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March 30, 2010
Forest City Swings To Quarterly Profit
The Wall Street Journal
by John Kell
Forest City Enterprises Inc. swung to a fiscal fourth-quarter profit as the real-estate company benefited from government tax credits and fewer development project write-downs. The company, like its peers, has faced a difficult environment since the residential real-estate bubble popped in 2007, a calamity that struck just as Forest City was getting geared up to begin construction of its $4.3 billion project to remake downtown Brooklyn, N.Y., with its Atlantic Yards residential and commercial project.
Ratings agencies, meanwhile, have expressed concern about the company's debt-protection measures. Still, Standard & Poor's Ratings Services earlier this month said Forest City had sufficient liquidity to meet its funding needs through next year.
The owner of commercial and residential properties reported a profit of $6.2 million, or 4 cents a share, compared with a year-earlier loss of $45.3 million, or 44 cents a share. Total revenue climbed 1.2% to $324.3 million.
Posted by eric at March 30, 2010 11:24 PM