Monday, commercial and residential properties developer Forest City Enterprises, Inc. (FCE-A, FCE-B), reported a narrower net loss for the first quarter, aided by various factors including reduced development project write-offs, narrower losses on early debt extinguishment and gain on disposition.
Quarterly net loss attributable to Forest City Enterprises narrowed to $31 million or $0.30 per share from $40.40 million or $0.39 per share in the same quarter last year.
Loss from continuing operations was $31.60 million or $0.31 per share, compared to $40.10 million or $0.38 per share in the year-ago quarter.
The Cleveland, Ohio-based company's quarterly results included earnings before depreciation, amortization and deferred taxes of $8.3 million from rental properties portfolio, reduced development project write-offs of $10.1 million, decreased losses on debt extinguishment of $4.9 million and a gain of $4.5 million on disposition of a retail center in Queens, New York. The company, however, incurred impairment charges of $10.7 million for severance and outplacement costs related to workforce reductions.
The company's earnings before depreciation, amortization and deferred taxes, or EBDT, for the quarter surged to $41.60 million or $0.39 per share from $16 million or $0.15 per share in the previous-year quarter.
Total revenues for the quarter increased 2.6% to $313.03 million from $305.01 million last year.
Operating loss for the quarter, a non-GAAP financial measure narrowed to $43.10 million from $60.40 million a year ago.
For the first-quarter, comparable average occupancies in the residential business were 90.1%, compared to 92.5% last year. Comparable residential net rental income contracted to 85.5% from 87.3%, while comparable retail occupancies were 90%, compared to 92.9% in the previous year. Comparable office occupancies were 90.3%, compared to 90.1% last year.
Looking ahead, Forest City Enterprise expressed a cautious outlook considering no measurable improvement in current conditions. The company further sees softness in fundamentals, particularly in retail and to a lesser degree, in residential, amid the continued recession.
FCE-A is currently trading at $6.85, down $0.25 or 3.52% on a volume of 0.18 million shares on the NYSE.
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