Missing from Forest City's quarterly results: commentary about planned sale of arena/Nets

The big news, from a Brooklyn perspective, in yesterday's press release, Forest City Reports 2015 Third-Quarter and Year-to-Date Results, is what's not included.

Yes, operating FFO (funds from operations) was up for three months and nine months compared to last year, while total FFO was up for nine months but down for three months, due to some negative impacts:

In addition to the factors listed above related to Operating FFO, third-quarter 2015 FFO results were negatively impacted by loss on extinguishment of debt of $23.0 million, or $0.08 per share, related to senior notes exchanges executed in the quarter; increased losses on the Nets of $36.8 million($22.6 million, net of tax), or $0.08 per share, related to the company's share of a $26.8 million payment in the quarter for capital calls and fees, plus additional non-cash depreciation and amortization; impairment of non-depreciable real estate of $16.3 million ($10.0 million, net of tax) or $0.04 per share related to land in Las Vegas being marketed for disposition. In addition, the company had costs related to its planned 2016 conversion to a real estate investment trust (REIT) of $9.5 million ($5.8 million, net of tax), or $0.02 per share, in the quarter.

Moreover, the company had losses:

For the three months ended September 30, 2015, the company had a net loss of $302.2 million, or $1.18 per share, compared with net earnings of$0.7 million, or $0.00 per share, for the three months ended September 30, 2014. In addition to factors listed above related to FFO and Operating FFO, the variance in net loss for the quarter was driven primarily by increased impairment of depreciable rental properties of $409.2 million ($250.4 million, net of tax), primarily the result of impairment of Westchester's Ridge Hill in Yonkers, NY ($372.6 million, or $228.1 million, net of tax) and the Illinois Science and Technology Park in Skokie, IL ($26.2 million, or $16.1 million, net of tax). Factors driving these impairments are described later in this release, under Commentary.

But what went unmentioned was the plan to sell the 20% share in the Brooklyn Nets and the 55% share in the Barclays Center operating company that Forest City controls, which was aimed to be accomplished already, and surely by the end of the year, to accommodate the conversion to a REIT.

Perhaps we'll learn more in today's discussion with investment analysts.