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September 5, 2008
Forest City in the News
RTT News, Forest City Swings To Q2 Loss; Revenues Up
Thursday, commercial and residential properties developer Forest City Enterprises, Inc. (FCE-A: News , FCE-B), reported a loss in its second quarter 2008, compared to a profit last year. Net earnings for the quarter was impacted primarily due to significant gains recognized in the prior year from the sale of company's supported-living portfolio, with no comparable asset sales in 2008. Revenues for the quarter improved 14.8% from the year-ago quarter.
The company's second quarter net loss was $8.3 million or $0.08 loss per share, compared with net earnings of $67.8 million or $0.63 per share, in the prior year quarter.
MarketWatch, Forest City Reports Second-Quarter and Year-to-Date Financial Results
From the official Forest City Enterprises press release, with some interesting info about the Nets at the end (emphasis added):
Charles A. Ratner, president and chief executive officer of Forest City Enterprises, said "We are pleased with our second-quarter results and with the performance of our new property openings and mature portfolio. The progress in the quarter has brought year-to-date results in line with last year, in spite of a large first-quarter development project write off, and demonstrates the solid foundation for the business represented by our core rental property portfolio. In addition, our military family housing business contributed solidly to our results, both in the second quarter and for the first six months."
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Commenting on results for the land business, Ratner said, "Our land development business has not been a significant factor in year-to-date results and continues to reflect the general nationwide softness in that segment of our industry. We see no indications of an overall improvement in the near term. Despite this ongoing softness, our inventory of land in quality markets means we are well-positioned to capitalize when a broader recovery occurs, just as we have during past real estate cycles. In addition, we continue to view current market conditions as a potential opportunity to selectively acquire additional land for future development in good markets and at attractive prices."
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"Given the continued stress in the credit markets, we have placed even greater emphasis on monitoring and managing upcoming maturities, and we're pleased with our progress to date," said Ratner.
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The overall operating loss for the Nets as a stand-alone business is comparable to the prior year. The Company's reported share of the loss is higher because it advanced capital to fund the team's operating losses on behalf of both Forest City and certain non-funding partners. While these advances receive preferential capital treatment, the Company reports losses, including significant non-cash losses resulting from amortization, in excess of its legal ownership of approximately 23 percent.
MarketWatch, REMINDER: Forest City Enterprises Second-Quarter 2008 Earnings Conference Call
Forest City Enterprises, Inc., (NYSE: FCEA and FCEB) has released its second-quarter 2008 financial results and will hold a conference call on Tuesday, September 9, 2008 at 11:00 a.m. ET to discuss these results. Investors are invited to dial into the conference call hosted by Charles A. Ratner, president and chief executive officer.
The conference call is scheduled for 11:00 A.M. ET, Tuesday, September 9, 2008. To participate, dial 888-713-4205 using access code 93455825, approximately five minutes before the call. Tell the operator you wish to join the Forest City 2nd Quarter Earnings Conference Call. (International callers, please dial 617-213-4862)
A live webcast of the call will also be available online at www.forestcity.net .
Posted by lumi at September 5, 2008 4:05 AM