Exhibit 99.1

Forest City Enterprises, Inc.

Supplemental Package

Three and Six Months Ended July 31, 2006 and 2005

Forest City Enterprises, Inc. and Subsidiaries
Three and Six Months Ended July 31, 2006 and 2005
Supplemental Package

NYSE: FCEA, FCEB

Index

Corporate Overview	2-3
Supplemental Operating Information
Occupancy Data	4
Comparable Net Operating Income (NOI)	5
Comparable NOI Detail	6-7
Reconciliation of NOI to Net Earnings	8-9
Lease Expirations Schedules	10-11
Schedules of Significant Tenants	12-13
Development Pipeline	14-16
Supplemental Financial Information
Mortgage Financings	17
Scheduled Maturities Table	18-19
Consolidated Balance Sheet Information	20-21
Consolidated Earnings Information	22-25
Investments in and Advances to Affiliates	26-27
Real Estate and Related Nonrecourse Mortgage Debt	28-29
Results of Operations Summary	30-32
Reconciliation of Net Earnings to EBDT	33-34
Summary of EBDT	35-46

This Supplemental Package, together with other statements and information publicly disseminated by the Company, contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements reflect management’s current views with respect to financial results related to future events and are based on assumptions and expectations which may not be realized and are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Future events and actual results, financial or otherwise, may differ from the results discussed in the forward-looking statements. Risk factors discussed in Item 1A of the Company’s Form 10-K for the year ended January 31, 2006 and other factors that might cause differences, some of which could be material, include, but are not limited to, real estate development and investment risks including lack of satisfactory financing, construction and lease-up delays and cost overruns, the effect of economic and market conditions on a nationwide basis as well as regionally in areas where the Company has a geographic concentration of properties, reliance on major tenants, the impact of terrorist acts, the Company’s substantial leverage and the ability to obtain and service debt, guarantees under the Company’s credit facility, the level and volatility of interest rates, continued availability of tax-exempt government financing, the sustainability of substantial operations at the subsidiary level, illiquidity of real estate investments, dependence on rental income from real property, conflicts of interest, financial stability of tenants within the retail industry which may be impacted by competition and consumer spending, potential liability from syndicated properties, effects of uninsured loss, environmental liabilities, partnership risks, litigation risks, risks associated with an investment in a professional sports franchise, the rate revenue increases versus the rate of expense increases, as well as other risks listed from time to time in the Company’s reports filed with the United States Securities and Exchange Commission. The Company has no obligation to revise or update any forward-looking statements, other than imposed by law, as a result of future events or new information. Readers are cautioned not to place undue reliance on such forward-looking statements.

1

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Corporate Overview

We principally engage in the ownership, development, management and acquisition of commercial and residential real estate and land throughout the United States. We operate through three strategic business units. The Commercial Group, our largest business unit, owns, develops, acquires and operates regional malls, specialty/urban retail centers, office and life science buildings, hotels and mixed-use projects. The Residential Group owns, develops, acquires and operates residential rental property, including upscale and middle-market apartments, adaptive re-use developments and supported-living communities. Additionally, the Residential Group develops for-sale condominium projects and also owns, develops and manages military family housing. New York City operations through our partnership with Forest City Ratner Companies are part of the Commercial Group or Residential Group depending on the nature of the operations. Real Estate Groups are the combined Commercial and Residential Groups. The Land Development Group acquires and sells both land and developed lots to residential, commercial and industrial customers. It also owns and develops land into master-planned communities and mixed-use projects. The Nets, a franchise of the National Basketball Association (“NBA”) in which we account for our investment on the equity method of accounting, is a reportable segment of the Company.

We have approximately $8.0 billion of assets in 25 states and the District of Columbia at July 31, 2006. Our core markets include New York City/Philadelphia metropolitan area, Denver, Boston, Greater Washington D.C./Baltimore metropolitan area, Chicago and California. As a result of an ongoing effort to increase property concentration in the core markets, these markets now account for approximately 74 percent of the cost of our real estate portfolio at July 31, 2006. We have offices in Boston, Chicago, Denver, Los Angeles, New York City, San Francisco, Washington, D.C., and our corporate headquarters are in Cleveland, Ohio.

SUPPLEMENTAL FINANCIAL AND OPERATING INFORMATION

This supplemental package contains certain measures prepared in accordance with the generally accepted accounting principles (“GAAP”) under the full consolidation accounting method, and certain measures prepared under the pro-rata consolidation method, a non-GAAP measure. Along with net earnings, we use an additional measure, Earnings before Depreciation, Amortization and Deferred Taxes (“EBDT”), to report operating results. EBDT is a non-GAAP measure and may not be directly comparable to similarly-titled measures reported by other companies. The non-GAAP financial measures presented under the pro-rata consolidation method, comparable net operating income (“NOI”) and EBDT, provide supplemental information about our operations. Although these measures are not presented in accordance with GAAP, we believe they are necessary to understand our business and operating results, along with net earnings and other GAAP measures. Our investors can use these non-GAAP measures as supplementary information to evaluate our business. Our non-GAAP measures are not intended to be performance measures that should be regarded as alternatives to or more meaningful than, our GAAP measures.

Consolidation Methods

We present certain financial amounts under the pro-rata consolidation method because we believe this information is useful to investors as this method reflects the manner in which we operate our business. In line with industry practice, we have made a large number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. Under the pro-rata consolidation method, we generally present our investments proportionate to our economic share of ownership. Under GAAP, the full consolidation method is used to report partnership assets and liabilities consolidated at 100% if deemed to be under our control or if we are deemed to be the primary beneficiary of the variable interest entity (“VIE”), even if our ownership is not 100%. We provide reconciliations from the full consolidation method to the pro-rata consolidation method throughout our supplemental package. Please refer to our property listing for the detail of our consolidated and non-consolidated properties in our Form 10-K for the year ended January 31, 2006 on pages 15-26.

EBDT

We believe that EBDT, along with net earnings, provides additional information about our core operations. While property dispositions, acquisitions or other factors can affect net earnings in the short-term, we believe EBDT presents a more consistent view of the overall financial performance of our business from period-to-period. EBDT is used by the chief operating decision maker and management to assess performance and resource allocations by strategic business unit and on a consolidated basis. EBDT is similar to Funds From Operations (“FFO”), a measure of performance used by publicly traded Real Estate Investment Trusts (“REIT”), but may not be directly comparable to similarly titled measures reported by other companies. (See pages 32-34 for additional discussion of EBDT as well as a reconciliation of EBDT to net earnings.)

2

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Supplemental Operating Information

The operating information contained in this document includes: occupancy data, comparable NOI, reconciliation of NOI to net earnings, retail and office lease expirations, significant retail and office tenant listings, and our development pipeline. We believe this information will give interested parties a better understanding and more information about the operating performance of our Company. The term “comparable,” which is used throughout this document, is generally defined as including properties that were open and operated in both the three and six months ended July 31, 2006 and 2005.

We believe occupancy rates, retail and office lease expirations, base rent, and significant retail and office tenant listings represent meaningful operating statistics about our Company. This information will give interested parties a better understanding and more information about the operating performance of our Company.

Comparable NOI is useful because it measures the performance of the same properties on a period-to-period basis and, along with EBDT (as discussed beginning on page 31), is used to assess operating performance and resource allocation of our strategic business units. While property dispositions, acquisitions or other factors can impact net earnings in the short term, we believe comparable NOI gives a more consistent view of our overall performance from quarter-to-quarter and year-to-year. A reconciliation of net earnings, the most comparable financial measure calculated in accordance with GAAP, to NOI and reconciliation from NOI to comparable NOI are provided on pages 6-9 of this document. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 35-46.

Corporate Headquarters

Forest City Enterprises, Inc.
Terminal Tower
50 Public Square, Suite 1100
Cleveland, Ohio 44113

Annual Report on Form 10-K

A copy of the Annual Report on Form 10-K for the fiscal year ended January 31, 2006 as filed with the Securities and Exchange Commission can be found on our website or may be obtained without charge upon written request to:

Thomas T. Kmiecik
Assistant Treasurer
tomkmiecik@forestcity.net

Website

www.forestcity.net
The information contained on this website is not incorporated herein by reference and does not constitute a part of this supplemental package.

Investor Relations

Thomas G. Smith
Executive Vice President,
Chief Financial Officer and Secretary

Transfer Agent and Registrar

National City Bank
Stock Transfer Department
P.O. Box 92301
Cleveland, OH 44193-0900
(800) 622-6757
www.shareholder.inquiries@nationalcity.com

Stock Exchange Listing

NYSE: FCEA and FCEB

Dividend Reinvestment and Stock Purchase Plan

The Company offers its stockholders the opportunity to purchase additional shares of common stock through the Forest City Enterprises, Inc. Dividend Reinvestment and Stock Purchase Plan (the “Plan”) at 97% of current market value. A copy of the Plan prospectus and an enrollment card may be obtained by contacting National City Bank at (800) 622-6757.

3

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Occupancy Data — July 31, 2006 and 2005

We analyze our occupancy percentages by each of our major product lines as follows:

				Average						Average
	Occupancy			Occupancy			Occupancy			Occupancy
	As of			Year-to-Date			As of			Year-to-Date
	July 31, 2006			July 31, 2006			July 31, 2005			July 31, 2005
Retail
Comparable		94.3	%		94.5	%		93.7	%		93.1	%
Total		93.9	%		94.0	%		93.2	%		92.7	%
Office
Comparable		92.9	%		92.7	%		91.6	%		92.4	%
Total		93.0	%		92.8	%		91.8	%		92.4	%
Residential
Comparable		95.2	%		94.6	%		92.9	%		92.6	%
Total		93.0	%		90.8	%		92.8	%		91.5	%
Hotels
Comparable					70.2	%					68.9	%
Comparable ADR				$	171.51					$	158.11
Total (1)					70.2	%					72.8	%
Total ADR (1)				$	171.51					$	176.35

Retail and office occupancy as of July 31, 2006 and 2005 is based on square feet leased at the end of the fiscal quarter. Average Occupancy Year-to-Date as of July 31, 2006 and 2005 for retail and office is calculated by dividing the sum of leased square feet at the beginning and end of the period by two. Residential occupancy as of July 31, 2006 and 2005 represents total units occupied divided by total units available. Average residential occupancy year-to-date for 2006 and 2005 is calculated by dividing gross potential rent less vacancy by gross potential rent. Average Daily Rate (“ADR”) is calculated by dividing revenue by the number of rooms sold for the six months ended July 31, 2006 and 2005.

⁽¹⁾ The decrease in Total Hotel Average Occupancy Year-to-Date and Total ADR from July 31, 2005 to July 31, 2006 is primarily the result of the sale of the Hilton Times Square during the six months ended July 31, 2006.

4

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

We use NOI, along with EBDT as discussed on pages 2-3, to assess operating performance. Comparable NOI is defined as NOI from properties opened and operated in both three and six months ended July 31, 2006 and 2005. The following schedules on pages 6-7 present comparable NOI for each of our major product lines, as well as strategic business unit under which these product lines operate. A reconciliation of NOI to the most comparable GAAP measure, net earnings, is presented on page 8-9. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 35-46.

Comparable Net Operating Income (NOI) (% change over same period, prior year)

	Three Months Ended July 31, 2006						Six Months Ended July 31, 2006
	Full			Pro-Rata			Full			Pro-Rata
	Consolidation			Consolidation			Consolidation			Consolidation
Retail		4.9	%		5.0	%		5.4	%		5.8	%
Office		0.5	%		1.5	%		1.9	%		2.0	%
Hotel		25.1	%		19.7	%		34.7	%		23.4	%
Residential		9.2	%		8.2	%		8.6	%		7.4	%
Total		5.3	%		5.4	%		5.9	%		5.5	%

5

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income (dollars in thousands)
	Three Months Ended July 31, 2006												Three Months Ended July 31, 2005												% Change
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			(Non-GAAP)
Commercial Group
Retail
Comparable	$	47,461		$	5,360	$	2,897	$	—	$	44,998		$	45,226		$	5,190	$	2,824	$	—	$	42,860			4.9	%		5.0	%
Total		48,784			4,419		3,174		856		48,395			48,198			4,583		2,975		587		47,177
Office Buildings
Comparable		44,477			5,327		1,090		—		40,240			44,261			5,481		853		—		39,633			0.5	%		1.5	%
Total		44,820			5,529		1,090		—		40,381			44,783			5,992		927		—		39,718
Hotels
Comparable		8,817			1,775		484		—		7,526			7,050			1,232		470		—		6,288			25.1	%		19.7	%
Total		4,971			—		484		5,438		10,893			4,231			—		470		5,839		10,540
Earnings from Commercial Land Sales		918			162		—		—		756			12,017			—		—		—		12,017
Development Fees		—			—		—		—		—			3,353			—		—		—		3,353
Other		(5,871	)		1,097		56		—		(6,912	)		(7,735	)		2,638		61		—		(10,312	)
Total Commercial Group
Comparable		100,755			12,462		4,471		—		92,764			96,537			11,903		4,147		—		88,781			4.4	%		4.5	%
Total		93,622			11,207		4,804		6,294		93,513			104,847			13,213		4,433		6,426		102,493
Residential Group
Apartments
Comparable		25,961			630		6,531		—		31,862			23,782			549		6,217		—		29,450			9.2	%		8.2	%
Total		26,665			781		7,896		55		33,835			23,257			1,322		8,133		2,258		32,326
Total Real Estate Groups
Comparable		126,716			13,092		11,002		—		124,626			120,319			12,452		10,364		—		118,231			5.3	%		5.4	%
Total		120,287			11,988		12,700		6,349		127,348			128,104			14,535		12,566		8,684		134,819
Land Development Group		19,792			1,434		105		—		18,463			21,047			1,171		134		—		20,010
The Nets		(4,041	)		—		1,296		—		(2,745	)		(4,620	)		—		807		—		(3,813	)
Corporate Activities		(10,695	)		—		—		—		(10,695	)		(7,393	)		—		—		—		(7,393	)
Grand Total	$	125,343		$	13,422	$	14,101	$	6,349	$	132,371		$	137,138		$	15,706	$	13,507	$	8,684	$	143,623

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Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

	Net Operating Income (dollars in thousands)
	Six Months Ended July 31, 2006												Six Months Ended July 31, 2005												% Change
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			(Non-GAAP)
Commercial Group
Retail
Comparable	$	93,784		$	10,642	$	5,795	$	—	$	88,937		$	88,937		$	10,595	$	5,736	$	—	$	84,078			5.4	%		5.8	%
Total		98,026			8,675		6,141		1,348		96,840			92,288			8,517		5,978		1,308		91,057
Office Buildings
Comparable		89,788			11,069		2,209		—		80,928			88,121			10,854		2,037		—		79,304			1.9	%		2.0	%
Total		89,459			11,267		2,095		—		80,287			87,857			11,912		1,981		—		77,926
Hotels
Comparable		12,339			2,768		962		—		10,533			9,162			1,614		987		—		8,535			34.7	%		23.4	%
Total		6,224			—		962		7,229		14,415			5,238			—		987		9,293		15,518
Earnings from Commercial Land Sales		10,549			158		—		—		10,391			31,369			1,752		—		—		29,617
Development Fees		276			—		—		—		276			3,998			—		—		—		3,998
Other		(9,613	)		4,059		115		—		(13,557	)		(9,183	)		4,530		82		—		(13,631	)
Total Commercial Group
Comparable		195,911			24,479		8,966		—		180,398			186,220			23,063		8,760		—		171,917			5.2	%		4.9	%
Total		194,921			24,159		9,313		8,577		188,652			211,567			26,711		9,028		10,601		204,485
Residential Group
Apartments
Comparable		51,039			1,263		12,644		—		62,420			47,011			1,104		12,238		—		58,145			8.6	%		7.4	%
Total		63,033			1,674		15,658		238		77,255			47,668			2,360		15,695		4,332		65,335
Total Real Estate Groups
Comparable		246,950			25,742		21,610		—		242,818			233,231			24,167		20,998		—		230,062			5.9	%		5.5	%
Total		257,954			25,833		24,971		8,815		265,907			259,235			29,071		24,723		14,933		269,820
Land Development Group		37,977			1,979		489		—		36,487			47,495			2,615		239		—		45,119
The Nets		(12,742	)		—		2,332		—		(10,410	)		(13,216	)		—		1,476		—		(11,740	)
Corporate Activities		(18,296	)		—		—		—		(18,296	)		(16,303	)		—		—		—		(16,303	)
Grand Total	$	264,893		$	27,812	$	27,792	$	8,815	$	273,688		$	277,211		$	31,686	$	26,438	$	14,933	$	286,896

7

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Reconciliation of Net Operating Income (non-GAAP) to Net Earnings (GAAP) (in thousands):

	Three Months Ended July 31, 2006															Three Months Ended July 31, 2005
							Plus															Plus
	Full						Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Less Minority			Investments at			Discontinued			Consolidation			Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	266,275		$	25,317		$	75,331		$	14,944		$	331,233		$	283,041		$	28,309		$	74,621		$	27,586		$	356,939
Exclude straight-line rent adjustment(1)		(3,377	)		—			—			(15	)		(3,392	)		(3,790	)		—			—			(32	)		(3,822	)
Adjusted revenues		262,898			25,317			75,331			14,929			327,841			279,251			28,309			74,621			27,554			353,117
Operating expenses		158,997			13,135			49,221			8,975			204,058			166,096			13,187			45,737			19,604			218,250
Add back depreciation and amortization for non-Real Estate Groups(b)		347			—			1,334			—			1,681			279			—			1,683			—			1,962
Add back amortization of mortgage procurement costs for non-Real Estate Groups(d)		98			—			151			—			249			134			—			(22	)		—			112
Exclude straight-line rent adjustment(2)		(1,186	)		—			—			(306	)		(1,492	)		(1,236	)		—			—			(599	)		(1,835	)
Adjusted operating expenses		158,256			13,135			50,706			8,669			204,496			165,273			13,187			47,398			19,005			218,489
Add interest and other income		7,991			1,240			265			89			7,105			6,620			584			327			135			6,498
Add equity in earnings of unconsolidated entities		6,310			—			(4,389	)		—			1,921			9,880			—			(7,383	)		—			2,497
Remove gain on disposition of equity method rental properties		(7,662	)		—			7,662			—			—			—			—			—			—			—
Add back provision for decline recorded on equity method		400			—			(400	)		—			—			—			—			—			—			—
Add back equity method depreciation and amortization expense (see below)		13,662			—			(13,662	)		—			—			6,660			—			(6,660	)		—			—
Net operating income		125,343			13,422			14,101			6,349			132,371			137,138			15,706			13,507			8,684			143,623
Interest expense, including early extinguishment of debt		(74,789	)		(6,912	)		(14,101	)		(1,625	)		(83,603	)		(67,546	)		(7,054	)		(13,507	)		(5,282	)		(79,281	)
Gain on disposition of equity method rental properties(e)		7,662			—			—			—			7,662			—			—			—			—			—
Gain on disposition of rental properties		—			—			—			10,035			10,035			—			—			—			—			—
Provision for decline in real estate		(1,923	)		—			—			—			(1,923	)		(1,120	)		(46	)		—			—			(1,074	)
Provision for decline in real estate of equity method rental properties		(400	)		—			—			—			(400	)		—			—			—			—			—
Depreciation and amortization — Real Estate Groups(a)		(43,217	)		(3,738	)		(13,384	)		(1,522	)		(54,385	)		(39,546	)		(4,049	)		(6,356	)		(4,112	)		(45,965	)
Amortization of mortgage procurement costs – Real Estate Groups(c)		(2,413	)		(292	)		(278	)		(47	)		(2,446	)		(2,428	)		(339	)		(304	)		(509	)		(2,902	)
Straight-line rent adjustment(1) + (2)		2,191			—			—			(291	)		1,900			2,554			—			—			(567	)		1,987
Equity method depreciation and amortization expense (see above)		(13,662	)		—			13,662			—			—			(6,660	)		—			6,660			—			—
Earnings (loss) before income taxes		(1,208	)		2,480			—			12,899			9,211			22,392			4,218			—			(1,786	)		16,388
Income tax benefit		3,265			—			—			(4,984	)		(1,719	)		3,086			—			—			690			3,776
Earnings before minority interest and discontinued operations		2,057			2,480			—			7,915			7,492			25,478			4,218			—			(1,096	)		20,164
Minority Interest		(2,480	)		(2,480	)		—			—			—			(4,218	)		(4,218	)		—			—			—
Earnings (loss) from continuing operations		(423	)		—			—			7,915			7,492			21,260			—			—			(1,096	)		20,164
Discontinued operations, net of tax and minority interest:
Operating earnings (loss) from rental properties		1,757			—			—			(1,757	)		—			(1,096	)		—			—			1,096			—
Gain on disposition of rental properties		6,158			—			—			(6,158	)		—			—			—			—			—			—
		7,915			—			—			(7,915	)		—			(1,096	)		—			—			1,096			—
Net earnings	$	7,492		$	—		$	—		$	—		$	7,492		$	20,164		$	—		$	—		$	—		$	20,164
(a) Depreciation and amortization — Real Estate Groups	$	43,217		$	3,738		$	13,384		$	1,522		$	54,385		$	39,546		$	4,049		$	6,356		$	4,112		$	45,965
(b) Depreciation and amortization — Non-Real Estate Groups		347			—			1,334			—			1,681			279			—			1,683			—			1,962
Total depreciation and amortization	$	43,564		$	3,738		$	14,718		$	1,522		$	56,066		$	39,825		$	4,049		$	8,039		$	4,112		$	47,927
(c) Amortization of mortgage procurement costs — Real Estate Groups	$	2,413		$	292		$	278		$	47		$	2,446		$	2,428		$	339		$	304		$	509		$	2,902
(d) Amortization of mortgage procurement costs — Non-Real Estate Groups		98			—			151			—			249			134			—			(22	)		—			112
Total amortization of mortgage procurement costs	$	2,511		$	292		$	429		$	47		$	2,695		$	2,562		$	339		$	282		$	509		$	3,014
(e) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 and therefore are reported in continuing operations when sold. For the three months ended July 31, 2006, one equity method property was sold, Midtown Plaza, resulting in a pre-tax gain on disposition of $7,662. For the three months ended July 31, 2005, no equity method properties were sold.

8

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Reconciliation of Net Operating Income (non-GAAP) to Net Earnings (GAAP) (in thousands):

	Six Months Ended July 31, 2006															Six Months Ended July 31, 2005
							Plus															Plus
	Full						Unconsolidated			Plus			Pro-Rata			Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Less Minority			Investments at			Discontinued			Consolidation			Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	542,752		$	51,568		$	145,108		$	31,280		$	667,572		$	566,306		$	58,741		$	150,046		$	51,370		$	708,981
Exclude straight-line rent adjustment (1)		(6,071	)		—			—			(31	)		(6,102	)		(8,681	)		—			—			(63	)		(8,744	)
Adjusted revenues		536,681			51,568			145,108			31,249			661,470			557,625			58,741			150,046			51,307			700,237
Operating expenses		316,332			25,627			97,636			23,692			412,033			321,992			28,198			93,015			37,779			424,588
Add back depreciation and amortization for non-Real Estate Groups (b)		696			—			7,524			—			8,220			538			—			9,261			—			9,799
Add back amortization of mortgage procurement costs for non-Real Estate Groups (d)		190			—			298			—			488			202			—			68			—			270
Exclude straight-line rent adjustment (2)		(2,353	)		—			—			(718	)		(3,071	)		(2,564	)		—			—			(1,197	)		(3,761	)
Adjusted operating expenses		314,865			25,627			105,458			22,974			417,670			320,168			28,198			102,344			36,582			430,896
Add interest and other income		22,881			1,871			358			540			21,908			13,497			1,143			447			208			13,009
Add equity in earnings of unconsolidated entities		6,689			—			1,291			—			7,980			29,916			—			(25,370	)		—			4,546
Remove gain on disposition of equity method rental properties		(7,662	)		—			7,662			—			—			(18,497	)		—			18,497			—			—
Add back provision for decline recorded on equity method		400			—			(400	)		—			—			704			—			(704	)		—			—
Add back equity method depreciation and amortization expense (see below)		20,769			—			(20,769	)		—			—			14,134			—			(14,134	)		—			—
Net operating income		264,893			27,812			27,792			8,815			273,688			277,211			31,686			26,438			14,933			286,896
Interest expense, including early extinguishment of debt		(144,233	)		(13,660	)		(27,792	)		(3,913	)		(162,278	)		(133,748	)		(14,766	)		(26,438	)		(10,373	)		(155,793	)
Gain on disposition of equity method rental properties (e)		7,662			—			—			—			7,662			18,497			—			—			—			18,497
Gain on disposition of rental properties and other investments		—			—			—			85,333			85,333			606			—			—			—			606
Provision for decline in real estate		(1,923	)		—			—			—			(1,923	)		(2,620	)		(46	)		—			—			(2,574	)
Provision for decline in real estate of equity method rental properties		(400	)		—			—			—			(400	)		(704	)		—			—			—			(704	)
Depreciation and amortization — Real Estate Groups (a)		(85,091	)		(7,009	)		(20,202	)		(3,301	)		(101,585	)		(79,693	)		(8,880	)		(13,531	)		(7,893	)		(92,237	)
Amortization of mortgage procurement costs — Real Estate Groups (c)		(5,284	)		(600	)		(567	)		(104	)		(5,355	)		(4,674	)		(665	)		(603	)		(1,021	)		(5,633	)
Straight-line rent adjustment (1) + (2)		3,718			—			—			(687	)		3,031			6,117			—			—			(1,134	)		4,983
Equity method depreciation and amortization expense (see above)		(20,769	)		—			20,769			—			—			(14,134	)		—			14,134			—			—
Earnings before income taxes		18,573			6,543			—			86,143			98,173			66,858			7,329			—			(5,488	)		54,041
Income tax provision		(4,138	)		—			—			(33,285	)		(37,423	)		(13,783	)		—			—			2,122			(11,661	)
Earnings before minority interest and discontinued operations		14,435			6,543			—			52,858			60,750			53,075			7,329			—			(3,366	)		42,380
Minority Interest		(6,543	)		(6,543	)		—			—			—			(7,329	)		(7,329	)		—			—			—
Earnings from continuing operations		7,892			—			—			52,858			60,750			45,746			—			—			(3,366	)		42,380
Discontinued operations, net of tax and minority interest:
Operating earnings (loss) from rental properties		497			—			—			(497	)		—			(3,366	)		—			—			3,366			—
Gain on disposition of rental properties		52,361			—			—			(52,361	)		—			—			—			—			—			—
		52,858			—			—			(52,858	)		—			(3,366	)		—			—			3,366			—
Net earnings	$	60,750		$	—		$	—		$	—		$	60,750		$	42,380		$	—		$	—		$	—		$	42,380
(a) Depreciation and amortization — Real Estate Groups	$	85,091		$	7,009		$	20,202		$	3,301		$	101,585		$	79,693		$	8,880		$	13,531		$	7,893		$	92,237
(b) Depreciation and amortization — Non-Real Estate Groups		696			—			7,524			—			8,220			538			—			9,261			—			9,799
Total depreciation and amortization	$	85,787		$	7,009		$	27,726		$	3,301		$	109,805		$	80,231		$	8,880		$	22,792		$	7,893		$	102,036
(c) Amortization of mortgage procurement costs — Real Estate Groups	$	5,284		$	600		$	567		$	104		$	5,355		$	4,674		$	665		$	603		$	1,021		$	5,633
(d) Amortization of mortgage procurement costs — Non-Real Estate Groups		190			—			298			—			488			202			—			68			—			270
Total amortization of mortgage procurement costs	$	5,474		$	600		$	865		$	104		$	5,843		$	4,876		$	665		$	671		$	1,021		$	5,903
(e) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 and therefore are reported in continuing operations when sold. For the six months ended July 31, 2006, one equity method property was sold Midtown Plaza, resulting in a pre-tax gain on disposition of $7,662. For the six months ended July 31, 2005, two equity method investments were sold, Showcase and Colony Place, resulting in a pre-tax gain on disposition of $18,497.

9

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Retail Lease Expirations
as of July 31, 2006

														AVERAGE
														BASE
		NUMBER OF		SQUARE FEET		PERCENTAGE			NET		PERCENTAGE			RENT PER
EXPIRATION		EXPIRING		OF EXPIRING		OF TOTAL			BASE RENT		OF TOTAL			SQUARE FEET
YEAR		LEASES		LEASES (3)		LEASED GLA (1)			EXPIRING (2)		BASE RENT			EXPIRING (3)
	2006		117		281,677		2.68	%	$	6,240,313		3.19	%	$	28.74
	2007		188		583,845		5.55			9,900,313		5.05			23.36
	2008		178		622,907		5.92			11,542,410		5.89			25.94
	2009		241		814,954		7.75			13,753,094		7.02			24.07
	2010		198		587,770		5.59			12,789,283		6.53			27.42
	2011		275		1,169,362		11.12			26,610,671		13.58			27.74
	2012		124		664,610		6.32			14,120,344		7.21			26.24
	2013		135		563,253		5.36			14,660,283		7.48			29.22
	2014		159		686,397		6.53			12,821,952		6.55			27.07
	2015		168		724,607		6.89			17,663,168		9.02			28.03
	2016		79		622,013		5.91			12,319,130		6.29			27.12
	Thereafter		88		3,194,687		30.38			43,469,327		22.19			17.38
	Total		1,950		10,516,082		100.00	%	$	195,890,288		100.00	%	$	23.89

(1)	GLA = Gross Leasable Area.
(2)	Net base rent expiring is an operating statistic and is not comparable to rental revenue, a GAAP financial measure. The primary differences arise because net base rent is determined using the tenant’s contractual rental agreements at the Company’s ownership share of the base rental income from expiring leases as determined within the rent agreement and it does not include adjustments such as the impact of straight-line rent and contingent rental payments, which are not reasonably estimatable.
(3)	Square feet of expiring leases and average base rent per square feet are operating statistics that represent 100% of the square footage and base rental income per square foot from expiring leases.

10

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Office Lease Expirations
as of July 31, 2006

													AVERAGE
													BASE
	NUMBER OF		SQUARE FEET		PERCENTAGE			NET		PERCENTAGE			RENT PER
EXPIRATION	EXPIRING		OF EXPIRING		OF TOTAL			BASE RENT		OF TOTAL			SQUARE FEET
YEAR	LEASES		LEASES (3)		LEASED GLA (1)			EXPIRING (2)		BASE RENT			EXPIRING (3)
2006		38		438,025		5.06	%	$	7,095,514		3.68	%	$	25.00
2007		65		448,611		5.18			7,279,495		3.77			21.62
2008		71		534,062		6.17			9,721,016		5.04			21.89
2009		49		446,914		5.16			9,277,825		4.81			25.41
2010		44		985,520		11.38			15,745,740		8.16			24.71
2011		19		420,363		4.85			10,224,653		5.30			30.56
2012		15		705,550		8.15			19,743,409		10.24			31.74
2013		17		695,574		8.03			14,516,957		7.53			24.90
2014		9		535,175		6.18			11,793,984		6.11			28.35
2015		5		158,871		1.83			2,347,077		1.22			20.47
2016		7		379,795		4.38			6,507,204		3.37			22.60
Thereafter		30		2,913,292		33.63			78,649,976		40.77			31.50
Total		369		8,661,752		100.00	%	$	192,902,850		100.00	%	$	27.64

(1)	GLA = Gross Leasable Area.
(2)	Net base rent expiring is an operating statistic and is not comparable to rental revenue, a GAAP financial measure. The primary differences arise because net base rent is determined using the tenant’s contractual rental agreements at the Company’s ownership share of the base rental income from expiring leases as determined within the rent agreement and it does not include adjustments such as the impact of straight-line rent and contingent rental payments, which are not reasonably estimatable.
(3)	Square feet of expiring leases and average base rent per square feet are operating statistics that represent 100% of the square footage and base rental income per square foot from expiring leases.

11

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Retail Tenants
as of July 31, 2006

(Based on net base rent 1% or greater of the Company’s ownership share)

					PERCENTAGE
	NUMBER		LEASED		OF TOTAL
	OF		SQUARE		RETAIL
TENANT	LEASES		FEET		SQUARE FEET
AMC Entertainment, Inc.		5		462,863		4.40	%
Regal Entertainment Group		6		451,072		4.29
The Gap		23		289,509		2.76
The Home Depot		2		282,000		2.68
TJX Companies		8		272,554		2.59
The Limited		39		250,476		2.38
Dick’s Sporting Goods		3		226,408		2.15
Circuit City Stores, Inc.		6		199,107		1.90
Lowe’s Home Center, Inc.		1		151,273		1.44
Abercrombie & Fitch Stores, Inc.		22		148,547		1.41
Footlocker, Inc.		37		130,692		1.24
Pathmark Stores, Inc.		2		123,500		1.18
Ahold USA (Stop & Shop)		2		115,861		1.10
Subtotal		156		3,103,862		29.52
All Others		1,794		7,412,220		70.48
Total		1,950		10,516,082		100.00	%

12

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Schedule of Significant Office Tenants
as of July 31, 2006

(Based on net base rent 2% or greater of the Company’s ownership share)

			PERCENTAGE
			OF TOTAL
	LEASED		OFFICE
TENANT	SQUARE FEET		SQUARE FEET
City of New York		855,008		9.87	%
Millennium Pharmaceuticals, Inc.		725,833		8.38
U.S. Government		718,803		8.30
Morgan Stanley & Co.		444,685		5.13
Securities Industry Automation Corp.		430,436		4.97
Wellchoice, Inc.		392,514		4.53
Keyspan Energy		335,318		3.87
Forest City Enterprises, Inc. (1)		326,245		3.77
Bank of New York		317,572		3.67
Bear Stearns		275,244		3.18
Alkermes, Inc.		210,248		2.43
Partners Health Care System, Inc.		136,150		1.57
University of Pennsylvania		121,630		1.40
Subtotal		5,289,686		61.07
All Others		3,372,066		38.93
Total		8,661,752		100.00	%

(1) All intercompany rental income is eliminated in consolidation.

13

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline
July 31, 2006
2006 Openings and Acquisitions (5)

																Cost at FCE
						FCE Legal			Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share
		Dev.(D)		Date Opened/		Ownership%(i)			FCE % (i)			Consolidation		at 100%		(Non-GAAP)(b)				Gross
Property	Location	Acq.(A)		Acquired		(1)			(2)			(GAAP)(a)		(3)		(2)X(3)		Sq. Ft./ No. of Units		Leasable Area
												(in millions)
Retail Centers:
Metreon (c)	San Francisco, CA		A		Q1-06		50.0	%		50.0	%	$	0.0	$	40.0	$	20.0		290,000		290,000
Northfield at Stapleton Phase II (l)	Denver, CO		D		Q1-06		95.0	%		97.4	%		9.1		9.1		8.9		86,000		86,000
												$	9.1	$	49.1	$	28.9		376,000		376,000
Office:
Resurrection Health Care	Skokie, IL		A		Q1-06		100.0	%		100.0	%	$	4.6	$	4.6	$	4.6		40,000
Residential:
Sky55	Chicago, IL		D		Q1-06		100.0	%		100.0	%	$	113.2	$	113.2	$	113.2		411
1251 S. Michigan	Chicago, IL		D		Q1-06		100.0	%		100.0	%		16.7		16.7		16.7		91
												$	129.9	$	129.9	$	129.9		502
Total openings (d)												$	143.6	$	183.6	$	163.4
Residential Phased-In Units (c)(e)																		Opened in ’06 / Total
Woodgate/Evergreen Farms	Olmsted Township, OH		D		2004-07		33.0	%		33.0	%	$	0.0	$	22.9	$	7.6		36 / 348
Arbor Glenn	Twinsburg, OH		D		2004-07		50.0	%		50.0	%		0.0		18.4		9.2		48 / 288
Pine Ridge Expansion	Willoughby Hills, OH		D		2005-06		50.0	%		50.0	%		0.0		16.4		8.2		15 / 162
Cobblestone Court	Painesville, OH		D		2006-08		50.0	%		50.0	%		0.0		24.6		12.3		48 / 304
Total (f)												$	0.0	$	82.3	$	37.3		147 / 1,102

See attached July 31, 2006 footnotes.

14

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline
July 31, 2006
Under Construction or to be acquired (22)

						FCE										Cost at FCE
						Legal			Pro-Rata			Cost at Full		Total Cost		Pro-Rata Share		Total			Gross
		Dev.(D)		Anticipated		Ownership%(i)			FCE % (i)			Consolidation		at 100%		(Non-GAAP)(b)		Sq. Ft./			Leasable			Pre-
Property	Location	Acq.(A)		Opening		(1)			(2)			(GAAP)(a)		(3)		(2)X(3)		No. of Units			Area			Leased %
												(in millions)
Retail Centers:
San Francisco Centre-Emporium (c)	San Francisco, CA		D		Q3-06		50.0	%		50.0	%	$	0.0	$	443.7	$	221.9		964,000			626,000	(k)		80	%
San Francisco Centre (c)	San Francisco, CA		A		Q3-06		50.0	%		50.0	%		0.0		151.8		75.9		498,000			186,000			98	%
Northfield at Stapleton Phase III (l)	Denver, CO		D		Q3-06		95.0	%		97.4	%		137.0		137.0		133.4		637,000			497,000	(j)		55	%
Promenade Bolingbrook	Bolingbrook, IL		D		Q1-07		100.0	%		100.0	%		133.5		133.5		133.5		743,000			417,000	(j)		45	%
Rancho Cucamonga Leggio	Rancho Cucamonga, CA		D		Q2-07		80.0	%		80.0	%		41.2		41.2		33.0		180,000			180,000			100	%
East River Plaza (c)	Manhattan, NY		D		Q3-08		35.0	%		50.0	%		0.0		384.0		192.0		547,000			547,000			55	%
Orchard Town Center (o)	Westminster, CO		D		2006/2007/2008		100.0	%		100.0	%		135.6		135.6		135.6		972,000	(p)		558,000			10	%
												$	447.3	$	1,426.8	$	925.3		4,541,000			3,011,000
Office:
Advent Solar (c)	Albuquerque, NM		D		Q3-06		50.0	%		50.0	%	$	0.0	$	10.7	$	5.4		88,000						100	%
Illinois Science and Technology Park	Skokie, IL		A/D		Q4-06/Q1-07/ Q3-07/Q1-09		100.0	%		100.0	%		127.5		127.5		127.5		658,000						28	%
Stapleton Medical Office Building	Denver, CO		D		Q3-06		90.0	%		90.0	%		10.6		10.6		9.5		45,000						44	%
Edgeworth Building	Richmond, VA		D		Q4-06		100.0	%		100.0	%		35.2		35.2		35.2		142,000						60	%
New York Times	Manhattan, NY		D		Q2-07		70.0	%		100.0	%		492.9		492.9		492.9		732,000	(q)					78	%
Johns Hopkins – 855 North Wolfe Street	East Baltimore, MD		D		Q1-08		77.5	%		77.5	%		100.4		100.4		77.8		279,000						36	%
												$	766.6	$	777.3	$	748.3		1,944,000
Residential:
Sterling Glen of Roslyn (g)	Roslyn, NY		D		Q1-07		40.0	%		100.0	%	$	75.8	$	75.8	$	75.8		158
Stapleton Town Center – Botanica Phase II (r)	Denver, CO		D		Q1-07/Q3-07		90.0	%		90.0	%		26.6		26.6		23.9		154
Uptown Apartments (c)	Oakland, CA		D		Q4-08		50.0	%		50.0	%		0.0		188.5		94.3		665
Ohana Military Communities (c) (e)	Honolulu, HI		D		2005-2008		10.0	%		10.0	%		0.0		316.5		31.7		1,952
Dallas Mercantile	Dallas, TX		D		Q2-07/Q2-08		100.0	%		100.0	%		116.2		116.2		116.2		362	(n)
Military Housing – Navy Midwest (c)	Chicago, IL		D		Q1-09		25.0	%		25.0	%		0.0		264.9		66.2		1,658
												$	218.6	$	988.5	$	408.1		4,949
																					Pre-Sold %
Condominiums:
1100 Wilshire (c)	Los Angeles, CA		D		Q3-06		50.0	%		50.0	%	$	0.0	$	124.9	$	62.5		228			86	%
Cutters Ridge at Tobacco Row	Richmond, VA		D		Q3-06		100.0	%		100.0	%		4.7		4.7		4.7		12			8	%
Mercury (c)	Los Angeles, CA		D		Q1-07		50.0	%		50.0	%		0.0		142.6		71.3		238			32	%
												$	4.7	$	272.2	$	138.5		478
Total Under Construction (h)												$	1,437.2	$	3,464.8	$	2,220.2
LESS: Above properties to be sold as condominiums													4.7		272.2		138.5
Under Construction less Condominiums												$	1,432.5	$	3,192.6	$	2,081.7
Residential Phased-In Units Under Construction:(c) (e)																		Under Const./Total
Arbor Glen	Twinsburg, OH		D		2004-07		50.0	%		50.0	%	$	0.0	$	18.4	$	9.2		48 / 288
Woodgate/Evergreen Farms	Olmsted Township, OH		D		2004-07		33.0	%		33.0	%		0.0		22.9		7.6		108 / 348
Pine Ridge Expansion	Willoughby Hills, OH		D		2005-06		50.0	%		50.0	%		0.0		16.4		8.2		78 / 162
Cobblestone Court	Painesville, OH		D		2006-08		50.0	%		50.0	%		0.0		24.6		12.3		256 / 304
Total (m)												$	0.0	$	82.3	$	37.3		490 / 1,102

See attached July 31, 2006 footnotes.

15

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Operating Information

Development Pipeline

July 31, 2006 Footnotes

(a)	Amounts are presented on the full consolidation method of accounting, a GAAP measure. Under full consolidation, costs are reported as consolidated at 100 percent if we are deemed to have control or to be the primary beneficiary of our investments in the variable interest entity (“VIE”).
(b)	Cost at pro-rata share represents Forest City’s share of cost, based on the Company’s pro-rata ownership of each property (a non-GAAP measure). Under the pro-rata consolidation method of accounting the Company determines its pro-rata share by multiplying its pro-rata ownership by the total cost of the applicable property.
(c)	Reported under the equity method of accounting. This method represents a GAAP measure for investments in which the Company is not deemed to have control or to be the primary beneficiary of our investments in a VIE.
(d)	The difference between the full consolidation amount (GAAP) of $143.6 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $163.4 million of cost consists of a reduction to full consolidation for minority interest of $0.2 million of cost and the addition of its share of cost for unconsolidated investments of $20.0 million.
(e)	Phased-in openings. Costs are representative of the total project.
(f)	The difference between the full consolidation amount (GAAP) of $0.0 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $37.3 million of cost consists of the Company’s share of cost for unconsolidated investments of $37.3 million.
(g)	Supported-living property.
(h)	The difference between the full consolidation amount (GAAP) of $1,437.2 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $2,220.2 million of cost consists of a reduction to full consolidation for minority interest of $38.2 million of cost and the addition of its share of cost for unconsolidated investments of $821.2 million.
(i)	As is customary within the real estate industry, the Company invests in certain real estate projects through joint ventures. For some of these projects, the Company provides funding at percentages that differ from the Company’s legal ownership. The Company consolidates its investments in these projects in accordance with FIN No. 46 (R) at a consolidation percentage that is reflected in the Pro-Rata FCE % column.
(j)	Includes 39,000 square feet of office space.
(k)	Includes 235,000 square feet of office space.
(l)	Phased opening: Phase I opened Q4-05, Phase II opened Q1-06, Phase III is scheduled to open Q3-06.
(m)	The difference between the full consolidation amount (GAAP) of $0.0 million of cost to the Company’s pro-rata share (a non-GAAP measure) of $37.3 million of cost consists of Forest City’s share of cost for unconsolidated investments of $37.3 million.
(n)	Project includes 18,000 square feet of retail space.
(o)	Phased opening: Phase I is scheduled to open Q3-06, Phase II Q3-07 and Phase III Q1-08.
(p)	Includes 177,000 square feet for Target and 97,000 square feet for JCPenney opening in 2006, and 140,000 square feet for Macy’s opening in 2007.
(q)	Includes 24,000 square feet of retail space. Subsequent to July 31, 2006 the Company acquired the equity of its partner, therefore, the Company’s new pro-rata share is 100 percent.
(r)	Phased opening: Phase I is scheduled to open Q1-07 and Phase II Q3-07.

16

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Mortgage Financings

Our primary capital strategy seeks to isolate the financial risk at the property level to maximize returns and reduce risk on and of our equity capital. Our mortgage debt is nonrecourse, including our construction loans. We operate as a C-corporation and retain substantially all of our internally generated cash flows. We recycle this cash flow, together with refinancing and property sale proceeds to fund new development and acquisitions that drive favorable returns for our shareholders. This strategy provides us with the necessary liquidity to take advantage of investment opportunities.

We use taxable and tax-exempt nonrecourse debt for our real estate projects. For those operating projects financed with taxable debt, we generally seek long-term, fixed rate financing for those real estate project loans which mature within the next 12 months, as well as those real estate projects which are projected to open and achieve stabilized operations during that same time frame. For real estate projects financed with tax-exempt debt, we generally utilize variable rate debt. For construction loans, we generally pursue variable-rate financings with maturities ranging from two to five years.

We are actively working to extend the maturities and/or refinance the nonrecourse debt that is coming due in 2006 and 2007. During the six months ended July 31, 2006, we completed the following financings:

					Plus
					Unconsolidated
	Full		Less Minority		Investments at		Pro-Rata
Purpose of Financing	Consolidation		Interest		Pro-Rata		Consolidation
	(in thousands)
Refinancings	$	238,309	$	9,600	$	19,466	$	248,175
Development projects — commitment		37,000		6,400		12,984		43,584
Loan extensions/additional fundings		129,376		3,064		51,768		178,080
	$	404,685	$	19,064	$	84,218	$	469,839

17

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Mortgage Debt (dollars in thousands)
As of July 31, 2006

	Period Ending January 31, 2007												Fiscal Year Ending January 31, 2008
							Plus												Plus
							Unconsolidated												Unconsolidated
	Full			Less Minority			Investments at			Pro-Rata			Full			Less Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	203,686		$	4,191		$	6,706		$	206,201		$	162,014		$	23,250		$	95,619		$	234,383
Weighted average rate		7.10	%		7.31	%		6.83	%		7.08	%		6.88	%		6.94	%		7.46	%		7.11	%
UDAG		377			91			11,775			12,061			728			180			—			548
Weighted average rate		4.33	%		4.52	%		7.20	%		7.13	%		4.23	%		4.43	%		—			4.16	%
Total fixed-rate debt		204,063			4,282			18,481			218,262			162,742			23,430			95,619			234,931
Variable:
Variable-rate debt		209,774			9,886			39,511			239,399			320,300			66,420			107,334			361,214
Weighted average rate		6.07	%		7.73	%		8.14	%		6.34	%		7.37	%		8.18	%		7.50	%		7.26	%
Tax-Exempt		108,424			—			4,765			113,189			79,970			—			29,189			109,159
Weighted average rate		5.66	%		—			5.00	%		5.63	%		5.10	%		—			5.12	%		5.10	%
Total variable-rate debt		318,198			9,886			44,276			352,588			400,270			66,420			136,523			470,373
Total Nonrecourse Mortgage Debt	$	522,261		$	14,168		$	62,757		$	570,850		$	563,012		$	89,850		$	232,142		$	705,304
Weighted Average Rate		6.38	%		7.58	%		7.59	%		6.49	%		6.90	%		7.85	%		7.18	%		6.87	%

	Fiscal Year Ending January 31, 2009												Fiscal Year Ending January 31, 2010
							Plus												Plus
							Unconsolidated												Unconsolidated
	Full			Less Minority			Investments at			Pro-Rata			Full			Less Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	98,979		$	19,224		$	85,903		$	165,658		$	259,625		$	57,788		$	97,728		$	299,565
Weighted average rate		6.68	%		7.00	%		6.81	%		6.71	%		7.05	%		7.43	%		7.03	%		6.96	%
UDAG		726			188			948			1,486			724			197			—			527
Weighted average rate		4.23	%		4.46	%		4.00	%		4.05	%		4.22	%		4.49	%		—			4.12	%
Total fixed-rate debt		99,705			19,412			86,851			167,144			260,349			57,985			97,728			300,092
Variable:
Variable-rate debt		45,046			442			126,237			170,841			3,190			—			11,863			15,053
Weighted average rate		5.88	%		7.60	%		7.53	%		7.10	%		4.69	%		—			6.66	%		6.25	%
Tax-Exempt		16,315			—			103			16,418			165,345			5,000			120,113			280,458
Weighted average rate		5.20	%		—			4.20	%		5.19	%		4.29	%		4.22	%		4.41	%		4.34	%
Total variable-rate debt		61,361			442			126,340			187,259			168,535			5,000			131,976			295,511
Total Nonrecourse Mortgage Debt	$	161,066		$	19,854		$	213,191		$	354,403		$	428,884		$	62,985		$	229,704		$	595,603
Weighted Average Rate		6.30	%		6.99	%		7.22	%		6.82	%		5.96	%		7.17	%		5.64	%		5.71	%

18

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Scheduled Maturities Table: Nonrecourse Mortgage Debt (dollars in thousands) (continued)
As of July 31, 2006

	Fiscal Year Ending January 31, 2011												Thereafter
							Plus												Plus
							Unconsolidated												Unconsolidated
	Full			Less Minority			Investments at			Pro-Rata			Full			Less Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation			Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	266,887		$	75,112		$	18,804		$	210,579		$	2,620,672		$	282,633		$	276,542		$	2,614,581
Weighted average rate		7.15	%		6.98	%		7.35	%		7.23	%		6.06	%		6.43	%		5.94	%		6.01	%
UDAG		20,671			13,065			—			7,606			72,188			5,499			—			66,689
Weighted average rate		1.87	%		1.02	%		—			3.32	%		2.00	%		2.61	%		—			1.95	%
Total fixed-rate debt		287,558			88,177			18,804			218,185			2,692,860			288,132			276,542			2,681,270
Variable:
Variable-rate debt		48,271			—			8,028			56,299			61,777			—			36,487			98,264
Weighted average rate		4.86	%		—			9.15	%		5.47	%		4.59	%		—			6.52	%		5.31	%
Tax-Exempt		31,385			—			6,118			37,503			276,174			11,780			43,998			308,392
Weighted average rate		4.51	%		—			4.22	%		4.47	%		4.80	%		4.58	%		4.09	%		4.71	%
Total variable-rate debt		79,656			—			14,146			93,802			337,951			11,780			80,485			406,656
Total Nonrecourse Mortgage Debt	$	367,214		$	88,177		$	32,950		$	311,987		$	3,030,811		$	299,912		$	357,027		$	3,087,926
Weighted Average Rate		6.33	%		6.10	%		7.21	%		6.49	%		5.82	%		6.28	%		5.77	%		5.77	%
						Total
							Plus
							Unconsolidated
	Full			Less Minority			Investments at			Pro-Rata
	Consolidation			Interest			Pro-Rata			Consolidation
Fixed:
Fixed-rate debt	$	3,611,863		$	462,198		$	581,302		$	3,730,967
Weighted average rate		6.33	%		6.70	%		6.56	%		6.32	%
UDAG		95,414			19,220			12,723			88,917
Weighted average rate		2.03	%		1.59	%		6.96	%		2.83	%
Total fixed-rate debt		3,707,277			481,418			594,025			3,819,884
Variable:
Variable-rate debt		688,358			76,748			329,460			941,070
Weighted average rate		6.44	%		8.12	%		7.49	%		6.67	%
Tax-Exempt		677,613			16,780			204,286			865,119
Weighted average rate		4.84	%		4.47	%		4.45	%		4.76	%
Total variable-rate debt		1,365,971			93,528			533,746			1,806,189
Total Nonrecourse Mortgage Debt	$	5,073,248		$	574,946		$	1,127,771		$	5,626,073
Weighted Average Rate		6.06	%		6.65	%		6.45	%		6.08	%

19

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

As discussed on page 2, we present certain financial amounts under the pro-rata consolidation method (a non-GAAP measure). This information is useful to our investors because we believe that it more accurately reflects the manner in which we operate our business. This is because, in line with industry practice, we have a large number of investments in which our economic ownership is less than 100% as a means of procuring opportunities and sharing risk. The tables below present amounts for both full consolidation, a GAAP measure, and pro-rata consolidation, providing a reconciliation of the difference between the two methods. Under the pro-rata consolidation method, we present our partnership investments proportionate to our share of ownership for each line item of our consolidated financial statements. Under full consolidation, partnership assets and liabilities are reported as consolidated at 100% if deemed to be under our control or if we are deemed to be the primary beneficiary for our investments in a VIE. Partnership assets and liabilities are reported on the equity or cost method of accounting if we do not have control, or, in the case of investments in VIEs, the Company is not deemed the primary beneficiary.

Consolidated Balance Sheet Information – July 31, 2006 (unaudited)

							Plus
	Full						Unconsolidated			Pro-Rata
	Consolidation			Less Minority			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Assets
Real Estate
Completed rental properties	$	6,172,674		$	670,041		$	971,429		$	6,474,062
Projects under development		1,006,499			115,319			506,716			1,397,896
Land held for development or sale		139,602			4,617			109,806			244,791
Total Real Estate		7,318,775			789,977			1,587,951			8,116,749
Less accumulated depreciation		(1,035,741	)		(142,994	)		(288,869	)		(1,181,616	)
Real Estate, net		6,283,034			646,983			1,299,082			6,935,133
Cash and equivalents		154,680			29,634			18,208			143,254
Restricted cash		394,269			75,899			130,408			448,778
Notes and accounts receivable, net		248,363			42,009			6,582			212,936
Investments in and advances to affiliates		413,655			—			(201,809	)		211,846
Other assets		513,602			38,463			89,898			565,037
Total Assets	$	8,007,603		$	832,988		$	1,342,369		$	8,516,984
Liabilities and Shareholders’ Equity
Liabilities
Mortgage debt, nonrecourse	$	5,073,248		$	574,946		$	1,127,771		$	5,626,073
Notes payable		66,557			8,619			104,603			162,541
Bank revolving credit facility		139,000			—			—			139,000
Senior and subordinated debt		599,400			—			—			599,400
Accounts payable and accrued expenses		621,053			114,746			109,995			616,302
Deferred income taxes		427,696			—			—			427,696
Total Liabilities		6,926,954			698,311			1,342,369			7,571,012
Minority Interest		134,677			134,677			—			—
Total Shareholders’ Equity		945,972			—			—			945,972
Total Liabilities and Shareholders’ Equity	$	8,007,603		$	832,988		$	1,342,369		$	8,516,984

20

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Balance Sheet Information — January 31, 2006 (unaudited)

							Plus
	Full						Unconsolidated			Pro-Rata
	Consolidation			Less Minority			Investments at			Consolidation
	(GAAP)			Interest			Pro-Rata			(Non-GAAP)
	(in thousands)
Assets
Real estate
Completed rental properties	$	6,162,995		$	765,827		$	931,183		$	6,328,351
Projects under development		886,256			84,241			394,648			1,196,663
Land held for development or sale		105,875			3,420			97,566			200,021
Total real estate		7,155,126			853,488			1,423,397			7,725,035
Less accumulated depreciation		(986,594	)		(147,375	)		(269,412	)		(1,108,631	)
Real estate, net		6,168,532			706,113			1,153,985			6,616,404
Cash and equivalents		254,734			33,026			13,522			235,230
Restricted cash		430,264			31,942			51,241			449,563
Notes and accounts receivable, net		265,264			30,562			(2,045	)		232,657
Investments in and advances to affiliates		361,942			—			(155,245	)		206,697
Other assets		509,605			37,042			93,873			566,436
Total assets	$	7,990,341		$	838,685		$	1,155,331		$	8,306,987
Liabilities and shareholders’ equity
Liabilities
Mortgage debt, nonrecourse	$	5,159,432		$	625,600		$	966,107		$	5,499,939
Notes payable		89,174			19,214			91,710			161,670
Bank revolving credit facility		82,500			—			—			82,500
Senior and subordinated debt		599,400			—			—			599,400
Accounts payable and accrued expenses		674,949			91,155			97,514			681,308
Deferred income taxes		387,788			—			—			387,788
Total liabilities		6,993,243			735,969			1,155,331			7,412,605
Minority interest		102,716			102,716			—			—
Total shareholders’ equity		894,382			—			—			894,382
Total liabilities and shareholders’ equity	$	7,990,341		$	838,685		$	1,155,331		$	8,306,987

21

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information – Three Months Ended July 31, 2006 (unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	266,275		$	25,317		$	75,331		$	14,944		$	331,233
Expenses
Operating expenses		158,997			13,135			49,221			8,975			204,058
Depreciation and amortization		43,564			3,738			14,718			1,522			56,066
Provision for decline in real estate		1,923			—			400			—			2,323
		204,484			16,873			64,339			10,497			262,447
Interest expense, including early extinguishment of debt		(74,789	)		(6,912	)		(14,101	)		(1,625	)		(83,603	)
Amortization of mortgage procurement costs		(2,511	)		(292	)		(429	)		(47	)		(2,695	)
Interest and other income		7,991			1,240			265			89			7,105
Equity in earnings of unconsolidated entities (Note 1)		6,310			—			(4,389	)		—			1,921
Gain on disposition of rental properties		—			—			7,662			10,035			17,697
Earnings (loss) before income taxes		(1,208	)		2,480			—			12,899			9,211
Income tax expense (benefit)
Current		(5,117	)		—			—			662			(4,455	)
Deferred		1,852			—			—			4,322			6,174
		(3,265	)		—			—			4,984			1,719
Earnings before minority interest and discontinued operations		2,057			2,480			—			7,915			7,492
Minority interest		(2,480	)		(2,480	)		—			—			—
Earnings (loss) from continuing operations (Note 1)		(423	)		—			—			7,915			7,492
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		1,757			—			—			(1,757	)		—
Gain on disposition of rental properties		6,158			—			—			(6,158	)		—
		7,915			—			—			(7,915	)		—
Net earnings	$	7,492		$	—		$	—		$	—		$	7,492

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the three months ended July 31, 2006, one equity method investment was sold, Midtown Plaza. A pre-tax gain of $7,662 ($4,700 net of tax) has been reported in equity in earnings of unconsolidated entities in the Consolidated Statements of Earnings, and therefore is included in earnings (loss) from continuing operations.

22

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information – Six Months Ended July 31, 2006 (unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	542,752		$	51,568		$	145,108		$	31,280		$	667,572
Expenses
Operating expenses		316,332			25,627			97,636			23,692			412,033
Depreciation and amortization		85,787			7,009			27,726			3,301			109,805
Provision for decline in real estate		1,923			—			400			—			2,323
		404,042			32,636			125,762			26,993			524,161
Interest expense, including early extinguishment of debt		(144,233	)		(13,660	)		(27,792	)		(3,913	)		(162,278	)
Amortization of mortgage procurement costs		(5,474	)		(600	)		(865	)		(104	)		(5,843	)
Interest and other income		22,881			1,871			358			540			21,908
Equity in earnings of unconsolidated entities (Note 1)		6,689			—			1,291			—			7,980
Gain on disposition of rental properties		—			—			7,662			85,333			92,995
Earnings before income taxes		18,573			6,543			—			86,143			98,173
Income tax expense (benefit)
Current		(5,348	)		—			—			(166	)		(5,514	)
Deferred		9,486			—			—			33,451			42,937
		4,138			—			—			33,285			37,423
Earnings before minority interest and discontinued operations		14,435			6,543			—			52,858			60,750
Minority interest		(6,543	)		(6,543	)		—			—			—
Earnings from continuing operations (Note 1)		7,892			—			—			52,858			60,750
Discontinued operations, net of tax and minority interest:
Operating earnings from rental properties		497			—			—			(497	)		—
Gain on disposition of rental properties		52,361			—			—			(52,361	)		—
		52,858			—			—			(52,858	)		—
Net earnings	$	60,750		$	—		$	—		$	—		$	60,750

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the six months ended July 31, 2006, one equity method investment was sold, Midtown Plaza. A pre-tax gain of $7,662 ($4,700 net of tax) has been reported in equity in earnings of unconsolidated entities in the Consolidated Statements of Earnings, and therefore is included in earnings from continuing operations.

23

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information – Three Months Ended July 31, 2005 (unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	283,041		$	28,309		$	74,621		$	27,586		$	356,939
Expenses
Operating expenses		166,096			13,187			45,737			19,604			218,250
Depreciation and amortization		39,825			4,049			8,039			4,112			47,927
Provision for decline in real estate		1,120			46			—			—			1,074
		207,041			17,282			53,776			23,716			267,251
Interest expense, including early extinguishment of debt		(67,546	)		(7,054	)		(13,507	)		(5,282	)		(79,281	)
Amortization of mortgage procurement costs		(2,562	)		(339	)		(282	)		(509	)		(3,014	)
Interest and other income		6,620			584			327			135			6,498
Equity in earnings of unconsolidated entities (Note 1)		9,880			—			(7,383	)		—			2,497
Earnings before income taxes		22,392			4,218			—			(1,786	)		16,388
Income tax expense (benefit)
Current		62			—			—			(1,668	)		(1,606	)
Deferred		(3,148	)		—			—			978			(2,170	)
		(3,086	)		—			—			(690	)		(3,776	)
Earnings before minority interest and discontinued operations		25,478			4,218			—			(1,096	)		20,164
Minority interest		(4,218	)		(4,218	)		—			—			—
Earnings from continuing operations (Note 1)		21,260			—			—			(1,096	)		20,164
Discontinued operations, net of tax and minority interest:
Operating loss from rental properties		(1,096	)		—			—			1,096			—
Net earnings	$	20,164		$	—		$	—		$	—		$	20,164

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the three months ended July 31, 2005, no equity method investments were sold.

24

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Consolidated Earnings Information – Six Months Ended July 31, 2005 (unaudited)

							Plus
	Full			Less			Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority			Investments at			Discontinued			Consolidation
	(GAAP)			Interest			Pro-Rata			Operations			(Non-GAAP)
	(in thousands)
Revenues from real estate operations	$	566,306		$	58,741		$	150,046		$	51,370		$	708,981
Expenses
Operating expenses		321,992			28,198			93,015			37,779			424,588
Depreciation and amortization		80,231			8,880			22,792			7,893			102,036
Provision for decline in real estate		2,620			46			704			—			3,278
		404,843			37,124			116,511			45,672			529,902
Interest expense, including early extinguishment of debt		(133,748	)		(14,766	)		(26,438	)		(10,373	)		(155,793	)
Amortization of mortgage procurement costs		(4,876	)		(665	)		(671	)		(1,021	)		(5,903	)
Interest and other income		13,497			1,143			447			208			13,009
Equity in earnings of unconsolidated entities (Note 1)		29,916			—			(25,370	)		—			4,546
Gain on disposition of rental properties and other investments		606			—			18,497			—			19,103
Earnings before income taxes		66,858			7,329			—			(5,488	)		54,041
Income tax expense (benefit)
Current		8,648			—			—			(3,976	)		4,672
Deferred		5,135			—			—			1,854			6,989
		13,783			—			—			(2,122	)		11,661
Earnings before minority interest and discontinued operations		53,075			7,329			—			(3,366	)		42,380
Minority interest		(7,329	)		(7,329	)		—			—			—
Earnings from continuing operations (Note 1)		45,746			—			—			(3,366	)		42,380
Discontinued operations, net of tax and minority interest:
Operating loss from rental properties		(3,366	)		—			—			3,366			—
Net earnings	$	42,380		$	—		$	—		$	—		$	42,380

Note 1) Properties accounted for on the equity method do not meet the definition of a component of an entity under SFAS No. 144 “Accounting for the Impairment or Disposal of Long-Lived Assets,” and therefore are reported in continuing operations when sold. For the six months ended July 31, 2005, two equity method investments were sold, Colony Place and Showcase, resulting in a pre-tax gain on disposition of $18,497 ($11,349 net of tax). This gain has been reported in equity in earnings of unconsolidated entities in the Consolidated Statement of Earnings, and therefore is included in Earnings from Continuing Operations.

25

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

The following schedules present information on investments in and advances to affiliates.

Investments in and Advances to Affiliates

Included in Investments in and Advances to Affiliates in the Consolidated Balance Sheet Information tables are unconsolidated investments in entities which we do not control and/or are not the primary beneficiary, and which are accounted for under the equity method of accounting, as well as advances to partners and other affiliates.

Following is a reconciliation of members’ and partners’ equity to our carrying value in the accompanying Consolidated Balance Sheet Information:

	July 31,		January 31,
	2006		2006
	(in thousands)
Members’ and partners’ equity as below	$	741,275	$	564,280
Equity of other members and partners		539,466		409,035
Company’s investment in partnerships		201,809		155,245
Advances to and on behalf of other affiliates (1)		211,846		206,697
Total investments in and advances to affiliates	$	413,655	$	361,942

(1) As is customary within the real estate industry, the Company invests in certain projects through joint ventures. The Company provides funding for certain of its partners’ equity contributions. The most significant partnership for which the Company provides funding relates to Forest City Ratner Companies, representing the Commercial Group’s New York City operations and one unconsolidated project reported in the Residential Group. The Company consolidates the majority of its investments in these Commercial Group projects. The Company’s partner is the President and Chief Executive Officer of Forest City Ratner Companies and is the cousin to five executive officers of the Company. At July 31, 2006 and January 31, 2006, amounts advanced for projects on behalf of this partner, collateralized solely by each respective partnership interest were $50,937 and $50,230, respectively, of the $211,846 and $206,697 presented above for “Advances to and on behalf of other affiliates.” These advances entitle the Company to a preferred return on and of the outstanding balances, which are payable solely from cash flows of each respective property, as well as a deficit restoration obligation provided by the partner.

Summarized financial information for the equity method investments is as follows:

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
	July 31, 2006			January 31, 2006			July 31, 2006			January 31, 2006
	(in thousands)						(in thousands)
Balance sheet:
Completed rental properties	$	2,094,505		$	1,946,922		$	971,429		$	931,183
Projects under development		1,137,348			854,316			506,716			394,648
Land held for development or sale		204,029			181,315			109,806			97,566
Accumulated depreciation		(555,910	)		(529,501	)		(288,869	)		(269,412	)
Restricted cash		579,821			317,850			130,408			51,241
Other assets		478,256			469,676			114,688			105,350
Total assets	$	3,938,049		$	3,240,578		$	1,544,178		$	1,310,576
Mortgage debt, nonrecourse	$	2,603,527		$	2,145,146		$	1,127,771		$	966,107
Other liabilities		593,247			531,152			214,598			189,224
Members’ and partners’ equity		741,275			564,280			201,809			155,245
Total liabilities and members’/partners’ equity	$	3,938,049		$	3,240,578		$	1,544,178		$	1,310,576

26

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Investments in and Advances to Affiliates (continued)

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Three Months Ended July 31,	2006			2005			2006			2005
	(in thousands)
Operations:
Revenues	$	166,524		$	157,765		$	75,331		$	74,621
Equity in earnings of unconsolidated entities on a pro-rata basis		—			—			1,921			2,497
Operating expenses		(110,211	)		(96,667	)		(49,221	)		(45,737	)
Interest expense including early extinguishment of debt		(33,820	)		(39,602	)		(14,101	)		(13,507	)
Provision for decline in real estate		(1,000	)		—			(400	)		—
Depreciation and amortization		(23,811	)		(18,391	)		(15,147	)		(8,321	)
Interest income		3,679			4,463			265			327
Gain on disposition of rental properties (2)		15,325			—			7,662			—
Net earnings (pre-tax)	$	16,686		$	7,568		$	6,310		$	9,880

	Combined (100%)						Pro-Rata Share
	(GAAP)						(Non-GAAP)
Six Months Ended July 31,	2006			2005			2006			2005
	(in thousands)
Operations:
Revenues	$	334,212		$	329,255		$	145,108		$	150,046
Equity in earnings of unconsolidated entities on a pro-rata basis		—			—			7,980			4,546
Operating expenses		(233,635	)		(203,260	)		(97,636	)		(93,015	)
Interest expense including early extinguishment of debt		(66,325	)		(65,926	)		(27,792	)		(26,438	)
Provision for decline in real estate		(1,000	)		(704	)		(400	)		(704	)
Depreciation and amortization		(61,286	)		(58,255	)		(28,591	)		(23,463	)
Interest income		6,727			6,950			358			447
Gain on disposition of rental properties (2)		15,325			81,708			7,662			18,497
Net earnings (loss) (pre-tax)	$	(5,982	)	$	89,768		$	6,689		$	29,916

(2) The following table shows the detail of gain on disposition of rental properties that were held by equity method investments:

		Combined (100%)				Pro-Rata Share				Combined (100%)				Pro-Rata Share
		(GAAP)				(non-GAAP)				(GAAP)				(non-GAAP)
		Three Months Ended July 31,								Six Months Ended July 31,
		2006		2005		2006		2005		2006		2005		2006		2005
		(in thousands)								(in thousands)
Midtown Plaza (Specialty Retail Center)	(Parma, Ohio)	$	15,325	$	—	$	7,662	$	—	$	15,325	$	—	$	7,662	$	—
Showcase (Specialty Retail Center)	(Las Vegas, Nevada)		—		—		—		—		—		71,005		—		13,146
Colony Place (Apartments)	(Fort Myers, Florida)		—		—		—		—		—		10,703		—		5,351
Total gain on disposition of equity method rental properties			15,325	$	—	$	7,662	$	—	$	15,325	$	81,708	$	7,662	$	18,497

27

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate and Related Nonrecourse Mortgage Debt

	July 31, 2006
			Less				Nonrecourse
			Accumulated				Mortgage
	Total Cost		Depreciation		Net Cost		Debt
	(in thousands)
Full consolidation:
Completed rental properties
Residential	$	1,645,456	$	200,163	$	1,445,293	$	1,180,674
Commercial
Retail centers		2,244,291		300,461		1,943,830		1,864,386
Office and other buildings		2,273,718		530,093		1,743,625		1,620,590
Corporate and other equipment		9,209		5,024		4,185		—
		6,172,674		1,035,741		5,136,933		4,665,650
Projects under development
Residential
Under construction		102,987		—		102,987		65,000
In development		179,395		—		179,395		56,598
Commercial
Retail centers
Under construction		217,854		—		217,854		99,719
In development		122,969		—		122,969		—
Office and other buildings
Under construction		90,009		—		90,009		34,465
In development		293,285		—		293,285		113,924
		1,006,499		—		1,006,499		369,706
Land held for development or sale		139,602		—		139,602		37,892
Total real estate and mortgage debt	$	7,318,775	$	1,035,741	$	6,283,034	$	5,073,248
Less minority interest:
Completed rental properties
Residential	$	66,914	$	7,107	$	59,807	$	55,080
Commercial
Retail centers		218,690		28,211		190,479		212,373
Office and other buildings		384,437		107,676		276,761		253,470
Corporate and other equipment		—		—		—		—
		670,041		142,994		527,047		520,923
Projects under development
Residential
Under construction		549		—		549		—
In development		—		—		—		—
Commercial
Retail centers
Under construction		5,458		—		5,458		6,401
In development		—		—		—		—
Office and other buildings
Under construction		3,922		—		3,922		—
In development		105,390		—		105,390		47,180
		115,319		—		115,319		53,581
Land held for development or sale		4,617		—		4,617		442
Total real estate and mortgage debt	$	789,977	$	142,994	$	646,983	$	574,946

28

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Real Estate and Related Nonrecourse Mortgage Debt (continued)

	July 31, 2006
			Less				Nonrecourse
			Accumulated				Mortgage
	Total Cost		Depreciation		Net Cost		Debt
	(in thousands)
Plus unconsolidated investments at pro-rata:
Completed rental properties
Residential	$	633,709	$	182,399	$	451,310	$	530,468
Commercial
Retail centers		176,792		46,189		130,603		163,062
Office and other buildings		160,927		60,281		100,646		100,891
Corporate and other equipment		1		—		1		—
		971,429		288,869		682,560		794,421
Projects under development
Residential
Under construction		130,409		—		130,409		145,663
In development		5,966		—		5,966		—
Commercial
Retail centers
Under construction		209,489		—		209,489		101,253
In development		45,199		—		45,199		7,093
Office and other buildings
Under construction		90,915		—		90,915		9,778
In development		24,738		—		24,738		8,651
		506,716		—		506,716		272,438
Land held for development or sale		109,806		—		109,806		60,912
Total real estate and mortgage debt	$	1,587,951	$	288,869	$	1,299,082	$	1,127,771
Pro-rata consolidation (non-GAAP):
Completed rental properties
Residential	$	2,212,251	$	375,455	$	1,836,796	$	1,656,062
Commercial
Retail centers		2,202,393		318,439		1,883,954		1,815,075
Office and other buildings		2,050,208		482,698		1,567,510		1,468,011
Corporate and other equipment		9,210		5,024		4,186		—
		6,474,062		1,181,616		5,292,446		4,939,148
Projects under development
Residential
Under construction		232,847		—		232,847		210,663
In development		185,361		—		185,361		56,598
Commercial
Retail centers
Under construction		421,885		—		421,885		194,571
In development		168,168		—		168,168		7,093
Office and other buildings
Under construction		177,002		—		177,002		44,243
In development		212,633		—		212,633		75,395
		1,397,896		—		1,397,896		588,563
Land held for development or sale		244,791		—		244,791		98,362
Total real estate and mortgage debt	$	8,116,749	$	1,181,616	$	6,935,133	$	5,626,073

29

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Results of Operations

Net Earnings — Net earnings for the three months ended July 31, 2006 were $7,492,000 versus $20,164,000 for the three months ended July 31, 2005. Although we have substantial recurring revenue sources from our properties, we are a transactional-based business, which could create substantial variances in net earnings between periods. This variance to the prior year is primarily attributable to the following decreases, which are net of tax and minority interest:

• $10,000,000 related to the one-time reduction of deferred income taxes which resulted from a favorable change in our effective tax rate due to a change in the rate in the State of Ohio during the three months ended July 31, 2005;

• Decrease of $7,312,000 ($11,120,000, pre-tax) primarily related to outlot land sales reported in the Commercial Group, which is made up of a decrease of $8,316,000, pre-tax, for our consolidated properties primarily at Simi Valley in California and a decrease of $2,804,000, pre-tax, primarily at Galleria at Sunset in Henderson, Nevada, an equity method property;

• $3,908,000 ($6,370,000, pre-tax) related to the fair market value adjustments of certain of our 10-year forward swaps which were marked to market through earnings during the three months ended July 31, 2006 as a result of the derivatives not qualifying for hedge accounting;

• Decrease of $2,397,000 ($3,905,000, pre-tax) related to our development fee revenue at Twelve MetroTech Center in Brooklyn, New York that did not recur;

• Decrease of $1,903,000 ($2,264,000, pre-tax) related to earnings reported in the Land Development Group primarily due to a decrease in land sales at Thornbury in Solon, Ohio and Suncoast Lakes in Pasco County, Florida, partially offset by an increase in land sales at Stapleton in Denver, Colorado; and

• Decrease of $759,000 ($1,004,000, pre-tax) related to the expensing of stock options upon our adoption of Statement of Financial Accounting Standards (“SFAS”) No. 123 (Revised), “Share-Based Payment” (“SFAS No. 123(R)”), on February 1, 2006.

These decreases were partially offset by the following increases, net of tax and minority interest:

• $4,700,000 ($7,662,000, pre-tax) related to the 2006 gain on disposition of one equity method Commercial property, Midtown Plaza, a specialty retail center located in Parma, Ohio;

• $6,158,000 ($10,035,000, pre-tax) primarily related to the 2006 gain on disposition of Providence at Palm Harbor, a consolidated apartment community located in Tampa, Florida; and

• $1,856,000 ($3,025,000, pre-tax) related to the prior year write-off of a portion of our enterprise resource planning project that did not recur.

Net earnings for the six months ended July 31, 2006 were $60,750,000 versus $42,380,000 for the six months ended July 31, 2005. This variance to the prior year is primarily attributable to the following increases, which are net of tax and minority interest:

• $52,361,000 ($85,333,000, pre tax) related to the 2006 gains on disposition of three consolidated properties, Providence at Palm Harbor, Hilton Times Square, a 444-room hotel located in Manhattan, New York, and G Street, a specialty retail center located in Philadelphia, Pennsylvania;

• $5,520,000 ($8,838,000, pre-tax) related to income recognition on the sale of State of Rhode Island Historical Preservation Tax Credits for Ashton Mill, an apartment community located in Cumberland, Rhode Island;

• $4,700,000 ($7,662,000, pre-tax) related to the 2006 gain on disposition of one equity method Commercial property, Midtown Plaza; and

• $1,856,000 ($3,025,000, pre-tax) related to the prior year write-off of a portion of our enterprise resource planning project that did not recur.

30

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

These increases were partially offset by the following decreases, net of tax and minority interest:

• Decrease of $12,039,000 ($19,085,000, pre-tax) related to decreases in Commercial Group sales of land, outlots, and development projects. These decreases are made up of $7,008,000, pre-tax, related to a 2005 land sale at Twelve MetroTech Center, $4,886,000, pre-tax, in outlot land sales for our consolidated properties primarily at Simi Valley, $4,387,000, pre-tax, related to 2005 sales of development projects primarily in Las Vegas, Nevada and $2,804,000, pre-tax, in outlot land sales primarily at Galleria at Sunset, an equity method property;

• $11,349,000 ($18,497,000, pre-tax) related to the 2005 gains on disposition of two equity method properties, Showcase, a specialty retail center located in Las Vegas, Nevada and Colony Place, an apartment community located in Fort Myers, Florida;

• $10,000,000 related to the one-time reduction of deferred income taxes which resulted from a favorable change in our effective tax rate due to a change in the rate in the State of Ohio during the six months ended July 31, 2005;

• Decrease of $6,129,000 ($9,118,000, pre-tax) related to earnings reported in the Land Development Group primarily due to a decrease in land sales at Stapleton, Thornbury, and Suncoast Lakes partially offset by an increase in land sales at Tangerine Crossing in Tucson, Arizona;

• $3,908,000 ($6,370,000, pre-tax) related to the fair market value adjustments of certain of our 10-year forward swaps which were marked to market through earnings during the six months ended July 31, 2006 as a result of the derivatives not qualifying for hedge accounting;

• Decrease of $2,284,000 ($3,722,000, pre-tax) related to our development fee revenue at Twelve MetroTech Center that did not recur; and

• Decrease of $1,954,000 ($2,729,000, pre-tax) related to the expensing of stock options upon our adoption of SFAS No. 123(R) on February 1, 2006.

Net Operating Income (NOI) from Real Estate Groups — NOI, a non-GAAP measure, is defined as revenues (excluding straight-line rent adjustments) less operating expenses (including depreciation and amortization for non-real estate groups) plus interest income plus equity in earnings of unconsolidated entities (excluding gain on disposition of equity method operating properties) plus equity method depreciation and amortization. We believe NOI provides us, as well as our investors, additional information about our core business operations and, along with earnings, is necessary to understand our business and operating results. Under the full consolidation method (GAAP), NOI from the combination of the Commercial Group and the Residential Group (“Real Estate Groups”) for the three months ended July 31, 2006 was $120,287,000 compared to $128,104,000 for the three months ended July 31, 2005, a 6.1% decrease. NOI for the six months ended July 31, 2006 was $257,954,000 compared to $259,235,000 for the six months ended July 31, 2005, a 0.5% decrease. A reconciliation of NOI to the most comparable GAAP measure, net earnings, is presented on pages 6-7. A reconciliation of NOI to net earnings for each strategic business unit can be found on pages 35-46.

Management also analyzes property NOI using the pro-rata consolidation method because it provides operating data at our ownership share, and we publicly disclose and discuss our performance using this method of consolidation to complement our GAAP disclosures. Under the pro-rata consolidation method, NOI from the combination of the Commercial Group and the Residential Group for the three months ended July 31, 2006 was $127,348,000 compared to $134,819,000 for the three months ended July 31, 2005, a 5.5% decrease. NOI for the six months ended July 31, 2006 was $265,907,000 compared to $269,820,000 for the six months ended July 31, 2005, a 1.5% decrease. Comparable NOI increased 5.5% for the six months ended July 31, 2006 compared to the prior year. Comparable NOI for our retail portfolio is up 5.8% from the prior year and our residential portfolio has generated an increase of 7.4%.

31

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

EBDT — We use an additional measure, along with net earnings, to report our operating results. This non-GAAP measure, referred to as Earnings Before Depreciation, Amortization and Deferred Taxes (“EBDT”), is not a measure of operating results or cash flows from operations as defined by GAAP and may not be directly comparable to similarly-titled measures reported by other companies.

We believe that EBDT provides additional information about our core operations and, along with net earnings, is necessary to understand our operating results. EBDT is used by the chief operating decision maker and management in assessing operating performance and to consider capital requirements and allocation of resources by segment and on a consolidated basis. We believe EBDT is important to investors because it provides another method for the investor to measure our long-term operating performance as net earnings can vary from year to year due to property dispositions, acquisitions and other factors that have a short-term impact.

EBDT is defined as net earnings excluding the following items: i) gain (loss) on disposition of rental properties, divisions and other investments (net of tax); ii) the adjustment to recognize rental revenues and rental expense using the straight-line method; iii) non-cash charges from real estate operations of Forest City Rental Properties Corporation, a wholly-owned subsidiary of Forest City Enterprises, Inc., for depreciation, amortization, amortization of mortgage procurement costs and deferred income taxes; iv) provision for decline in real estate (net of tax); v) extraordinary items (net of tax); and vi) cumulative effect of change in accounting principle (net of tax). Unlike the real estate segments, EBDT for the Nets segment equals net earnings.

EBDT is reconciled to net earnings, the most comparable financial measure calculated in accordance with GAAP, below. The adjustment to recognize rental revenues and rental expenses on the straight-line method is excluded because it is management’s opinion that rental revenues and expenses should be recognized when due from the tenants or due to the landlord. We exclude depreciation and amortization expense related to real estate operations from EBDT because we believe the values of our properties, in general, have appreciated over time in excess of their original cost. Deferred taxes from real estate operations, which are the result of timing differences of certain net expense items deducted in a future year for federal income tax purposes, are excluded until the year in which they are reflected in our current tax provision. The provision for decline in real estate is excluded from EBDT because it varies from year to year based on factors unrelated to our overall financial performance and is related to the ultimate gain on dispositions of operating properties. Our EBDT may not be directly comparable to similarly-titled measures reported by other companies.

Our EBDT for the three months ended July 31, 2006 decreased by 12.7% to $56,665,000 from $64,927,000 for the three months ended July 31, 2005. This variance to the prior year is primarily attributable to decreased outlot land sales reported in the Commercial Group of $11,964,000 primarily at Simi Valley in California and Galleria at Sunset in Henderson, Nevada; the fair market value adjustments of $6,370,000 for 10-year forward-swaps which were marked to market; and increased stock-based compensation expense of $853,000 as a result of our adoption on of Statement of Financial Accounting Standards (“SFAS”) No. 123 (Revised), “Share-Based Payment” (“SFAS No. 123(R)”), on February 1, 2006. These decreases were partially offset by approximately $11,000,000 of additional EBDT from operating activity in our Real Estate Groups.

Our EBDT for the six months ended July 31, 2006 decreased by 9.5% to $120,004,000 from $132,589,000 for the six months ended July 31, 2005. This variance to the prior year is primarily attributable to decreased EBDT of $7,268,000 reported in the Land Development Group; decreased outlot land sales of $10,008,000 in Commercial Group primarily at Simi Valley and Galleria at Sunset; a decrease of $5,360,000 related to a 2005 land sale at Twelve MetroTech Center and a decrease of $3,926,000 primarily related to a 2005 sale of a development project in Las Vegas, Nevada, both of which did not recur; the fair market value adjustments of $6,370,000 for 10-year forward-swaps which were marked to market; and a decrease of $2,107,000 related to increased stock-based compensation expense as a result of our adoption of SFAS No. 123(R) on February 1, 2006. These decreases were partially offset by $5,520,000 related to income recognition on the sale of State of Rhode Island Historical Preservation Tax Credits for Ashton Mill, an apartment community located in Cumberland, Rhode Island, as well as EBDT increases of approximately $17,000,000 from operating activity in our Real Estate Groups.

Stock-Based Compensation — We adopted SFAS No. 123 (Revised), “Share-Based Payment” (“SFAS No. 123(R)”) on February 1, 2006 which required the recognition of additional compensation costs related to the estimated fair value of our employee stock options. Previously, we did not expense stock options. We have and will continue to expense restricted stock consistent with prior quarters because the accounting treatment remains substantially the same under SFAS No. 123(R). The adoption of this standard lowered net earnings and EBDT by $759,000 and $853,000, respectively, for the three months ended July 31, 2006, and $1,954,000 and $2,107,000, respectively, for the six months ended July 31, 2006. Diluted net earnings per share and EBDT per share were lower by $0.01 for the three months ended July 31, 2006 and were lower by $0.02 for the six months ended July 31, 2006 due to SFAS No. 123(R).

32

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of EBDT - The information in the tables on pages 35-46 present amounts for both full consolidation and pro-rata consolidation, providing a reconciliation of the difference between the two methods, as well as reconciliation from NOI to EBDT to net earnings. Under the pro-rata consolidation method, we present our partnership investments proportionate to our pro-rata share for each line item of our consolidated financial statements. Under full consolidation, partnership assets and liabilities are reported as consolidated at 100% if deemed under our control or if we are deemed to be the primary beneficiary for investments in the VIEs, or on the equity method of accounting if we do not have control or are not the primary beneficiary for investments in VIEs.

Reconciliation of Net Earnings to Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) ⁽²⁾

	Three Months Ended July 31,						Six Months Ended July 31,
	2006			2005			2006			2005
	(in thousands)						(in thousands)
Net earnings	$	7,492		$	20,164		$	60,750		$	42,380
Depreciation and amortization — Real Estate Groups (4)		54,385			45,965			101,585			92,237
Amortization of mortgage procurement costs — Real Estate Groups (4)		2,446			2,902			5,355			5,633
Deferred income tax expense — Real Estate Groups (5)		6,959			(2,998	)		43,389			4,986
Deferred income tax expense — Non Real-Estate Groups: (5)
Gain on disposition of other investments		—			(4	)		—			174
Current income tax expense on non-operating earnings: (5)
Gain on disposition of other investments		—			(2	)		—			60
Gain on disposition included in discontinued operations		—			—			(29	)		—
Gain on disposition of equity method rental properties		2,657			(187	)		2,657			7,927
Straight-line rent adjustment (3)		(1,900	)		(1,987	)		(3,031	)		(4,983	)
Provision for decline in real estate, net of minority interest		1,923			1,074			1,923			2,574
Provision for decline in real estate of equity method rental properties		400			—			400			704
Gain on disposition of equity method rental properties		(7,662	)		—			(7,662	)		(18,497	)
Gain on disposition of other investments		—			—			—			(606	)
Discontinued operations: (1)
Gain on disposition of rental properties		(7,342	)		—			(143,726	)		—
Minority interest — Gain on disposition		(2,693	)		—			58,393			—
Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) (2)	$	56,665		$	64,927		$	120,004		$	132,589

(1)	Pursuant to the definition of a component of an entity of SFAS No. 144, assuming no significant continuing involvement, all earnings of properties and a division which have been sold or held for sale are reported as discontinued operations.
(2)	The Company uses an additional measure, along with net earnings, to report its operating results. This measure, referred to as Earnings Before Depreciation, Amortization and Deferred Taxes (“EBDT”), is not a measure of operating results as defined by generally accepted accounting principles and may not be directly comparable to similarly-titled measures reported by other companies. The Company believes that EBDT provides additional information about its operations, and along with net earnings, is necessary to understand its operating results. EBDT is defined as net earnings excluding the following items: i) gain (loss) on disposition of operating properties, divisions and other investments (net of tax); ii) the adjustment to recognize rental revenues and rental expense using the straight-line method; iii) noncash charges from Forest City Rental Properties Corporation, a wholly-owned subsidiary of Forest City Enterprises, Inc., for depreciation, amortization (including amortization of mortgage procurement costs) and deferred income taxes; iv) provision for decline in real estate (net of tax); v) extraordinary items (net of tax); and vi) cumulative effect of change in accounting principle (net of tax).
(3)	The Company recognizes minimum rents on a straight-line basis over the term of the related lease pursuant to the provision of SFAS No. 13, “Accounting for Leases.” The straight-line rent adjustment is recorded as an increase or decrease to revenue from Forest City Rental Properties Corporation, a wholly-owned subsidiary of Forest City Enterprises, Inc., with the applicable offset to either accounts receivable or accounts payable, as appropriate.
(4)	The following table provides detail of depreciation and amortization and amortization of mortgage procurement costs. The Company’s Real Estate Groups are owned by Forest City Rental Properties Corporation, a wholly-owned subsidiary engaged in the ownership, development, acquisition and management of real estate projects, including apartment complexes, regional malls and retail centers, hotels, office buildings and mixed-use facilities, as well as large land development projects.

	Depreciation and Amortization												Amortization of Mortgage Procurement Costs
	Three Months Ended July 31,						Six Months Ended July 31,						Three Months Ended July 31,						Six Months Ended July 31,
	2006			2005			2006			2005			2006			2005			2006			2005
Full Consolidation	$	43,564		$	39,825		$	85,787		$	80,231		$	2,511		$	2,562		$	5,474		$	4,876
Non-Real Estate Groups		(347	)		(279	)		(696	)		(538	)		(98	)		(134	)		(190	)		(202	)
Real Estate Groups Full Consolidation		43,217			39,546			85,091			79,693			2,413			2,428			5,284			4,674
Real Estate Groups related to minority interest		(3,738	)		(4,049	)		(7,009	)		(8,880	)		(292	)		(339	)		(600	)		(665	)
Real Estate Groups Equity Method		13,384			6,356			20,202			13,531			278			304			567			603
Real Estate Groups Discontinued Operations		1,522			4,112			3,301			7,893			47			509			104			1,021
Real Estate Groups Pro-Rata Consolidation	$	54,385		$	45,965		$	101,585		$	92,237		$	2,446		$	2,902		$	5,355		$	5,633

33

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Reconciliation of Net Earnings to Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) ⁽²⁾ (continued)

(5) The following table provides detail of Income Tax Expense (Benefit):

			Three Months Ended July 31,						Six Months Ended July 31,
			2006			2005			2006			2005
			(in thousands)						(in thousands)
(A	)	Operating earnings
		Current	$	(7,774	)	$	251		$	(8,005	)	$	661
		Deferred		2,445			(2,768	)		10,079			7,007
				(5,329	)		(2,517	)		2,074			7,668
(B	)	Provision for decline in real estate
		Deferred		(743	)		(402	)		(743	)		(995	)
		Deferred-Equity method investment		(155	)		7			(155	)		(272	)
				(898	)		(395	)		(898	)		(1,267	)
(C	)	Gain on disposition of other investments
		Current — Non-Real Estate Groups		—			(2	)		—			60
		Deferred — Real Estate Groups		—			(4	)		—			174
				—			(6	)		—			234
(D	)	Gain on disposition of equity method rental properties
		Current		2,657			(187	)		2,657			7,927
		Deferred		305			19			305			(779	)
				2,962			(168	)		2,962			7,148
		Subtotal (A) (B) (C) (D)
		Current		(5,117	)		62			(5,348	)		8,648
		Deferred		1,852			(3,148	)		9,486			5,135
		Income tax expense		(3,265	)		(3,086	)		4,138			13,783
(E	)	Discontinued operations — Rental Properties Operating earnings
		Current		662			(1,668	)		(137	)		(3,976	)
		Deferred		445			978			450			1,854
				1,107			(690	)		313			(2,122	)
		Gain on disposition of rental properties
		Current		—			—			(29	)		—
		Deferred		3,877			—			33,001			—
				3,877			—			32,972			—
				4,984			(690	)		33,285			(2,122	)
		Grand Total (A) (B) (C) (D) (E)
		Current		(4,455	)		(1,606	)		(5,514	)		4,672
		Deferred		6,174			(2,170	)		42,937			6,989
			$	1,719		$	(3,776	)	$	37,423		$	11,661
		Recap of Grand Total:
		Real Estate Groups
		Current		1,134			1,246			2,445			12,424
		Deferred		6,959			(2,998	)		43,389			4,986
				8,093			(1,752	)		45,834			17,410
		Non-Real Estate Groups
		Current		(5,589	)		(2,852	)		(7,959	)		(7,752	)
		Deferred		(785	)		828			(452	)		2,003
				(6,374	)		(2,024	)		(8,411	)		(5,749	)
		Grand Total	$	1,719		$	(3,776	)	$	37,423		$	11,661

34

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 2006 (in thousands)

	Commercial Group 2006														Residential Group 2006
						Plus														Plus
	Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	181,142		$	21,000	$	24,947		$	14,634		$	199,723		$	63,039		$	2,314	$	31,319		$	310		$	92,354
Exclude straight-line rent adjustment		(3,369	)		—		—			(15	)		(3,384	)		(8	)		—		—			—			(8	)
Adjusted revenues		177,773			21,000		24,947			14,619			196,339			63,031			2,314		31,319			310			92,346
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		93,147			10,607		14,247			8,715			105,502			42,841			1,561		18,075			260			59,615
Exclude straight-line rent adjustment		(1,186	)		—		—			(306	)		(1,492	)		—			—		—			—			—
Adjusted operating expenses		91,961			10,607		14,247			8,409			104,010			42,841			1,561		18,075			260			59,615
Add interest and other income		2,374			814		(47	)		84			1,597			1,424			28		210			5			1,611
Add equity in earnings of unconsolidated entities		9,902			—		(10,315	)		—			(413	)		(5,815	)		—		5,308			—			(507	)
Remove gain on disposition of equity method rental properties		(7,662	)		—		7,662			—			—			—			—		—			—			—
Add back provision for decline in real estate of equity method rental properties		400			—		(400	)		—			—			—			—		—			—			—
Add back equity method depreciation and amortization expense		2,796			—		(2,796	)		—			—			10,866			—		(10,866	)		—			—
Net operating income		93,622			11,207		4,804			6,294			93,513			26,665			781		7,896			55			33,835
Interest expense, including early extinguishment of debt		44,726			5,948		4,804			1,554			45,136			14,813			775		7,896			71			22,005
Income tax expense (benefit)		2,377			—		—			812			3,189			(1,897	)		—		—			(150	)		(2,047	)
Minority interest in earnings before depreciation and amortization		5,259			5,259		—			—			—			6			6		—			—			—
Add: EBDT from discontinued operations		3,928			—		—			(3,928	)		—			134			—		—			(134	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	45,188		$	—	$	—		$	—		$	45,188		$	13,877		$	—	$	—		$	—		$	13,877
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	45,188		$	—	$	—		$	—		$	45,188		$	13,877		$	—	$	—		$	—		$	13,877
Depreciation and amortization — Real Estate Groups		(30,336	)		—		—			(1,480	)		(31,816	)		(22,484	)		—		—			(42	)		(22,526	)
Amortization of mortgage procurement costs — Real Estate Groups		(1,751	)		—		—			(46	)		(1,797	)		(648	)		—		—			(1	)		(649	)
Deferred taxes — Real Estate Groups		(4,927	)		—		—			(318	)		(5,245	)		2,098			—		—			(127	)		1,971
Straight-line rent adjustment		2,183			—		—			(291	)		1,892			8			—		—			—			8
Gain on disposition of rental properties, net of tax		—			—		4,700			1,652			6,352			—			—		—			4,506			4,506
Provision for decline in real estate, net of tax and minority interest		(1,180	)		—		(245	)		—			(1,425	)		—			—		—			—			—
Gain on disposition of equity method rental properties, net of tax		4,700			—		(4,700	)		—			—			—			—		—			—			—
Provision for decline in real estate of equity method rental properties, net of tax		(245	)		—		245			—			—			—			—		—			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		(1,480	)		—		—			1,480			—			(42	)		—		—			42			—
Amortization of mortgage procurement costs — Real Estate Groups		(46	)		—		—			46			—			(1	)		—		—			1			—
Deferred taxes — Real Estate Groups		(318	)		—		—			318			—			(127	)		—		—			127			—
Straight-line rent adjustment		(291	)		—		—			291			—			—			—		—			—			—
Gain on disposition of rental properties		1,652			—		—			(1,652	)		—			4,506			—		—			(4,506	)		—
Net earnings	$	13,149		$	—	$	—		$	—		$	13,149		$	(2,813	)	$	—	$	—		$	—		$	(2,813	)

35

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 2006 (in thousands) (continued)

	Land Development Group 2006													The Nets 2006
						Plus													Plus
	Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
	Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
	(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations	$	22,094		$	2,003	$	12,774		$	—	$	32,865		$	—		$	—	$	6,291	$	—	$	6,291
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted revenues		22,094			2,003		12,774			—		32,865			—			—		6,291		—		6,291
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		12,632			967		9,317			—		20,982			—			—		9,067		—		9,067
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses		12,632			967		9,317			—		20,982			—			—		9,067		—		9,067
Add interest and other income		4,066			398		59			—		3,727			—			—		43		—		43
Add equity in earnings of unconsolidated entities		6,264			—		(3,411	)		—		2,853			(4,041	)		—		4,029		—		(12	)
Remove gain on disposition of equity method rental properties		—			—		—			—		—			—			—		—		—		—
Add back provision for decline in real estate of equity method rental properties		—			—		—			—		—			—			—		—		—		—
Add back equity method depreciation and amortization expense		—			—		—			—		—			—			—		—		—		—
Net operating income		19,792			1,434		105			—		18,463			(4,041	)		—		1,296		—		(2,745	)
Interest expense, including early extinguishment of debt		2,643			189		105			—		2,559			—			—		1,296		—		1,296
Income tax expense (benefit)		5,323			—		—			—		5,323			(1,840	)		—		—		—		(1,840	)
Minority interest in earnings before depreciation and amortization		1,245			1,245		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	10,581		$	—	$	—		$	—	$	10,581		$	(2,201	)	$	—	$	—	$	—	$	(2,201	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	10,581		$	—	$	—		$	—	$	10,581		$	(2,201	)	$	—	$	—	$	—	$	(2,201	)
Depreciation and amortization — Real Estate Groups		(43	)		—		—			—		(43	)		—			—		—		—		—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes — Real Estate Groups		(784	)		—		—			—		(784	)		—			—		—		—		—
Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Gain on disposition of rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate, net of tax and minority interest		—			—		—			—		—			—			—		—		—		—
Gain on disposition of equity method rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate of equity method rental properties, net of tax
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Gain on disposition of rental properties		—			—		—			—		—			—			—		—		—		—
Net earnings	$	9,754		$	—	$	—		$	—	$	9,754		$	(2,201	)	$	—	$	—	$	—	$	(2,201	)

36

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 2006 (in thousands) (continued)

	Corporate Activities 2006												Total 2006
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	—		$	—	$	—	$	—	$	—		$	266,275		$	25,317	$	75,331		$	14,944		$	331,233
Exclude straight-line rent adjustment		—			—		—		—		—			(3,377	)		—		—			(15	)		(3,392	)
Adjusted revenues		—			—		—		—		—			262,898			25,317		75,331			14,929			327,841
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		10,822			—		—		—		10,822			159,442			13,135		50,706			8,975			205,988
Exclude straight-line rent adjustment		—			—		—		—		—			(1,186	)		—		—			(306	)		(1,492	)
Adjusted operating expenses		10,822			—		—		—		10,822			158,256			13,135		50,706			8,669			204,496
Add interest and other income		127			—		—		—		127			7,991			1,240		265			89			7,105
Add equity in earnings of unconsolidated entities		—			—		—		—		—			6,310			—		(4,389	)		—			1,921
Remove gain on disposition of equity method rental properties		—			—		—		—		—			(7,662	)		—		7,662			—			—
Add back provision for decline in real estate of equity method rental properties		—			—		—		—		—			400			—		(400	)		—			—
Add back equity method depreciation and amortization expense		—			—		—		—		—			13,662			—		(13,662	)		—			—
Net operating income		(10,695	)		—		—		—		(10,695	)		125,343			13,422		14,101			6,349			132,371
Interest expense, including early extinguishment of debt		12,607			—		—		—		12,607			74,789			6,912		14,101			1,625			83,603
Income tax expense (benefit)		(12,522	)		—		—		—		(12,522	)		(8,559	)		—		—			662			(7,897	)
Minority interest in earnings before depreciation and amortization		—			—		—		—		—			6,510			6,510		—			—			—
Add: EBDT from discontinued operations		—			—		—		—		—			4,062			—		—			(4,062	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(10,780	)	$	—	$	—	$	—	$	(10,780	)	$	56,665		$	—	$	—		$	—		$	56,665
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(10,780	)	$	—	$	—	$	—	$	(10,780	)	$	56,665		$	—	$	—		$	—		$	56,665
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(52,863	)		—		—			(1,522	)		(54,385	)
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(2,399	)		—		—			(47	)		(2,446	)
Deferred taxes — Real Estate Groups		383			—		—		—		383			(3,230	)		—		—			(445	)		(3,675	)
Straight-line rent adjustment		—			—		—		—		—			2,191			—		—			(291	)		1,900
Gain on disposition of rental properties, net of tax		—			—		—		—		—			—			—		4,700			6,158			10,858
Provision for decline in real estate, net of tax and minority interest		—			—		—		—		—			(1,180	)		—		(245	)		—			(1,425	)
Gain on disposition of equity method rental properties, net of tax		—			—		—		—		—			4,700			—		(4,700	)		—			—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—		—		—			(245	)		—		245			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(1,522	)		—		—			1,522			—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(47	)		—		—			47			—
Deferred taxes — Real Estate Groups		—			—		—		—		—			(445	)		—		—			445			—
Straight-line rent adjustment		—			—		—		—		—			(291	)		—		—			291			—
Gain on disposition of rental properties		—			—		—		—		—			6,158			—		—			(6,158	)		—
Net earnings	$	(10,397	)	$	—	$	—	$	—	$	(10,397	)	$	7,492		$	—	$	—		$	—		$	7,492

37

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 2006 (in thousands)

	Commercial Group 2006														Residential Group 2006
						Plus														Plus
	Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	377,481		$	44,160	$	47,596		$	30,380		$	411,297		$	122,361		$	4,558	$	62,116		$	900		$	180,819
Exclude straight-line rent adjustment		(6,053	)		—		—			(31	)		(6,084	)		(19	)		—		—			—			(19	)
Adjusted revenues		371,428			44,160		47,596			30,349			405,213			122,342			4,558		62,116			900			180,800
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		191,879			21,125		27,589			23,023			221,366			80,656			2,900		35,913			669			114,338
Exclude straight-line rent adjustment		(2,353	)		—		—			(718	)		(3,071	)		—			—		—			—			—
Adjusted operating expenses		189,526			21,125		27,589			22,305			218,295			80,656			2,900		35,913			669			114,338
Add interest and other income		3,259			1,124		(156	)		533			2,512			11,356			16		321			7			11,668
Add equity in earnings of unconsolidated entities		11,420			—		(12,198	)		—			(778	)		(5,176	)		—		4,301			—			(875	)
Remove gain on disposition of equity method rental properties		(7,662	)		—		7,662			—			—			—			—		—			—			—
Add back provision for decline in real estate of equity method rental properties		400			—		(400	)		—			—			—			—		—			—			—
Add back equity method depreciation and amortization expense		5,602			—		(5,602	)		—			—			15,167			—		(15,167	)		—			—
Net operating income		194,921			24,159		9,313			8,577			188,652			63,033			1,674		15,658			238			77,255
Interest expense, including early extinguishment of debt		88,900			11,825		9,313			3,651			90,039			28,081			1,517		15,658			262			42,484
Income tax expense (benefit)		4,768			—		—			60			4,828			(2,724	)		—		—			(197	)		(2,921	)
Minority interest in earnings before depreciation and amortization		12,334			12,334		—			—			—			157			157		—			—			—
Add: EBDT from discontinued operations		4,866			—		—			(4,866	)		—			173			—		—			(173	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	93,785		$	—	$	—		$	—		$	93,785		$	37,692		$	—	$	—		$	—		$	37,692
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	93,785		$	—	$	—		$	—		$	93,785		$	37,692		$	—	$	—		$	—		$	37,692
Depreciation and amortization — Real Estate Groups		(59,844	)		—		—			(3,159	)		(63,003	)		(38,366	)		—		—			(142	)		(38,508	)
Amortization of mortgage procurement costs — Real Estate Groups		(3,717	)		—		—			(100	)		(3,817	)		(1,534	)		—		—			(4	)		(1,538	)
Deferred taxes — Real Estate Groups		(11,509	)		—		—			(318	)		(11,827	)		(997	)		—		—			(132	)		(1,129	)
Straight-line rent adjustment		3,700			—		—			(687	)		3,013			19			—		—			—			19
Gain on disposition of rental properties and other investments, net of tax		—			—		4,700			47,855			52,555			—			—		—			4,506			4,506
Provision for decline in real estate, net of tax and minority interest		(1,180	)		—		(245	)		—			(1,425	)		—			—		—			—			—
Gain on disposition of equity method rental properties, net of tax		4,700			—		(4,700	)		—			—			—			—		—			—			—
Provision for decline in real estate of equity method rental properties, net of tax		(245	)		—		245			—			—			—			—		—			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		(3,159	)		—		—			3,159			—			(142	)		—		—			142			—
Amortization of mortgage procurement costs — Real Estate Groups		(100	)		—		—			100			—			(4	)		—		—			4			—
Deferred taxes — Real Estate Groups		(318	)		—		—			318			—			(132	)		—		—			132			—
Straight-line rent adjustment		(687	)		—		—			687			—			—			—		—			—			—
Gain on disposition of rental properties		47,855			—		—			(47,855	)		—			4,506			—		—			(4,506	)		—
Net earnings	$	69,281		$	—	$	—		$	—		$	69,281		$	1,042		$	—	$	—		$	—		$	1,042

38

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 2006 (in thousands) (continued)

	Land Development Group 2006													The Nets 2006
						Plus													Plus
	Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
	Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
	(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations	$	42,910		$	2,850	$	16,841		$	—	$	56,901		$	—		$	—	$	18,555	$	—	$	18,555
Exclude straight-line rent adjustment		1			—		—			—		1			—			—		—		—		—
Adjusted revenues		42,911			2,850		16,841			—		56,902			—			—		18,555		—		18,555
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		25,733			1,602		12,924			—		37,055			—			—		29,032		—		29,032
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses		25,733			1,602		12,924			—		37,055			—			—		29,032		—		29,032
Add interest and other income		7,612			731		81			—		6,962			—			—		112		—		112
Add equity in earnings of unconsolidated entities		13,187			—		(3,509	)		—		9,678			(12,742	)		—		12,697		—		(45	)
Remove gain on disposition of equity method rental properties		—			—		—			—		—			—			—		—		—		—
Add back provision for decline in real estate of equity method rental properties		—			—		—			—		—			—			—		—		—		—
Add back equity method depreciation and amortization expense		—			—		—			—		—			—			—		—		—		—
Net operating income		37,977			1,979		489			—		36,487			(12,742	)		—		2,332		—		(10,410	)
Interest expense, including early extinguishment of debt		4,472			318		489			—		4,643			—			—		2,332		—		2,332
Income tax expense (benefit)		14,413			—		—			—		14,413			(5,166	)		—		—		—		(5,166	)
Minority interest in earnings before depreciation and amortization		1,661			1,661		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	17,431		$	—	$	—		$	—	$	17,431		$	(7,576	)	$	—	$	—	$	—	$	(7,576	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	17,431		$	—	$	—		$	—	$	17,431		$	(7,576	)	$	—	$	—	$	—	$	(7,576	)
Depreciation and amortization — Real Estate Groups		(74	)		—		—			—		(74	)		—			—		—		—		—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes — Real Estate Groups		2,069			—		—			—		2,069			—			—		—		—		—
Straight-line rent adjustment		(1	)		—		—			—		(1	)		—			—		—		—		—
Gain on disposition of rental properties and other investments, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate, net of tax and minority interest		—			—		—			—		—			—			—		—		—		—
Gain on disposition of equity method rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Gain on disposition of rental properties		—			—		—			—		—			—			—		—		—		—
Net earnings	$	19,425		$	—	$	—		$	—	$	19,425		$	(7,576	)	$	—	$	—	$	—	$	(7,576	)

39

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 2006 (in thousands) (continued)

	Corporate Activities 2006												Total 2006
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	—		$	—	$	—	$	—	$	—		$	542,752		$	51,568	$	145,108		$	31,280		$	667,572
Exclude straight-line rent adjustment		—			—		—		—		—			(6,071	)		—		—			(31	)		(6,102	)
Adjusted revenues		—			—		—		—		—			536,681			51,568		145,108			31,249			661,470
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		18,950			—		—		—		18,950			317,218			25,627		105,458			23,692			420,741
Exclude straight-line rent adjustment		—			—		—		—		—			(2,353	)		—		—			(718	)		(3,071	)
Adjusted operating expenses		18,950			—		—		—		18,950			314,865			25,627		105,458			22,974			417,670
Add interest and other income		654			—		—		—		654			22,881			1,871		358			540			21,908
Add equity in earnings of unconsolidated entities		—			—		—		—		—			6,689			—		1,291			—			7,980
Remove gain on disposition of equity method rental properties		—			—		—		—		—			(7,662	)		—		7,662			—			—
Add back provision for decline in real estate of equity method rental properties		—			—		—		—		—			400			—		(400	)		—			—
Add back equity method depreciation and amortization expense		—			—		—		—		—			20,769			—		(20,769	)		—			—
Net operating income		(18,296	)		—		—		—		(18,296	)		264,893			27,812		27,792			8,815			273,688
Interest expense, including early extinguishment of debt		22,780			—		—		—		22,780			144,233			13,660		27,792			3,913			162,278
Income tax expense (benefit)		(19,748	)		—		—		—		(19,748	)		(8,457	)		—		—			(137	)		(8,594	)
Minority interest in earnings before depreciation and amortization		—			—		—		—		—			14,152			14,152		—			—			—
Add: EBDT from discontinued operations		—			—		—		—		—			5,039			—		—			(5,039	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(21,328	)	$	—	$	—	$	—	$	(21,328	)	$	120,004		$	—	$	—		$	—		$	120,004
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(21,328	)	$	—	$	—	$	—	$	(21,328	)	$	120,004		$	—	$	—		$	—		$	120,004
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(98,284	)		—		—			(3,301	)		(101,585	)
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(5,251	)		—		—			(104	)		(5,355	)
Deferred taxes — Real Estate Groups		(94	)		—		—		—		(94	)		(10,531	)		—		—			(450	)		(10,981	)
Straight-line rent adjustment		—			—		—		—		—			3,718			—		—			(687	)		3,031
Gain on disposition of rental properties and other investments, net of tax		—			—		—		—		—			—			—		4,700			52,361			57,061
Provision for decline in real estate, net of tax and minority interest		—			—		—		—		—			(1,180	)		—		(245	)		—			(1,425	)
Gain on disposition of equity method rental properties, net of tax		—			—		—		—		—			4,700			—		(4,700	)		—			—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—		—		—			(245	)		—		245			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(3,301	)		—		—			3,301			—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(104	)		—		—			104			—
Deferred taxes — Real Estate Groups		—			—		—		—		—			(450	)		—		—			450			—
Straight-line rent adjustment		—			—		—		—		—			(687	)		—		—			687			—
Gain on disposition of rental properties		—			—		—		—		—			52,361			—		—			(52,361	)		—
Net earnings	$	(21,422	)	$	—	$	—	$	—	$	(21,422	)	$	60,750		$	—	$	—		$	—		$	60,750

40

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 2005 (in thousands)

	Commercial Group 2005														Residential Group 2005
						Plus														Plus
	Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	207,294		$	23,208	$	28,299		$	23,241		$	235,626		$	51,927		$	3,626	$	30,289		$	4,345		$	82,935
Exclude straight-line rent adjustment		(3,799	)		—		—			(32	)		(3,831	)		9			—		—			—			9
Adjusted revenues		203,495			23,208		28,299			23,209			231,795			51,936			3,626		30,289			4,345			82,944
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		109,658			10,120		15,095			17,419			132,052			35,110			2,314		16,913			2,185			51,894
Exclude straight-line rent adjustment		(1,236	)		—		—			(599	)		(1,835	)		—			—		—			—			—
Adjusted operating expenses		108,422			10,120		15,095			16,820			130,217			35,110			2,314		16,913			2,185			51,894
Add interest and other income		853			125		(227	)		37			538			699			10		460			98			1,247
Add equity in earnings of unconsolidated entities		6,452			—		(6,075	)		—			377			1,541			—		(1,512	)		—			29
Add back equity method depreciation and amortization expense		2,469			—		(2,469	)		—			—			4,191			—		(4,191	)		—			—
Net operating income		104,847			13,213		4,433			6,426			102,493			23,257			1,322		8,133			2,258			32,326
Interest expense, including early extinguishment of debt		43,563			5,816		4,433			3,608			45,788			10,857			1,087		8,133			1,674			19,577
Income tax expense (benefit)		4,723			—		—			(1,449	)		3,274			(2,741	)		—		—			(219	)		(2,960	)
Minority interest in earnings before depreciation and amortization		7,397			7,397		—			—			—			235			235		—			—			—
Add: EBDT from discontinued operations		4,267			—		—			(4,267	)		—			803			—		—			(803	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	53,431		$	—	$	—		$	—		$	53,431		$	15,709		$	—	$	—		$	—		$	15,709
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	53,431		$	—	$	—		$	—		$	53,431		$	15,709		$	—	$	—		$	—		$	15,709
Depreciation and amortization — Real Estate Groups		(28,811	)		—		—			(3,030	)		(31,841	)		(12,988	)		—		—			(1,082	)		(14,070	)
Amortization of mortgage procurement costs — Real Estate Groups		(1,726	)		—		—			(475	)		(2,201	)		(667	)		—		—			(34	)		(701	)
Deferred taxes — Real Estate Groups		1,857			—		—			(964	)		893			1,174			—		—			(14	)		1,160
Straight-line rent adjustment		2,563			—		—			(567	)		1,996			(9	)		—		—			—			(9	)
Gain on disposition of rental properties, net of tax		—			—		119			—			119			—			—		49			—			49
Provision for decline in real estate, net of tax and minority interest		(13	)		—		(7	)		—			(20	)		(659	)		—		—			—			(659	)
Gain on disposition of equity method rental properties, net of tax		119			—		(119	)		—			—			49			—		(49	)		—			—
Provision for decline in real estate of equity method rental properties, net of tax		(7	)		—		7			—			—			—			—		—			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		(3,030	)		—		—			3,030			—			(1,082	)		—		—			1,082			—
Amortization of mortgage procurement costs — Real Estate Groups		(475	)		—		—			475			—			(34	)		—		—			34			—
Deferred taxes — Real Estate Groups		(964	)		—		—			964			—			(14	)		—		—			14			—
Straight-line rent adjustment		(567	)		—		—			567			—			—			—		—			—			—
Net earnings	$	22,377		$	—	$	—		$	—		$	22,377		$	1,479		$	—	$	—		$	—		$	1,479

41

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 2005 (in thousands) (continued)

	Land Development Group 2005													The Nets 2005
						Plus													Plus
	Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
	Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
	(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations	$	23,820		$	1,475	$	11,230		$	—	$	33,575		$	—		$	—	$	4,803	$	—	$	4,803
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted revenues		23,820			1,475		11,230			—		33,575			—			—		4,803		—		4,803
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		13,895			753		6,717			—		19,859			—			—		8,673		—		8,673
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses		13,895			753		6,717			—		19,859			—			—		8,673		—		8,673
Add interest and other income		4,615			449		37			—		4,203			—			—		57		—		57
Add equity in earnings of unconsolidated entities		6,507			—		(4,416	)		—		2,091			(4,620	)		—		4,620		—		—
Add back equity method depreciation and amortization expense		—			—		—			—		—			—			—		—		—		—
Net operating income		21,047			1,171		134			—		20,010			(4,620	)		—		807		—		(3,813	)
Interest expense, including early extinguishment of debt		1,848			151		134			—		1,831			—			—		807		—		807
Income tax expense (benefit)		8,191			—		—			—		8,191			(1,708	)		—		—		—		(1,708	)
Minority interest in earnings before depreciation and amortization		1,020			1,020		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	9,988		$	—	$	—		$	—	$	9,988		$	(2,912	)	$	—	$	—	$	—	$	(2,912	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	9,988		$	—	$	—		$	—	$	9,988		$	(2,912	)	$	—	$	—	$	—	$	(2,912	)
Depreciation and amortization — Real Estate Groups		(54	)		—		—			—		(54	)		—			—		—		—		—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes — Real Estate Groups		1,723			—		—			—		1,723			—			—		—		—		—
Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Gain on disposition of rental properties and other investments, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate, net of tax and minority interest		—			—		—			—		—			—			—		—		—		—
Gain on disposition of equity method rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Net earnings	$	11,657		$	—	$	—		$	—	$	11,657		$	(2,912	)	$	—	$	—	$	—	$	(2,912	)

42

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Three Months Ended July 31, 2005 (in thousands) (continued)

	Corporate Activities 2005												Total 2005
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	—		$	—	$	—	$	—	$	—		$	283,041		$	28,309		$74,621		$	27,586		$	356,939
Exclude straight-line rent adjustment		—			—		—		—		—			(3,790	)		—		—			(32	)		(3,822	)
Adjusted revenues		—			—		—		—		—			279,251			28,309		74,621			27,554			353,117
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		7,846			—		—		—		7,846			166,509			13,187		47,398			19,604			220,324
Exclude straight-line rent adjustment		—			—		—		—		—			(1,236	)		—		—			(599	)		(1,835	)
Adjusted operating expenses		7,846			—		—		—		7,846			165,273			13,187		47,398			19,005			218,489
Add interest and other income		453			—		—		—		453			6,620			584		327			135			6,498
Add equity in earnings of unconsolidated entities		—			—		—		—		—			9,880			—		(7,383	)		—			2,497
Add back equity method depreciation and amortization expense		—			—		—		—		—			6,660			—		(6,660	)		—			—
Net operating income		(7,393	)		—		—		—		(7,393	)		137,138			15,706		13,507			8,684			143,623
Interest expense, including early extinguishment of debt		11,278			—		—		—		11,278			67,546			7,054		13,507			5,282			79,281
Income tax expense (benefit)		(7,382	)		—		—		—		(7,382	)		1,083			—		—			(1,668	)		(585	)
Minority interest in earnings before depreciation and amortization		—			—		—		—		—			8,652			8,652		—			—			—
Add: EBDT from discontinued operations		—			—		—		—		—			5,070			—		—			(5,070	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(11,289	)	$	—	$	—	$	—	$	(11,289	)	$	64,927		$	—	$	—		$	—		$	64,927
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(11,289	)	$	—	$	—	$	—	$	(11,289	)	$	64,927		$	—	$	—		$	—		$	64,927
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(41,853	)		—		—			(4,112	)		(45,965	)
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(2,393	)		—		—			(509	)		(2,902	)
Deferred taxes — Real Estate Groups		(1,154	)		—		—		—		(1,154	)		3,600			—		—			(978	)		2,622
Straight-line rent adjustment		—			—		—		—		—			2,554			—		—			(567	)		1,987
Gain on disposition of rental properties and other investments, net of tax		6			—		—		—		6			6			—		168			—			174
Provision for decline in real estate, net of tax and minority interest		—			—		—		—		—			(672	)		—		(7	)		—			(679	)
Gain on disposition of equity method rental properties, net of tax		—			—		—		—		—			168			—		(168	)		—			—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—		—		—			(7	)		—		7			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(4,112	)		—		—			4,112			—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(509	)		—		—			509			—
Deferred taxes — Real Estate Groups		—			—		—		—		—			(978	)		—		—			978			—
Straight-line rent adjustment		—			—		—		—		—			(567	)		—		—			567			—
Net earnings	$	(12,437	)	$	—	$	—	$	—	$	(12,437	)	$	20,164		$	—	$	—		$	—		$	20,164

43

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 2005 (in thousands)

	Commercial Group 2005														Residential Group 2005
						Plus														Plus
	Full			Less		Unconsolidated			Plus			Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at			Discontinued			Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	405,299		$	47,652	$	49,869		$	42,802		$	450,318		$	101,533		$	7,440	$	60,575		$	8,568		$	163,236
Exclude straight-line rent adjustment		(8,695	)		—		—			(63	)		(8,758	)		14			—		—			—			14
Adjusted revenues		396,604			47,652		49,869			42,739			441,560			101,547			7,440		60,575			8,568			163,250
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		203,131			21,203		27,364			33,444			242,736			67,405			5,105		33,582			4,335			100,217
Exclude straight-line rent adjustment		(2,564	)		—		—			(1,197	)		(3,761	)		—			—		—			—			—
Adjusted operating expenses		200,567			21,203		27,364			32,247			238,975			67,405			5,105		33,582			4,335			100,217
Add interest and other income		2,119			262		(458	)		109			1,508			1,589			25		719			99			2,382
Add equity in earnings of unconsolidated entities		20,103			—		(19,711	)		—			392			8,904			—		(8,984	)		—			(80	)
Remove gain on disposition of equity method rental properties		(13,145	)		—		13,145			—			—			(5,352	)		—		5,352			—			—
Add back provision for decline in real estate of equity method rental properties		704			—		(704	)		—			—			—			—		—			—			—
Add back equity method depreciation and amortization expense		5,749			—		(5,749	)		—			—			8,385			—		(8,385	)		—			—
Net operating income		211,567			26,711		9,028			10,601			204,485			47,668			2,360		15,695			4,332			65,335
Interest expense, including early extinguishment of debt		85,907			12,342		9,028			7,091			89,684			22,120			2,177		15,695			3,282			38,920
Income tax expense (benefit)		10,757			—		—			(3,497	)		7,260			(4,582	)		—		—			(479	)		(5,061	)
Minority interest in earnings before depreciation and amortization		14,369			14,369		—			—			—			183			183		—			—			—
Add: EBDT from discontinued operations		7,007			—		—			(7,007	)		—			1,529			—		—			(1,529	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	107,541		$	—	$	—		$	—		$	107,541		$	31,476		$	—	$	—		$	—		$	31,476
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	107,541		$	—	$	—		$	—		$	107,541		$	31,476		$	—	$	—		$	—		$	31,476
Depreciation and amortization — Real Estate Groups		(59,238	)		—		—			(5,751	)		(64,989	)		(25,001	)		—		—			(2,142	)		(27,143	)
Amortization of mortgage procurement costs — Real Estate Groups		(3,336	)		—		—			(950	)		(4,286	)		(1,276	)		—		—			(71	)		(1,347	)
Deferred taxes — Real Estate Groups		(3,611	)		—		—			(1,824	)		(5,435	)		(707	)		—		—			(30	)		(737	)
Straight-line rent adjustment		6,131			—		—			(1,134	)		4,997			(14	)		—		—			—			(14	)
Gain on disposition of rental properties and other investments, net of tax		—			—		8,064			—			8,064			—			—		3,285			—			3,285
Provision for decline in real estate, net of tax and minority interest		(920	)		—		(432	)		—			(1,352	)		(659	)		—		—			—			(659	)
Gain on disposition of equity method rental properties, net of tax		8,064			—		(8,064	)		—			—			3,285			—		(3,285	)		—			—
Provision for decline in real estate of equity method rental properties, net of tax		(432	)		—		432			—			—			—			—		—			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		(5,751	)		—		—			5,751			—			(2,142	)		—		—			2,142			—
Amortization of mortgage procurement costs — Real Estate Groups		(950	)		—		—			950			—			(71	)		—		—			71			—
Deferred taxes — Real Estate Groups		(1,824	)		—		—			1,824			—			(30	)		—		—			30			—
Straight-line rent adjustment		(1,134	)		—		—			1,134			—			—			—		—			—			—
Net earnings	$	44,540		$	—	$	—		$	—		$	44,540		$	4,861		$	—	$	—		$	—		$	4,861

44

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 2005 (in thousands) (continued)

	Land Development Group 2005													The Nets 2005
						Plus													Plus
	Full			Less		Unconsolidated			Plus		Pro-Rata			Full			Less		Unconsolidated		Plus		Pro-Rata
	Consolidation			Minority		Investments at			Discontinued		Consolidation			Consolidation			Minority		Investments at		Discontinued		Consolidation
	(GAAP)			Interest		Pro-Rata			Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)
Revenues from real estate operations	$	59,474		$	3,649	$	22,330		$	—	$	78,155		$	—		$	—	$	17,272	$	—	$	17,272
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted revenues		59,474			3,649		22,330			—		78,155			—			—		17,272		—		17,272
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		34,921			1,890		12,286			—		45,317			—			—		29,112		—		29,112
Exclude straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Adjusted operating expenses		34,921			1,890		12,286			—		45,317			—			—		29,112		—		29,112
Add interest and other income		8,817			856		71			—		8,032			—			—		115		—		115
Add equity in earnings of unconsolidated entities		14,125			—		(9,876	)		—		4,249			(13,216	)		—		13,201		—		(15	)
Remove gain on disposition of equity method rental properties		—			—		—			—		—			—			—		—		—		—
Add back provision for decline in real estate of equity method rental properties		—			—		—			—		—			—			—		—		—		—
Add back equity method depreciation and amortization expense		—			—		—			—		—			—			—		—		—		—
Net operating income		47,495			2,615		239			—		45,119			(13,216	)		—		1,476		—		(11,740	)
Interest expense, including early extinguishment of debt		4,135			247		239			—		4,127			—			—		1,476		—		1,476
Income tax expense (benefit)		16,293			—		—			—		16,293			(5,108	)		—		—		—		(5,108	)
Minority interest in earnings before depreciation and amortization		2,368			2,368		—			—		—			—			—		—		—		—
Add: EBDT from discontinued operations		—			—		—			—		—			—			—		—		—		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	24,699		$	—	$	—		$	—	$	24,699		$	(8,108	)	$	—	$	—	$	—	$	(8,108	)
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	24,699		$	—	$	—		$	—	$	24,699		$	(8,108	)	$	—	$	—	$	—	$	(8,108	)
Depreciation and amortization — Real Estate Groups		(105	)		—		—			—		(105	)		—			—		—		—		—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes — Real Estate Groups		960			—		—			—		960			—			—		—		—		—
Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Gain on disposition of rental properties and other investments, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate, net of tax and minority interest		—			—		—			—		—			—			—		—		—		—
Gain on disposition of equity method rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—			—		—			—			—		—		—		—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Deferred taxes — Real Estate Groups		—			—		—			—		—			—			—		—		—		—
Straight-line rent adjustment		—			—		—			—		—			—			—		—		—		—
Net earnings	$	25,554		$	—	$	—		$	—	$	25,554		$	(8,108	)	$	—	$	—	$	—	$	(8,108	)

45

Forest City Enterprises, Inc. and Subsidiaries
Supplemental Financial Information

Summary of Earnings Before Depreciation, Amortization and Deferred Taxes (EBDT) — Six Months Ended July 31, 2005 (in thousands) (continued)

	Corporate Activities 2005												Total 2005
						Plus												Plus
	Full			Less		Unconsolidated		Plus		Pro-Rata			Full			Less		Unconsolidated			Plus			Pro-Rata
	Consolidation			Minority		Investments at		Discontinued		Consolidation			Consolidation			Minority		Investments at			Discontinued			Consolidation
	(GAAP)			Interest		Pro-Rata		Operations		(Non-GAAP)			(GAAP)			Interest		Pro-Rata			Operations			(Non-GAAP)
Revenues from real estate operations	$	—		$	—	$	—	$	—	$	—		$	566,306		$	58,741	$	150,046		$	51,370		$	708,981
Exclude straight-line rent adjustment		—			—		—		—		—			(8,681	)		—		—			(63	)		(8,744	)
Adjusted revenues		—			—		—		—		—			557,625			58,741		150,046			51,307			700,237
Operating expenses, including depreciation and amortization, and amortization of mortgage procurement costs for non-Real Estate Groups		17,275			—		—		—		17,275			322,732			28,198		102,344			37,779			434,657
Exclude straight-line rent adjustment		—			—		—		—		—			(2,564	)		—		—			(1,197	)		(3,761	)
Adjusted operating expenses		17,275			—		—		—		17,275			320,168			28,198		102,344			36,582			430,896
Add interest and other income		972			—		—		—		972			13,497			1,143		447			208			13,009
Add equity in earnings of unconsolidated entities		—			—		—		—		—			29,916			—		(25,370	)		—			4,546
Remove gain on disposition of equity method rental properties		—			—		—		—		—			(18,497	)		—		18,497			—			—
Add back provision for decline in real estate of equity method rental properties		—			—		—		—		—			704			—		(704	)		—			—
Add back equity method depreciation and amortization expense		—			—		—		—		—			14,134			—		(14,134	)		—			—
Net operating income		(16,303	)		—		—		—		(16,303	)		277,211			31,686		26,438			14,933			286,896
Interest expense, including early extinguishment of debt		21,586			—		—		—		21,586			133,748			14,766		26,438			10,373			155,793
Income tax expense (benefit)		(14,870	)		—		—		—		(14,870	)		2,490			—		—			(3,976	)		(1,486	)
Minority interest in earnings before depreciation and amortization		—			—		—		—		—			16,920			16,920		—			—			—
Add: EBDT from discontinued operations		—			—		—		—		—			8,536			—		—			(8,536	)		—
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(23,019	)	$	—	$	—	$	—	$	(23,019	)	$	132,589		$	—	$	—		$	—		$	132,589
Reconciliation to net earnings:
Earnings before depreciation, amortization and deferred taxes (EBDT)	$	(23,019	)	$	—	$	—	$	—	$	(23,019	)	$	132,589		$	—	$	—		$	—		$	132,589
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(84,344	)		—		—			(7,893	)		(92,237	)
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(4,612	)		—		—			(1,021	)		(5,633	)
Deferred taxes — Real Estate Groups		(1,820	)		—		—		—		(1,820	)		(5,178	)		—		—			(1,854	)		(7,032	)
Straight-line rent adjustment		—			—		—		—		—			6,117			—		—			(1,134	)		4,983
Gain on disposition of rental properties and other investments, net of tax		372			—		—		—		372			372			—		11,349			—			11,721
Provision for decline in real estate, net of tax and minority interest		—			—		—		—		—			(1,579	)		—		(432	)		—			(2,011	)
Gain on disposition of equity method rental properties, net of tax		—			—		—		—		—			11,349			—		(11,349	)		—			—
Provision for decline in real estate of equity method rental properties, net of tax		—			—		—		—		—			(432	)		—		432			—			—
Discontinued operations, net of tax and minority interest:
Depreciation and amortization — Real Estate Groups		—			—		—		—		—			(7,893	)		—		—			7,893			—
Amortization of mortgage procurement costs — Real Estate Groups		—			—		—		—		—			(1,021	)		—		—			1,021			—
Deferred taxes — Real Estate Groups		—			—		—		—		—			(1,854	)		—		—			1,854			—
Straight-line rent adjustment		—			—		—		—		—			(1,134	)		—		—			1,134			—
Net earnings	$	(24,467	)	$	—	$	—	$	—	$	(24,467	)	$	42,380		$	—	$	—		$	—		$	42,380

46