How it will use the proceeds? It will invest in apartment and office assets that align with Forest City's core markets in urban, mixed-use place-making projects. This could mean acquiring individual assets or portfolios, buying out existing partners, purchasing ground leases at operating properties or moving forward with development opportunities. The whole range of possibilities, in other words.

Why it is considering development? The company's pipeline of entitlement concentrated in "place-making projects” totals more than 20 million square feet “providing a significant growth opportunity for Forest City," LaRue said.

Will it definitely sell its retail holdings? No.

Will it comment on the retail holdings' valuation? No, although O'Brien did say in response to a question that because the value of the retail portfolio is substantially above the tax basis, it would generate capital gains, which is why it is redeploying the proceeds into new real estate for the most part.

Does this mean it is exiting the retail asset class? Basically yes if a sale goes through, leaving aside Ballston and the amenity retail. Nothing is finalized, LaRue said, "but the intent is to exit that business to the great extent so we can look at efficiencies."

Will it comment further on the process? No.

WASHINGTON, DC--Forest City Realty Trust plans to hang on to its key Washington DC-area retail as it begins a strategic review on monetizing its retail portfolio. The Cleveland, Ohio-based REIT announced earlier this week that it is exploring strategic alternatives for its 33 or so retail properties, and would use proceeds from any sales to invest in the apartment and office asset classes. This process is expected to be concluded by the first quarter of 2017.

But the REIT took its ownership interest in Arlington's Ballston Quarter off the table in that first announcement -- that mixed-use redevelopment, it said, it plans to retain.

A later call to investors by Forest City's executives clarified its strategy -- and added another holding to the list of “do not sell” properties. The company also plans to retain its amenity retail throughout the portfolio. "An example of this would be the retail at The Yards project in Washington, DC," CEO David J. LaRue said during the call.

Other than that LaRue and CFO Robert O'Brien were limited in what they could tell investors. Some excerpts from the call:

How it will use the proceeds? It will invest in apartment and office assets that align with Forest City's core markets in urban, mixed-use place-making projects. This could mean acquiring individual assets or portfolios, buying out existing partners, purchasing ground leases at operating properties or moving forward with development opportunities. The whole range of possibilities, in other words.

Why it is considering development? The company's pipeline of entitlement concentrated in "place-making projects” totals more than 20 million square feet “providing a significant growth opportunity for Forest City," LaRue said.

Will it definitely sell its retail holdings? No.

Will it comment on the retail holdings' valuation? No, although O'Brien did say in response to a question that because the value of the retail portfolio is substantially above the tax basis, it would generate capital gains, which is why it is redeploying the proceeds into new real estate for the most part.

Does this mean it is exiting the retail asset class? Basically yes if a sale goes through, leaving aside Ballston and the amenity retail. Nothing is finalized, LaRue said, "but the intent is to exit that business to the great extent so we can look at efficiencies."

Will it comment further on the process? No.