BLOOMFIELD HILLS, Mich., July 27, 2010 /PRNewswire via COMTEX/ --
Mall Tenant Sales per Square Foot Up 12.1 Percent
Arizona Mills, Partridge Creek Financings Complete
Company Increases Guidance on Improved Operations
Taubman Centers, Inc.
(TCO) today announced its financial results for the second quarter of 2010.
(Logo:
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Net income allocable to common shareholders per diluted share (EPS) was $0.14 for the quarter ended June 30, 2010 versus $0.17 for the quarter ended June 30, 2009. EPS for the six months ended June 30, 2010 was $0.25 versus $0.38 for the first six months of 2009.
Taubman Centers' Funds from Operations (FFO) per diluted share was $0.61 for the quarter ended June 30, 2010 versus $0.65 for the quarter ended June 30, 2009. For the six months ended June 30, 2010, Taubman Centers' FFO per diluted share was $1.21 versus $1.35 for the first six months of 2009.
"We're pleased with the results for the quarter, which we believe bodes well for the full year," said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. "Our net operating income excluding lease cancellation revenue was nearly even with last year and our bankruptcies remained very low for the quarter. Although we remain cautious, we are seeing signs of the economic recovery."
Sales Continue to Surge; Occupancy and Rents as Expected
Tenant sales per square foot were very strong in the quarter, up 12.1 percent, bringing the year to date increase to 11.4 percent and the company's 12-month trailing sales per square foot to $523. "Led by our centers in Michigan and Florida, more than half our centers had sales per square foot increases in the double digits for the quarter," said Mr. Taubman. "It's clear the consumer is spending in our centers."
Leased space for Taubman's portfolio was 90.8 percent on June 30, 2010 versus 91.3 percent on June 30, 2009. Average rent per square foot for the second quarter of 2010 was $43.20 versus $43.40 in the second quarter of 2009. For the six months ended June 30, 2010, average rent per square foot was $43.20 versus $44.30 in the six months ended June 30, 2009.
"These statistics are on track with our expectations," said Mr. Taubman. "We continue to project that occupancy will end the year even with 2009 and that full year 2010 opening rents will improve over 2009 levels."
Financings Completed for Arizona Mills and Partridge Creek
The refinancing of Arizona Mills (Phoenix, Ariz.), a 50 percent owned property, was completed in early July. The new 10-year $175 million non-recourse loan bears interest at an all-in rate of 5.83 percent, with amortizing principal based on 30 years. Proceeds from the refinancing were used to pay off the existing $131.0 million 7.90 percent loan, with excess amounts distributed to the partners.
As previously announced, The Mall at Partridge Creek (Clinton Township, Mich.) was financed in late June. The new 10-year $82.5 million non-recourse loan bears interest at an all-in rate of 6.25 percent, with amortizing principal based on 30 years. Previously the property was encumbered by a $73.8 million floating rate construction loan.
"Conditions in the capital markets have improved markedly over the past several months, particularly for good sponsors and good assets," said Lisa A. Payne, vice chairman and chief financial officer of Taubman Centers. "We were pleased with the amount of proceeds and interest rates on these two new loans. We are now focused on our final 2010 maturity, a $128 million loan on MacArthur Center (Norfolk, Va.), which we expect to refinance in the third quarter."
Guidance Increasing; Ranges Narrowed
The company is increasing the lower end of its guidance range for 2010 FFO per diluted share from the previously announced $2.55 to $2.75 to $2.65 to $2.75. This reflects improved performance of core operations, partially offset by the negative effect of continued ownership of The Pier at Caesars (Atlantic City, NJ), now estimated to impact results through the third quarter. The company also is adjusting its guidance for 2010 EPS from a range of $0.64 to $0.89 to a range of $0.72 to $0.88.
Supplemental Investor Information Available
The company provides supplemental investor information along with its earnings announcements, available online at
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 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 9:00 a.m. (EDT) on July 28 to discuss these results, business conditions, growth prospects and the company's outlook for the remainder of 2010. The conference call will be simulcast at
under "Investor Relations" as well as
and
. 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, leasing and management of regional and super regional shopping centers. Taubman's 26 U.S. owned, leased 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. Founded in 1950, Taubman celebrates its 60th anniversary in 2010. For more information about Taubman, visit
.
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 June 30, 2010 and 2009
(in thousands of dollars, except as indicated)
Three Months Ended
------------------
2010
2009
----
----
Net income
18,484
20,866
Noncontrolling share of income of
consolidated joint ventures
(1,968)
(2,033)
Noncontrolling share of income of TRG
(4,428)
(5,290)
TRG series F preferred distributions
(615)
(615)
Preferred stock dividends
(3,659)
(3,659)
Distributions to participating securities
of TRG
(361)
(361)
Net income attributable to Taubman
Centers, Inc. common shareowners
7,453
8,908
Net income per common share -basic &
diluted
0.14
0.17
Beneficial interest in EBITDA -
Consolidated Businesses (1)
73,170
75,087
Beneficial interest in EBITDA -
Unconsolidated Joint Ventures (1)
23,076
22,536
Funds from Operations (1)
50,143
52,390
Funds from Operations attributable to TCO
(1)
33,816
34,968
Funds from Operations per common share -
basic (1)
0.62
0.66
Funds from Operations per common share -
diluted (1)
0.61
0.65
Adjusted Funds from Operations (1)
50,143
52,559
Adjusted Funds from Operations
attributable to TCO (1)
33,816
35,081
Adjusted Funds from Operations per common
share -basic (1)
0.62
0.66
Adjusted Funds from Operations per common
share -diluted (1)
0.61
0.65
Weighted average number of common shares
outstanding -basic
54,550,964
53,120,769
Weighted average number of common shares
outstanding -diluted
55,611,887
53,666,868
Common shares outstanding at end of
period
54,679,545
53,120,769
Weighted average units -Operating
Partnership -basic
80,888,325
79,558,454
Weighted average units -Operating
Partnership -diluted
82,820,510
80,975,814
Units outstanding at end of period -
Operating Partnership
80,931,121
79,558,454
Ownership percentage of the Operating
Partnership at end of period
67.6%
66.8%
Number of owned shopping centers at end
of period
23
23
Operating Statistics (2):
Mall tenant sales (3)
1,062,263
968,964
Ending occupancy
87.9%
88.8%
Average occupancy
88.0%
88.9%
Leased space at end of period
90.8%
91.3%
Mall tenant occupancy costs as a
percentage of tenant sales -
Consolidated Businesses (3)
15.0%
16.8%
Mall tenant occupancy costs as a
percentage of tenant sales -
Unconsolidated Joint Ventures (3)
14.1%
15.7%
Mall tenant occupancy costs as a
percentage of tenant sales -Combined
(3)
14.7%
16.4%
Rent per square foot -Consolidated
Businesses
42.96
43.04
Rent per square foot -Unconsolidated
Joint Ventures
43.64
44.24
Rent per square foot - Combined
43.20
43.40
Six Months Ended
----------------
2010
2009
----
----
Net income
35,297
45,392
Noncontrolling share of income of
consolidated joint ventures
(3,981)
(3,726)
Noncontrolling share of income of TRG
(8,310)
(11,876)
TRG series F preferred distributions
(1,230)
(1,230)
Preferred stock dividends
(7,317)
(7,317)
Distributions to participating securities
of TRG
(723)
(836)
Net income attributable to Taubman
Centers, Inc. common shareowners
13,736
20,407
Net income per common share -basic &
diluted
0.25
0.38
Beneficial interest in EBITDA -
Consolidated Businesses (1)
145,197
152,776
Beneficial interest in EBITDA -
Unconsolidated Joint Ventures (1)
46,491
46,484
Funds from Operations (1)
99,874
108,960
Funds from Operations attributable to TCO
(1)
67,303
72,726
Funds from Operations per common share -
basic (1)
1.24
1.37
Funds from Operations per common share -
diluted (1)
1.21
1.35
Adjusted Funds from Operations (1)
99,874
111,590
Adjusted Funds from Operations
attributable to TCO (1)
67,303
74,482
Adjusted Funds from Operations per common
share -basic (1)
1.24
1.40
Adjusted Funds from Operations per common
share -diluted (1)
1.21
1.38
Weighted average number of common shares
outstanding -basic
54,454,579
53,093,988
Weighted average number of common shares
outstanding -diluted
55,490,935
53,466,563
Common shares outstanding at end of
period
Weighted average units -Operating
Partnership -basic
80,806,530
79,532,928
Weighted average units -Operating
Partnership -diluted
82,714,146
80,776,764
Units outstanding at end of period -
Operating Partnership
Ownership percentage of the Operating
Partnership at end of period
Number of owned shopping centers at end
of period
23
23
Operating Statistics (2):
Mall tenant sales (3)
2,067,444
1,890,122
Ending occupancy
87.9%
88.8%
Average occupancy
88.2%
88.9%
Leased space at end of period
90.8%
91.3%
Mall tenant occupancy costs as a
percentage of tenant sales -
Consolidated Businesses (3)
15.4%
17.6%
Mall tenant occupancy costs as a
percentage of tenant sales -
Unconsolidated Joint Ventures (3)
14.3%
15.9%
Mall tenant occupancy costs as a
percentage of tenant sales -Combined
(3)
15.0%
17.1%
Rent per square foot -Consolidated
Businesses
42.96
44.18
Rent per square foot -Unconsolidated
Joint Ventures
43.72
44.56
Rent per square foot - Combined
43.20
44.30
(1)
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 Company uses Net Operating Income (NOI), as an alternative
measure to evaluate the operating performance of centers, both on
individual and stabilized portfolio bases. The Company defines NOI as
property-level operating revenues (includes rental income excluding
straightline adjustments of minimum rent) less maintenance, taxes,
utilities, ground rent, and other property operating expenses. Since
NOI excludes general and administrative expenses, pre-development
charges, interest income and expense, depreciation and amortization,
impairment charges, restructuring charges, and gains from land and
property dispositions, it provides a performance measure that, when
compared period over period, reflects the revenues and expenses most
directly associated with owning and operating rental properties, as
well as the impact on their operations from trends in tenant sales,
occupancy and rental rates, and operating costs. The Company also
uses NOI excluding lease cancellation income as an alternative
measure because this income may vary significantly from period to
period, which can affect comparability and trend analysis. The
Company generally provides separate projections for expected NOI
growth and lease cancellation income.
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.
The Company primarily uses FFO in measuring performance and in
formulating corporate goals and compensation. The Company may also
present adjusted versions of NOI, Beneficial Interest in EBITDA, and
FFO when used by management to evaluate operating performance when
certain significant items have impacted results that affect
comparability with prior or future periods due to the nature or
amounts of these items. For the three and six months ended June 30,
2009, FFO was adjusted for a restructuring charge.
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.
(2)
Statistics exclude The Pier Shops.
(3)
Based on reports of sales furnished by mall tenants.
TAUBMAN CENTERS, INC.
Table 2 - Income Statement
For the Three Months Ended June 30, 2010 and 2009
(in thousands of dollars)
2010
----
CONSOLIDATED
UNCONSOLIDATED
JOINT VENTURES
BUSINESSES
(1)
----------
--------------
REVENUES:
Minimum rents
84,081
38,092
Percentage rents
1,061
477
Expense recoveries
56,334
23,477
Management, leasing, and development
services
4,007
Other
8,599
1,676
-----
-----
Total revenues
154,082
63,722
EXPENSES:
Maintenance, taxes, and utilities
44,535
16,516
Other operating
18,542
5,463
Restructuring charge
Management, leasing, and development
services
2,185
General and administrative
7,036
Interest expense
37,923
15,916
Depreciation and amortization
35,918
9,104
------
-----
Total expenses
146,139
46,999
Nonoperating income
1,150
(11)
Impairment loss on marketable
securities
9,093
16,712
======
Income tax expense
(114)
Equity in income of Unconsolidated
Joint Ventures
9,505
-----
Net income
18,484
Net income attributable to
noncontrolling interests:
Noncontrolling share of income of
consolidated joint ventures
(1,968)
TRG series F preferred distributions
(615)
Noncontrolling share of income of
TRG
(4,428)
Distributions to participating
securities of TRG
(361)
Preferred stock dividends
(3,659)
------
Net income attributable to Taubman
Centers, Inc. common shareowners
7,453
=====
SUPPLEMENTAL INFORMATION:
EBITDA - 100%
82,934
41,732
EBITDA - outside partners' share
(9,764)
(18,656)
------
-------
Beneficial interest in EBITDA
73,170
23,076
Beneficial interest expense
(32,630)
(8,248)
Beneficial income tax expense
(114)
Non-real estate depreciation
(837)
Preferred dividends and
distributions
(4,274)
------
Fund from Operations contribution
35,315
14,828
======
======
Net straightline adjustments to
rental revenue, recoveries,
and ground rent expense at TRG %
58
21
===
===
2009
----
CONSOLIDATED
UNCONSOLIDATED
JOINT VENTURES
BUSINESSES
(1)
----------
---------------
REVENUES:
Minimum rents
84,016
38,553
Percentage rents
561
95
Expense recoveries
58,525
23,819
Management, leasing, and development
services
3,189
Other
12,648
1,187
------
-----
Total revenues
158,939
63,654
EXPENSES:
Maintenance, taxes, and utilities
46,946
16,296
Other operating
16,352
5,965
Restructuring charge
169
Management, leasing, and development
services
1,930
General and administrative
6,847
Interest expense
36,473
16,120
Depreciation and amortization
36,058
9,911
------
-----
Total expenses
144,775
48,292
Nonoperating income
198
3
Impairment loss on marketable
securities
(1,666)
------
12,696
15,365
======
Income tax expense
(198)
Equity in income of Unconsolidated
Joint Ventures
8,368
-----
Net income
20,866
Net income attributable to
noncontrolling interests:
Noncontrolling share of income of
consolidated joint ventures
(2,033)
TRG series F preferred distributions
(615)
Noncontrolling share of income of
TRG
(5,290)
Distributions to participating
securities of TRG
(361)
Preferred stock dividends
(3,659)
------
Net income attributable to Taubman
Centers, Inc. common shareowners
8,908
=====
SUPPLEMENTAL INFORMATION:
EBITDA - 100%
85,227
41,396
EBITDA - outside partners' share
(10,140)
(18,860)
-------
-------
Beneficial interest in EBITDA
75,087
22,536
Beneficial interest expense
(31,538)
(8,369)
Beneficial income tax expense
(198)
Non-real estate depreciation
(854)
Preferred dividends and
distributions
(4,274)
------
Fund from Operations contribution
38,223
14,167
======
======
Net straightline adjustments to
rental revenue, recoveries,
and ground rent expense at TRG %
80
104
===
===
(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.
TAUBMAN CENTERS, INC.
Table 3 - Income Statement
For the Six Months Ended June 30, 2010 and 2009
(in thousands of dollars)
2010
----
CONSOLIDATED
UNCONSOLIDATED
JOINT VENTURES
BUSINESSES
(1)
----------
--------------
REVENUES:
Minimum rents
167,435
76,036
Percentage rents
3,135
1,469
Expense recoveries
109,255
45,816
Management, leasing, and development
services
7,063
Other
18,683
3,741
------
-----
Total revenues
305,571
127,062
EXPENSES:
Maintenance, taxes, and utilities
87,611
32,363
Other operating
36,347
10,071
Restructuring charge
Management, leasing, and development
services
3,778
General and administrative
14,425
Interest expense
75,340
31,734
Depreciation and amortization
73,002
18,628
------
------
Total expenses
290,503
92,796
Nonoperating Income
1,299
1
Impairment loss on marketable
securities
16,367
34,267
======
Income tax expense
(310)
Equity in income of Unconsolidated
Joint Ventures
19,240
------
Net income
35,297
Net income attributable to
noncontrolling interests:
Noncontrolling share of income of
consolidated joint ventures
(3,981)
TRG series F preferred distributions
(1,230)
Noncontrolling share of income of
TRG
(8,310)
Distributions to participating
securities of TRG
(723)
Preferred stock dividends
(7,317)
------
Net income attributable to Taubman
Centers, Inc. common shareowners
13,736
======
SUPPLEMENTAL INFORMATION:
EBITDA - 100%
164,709
84,629
EBITDA - outside partners' share
(19,512)
(38,138)
-------
-------
Beneficial interest in EBITDA
145,197
46,491
Beneficial interest expense
(64,827)
(16,450)
Beneficial income tax expense
(310)
Non-real estate depreciation
(1,680)
Preferred dividends and
distributions
(8,547)
------
Funds from Operations contribution
69,833
30,041
======
======
Net straightline adjustments to
rental revenue, recoveries,
(178)
(120)
and ground rent expense at TRG %
====
====
2009
----
CONSOLIDATED
UNCONSOLIDATED
JOINT VENTURES
BUSINESSES
(1)
----------
--------------
REVENUES:
Minimum rents
171,452
77,520
Percentage rents
2,721
1,203
Expense recoveries
115,283
47,645
Management, leasing, and development
services
6,745
Other
20,428
3,376
------
-----
Total revenues
316,629
129,744
EXPENSES:
Maintenance, taxes, and utilities
91,487
32,333
Other operating
31,317
12,353
Restructuring charge
2,630
Management, leasing, and development
services
3,836
General and administrative
13,735
Interest expense
72,706
32,070
Depreciation and amortization
72,351
19,348
------
------
Total expenses
288,062
96,104
Nonoperating Income
433
57
Impairment loss on marketable
securities
(1,666)
------
27,334
33,697
======
Income tax expense
(468)
Equity in income of Unconsolidated
Joint Ventures
18,526
------
Net income
45,392
Net income attributable to
noncontrolling interests:
Noncontrolling share of income of
consolidated joint ventures
(3,726)
TRG series F preferred distributions
(1,230)
Noncontrolling share of income of
TRG
(11,876)
Distributions to participating
securities of TRG
(836)
Preferred stock dividends
(7,317)
------
Net income attributable to Taubman
Centers, Inc. common shareowners
20,407
======
SUPPLEMENTAL INFORMATION:
EBITDA - 100%
172,391
85,115
EBITDA - outside partners' share
(19,615)
(38,631)
-------
-------
Beneficial interest in EBITDA
152,776
46,484
Beneficial interest expense
(62,898)
(16,653)
Beneficial income tax expense
(468)
Non-real estate depreciation
(1,734)
Preferred dividends and
distributions
(8,547)
------
Funds from Operations contribution
79,129
29,831
======
======
Net straightline adjustments to
rental revenue, recoveries,
159
158
and ground rent expense at TRG %
===
===
(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.
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 Three Months Ended June 30, 2010 and 2009
(in thousands of dollars except as noted; may not add or recalculate
due to rounding)
2010
----
Dollars
Shares
Per
-------
/Units
Share
------
/Unit
-----
Net income attributable to TCO common
shareowners
7,453
55,611,887
0.14
Add depreciation of TCO's additional basis
1,719
0.03
-----
----
Net income attributable to TCO common
shareowners, excluding step-up depreciation
9,172
55,611,887
0.16
Add:
Noncontrolling share of income of TRG
4,428
26,337,361
Distributions to participating securities
361
871,262
---
-------
Net income attributable to partnership unit
holders and participating securities
13,961
82,820,510
0.17
Add (less) depreciation and amortization:
Consolidated businesses at 100%
35,918
0.43
Depreciation of TCO's additional basis
(1,719)
(0.02)
Noncontrolling partners in consolidated joint
ventures
(2,503)
(0.03)
Share of Unconsolidated Joint Ventures
5,323
0.06
Non-real estate depreciation
(837)
(0.01)
----
-----
Funds from Operations
50,143
82,820,510
0.61
TCO's average ownership percentage of TRG
67.4%
----
Funds from Operations attributable to TCO
33,816
0.61
======
====
Funds from Operations
50,143
82,820,510
0.61
Restructuring charge
Adjusted Funds from Operations
50,143
82,820,510
0.61
TCO's average ownership percentage of TRG
67.4%
----
Adjusted Funds from Operations attributable to
TCO
33,816
0.61
======
====
2009
----
Dollars
Shares
Per
-------
/Units
Share
------
/Unit
-----
Net income attributable to TCO common
shareowners
8,908
53,666,868
0.17
Add depreciation of TCO's additional basis
1,720
0.03
-----
----
Net income attributable to TCO common
shareowners, excluding step-up depreciation
10,628
53,666,868
0.20
Add:
Noncontrolling share of income of TRG
5,290
26,437,684
Distributions to participating securities
361
871,262
---
-------
Net income attributable to partnership unit
holders and participating securities
16,279
80,975,814
0.20
Add (less) depreciation and amortization:
Consolidated businesses at 100%
36,058
0.45
Depreciation of TCO's additional basis
(1,720)
(0.02)
Noncontrolling partners in consolidated joint
ventures
(3,172)
(0.04)
Share of Unconsolidated Joint Ventures
5,799
0.07
Non-real estate depreciation
(854)
(0.01)
----
-----
Funds from Operations
52,390
80,975,814
0.65
TCO's average ownership percentage of TRG
66.8%
----
Funds from Operations attributable to TCO
34,968
0.65
======
====
Funds from Operations
52,390
80,975,814
0.65
Restructuring charge
169
0.00
---
----
Adjusted Funds from Operations
52,559
80,975,814
0.65
TCO's average ownership percentage of TRG
66.8%
----
Adjusted Funds from Operations attributable to
TCO
35,081
0.65
======
====
TAUBMAN CENTERS, INC.
Table 5 -Reconciliation of Net Income Attributable to Taubman
Centers, Inc. Common Shareowners to Funds from Operations and
Adjusted Funds from Operations
For the Six Months Ended June 30, 2010 and 2009
(in thousands of dollars except as noted; may not add or recalculate
due to rounding)
2010
----
Dollars
Shares
Per
-------
/Units
Share
------
/Unit
-----
Net income attributable to TCO common
shareowners
13,736
55,490,935
0.25
Add depreciation of TCO's additional basis
3,439
0.06
-----
----
Net income attributable to TCO common
shareowners, excluding step-up depreciation
17,175
55,490,935
0.31
Add:
Noncontrolling share of income of TRG
8,310
26,351,949
Distributions to participating securities
723
871,262
---
-------
Net income attributable to partnership unit
holders and participating securities
26,208
82,714,146
0.32
Add (less) depreciation and amortization:
Consolidated businesses at 100%
73,002
0.88
Depreciation of TCO's additional basis
(3,439)
(0.04)
Noncontrolling partners in consolidated joint
ventures
(5,018)
(0.06)
Share of Unconsolidated Joint Ventures
10,801
0.13
Non-real estate depreciation
(1,680)
(0.02)
------
-----
Funds from Operations
99,874
82,714,146
1.21
TCO's average ownership percentage of TRG
67.4%
----
Funds from Operations attributable to TCO
67,303
1.21
======
====
Funds from Operations
99,874
82,714,146
1.21
Restructuring charge
Adjusted Funds from Operations
99,874
82,714,146
1.21
TCO's average ownership percentage of TRG
67.4%
----
Adjusted Funds from Operations attributable to
TCO
67,303
1.21
======
====
2009
----
Dollars
Shares
Per
-------
/Units
Share
------
/Unit
-----
Net income attributable to TCO common
shareowners
20,407
53,466,563
0.38
Add depreciation of TCO's additional
basis
3,440
0.06
-----
----
Net income attributable to TCO common
shareowners, excluding step-up
depreciation
23,847
53,466,563
0.45
Add:
Noncontrolling share of income of TRG
11,876
26,438,939
Distributions to participating securities
836
871,262
---
-------
Net income attributable to partnership
unit holders and participating
securities
36,559
80,776,764
0.45
Add (less) depreciation and amortization:
Consolidated businesses at 100%
72,351
0.90
Depreciation of TCO's additional basis
(3,440)
(0.04)
Noncontrolling partners in consolidated
joint ventures
(6,081)
(0.08)
Share of Unconsolidated Joint Ventures
11,305
0.14
Non-real estate depreciation
(1,734)
(0.02)
------
-----
Funds from Operations
108,960
80,776,764
1.35
TCO's average ownership percentage of TRG
66.8%
----
Funds from Operations attributable to TCO
72,726
1.35
======
====
Funds from Operations
108,960
80,776,764
1.35
Restructuring charge
2,630
0.03
-----
----
Adjusted Funds from Operations
111,590
80,776,764
1.38
TCO's average ownership percentage of TRG
66.8%
----
Adjusted Funds from Operations
attributable to TCO
74,482
1.38
======
====
TAUBMAN CENTERS, INC.
Table 6 - Reconciliation of Net Income to Beneficial Interest in EBITDA
For the Periods Ended June 30, 2010 and 2009
(in thousands of dollars; amounts attributable to TCO may not
recalculate due to rounding)
Three Months
Ended
Six Months Ended
------------
----------------
2010
2009
2010
2009
----
----
----
----
Net income
18,484
20,866
35,297
45,392
Add (less)
depreciation and
amortization:
Consolidated
businesses at 100%
35,918
36,058
73,002
72,351
Noncontrolling
partners in
consolidated joint
ventures
(2,503)
(3,172)
(5,018)
(6,081)
Share of
Unconsolidated Joint
Ventures
5,323
5,799
10,801
11,305
Add (less) interest
expense and income
tax expense:
Interest expense:
Consolidated
businesses at 100%
37,923
36,473
75,340
72,706
Noncontrolling
partners in
consolidated joint
ventures
(5,293)
(4,935)
(10,513)
(9,808)
Share of
Unconsolidated Joint
Ventures
8,248
8,369
16,450
16,653
Income tax expense
114
198
310
468
Less noncontrolling
share of income of
consolidated joint
ventures
(1,968)
(2,033)
(3,981)
(3,726)
------
------
------
------
Beneficial Interest
in EBITDA
96,246
97,623
191,688
199,260
TCO's average
ownership percentage
of TRG
67.4%
66.8%
67.4%
66.8%
----
----
----
----
Beneficial Interest
in EBITDA
attributable to TCO
64,908
65,212
129,140
133,004
======
======
=======
=======
TAUBMAN CENTERS, INC.
---------------------
Table 7 - Reconciliation of Net Income to Net Operating Income
--------------------------------------------------------------
For the Periods Ended June 30, 2010 and 2009
--------------------------------------------
(in thousands of dollars)
Three Months Ended
------------------
2010
2009
----
----
Net income
18,484
20,866
Add (less) depreciation and
amortization:
Consolidated businesses at
100%
35,918
36,058
Noncontrolling partners in
consolidated joint
ventures
(2,503)
(3,172)
Share of Unconsolidated
Joint Ventures
5,323
5,799
Add (less) interest expense
and income tax expense:
Interest expense:
Consolidated businesses at
100%
37,923
36,473
Noncontrolling partners in
consolidated joint
ventures
(5,293)
(4,935)
Share of Unconsolidated
Joint Ventures
8,248
8,369
Income tax expense
114
198
Less noncontrolling share
of income of consolidated
joint ventures
(1,968)
(2,033)
Add EBITDA attributable to
outside partners:
EBITDA attributable to
noncontrolling partners in
consolidated joint
ventures
9,764
10,140
EBITDA attributable to
outside partners in
Unconsolidated Joint
Ventures
18,656
18,860
------
------
EBITDA at 100%
124,666
126,623
Add (less) items excluded
from shopping center Net
Operating Income:
General and administrative
expenses
7,036
6,847
Management, leasing, and
development services, net
(1,822)
(1,259)
Restructuring charge
169
Gain on sale of peripheral
land
(1,040)
Interest income
(99)
(201)
Impairment loss on
marketable securities
1,666
Straight-line of rents
(552)
(912)
The Pier Shops Net
Operating Income
(1,121)
(1,459)
Non-center specific
operating expenses and
other
5,630
4,918
-----
-----
Net Operating Income at
100%
132,698
136,392
=======
=======
Net Operating Income -
growth % (1)
-2.7%
Year to Date
------------
2010
2009
----
----
Net income
35,297
45,392
Add (less) depreciation and
amortization:
Consolidated businesses at
100%
73,002
72,351
Noncontrolling partners in
consolidated joint
ventures
(5,018)
(6,081)
Share of Unconsolidated
Joint Ventures
10,801
11,305
Add (less) interest expense
and income tax expense:
Interest expense:
Consolidated businesses at
100%
75,340
72,706
Noncontrolling partners in
consolidated joint
ventures
(10,513)
(9,808)
Share of Unconsolidated
Joint Ventures
16,450
16,653
Income tax expense
310
468
Less noncontrolling share
of income of consolidated
joint ventures
(3,981)
(3,726)
Add EBITDA attributable to
outside partners:
EBITDA attributable to
noncontrolling partners in
consolidated joint
ventures
19,512
19,615
EBITDA attributable to
outside partners in
Unconsolidated Joint
Ventures
38,138
38,631
------
------
EBITDA at 100%
249,338
257,506
Add (less) items excluded
from shopping center Net
Operating Income:
General and administrative
expenses
14,425
13,735
Management, leasing, and
development services, net
(3,285)
(2,909)
Restructuring charge
2,630
Gain on sale of peripheral
land
(1,040)
Interest income
(260)
(490)
Impairment loss on
marketable securities
1,666
Straight-line of rents
(524)
(1,757)
The Pier Shops Net
Operating Income
(2,274)
(2,266)
Non-center specific
operating expenses and
other
11,799
8,096
------
-----
Net Operating Income at
100%
268,179
276,211
=======
=======
Net Operating Income -
growth % (1)
-2.9%
(1)
Excluding all lease cancellation fees, growth in net operating income
was -0.3% and
-2.7% for the three and six months ended June 30, 2010.
TAUBMAN CENTERS, INC.
Table 8 - Balance Sheets
As of June 30, 2010 and December 31, 2009
(in thousands of dollars)
As of
-----
June 30,
December 31,
2010
2009
---------
-------------
Consolidated Balance Sheet of Taubman
Centers, Inc. (1):
Assets:
Properties
3,495,599
3,496,853
Accumulated depreciation and amortization
(1,148,314)
(1,100,610)
----------
----------
2,347,285
2,396,243
Investment in Unconsolidated Joint
Ventures
89,007
89,804
Cash and cash equivalents
9,227
16,176
Accounts and notes receivable, net
39,383
44,503
Accounts receivable from related parties
1,702
1,558
Deferred charges and other assets
74,326
58,569
------
------
2,560,930
2,606,853
=========
=========
Liabilities:
Notes payable
2,688,242
2,691,019
Accounts payable and accrued liabilities
224,057
230,276
Distributions in excess of investments in
and net income of
Unconsolidated Joint Ventures
159,090
160,305
-------
-------
3,071,389
3,081,600
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
547
543
Additional paid-in capital
585,668
579,983
Accumulated other comprehensive income
(loss)
(21,654)
(24,443)
Dividends in excess of net income
(916,328)
(884,666)
--------
--------
(351,741)
(328,557)
Noncontrolling interests:
Noncontrolling interests in consolidated
joint ventures
(100,636)
(100,014)
Noncontrolling interests in partnership
equity of TRG
(87,299)
(75,393)
Preferred Equity of TRG
29,217
29,217
------
------
(158,718)
(146,190)
--------
--------
(510,459)
(474,747)
--------
--------
2,560,930
2,606,853
=========
=========
Combined Balance Sheet of Unconsolidated
Joint Ventures (1):
Assets:
Properties
1,095,311
1,094,963
Accumulated depreciation and amortization
(410,494)
(396,518)
--------
--------
684,817
698,445
Cash and cash equivalents
17,229
18,544
Accounts and notes receivable
19,488
26,982
Deferred charges and other assets
25,744
22,310
------
------
747,278
766,281
=======
=======
Liabilities:
Notes payable
1,087,056
1,092,806
Accounts payable and other liabilities,
net
36,858
50,615
------
------
1,123,914
1,143,421
Accumulated Deficiency in Assets:
Accumulated deficiency in assets - TRG
(198,959)
(200,169)
Accumulated deficiency in assets -Joint
Venture Partners
(169,678)
(166,866)
Accumulated other comprehensive income
(loss) -TRG
(4,275)
(5,397)
Accumulated other comprehensive income
(loss) -Joint Venture Partners
(3,724)
(4,708)
------
------
(376,636)
(377,140)
--------
--------
747,278
766,281
=======
=======
(1)
Certain 2009 amounts have been reclassified to conform to 2010
classifications.
TAUBMAN CENTERS, INC.
Table 9 -
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, 2010
-----------------
Funds from Operations per common share (1)
2.65
2.75
Real estate depreciation - TRG
(1.79)
(1.73)
Distributions on participating securities of TRG
(0.02)
(0.02)
Depreciation of TCO's additional basis in TRG
(0.12)
(0.12)
-----
-----
Net income attributable to common shareowners, per
common share (EPS) (1)
0.72
0.88
====
====
(1)
Guidance on Funds from Operations and EPS includes The Pier
Shops' operations through September 2010. The loan on the center is
in default and accrues interest at 10.01%. The foreclosure process
is not in the Company's control, but the Company anticipates that
the foreclosure will be completed in the third quarter of 2010, at
which time the ownership of The Pier Shops will be transferred in
satisfaction of the obligation under the debt. The Company expects a
non-cash incremental impact on FFO per share of slightly more than
($0.01) for each month the Company continues to own the center.
Including the impact of depreciation and amortization, the impact on
EPS is expected to be approximately ($0.015) per month. A non-cash
accounting gain is expected to be recognized when the loan
obligation is extinguished upon transfer of title of The Pier Shops.
This gain has been excluded from EPS and FFO per share estimates.
SOURCE Taubman Centers, Inc.
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