-- Tenant Sales Trends Improving -- Operating Statistics on Track
with Prior Guidance -- Earnings Impacted by Impairment Charges --
Adjusted FFO Guidance at Top of Previously Announced Range
BLOOMFIELD HILLS, Mich., Oct. 26 /PRNewswire-FirstCall/ -- Taubman
Centers, Inc. (NYSE:TCO) today announced its financial results for
the third quarter of 2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20080428/CLM116LOGO ) Net
income (loss) allocable to common shareholders per diluted share
(EPS) was $(1.77) for the quarter ended September 30, 2009, versus
$0.17 for the quarter ended September 30, 2008. The 2009 results
include the $2.00 per share impact of the previously announced
impairment charges relating to The Pier Shops at Caesars (Atlantic
City, N.J.) and Regency Square (Richmond, Va.). EPS for the nine
months ended September 30, 2009 was $(1.39), versus $0.26 for the
first nine months of 2008. Adjusted Funds from Operations per
diluted share (which excludes the 2009 impairment charges) was
$0.74 for the quarters ended September 30, 2009 and 2008
respectively. Funds from Operations (FFO) was $(1.26) per diluted
share for the quarter ended September 30, 2009. Adjusted FFO (which
excludes the 2009 impairment charges and the restructuring charge
taken in the first half of the year) for the nine months ended
September 30, 2009 was $2.13, an increase of 2.4 percent from $2.08
for the nine months ended September 30, 2008. There were no
adjustments during the first three quarters of 2008. FFO per share
was $0.11 for the nine months ended September 30, 2009. "We're
continuing to experience a tough retail environment," said Robert
S. Taubman, chairman, president and chief executive officer of
Taubman Centers. "As retailers rationalize locations, we have been
very successful collecting lease cancellation income. This more
than offset the declines in rents and recoveries during the
quarter." Operating Statistics in Line with Prior Guidance Ending
occupancy for Taubman's portfolio was 88.5 percent on September 30,
2009 versus 90.5 percent on September 30, 2008. Leased space was
91.0 percent on September 30, 2009 versus 92.4 percent on September
30, 2008. Average rent per square foot in the company's 16
consolidated properties for the third quarter of 2009 was $42.36
versus $44.04 for the third quarter of 2008. For the nine months
ended September 30, 2009, average rent per square foot in the
consolidated properties was $43.47 versus $44.04 in the nine months
ended September 30, 2008. Mall tenant sales per square foot
declined 8.0 percent from the third quarter of 2008. For the twelve
months ended September 30, 2009, mall tenant sales per square foot
was down 11.8 percent to $497 per square foot. "The sales
performance trend is the best we've reported since the third
quarter of 2008," said Mr. Taubman. "In fact, the month of
September, while down 2.9 percent, was significantly better than we
have been reporting all year. We are hopeful that the improved
sales trends mark the bottom of this cycle. As sales improve, our
retailers will become more profitable. Eventually, this will be
reflected in stronger leasing and operating results." Guidance The
company previously announced adjusted FFO guidance in the range of
$2.73 to $2.93 per diluted share, excluding the restructuring
charge incurred in the first half of the year. Excluding the impact
of the impairment and restructuring charges, the company is
narrowing the range for adjusted FFO per share guidance to $2.88 to
$2.93, the top of the previously announced range. FFO per diluted
share is expected to be $0.87 to $0.92. The company is also
narrowing its guidance for 2009 EPS to $(1.13) to $(1.03).
Supplemental Investor Information Available The company provides
supplemental investor information along with its earnings
announcements, available online at http://www.taubman.com/ under
"Investor Relations." This includes the following: -- Income
Statements -- Earnings Reconciliations -- Changes in Funds from
Operations and Earnings (Loss) Per Share -- Components of Other
Income, Other Operating Expense, and Gains on Land Sales and Other
Nonoperating Income -- Recoveries Ratio Analysis -- Balance Sheets
-- Debt Summary -- Other Debt, Equity and Certain Balance Sheet
Information -- Construction -- Capital Spending -- Operational
Statistics -- Owned Centers -- Major Tenants in Owned Portfolio --
Anchors in Owned Portfolio Investor Conference Call The company
will host a conference call at 1:00 PM. (EDT) on October 27 to
discuss these results, business conditions and the company's
outlook for the remainder of 2009. The conference call will be
simulcast at http://www.taubman.com/ under "Investor Relations" as
well as http://www.earnings.com/ and http://www.streetevents.com/.
An online replay will follow shortly after the call and continue
for approximately 90 days. Taubman Centers is a real estate
investment trust engaged in the development and management of
regional and super regional shopping centers. Taubman's 24 U.S.
owned and/or managed properties, the most productive in the
industry, serve major markets from coast to coast. Taubman Centers
is headquartered in Bloomfield Hills, Michigan and its Taubman Asia
subsidiary is headquartered in Hong Kong. For more information
about Taubman, visit http://www.taubman.com/. For ease of use,
references in this press release to "Taubman Centers", "company" or
"Taubman" mean Taubman Centers, Inc. or one or more of a number of
separate, affiliated entities. Business is actually conducted by an
affiliated entity rather than Taubman Centers, Inc. itself. This
press release may contain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
These statements reflect management's current views with respect to
future events and financial performance. Actual results may differ
materially from those expected because of various risks and
uncertainties, including, but not limited to the continuing impacts
of the U.S. recession and global credit environment, other changes
in general economic and real estate conditions, changes in the
interest rate environment and the availability of financing, and
adverse changes in the retail industry. Other risks and
uncertainties are discussed in the company's filings with the
Securities and Exchange Commission including its most recent Annual
Report on Form 10-K. TAUBMAN CENTERS, INC. Table 1 - Summary of
Results For the Periods Ended September 30, 2009 and 2008
------------------------------------------------- (in thousands of
dollars, except as indicated) Three Months Ended Year to Date
------------------ ------------ 2009 2008 (2) 2009 2008 (2) ----
-------- ---- -------- Net income (loss) (1),(2) (138,788) 27,836
(93,396) 72,766 Noncontrolling share of (income) loss of
consolidated joint ventures (2) 3,456 (1,416) (270) (3,722)
Distributions in excess of noncontrolling share of income of
consolidated joint ventures (2) (1,578) (7,973) Noncontrolling
share of (income) loss of TRG (2) 45,894 (7,445) 34,018 (17,866)
Distributions in excess of noncontrolling share of income of TRG
(2) (3,565) (15,183) TRG series F preferred distributions (615)
(615) (1,845) (1,845) Preferred stock dividends (3,658) (3,658)
(10,975) (10,975) Distributions to participating securities of TRG
(362) (362) (1,198) (1,085) Net income (loss) attributable to
Taubman Centers, Inc. common shareowners (2) (94,073) 9,197
(73,666) 14,117 Net income (loss) per common share - basic (2)
(1.77) 0.17 (1.39) 0.27 Net income (loss) per common share -
diluted (2) (1.77) 0.17 (1.39) 0.26 Beneficial interest in EBITDA
-Consolidated Businesses (1), (3) (79,985) 78,973 72,791 231,550
Beneficial interest in EBITDA -Unconsolidated Joint Ventures (3)
24,413 25,636 70,897 71,394 Funds from Operations (1), (3)
(100,323) 59,712 8,637 167,681 Funds from Operations attributable
to TCO (1), (3) (67,019) 39,764 5,707 111,588 Funds from Operations
per common share - basic (1), (3) (1.26) 0.75 0.11 2.11 Funds from
Operations per common share - diluted (1), (3) (1.26) 0.74 0.11
2.08 Adjusted Funds from Operations (1), (3) 60,479 59,712 172,069
167,681 Adjusted Funds from Operations attributable to TCO (1), (3)
40,402 39,764 114,884 111,588 Adjusted Funds from Operations per
common share - basic (1), (3) 0.76 0.75 2.16 2.11 Adjusted Funds
from Operations per common share - diluted (1), (3) 0.74 0.74 2.13
2.08 Weighted average number of common shares outstanding -basic
53,147,866 52,908,924 53,112,145 52,815,246 Weighted average number
of common shares outstanding -diluted 53,147,866 53,412,236
53,112,145 53,370,218 Common shares outstanding at end of period
53,171,237 52,948,733 Weighted average units - Operating
Partnership - basic 79,558,921 79,450,825 79,541,688 79,365,719
Weighted average units - Operating Partnership - diluted 81,254,902
80,825,398 80,936,239 80,791,952 Units outstanding at end of period
- Operating Partnership 79,558,922 79,481,177 Ownership percentage
of the Operating Partnership at end of period 66.8% 66.6% Number of
owned shopping centers at end of period 23 23 23 23 Operating
Statistics: Mall tenant sales (4) 1,020,834 1,112,502 2,957,114
3,312,137 Ending occupancy 88.5% 90.5% 88.5% 90.5% Average
occupancy 88.4% 90.4% 88.6% 90.1% Leased space at end of period
91.0% 92.4% 91.0% 92.4% Mall tenant occupancy costs as a percentage
of tenant sales - Consolidated Businesses (4) 15.8% 15.6% 16.9%
15.6% Mall tenant occupancy costs as a percentage of tenant sales -
Unconsolidated Joint Ventures (4) 15.6% 14.7% 15.8% 14.1% Rent per
square foot - Consolidated Businesses 42.36 44.04 43.47 44.04 Rent
per square foot - Unconsolidated Joint Ventures 44.56 44.52 44.59
44.72 (1) The three and nine month periods ended September 30, 2009
include impairment charges related to the write down of the book
values of The Pier Shops and Regency Square to their fair values.
The nine month period ended September 30, 2009 also includes a
restructuring charge, which primarily represents the costs of
termination of personnel. No similar charges were incurred in the
three and nine month periods ended September 30, 2008. (2) On
January 1, 2009, the Company adopted Accounting Standards
Codification (ASC) Topic 810, "Consolidation" as it relates to
noncontrolling interests. Consequently, noncontrolling interests in
consolidated subsidiaries with equity balances of less than zero
are now allocated income equal to their ownership interests in the
subsidiaries. Under previous accounting, because the net equity
balances of the Operating Partnership and the outside partners in
certain consolidated joint ventures were less than zero, the income
attributed to the noncontrolling partners was equal to their share
of distributions. The net equity of these noncontrolling partners
is less than zero due to accumulated distributions in excess of net
income and not as a result of operating losses. Net loss
attributable to Taubman Centers, Inc. common shareowners for the
three and nine months ended September 30, 2009 would have been
$(153.0) million and $(146.9) million, respectively or $(2.88) and
$(2.77) per common share, respectively if accounted for under the
previous method of accounting for noncontrolling interests prior to
the new accounting requirements. Certain 2008 amounts have been
reclassified to conform with 2009 classifications. (3) Beneficial
Interest in EBITDA represents the Operating Partnership's share of
the earnings before interest, income taxes, and depreciation and
amortization of its consolidated and unconsolidated businesses. The
Company believes Beneficial Interest in EBITDA provides a useful
indicator of operating performance, as it is customary in the real
estate and shopping center business to evaluate the performance of
properties on a basis unaffected by capital structure. The National
Association of Real Estate Investment Trusts (NAREIT) defines Funds
from Operations (FFO) as net income (computed in accordance with
Generally Accepted Accounting Principles (GAAP)), excluding gains
from extraordinary items and sales of properties, plus real estate
related depreciation and after adjustments for unconsolidated
partnerships and joint ventures. The Company believes that FFO is a
useful supplemental measure of operating performance for REITs.
Historical cost accounting for real estate assets implicitly
assumes that the value of real estate assets diminishes predictably
over time. Since real estate values instead have historically risen
or fallen with market conditions, the Company and most industry
investors and analysts have considered presentations of operating
results that exclude historical cost depreciation to be useful in
evaluating the operating performance of REITs. FFO is primarily
used by the Company in measuring performance and in formulating
corporate goals and compensation. These non-GAAP measures as
presented by the Company are not necessarily comparable to
similarly titled measures used by other REITs due to the fact that
not all REITs use common definitions. None of these non-GAAP
measures should be considered alternatives to net income as an
indicator of the Company's operating performance, and they do not
represent cash flows from operating, investing, or financing
activities as defined by GAAP. (4) Based on reports of sales
furnished by mall tenants. TAUBMAN CENTERS, INC. Table 2 - Income
Statement For the Three Months Ended September 30, 2009 and 2008
-------------------------------------------------------- (in
thousands of dollars) 2009 2008 ---------------------------
--------------------------- UNCONSOLIDATED UNCONSOLIDATED
CONSOLIDATED JOINT CONSOLIDATED JOINT BUSINESSES VENTURES (1)
BUSINESSES VENTURES (1) ------------ -------------- ------------
-------------- REVENUES: Minimum rents 83,403 39,074 87,401 39,187
Percentage rents 2,621 974 3,262 1,681 Expense recoveries 56,720
24,415 60,838 25,011 Management, leasing, and development services
3,444 3,316 Other 17,012 2,823 8,896 1,175 ------ ----- ----- -----
Total revenues 163,200 67,286 163,713 67,054 EXPENSES: Maintenance,
taxes, and utilities 46,286 16,802 48,741 17,201 Other operating
16,506 5,515 18,482 3,892 Management, leasing, and development
services 2,140 1,843 General and administrative 7,155 6,790
Impairment charges (2) 166,680 Interest expense 36,407 16,219
36,039 16,471 Depreciation and amortization 37,726 9,491 35,464
9,923 ------ ----- ------ ----- Total expenses 312,900 48,027
147,359 47,487 Gains on land sales and other nonoperating income
247 31 411 115 --- --- --- --- (149,453) 19,290 16,765 19,682
====== ====== Income tax (expense) benefit 211 (218) Equity in
income of Unconsolidated Joint Ventures 10,454 11,289 ------ ------
Net income (loss) (138,788) 27,836 Net (income) loss attributable
to noncontrolling interests: Noncontrolling share of (income) loss
of consolidated joint ventures 3,456 (1,416) Distributions in
excess of noncontrolling share of income of consolidated joint
ventures (1,578) TRG series F preferred distributions (615) (615)
Noncontrolling share of (income) loss of TRG 45,894 (7,445)
Distributions in excess of noncontrolling share of income of TRG
(3,565) Distributions to participating securities of TRG (362)
(362) Preferred stock dividends (3,658) (3,658) ------ ------ Net
income (loss) attributable to Taubman Centers, Inc. common
shareowners (94,073) 9,197 ======= ===== SUPPLEMENTAL INFORMATION:
EBITDA - 100% (2) (75,320) 45,000 88,268 46,076 EBITDA - outside
partners' share (4,665) (20,587) (9,295) (20,440) ------ -------
------ ------- Beneficial interest in EBITDA (2) (79,985) 24,413
78,973 25,636 Beneficial interest expense (31,420) (8,416) (31,088)
(8,570) Beneficial income tax (expense) benefit 211 (218) Non-real
estate depreciation (853) (748) Preferred dividends and
distributions (4,273) (4,273) ------ ------ ------ ------ Fund from
Operations contribution (2) (116,320) 15,997 42,646 17,066 ========
====== ====== ====== Net straightline adjustments to rental
revenue, recoveries, and ground rent expense at TRG % 334 158 251
162 === === === === (1) With the exception of the Supplemental
Information, amounts include 100% of the Unconsolidated Joint
Ventures. Amounts are net of intercompany transactions. The
Unconsolidated Joint Ventures are presented at 100% in order to
allow for measurement of their performance as a whole, without
regard to the Company's ownership interest. The Company accounts
for its investments in the Unconsolidated Joint Ventures under the
equity method. (2) In the third quarter of 2009, the Company wrote
down the book values of The Pier Shops and Regency Square to their
fair values. The impairment charges were $160.8 million at TRG's
share. TAUBMAN CENTERS, INC. Table 3 - Income Statement For the
Nine Months Ended September 30, 2009 and 2008
------------------------------------------------------- (in
thousands of dollars) 2009 2008 ---------------------------
--------------------------- UNCONSOLIDATED UNCONSOLIDATED
CONSOLIDATED JOINT CONSOLIDATED JOINT BUSINESSES VENTURES (1)
BUSINESSES VENTURES (1) ------------ -------------- ------------
-------------- REVENUES: Minimum rents 254,855 116,594 261,554
116,395 Percentage rents 5,342 2,177 7,162 3,600 Expense recoveries
172,003 72,060 178,686 69,089 Management, leasing, and development
services 10,189 10,901 Other 37,440 6,199 23,239 5,541 ------ -----
------ ----- Total revenues 479,829 197,030 481,542 194,625
EXPENSES: Maintenance, taxes, and utilities 137,773 49,135 138,766
48,629 Other operating 47,823 17,868 56,478 16,026 Restructuring
charge (2) 2,630 Management, leasing, and development services
5,976 6,521 General and administrative 20,890 23,066 Impairment
charges (3) 166,680 Interest expense 109,113 48,289 108,993 48,624
Depreciation and amortization 110,077 28,839 106,978 29,385 -------
------ ------- ------ Total expenses 600,962 144,131 440,802
142,664 Gains on land sales and other nonoperating income 680 88
3,670 594 Impairment loss on marketable securities (1,666) ------
------ ------ ------ (122,119) 52,987 44,410 52,555 ====== ======
Income tax expense (257) (658) Equity in income of Unconsolidated
Joint Ventures 28,980 29,014 ------ ------ Net income (loss)
(93,396) 72,766 Net (income) loss attributable to noncontrolling
interests: Noncontrolling share of income of consolidated joint
ventures (270) (3,722) Distributions in excess of noncontrolling
share of income of consolidated joint ventures (7,973) TRG series F
preferred distributions (1,845) (1,845) Noncontrolling share of
(income) loss of TRG 34,018 (17,866) Distributions in excess of
noncontrolling share of income of TRG (15,183) Distributions to
participating securities of TRG (1,198) (1,085) Preferred stock
dividends (10,975) (10,975) ------- ------- Net income (loss)
attributable to Taubman Centers, Inc. common shareowners (73,666)
14,117 ======= ====== SUPPLEMENTAL INFORMATION: EBITDA - 100% (2)
(3) 97,071 130,115 260,381 130,564 EBITDA - outside partners' share
(24,280) (59,218) (28,831) (59,170) ------- ------- ------- -------
Beneficial interest in EBITDA (2) (3) 72,791 70,897 231,550 71,394
Beneficial interest expense (94,318) (25,069) (94,307) (25,289)
Beneficial income tax expense (257) (658) Non-real estate
depreciation (2,587) (2,189) Preferred dividends and distributions
(12,820) (12,820) ------- ------ ------- ------ Funds from
Operations contribution (2) (3) (37,191) 45,828 121,576 46,105
======= ====== ======= ====== Net straightline adjustments to
rental revenue, recoveries, and ground rent expense at TRG % 493
316 1,319 275 === === ===== === (1) With the exception of the
Supplemental Information, amounts include 100% of the
Unconsolidated Joint Ventures. Amounts are net of intercompany
transactions. The Unconsolidated Joint Ventures are presented at
100% in order to allow for measurement of their performance as a
whole, without regard to the Company's ownership interest. In its
consolidated financial statements, the Company accounts for its
investments in the Unconsolidated Joint Ventures under the equity
method. (2) In 2009, the Company recognized a restructuring charge,
which primarily represents the costs of termination of personnel.
(3) In the third quarter of 2009, the Company wrote down the book
values of The Pier Shops and Regency Square to their fair values.
The impairment charges were $160.8 million at TRG's share. TAUBMAN
CENTERS, INC. Table 4 - Reconciliation of Net Income (Loss)
Attributable to Taubman Centers, Inc. Common Shareowners to Funds
from Operations and Adjusted Funds from Operations For the Periods
Ended September 30, 2009 and 2008
------------------------------------------------- (in thousands of
dollars; amounts attributable to TCO may not recalculate due to
rounding) Three Months Ended Year to Date ------------ ------------
2009 2008 2009 2008 ---- ---- ---- ---- Net income (loss)
attributable to TCO common shareowners (94,073) 9,197 (73,666)
14,117 Add (less) depreciation and amortization: Consolidated
businesses at 100% 37,726 35,464 110,077 106,978 Noncontrolling
partners in consolidated joint ventures (3,134) (2,928) (9,215)
(10,423) Share of Unconsolidated Joint Ventures 5,543 5,777 16,848
17,091 Non-real estate depreciation (853) (748) (2,587) (2,189) Add
noncontrolling interests: Noncontrolling share of income (loss) of
TRG (45,894) 7,445 (34,018) 17,866 Distributions in excess of
noncontrolling share of income of TRG 3,565 15,183 Distributions in
excess of noncontrolling share of income of consolidated joint
ventures 1,578 7,973 Add distributions to participating securities
of TRG 362 362 1,198 1,085 --- --- ----- ----- Funds from
Operations (1) (100,323) 59,712 8,637 167,681 TCO's average
ownership percentage of TRG 66.8% 66.6% 66.8% 66.5% ---- ---- ----
---- Funds from Operations attributable to TCO (1) (67,019) 39,764
5,707 111,588 ======= ====== ===== ======= Funds from Operations
(100,323) 59,712 8,637 167,681 TRG's share of impairment charges
(1) 160,802 160,802 Restructuring charge (1) 2,630 ------- ------
------- ------- Adjusted Funds from Operations (1) 60,479 59,712
172,069 167,681 TCO's average ownership percentage of TRG 66.8%
66.6% 66.8% 66.5% ---- ---- ---- ---- Adjusted Funds from
Operations attributable to TCO (1) 40,402 39,764 114,884 111,588
====== ====== ======= ======= (1) FFO for the three and nine month
periods ended September 30, 2009 includes, and Adjusted FFO
excludes, impairment charges related to the write down of The Pier
Shops and Regency Square to their fair values. Also, FFO for the
nine month period ended September 30, 2009 includes, and Adjusted
FFO excludes, a restructuring charge, which primarily represents
the costs of termination of personnel. The Company discloses this
Adjusted FFO due to the significance and infrequent nature of these
charges. Given the significance of the charges, the Company
believes it is essential to a reader's understanding of the
Company's results of operations to emphasize the impact on the
Company's earnings measures. The adjusted measures are not and
should not be considered alternatives to net income or cash flows
from operating, investing, or financing activities as defined by
GAAP. TAUBMAN CENTERS, INC. Table 5 - Reconciliation of Net Income
(Loss) to Beneficial Interest in EBITDA For the Periods Ended
September 30, 2009 and 2008
------------------------------------------------- (in thousands of
dollars; amounts attributable to TCO may not recalculate due to
rounding) Three Months Ended Year to Date ------------------
------------ 2009 2008 2009 2008 ---- ---- ---- ---- Net income
(loss) (138,788) 27,836 (93,396) 72,766 Add (less) depreciation and
amortization: Consolidated businesses at 100% 37,726 35,464 110,077
106,978 Noncontrolling partners in consolidated joint ventures
(3,134) (2,928) (9,215) (10,423) Share of Unconsolidated Joint
Ventures 5,543 5,777 16,848 17,091 Add (less) interest expense and
income tax expense: Interest expense: Consolidated businesses at
100% 36,407 36,039 109,113 108,993 Noncontrolling partners in
consolidated joint ventures (4,987) (4,951) (14,795) (14,686) Share
of Unconsolidated Joint Ventures 8,416 8,570 25,069 25,289 Income
tax expense (benefit) (211) 218 257 658 Less noncontrolling share
of (income) loss of consolidated joint ventures 3,456 (1,416) (270)
(3,722) ----- ------ ---- ------ Beneficial Interest in EBITDA
(55,572) 104,609 143,688 302,944 TCO's average ownership percentage
of TRG 66.8% 66.6% 66.8% 66.5% ---- ---- ---- ---- Beneficial
Interest in EBITDA attributable to TCO (37,124) 69,670 95,880
201,607 ======= ====== ====== ======= TAUBMAN CENTERS, INC. Table 6
- Balance Sheets As of September 30, 2009 and December 31, 2008
---------------------------------------------- (in thousands of
dollars) As of -------- September 30, 2009 December 31, 2008
------------------ ----------------- Consolidated Balance Sheet of
Taubman Centers, Inc.: Assets: Properties 3,553,470 3,699,480
Accumulated depreciation and amortization (1,138,941) (1,049,626)
---------- ---------- 2,414,529 2,649,854 Investment in
Unconsolidated Joint Ventures 87,791 89,933 Cash and cash
equivalents 18,886 62,126 Accounts and notes receivable, net 28,188
46,732 Accounts receivable from related parties 1,940 1,850
Deferred charges and other assets 55,867 124,487 ------ -------
2,607,201 2,974,982 ========= ========= Liabilities: Notes payable
2,686,239 2,796,821 Accounts payable and accrued liabilities
230,247 262,226 Dividends payable 22,002 Distributions in excess of
investments in and net income of Unconsolidated Joint Ventures
157,282 154,141 ------- ------- 3,073,768 3,235,190 Equity: Taubman
Centers, Inc. Shareowners' Equity: Series B Non- Participating
Convertible Preferred Stock 26 26 Series G Cumulative Redeemable
Preferred Stock Series H Cumulative Redeemable Preferred Stock
Common Stock 532 530 Additional paid-in capital 562,789 556,145
Accumulated other comprehensive income (loss) (25,829) (29,778)
Dividends in excess of net income (866,194) (726,097) --------
-------- (328,676) (199,174) Noncontrolling interests:
Noncontrolling interests in consolidated joint ventures (98,728)
(90,251) Noncontrolling interests in TRG (68,380) Preferred Equity
of TRG 29,217 29,217 ------ ------ (137,891) (61,034) --------
------- (466,567) (260,208) -------- -------- 2,607,201 2,974,982
========= ========= Combined Balance Sheet of Unconsolidated Joint
Ventures: Assets: Properties 1,091,847 1,087,341 Accumulated
depreciation and amortization (388,561) (366,168) -------- --------
703,286 721,173 Cash and cash equivalents 19,319 28,946 Accounts
and notes receivable 20,334 26,603 Deferred charges and other
assets 18,426 20,098 ------ ------ 761,365 796,820 ======= =======
Liabilities: Notes payable 1,095,655 1,103,903 Accounts payable and
other liabilities, net 43,773 61,570 ------ ------ 1,139,428
1,165,473 Accumulated Deficiency in Assets: Accumulated deficiency
in assets - TRG (199,167) (194,178) Accumulated deficiency in
assets - Joint Venture Partners (167,539) (160,862) Accumulated
other comprehensive income (loss) - TRG (6,057) (7,288) Accumulated
other comprehensive income (loss) - Joint Venture Partners (5,300)
(6,325) ------ ------ (378,063) (368,653) -------- -------- 761,365
796,820 ======= ======= TAUBMAN CENTERS, INC. Table 7 - Annual
Outlook ------------------------- (all dollar amounts per common
share on a diluted basis; amounts may not add due to rounding)
Range for Year Ended December 31, 2009 Before Range for Impairment
and Year Ended Restructuring Impairment Restructuring December
Charges Charges (1) Charge (2) 31, 2009 --------------- ----------
------------- ----------- Funds from Operations per common share
(3) 2.88 2.93 (1.98) (0.03) 0.87 0.92 Real estate depreciation -
TRG (1.83) (1.78) (1.83) (1.78) Distributions on participating
securities of TRG (0.02) (0.02) (0.02) (0.02) Depreciation of TCO's
additional basis in TRG (0.13) (0.13) (0.13) (0.13) ----- -----
---- ---- ----- ----- Net income (loss) attributable to common
shareowners, per common share (3) 0.91 1.01 (2.02) (0.03) (1.13)
(1.03) ==== ==== ===== ===== ===== ===== (1) In the third quarter
of 2009, the Company recognized impairment charges totaling $166.7
million on The Pier Shops and Regency Square to reduce their book
values to their fair values. TRG's share of these impairment
charges was $160.8 million. (2) In 2009, the Company recognized a
restructuring charge of $2.6 million, which represents primarily
the cost of terminations of personnel. (3) Per share amounts for
Funds from Operations are calculated using estimated average
diluted shares, which include the impact of common stock
equivalents. Per share amounts for net loss attributable to common
shareholders are calculated using estimated average outstanding
shares, which exclude the impact of common stock equivalents
because the impact is anti-dilutive to net loss per share.
http://www.newscom.com/cgi-bin/prnh/20080428/CLM116LOGODATASOURCE:
Taubman Centers, Inc. CONTACT: Barbara Baker, Taubman, Vice
President, Investor Relations, +1-248-258-7367, Web Site:
http://www.taubman.com/
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