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SEC Filings

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

The decrease in interest expense for the comparable portfolio is primarily due to the paydown of nonrecourse mortgage notes for Eleven MetroTech Center, an office building in Brooklyn, New York (Q4-2017), American Cigar Lofts, Consolidated-Carolina Lofts and Lucky Strike Lofts, consolidated apartment communities in Richmond, Virginia (Q2-2018), and Glen Forest Office Park, an office building in Richmond, Virginia (Q3-2018). The increase in interest expense related to the change in consolidation method is due to the change from equity method to full consolidation method of accounting for the three life science office properties at University Park at MIT (Q3-2018) upon the acquisition of our partner’s equity interests in those properties partially offset by the change from full consolidation to equity method accounting at Bayside Village, an apartment community in San Francisco, California (Q1-2018). The decrease in interest expense related to recently disposed properties is primarily due to the deed in lieu transaction at Boulevard Mall, a regional mall in Amherst, New York (Q4-2017), and the sales of Post Office Plaza, an office building in Cleveland, Ohio (Q3-2017), 500 Sterling Place, an apartment community in Brooklyn, New York (Q3-2017), and Brooklyn Commons, a specialty retail center in Brooklyn, New York (Q2-2018).
Amortization of Mortgage Procurement Costs
Amortization of mortgage procurement costs was $1,366,000 and $3,966,000 for the three and nine months ended September 30, 2018, respectively, and $1,338,000 and $4,067,000 for the three and nine months ended September 30, 2017, respectively.
Loss on Extinguishment of Debt
See Note OLoss on Extinguishment of Debt in the Notes to Consolidated Financial Statements in Item 1 of this Form 10‑Q for detailed information.
Net Gain on Disposition of Interest in Unconsolidated Entities
See Note PNet Gain on Disposition of Interest in Unconsolidated Entities in the Notes to Consolidated Financial Statements in Item 1 of this Form 10‑Q for detailed information.
Net Gain on Disposition of Rental Properties, Net of Tax
See Note RNet Gain (Loss) on Disposition of Rental Properties, Net of Tax in the Notes to Consolidated Financial Statements in Item 1 of this Form 10‑Q for detailed information.
Subsequent Event
See Note U - Subsequent Event in the Notes to Consolidated Financial Statements in Item 1 of this Form 10‑Q for detailed information.

Net Earnings Attributable to Forest City Realty Trust, Inc.
Net earnings attributable to Forest City Realty Trust, Inc. for the three months ended September 30, 2018 was $447,173,000 versus $5,454,000 for the three months ended September 30, 2017. The variance to the prior year period is primarily attributable to the following fluctuations, which are pre-tax, include unconsolidated investment activity and are net of noncontrolling interests:
Asset Dispositions and Acquisitions - $374,357,000
$219,666,000 related to the 2018 gains on change in control of interest from the acquisition of our partner’s 50% interest in 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;
$174,144,000 related to increased gains on disposition of rental properties and unconsolidated investments in 2018 compared to 2017;
$(16,782,000) related to a combined fluctuation in revenues and operating expenses at properties in which we disposed of our interests during 2018 and 2017; and
$(2,671,000) related to decreased land sales in 2018 compared to 2017, primarily at our Stapleton project.
Financing Transactions - $7,600,000
$9,659,000 primarily related to decreases in interest expense on nonrecourse mortgage debt due to the property sales in 2017 and 2018 and our ongoing deleveraging strategy, partially offset by increases at properties opened in 2017 and 2018 and the acquisition of our partner’s 50% ownership in three life science office buildings at University Park at MIT;
$(3,192,000) related to an increase in interest expense in 2018 compared with 2017 due to decreased capitalized interest on projects under construction and development as we decreased our construction pipeline; and

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