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June 7, 2011
Forest City Enterprises reports earnings rise for first quarter 2011, claims Brooklyn office vacancies being addressed, must absorb Nets losses
Atlantic Yards Report
Forest City Enterprises, whose Forest City Ratner arm is developing Atlantic Yards, reported positive earnings results yesterday, though the company's Brooklyn portfolio may not be as rosy as some of the rest of the business.
...The most significant driver of results: $42.6 million from the sale of land and air rights to Rock Ohio Caesars Cleveland LLC for construction of a casino in downtown Cleveland, where FCE is headquartered. (Here's the Plain Dealer coverage.)
...AY update
In both the press release and the conference call, FCE officials said that approximately 55% of the forecasted contractually obligated revenues for the arena are currently under contract.
Three months ago, FCE reported the same percentage. In September 2010, the figure was 51%.
"We are also in the process of initial planning, design, and engineering for work on the first residential multifamily building at Atlantic Yards," [incoming CEO David] LaRue added.
Related coverage...
Cleveland Plain Dealer, Forest City reports Q1 profit, sees $42.6 million boost to pre-tax EBDT from Cleveland casino deal
Monday's earnings call was the last with a member of the Ratner family at the company's helm. At Forest City's annual meeting Friday, longtime CEO Charles Ratner will become chairman of the board. He will be succeeded by David LaRue, the company's chief operating officer.
...Shares of Forest City's stock (NYSE: FCE-A) closed trading Monday at $18.71, down 21 cents or 1.1 percent.
Posted by eric at June 7, 2011 12:39 PM