Print Page      Close Window     

SEC Filings

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

The equity in earnings (loss) reported in the Corporate segment relates to interest expense on our equity method investments, partially offset by interest income, as all interest expense and interest income is reported in the Corporate segment. The increase in equity in earnings (loss) in other primarily relates to reduced interest expense as a result of the recent disposals of the various assets sold under the signed definitive agreements with QIC and Madison International to dispose of 10 regional malls and 11 specialty retail assets, respectively.

Depreciation and Amortization
Depreciation and amortization expense was $60,925,000 and $170,652,000 for the three and nine months ended September 30, 2018, respectively, and $60,194,000 and $189,496,000 for the three and nine months ended September 30, 2017, respectively. The net increase for the three months ended September 30, 2018 is primarily attributable to the acquisition of our partner’s 50% interest in 300 Massachusetts Ave, 350 Massachusetts Ave, and 38 Sidney Street, three life science office properties at University Park at MIT, and 49% of our partner's equity interest in DKLB BKLN, an apartment community in Brooklyn, New York, as well as new property openings in 2017 and 2018. These increases were partially offset by the 2018 change from full consolidation to the equity method of accounting for Bayside Village, an apartment community in San Francisco, California, the 2017 deed-in-lieu transaction at Boulevard Mall in Amherst, New York, accelerated depreciation in 2017 at 26 Landsdowne Street, an office building in Cambridge, Massachusetts, which is undergoing redevelopment, and the disposition of our full or partial interest in rental properties in 2017 and 2018. The net decrease for the nine months ended September 30, 2018 is primarily attributable to the reasons described above with particular emphasis on the Bayside Village deconsolidation as it occurred during the first quarter of 2018 as well as 2017 write-offs of tenant improvements upon tenants vacating space early at MIT 45/75 Sidney Street, an office building in Cambridge, Massachusetts, and New York Times, an office building in Manhattan, New York.
Interest and Other Income
Interest and other income was $13,296,000 and $34,773,000 for the three and nine months ended September 30, 2018, respectively, and $20,361,000 and $40,529,000 for the three and nine months ended September 30, 2017, respectively. The net decrease for the three and nine months ended September 30, 2018 compared with the three and nine months ended September 30, 2017 is primarily related to the receipt of a New York State Empire Zone tax credit related to previously paid real estate taxes at Westchester’s Ridge Hill of$7,159,000 during the three months ended September 30, 2017 partially offset by increased interest income recognition on notes receivable related to QIC (Regional Mall dispositions).
Gain on Change in Control of Interests
See Note NGain on Change in Control of Interests in the Notes to Consolidated Financial Statements in Item 1 of this Form 10‑Q for detailed information.
Interest Expense
The following table presents interest expense for the three months ended September 30, 2018 compared with the three months ended September 30, 2017 and nine months ended September 30, 2018 compared with the nine months ended September 30, 2017. All amounts are presented in thousands.
 
Three Months Ended
Nine Months Ended
Interest expense for the three and nine months ended September 30, 2017
$
31,597

$
88,473

Increase (decrease) due to:
 
 
Comparable operating portfolio
(1,538
)
(4,024
)
Non-comparable operating portfolio
2,404

8,121

Change in consolidation method due to change in control
1,306

339

Recently disposed properties
(1,595
)
(5,625
)
Capitalized interest
(220
)
(11
)
Mark-to-market adjustments on non-designated swaps
(1,140
)
(1,922
)
Corporate recourse debt
56

1,190

Other
12

308

Interest expense for the three and nine months ended September 30, 2018
$
30,882

$
86,849


49