CLEVELAND, Dec. 8 /PRNewswire-FirstCall/ -- Forest City Enterprises, Inc.
(NYSE: FCEA) and (NYSE: FCEB) today 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 will begin following the dividend payment
scheduled for December 15, 2008.
Charles A. Ratner, Forest City president and chief executive officer,
said, "In the current economic and financial market conditions, maintaining
liquidity is our highest priority. The board felt this was an appropriate
action to preserve cash."
Ratner added that the board will reevaluate the decision to suspend
dividends when economic and market conditions improve.
The Company will hold a conference call and live webcast with investors on
Wednesday, December 10, 2008 at 11 a.m. ET, to discuss third-quarter results
as well as the suspension of the dividend and other measures being taken to
address the current economic environment. For more information on the call
and webcast, visit www.forestcity.net.
Forest City Enterprises, Inc. is a $10.9 billion NYSE-listed national real
estate company. The Company is principally engaged in the ownership,
development, management and acquisition of commercial and residential real
estate and land throughout the United States.
Safe Harbor Language
Statements made in this news release that state the Company's or
management's intentions, hopes, beliefs, expectations or predictions of the
future are forward-looking statements. The Company's actual results could
differ materially from those expressed or implied in such forward-looking
statements due to various risks, uncertainties and other factors. Risks and
factors that could cause actual results to differ materially from those in the
forward-looking statements include, but are not limited to, general real
estate development and investment risks including lack of satisfactory
financing, construction and lease-up delays and cost overruns, dependence on
rental income from real property, reliance on major tenants, the effect of
economic and market conditions on a nationwide basis as well as in our primary
markets, vacancies in our properties, downturns in the housing market,
competition, illiquidity of real estate investments, bankruptcy or defaults of
tenants, department store consolidations, international activities, the impact
of terrorist acts, risks associated with an investment in and operation of a
professional sports team, conflicts of interests, our substantial debt
leverage and the ability to obtain and service debt, the impact of
restrictions imposed by our credit facility, the level and volatility of
interest rates, the continued availability of tax-exempt government financing,
effects of uninsured or underinsured losses, environmental liabilities, risks
associated with developing and managing properties in partnership with others,
the ability to maintain effective internal controls, compliance with
governmental regulations, changes in market conditions, litigation risks, and
other risk factors as disclosed from time to time in the Company's SEC
filings, including but not limited to, the Company's annual and quarterly
SOURCE Forest City Enterprises, Inc.
Executive Vice President - Chief Financial
Vice President -
all of Forest City Enterprises, Inc.