Frequently Asked Questions| 1. | When was Forest City Enterprises founded? | | | Forest City was founded in 1920 in Cleveland, Ohio. |
| 2. | When did Forest City make its initial public offering? | | | Forest City stock began trading publicly in 1960. |
| 3. | Is Forest City a real estate investment trust (REIT)? | | | No. Forest City has C-Corp status and is considered a real estate operating company (REOC). |
| 4. | What is a REOC? | | | REOCs – real estate operating companies – are corporations which engage in the development, management or financing of real estate. They typically provide such services as property management, property development, facilities management, real estate financing and related businesses. REOCs are publicly traded real estate companies that have chosen not to be taxed as REITs. The three primary reasons for such a choice are (a) the availability of tax-loss carry-forwards, (b) operation in non-REIT-qualifying lines of business, and (c) the ability to retain earnings. REOCs generally view EBDT (earnings before depreciation, amortization and deferred taxes – see question 5, below) as a more accurate performance measure than net income. |
| 5. | What is EBDT? | | | EBDT – Earnings Before Depreciation, Amortization and Deferred Taxes – is a non-GAAP measure of performance used by Forest City to indicate its ongoing financial health. EBDT is similar to Funds From Operations (FFO), a measure of performance used by publicly traded real estate investment trusts (REITs), but may not be directly comparable to similarly titled measures reported by other companies. While property dispositions, acquisitions or other factors can drive net earnings up or down dramatically in the short term, EBDT gives a more consistent view of the Company’s overall financial performance from quarter to quarter and year to year.
For more information on EBDT and for a reconciliation of EBDT to net earnings, the most comparable GAAP measure to EBDT, please see the Supplemental Packages available in the Financial Reports section of this Web site. |
| 6. | Where are your shares traded? And what is the ticker symbol? | | | The Company’s stock is currently traded on the New York Stock Exchange. The ticker symbols are FCEA and FCEB. |
| 7. | What is the difference between the Company's Class A common and Class B common shares of stock? | | | Class B shares have super-majority voting rights, which means shareholders have 10 votes for every share of Class B stock owned. Class A shareholders have one vote for each share owned. In addition, the holders of Class A common stock elect four directors to the company’s board. Holders of Class B common stock elect 11 directors. |
| 8. | How many employees does Forest City have? | | | As of January 31, 2010, Forest City employs over 3,000 employees in 25 states and the District of Columbia – which includes our corporate headquarters of Cleveland and regional offices in Albuquerque, Boston, Chicago, San Francisco, Denver, Los Angeles, London (England), New York City and Washington D.C. |
| 9. | Can I buy or sell stock directly through Forest City? | | | No. You will need to contact a licensed stockbroker to purchase shares in the company. |
| 10. | Does Forest City pay a dividend? | | | During the year ended January 31, 2009, Forest City Enterprises, Inc. announced that the Company's Board of Directors voted to suspend quarterly cash dividends on its Class A and Class B common stock. The suspension began following the payment of dividends on December 15, 2008. Please click here for the full announcement.
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| 11. | Does Forest City offer a dividend reinvestment program (DRIP)? | | | Yes. Forest City offers its stockholders the opportunity to purchase additional shares of common stock through the Forest City Enterprises, Inc. Dividend Reinvestment and Stock Repurchase Plan at 97% of current market value. A copy of the Plan and prospectus can be obtained here, or by contacting Wells Fargo Shareholder Services at 800-468-9716.
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| 12. | Who is Forest City’s transfer agent and registrar? | | | All transaction requests should be directed to Wells Fargo Shareholder Services, which is responsible for all aspects relating to the servicing of your common stock such as: stock transfers, dividend payments, reinvestment plan transactions, address changes, account record keeping, etc.
Contact:
Wells Fargo Shareholder Services
161 N. Concord Exchange
P O Box 64854
South St. Paul, MN 55075
800-468-9716
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| 14. | How can I obtain SEC documents such as a 10-K or a 10-Q? | | | SEC documents are accessible on the "Investor Relations" section of our Web site under Financial Reports, SEC Filings. |
| 15. | What is your corporate policy of stock buybacks? | | | Forest City announced the Board’s authorization to purchase shares, from time to time, in the open market on October 8, 1998. To date, no shares have been purchased under this plan. |
| 16. | Whom can I contact if I need further information as a Forest City shareholder? | | | Contact Investor Relations:
Jeff Linton Vice President, Corporate Communication
216-416-3558
jefflinton@forestcity.net |
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