|FOREST CITY REALTY TRUST, INC. filed this Form 10-Q on 10/30/2018|
2018 Liquidity Transactions
During the three months ended September 30, 2018, we completed the following transactions, which increased liquidity, reduced debt resulting in lower future fixed charges for interest and strengthened our balance sheet.
Subsequent to September 30, 2018, we completed the following liquidity transactions:
We continue to explore various options to strengthen our balance sheet and enhance our liquidity, but can give no assurance we can accomplish any of these other options on terms favorable to us or at all. If we cannot enhance our liquidity, it could adversely impact our growth and result in further curtailment of development activities.
Share Repurchase Program
On March 22, 2018, the Board approved an increase in our share repurchase program to an aggregate total of $400,000,000. The shares may be repurchased, in light of prevailing market and economic conditions, to take advantage of investment opportunities at times when the Board and management believe the market price of the common stock does not accurately reflect the underlying value of the Company; to indicate to investors our confidence in our business; to enhance stockholder value; and to reduce dilution. We had not repurchased any shares under this program through July 30, 2018 and pursuant to the Merger Agreement, we are not permitted to repurchase shares of our Class A common stock prior to the completion of the proposed Merger.
We operate as a REIT. As such, we intend to distribute at least 100% of our taxable income within the REIT to avoid paying federal tax. Our REIT taxable income typically will not include income earned by our TRSs except to the extent the TRSs pay dividends to us.