UNITED STATES	
SECURITIES AND EXCHANGE COMMISSION	
WASHINGTON, D.C. 2054 9	

 	
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):     October 25, 2006	
 	
TAUBMAN CENTERS, INC .	
(Exact Name of Registrant as Specified in its Charter)	
 	
Michigan	
(State of 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	 
48303-0200	
(Address of Pr incipal 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 October 25, 2006, the Company issued a press release announcing its results of operations for the quarter ended September 30, 2006. 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 October 25, 2006, entitled “Taubman Centers Issues Strong Third 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: October 25 , 2006	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 October 25, 2006, entitled “Taubman Centers Issues Strong Third Quarter Results.”	

 

Taubman Centers, Inc.	
200 East Long Lake Road	
Bloomfield Hills, MI 48304	
(248) 258-6800  	

CONTACT:	Barbara K. Baker	
 	(248) 258-7367	
 	www.taubman.com	

FOR IMMEDIATE RELEASE

TAUBMAN CENTERS ISSUES STRONG THIRD QUARTER RESULTS

·  	FFO per Share Up 23.9%	
·  	Robust Tenant Sales per Square Foot -- Up 7.7%	
·  	Occupancy Up 60 Basis Points	
·  	FFO per Share Guidance Increased	

BLOOMFIELD HILLS, Mich., Oct. 25, 2006 - Taubman Centers, Inc. (NYSE: TCO) today reported strong financial results for the quarter and year-to-date periods ended September 30, 2006.
 Net income (loss) allocable to common shareholders per diluted common share (EPS) for the quarter ended September 30, 2006 was $0.03, up from $(0.18) during the third quarter of 2005. EPS for the nine month period ended September 30, 2006 was $0.08, up from $(0.22) for the nine month period ended September 30, 2005.
    For the quarter ended September 30, 2006, Adjusted Funds from Operations (FFO) per diluted share was $0.59, up 18.0 percent from $0.50 per share for the quarter ended September 30, 2005. Adjusted FFO excludes equity and financing-related charges incurred in both periods. Including these charges, FFO per diluted share was $0.57 for the quarter, up 23.9 percent from $0.46 per share for the quarter ended September 30, 2005.
For the nine months ended September 30, 2006, Adjusted FFO per diluted share was $1.82, up 15.2 percent from $1.58 per share for the nine months ended September 30, 2005. FFO per diluted share was $1.72 for the nine months ended September 30, 2006, up 11.0 percent from $1.55 per share for the nine months ended September 30, 2005.
 “Fundamentals are strong at our centers, and this is reflected in our results,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “Rents and recoveries are up, lease cancellation revenue has increased and last year’s strong opening of Northlake Mall (Charlotte, N.C.) is contributing to our growth. The environment continues to be very positive for high-quality regional malls.”
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Taubman Centers/2

Healthy Occupancy and Sales Increases
Occupancy for the portfolio was 89.5 percent at September 30, 2006, up 0.6 percent from 88.9 percent on September 30, 2005. Leased space at September 30, 2006 was 92.4 percent, up 1.2 percent from 91.2 percent on September 30, 2005. “Retailers want to be in the best locations and our centers offer excellent business opportunities for them,” said Mr. Taubman. “We are pleased with our occupancy growth and continue to expect that our year over year occupancy will be up at year end.”
Sales increases at Taubman properties continue to lead the regional mall industry and substantially exceed inflation, indicating that Taubman's dominant regional malls are increasing their market share. Mall tenant sales per square foot increased 7.7 percent for the quarter and 7.2 percent for the nine month period ended September 30. “Robust sales growth continued across our portfolio boding well for a strong holiday season,” added Mr. Taubman. “Growth was broad-based - across the country and across retail categories. In fact, every one of our centers had positive sales per square foot growth in the third quarter.”

Development Activities
The company’s numerous development activities continue to make progress including:
·  	The Pier Shops at Caesars (Atlantic City, N.J.) opened in June. Initial sales have been incredible, 65 stores are now open including seven restaurants, and new stores are opening weekly;	
·  	Construction and lease-up are progressing in the new Nordstrom wing at Twelve Oaks Mall (Novi, Mich.) , opening September 2007;	
·  	The new Nordstrom at Cherry Creek Shopping Center (Denver, Col.) is substantially under construction, opening October 2007;	
·  	The Mall at Partridge Creek (Clinton Township, Mich.), opening October 2007, is under construction and is proceeding very well on all fronts;	
·  	Stamford Town Center (Stamford, Conn.) announced a complete lease-up of its expansion area last week, opening November 2007; and	
·  	The renovated tenant space is completed at Waterside Shops at Pelican Bay (Naples, Fla.). Substantially all the tenants will be open for the 2006 holiday season. The new Nordstrom store will open in fall 2008.	

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Taubman Centers/3

Strong Balance Sheet
 The company refinanced its $140 million floating rate loan on Dolphin Mall (Miami, Fla.) when it became prepayable in August. Simultaneously, the company renegotiated its primary $350 million line of credit facility, extending it one year to February 2009 with an additional one-year extension option. This new facility, under which Dolphin Mall , Fairlane Town Center (Dearborn, Mich.) and Twelve Oaks Mall are direct borrowers, is priced at 70 basis points over LIBOR, a reduction of 10 basis points from the prior facility. “This pricing is very competitive with anyone in our sector,” said Lisa A. Payne, vice chairman and chief financial officer.
 In September the company completed an $81 million four-year construction facility for The Mall at Partridge Creek. This floating-rate facility bears interest at LIBOR plus 1.15 percent.
 Also in September, a $165 million permanent loan was placed on Waterside Shops at Pelican Bay in which Taubman owns a 25 percent interest. This new 10-year interest-only non-recourse loan carries an effective fixed interest rate of 5.54 percent.
 “At the end of the quarter, the company’s share of floating rate debt was just over $50 million,” added Ms. Payne. “This equates to less than one percent of our total market capitalization. We do not have another major debt maturity until January 2008. We believe that our balance sheet is one of the strongest among REITs.”

FFO per Share Guidance Increased
The company is raising its guidance for 2006 Adjusted FFO per share to the range of $2.55 to $2.60 and its guidance on FFO per share to the range of $2.46 to $2.51. Net income (loss) allocable to common shareholders for the year is expected to be in the range of $0.35 to $0.46 per share.

Supplemental Investor Information Available
 The company provides supplemental investor information coincident with its earnings announcements. It is available online at www.taubman.com under “Investor Relations.” This packet includes the following information:
·  	Income Statements	
·  	Earnings Reconciliations	
·  	Changes in Funds from Operations and Earnings Per Share	
·  	Components of Other Income, Other Operating Expense and Gains on Land Sales and Interest Income	
·  	Balance Sheets	

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Taubman Centers/4

·  	Debt Summary	
·  	Other Debt and Equity Information	
·  	Construction and Center Openings	
·  	Capital Spending	
·  	Divestitures	
·  	Operational Statistics	
·  	Owned Centers	
·  	Major Tenants in Owned Portfolio	
·  	Anchors in Owned Portfolio	

Investor Conference Call
 The company will provide an online Web simulcast and rebroadcast of its 2006 third quarter earnings release conference call in which the company will review the results for the quarter, progress on its development, financing plans and update guidance. The live broadcast of the conference call will be available online at www.taubman.com under "Investor Relations," www.earnings.com and www.streetevents.com on October 26 beginning at 10:00 a.m. EDT. The online replay will follow shortly after the call and continue for 90 days. In addition, the conference call will be available as a podcast at www.reitcafe.com .
 Taubman Centers, Inc. (NYSE: TCO), a real estate investment trust, currently owns and/or manages 23 urban and suburban regional and super regional shopping centers in 11 states with an industry-leading sales productivity averaging over $500 per square foot. In addition, The Mall at Partridge Creek is under construction and scheduled to open in October 2007. Taubman Centers is headquartered in Bloomfield Hills, Mich.
 
This press release contains forward-looking statements within the meaning of the Securities Act of 1933 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 changes in general economic and real estate conditions, changes in the interest rate environment and 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/5

TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	
Table 1 - Summary of Results	 	 	 	 	 	 	 	
For the Three and Nine Months Ended September 30, 2006 and 2005	 	 	 	 	 	 	 	
(in thousands of dollars, except as indicated)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
 	Three Months Ended September 30	 	Nine Months Ended September 30	
 	2006	 	2005	 	2006	 	2005	
 	 	 	 	 	 	 	 	
Income before minority and preferred interests (1)	17,561	 	9,752	 	59,941	 	39,195	
Minority share of consolidated joint ventures (2)	(3,043)	 	40	 	(7,175)	 	24	
Minority share of income of TRG (2)	(4,158)	 	(627)	 	(12,655)	 	(8,156)	
Distributions in excess of minority share of income of TRG	(4,721)	 	(8,262)	 	(14,017)	 	(18,874)	
TRG preferred distributions	(615)	 	(615)	 	(1,845)	 	(1,845)	
Net income	5,024	 	288	 	24,249	 	10,344	
Preferred dividends (3)	(3,658)	 	(9,318)	 	(20,064)	 	(21,618)	
Net income (loss) allocable to common shareowners	1,366	 	(9,030)	 	4,185	 	(11,274)	
Net income (loss) per common share - basic and diluted	0.03	 	(0.18)	 	0.08	 	(0.22)	
Beneficial interest in EBITDA - consolidated businesses (4) (5)	67,487	 	56,274	 	212,116	 	175,112	
Beneficial interest in EBITDA   - unconsolidated joint ventures (4) (5)	21,449	 	27,254	 	65,206	 	80,200	
Funds from Operations (4)	47,287	 	37,823	 	141,817	 	126,957	
Funds from Operations allocable to TCO (4)	30,799	 	23,683	 	91,944	 	78,736	
Funds from Operations per common share - basic (4)	0.58	 	0.47	 	1.75	 	1.56	
Funds from Operations per common share - diluted (4)	0.57	 	0.46	 	1.72	 	1.55	
Weighted average number of common shares outstanding-basic	52,808,698	 	50,765,091	 	52,575,448	 	50,313,815	
Weighted average number of common shares outstanding -diluted	53,128,557	 	50,765,091	 	52,845,469	 	50,313,815	
Common shares outstanding at end of period	52,836,421	 	50,792,695	 	 	 	 	
Weighted average units - Operating Partnership - basic	81,078,521	 	81,074,321	 	81,077,246	 	81,061,282	
Weighted average units - Operating Partnership - diluted	82,269,642	 	81,997,126	 	82,218,489	 	82,045,822	
Units outstanding at end of period - Operating Partnership	81,078,527	 	81,074,322	 	 	 	 	
Ownership percentage of the Operating Partnership at end of period	65.2%	 	62.6%	 	 	 	 	
Number of owned shopping centers at end of period	22	 	22	 	22	 	22	
 	 	 	 	 	 	 	 	
Operating Statistics (6) :	 	 	 	 	 	 	 	
Mall tenant sales	985,224	 	932,229	 	2,901,638	 	2,731,528	
Mall tenant sales - comparable (7)	943,484	 	891,280	 	2,768,028	 	2,612,493	
Ending occupancy (8)	89.5%	 	88.9%	 	89.5%	 	88.9%	
Ending occupancy - comparable (7) (8)	89.2%	 	89.3%	 	89.2%	 	89.3%	
Average occupancy (8)	89.2%	 	88.9%	 	88.8%	 	88.7%	
Average occupancy - comparable (7) (8)	88.9%	 	89.1%	 	88.6%	 	88.8%	
Leased space at end of period (8)	92.4%	 	91.2%	 	92.4%	 	91.2%	
Leased space at end of period - comparable (7) (8)	92.1%	 	91.4%	 	92.1%	 	91.4%	
Mall tenant occupancy costs as a percentage of tenant sales-consolidated businesses (5)	15.1%	 	15.3%	 	15.5%	 	15.7%	
Mall tenant occupancy costs as a percentage of tenant sales-unconsolidated joint ventures (5)	13.6%	 	14.0%	 	13.6%	 	14.3%	
Rent per square foot - consolidated businesses (5) (7)	42.88	 	41.32	 	43.11	 	41.51	
Rent per square foot - unconsolidated joint ventures (5) (7)	40.88	 	41.92	 	41.23	 	42.37	

Taubman Centers/6

 	 	
(1)	Income before minority and preferred interests for the three and nine months ended September 30, 2006 includes charges of $1.0 million and $3.1 million, respectively, in connection with the write-off of financing costs related to the refinancing of the loan on Dolphin Mall and pay-off of the loans on The Shops at Willow Bend prior to their maturity dates.	
 	 	
(2)	Because the net equity balances of the Operating Partnership and the outside partners in certain consolidated joint ventures are less than zero, the income allocated to the minority and outside partners during the three months and nine months ended September 30, 2006 and 2005 is equal to their share of distributions. The net equity of these minority partners is less than zero due to accumulated distributions in excess of net income and not as a result of operating losses.	
 	 	
(3)	Preferred dividends for the nine months ended September 30, 2006 include charges of $4.0 million and $0.6 million incurred in connection with the redemption of the remaining $113 million of the Series A Preferred Stock and the redemption of the Series I Preferred Stock, respectively. Preferred dividends for the three and nine months ended September 30, 2005 include a $3.1 million charge incurred in connection with the redemption of $87 million of the Series A Preferred Stock.	
 	 	
(4)	Beneficial Interest in EBITDA represents the Operating Partnership’s share of the earnings before interest 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 (loss) (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) 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.	
 	 	
 	As previously reported for 2005, because of a change in the Company's business practice to offer its tenants the option to pay a fixed charge or pay their share of common area maintenance (CAM) costs and related change to contractual terms of leases, the Company began adding back in the fourth quarter of 2005 all depreciation on CAM assets to calculate EBITDA and FFO, including depreciation on CAM assets that were recovered from tenants in the period of acquisition and depreciated over the recovery period. The Company has restated previously reported amounts in order to be comparable with 2006 amounts.	
 	 	
(5)	The results of Cherry Creek Shopping Center are presented within the Consolidated Businesses for periods beginning January 1, 2006, as a result of the Company's adoption of EITF 04-5. Results of Cherry Creek prior to 2006 are included within the Unconsolidated Joint Ventures.	
 	 	
(6)	All operating statistics, other than the number of owned properties at end of period, exclude The Pier Shops at Caesars, which opened in late June 2006.	
 	 	
(7)	Statistics exclude Northlake Mall, Waterside Shops at Pelican Bay, and Woodland. 2005 statistics have been restated to include comparable centers to 2006.	
 	 	
(8)	Statistics include anchor spaces at value centers (Arizona Mills, Dolphin Mall, and Great Lakes Crossing).	

 
Taubman Centers/7

TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	  	 	 	 	 	 	
Table 2 - Income Statement (1)	 	 	 	 	 	 	 	  	 	 	 	 	 	
For the Quarters Ended September 30, 2006 and 2005	 	 	   	 	
(in thousands of dollars)	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	
 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	
 	 	  	 	2006	 	 	  2005	 	 	
 	 	  	 	 	 	UNCONSOLIDATED	 	 	 	  	 	UNCONSOLIDATED	 	 	 	
 	 	  	 	CONSOLIDATED 	 	JOINT	 	 	 	  CONSOLIDATED	 	JOINT	 	 	 	
 	 	  	 	BUSINESSES 	 	VENTURES  	(2)	 	  BUSINESSES	 	VENTURES  	(2)	 	
 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	
REVENUES:	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	
Minimum rents	 	 	 	 	 	76,404	 	 	35,764	 	 	 	 	 	63,863	 	 	45,365	 	 	 	 	
Percentage rents  	 	 	 	 	 	2,653	 	 	1,588	 	 	 	 	 	1,319	 	 	1,147	 	 	 	 	
Expense recoveries  	 	 	 	 	 	49,105	 	 	20,915	 	 	 	 	 	39,985	 	 	24,135	 	 	 	 	
Management, leasing and development services  	 	 	 	 	 	2,586	 	 	 	 	 	 	 	 	3,390	 	 	 	 	 	 	 	
Other  	 	 	 	 	 	8,165	 	 	1,400	 	 	 	 	 	5,602	 	 	2,195	 	 	 	 	
  Total revenues	 	 	 	 	 	138,913	 	 	59,667	 	 	 	 	 	114,159	 	 	72,842	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maintenance, taxes and utilities  	 	 	 	 	 	37,966	 	 	14,921	 	 	 	 	 	32,597	 	 	17,307	 	 	 	 	
Other operating  	 	 	 	 	 	18,086	 	 	6,359	 	 	 	 	 	13,410	 	 	6,565	 	 	 	 	
Management, leasing and development services  	 	 	 	 	 	1,188	 	 	 	 	 	 	 	 	2,444	 	 	 	 	 	 	 	
General and administrative  	 	 	 	 	 	7,122	 	 	 	 	 	 	 	 	6,764	 	 	 	 	 	 	 	
Interest expense (3)  	 	 	 	 	 	32,314	 	 	13,501	 	 	 	 	 	27,219	 	 	16,987	 	 	 	 	
Depreciation and amortization (4)  	 	 	 	 	 	32,910	 	 	11,189	 	 	 	 	 	31,677	 	 	13,999	 	 	 	 	
  Total expenses	 	 	 	 	 	129,586	 	 	45,970	 	 	 	 	 	114,111	 	 	54,858	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on land sales and interest income	 	 	 	 	 	1,152	 	 	341	 	 	 	 	 	436	 	 	208	 	 	 	 	
 	 	 	 	 	 	10,479	 	 	14,038	 	 	 	 	 	484	 	 	18,192	 	 	 	 	
Equity in income of Unconsolidated Joint Ventures	 	 	 	 	 	7,082	 	 	 	 	 	 	 	 	9,268	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before minority and preferred interests	 	 	 	 	 	17,561	 	 	 	 	 	 	 	 	9,752	 	 	 	 	 	 	 	
Minority and preferred interests:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TRG preferred distributions  	 	 	 	 	 	(615	)	 	 	 	 	 	 	 	(615	)	 	 	 	 	 	 	
Minority share of consolidated joint ventures  	 	 	 	 	 	(3,043	)	 	 	 	 	 	 	 	40	 	 	 	 	 	 	 	
Minority share of income of TRG  	 	 	 	 	 	(4,158	)	 	 	 	 	 	 	 	(627	)	 	 	 	 	 	 	
Distributions in excess of minority share of income of TRG  	 	 	 	 	 	(4,721	)	 	 	 	 	 	 	 	(8,262	)	 	 	 	 	 	 	
Net income	 	 	 	 	 	5,024	 	 	 	 	 	 	 	 	288	 	 	 	 	 	 	 	
Preferred dividends (5)	 	 	 	 	 	(3,658	)	 	 	 	 	 	 	 	(9,318	)	 	 	 	 	 	 	
Net income (loss) allocable to common shareowners	 	 	 	 	 	1,366	 	 	 	 	 	 	 	 	(9,030	)	 	 	 	 	 	 	

SUPPLEMENTAL INFORMATION (6) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA - 100%  	 	 	 	 	 	75,703	 	 	38,728	 	 	 	 	 	59,380	 	 	49,178	 	 	 	 	
EBITDA - outside partners' share  	 	 	 	 	 	(8,216	)	 	(17,279	)	 	 	 	 	(3,106	)	 	(21,924	)	 	 	 	
Beneficial interest in EBITDA  	 	 	 	 	 	67,487	 	 	21,449	 	 	 	 	 	56,274	 	 	27,254	 	 	 	 	
Beneficial interest expense  	 	 	 	 	 	(29,029	)	 	(7,679	)	 	 	 	 	(25,805	)	 	(9,448	)	 	 	 	
Non-real estate depreciation  	 	 	 	 	 	(668	)	 	 	 	 	 	 	 	(519	)	 	 	 	 	 	 	
Preferred dividends and distributions  	 	 	 	 	 	(4,273	)	 	 	 	 	 	 	 	(9,933	)	 	 	 	 	 	 	
Funds from Operations contribution  	 	 	 	 	 	33,517	 	 	13,770	 	 	 	 	 	20,017	 	 	17,806	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net straightline adjustments to rental revenue, recoveries,  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
and ground rent expense at TRG %  	 	 	 	 	 	176	 	 	152	 	 	 	 	 	471	 	 	-	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1)The results of Cherry Creek Shopping Center are presented within the Consolidated Businesses for periods beginning January 1, 2006, as a result of the Company's adoption of EITF 04-5. Results of Cherry Creek prior to 2006 are included within the Unconsolidated Joint Ventures. In addition, in 2006 the Company modified its income statement presentation for depreciation of center replacement assets, revenues and expenses related to marketing and promotion services, and gains on land sales and interest income. As a result, certain reclassifications have been made to prior year amounts to conform to current year 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)Interest expense for the three months ended September 30, 2006 includes a charge of $1.0 million in connection with the write-off of financing costs related to the refinancing of the loan on Dolphin Mall, prior to maturity.	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(4)Included in depreciation and amortization of the Consolidated Businesses and Unconsolidated Joint Ventures (both at 100%) are $2.7 million and $2.4 million, respectively, of depreciation of center replacement assets for the three months ended September 30, 2006, and $2.6 million and $2.4 million, respectively, for the three months ended September 30, 2005.	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(5)Preferred dividends for the three months ended September 30, 2005 include charges of $3.1 million incurred in connection with the redemption of $87 million of the Series A Preferred Stock.	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(6)In order to be comparable to 2006 amounts, EBITDA and FFO for the three months ended September 30, 2005 have been restated from amounts previously reported to include an add-back of depreciation of center replacement assets reimbursed in the period of acquisition.	 	

 
Taubman Centers/8

TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	
Table 3 - Income Statement (1)	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	
For the Year to Date Periods Ended September 30, 2006 and 2005	   	 	
(in thousands of dollars)	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	
 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	
 	 	  	 	2006	 	 	  2005	 	
 	 	 	 	 	 	 	 	 	UNCONSOLIDATED  	 	 	 	 	 	 	 	 	UNCONSOLIDATED	 	 	 	 	
 	 	 	 	 	 	CONSOLIDATED   	 	 	JOINT	 	 	 	 	 	CONSOLIDATED 	 	 	JOINT	 	 	 	 	
	 	 	 	 	 	BUSINESSES   	 	 	VENTURES	(2)	 	 	BUSINESSES	 	 	VENTURES	 	(2)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Minimum rents  	 	 	 	 	 	228,986	 	 	106,194	 	 	 	 	 	190,241	 	 	136,630	 	 	 	 	
Percentage rents  	 	 	 	 	 	6,252	 	 	3,302	 	 	 	 	 	3,736	 	 	2,809	 	 	 	 	
Expense recoveries  	 	 	 	 	 	146,150	 	 	59,414	 	 	 	 	 	118,767	 	 	71,246	 	 	 	 	
Management, leasing and development services  	 	 	 	 	 	8,669	 	 	 	 	 	 	 	 	8,924	 	 	 	 	 	 	 	
Other  	 	 	 	 	 	26,153	 	 	7,365	 	 	 	 	 	21,854	 	 	7,020	 	 	 	 	
  Total revenues	 	 	 	 	 	416,210	 	 	176,275	 	 	 	 	 	343,522	 	 	217,705	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maintenance, taxes and utilities  	 	 	 	 	 	113,249	 	 	42,540	 	 	 	 	 	94,756	 	 	51,044	 	 	 	 	
Other operating  	 	 	 	 	 	51,157	 	 	17,520	 	 	 	 	 	42,999	 	 	21,431	 	 	 	 	
Management, leasing and development services  	 	 	 	 	 	4,233	 	 	 	 	 	 	 	 	5,764	 	 	 	 	 	 	 	
General and administrative  	 	 	 	 	 	21,592	 	 	 	 	 	 	 	 	20,509	 	 	 	 	 	 	 	
Interest expense (3)  	 	 	 	 	 	98,468	 	 	40,096	 	 	 	 	 	79,251	 	 	50,504	 	 	 	 	
Depreciation and amortization (4)  	 	 	 	 	 	99,614	 	 	31,613	 	 	 	 	 	94,746	 	 	39,891	 	 	 	 	
  Total expenses	 	 	 	 	 	388,313	 	 	131,769	 	 	 	 	 	338,025	 	 	162,870	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on land sales and interest income	 	 	 	 	 	9,079	 	 	863	 	 	 	 	 	5,988	 	 	482	 	 	 	 	
 	 	 	 	 	 	36,976	 	 	45,369	 	 	 	 	 	11,485	 	 	55,317	 	 	 	 	
Equity in income of Unconsolidated Joint Ventures	 	 	 	 	 	22,965	 	 	 	 	 	 	 	 	27,710	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before minority and preferred interests	 	 	 	 	 	59,941	 	 	 	 	 	 	 	 	39,195	 	 	 	 	 	 	 	
Minority and preferred interests:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TRG preferred distributions  	 	 	 	 	 	(1,845	)	 	 	 	 	 	 	 	(1,845	)	 	 	 	 	 	 	
Minority share of consolidated joint ventures  	 	 	 	 	 	(7,175	)	 	 	 	 	 	 	 	24	 	 	 	 	 	 	 	
Minority share of income of TRG  	 	 	 	 	 	(12,655	)	 	 	 	 	 	 	 	(8,156	)	 	 	 	 	 	 	
Distributions in excess of minority share of income of TRG  	 	 	 	 	 	(14,017	)	 	 	 	 	 	 	 	(18,874	)	 	 	 	 	 	 	
Net income	 	 	 	 	 	24,249	 	 	 	 	 	 	 	 	10,344	 	 	 	 	 	 	 	
Preferred dividends (5)	 	 	 	 	 	(20,064	)	 	 	 	 	 	 	 	(21,618	)	 	 	 	 	 	 	
Net income (loss) allocable to common shareowners	 	 	 	 	 	4,185	 	 	 	 	 	 	 	 	(11,274	)	 	 	 	 	 	 	

SUPPLEMENTAL INFORMATION (6) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA - 100%  	 	 	 	 	 	235,058	 	 	117,078	 	 	 	 	 	185,482	 	 	145,712	 	 	 	 	
EBITDA - outside partners' share  	 	 	 	 	 	(22,942	)	 	(51,872	)	 	 	 	 	(10,370	)	 	(65,512	)	 	 	 	
Beneficial interest in EBITDA  	 	 	 	 	 	212,116	 	 	65,206	 	 	 	 	 	175,112	 	 	80,200	 	 	 	 	
Beneficial interest expense  	 	 	 	 	 	(88,893	)	 	(22,852	)	 	 	 	 	(75,187	)	 	(28,095	)	 	 	 	
Non-real estate depreciation  	 	 	 	 	 	(1,851	)	 	 	 	 	 	 	 	(1,610	)	 	 	 	 	 	 	
Preferred dividends and distributions  	 	 	 	 	 	(21,909	)	 	 	 	 	 	 	 	(23,463	)	 	 	 	 	 	 	
Funds from Operations contribution  	 	 	 	 	 	99,463	 	 	42,354	 	 	 	 	 	74,852	 	 	52,105	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net straightline adjustments to rental revenue, recoveries,  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
and ground rent expense at TRG %  	 	 	 	 	 	200	 	 	375	 	 	 	 	 	1,267	 	 	124	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1)The results of Cherry Creek Shopping Center are presented within the Consolidated Businesses for periods beginning January 1, 2006, as a result of the Company's adoption of EITF 04-5. Results of Cherry Creek prior to 2006 are included within the Unconsolidated Joint Ventures. In addition, in 2006 the Company modified its income statement presentation for depreciation of center replacement assets, revenues and expenses related to marketing and promotion services, and gains on land sales and interest income. As a result, certain reclassifications have been made to prior year amounts to conform to current year 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)Interest expense for the nine months ended September 30, 2006 includes charges of $1.0 million and $2.1 million in connection with the write-off of financing costs related to the refinancing of the loan on Dolphin Mall and pay-off of the loans on The Shops at Willow Bend, respectively, prior to their maturity dates.	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(4)Included in depreciation and amortization of the Consolidated Businesses and Unconsolidated Joint Ventures (both at 100%) are $7.4 million and $4.5 million, respectively, of depreciation of center replacement assets for the nine months ended September 30, 2006, and $7.7 million and $5.4 million, respectively, for the nine months ended September 30, 2005.	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(5)Preferred dividends for the nine months ended September 30, 2006 include charges of $4.0 million and $0.6 million incurred in connection with the redemption of the remaining $113 million of the Series A Preferred Stock and the redemption of the Series I Preferred Stock, respectively. Preferred dividends for the nine months ended September 30, 2005 include a $3.1 million charge incurred in connection with the redemption of $87 million of the Series A Preferred Stock.	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(6)In order to be comparable to 2006 amounts, EBITDA and FFO for the nine months ended September 30, 2005 have been restated from amounts previously reported to include an add-back of depreciation of center replacement assets reimbursed in the period of acquisition.	 	

 
Taubman Centers/9

TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	 	 	 	 	
Table 4 - Reconciliation of Net Income (Loss) Allocable to Common Shareowners to Funds from Operations	 	 	 	 	 	
  and Adjusted Funds from Operations	 	 	 	 	 	 	 	
For the Periods Ended September 30, 2006 and 2005	 	 	
(in thousands of dollars; amounts allocable to TCO may not recalculate due to rounding)	 	 	 	 	 	
 	 	  	 	 	 	 	 	 	 	 	 	
 	 	  	 	Three Months Ended	 	Year to Date	 	
 	 	  	 	2006	 	2005	 	2006	 	2005	 	
 	 	  	 	 	 	 	 	 	 	 	 	
Net income (loss) allocable to common shareowners	 	 	 	 	 	1,366	 	 	(9,030	)	 	4,185	 	 	(11,274	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization (1) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated businesses at 100%  	 	 	 	 	 	32,910	 	 	31,677	 	 	99,614	 	 	94,746	 	
Minority partners in consolidated joint ventures  	 	 	 	 	 	(3,555	)	 	(1,818	)	 	(9,552	)	 	(6,496	)	
Share of unconsolidated joint ventures  	 	 	 	 	 	6,688	 	 	8,538	 	 	19,389	 	 	24,395	 	
Non-real estate depreciation  	 	 	 	 	 	(668	)	 	(519	)	 	(1,851	)	 	(1,610	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add minority interests:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Minority share of income of TRG  	 	 	 	 	 	4,158	 	 	627	 	 	12,655	 	 	8,156	 	
Distributions in excess of minority share of income of TRG  	 	 	 	 	 	4,721	 	 	8,262	 	 	14,017	 	 	18,874	 	
Distributions in excess of minority share of income of  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
consolidated joint ventures  	 	 	 	 	 	1,667	 	 	86	 	 	3,360	 	 	166	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations	 	 	 	 	 	47,287	 	 	37,823	 	 	141,817	 	 	126,957	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	 	 	 	 	65.1%	 	 	62.6%	 	 	64.8%	 	 	62.1%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations allocable to TCO	 	 	 	 	 	30,799	 	 	23,683	 	 	91,944	 	 	78,736	 	

Funds from Operations (1) (2)	 	 	 	 	 	47,287	 	 	37,823	 	 	141,817	 	 	126,957	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Charge upon redemption of Series A Preferred Stock	 	 	 	 	 	 	 	 	3,115	 	 	4,045	 	 	3,115	 	
Charge upon redemption of Series I Preferred Stock	 	 	 	 	 	 	 	 	 	 	 	607	 	 	 	 	
Write-off of financing costs	 	 	 	 	 	992	 	 	 	 	 	3,057	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations (2)	 	 	 	 	 	48,279	 	 	40,938	 	 	149,526	 	 	130,072	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	 	 	 	 	65.1%	 	 	62.6%	 	 	64.8%	 	 	62.1%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations allocable to TCO (2)	 	 	 	 	 	31,445	 	 	25,634	 	 	96,945	 	 	80,687	 	

(1)Depreciation and amortization includes depreciation of center replacement assets recoverable from tenants, which were previously classified as recoverable expenses in the Company's financial statements. TRG’s beneficial interest in these amounts are $3.6 million and $3.8 million for the three months ended September 30, 2006 and 2005, respectively, and $9.4 million and $10.2 million for the nine months ended September 30, 2006 and 2005, respectively. In order to be comparable to 2006 amounts, 2005 amounts have been restated to include depreciation of center replacement assets that were reimbursed in the period of acquisition.	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(2)Adjusted FFO excludes the following unusual and/or nonrecurring items: charges of $1.0 million ($0.012 per share) during the third quarter of 2006 in connection with the write-off of financing costs related to the refinancing of the loan on Dolphin Mall prior to maturity, charges of $4.0 million ($0.050 per share) and $0.6 million ($0.005 per share) incurred during the second quarter of 2006 in connection with the redemption of the remaining $113 million of the Series A Preferred Stock and the redemption of the Series I Preferred Stock, respectively, and a $2.1 million ($0.025 per share) charge during the first quarter of 2006 in connection with the write-off of financing costs related to the pay-off of the loans on The Shops at Willow Bend prior to their maturity date. Adjusted FFO excludes a $3.1 million charge incurred during the third quarter of 2005 in connection with the redemption of $87 million of Series A Preferred Stock. 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/10

TAUBMAN CENTERS, INC.	 	  	 	  	 	 	 	 	 	 	 	
Table 5 - Reconciliation of Net Income to Beneficial Interest in EBITDA	 	  	 	  	 	 	 	 	 	 	 	
For the Periods Ended September 30, 2006 and 2005	 	
(in thousands of dollars; amounts allocable to TCO may not recalculate due to rounding)	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Three Months Ended  	 	  Year to Date	 	
 	 	 	 	 	 	2006	 	 	2005	 	 	2006	 	 	2005	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	 	 	 	 	5,024	 	 	288	 	 	24,249	 	 	10,344	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization (1) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated businesses at 100%  	 	 	 	 	 	32,910	 	 	31,677	 	 	99,614	 	 	94,746	 	
Minority partners in consolidated joint ventures  	 	 	 	 	 	(3,555	)	 	(1,818	)	 	(9,552	)	 	(6,496	)	
Share of unconsolidated joint ventures  	 	 	 	 	 	6,688	 	 	8,538	 	 	19,389	 	 	24,395	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) preferred interests and interest expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred distributions  	 	 	 	 	 	615	 	 	615	 	 	1,845	 	 	1,845	 	
Interest expense:  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  Consolidated businesses at 100%	 	 	 	 	 	32,314	 	 	27,219	 	 	98,468	 	 	79,251	 	
  Minority partners in consolidated joint ventures	 	 	 	 	 	(3,285	)	 	(1,414	)	 	(9,575	)	 	(4,064	)	
  Share of unconsolidated joint ventures	 	 	 	 	 	7,679	 	 	9,448	 	 	22,852	 	 	28,095	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add minority interests:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Minority share of income of TRG  	 	 	 	 	 	4,158	 	 	627	 	 	12,655	 	 	8,156	 	
Distributions in excess of minority share of income of TRG  	 	 	 	 	 	4,721	 	 	8,262	 	 	14,017	 	 	18,874	 	
Distributions in excess of minority share of income of  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  consolidated joint ventures  	 	 	 	 	 	1,667	 	 	86	 	 	3,360	 	 	166	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beneficial Interest in EBITDA	 	 	 	 	 	88,936	 	 	83,528	 	 	277,322	 	 	255,312	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	 	 	 	 	65.1%	 	 	62.6%	 	 	64.8%	 	 	62.1%	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beneficial Interest in EBITDA allocable to TCO	 	 	 	 	 	57,926	 	 	52,301	 	 	179,801	 	 	158,426	 	

(1)Depreciation and amortization includes depreciation of center replacement assets recoverable from tenants, which were previously classified as recoverable expenses in the Company's financial statements. In order to be comparable to 2006 amounts, 2005 amounts have been restated to include depreciation of center replacement assets that were reimbursed in the period of acquisition.	 	

 

 
Taubman Centers/11

TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	
Table 6 - Balance Sheets	 	 	 	 	 	 	 	
As of September 30, 2006 and December 31, 2005	 	
(in thousands of dollars)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
 	 	 	 	As of	 	
 	 	 	 	September 30, 2006	 	December 31, 2005	 	
Consolidated Balance Sheet of Taubman Centers, Inc. (1) :	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	 	 	 	 	
  Properties	 	 	 	 	 	3,341,586	 	 	3,081,324	 	
  Accumulated depreciation and amortization	 	 	 	 	 	(792,844	)	 	(651,665	)	
 	 	 	 	 	 	2,548,742	 	 	2,429,659	 	
  Investment in Unconsolidated Joint Ventures	 	 	 	 	 	79,389	 	 	106,117	 	
  Cash and cash equivalents	 	 	 	 	 	18,698	 	 	163,577	 	
  Accounts and notes receivable, net	 	 	 	 	 	29,559	 	 	41,717	 	
  Accounts and notes receivable from related parties	 	 	 	 	 	3,603	 	 	2,400	 	
  Deferred charges and other assets	 	 	 	 	 	98,583	 	 	54,110	 	
 	 	 	 	 	 	2,778,574	 	 	2,797,580	 	
 	 	 	 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	 	 	 	
  Notes payable	 	 	 	 	 	2,283,355	 	 	2,089,948	 	
  Accounts payable and accrued liabilities	 	 	 	 	 	222,509	 	 	235,410	 	
  Dividends and distributions payable	 	 	 	 	 	16,115	 	 	15,819	 	
  Distributions in excess of investments in and net income of	 	 	 	 	 	 	 	 	 	 	
  Unconsolidated Joint Ventures	 	 	 	 	 	103,764	 	 	101,028	 	
 	 	 	 	 	 	2,625,743	 	 	2,442,205	 	
 	 	 	 	 	 	 	 	 	 	 	
Preferred Equity of TRG	 	 	 	 	 	29,217	 	 	29,217	 	
 	 	 	 	 	 	 	 	 	 	 	
Shareowners' Equity:	 	 	 	 	 	 	 	 	 	 	
  Series A Cumulative Redeemable Preferred Stock	 	 	 	 	 	 	 	 	45	 	
  Series B Non-Participating Convertible Preferred Stock	 	 	 	 	 	28	 	 	29	 	
  Series G Cumulative Redeemable Preferred Stock	 	 	 	 	 	 	 	 	 	 	
  Series H Cumulative Redeemable Preferred Stock	 	 	 	 	 	 	 	 	 	 	
  Common Stock	 	 	 	 	 	528	 	 	519	 	
  Additional paid-in capital	 	 	 	 	 	633,983	 	 	739,090	 	
  Accumulated other comprehensive income (loss)	 	 	 	 	 	(9,780	)	 	(9,051	)	
  Dividends in excess of net income	 	 	 	 	 	(501,145	)	 	(404,474	)	
 	 	 	 	 	 	123,614	 	 	326,158	 	
 	 	 	 	 	 	2,778,574	 	 	2,797,580	 	
 	 	 	 	 	 	 	 	 	 	 	
Combined Balance Sheet of Unconsolidated Joint Ventures (2) :	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	 	 	 	 	
  Properties	 	 	 	 	 	930,858	 	 	1,076,743	 	
  Accumulated depreciation and amortization	 	 	 	 	 	(313,185	)	 	(363,394	)	
 	 	 	 	 	 	617,673	 	 	713,349	 	
  Cash and cash equivalents	 	 	 	 	 	32,754	 	 	33,498	 	
  Accounts and notes receivable	 	 	 	 	 	15,634	 	 	23,189	 	
  Deferred charges and other assets	 	 	 	 	 	20,009	 	 	24,458	 	
 	 	 	 	 	 	686,070	 	 	794,494	 	
 	 	 	 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	 	 	 	
  Notes payable	 	 	 	 	 	983,461	 	 	999,545	 	
  Accounts payable and other liabilities	 	 	 	 	 	36,566	 	 	59,322	 	
 	 	 	 	 	 	1,020,027	 	 	1,058,867	 	
 	 	 	 	 	 	 	 	 	 	 	
Accumulated Deficiency in Assets:	 	 	 	 	 	 	 	 	 	 	
  Accumulated deficiency in assets - TRG	 	 	 	 	 	(176,694	)	 	(170,124	)	
  Accumulated deficiency in assets - Joint Venture Partners	 	 	 	 	 	(154,542	)	 	(91,179	)	
  Accumulated other comprehensive income (loss) - TRG	 	 	 	 	 	(2,152	)	 	(2,430	)	
  Accumulated other comprehensive income (loss) - Joint Venture Partners	 	 	 	 	 	(569	)	 	(640	)	
 	 	 	 	 	 	(333,957	)	 	(264,373	)	
 	 	 	 	 	 	686,070	 	 	794,494	 	

(1)The September 30, 2006 balance sheet amounts include Cherry Creek Shopping Center, which the Company began consolidating upon the adoption of EITF 04-5 on January 1, 2006. The effect of adopting EITF 04-5 on the January 1, 2006 balance sheet was an increase in assets of approximately $128 million and liabilities of approximately $180 million, and a $52 million reduction of beginning equity, representing the cumulative effect of change in accounting principle.	
 	 	 	 	 	 	 	 	 	 	 	
(2)Amounts exclude The Pier Shops at Caesars, which TRG made a $4 million contribution to in January 2005. Amounts as of September 30, 2006 also exclude Cherry Creek Shopping Center, which the Company began consolidating upon the adoption of EITF 04-5.	

 
Taubman Centers/12

TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Table 7 - 2006 Earnings Guidance	 	 	
(all dollar amounts per common share on a diluted basis; amounts may not add due to rounding)	 	 	

 	 	 	 	 	  Range for Year Ended	 	 	Equity and	 	 	 	 	 	 	 	
 	 	 	 	 	  December 31, 2006 Before	 	 	Financing	 	 	Range for Year Ended	 	
	 	 	 	 	  Equity and Financing Costs	 	 	Costs (1)	 	 	December 31, 2006	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Guidance for Funds from Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  per common share	 	 	 	 	 	2.55	 	 	2.60	 	 	(0.09	)	 	2.46	 	 	2.51	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate depreciation - TRG	 	 	 	 	 	(1.72	)	 	(1.69	)	 	 	 	 	(1.72	)	 	(1.69	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation of TCO's additional basis in TRG	 	 	 	 	 	(0.13	)	 	(0.13	)	 	 	 	 	(0.13	)	 	(0.13	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Distributions in excess of earnings allocable	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  to minority interest	 	 	 	 	 	(0.21	)	 	(0.17	)	 	(0.05	)	 	(0.27	)	 	(0.23	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Guidance for net income (loss) allocable	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  to common shareholders, per common share	 	 	 	 	 	0.49	 	 	0.61	 	 	(0.15	)	 	0.35	 	 	0.46	 	

(1)The Company recognized charges of $3.1 million during 2006 in connection with the write-off of financing costs related to the refinancing of the loan on Dolphin Mall and pay off of the loans on The Shops at Willow Bend, respectively. The Company also recognized charges of $4.7 million during the second quarter of 2006 in connection with the redemption of the Series A and Series I Preferred Stock.