Gothamist: Atlantic Yards Financials Released

you're a hack

Wed, 28 Feb 2007 23:22:37 -0500

Toby, objective as always.

WT Economist

Wed, 28 Feb 2007 21:38:18 -0500

Ratner is going to lose lots of money, but having already bought the Nets, he's on the hook anyway.

Toby

Wed, 28 Feb 2007 18:22:49 -0500

Ratner's arena is just a smokescreen for the real money makers. Hopefully Ratner will have spent millions on lawyers by 2010 and would have built nothing there.

Daniel

Wed, 28 Feb 2007 17:20:28 -0500

A Internal rate of return IRR is the term used to say what Ratner expects to gain from the properties. Say for instance they project to make $100 year one and $110 year two (hahaha) 10% is the IRR. Usually the figure is calculated over a 10-20 year period.

Jo

Wed, 28 Feb 2007 17:09:41 -0500

A 10 year projection for a $4B capital project? Sure would be nice to see the 20, 30 and 40 year projections - the IRR probably goes through the roof beyond year 10. It's impossible to tell looking at the cash flows for the first 10 years how profitable this project will be. What would be meaningful is seeing the rate of return once the construction outlays are complete.

Sean

Wed, 28 Feb 2007 17:01:33 -0500

For a project this risky, that's very low, even for a public company like Forest City Ratner. Of course, everyone involved in producing these projections has an incentive to keep the reported returns as low as possible. Without seeing anything more than a summary sheet, it's really impossible to know whether these numbers are real.

obiwan

Wed, 28 Feb 2007 16:38:42 -0500

The HDF (hipster displacement factor) is 74 and that's excellent!