Forest City sees losses of $41.9M
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]