- Managing through Challenging Retail Environment - Results
Consistent with Prior Guidance - Cost Saving Initiatives Contribute
to Results - Strong Balance Sheet BLOOMFIELD HILLS, Mich., July 23
/PRNewswire-FirstCall/ -- Taubman Centers, Inc. (NYSE:TCO) today
announced its financial results for the second quarter of 2009.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080428/CLM116LOGO )
Net income allocable to common shareholders per diluted share (EPS)
was $0.17 for the quarter ended June 30, 2009, up from $0.01 for
the quarter ended June 30, 2008. EPS for the six months ended June
30, 2009 was $0.38, up from $0.09 for the first six months of 2008.
Taubman Centers' Funds from Operations (FFO) per diluted share was
$0.65 for the quarter ended June 30, 2009 versus $0.66 for the
quarter ended June 30, 2008. For the six months ended June 30,
2009, Taubman Centers' FFO per diluted share was $1.35 versus $1.34
for the first six months of 2008. Excluding the restructuring
charge incurred in 2009, the company's Adjusted FFO per diluted
share for the six months ended June 30, 2009 was $1.38, an increase
of 3.0 percent from the first six months of 2008. "The environment
for retail real estate continues to be challenging," said Robert S.
Taubman, chairman, president and chief executive officer of Taubman
Centers. "Lease cancellation income from our tenants offset a
decline in rents. In addition, we are very focused on costs
throughout our organization, which contributed to our results
during the quarter." The company reported a four cent favorable
variance in expenses for the quarter. Operating Statistics Ending
occupancy for Taubman's portfolio was 88.6 percent on June 30, 2009
versus 90.1 percent on June 30, 2008, a decline primarily due to
the closing in late 2008 of three big box store locations at the
company's value centers, which were part of national bankruptcies.
Average rent per square foot in the company's 16 consolidated
properties for the second quarter of 2009 was $43.00, versus $44.40
for the second quarter of 2008. For the six months ended June 30,
2009, average rent per square foot in the consolidated properties
was $44.02 versus $44.06 in the six months ended June 30, 2008.
Mall tenant sales per square foot declined 11.2 percent from the
second quarter of 2008. For the twelve months ended June 30, 2009,
mall tenant sales per square foot were down 9.8 percent to $508 per
square foot. "Weakness in the U.S. economy continues to impact
retailers," said Mr. Taubman. "As expected, this was reflected in
our operating results. Nonetheless, leasing continues to be active
with retailers planning openings in 2010 and 2011, when they expect
conditions to improve." Strong Balance Sheet "Our strong balance
sheet is providing the operating flexibility to weather these tough
conditions," said Lisa A. Payne, vice chairman and chief financial
officer of Taubman Centers. "We have no debt maturities until the
fall of 2010 and collectively through 2011, only about 13 percent
of our share of total debt matures." The company's secured credit
lines total $590 million and mature in 2011 with a one year
extension option to 2012 on $550 million of the lines. As of June
30, $382 million was available for use. Guidance The company is
modestly narrowing its guidance on 2009 FFO per diluted share from
the previously announced $2.69 to $2.94 to $2.70 to $2.90.
Excluding the restructuring charge that was recognized in 2009, the
company expects 2009 Adjusted FFO per diluted share to be in the
range of $2.73 to $2.93. The company also is modestly narrowing its
guidance for 2009 EPS to $0.71 to $0.96. 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 Statement -- Earnings
Reconciliations -- Changes in Funds from Operations and Earnings
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
11:00 a.m. (EDT) on July 24 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 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. The company's
Taubman Asia subsidiary is working on retail projects in Macao,
China and Incheon, South Korea. Taubman Centers is headquartered in
Bloomfield Hills, Michigan. For more information about Taubman,
visit http://www.taubman.com/. For ease of use, references in this
press release to "Taubman Centers," "Taubman," or the "company"
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 ongoing U.S.
recession, the existing global credit and financial crisis and
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 June 30, 2009 and 2008
-------------------------------------------- (in thousands of
dollars, except as indicated) Three Months Ended Six Months Ended
------------------ ---------------- 2009 2008 (1) 2009 2008 (1)
---- -------- ---- -------- Net income (1), (2) 20,866 21,414
45,392 44,930 Noncontrolling share of income of consolidated joint
ventures (1) (2,033) (1,130) (3,726) (2,306) Distributions in
excess of noncontrolling share of income of consolidated joint
ventures (1) (4,258) (6,395) Noncontrolling share of income of TRG
(1) (5,290) (4,505) (11,876) (10,421) Distributions in excess of
noncontrolling share of income of TRG (1) (6,513) (11,617) TRG
preferred distributions (615) (615) (1,230) (1,230) Preferred stock
dividends (3,659) (3,659) (7,317) (7,317) Distributions to
participating securities of TRG (361) (361) (836) (724) Net income
attributable to Taubman Centers, Inc. common shareowners (1) 8,908
373 20,407 4,920 Net income per common share - basic and diluted
(1) 0.17 0.01 0.38 0.09 Beneficial interest in EBITDA -Consolidated
Businesses (2), (3) 75,087 75,360 152,776 152,577 Beneficial
interest in EBITDA -Unconsolidated Joint Ventures (3) 22,536 22,644
46,484 45,758 Funds from Operations (2), (3) 52,390 53,213 108,960
107,969 Funds from Operations attributable to TCO (2), (3) 34,968
35,421 72,726 71,824 Funds from Operations per common share - basic
(2), (3) 0.66 0.67 1.37 1.36 Funds from Operations per common share
-diluted (2), (3) 0.65 0.66 1.35 1.34 Weighted average number of
common shares outstanding - basic 53,120,769 52,859,653 53,093,988
52,767,430 Weighted average number of common shares outstanding -
diluted 53,666,868 53,431,974 53,466,563 53,348,232 Common shares
outstanding at end of period 53,120,769 52,892,604 Weighted average
units - Operating Partnership - basic 79,558,454 79,411,822
79,532,928 79,322,237 Weighted average units - Operating
Partnership - diluted 80,975,814 80,855,405 80,776,764 80,774,301
Units outstanding at end of period - Operating Partnership
79,558,454 79,440,048 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) 994,811 1,116,027 1,936,280 2,199,635 Ending
occupancy 88.6% 90.1% 88.6% 90.1% Average occupancy 88.7% 90.0%
88.8% 90.0% Leased space at end of period 91.1% 92.7% 91.1% 92.7%
Mall tenant occupancy costs as a percentage of tenant sales -
Consolidated Businesses (4) 16.7% 15.4% 17.5% 15.6% Mall tenant
occupancy costs as a percentage of tenant sales - Unconsolidated
Joint Ventures (4) 15.7% 13.7% 15.9% 13.8% Rent per square foot -
Consolidated Businesses 43.00 44.40 44.02 44.06 Rent per square
foot - Unconsolidated Joint Ventures 44.24 45.40 44.56 44.84 (1) In
January of 2009, the Company adopted Statement No. 160
"Noncontrolling Interests in Consolidated Financial Statements - an
amendment of ARB No. 51" (SFAS 160). 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 attributable 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 income attributable to Taubman Centers, Inc.
common shareowners for the three and six months ended June 30, 2009
would have been $1.6 and $6.1 million, respectively or $0.03 and
$0.11 per common share, respectively if accounted for under the
previous method of accounting for noncontrolling interests prior to
SFAS 160. Certain 2008 amounts within tables 1 to 6 of this press
release have been reclassified to conform with 2009
classifications. (2) Includes $0.2 million and $2.6 million of
restructuring charges for the three and six months ended June 30,
2009, respectively. No similar charges were incurred in 2008. (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
June 30, 2009 and 2008
--------------------------------------------------- (in thousands
of dollars) 2009 2008 (1) ---- -------- UNCONSOL- UNCONSOL- IDATED
IDATED CONSOLIDATED JOINT CONSOLIDATED JOINT BUSINESSES VENTURES
(2) BUSINESSES VENTURES (2) ------------ ------------ ------------
------------ REVENUES: Minimum rents 84,016 38,553 87,583 38,797
Percentage rents 561 95 1,325 458 Expense recoveries 58,525 23,819
60,384 21,664 Management, leasing, and development services 3,189
3,891 Other 12,648 1,187 7,229 2,578 ------ ----- ----- ----- Total
revenues 158,939 63,654 160,412 63,497 EXPENSES: Maintenance,
taxes, and utilities 46,946 16,296 46,485 16,080 Other operating
16,352 5,965 19,695 5,587 Restructuring charge (3) 169 Management,
leasing, and development services 1,930 2,421 General and
administrative 6,847 7,943 Interest expense 36,473 16,120 35,972
16,278 Depreciation and amortization 36,058 9,911 36,179 9,839
------ ----- ------ ----- Total expenses 144,775 48,292 148,695
47,784 Gains on land sales and other nonoperating income 198 3
1,456 160 Impairment loss on marketable securities (4) (1,666)
------ ------ ------ ------ 12,696 15,365 13,173 15,873 ======
====== Income tax expense (198) (250) Equity in income of
Unconsolidated Joint Ventures 8,368 8,491 ----- ----- Net income
20,866 21,414 Net income attributable to noncontrolling interests:
Noncontrolling share of income of consolidated joint ventures
(2,033) (1,130) Distributions in excess of noncontrolling share of
income of consolidated joint ventures (4,258) TRG series F
preferred distributions (615) (615) Noncontrolling share of income
of TRG (5,290) (4,505) Distributions in excess of noncontrolling
share of income of TRG (6,513) Distributions to participating
securities of TRG (361) (361) Preferred stock dividends (3,659)
(3,659) ------ ------ Net income attributable to Taubman Centers,
Inc. common shareowners 8,908 373 ===== === SUPPLEMENTAL
INFORMATION: EBITDA - 100% (3) 85,227 41,396 85,324 41,990 EBITDA -
outside partners' share (3) (10,140) (18,860) (9,964) (19,346)
------- ------- ------ ------- Beneficial interest in EBITDA (3)
75,087 22,536 75,360 22,644 Beneficial interest expense (31,538)
(8,369) (31,065) (8,457) Beneficial income tax expense (198) (250)
Non-real estate depreciation (854) (745) Preferred dividends and
distributions (4,274) (4,274) ------ ------ ------ ------ Funds
from Operations contribution (3) 38,223 14,167 39,026 14,187 ======
====== ====== ====== Net straightline adjustments to rental
revenue, recoveries, and ground rent expense at TRG % 80 104 475 52
== === === == (1) Certain amounts have been reclassified to conform
to 2009 classifications. (2) 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. (3) In 2009, the Company recognized a restructuring
charge which primarily represents the costs of termination of
personnel. (4) The marketable securities represent shares in a
Vanguard REIT fund that were purchased to facilitate a tax
efficient structure for the 2005 disposition of Woodland mall.
Until now, the Company marked to market this investment through
other comprehensive income on the balance sheet. The Company
concluded this quarter that the impairment is no longer temporary,
and therefore recognized a loss through its income statement. The
balance of the securities was $1.2 million as of June 30, 2009, and
is included in Deferred Charges and Other Assets. To preserve the
original tax planning it continues to be necessary to carry this
investment. There are no other assets of this type on the Company's
balance sheet. TAUBMAN CENTERS, INC. Table 3 - Income Statement For
the Six Months Ended June 30, 2009 and 2008
------------------------------------------------- (in thousands of
dollars) 2009 2008 (1) ---- -------- UNCONSOL- UNCONSOL- IDATED
IDATED CONSOLIDATED JOINT CONSOLIDATED JOINT BUSINESSES VENTURES
(2) BUSINESSES VENTURES (2) ------------ ------------ ------------
------------ REVENUES: Minimum rents 171,452 77,520 174,153 77,208
Percentage rents 2,721 1,203 3,900 1,919 Expense recoveries 115,283
47,645 117,848 44,078 Management, leasing, and development services
6,745 7,585 Other 20,428 3,376 14,343 4,366 ------ ----- ------
----- Total revenues 316,629 129,744 317,829 127,571 EXPENSES:
Maintenance, taxes, and utilities 91,487 32,333 90,025 31,428 Other
operating 31,317 12,353 37,996 12,134 Restructuring charge (3)
2,630 Management, leasing, and development services 3,836 4,678
General and administrative 13,735 16,276 Interest expense 72,706
32,070 72,954 32,153 Depreciation and amortization 72,351 19,348
71,514 19,462 ------ ------ ------ ------ Total expenses 288,062
96,104 293,443 95,177 Gains on land sales and other nonoperating
income 433 57 3,259 479 Impairment loss on marketable securities
(4) (1,666) ------ ------ ------ ------ 27,334 33,697 27,645 32,873
====== ====== Income tax expense (468) (440) Equity in income of
Unconsolidated Joint Ventures 18,526 17,725 ------ ------ Net
income 45,392 44,930 Net income attributable to noncontrolling
interests: Noncontrolling share of income of consolidated joint
ventures (3,726) (2,306) Distributions in excess of noncontrolling
share of income of consolidated joint ventures (6,395) TRG series F
preferred distributions (1,230) (1,230) Noncontrolling share of
income of TRG (11,876) (10,421) Distributions in excess of
noncontrolling share of income of TRG (11,617) Distributions to
participating securities of TRG (836) (724) Preferred stock
dividends (7,317) (7,317) ------ ------ Net income attributable to
Taubman Centers, Inc. common shareowners 20,407 4,920 ====== =====
SUPPLEMENTAL INFORMATION: EBITDA - 100% (3) 172,391 85,115 172,113
84,488 EBITDA - outside partners' share (3) (19,615) (38,631)
(19,536) (38,730) ------- ------- ------- ------- Beneficial
interest in EBITDA (3) 152,776 46,484 152,577 45,758 Beneficial
interest expense (62,898) (16,653) (63,219) (16,719) Beneficial
income tax expense (468) (440) Non-real estate depreciation (1,734)
(1,441) Preferred dividends and distributions (8,547) (8,547)
------ ------ ------ ------ Funds from Operations contribution (3)
79,129 29,831 78,930 29,039 ====== ====== ====== ====== Net
straightline adjustments to rental revenue, recoveries, and ground
rent expense at TRG % 159 159 1,068 113 === === ===== === (1)
Certain amounts have been reclassified to conform to 2009
classifications. (2) 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. (3) In
2009, the Company recognized restructuring charges, which primarily
represent the costs of termination of personnel. (4) The marketable
securities represent shares in a Vanguard REIT fund that were
purchased to facilitate a tax efficient structure for the 2005
disposition of Woodland mall. Until now, the Company marked to
market this investment through other comprehensive income on the
balance sheet. The Company concluded this quarter that the
impairment is no longer temporary, and therefore recognized a loss
through its income statement. The balance of the securities was
$1.2 million as of June 30, 2009, and is included in Deferred
Charges and Other Assets. To preserve the original tax planning it
continues to be necessary to carry this investment. There are no
other assets of this type on the Company's balance sheet. TAUBMAN
CENTERS, INC. Table 4 - Reconciliation of Net Income Attributable
to Taubman Centers, Inc. Common Shareowners to Funds from
Operations and Adjusted Funds from Operations For the Periods Ended
June 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 (1) 2009 2008 (1) ---- --------
---- -------- Net income attributable to TCO common shareowners
8,908 373 20,407 4,920 Add (less) depreciation and amortization:
Consolidated businesses at 100% 36,058 36,179 72,351 71,514
Noncontrolling partners in consolidated joint ventures (3,172)
(3,927) (6,081) (7,495) Share of Unconsolidated Joint Ventures
5,799 5,696 11,305 11,314 Non-real estate depreciation (854) (745)
(1,734) (1,441) Add noncontrolling interests: Noncontrolling share
of income of TRG 5,290 4,505 11,876 10,421 Distributions in excess
of noncontrolling share of income of TRG 6,513 11,618 Distributions
in excess of noncontrolling share of income of consolidated joint
ventures 4,258 6,395 Add distributions to participating securities
of TRG 361 361 836 723 --- --- --- --- Funds from Operations 52,390
53,213 108,960 107,969 TCO's average ownership percentage of TRG
66.8% 66.6% 66.8% 66.5% ---- ---- ---- ---- Funds from Operations
attributable to TCO 34,968 35,421 72,726 71,824 ====== ======
====== ====== Funds from Operations 52,390 53,213 108,960 107,969
Restructuring charge 169 2,630 --- --- ----- --- Adjusted Funds
from Operations (2) 52,559 53,213 111,590 107,969 TCO's average
ownership percentage of TRG 66.8% 66.6% 66.8% 66.5% ---- ---- ----
---- Adjusted Funds from Operations attributable to TCO (2) 35,081
35,421 74,482 71,824 ====== ====== ====== ====== (1) Certain
amounts have been reclassified to conform to 2009 classifications.
(2) FFO for the three and six months ended June 30, 2009 includes,
and Adjusted FFO excludes, the restructuring charges which
primarily represent the costs of termination of personnel. The
Company discloses this Adjusted FFO due to the significance and
infrequent nature of the 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 to Beneficial Interest in EBITDA For
the Periods Ended June 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 (1) 2009 2008 (1) ---- -------- ---- -------- Net income
20,866 21,414 45,392 44,930 Add (less) depreciation and
amortization: Consolidated businesses at 100% 36,058 36,179 72,351
71,514 Noncontrolling partners in consolidated joint ventures
(3,172) (3,927) (6,081) (7,495) Share of Unconsolidated Joint
Ventures 5,799 5,696 11,305 11,314 Add (less) interest expense and
income tax expense: Interest expense: Consolidated businesses at
100% 36,473 35,972 72,706 72,954 Noncontrolling partners in
consolidated joint ventures (4,935) (4,907) (9,808) (9,735) Share
of Unconsolidated Joint Ventures 8,369 8,457 16,653 16,719 Income
tax expense 198 250 468 440 Less noncontrolling share of income of
consolidated joint ventures (2,033) (1,130) (3,726) (2,306) ------
------ ------ ------ Beneficial Interest in EBITDA 97,623 98,004
199,260 198,335 TCO's average ownership percentage of TRG 66.8%
66.6% 66.8% 66.5% ---- ---- ---- ---- Beneficial Interest in EBITDA
attributable to TCO 65,212 65,235 133,004 131,937 ====== ======
======= ======= (1) Certain amounts have been reclassified to
conform to 2009 classifications. TAUBMAN CENTERS, INC. Table 6 -
Balance Sheets As of June 30, 2009 and December 31, 2008
----------------------------------------- (in thousands of dollars)
As of -------- June 30, 2009 December 31, 2008 -------------
----------------- Consolidated Balance Sheet of Taubman Centers,
Inc. (1): Assets: Properties 3,708,342 3,699,480 Accumulated
depreciation and amortization (1,106,675) (1,049,626) ----------
---------- 2,601,667 2,649,854 Investment in Unconsolidated Joint
Ventures 88,636 89,933 Cash and cash equivalents 11,772 62,126
Accounts and notes receivable, net 32,761 46,732 Accounts
receivable from related parties 1,686 1,850 Deferred charges and
other assets 121,722 124,487 ------- ------- 2,858,244 2,974,982
========= ========= Liabilities: Notes payable 2,758,938 2,796,821
Accounts payable and accrued liabilities 234,068 262,226 Dividends
and distributions payable 22,002 Distributions in excess of
investments in and net income of Unconsolidated Joint Ventures
155,141 154,141 ------- ------- 3,148,147 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 531 530 Additional paid-in capital 559,240 556,145
Accumulated other comprehensive income (loss) (26,498) (29,778)
Dividends in excess of net income (749,965) (726,097) --------
-------- (216,666) (199,174) Noncontrolling interests:
Noncontrolling interests in consolidated joint ventures (90,579)
(90,251) Noncontrolling interests in TRG (11,875) Preferred Equity
of TRG 29,217 29,217 ------ ------ (73,237) (61,034) -------
------- (289,903) (260,208) -------- -------- 2,858,244 2,974,982
========= ========= (1) Certain 2008 amounts have been reclassified
to conform to 2009 classifications. Combined Balance Sheet of
Unconsolidated Joint Ventures: Assets: Properties 1,090,505
1,087,341 Accumulated depreciation and amortization (381,331)
(366,168) -------- -------- 709,174 721,173 Cash and cash
equivalents 19,196 28,946 Accounts and notes receivable 18,560
26,603 Deferred charges and other assets 19,904 20,098 ------
------ 766,834 796,820 ======= ======= Liabilities: Notes payable
1,098,370 1,103,903 Accounts payable and other liabilities, net
42,235 61,570 ------ ------ 1,140,605 1,165,473 Accumulated
Deficiency in Assets: Accumulated deficiency in assets - TRG
(197,205) (194,178) Accumulated deficiency in assets - Joint
Venture Partners (165,452) (160,862) Accumulated other
comprehensive income (loss) - TRG (5,970) (7,288) Accumulated other
comprehensive income (loss) - Joint Venture Partners (5,144)
(6,325) ------ ------ (373,771) (368,653) -------- -------- 766,834
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, Range for 2009 Before
Restructuring Year Ended Restructuring December Charge Charge (1)
31, 2009 ------------- ---------- --------- Funds from Operations
per common share 2.73 2.93 (0.03) 2.70 2.90 Real estate
depreciation - TRG (1.84) (1.79) (1.84) (1.79) 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 attributable to
common shareowners, per common share 0.74 0.99 (0.03) 0.71 0.96
==== ==== ===== ==== ==== (1) In 2009, the Company recognized a
restructuring charge of $2.6 million, which represents primarily
the cost of terminations of personnel.
http://www.newscom.com/cgi-bin/prnh/20080428/CLM116LOGODATASOURCE:
Taubman Centers, Inc. CONTACT: Barbara Baker, Vice President,
Investor Relations of Taubman, +1-248-258-7367, Web Site:
http://www.taubman.com/
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