Forest City sees losses of $41.9M

TRD New York /
Dec.December 09, 2011 12:57 PM
From left: David LaRue and a rendering of Atlantic Yards

Forest City Enterprises, developer of the Barclay’s
Center at Atlantic Yards, reported third-quarter losses of $41.9
million, or 25 cents per share, according to a report from
International Business Times.

Leasing difficulties at a Florida mall and disposition of an office building in Cleveland were cited as main reasons for the third quarter net loss.

The company saw $4.3 million in losses from vacancies in two Brooklyn
office properties, $4 million
in write-downs from stalled development projects, and $3.3 million in losses
from unleased space at 8 Spruce Street, the Frank
Gehry-designed residential tower. The company said it has
leased 550 of 903 apartments in the building.

Net operating income declined by 1.5 percent in the third quarter, and
net operating income from office space by 7.6 percent, the company

At MetroTech Center, in downtown Brooklyn, Forest City signed a number
of high-profile leases this year, including 200,000 square feet for
Morgan Stanley, 155,000 square feet for the city of New York, and
120,000 square feet for the Internal Revenue Service.

“Our primary strategic direction going forward is to focus on our core
markets and products,” said Forest City CEO David LaRue. “We will also
continue to de-risk the business, both by delivering and opening our
major pipeline projects, and by working to further improve our balance
sheet and overall debt metrics.” [IBTimes]

Related Articles

Eric Gordon

Eric Gordon on the evolution of the residential data game — and how to stay competitive in the new world

Big Tech locations in NYC

MAP: Here’s a look at all the Big Tech locations in NYC

What will proptech look like in 2019 and beyond?

From left: RealPlus' Eric Gordon, Corcoran's Pam Liebman, Halstead's Diane Ramirez, Douglas Elliman's Howard Lorber and Brown Harris Stevens' Bess Freedman (Credit: Eric Gordon by Emily Assiran, Getty Images, Halstead, BHS, iStock)

Terra sells part of RealPlus stake to Corcoran and Elliman

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Fears about privacy and Big Brother-like tactics in real estate are taking hold

John Burger: how tech makes real estate “more professional”

Elegran founder and CEO Michael Rossi, and a segment of the domain registry history for

Elegran revealed as creator of fake building websites