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): February 09, 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 February 9, 2010, the Company issued a press release announcing its results of operations for the year ended December 31, 2009. 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 February 9, 2010, entitled “Taubman Centers Issues 2009 Results and 2010 Guidance.”	

 
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: February 9, 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 February 9, 2010, entitled “Taubman Centers Issues 2009 Results and 2010 Guidance.”	

Exhibit 99
 	 	 	 	 	
Taubman Centers, Inc.
200 East Long Lake Road
Suit 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 ISSUES 2009 RESULTS AND 2010 GUIDANCE

 	•	 	Tenant Sales Turned Positive in the Fourth Quarter	
 		
 	•	 	Quarter’s Results Impacted by Litigation Charges	
 		
 	•	 	Annual Adjusted FFO Per Share Down Less than 1% in Difficult Economic Environment	
 		
 	•	 	2010 Outlook Reflects Continued Challenges	
BLOOMFIELD HILLS, Mich., Feb. 9, 2010 — Taubman Centers, Inc. (NYSE: TCO) today reported financial results for the quarter and full year periods ended December 31, 2009.
Net income allocable to common shareholders for the quarter ended December 31, 2009 was $0.07 per diluted common share (EPS), versus a loss of $1.90 per diluted share for the fourth quarter of 2008. EPS for the year ended December 31, 2009 was a $1.31 loss versus a $1.64 loss for the year ended December 2008. Results for the fourth quarter of 2009 included $38.5 million of litigation charges related to Westfarms (West Hartford, Conn.) , of which the company’s share was $30.4 million. In addition, the 2009 annual results were impacted by the previously announced $2.5 million restructuring charges and $166.7 million impairment charges (or $160.8 million at the company’s share) relating to The Pier Shops at Caesars (Atlantic City, N.J.) and Regency Square (Richmond, Va.). The 2008 amounts were impacted by impairment charges totaling $126.3 million for development projects in Sarasota, Fla. and Oyster Bay, N.Y.
For the quarter ended December 31, 2009 Funds from Operations (FFO) per diluted share was $0.56, compared to a loss of $0.57 per diluted share for the quarter ended December 31, 2008. For the year ended December 31, 2009, FFO per diluted share was $0.68 compared to $1.51 for the year ended December 31, 2008.
For the quarter ended December 31, 2009 Adjusted FFO per diluted share (which excludes litigation, restructuring and impairment charges) was $0.93 versus $1.00 per diluted share for the quarter ended December 31, 2008. For the year ended December 31, 2009, Adjusted FFO per diluted share was $3.06, down 0.6 percent from $3.08 per diluted share for the year ended December 31, 2008.
“We are delighted to see a positive 3.8 percent tenant sales gain in the fourth quarter even against an easy comparison from the prior year,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “This is the first positive tenant sales performance since the third quarter of 2008. While rents across the portfolio are modestly down, we benefited from the collection of Macao Studio City development fees, improvements in tenant recoveries and operational cost savings.”
(More)

 

Taubman Centers/2
Sales Increase in Quarter; Occupancy and Rents as Expected
With the positive fourth quarter sales gain, the company ended the year down 6.7 percent to average $498 per square foot in 2009. “As we’ve said many times, tenant sales are the most important driver of our business,” said Mr. Taubman. “This result is in line with our sales guidance from the beginning of the year.”
Ending occupancy for the portfolio was 89.6 percent on December 31, 2009 versus 90.5 percent on December 31, 2008.
Rents per square foot in Taubman’s consolidated portfolio averaged $42.56 for the quarter versus $43.96 for the fourth quarter of 2008. Rents per square foot in Taubman’s consolidated portfolio averaged $43.31 for full year 2009 versus $43.95 for 2008.
Balance Sheet Strength
“The company continues to benefit from a strong balance sheet, with modest debt maturities in 2010,” said Lisa A. Payne, vice chairman and chief financial officer of Taubman Centers. “We are pleased to have come through 2009 as one of the few REITs that maintained its cash dividend and did not raise any common equity.” Taubman Centers finished the ten year period ending December 31, 2009 among the top ten total shareholder returns of all REITs.
2010 Guidance
The company is introducing guidance for 2010. For the full year 2010, the company expects FFO per diluted share excluding The Pier Shops to be in the range of $2.55 to $2.75. Net income allocable to common shareholders for the year is expected to be in the range of $0.64 to $0.89 per share.
The holding period of The Pier Shops remains uncertain and the noncash impact of owning The Pier Shops (including default interest) results in an incremental FFO charge of approximately a penny per share per month. Including the impact of depreciation and amortization, the impact on EPS is expected to be a negative penny and a half per share per month. A noncash accounting gain is expected to be recognized when the loan obligation is extinguished upon transfer of title of The Pier Shops. This gain has also been excluded from EPS and FFO per share estimates.
Supplemental Investor Information Available
The company provides supplemental investor information along with its earnings announcements, available online at www.taubman.com under “Investor Relations.” This includes the following:

 	•	 	Income Statements	
 		
 	•	 	Earnings Reconciliations	
 		
 	•	 	Changes in Funds from Operations and Earnings (Loss) Per Share	
 		
 	•	 	Components of Other Income, Other Operating Expense, and Gains on Land Sales and Other Nonoperating Income	
 		
 	•	 	Recoveries Ratio Analysis	
 		
 	•	 	Balance Sheets	
 		
 	•	 	Debt Summary	
 		
 	•	 	Other Debt, Equity and Certain Balance Sheet Information	
 		
 	•	 	Construction	
 		
 	•	 	Capital Spending	
 		
 	•	 	Operational Statistics	
(More)

 

Taubman Centers /3

 	•	 	Owned Centers	
 		
 	•	 	Major Tenants in Owned Portfolio	
 		
 	•	 	Anchors in Owned Portfolio	
Investor Conference Call
The company will host a conference call at 11:00 AM Eastern Standard Time on February 10 to discuss these results, business conditions and the company’s outlook for 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 approximately 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/4
TAUBMAN CENTERS, INC.
Table 1 — Summary of Results
For the Periods Ended December 31, 2009 and 2008
(in thousands of dollars, except as indicated)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Year Ended	
 	 	2009	 	2008 (2)	 	2009	 	2008 (2)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) (1), (2)	 	 	14,235	 	 	 	(80,818	)	 	 	(79,161	)	 	 	(8,052	)	
Noncontrolling share of income of consolidated joint ventures (2)	 	 	(2,845	)	 	 	(3,719	)	 	 	(3,115	)	 	 	(7,441	)	
Distributions in excess of noncontrolling share of income of consolidated joint ventures (2)	 	 	 	 	 	 	(621	)	 	 	 	 	 	 	(8,594	)	
Noncontrolling share of (income) loss of TRG (2)	 	 	(2,794	)	 	 	29,204	 	 	 	31,224	 	 	 	11,338	 	
Distributions in excess of noncontrolling share of loss of TRG (2)	 	 	 	 	 	 	(40,187	)	 	 	 	 	 	 	(55,370	)	
TRG series F preferred distributions	 	 	(615	)	 	 	(615	)	 	 	(2,460	)	 	 	(2,460	)	
Preferred stock dividends	 	 	(3,659	)	 	 	(3,659	)	 	 	(14,634	)	 	 	(14,634	)	
Distributions to participating securities of TRG	 	 	(362	)	 	 	(361	)	 	 	(1,560	)	 	 	(1,446	)	
Net income (loss) attributable to Taubman Centers, Inc. common shareowners — basic (2)	 	 	3,960	 	 	 	(100,776	)	 	 	(69,706	)	 	 	(86,659	)	
Net income (loss) attributable to Taubman Centers, Inc. common shareowners — diluted (2)	 	 	4,008	 	 	 	(100,776	)	 	 	(69,706	)	 	 	(86,659	)	
Net income (loss) per common share — basic (2)	 	 	0.07	 	 	 	(1.90	)	 	 	(1.31	)	 	 	(1.64	)	
Net income (loss) per common share — diluted (2)	 	 	0.07	 	 	 	(1.90	)	 	 	(1.31	)	 	 	(1.64	)	
Beneficial interest in EBITDA — Consolidated Businesses (1), (3)	 	 	95,860	 	 	 	(27,360	)	 	 	168,651	 	 	 	204,190	 	
Beneficial interest in EBITDA — Unconsolidated Joint Ventures (3)	 	 	(3,082	)	 	 	29,695	 	 	 	67,815	 	 	 	101,089	 	
Funds from Operations (1), (3)	 	 	46,389	 	 	 	(45,445	)	 	 	55,026	 	 	 	122,236	 	
Funds from Operations attributable to TCO (1), (3)	 	 	31,092	 	 	 	(30,314	)	 	 	36,799	 	 	 	81,274	 	
Funds from Operations per common share — basic (1), (3)	 	 	0.58	 	 	 	(0.57	)	 	 	0.69	 	 	 	1.54	 	
Funds from Operations per common share — diluted (1), (3)	 	 	0.56	 	 	 	(0.57	)	 	 	0.68	 	 	 	1.51	 	
Adjusted Funds from Operations (1), (3)	 	 	76,663	 	 	 	80,821	 	 	 	248,732	 	 	 	248,502	 	
Adjusted Funds from Operations attributable to TCO (1), (3)	 	 	51,383	 	 	 	53,911	 	 	 	166,267	 	 	 	165,499	 	
Adjusted Funds from Operations per common share — basic (1), (3)	 	 	0.96	 	 	 	1.02	 	 	 	3.12	 	 	 	3.13	 	
Adjusted Funds from Operations per common share — diluted (1), (3)	 	 	0.93	 	 	 	1.00	 	 	 	3.06	 	 	 	3.08	 	
Weighted average number of common shares outstanding — basic	 	 	53,616,534	 	 	 	53,017,357	 	 	 	53,239,279	 	 	 	52,866,050	 	
Weighted average number of common shares outstanding — diluted	 	 	55,013,454	 	 	 	53,017,357	 	 	 	53,239,279	 	 	 	52,866,050	 	
Common shares outstanding at end of period	 	 	54,321,586	 	 	 	53,018,987	 	 	 	 	 	 	 	 	 	
Weighted average units — Operating Partnership — basic	 	 	79,996,610	 	 	 	79,481,431	 	 	 	79,656,353	 	 	 	79,394,805	 	
Weighted average units — Operating Partnership — diluted	 	 	82,264,792	 	 	 	80,604,458	 	 	 	81,269,311	 	 	 	80,745,237	 	
Units outstanding at end of period — Operating Partnership	 	 	80,699,271	 	 	 	79,481,431	 	 	 	 	 	 	 	 	 	
Ownership percentage of the Operating Partnership at end of period	 	 	67.3	%	 	 	66.7	%	 	 	 	 	 	 	 	 	
Number of owned shopping centers at end of period	 	 	23	 	 	 	23	 	 	 	23	 	 	 	23	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Statistics (4):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mall tenant sales (5)	 	 	1,350,806	 	 	 	1,316,726	 	 	 	4,227,936	 	 	 	4,536,500	 	
Ending occupancy	 	 	89.6	%	 	 	90.5	%	 	 	89.6	%	 	 	90.5	%	
Average occupancy	 	 	89.5	%	 	 	90.9	%	 	 	89.0	%	 	 	90.5	%	
Leased space at end of period	 	 	91.6	%	 	 	92.0	%	 	 	91.6	%	 	 	92.0	%	
Mall tenant occupancy costs as a percentage of tenant sales — Consolidated Businesses (5)	 	 	14.4	%	 	 	14.8	%	 	 	16.2	%	 	 	15.4	%	
Mall tenant occupancy costs as a percentage of tenant sales — Unconsolidated Joint Ventures (5)	 	 	13.0	%	 	 	13.4	%	 	 	14.9	%	 	 	13.9	%	
Rent per square foot — Consolidated Businesses	 	 	42.56	 	 	 	43.96	 	 	 	43.31	 	 	 	43.95	 	
Rent per square foot — Unconsolidated Joint Ventures	 	 	44.20	 	 	 	44.24	 	 	 	44.49	 	 	 	44.61	 	

 

Taubman Centers/5

(1)	 	FFO for the three month period and the year ended December 31, 2009 includes, and Adjusted FFO excludes, litigation charges related to Westfarms. Also, FFO for the year ended December 31, 2009 includes, and Adjusted FFO excludes, a restructuring charge, which primarily represents the costs of termination of personnel, and impairment charges related to the write down of The Pier Shops and Regency Square to their fair values. FFO for the three month period and year ended December 31, 2008 includes, and Adjusted FFO excludes, impairment charges on its 100% owned Oyster Bay project and Sarasota project, which is accounted for under the equity method. The Company discloses this Adjusted FFO due to the significance of these charges. Given their significance, 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.	
 		
(2)	 	Prior to adoption of the new requirements for noncontrolling interests on January 1, 2009, the net equity of the Operating Partnership noncontrolling unitholders was less than zero. The net equity balances of the noncontrolling partners in certain of the consolidated joint ventures were also less than zero. Therefore, under previous accounting standards for noncontrolling interests, the interests of the noncontrolling unitholders of the Operating Partnership and outside partners with net equity balances in the consolidated joint ventures of less than zero were recognized as zero balances within the Company’s Consolidated Balance Sheet. As a result of the need to present these noncontrolling interests as zero balances, it was previously required that income be allocated to these interests equal, at a minimum, to their share of distributions. The net equity balances of the Operating Partnership and certain of the consolidated joint ventures were less than zero because of accumulated operating distributions in excess of net income and not as a result of operating losses. Operating distributions to partners are usually greater than net income because net income includes non-cash charges for depreciation and amortization.	
 		
 	 	Upon adoption of the new requirements for noncontrolling interests, the interests of the noncontrolling unitholders of the Operating Partnership and the outside partners with net equity balances in the consolidated joint ventures of less than zero generally no longer need to be carried at zero balances in the Company’s Consolidated Balance Sheet and this previous income allocation methodology described above is generally no longer applicable. However, as the new measurement provisions are applicable beginning with the January 1, 2009 adoption date, the interests of these noncontrolling interests for prior periods have not been remeasured. Net loss attributable to Taubman Centers, Inc. common shareowners for the three month period and year ended December 31, 2009 would have been $(6.6) million and $(153.5) million, respectively or $(0.12) and $(2.88) per common share, respectively if accounted for under the previous method of accounting for noncontrolling interests prior to the new accounting requirements. Certain 2008 amounts have been reclassified to conform with 2009 classifications.	
 		
(3)	 	Beneficial Interest in EBITDA represents the Operating Partnership’s share of the earnings before interest, income taxes, and depreciation and amortization of its consolidated and unconsolidated businesses. The Company believes Beneficial Interest in EBITDA provides a useful indicator of operating performance, as it is customary in the real estate and shopping center business to evaluate the performance of properties on a basis unaffected by capital structure.	
 		
 	 	The National Association of Real Estate Investment Trusts (NAREIT) defines Funds from Operations (FFO) as net income (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains from extraordinary items and sales of properties, plus real estate related depreciation and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO is a useful supplemental measure of operating performance for REITs. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, the Company and most industry investors and analysts have considered presentations of operating results that exclude historical cost depreciation to be useful in evaluating the operating performance of REITs. FFO is primarily used by the Company in measuring performance and in formulating corporate goals and compensation.	
 		
 	 	These non-GAAP measures as presented by the Company are not necessarily comparable to similarly titled measures used by other REITs due to the fact that not all REITs use common definitions. None of these non-GAAP measures should be considered alternatives to net income as an indicator of the Company’s operating performance, and they do not represent cash flows from operating, investing, or financing activities as defined by GAAP.	
 		
(4)	 	Statistics exclude The Pier Shops.	
 		
(5)	 	Based on reports of sales furnished by mall tenants.	

 

Taubman Centers/6
TAUBMAN CENTERS, INC.
Table 2 — Income Statement
For the Three Months Ended December 31, 2009 and 2008
(in thousands of dollars)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	2009	 	2008	
 	 	 	 	 	 	UNCONSOLIDATED	 	 	 	 	 	UNCONSOLIDATED	
 	 	CONSOLIDATED	 	JOINT	 	CONSOLIDATED	 	JOINT	
 	 	BUSINESSES	 	VENTURES (1)	 	BUSINESSES	 	VENTURES (1)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Minimum rents	 	 	87,059	 	 	 	40,505	 	 	 	91,646	 	 	 	40,675	 	
Percentage rents	 	 	5,476	 	 	 	2,862	 	 	 	6,602	 	 	 	3,017	 	
Expense recoveries	 	 	74,374	 	 	 	29,632	 	 	 	69,869	 	 	 	29,418	 	
Management, leasing, and development services	 	 	10,990	 	 	 	 	 	 	 	5,010	 	 	 	 	 	
Other	 	 	8,376	 	 	 	2,506	 	 	 	16,829	 	 	 	4,078	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	186,275	 	 	 	75,505	 	 	 	189,956	 	 	 	77,188	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maintenance, taxes, and utilities	 	 	51,288	 	 	 	18,959	 	 	 	50,396	 	 	 	18,132	 	
Other operating	 	 	19,359	 	 	 	6,156	 	 	 	23,117	 	 	 	6,468	 	
Restructuring charge	 	 	(118	)	 	 	 	 	 	 	 	 	 	 	 	 	
Management, leasing, and development services	 	 	1,886	 	 	 	 	 	 	 	2,189	 	 	 	 	 	
General and administrative	 	 	6,968	 	 	 	 	 	 	 	5,044	 	 	 	 	 	
Litigation charges (2)	 	 	 	 	 	 	38,500	 	 	 	 	 	 	 	 	 	
Impairment charges (3)	 	 	 	 	 	 	 	 	 	 	117,943	 	 	 	 	 	
Interest expense	 	 	36,557	 	 	 	16,118	 	 	 	38,404	 	 	 	16,380	 	
Depreciation and amortization	 	 	37,239	 	 	 	10,435	 	 	 	40,463	 	 	 	11,327	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total expenses	 	 	153,179	 	 	 	90,168	 	 	 	277,556	 	 	 	52,307	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on land sales and other nonoperating income	 	 	31	 	 	 	(1	)	 	 	899	 	 	 	89	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	33,127	 	 	 	(14,664	)	 	 	(86,701	)	 	 	24,970	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income tax expense	 	 	(1,400	)	 	 	 	 	 	 	(459	)	 	 	 	 	
Equity in income (loss) of Unconsolidated Joint Ventures (4)	 	 	(17,492	)	 	 	 	 	 	 	14,665	 	 	 	 	 	
Impairment charge on Sarasota joint venture (3)	 	 	 	 	 	 	 	 	 	 	(8,323	)	 	 	 	 	

Net income (loss)	 	 	14,235	 	 	 	 	 	 	 	(80,818	)	 	 	 	 	
Net (income) loss attributable to noncontrolling interests:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling share of income of consolidated joint ventures	 	 	(2,845	)	 	 	 	 	 	 	(3,719	)	 	 	 	 	
Distributions in excess of noncontrolling share of income of consolidated joint ventures	 	 	 	 	 	 	 	 	 	 	(621	)	 	 	 	 	
TRG series F preferred distributions	 	 	(615	)	 	 	 	 	 	 	(615	)	 	 	 	 	
Noncontrolling share of (income) loss of TRG	 	 	(2,794	)	 	 	 	 	 	 	29,204	 	 	 	 	 	
Distributions in excess of noncontrolling share of loss of TRG	 	 	 	 	 	 	 	 	 	 	(40,187	)	 	 	 	 	
Distributions to participating securities of TRG	 	 	(362	)	 	 	 	 	 	 	(361	)	 	 	 	 	
Preferred stock dividends	 	 	(3,659	)	 	 	 	 	 	 	(3,659	)	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to Taubman Centers, Inc. common shareowners	 	 	3,960	 	 	 	 	 	 	 	(100,776	)	 	 	 	 	

SUPPLEMENTAL INFORMATION:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA — 100% (2) (3)	 	 	106,923	 	 	 	11,889	 	 	 	(16,157	)	 	 	52,677	 	
EBITDA — outside partners’ share	 	 	(11,063	)	 	 	(14,971	)	 	 	(11,203	)	 	 	(22,982	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beneficial interest in EBITDA (2) (3)	 	 	95,860	 	 	 	(3,082	)	 	 	(27,360	)	 	 	29,695	 	
Beneficial interest expense	 	 	(31,505	)	 	 	(8,358	)	 	 	(33,462	)	 	 	(8,488	)	
Beneficial income tax expense	 	 	(1,400	)	 	 	 	 	 	 	(459	)	 	 	 	 	
Non-real estate depreciation	 	 	(852	)	 	 	 	 	 	 	(1,097	)	 	 	 	 	
Preferred dividends and distributions	 	 	(4,274	)	 	 	 	 	 	 	(4,274	)	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fund from Operations contribution (2) (3)	 	 	57,829	 	 	 	(11,440	)	 	 	(66,652	)	 	 	21,207	 	

Net straightline adjustments to rental revenue, recoveries, and ground rent expense at TRG %	 	 	(410	)	 	 	(53	)	 	 	213	 	 	 	(32	)	

			
(1)	 	With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company’s ownership interest. The Company accounts for its investments in the Unconsolidated Joint Ventures under the equity method.	
 		
(2)	 	In the fourth quarter of 2009, the Company recognized litigation charges related to Westfarms. TRG’s share of the charges was $30.4 million.	
 		
(3)	 	In the fourth quarter of 2008, the Company recognized impairment charges on its 100% owned Oyster Bay project and Sarasota project, which is accounted for under the equity method.	
 		
(4)	 	Excludes impairment charge for Sarasota project, which is separately presented.	

 

Taubman Centers/7
TAUBMAN CENTERS, INC.
Table 3 — Income Statement
For the Years Ended December 31, 2009 and 2008
(in thousands of dollars)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	2009	 	2008	
 	 	 	 	 	 	UNCONSOLIDATED	 	 	 	 	 	UNCONSOLIDATED	
 	 	CONSOLIDATED	 	JOINT	 	CONSOLIDATED	 	JOINT	
 	 	BUSINESSES	 	VENTURES (1)	 	BUSINESSES	 	VENTURES (1)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Minimum rents	 	 	341,914	 	 	 	157,099	 	 	 	353,200	 	 	 	157,070	 	
Percentage rents	 	 	10,818	 	 	 	5,039	 	 	 	13,764	 	 	 	6,617	 	
Expense recoveries	 	 	246,377	 	 	 	101,692	 	 	 	248,555	 	 	 	98,507	 	
Management, leasing, and development services	 	 	21,179	 	 	 	 	 	 	 	15,911	 	 	 	 	 	
Other	 	 	45,816	 	 	 	8,705	 	 	 	40,068	 	 	 	9,619	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenues	 	 	666,104	 	 	 	272,535	 	 	 	671,498	 	 	 	271,813	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maintenance, taxes, and utilities	 	 	189,061	 	 	 	68,094	 	 	 	189,162	 	 	 	66,761	 	
Other operating	 	 	67,182	 	 	 	24,024	 	 	 	79,595	 	 	 	22,494	 	
Restructuring charge (2)	 	 	2,512	 	 	 	 	 	 	 	 	 	 	 	 	 	
Management, leasing, and development services	 	 	7,862	 	 	 	 	 	 	 	8,710	 	 	 	 	 	
General and administrative	 	 	27,858	 	 	 	 	 	 	 	28,110	 	 	 	 	 	
Litigation charges (3)	 	 	 	 	 	 	38,500	 	 	 	 	 	 	 	 	 	
Impairment charges (4)	 	 	166,680	 	 	 	 	 	 	 	117,943	 	 	 	 	 	
Interest expense	 	 	145,670	 	 	 	64,407	 	 	 	147,397	 	 	 	65,004	 	
Depreciation and amortization	 	 	147,316	 	 	 	39,274	 	 	 	147,441	 	 	 	40,712	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total expenses	 	 	754,141	 	 	 	234,299	 	 	 	718,358	 	 	 	194,971	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on land sales and other nonoperating income	 	 	711	 	 	 	87	 	 	 	4,569	 	 	 	683	 	
Impairment loss on marketable securities	 	 	(1,666	)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	(88,992	)	 	 	38,323	 	 	 	(42,291	)	 	 	77,525	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income tax expense	 	 	(1,657	)	 	 	 	 	 	 	(1,117	)	 	 	 	 	
Equity in income of Unconsolidated Joint Ventures (5)	 	 	11,488	 	 	 	 	 	 	 	43,679	 	 	 	 	 	
Impairment charge on Sarasota joint venture (4)	 	 	 	 	 	 	 	 	 	 	(8,323	)	 	 	 	 	

Net loss	 	 	(79,161	)	 	 	 	 	 	 	(8,052	)	 	 	 	 	
Net (income) loss attributable to noncontrolling interests:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling share of income of consolidated joint ventures	 	 	(3,115	)	 	 	 	 	 	 	(7,441	)	 	 	 	 	
Distributions in excess of noncontrolling share of income of consolidated joint ventures	 	 	 	 	 	 	 	 	 	 	(8,594	)	 	 	 	 	
TRG series F preferred distributions	 	 	(2,460	)	 	 	 	 	 	 	(2,460	)	 	 	 	 	
Noncontrolling share of loss of TRG	 	 	31,224	 	 	 	 	 	 	 	11,338	 	 	 	 	 	
Distributions in excess of noncontrolling share of loss of TRG	 	 	 	 	 	 	 	 	 	 	(55,370	)	 	 	 	 	
Distributions to participating securities of TRG	 	 	(1,560	)	 	 	 	 	 	 	(1,446	)	 	 	 	 	
Preferred stock dividends	 	 	(14,634	)	 	 	 	 	 	 	(14,634	)	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net loss attributable to Taubman Centers, Inc. common shareowners	 	 	(69,706	)	 	 	 	 	 	 	(86,659	)	 	 	 	 	

SUPPLEMENTAL INFORMATION:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA — 100% (2) (3)	 	 	203,994	 	 	 	142,004	 	 	 	244,224	 	 	 	183,241	 	
EBITDA — outside partners’ share	 	 	(35,343	)	 	 	(74,189	)	 	 	(40,034	)	 	 	(82,152	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beneficial interest in EBITDA (2) (3)	 	 	168,651	 	 	 	67,815	 	 	 	204,190	 	 	 	101,089	 	
Beneficial interest expense	 	 	(125,823	)	 	 	(33,427	)	 	 	(127,769	)	 	 	(33,777	)	
Beneficial income tax expense	 	 	(1,657	)	 	 	 	 	 	 	(1,117	)	 	 	 	 	
Non-real estate depreciation	 	 	(3,439	)	 	 	 	 	 	 	(3,286	)	 	 	 	 	
Preferred dividends and distributions	 	 	(17,094	)	 	 	 	 	 	 	(17,094	)	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations contribution (2) (3)	 	 	20,638	 	 	 	34,388	 	 	 	54,924	 	 	 	67,312	 	

Net straightline adjustments to rental revenue, recoveries, and ground rent expense at TRG %	 	 	83	 	 	 	263	 	 	 	1,532	 	 	 	243	 	

			
(1)	 	With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company’s ownership interest. In its consolidated financial statements, the Company accounts for its investments in the Unconsolidated Joint Ventures under the equity method.	
 		
(2)	 	In 2009, the Company recognized a restructuring charge, which primarily represents the costs of termination of personnel.	
 		
(3)	 	In the fourth quarter of 2009, the Company recognized litigation charges related to Westfarms. TRG’s share of the charges was $30.4 million.	
 		
(4)	 	In the third quarter of 2009, the Company wrote down the book values of The Pier Shops and Regency Square to their fair values. The impairment charges were $160.8 million at TRG’s share. In the fourth quarter of 2008, the Company recognized impairment charges on its 100% owned Oyster Bay project and Sarasota project, which is accounted for under the equity method.	
 		
(5)	 	Excludes impairment charge for Sarasota project, which is separately presented.	

 

Taubman Centers/8
TAUBMAN CENTERS, INC.
Table 4 — Reconciliation of Net Income (Loss) Attributable to Taubman Centers, Inc. Common Shareowners to Funds from Operations and Adjusted Funds from Operations
For the Periods Ended December 31, 2009 and 2008
(in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Year Ended	
 	 	2009	 	2008	 	2009	 	2008	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to TCO common shareowners	 	 	3,960	 	 	 	(100,776	)	 	 	(69,706	)	 	 	(86,659	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated businesses at 100%	 	 	37,239	 	 	 	40,463	 	 	 	147,316	 	 	 	147,441	 	
Noncontrolling partners in consolidated joint ventures	 	 	(3,166	)	 	 	(2,542	)	 	 	(12,381	)	 	 	(12,965	)	
Share of Unconsolidated Joint Ventures	 	 	6,052	 	 	 	6,542	 	 	 	22,900	 	 	 	23,633	 	
Non-real estate depreciation	 	 	(852	)	 	 	(1,097	)	 	 	(3,439	)	 	 	(3,286	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add noncontrolling interests:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling share of income (loss) of TRG	 	 	2,794	 	 	 	(29,204	)	 	 	(31,224	)	 	 	(11,338	)	
Distributions in excess of noncontrolling share of loss of TRG	 	 	 	 	 	 	40,187	 	 	 	 	 	 	 	55,370	 	
Distributions in excess of noncontrolling share of income of consolidated joint ventures	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	621	 	 	 	 	 	 	 	8,594	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add distributions to participating securities of TRG	 	 	362	 	 	 	361	 	 	 	1,560	 	 	 	1,446	 	

Funds from Operations (1)	 	 	46,389	 	 	 	(45,445	)	 	 	55,026	 	 	 	122,236	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO’s average ownership percentage of TRG	 	 	67.0	%	 	 	66.7	%	 	 	66.8	%	 	 	66.6	%	

Funds from Operations attributable to TCO (1)	 	 	31,092	 	 	 	(30,314	)	 	 	36,799	 	 	 	81,274	 	

Funds from Operations	 	 	46,389	 	 	 	(45,445	)	 	 	55,026	 	 	 	122,236	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TRG’s share of impairment charges (1)	 	 	 	 	 	 	126,266	 	 	 	160,802	 	 	 	126,266	 	
TRG’s share of litigation charges (1)	 	 	30,392	 	 	 	 	 	 	 	30,392	 	 	 	 	 	
Restructuring charge (1)	 	 	(118	)	 	 	 	 	 	 	2,512	 	 	 	 	 	

Adjusted Funds from Operations (1)	 	 	76,663	 	 	 	80,821	 	 	 	248,732	 	 	 	248,502	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO’s average ownership percentage of TRG	 	 	67.0	%	 	 	66.7	%	 	 	66.8	%	 	 	66.6	%	

Adjusted Funds from Operations attributable to TCO (1)	 	 	51,383	 	 	 	53,911	 	 	 	166,267	 	 	 	165,499	 	

			
(1)	 	FFO for the three month period and the year ended December 31, 2009 includes, and Adjusted FFO excludes, litigation charges related to Westfarms. Also, FFO for the year ended December 31, 2009 includes, and Adjusted FFO excludes, a restructuring charge, which primarily represents the costs of termination of personnel, and impairment charges related to the write down of The Pier Shops and Regency Square to their fair values. FFO for the three month period and year ended December 31, 2008 includes, and Adjusted FFO excludes, impairment charges on its 100% owned Oyster Bay project and Sarasota project, which is accounted for under the equity method. The Company discloses this Adjusted FFO due to the significance of these charges. Given their significance, 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/9
TAUBMAN CENTERS, INC.
Table 5 — Reconciliation of Net Income (Loss) to Beneficial Interest in EBITDA
For the Periods Ended December 31, 2009 and 2008
(in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	Year Ended	
 	 	2009	 	2008	 	2009	 	2008	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	 	14,235	 	 	 	(80,818	)	 	 	(79,161	)	 	 	(8,052	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated businesses at 100%	 	 	37,239	 	 	 	40,463	 	 	 	147,316	 	 	 	147,441	 	
Noncontrolling partners in consolidated joint ventures	 	 	(3,166	)	 	 	(2,542	)	 	 	(12,381	)	 	 	(12,965	)	
Share of Unconsolidated Joint Ventures	 	 	6,052	 	 	 	6,542	 	 	 	22,900	 	 	 	23,633	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) interest expense and income tax expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated businesses at 100%	 	 	36,557	 	 	 	38,404	 	 	 	145,670	 	 	 	147,397	 	
Noncontrolling partners in consolidated joint ventures	 	 	(5,052	)	 	 	(4,942	)	 	 	(19,847	)	 	 	(19,628	)	
Share of Unconsolidated Joint Ventures	 	 	8,358	 	 	 	8,488	 	 	 	33,427	 	 	 	33,777	 	
Income tax expense	 	 	1,400	 	 	 	459	 	 	 	1,657	 	 	 	1,117	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less noncontrolling share of income of consolidated joint ventures	 	 	(2,845	)	 	 	(3,719	)	 	 	(3,115	)	 	 	(7,441	)	

Beneficial Interest in EBITDA	 	 	92,778	 	 	 	2,335	 	 	 	236,466	 	 	 	305,279	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO’s average ownership percentage of TRG	 	 	67.0	%	 	 	66.7	%	 	 	66.8	%	 	 	66.6	%	

Beneficial Interest in EBITDA attributable to TCO	 	 	62,183	 	 	 	1,557	 	 	 	158,063	 	 	 	203,164	 	

 
Taubman Centers/10
TAUBMAN CENTERS, INC.
Table 6 — Balance Sheets
As of December 31, 2009 and December 31, 2008
(in thousands of dollars)
 	 	 	 	 	 	 	 	 	
 	 	As of	
 	 	December 31, 2009	 	December 31, 2008	
Consolidated Balance Sheet of Taubman Centers, Inc.:	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	 	 	
Properties	 	 	3,496,853	 	 	 	3,699,480	 	
Accumulated depreciation and amortization	 	 	(1,100,610	)	 	 	(1,049,626	)	
 	 	 	 	 	 	 	 	 	
 	 	 	2,396,243	 	 	 	2,649,854	 	
Investment in Unconsolidated Joint Ventures	 	 	89,804	 	 	 	89,933	 	
Cash and cash equivalents	 	 	19,640	 	 	 	62,126	 	
Accounts and notes receivable, net	 	 	44,503	 	 	 	46,732	 	
Accounts receivable from related parties	 	 	1,558	 	 	 	1,850	 	
Deferred charges and other assets	 	 	55,105	 	 	 	124,487	 	
 	 	 	 	 	 	 	 	 	
 	 	 	2,606,853	 	 	 	2,974,982	 	

Liabilities:	 	 	 	 	 	 	 	 	
Notes payable	 	 	2,691,019	 	 	 	2,796,821	 	
Accounts payable and accrued liabilities	 	 	230,276	 	 	 	262,226	 	
Dividends payable	 	 	 	 	 	 	22,002	 	
Distributions in excess of investments in and net income of Unconsolidated Joint Ventures	 	 	160,305	 	 	 	154,141	 	
 	 	 	 	 	 	 	 	 	
 	 	 	3,081,600	 	 	 	3,235,190	 	
 	 	 	 	 	 	 	 	 	
Equity:	 	 	 	 	 	 	 	 	
Taubman Centers, Inc. Shareowners’ Equity:	 	 	 	 	 	 	 	 	
Series B Non-Participating Convertible Preferred Stock	 	 	26	 	 	 	26	 	
Series G Cumulative Redeemable Preferred Stock	 	 	 	 	 	 	 	 	
Series H Cumulative Redeemable Preferred Stock	 	 	 	 	 	 	 	 	
Common Stock	 	 	543	 	 	 	530	 	
Additional paid-in capital	 	 	579,983	 	 	 	556,145	 	
Accumulated other comprehensive income (loss)	 	 	(24,443	)	 	 	(29,778	)	
Dividends in excess of net income	 	 	(884,666	)	 	 	(726,097	)	
 	 	 	 	 	 	 	 	 	
 	 	 	(328,557	)	 	 	(199,174	)	
Noncontrolling interests:	 	 	 	 	 	 	 	 	
Noncontrolling interests in consolidated joint ventures	 	 	(100,014	)	 	 	(90,251	)	
Noncontrolling interests in partnership equity of TRG	 	 	(75,393	)	 	 	 	 	
Preferred Equity of TRG	 	 	29,217	 	 	 	29,217	 	
 	 	 	 	 	 	 	 	 	
 	 	 	(146,190	)	 	 	(61,034	)	
 	 	 	 	 	 	 	 	 	
 	 	 	(474,747	)	 	 	(260,208	)	
 	 	 	 	 	 	 	 	 	
 	 	 	2,606,853	 	 	 	2,974,982	 	

Combined Balance Sheet of Unconsolidated Joint Ventures:	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	 	 	
Properties	 	 	1,094,963	 	 	 	1,087,341	 	
Accumulated depreciation and amortization	 	 	(396,518	)	 	 	(366,168	)	
 	 	 	 	 	 	 	 	 	
 	 	 	698,445	 	 	 	721,173	 	
Cash and cash equivalents	 	 	23,117	 	 	 	28,946	 	
Accounts and notes receivable	 	 	26,982	 	 	 	26,603	 	
Deferred charges and other assets	 	 	17,737	 	 	 	20,098	 	
 	 	 	 	 	 	 	 	 	
 	 	 	766,281	 	 	 	796,820	 	

Liabilities:	 	 	 	 	 	 	 	 	
Notes payable	 	 	1,092,806	 	 	 	1,103,903	 	
Accounts payable and other liabilities, net	 	 	50,615	 	 	 	61,570	 	
 	 	 	 	 	 	 	 	 	
 	 	 	1,143,421	 	 	 	1,165,473	 	
 	 	 	 	 	 	 	 	 	
Accumulated Deficiency in Assets:	 	 	 	 	 	 	 	 	
Accumulated deficiency in assets — TRG	 	 	(200,169	)	 	 	(194,178	)	
Accumulated deficiency in assets — Joint Venture Partners	 	 	(166,866	)	 	 	(160,862	)	
Accumulated other comprehensive income (loss) — TRG	 	 	(5,397	)	 	 	(7,288	)	
Accumulated other comprehensive income (loss) — Joint Venture Partners	 	 	(4,708	)	 	 	(6,325	)	
 	 	 	 	 	 	 	 	 	
 	 	 	(377,140	)	 	 	(368,653	)	
 	 	 	 	 	 	 	 	 	
 	 	 	766,281	 	 	 	796,820	 	

 

Taubman Centers/11
TAUBMAN CENTERS, INC.
Table 7 — Annual Outlook
(all dollar amounts per common share on a diluted basis; amounts may not add due to rounding)
 	 	 	 	 	 	 	 	 	
 	 	Range for Year Ended	
 	 	December 31, 2010	
 	 	(Excluding The Pier Shops)	
Funds from Operations per common share (1)	 	 	2.55	 	 	 	2.75	 	
Real estate depreciation — TRG	 	 	(1.77	)	 	 	(1.72	)	
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)	 	 	0.64	 	 	 	0.89	 	

			
(1)	 	Guidance on Funds from Operations and EPS excludes The Pier Shops’ operations due to the uncertainty regarding the timing of transfer of title. The loan on the center is in default and accrues interest at 10.01%. The Company expects a non-cash incremental impact on FFO per share of ($0.010) 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 ($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 also been excluded from EPS and FFO per share estimates.