(1,803
)
 

(3,283
)
(3,283
)
 
Grand Total
$
115,682

$
30,435

$
146,117

 
$
113,765

$
42,798

$
156,563

1.7
%
 
 
 
 
 
 
Nine Months Ended September 30, 2018
 
Nine Months Ended September 30, 2017
Comparable
 
Comparable
Non-Comparable
Total
 
Comparable
Non-Comparable
Total
NOI % Change
Office
$
203,390

$
4,668

$
208,058

 
$
200,620

$
8,787

$
209,407

1.4
%
Apartments
143,424

2,198

145,622

 
140,205

(79
)
140,126

2.3
%
Retail

77,436

77,436

 

118,659

118,659



Product Type NOI
$
346,814

$
84,302

$
431,116

 
$
340,825

$
127,367

$
468,192

 
Federally Assisted Housing

124

124

 

9,813

9,813

 
Other NOI (1):
 
 
 
 
 
 
 
 
Straight-line rent adjustments

10,919

10,919

 

8,776

8,776

 
Participation payments

(1,160
)
(1,160
)
 



 
Other Operations

(5,056
)
(5,056
)
 

(3,140
)
(3,140
)
 
 
346,814

89,129

435,943

 
340,825

142,816

483,641



Recently-Opened Properties/Redevelopment

7,392

7,392

 

1,188

1,188

 
Development Segment (2)

(9,378
)
(9,378
)
 

(16,296
)
(16,296
)
 
Grand Total
$
346,814

$
87,143

$
433,957

 
$
340,825

$
127,708

$
468,533

1.8
%
(1)
Includes straight-line rent adjustments, participation payments as a result of refinancing transactions on our properties and management and service company overhead, net of service fee revenue.
(2)
Includes straight-line adjustments, non-capitalizable development overhead and other costs on our development projects.

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