« EMINENT DOMAINIA: Jersey Shore homeowners win | Main | More primary election wrap-up in Ratnerville »
September 17, 2009
Forest City's Performance Softens in 2Q
Morningstar.com
by David Rodziewicz
A Morningstar analyst combs through the Atlantic Yards developer's parent company's 2Q report and concludes:
Although the company has made some headway on reducing debt and pushing back maturities through asset sales and its first-quarter equity issuance, we still think Forest City has a long slog ahead. With debt maturities still around $1.6 billion over the next couple years and interest coverage below 2 times, we think the company still has room to deleverage. With fundamental declines in portfolio performance likely over the next couple years, we think the deleveraging process will be a difficult one. In our opinion, additional equity issuances are likely over the next few years as property sales in a declining real estate environment prove insufficient to reduce Forest City's debt levels.
Posted by lumi at September 17, 2009 5:32 AM