UNITED STATES	
SECURITIES AND EXCHANGE COMMISSION	
WASHINGTON, D.C. 20549	

 	
FORM 8-K	

CURRENT REPORT PURSUANT	
TO SECTION 13 OR 15(d) OF THE	
SECURITIES EXCHANGE ACT OF 1934	

Date of report (date of earliest event reported):                                                                                                 July 27, 2010	
 	
TAUBMAN CENTERS, INC .	
(Exact Name of Registrant as Specified in its Charter)	
 	
Michigan	
(State or Other Jurisdiction of Incorporation)	
 	
1-11530	38-2033632	
(Commission File Number)	(I.R.S. Employer Identification No.)	
 	
200 East Long Lake Road, Suite 300,
Bloomfield Hills, Michigan	 
48304-2324	
(Address of Principal Executive Office)	(Zip Code)	
 	
Registrant’s Telephone Number, Including Area Code: (248) 258-6800	
 	
None	
(Former Name or Former Address, if Changed Since Last Report)	
 	
 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):	
 	
            o          Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 	
            o          Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 	
            o           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 	
            o          Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

 
Item 2.02.                      RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

The information under this caption is furnished by Taubman Centers, Inc. (the "Company") in accordance with Securities and Exchange Commission Release No. 33-8216. This information shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

On July 27, 2010, the Company issued a press release announcing its results of operations for the quarter ended June 30, 2010. A copy of the press release is attached as Exhibit 99 to this report.

Item 9.01.	FINANCIAL STATEMENTS AND EXHIBITS.	

 	(d)	Exhibits	

Exhibit	Description	
 	 	
99	Press Release, dated July 27, 2010, entitled “Taubman Centers Announces Second Quarter Results.”	

 

 

SIGNATURES

 Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: July 27, 2010	TAUBMAN CENTERS, INC.	
 	 	
 	By: /s/ Lisa A. Payne                                                                 	
 	 Lisa A. Payne	
 	 Vice Chairman and Chief Financial Officer	

 

EXHIBIT INDEX

Exhibit	Description	
 	 	
99	Press Release, dated July 27, 2010, entitled “Taubman Centers Announces Second Quarter Results.”	

 

 
Exhibit 99

Taubman Centers, Inc.
200 East Long Lake Road
Suite 300
Bloomfield Hills, Michigan
48304-2324	 
T 248.258.6800
www.taubman.com	  	

                                                          

CONTACT:

Barbara Baker
Taubman, Vice President, Investor Relations
248-258-7367
bbaker@taubman.com

FOR IMMEDIATE RELEASE

TAUBMAN CENTERS ANNOUNCES SECOND QUARTER RESULTS
·  	Mall Tenant Sales per Square Foot Up 12.1 Percent	
·  	Arizona Mills, Partridge Creek Financings Complete	
·  	Company Increases Guidance on Improved Operations	

BLOOMFIELD HILLS, Mich., July 27, 2010 -- Taubman Centers, Inc. (NYSE:  TCO) today announced its financial results for the second quarter of 2010.

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 ww w .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 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 www.taubman.com under “Investor Relations” as well as www.earnings.com and 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, 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 60 th anniversary in 2010.  For more information about Taubman, visit 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 June 30, 2010 and 2009	 	 	 	 	 	 	 	 	 	
(in thousands of dollars, except as indicated)	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	 	Six Months Ended	 	
 	2010	 	2009	 	 	2010	 	2009	 	
 	 	 	 	 	 	 	 	 	 	
Net income	 	18,484	 	 	20,866	 	 	 	35,297	 	 	45,392	 	
Noncontrolling share of income of consolidated joint ventures	 	(1,968	)	 	(2,033	)	 	 	(3,981	)	 	(3,726	)	
Noncontrolling share of income of TRG	 	(4,428	)	 	(5,290	)	 	 	(8,310	)	 	(11,876	)	
TRG series F 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	)	 	 	(723	)	 	(836	)	
Net income attributable to Taubman Centers, Inc. common shareowners	 	7,453	 	 	8,908	 	 	 	13,736	 	 	20,407	 	
Net income per common share - basic & diluted	 	0.14	 	 	0.17	 	 	 	0.25	 	 	0.38	 	
Beneficial interest in EBITDA - Consolidated Businesses (1)	 	73,170	 	 	75,087	 	 	 	145,197	 	 	152,776	 	
Beneficial interest in EBITDA - Unconsolidated Joint Ventures (1)	 	23,076	 	 	22,536	 	 	 	46,491	 	 	46,484	 	
Funds from Operations (1)	 	50,143	 	 	52,390	 	 	 	99,874	 	 	108,960	 	
Funds from Operations attributable to TCO (1)	 	33,816	 	 	34,968	 	 	 	67,303	 	 	72,726	 	
Funds from Operations per common share - basic (1)	 	0.62	 	 	0.66	 	 	 	1.24	 	 	1.37	 	
Funds from Operations per common share - diluted (1)	 	0.61	 	 	0.65	 	 	 	1.21	 	 	1.35	 	
Adjusted Funds from Operations (1)	 	50,143	 	 	52,559	 	 	 	99,874	 	 	111,590	 	
Adjusted Funds from Operations attributable to TCO (1)	 	33,816	 	 	35,081	 	 	 	67,303	 	 	74,482	 	
Adjusted Funds from Operations per common share - basic (1)	 	0.62	 	 	0.66	 	 	 	1.24	 	 	1.40	 	
Adjusted Funds from Operations per common share - diluted (1)	 	0.61	 	 	0.65	 	 	 	1.21	 	 	1.38	 	
Weighted average number of common shares outstanding - basic	 	54,550,964	 	 	53,120,769	 	 	 	54,454,579	 	 	53,093,988	 	
Weighted average number of common shares outstanding - diluted	 	55,611,887	 	 	53,666,868	 	 	 	55,490,935	 	 	53,466,563	 	
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	 	 	 	80,806,530	 	 	79,532,928	 	
Weighted average units - Operating Partnership - diluted	 	82,820,510	 	 	80,975,814	 	 	 	82,714,146	 	 	80,776,764	 	
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	 	 	 	23	 	 	23	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Statistics (2) :	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mall tenant sales (3)	 	1,062,263	 	 	968,964	 	 	 	2,067,444	 	 	1,890,122	 	
Ending occupancy	 	87.9	%	 	88.8	%	 	 	87.9	%	 	88.8	%	
Average occupancy	 	88.0	%	 	88.9	%	 	 	88.2	%	 	88.9	%	
Leased space at end of period	 	90.8	%	 	91.3	%	 	 	90.8	%	 	91.3	%	
Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (3)	 	15.0	%	 	16.8	%	 	 	15.4	%	 	17.6	%	
Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (3)	 	14.1	%	 	15.7	%	 	 	14.3	%	 	15.9	%	
Mall tenant occupancy costs as a percentage of tenant sales - Combined (3)	 	14.7	%	 	16.4	%	 	 	15.0	%	 	17.1	%	
Rent per square foot - Consolidated Businesses	 	42.96	 	 	43.04	 	 	 	42.96	 	 	44.18	 	
Rent per square foot - Unconsolidated Joint Ventures	 	43.64	 	 	44.24	 	 	 	43.72	 	 	44.56	 	
Rent per square foot - Combined	 	43.20	 	 	43.40	 	 	 	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	 	2009	 	
 	 	CONSOLIDATED BUSINESSES	 	UNCONSOLIDATED JOINT VENTURES (1)	 	CONSOLIDATED BUSINESSES	 	UNCONSOLIDATED JOINT VENTURES (1)	 	
 	 	 	 	 	 	 	 	 	 	
REVENUES:	 	 	 	 	 	 	 	 	
 	Minimum rents	 	84,081	 	 	38,092	 	 	84,016	 	 	38,553	 	
 	Percentage rents	 	1,061	 	 	477	 	 	561	 	 	95	 	
 	Expense recoveries	 	56,334	 	 	23,477	 	 	58,525	 	 	23,819	 	
 	Management, leasing, and development services	 	4,007	 	 	 	 	 	3,189	 	 	 	 	
 	Other	 	8,599	 	 	1,676	 	 	12,648	 	 	1,187	 	
 	Total revenues	 	154,082	 	 	63,722	 	 	158,939	 	 	63,654	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	
 	Maintenance, taxes, and utilities	 	44,535	 	 	16,516	 	 	46,946	 	 	16,296	 	
 	Other operating	 	18,542	 	 	5,463	 	 	16,352	 	 	5,965	 	
 	Restructuring charge	 	 	 	 	 	 	 	169	 	 	 	 	
 	Management, leasing, and development services	 	2,185	 	 	 	 	 	1,930	 	 	 	 	
 	General and administrative	 	7,036	 	 	 	 	 	6,847	 	 	 	 	
 	Interest expense	 	37,923	 	 	15,916	 	 	36,473	 	 	16,120	 	
 	Depreciation and amortization	 	35,918	 	 	9,104	 	 	36,058	 	 	9,911	 	
 	Total expenses	 	146,139	 	 	46,999	 	 	144,775	 	 	48,292	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nonoperating income	 	1,150	 	 	(11	)	 	198	 	 	3	 	
Impairment loss on marketable securities	 	 	 	 	 	 	 	(1,666	)	 	 	 	
 	 	 	9,093	 	 	16,712	 	 	12,696	 	 	15,365	 	
Income tax expense	 	(114	)	 	 	 	 	(198	)	 	 	 	
Equity in income of Unconsolidated Joint Ventures	 	9,505	 	 	 	 	 	8,368	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	18,484	 	 	 	 	 	20,866	 	 	 	 	
Net income attributable to noncontrolling interests:	 	 	 	 	 	 	 	 	 	 	 	 	
 	Noncontrolling share of income of consolidated joint ventures	 	(1,968	)	 	 	 	 	(2,033	)	 	 	 	
 	TRG series F preferred distributions	 	(615	)	 	 	 	 	(615	)	 	 	 	
 	Noncontrolling share of income of TRG	 	(4,428	)	 	 	 	 	(5,290	)	 	 	 	
Distributions to participating securities of TRG	 	(361	)	 	 	 	 	(361	)	 	 	 	
Preferred stock dividends	 	(3,659	)	 	 	 	 	(3,659	)	 	 	 	
Net income attributable to Taubman Centers, Inc. common shareowners	 	7,453	 	 	 	 	 	8,908	 	 	 	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUPPLEMENTAL INFORMATION:	 	 	 	 	 	 	 	 	 	 	 	 	
 	EBITDA - 100%	 	82,934	 	 	41,732	 	 	85,227	 	 	41,396	 	
 	EBITDA - outside partners' share	 	(9,764	)	 	(18,656	)	 	(10,140	)	 	(18,860	)	
 	Beneficial interest in EBITDA	 	73,170	 	 	23,076	 	 	75,087	 	 	22,536	 	
 	Beneficial interest expense	 	(32,630	)	 	(8,248	)	 	(31,538	)	 	(8,369	)	
 	Beneficial income tax expense	 	(114	)	 	 	 	 	(198	)	 	 	 	
 	Non-real estate depreciation	 	(837	)	 	 	 	 	(854	)	 	 	 	
 	Preferred dividends and distributions	 	(4,274	)	 	 	 	 	(4,274	)	 	 	 	
 	Fund from Operations contribution	 	35,315	 	 	14,828	 	 	38,223	 	 	14,167	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Net straightline adjustments to rental revenue, recoveries,	 	 	 	 	 	 	 	 	 	 	
 	  and ground rent expense at TRG %	 	58	 	 	21	 	 	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	 	2009	 	
 	 	CONSOLIDATED BUSINESSES	 	UNCONSOLIDATED JOINT VENTURES (1)	 	CONSOLIDATED BUSINESSES	 	UNCONSOLIDATED JOINT VENTURES (1)	 	
 	 	 	 	 	 	 	 	 	 	
REVENUES:	 	 	 	 	 	 	 	 	
 	Minimum rents	 	167,435	 	 	76,036	 	 	171,452	 	 	77,520	 	
 	Percentage rents	 	3,135	 	 	1,469	 	 	2,721	 	 	1,203	 	
 	Expense recoveries	 	109,255	 	 	45,816	 	 	115,283	 	 	47,645	 	
 	Management, leasing, and development services	 	7,063	 	 	 	 	 	6,745	 	 	 	 	
 	Other	 	18,683	 	 	3,741	 	 	20,428	 	 	3,376	 	
 	Total revenues	 	305,571	 	 	127,062	 	 	316,629	 	 	129,744	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	
 	Maintenance, taxes, and utilities	 	87,611	 	 	32,363	 	 	91,487	 	 	32,333	 	
 	Other operating	 	36,347	 	 	10,071	 	 	31,317	 	 	12,353	 	
 	Restructuring charge	 	 	 	 	 	 	 	2,630	 	 	 	 	
 	Management, leasing, and development services	 	3,778	 	 	 	 	 	3,836	 	 	 	 	
 	General and administrative	 	14,425	 	 	 	 	 	13,735	 	 	 	 	
 	Interest expense	 	75,340	 	 	31,734	 	 	72,706	 	 	32,070	 	
 	Depreciation and amortization	 	73,002	 	 	18,628	 	 	72,351	 	 	19,348	 	
 	Total expenses	 	290,503	 	 	92,796	 	 	288,062	 	 	96,104	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Nonoperating Income	 	1,299	 	 	1	 	 	433	 	 	57	 	
Impairment loss on marketable securities	 	 	 	 	 	 	 	(1,666	)	 	 	 	
 	 	 	16,367	 	 	34,267	 	 	27,334	 	 	33,697	 	
Income tax expense	 	(310	)	 	 	 	 	(468	)	 	 	 	
Equity in income of Unconsolidated Joint Ventures	 	19,240	 	 	 	 	 	18,526	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	35,297	 	 	 	 	 	45,392	 	 	 	 	
Net income attributable to noncontrolling interests:	 	 	 	 	 	 	 	 	 	 	 	 	
 	Noncontrolling share of income of consolidated joint ventures	 	(3,981	)	 	 	 	 	(3,726	)	 	 	 	
 	TRG series F preferred distributions	 	(1,230	)	 	 	 	 	(1,230	)	 	 	 	
 	Noncontrolling share of income of TRG	 	(8,310	)	 	 	 	 	(11,876	)	 	 	 	
Distributions to participating securities of TRG	 	(723	)	 	 	 	 	(836	)	 	 	 	
Preferred stock dividends	 	(7,317	)	 	 	 	 	(7,317	)	 	 	 	
Net income attributable to Taubman Centers, Inc. common shareowners	 	13,736	 	 	 	 	 	20,407	 	 	 	 	

SUPPLEMENTAL INFORMATION:	 	 	 	 	 	 	 	 	 	 	 	 	
 	EBITDA - 100%	 	164,709	 	 	84,629	 	 	172,391	 	 	85,115	 	
 	EBITDA - outside partners' share	 	(19,512	)	 	(38,138	)	 	(19,615	)	 	(38,631	)	
 	Beneficial interest in EBITDA	 	145,197	 	 	46,491	 	 	152,776	 	 	46,484	 	
 	Beneficial interest expense	 	(64,827	)	 	(16,450	)	 	(62,898	)	 	(16,653	)	
 	Beneficial income tax expense	 	(310	)	 	 	 	 	(468	)	 	 	 	
 	Non-real estate depreciation	 	(1,680	)	 	 	 	 	(1,734	)	 	 	 	
 	Preferred dividends and distributions	 	(8,547	)	 	 	 	 	(8,547	)	 	 	 	
 	Funds from Operations contribution	 	69,833	 	 	30,041	 	 	79,129	 	 	29,831	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Net straightline adjustments to rental revenue, recoveries,	 	 	 	 	 	 	 	 	 	 	
 	  and ground rent expense at TRG %	 	(178	)	 	(120	)	 	159	 	 	158	 	

 (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	 	 	 	 	 	2009	 	 	 	
 	 	 	 	Shares	 	Per Share	 	 	 	Shares	 	Per Share	 	
 	 	Dollars	 	/Units	 	/Unit	 	Dollars	 	/Units	 	/Unit	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to TCO common shareowners	 	 	7,453	 	 	55,611,887	 	 	0.14	 	 	8,908	 	 	53,666,868	 	 	0.17	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add depreciation of TCO's additional basis	 	 	1,719	 	 	 	 	 	0.03	 	 	1,720	 	 	 	 	 	0.03	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to TCO common shareowners,	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
excluding step-up depreciation	 	 	9,172	 	 	55,611,887	 	 	0.16	 	 	10,628	 	 	53,666,868	 	 	0.20	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Noncontrolling share of income of TRG	 	 	4,428	 	 	26,337,361	 	 	 	 	 	5,290	 	 	26,437,684	 	 	 	 	
   Distributions to participating securities	 	 	361	 	 	871,262	 	 	 	 	 	361	 	 	871,262	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to partnership unit holders	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
and participating securities	 	 	13,961	 	 	82,820,510	 	 	0.17	 	 	16,279	 	 	80,975,814	 	 	0.20	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Consolidated businesses at 100%	 	 	35,918	 	 	 	 	 	0.43	 	 	36,058	 	 	 	 	 	0.45	 	
   Depreciation of TCO's additional basis	 	 	(1,719	)	 	 	 	 	(0.02	)	 	(1,720	)	 	 	 	 	(0.02	)	
   Noncontrolling partners in consolidated joint ventures	 	 	(2,503	)	 	 	 	 	(0.03	)	 	(3,172	)	 	 	 	 	(0.04	)	
   Share of Unconsolidated Joint Ventures	 	 	5,323	 	 	 	 	 	0.06	 	 	5,799	 	 	 	 	 	0.07	 	
   Non-real estate depreciation	 	 	(837	)	 	 	 	 	(0.01	)	 	(854	)	 	 	 	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations	 	 	50,143	 	 	82,820,510	 	 	0.61	 	 	52,390	 	 	80,975,814	 	 	0.65	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	 	67.4	%	 	 	 	 	 	 	 	66.8	%	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations attributable to TCO	 	 	33,816	 	 	 	 	 	0.61	 	 	34,968	 	 	 	 	 	0.65	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations	 	 	50,143	 	 	82,820,510	 	 	0.61	 	 	52,390	 	 	80,975,814	 	 	0.65	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring charge	 	 	 	 	 	 	 	 	 	 	 	169	 	 	 	 	 	0.00	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations	 	 	50,143	 	 	82,820,510	 	 	0.61	 	 	52,559	 	 	80,975,814	 	 	0.65	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	 	67.4	%	 	 	 	 	 	 	 	66.8	%	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations attributable to TCO	 	 	33,816	 	 	 	 	 	0.61	 	 	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	 	 	 	 	 	2009	 	 	 	
 	 	 	 	Shares	 	Per Share	 	 	 	Shares	 	Per Share	 	
 	 	Dollars	 	/Units	 	/Unit	 	Dollars	 	/Units	 	/Unit	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to TCO common shareowners	 	 	13,736	 	 	55,490,935	 	 	0.25	 	 	20,407	 	 	53,466,563	 	 	0.38	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add depreciation of TCO's additional basis	 	 	3,439	 	 	 	 	 	0.06	 	 	3,440	 	 	 	 	 	0.06	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to TCO common shareowners,	 	 	 	 	 	 	 	 	 	 	 	 	 	
excluding step-up depreciation	 	 	17,175	 	 	55,490,935	 	 	0.31	 	 	23,847	 	 	53,466,563	 	 	0.45	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Noncontrolling share of income of TRG	 	 	8,310	 	 	26,351,949	 	 	 	 	 	11,876	 	 	26,438,939	 	 	 	 	
   Distributions to participating securities	 	 	723	 	 	871,262	 	 	 	 	 	836	 	 	871,262	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to partnership unit holders	 	 	 	 	 	 	 	 	 	 	 	 	 	
and participating securities	 	 	26,208	 	 	82,714,146	 	 	0.32	 	 	36,559	 	 	80,776,764	 	 	0.45	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Consolidated businesses at 100%	 	 	73,002	 	 	 	 	 	0.88	 	 	72,351	 	 	 	 	 	0.90	 	
   Depreciation of TCO's additional basis	 	 	(3,439	)	 	 	 	 	(0.04	)	 	(3,440	)	 	 	 	 	(0.04	)	
   Noncontrolling partners in consolidated joint ventures	 	 	(5,018	)	 	 	 	 	(0.06	)	 	(6,081	)	 	 	 	 	(0.08	)	
   Share of Unconsolidated Joint Ventures	 	 	10,801	 	 	 	 	 	0.13	 	 	11,305	 	 	 	 	 	0.14	 	
   Non-real estate depreciation	 	 	(1,680	)	 	 	 	 	(0.02	)	 	(1,734	)	 	 	 	 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations	 	 	99,874	 	 	82,714,146	 	 	1.21	 	 	108,960	 	 	80,776,764	 	 	1.35	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	 	67.4	%	 	 	 	 	 	 	 	66.8	%	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations attributable to TCO	 	 	67,303	 	 	 	 	 	1.21	 	 	72,726	 	 	 	 	 	1.35	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations	 	 	99,874	 	 	82,714,146	 	 	1.21	 	 	108,960	 	 	80,776,764	 	 	1.35	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Restructuring charge	 	 	 	 	 	 	 	 	 	 	 	2,630	 	 	 	 	 	0.03	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations	 	 	99,874	 	 	82,714,146	 	 	1.21	 	 	111,590	 	 	80,776,764	 	 	1.38	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	 	67.4	%	 	 	 	 	 	 	 	66.8	%	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations attributable to TCO	 	 	67,303	 	 	 	 	 	1.21	 	 	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	 	 	Year to Date	 	
 	 	 	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	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add EBITDA attributable to outside partners:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	EBITDA attributable to noncontrolling partners in consolidated joint ventures	 	 	9,764	 	 	 	10,140	 	 	 	19,512	 	 	 	19,615	 	
 	EBITDA attributable to outside partners in Unconsolidated Joint Ventures	 	 	18,656	 	 	 	18,860	 	 	 	38,138	 	 	 	38,631	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA at 100%	 	 	124,666	 	 	 	126,623	 	 	 	249,338	 	 	 	257,506	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) items excluded from shopping center Net Operating Income:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	General and administrative expenses	 	 	7,036	 	 	 	6,847	 	 	 	14,425	 	 	 	13,735	 	
 	Management, leasing, and development services, net	 	 	(1,822	)	 	 	(1,259	)	 	 	(3,285	)	 	 	(2,909	)	
 	Restructuring charge	 	 	 	 	 	 	169	 	 	 	 	 	 	 	2,630	 	
 	Gain on sale of peripheral land	 	 	(1,040	)	 	 	 	 	 	 	(1,040	)	 	 	 	 	
 	Interest income	 	 	(99	)	 	 	(201	)	 	 	(260	)	 	 	(490	)	
 	Impairment loss on marketable securities	 	 	 	 	 	 	1,666	 	 	 	 	 	 	 	1,666	 	
 	Straight-line of rents	 	 	(552	)	 	 	(912	)	 	 	(524	)	 	 	(1,757	)	
 	The Pier Shops Net Operating Income	 	 	(1,121	)	 	 	(1,459	)	 	 	(2,274	)	 	 	(2,266	)	
 	Non-center specific operating expenses and other	 	 	5,630	 	 	 	4,918	 	 	 	11,799	 	 	 	8,096	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Operating Income at 100%	 	 	132,698	 	 	 	136,392	 	 	 	268,179	 	 	 	276,211	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net Operating Income - growth % (1)	 	 	-2.7	%	 	 	 	 	 	 	-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, 2010	 	 	  December  31, 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 U nconsolidated 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.