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 10, 2011	
 	
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 10, 2011, the Company issued a press release announcing its results of operations for the year ended December 31, 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 February 10, 2011, entitled “Taubman Centers Issues 2010 Results and Introduces 2011 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 10, 2011	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 10, 2011, entitled “Taubman Centers Issues 2010 Results and Introduces 2011 Guidance.”	

 

                                                                               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 ISSUES 2010 RESULTS AND INTRODUCES 2011 GUIDANCE
·  	Record Mall Tenant Sales of $564 Per Square Foot, Up 12.4%	
·  	Leased Space, Ending Occupancy, Opening Rents Up	
·  	Net Income, FFO and NOI Up for the Year	
·  	Company Partners with Experienced Team on Outlet Initiative	

BLOOMFIELD HILLS, Mich., Feb. 10, 2011 - - Taubman Centers, Inc. (NYSE:  TCO) today reported financial results for the quarter and full year periods ended December 31, 2010.

Net income (loss) allocable to common shareholders per diluted common share (EPS) for the quarter ended December 31, 2010 was $0.60, up from $0.07 for the quarter ended December 31, 2009.  EPS for the year ended December 31, 2010 was $0.86 up from a $(1.31) loss for the year ended December 31, 2009.

For the quarter ended December 31, 2010, Funds from Operations (FFO) per diluted share was $1.06, up 14.0 percent from $0.93 Adjusted FFO per diluted share for the quarter ended December 31, 2009.  There were no adjustments in 2010.  Adjusted FFO in 2009 excludes the impact of $0.37 per diluted share of litigation charges.  FFO was $0.56 per diluted share for the quarter ended December 31, 2009.

For the year ended December 31, 2010, FFO per diluted share was $2.86 versus Adjusted FFO per diluted share of $3.06 for the year ended December 31, 2009.  Adjusted FFO for the year ended December 31, 2009 excludes the impact of $2.38 per diluted share of litigation, restructuring and impairment charges.  FFO was $0.68 per diluted share for the year ended December 31, 2009.

“These results are very positive,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers.  “We have actively managed our portfolio through a very difficult environment, and our NOI has begun to grow again.  The regional mall model – especially given the quality of our assets – gives us great confidence in our future.”

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Core Strength

Mall tenant sales per square foot at Taubman properties was up 12.9 percent during the quarter and 12.4 percent for the year ended December 31, 2010.  The resulting sales per square foot of $564 for 2010 is a record for the company and for the publicly held U.S. regional mall industry.  Sales per square foot increased at all centers with the company’s Florida and Michigan properties leading the way.  Sales per square foot increases were strong across many categories including sporting goods, women’s specialty, food specialty, family and women’s shoes, home furnishings and unisex apparel categories, which were all up double digit percentages. In addition, electronics had an exceptionally strong year.

“We’re delighted with these strong tenant sales results.  We had double digit increases every quarter of 2010,” said Mr. Taubman.

Leased space at December 31, 2010 was 92.0 percent, up 0.4 percent from December 31, 2009.  Ending occupancy at December 31, 2010 was 90.1 percent, up 0.3 percent from December 31, 2009.  Opening rents per square foot for the year were $49.69, up 3.9 percent from opening rents per square foot in 2009.

Net Operating Income (NOI) excluding lease termination income grew 4.8 percent for the quarter and 0.5 percent for the year ended December 31, 2010.  The quarter’s strong NOI results were driven by minimum rents, percentage rent, sponsorship income, specialty leasing income and center-related operating expense reductions.

External Growth

The company has a multi-pronged strategy for external growth encompassing a diversity of markets and product types to create long-term value for shareholders.  Progress in 2010 includes the following:

·  	Outlet Center Development	
The company is announcing today it has been working with a company headed by Bruce Zalaznick, a former executive vice president of Prime Outlets and Chelsea Property Group.  He has a 20-year proven track record of successful outlet development.  Taubman has formed a joint venture with his company - to seek development sites for outlet-style shopping centers.  Taubman will hold a 90 percent ownership interest in the joint venture for any projects that move forward.

·  	Asia Development	
In October, the company appointed seasoned real estate executive, René Tremblay as president, Taubman Asia.  Mr. Tremblay is leading the company’s expansion initiatives in China and South Korea.  During 2010, Taubman Asia was selected to lease and manage IFC Mall in Yeouido, Seoul, South Korea.

·  	Traditional Center Development	
The company is on track for the March 22, 2012 opening of City Creek Center (Salt Lake City, Utah). Part of one of the nation’s largest mixed use, downtown redevelopment projects, the center will feature Nordstrom, Macy’s and a full complement of unique point-of-difference stores and restaurants.

(more)

 

 
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Dividend and Stock Performance

In December 2010, in recognition of improved market conditions, the company increased its regular quarterly dividend by 5.4 percent.  Since its public offering in 1992 Taubman Centers’ dividend has been increased 13 times, achieving a 3.9 percent compounded annual growth rate.  The company has never decreased its dividend or paid a dividend in stock.

During 2010, the company enjoyed a 46.8 percent total shareholder return.  This compares to the MSCI US REIT Index of 28.5 percent, the FTSE NAREIT Equity Retail Index of 33.4 percent and the S&P 500 Index of 15.1 percent.  Over the 10 years ending December 31, 2010, the company’s compounded annual shareholder return has been 22.2 percent.  This compares to the MSCI US REIT Index of 10.6 percent, the FTSE NAREIT Equity Retail Index of 13.2 percent and the S&P 500 Index of 1.4 percent.

2011 Guidance

The company is introducing guidance for 2011.  The company expects FFO per diluted share excluding The Pier Shops (Atlantic City, N.J.) and Regency Square (Richmond, Va.) to be in the range of $2.86 to $2.98 in 2011.  EPS excluding The Pier Shops and Regency Square for the year is expected to be in the range of $1.09 to $1.23.

The company is working with the respective special servicers to transfer title to The Pier Shops and Regency Square as soon as possible; however, the holding periods for both properties remain uncertain and could be extended periods.  The noncash impact of owning these centers (including anticipated default interest) is expected to result in an incremental FFO charge of approximately $(0.20) per diluted share for The Pier Shops and $(0.04) per diluted share for Regency Square in 2011.  Including the impact of depreciation and amortization, the impact on EPS for the two centers is expected to be a charge of $(0.34).  Significant noncash accounting gains will be recognized when the respective loan obligations are extinguished upon transfer of title to the properties.  These gains have been excluded from EPS and FFO per diluted share estimates.  Assuming holding periods through the end of 2011 for both properties, the company estimates 2011 FFO per diluted share to be in the range of $2.62 to $2.74 and EPS to be in the range of $0.75 to $0.89.

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 Statements	
·  	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	

(more)

 

 
 
Taubman Centers/4
·  	Construction	
·  	Capital Spending	
·  	Operational Statistics	
·  	Owned Centers	
·  	Major Tenants in Owned Portfolio	
·  	Anchors in Owned Portfolio	
·  	Operating Statistics Glossary	

Investor Conference Call

The company will host a conference call at 11:00 AM Eastern Standard Time on Friday, February 11 to discuss these results, business conditions and the company’s outlook for 2011. 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 celebrated 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/5

TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	 	 	 	 	
Table 1 - Summary of Results	 	 	 	 	 	 	 	 	 	 	 	
For the Periods Ended December 31, 2010 and 2009	 	 	 	 	 	 	 	 	 	 	 	
(in thousands of dollars, except as indicated)	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	 	Year Ended	 	
 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) (1)	 	58,572	 	 	 	14,235	 	 	 	102,327	 	 	 	(79,161	)	
Noncontrolling share of income of consolidated joint ventures	 	(3,879	)	 	 	(2,845	)	 	 	(9,780	)	 	 	(3,115	)	
Noncontrolling share of (income) loss of TRG	 	(16,737	)	 	 	(2,794	)	 	 	(26,219	)	 	 	31,224	 	
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	 	(541	)	 	 	(362	)	 	 	(1,635	)	 	 	(1,560	)	
Net income (loss) attributable to Taubman Centers, Inc. common shareowners	 	33,141	 	 	 	3,960	 	 	 	47,599	 	 	 	(69,706	)	
Net income (loss) per common share - basic	 	0.61	 	 	 	0.07	 	 	 	0.87	 	 	 	(1.31	)	
Net income (loss) per common share - diluted	 	0.60	 	 	 	0.07	 	 	 	0.86	 	 	 	(1.31	)	
Beneficial interest in EBITDA - Consolidated Businesses (1) , (2)	 	105,154	 	 	 	95,860	 	 	 	322,703	 	 	 	168,651	 	
Beneficial interest in EBITDA - Unconsolidated Joint Ventures (2)	 	30,127	 	 	 	(3,082	)	 	 	100,682	 	 	 	67,815	 	
Funds from Operations (1),(2)	 	88,246	 	 	 	46,389	 	 	 	237,275	 	 	 	55,026	 	
Funds from Operations attributable to TCO (1),(2)	 	59,624	 	 	 	31,092	 	 	 	160,138	 	 	 	36,799	 	
Funds from Operations per common share - basic (1),(2)	 	1.09	 	 	 	0.58	 	 	 	2.93	 	 	 	0.69	 	
Funds from Operations per common share - diluted (1),(2)	 	1.06	 	 	 	0.56	 	 	 	2.86	 	 	 	0.68	 	
Adjusted Funds from Operations (1),(2)	 	88,246	 	 	 	76,663	 	 	 	237,275	 	 	 	248,732	 	
Adjusted Funds from Operations attributable to TCO (1),(2)	 	59,624	 	 	 	51,383	 	 	 	160,138	 	 	 	166,267	 	
Adjusted Funds from Operations per common share - basic (1),(2)	 	1.09	 	 	 	0.96	 	 	 	2.93	 	 	 	3.12	 	
Adjusted Funds from Operations per common share - diluted (1),(2)	 	1.06	 	 	 	0.93	 	 	 	2.86	 	 	 	3.06	 	
Weighted average number of common shares outstanding - basic	 	54,685,686	 	 	 	53,616,534	 	 	 	54,569,618	 	 	 	53,239,279	 	
Weighted average number of common shares outstanding - diluted	 	56,008,080	 	 	 	55,013,454	 	 	 	55,702,813	 	 	 	53,239,279	 	
Common shares outstanding at end of period	 	54,696,054	 	 	 	54,321,586	 	 	 	 	 	 	 	 	 	
Weighted average units - Operating Partnership - basic	 	80,937,262	 	 	 	79,996,610	 	 	 	80,870,969	 	 	 	79,656,353	 	
Weighted average units - Operating Partnership - diluted	 	83,130,919	 	 	 	82,264,792	 	 	 	82,875,424	 	 	 	81,269,311	 	
Units outstanding at end of period - Operating Partnership	 	80,947,630	 	 	 	80,699,271	 	 	 	 	 	 	 	 	 	
Ownership percentage of the Operating Partnership at end of period	 	67.6	%	 	 	67.3	%	 	 	 	 	 	 	 	 	
Number of owned shopping centers at end of period	 	23	 	 	 	23	 	 	 	23	 	 	 	23	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Statistics (3) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mall tenant sales (4)	 	1,487,634	 	 	 	1,337,449	 	 	 	4,619,896	 	 	 	4,185,996	 	
Ending occupancy	 	90.1	%	 	 	89.8	%	 	 	90.1	%	 	 	89.8	%	
Average occupancy	 	89.9	%	 	 	89.8	%	 	 	88.8	%	 	 	89.4	%	
Leased space at end of period	 	92.0	%	 	 	91.6	%	 	 	92.0	%	 	 	91.6	%	
Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (4)	 	13.1	%	 	 	14.4	%	 	 	14.5	%	 	 	16.2	%	
Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (4)	 	11.8	%	 	 	13.1	%	 	 	13.5	%	 	 	14.9	%	
Mall tenant occupancy costs as a percentage of tenant sales - Combined (4)	 	12.7	%	 	 	13.9	%	 	 	14.1	%	 	 	15.8	%	
Average rent per square foot - Consolidated Businesses	 	43.64	 	 	 	42.92	 	 	 	43.63	 	 	 	43.69	 	
Average rent per square foot - Unconsolidated Joint Ventures	 	43.76	 	 	 	44.20	 	 	 	43.73	 	 	 	44.49	 	
Average rent per square foot - Combined	 	43.68	 	 	 	43.36	 	 	 	43.66	 	 	 	43.95	 	

 

 
Taubman Centers/6

(1)	The three month period and the year ended December 31, 2009 include litigation charges related to Westfarms. Also, the year ended December 31, 2009 includes 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. No similar charges were incurred in the three month period and year ended December 31, 2010.
 	
(2)	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 month period and the year ended December 31, 2009, FFO was adjusted for litigation charges. Also, FFO for the year ended December 31, 2009 was adjusted for restructuring and impairment charges. In Tables 4, 5, and 9 of this Press Release, the Company has separately presented the impacts of The Pier Shops and Regency Square, as the timing of transfer of ownership of these centers is uncertain.
 	
 	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.	
 	 	 	 	
(3)	Statistics exclude The Pier Shops and Regency Square.	 	
 	 	 	 	
(4)	Based on reports of sales furnished by mall tenants.	 	

 

 
 
Taubman Centers/7
 
 TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	 	
 Table 2 - Income Statement	 	 	 	 	 	 	 	 	
 For the Three Months Ended December 31, 2010 and 2009	 	 	 	 	 	 	 	 	
 (in thousands of dollars)	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
 	 	2010	 	2009	 	
 	 	CONSOLIDATED BUSINESSES	 	UNCONSOLIDATED JOINT VENTURES (1)	 	CONSOLIDATED BUSINESSES	 	UNCONSOLIDATED JOINT VENTURES (1)	 	
 	 	 	 	 	 	 	 	 	 	
REVENUES:	 	 	 	 	 	 	 	 	
 	Minimum rents	89,775	 	40,644	 	87,059	 	40,505	 	
 	Percentage rents	6,606	 	3,696	 	5,476	 	2,862	 	
 	Expense recoveries	71,478	 	30,346	 	74,374	 	29,632	 	
 	Management, leasing, and development services	4,687	 	 	 	10,990	 	 	 	
 	Other	21,178	 	2,868	 	8,376	 	2,506	 	
 	Total revenues	193,724	 	77,554	 	186,275	 	75,505	 	
 	 	 	 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	 	 	
 	Maintenance, taxes, and utilities	45,756	 	18,123	 	51,288	 	18,959	 	
 	Other operating	20,968	 	5,151	 	19,359	 	6,156	 	
 	Restructuring charge	 	 	 	 	(118	)	 	 	
 	Management, leasing, and development services	2,276	 	 	 	1,886	 	 	 	
 	General and administrative	8,641	 	 	 	6,968	 	 	 	
 	Litigation charges (2)	 	 	 	 	 	 	38,500	 	
 	Interest expense	38,462	 	15,960	 	36,557	 	16,118	 	
 	Depreciation and amortization	36,374	 	9,743	 	37,239	 	10,435	 	
 	Total expenses	152,477	 	48,977	 	153,179	 	90,168	 	
 	 	 	 	 	 	 	 	 	 	
Nonoperating income	1,312	 	(1	)	31	 	(1	)	
 	 	42,559	 	28,576	 	33,127	 	(14,664	)	
Income tax expense	(186	)	 	 	(1,400	)	 	 	
Equity in income (loss) of Unconsolidated Joint Ventures	16,199	 	 	 	(17,492	)	 	 	
 	 	 	 	 	 	 	 	 	 	
Net income	58,572	 	 	 	14,235	 	 	 	
Net income attributable to noncontrolling interests:	 	 	 	 	 	 	 	 	
 	Noncontrolling share of income of consolidated joint ventures	(3,879	)	 	 	(2,845	)	 	 	
 	TRG series F preferred distributions	(615	)	 	 	(615	)	 	 	
 	Noncontrolling share of income of TRG	(16,737	)	 	 	(2,794	)	 	 	
Distributions to participating securities of TRG	(541	)	 	 	(362	)	 	 	
Preferred stock dividends	(3,659	)	 	 	(3,659	)	 	 	
Net income attributable to Taubman Centers, Inc. common shareowners	33,141	 	 	 	3,960	 	 	 	

 	 	 	 	 	 	 	 	 	 	
SUPPLEMENTAL INFORMATION:	 	 	 	 	 	 	 	 	
 	EBITDA - 100% (2)	117,395	 	54,279	 	106,923	 	11,889	 	
 	EBITDA - outside partners' share	(12,241	)	(24,152	)	(11,063	)	(14,971	)	
 	Beneficial interest in EBITDA (2)	105,154	 	30,127	 	95,860	 	(3,082	)	
 	Beneficial interest expense	(33,107	)	(8,266	)	(31,505	)	(8,358	)	
 	Beneficial income tax expense	(186	)	 	 	(1,400	)	 	 	
 	Non-real estate depreciation	(1,202	)	 	 	(852	)	 	 	
 	Preferred dividends and distributions	(4,274	)	 	 	(4,274	)	 	 	
 	Fund from Operations contribution (2)	66,385	 	21,861	 	57,829	 	(11,440	)	
 	 	 	 	 	 	 	 	 	 	
 	Net straightline adjustments to rental revenue, recoveries,	 	 	 	 	 	 	 	 	
 	  and ground rent expense at TRG %	413	 	160	 	(410	)	(53	)	
 	 	 	 	 	 	 	 	 	 	
 (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 litigation charges related to Westfarms. TRG's share of the charges was $30.4 million.	 	

 

Taubman Centers/8
 
 TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	 	
 Table 3 - Income Statement	 	 	 	 	 	 	 	 	
 For the Years Ended December 31, 2010 and 2009	 	 	 	 	 	 	 	 	
 (in thousands of dollars)	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
 	 	2010	 	2009	 	
 	 	CONSOLIDATED BUSINESSES	 	UNCONSOLIDATED JOINT VENTURES (1)	 	CONSOLIDATED BUSINESSES	 	UNCONSOLIDATED JOINT VENTURES (1)	 	
 	 	 	 	 	 	 	 	 	 	
REVENUES:	 	 	 	 	 	 	 	 	
 	Minimum rents	341,727	 	155,382	 	341,914	 	157,099	 	
 	Percentage rents	13,167	 	6,567	 	10,818	 	5,039	 	
 	Expense recoveries	237,415	 	100,635	 	246,377	 	101,692	 	
 	Management, leasing, and development services	16,109	 	 	 	21,179	 	 	 	
 	Other	46,140	 	7,807	 	45,816	 	8,705	 	
 	Total revenues	654,558	 	270,391	 	666,104	 	272,535	 	
 	 	 	 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	 	 	
 	Maintenance, taxes, and utilities	179,234	 	68,270	 	189,061	 	68,094	 	
 	Other operating	75,401	 	19,387	 	67,182	 	24,024	 	
 	Restructuring charge (2)	 	 	 	 	2,512	 	 	 	
 	Management, leasing, and development services	8,258	 	 	 	7,862	 	 	 	
 	General and administrative	30,234	 	 	 	27,858	 	 	 	
 	Litigation charges (3)	 	 	 	 	 	 	38,500	 	
 	Impairment charges (4)	 	 	 	 	166,680	 	 	 	
 	Interest expense	152,708	 	63,835	 	145,670	 	64,407	 	
 	Depreciation and amortization	153,876	 	38,179	 	147,316	 	39,274	 	
 	Total expenses	599,711	 	189,671	 	754,141	 	234,299	 	
 	 	 	 	 	 	 	 	 	 	
Nonoperating Income	2,802	 	2	 	711	 	87	 	
Impairment loss on marketable securities	 	 	 	 	(1,666	)	 	 	
 	 	57,649	 	80,722	 	(88,992	)	38,323	 	
Income tax expense	(734	)	 	 	(1,657	)	 	 	
Equity in income of Unconsolidated Joint Ventures	45,412	 	 	 	11,488	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Net income (loss)	102,327	 	 	 	(79,161	)	 	 	
Net (income) loss attributable to noncontrolling interests:	 	 	 	 	 	 	 	 	
 	Noncontrolling share of income of consolidated joint ventures	(9,780	)	 	 	(3,115	)	 	 	
 	TRG series F preferred distributions	(2,460	)	 	 	(2,460	)	 	 	
 	Noncontrolling share of (income) loss of TRG	(26,219	)	 	 	31,224	 	 	 	
Distributions to participating securities of TRG	(1,635	)	 	 	(1,560	)	 	 	
Preferred stock dividends	(14,634	)	 	 	(14,634	)	 	 	
Net income (loss) attributable to Taubman Centers, Inc. common shareowners	47,599	 	 	 	(69,706	)	 	 	

SUPPLEMENTAL INFORMATION:	 	 	 	 	 	 	 	 	
 	EBITDA - 100% (2), (3), (4)	364,233	 	182,736	 	203,994	 	142,004	 	
 	EBITDA - outside partners' share	(41,530	)	(82,054	)	(35,343	)	(74,189	)	
 	Beneficial interest in EBITDA (2), (3), (4)	322,703	 	100,682	 	168,651	 	67,815	 	
 	Beneficial interest expense	(131,484	)	(33,076	)	(125,823	)	(33,427	)	
 	Beneficial income tax expense	(734	)	 	 	(1,657	)	 	 	
 	Non-real estate depreciation	(3,722	)	 	 	(3,439	)	 	 	
 	Preferred dividends and distributions	(17,094	)	 	 	(17,094	)	 	 	
 	Funds from Operations contribution (2), (3), (4)	169,669	 	67,606	 	20,638	 	34,388	 	
 	 	 	 	 	 	 	 	 	 	
 	Net straightline adjustments to rental revenue, recoveries,	 	 	 	 	 	 	 	 	
 	  and ground rent expense at TRG %	627	 	162	 	83	 	263	 	

 (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 2009, the Company recognized litigation charges related to Westfarms. TRG's share of the charges was $30.4 million.	 	
 (4)	In 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.	 	

 

Taubman Centers/9
 
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 December 31, 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	33,141	 	56,008,080	 	0.59	 	3,960	 	55,013,454	 	0.07	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Add depreciation of TCO's additional basis	1,720	 	 	 	0.03	 	1,720	 	 	 	0.03	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to TCO common shareowners,	 	 	 	 	 	 	 	 	 	 	 	
excluding step-up depreciation	34,861	 	56,008,080	 	0.62	 	5,680	 	55,013,454	 	0.10	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	
  Noncontrolling share of income of TRG	16,737	 	26,251,577	 	 	 	2,794	 	26,380,076	 	 	 	
  Distributions to participating securities	541	 	871,262	 	 	 	362	 	871,262	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to partnership unitholders	 	 	 	 	 	 	 	 	 	 	 	
and participating securities	52,139	 	83,130,919	 	0.63	 	8,836	 	82,264,792	 	0.11	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization:	 	 	 	 	 	 	 	 	 	 	 	 	
  Consolidated businesses at 100%	36,374	 	 	 	0.44	 	37,239	 	 	 	0.45	 	
  Depreciation of TCO's additional basis	(1,720	)	 	 	(0.02	)	(1,720	)	 	 	(0.02	)	
  Noncontrolling partners in consolidated joint ventures	(3,007	)	 	 	(0.04	)	(3,166	)	 	 	(0.04	)	
  Share of Unconsolidated Joint Ventures	5,662	 	 	 	0.07	 	6,052	 	 	 	0.07	 	
  Non-real estate depreciation	(1,202	)	 	 	(0.01	)	(852	)	 	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations	88,246	 	83,130,919	 	1.06	 	46,389	 	82,264,792	 	0.56	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	67.6	%	 	 	 	 	67.0	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations attributable to TCO	59,624	 	 	 	1.06	 	31,092	 	 	 	0.56	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations	88,246	 	83,130,919	 	1.06	 	46,389	 	82,264,792	 	0.56	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
TRG's share of litigation charges	 	 	 	 	 	 	30,392	 	 	 	0.37	 	
Restructuring charge	 	 	 	 	 	 	(118	)	 	 	(0.00	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations	88,246	 	83,130,919	 	1.06	 	76,663	 	82,264,792	 	0.93	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	67.6	%	 	 	 	 	67.0	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations attributable to TCO	59,624	 	 	 	1.06	 	51,383	 	 	 	0.93	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations	88,246	 	83,130,919	 	1.06	 	76,663	 	82,264,792	 	0.93	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
The Pier Shops FFO	2,671	 	 	 	0.03	 	3,041	 	 	 	0.04	 	
Regency Square FFO	(211	)	 	 	(0.00	)	120	 	 	 	0.00	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations,	 	 	 	 	 	 	 	 	 	 	 	 	
excluding The Pier Shops and Regency Square	90,706	 	83,130,919	 	1.09	 	79,824	 	82,264,792	 	0.97	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	67.6	%	 	 	 	 	67.0	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations attributable to TCO,	 	 	 	 	 	 	 	 	 	 	 	
excluding The Pier Shops and Regency Square	61,286	 	 	 	1.09	 	53,482	 	 	 	0.97	 	

 

 
Taubman Centers/10
 
TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	 	 	 	 	 	
Table 5 - Reconciliation of Net Income (Loss) Attributable to Taubman Centers, Inc. Common Shareowners to Funds from Operations	 	
   and Adjusted Funds from Operations	 	 	 	 	 	 	 	 	 	 	 	 	
For the Years Ended December 31, 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 (1)	 	/Unit	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to TCO common shareowners	47,599	 	55,702,813	 	0.86	 	(69,706	)	53,239,279	 	(1.31	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add depreciation of TCO's additional basis	6,880	 	 	 	0.12	 	6,880	 	 	 	0.13	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to TCO common shareowners,	 	 	 	 	 	 	 	 	 	
 	excluding step-up depreciation	54,479	 	55,702,813	 	0.98	 	(62,826	)	53,239,279	 	(1.18	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	
 	Noncontrolling share of income (loss) of TRG	26,219	 	26,301,349	 	 	 	(31,224	)	26,417,074	 	 	 	
 	Distributions to participating securities	1,635	 	871,262	 	 	 	1,560	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss) attributable to partnership unit holders	 	 	 	 	 	 	 	 	 	
 	and participating securities	82,333	 	82,875,424	 	0.99	 	(92,490	)	79,656,353	 	(1.16	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization:	 	 	 	 	 	 	 	 	 	 	 	 	
 	Consolidated businesses at 100%	153,876	 	 	 	1.86	 	147,316	 	 	 	1.85	 	
 	Depreciation of TCO's additional basis	(6,880	)	 	 	(0.08	)	(6,880	)	 	 	(0.09	)	
 	Noncontrolling partners in consolidated joint ventures	(10,526	)	 	 	(0.13	)	(12,381	)	 	 	(0.16	)	
 	Share of Unconsolidated Joint Ventures	22,194	 	 	 	0.27	 	22,900	 	 	 	0.29	 	
 	Non-real estate depreciation	(3,722	)	 	 	(0.04	)	(3,439	)	 	 	(0.04	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations	237,275	 	82,875,424	 	2.86	 	55,026	 	81,269,311	 	0.68	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	67.5	%	 	 	 	 	66.8	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations attributable to TCO	160,138	 	 	 	2.86	 	36,799	 	 	 	0.68	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations	237,275	 	82,875,424	 	2.86	 	55,026	 	81,269,311	 	0.68	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TRG's share of impairment charges	 	 	 	 	 	 	160,802	 	 	 	1.98	 	
TRG's share of litigation charges	 	 	 	 	 	 	30,392	 	 	 	0.37	 	
Restructuring charge	 	 	 	 	 	 	2,512	 	 	 	0.03	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations	237,275	 	82,875,424	 	2.86	 	248,732	 	81,269,311	 	3.06	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	67.5	%	 	 	 	 	66.8	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations attributable to TCO	160,138	 	 	 	2.86	 	166,267	 	 	 	3.06	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations	237,275	 	82,875,424	 	2.86	 	248,732	 	81,269,311	 	3.06	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The Pier Shops FFO	10,739	 	 	 	0.13	 	5,210	 	 	 	0.07	 	
Regency Square FFO	933	 	 	 	0.01	 	296	 	 	 	0.00	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations,	 	 	 	 	 	 	 	 	 	 	 	 	
 	excluding The Pier Shops and Regency Square	248,947	 	82,875,424	 	3.00	 	254,238	 	81,269,311	 	3.13	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	67.5	%	 	 	 	 	66.8	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Funds from Operations attributable to TCO,	 	 	 	 	 	 	 	 	 	
 	excluding The Pier Shops and Regency Square	167,983	 	 	 	3.00	 	169,923	 	 	 	3.13	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1)	Per share amounts for Funds from Operations and Adjusted Funds from Operations are calculated using weighted average diluted shares, which include the dilutive effect of potential common stock. Per share amounts for net loss attributable to common shareholders and net loss attributable to partnership unitholders and participating securities are calculated using weighted average outstanding shares, which exclude the dilutive effect of potential common stock because the impact is anti-dilutive.	 	

 

Taubman Centers/11
 
TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	 	 	 	 	
Table 6 - Reconciliation of Net Income (Loss) to Beneficial Interest in EBITDA	 	 	 	 	 	 	 	 	 	 	
For the Periods Ended December 31, 2010 and 2009	 	 	 	 	 	 	 	 	 	 	 	
(in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding)	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	 	Year Ended	 	
 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	58,572	 	 	 	14,235	 	 	 	102,327	 	 	 	(79,161	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated businesses at 100%	 	36,374	 	 	 	37,239	 	 	 	153,876	 	 	 	147,316	 	
Noncontrolling partners in consolidated joint ventures	 	(3,007	)	 	 	(3,166	)	 	 	(10,526	)	 	 	(12,381	)	
Share of Unconsolidated Joint Ventures	 	5,662	 	 	 	6,052	 	 	 	22,194	 	 	 	22,900	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) interest expense and income tax expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated businesses at 100%	 	38,462	 	 	 	36,557	 	 	 	152,708	 	 	 	145,670	 	
Noncontrolling partners in consolidated joint ventures	 	(5,355	)	 	 	(5,052	)	 	 	(21,224	)	 	 	(19,847	)	
Share of Unconsolidated Joint Ventures	 	8,266	 	 	 	8,358	 	 	 	33,076	 	 	 	33,427	 	
Income tax expense	 	186	 	 	 	1,400	 	 	 	734	 	 	 	1,657	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less noncontrolling share of income of consolidated joint ventures	 	(3,879	)	 	 	(2,845	)	 	 	(9,780	)	 	 	(3,115	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beneficial Interest in EBITDA	 	135,281	 	 	 	92,778	 	 	 	423,385	 	 	 	236,466	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	67.6	%	 	 	67.0	%	 	 	67.5	%	 	 	66.8	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Beneficial Interest in EBITDA attributable to TCO	 	91,403	 	 	 	62,183	 	 	 	285,685	 	 	 	158,063	 	

 

 
Taubman Centers/12
 
TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	 	 	 	 	
Table 7 - Reconciliation of Net Income (Loss) to Net Operating Income (NOI)	 	 	 	 	 	 	 	
For the Periods Ended December 31, 2010 and 2009	 	 	 	 	 	 	 	 	 	 	 	
(in thousands of dollars)	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Year Ended	 	
 	 	2010	 	 	2009	 	 	2010	 	 	2009	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income (loss)	 	58,572	 	 	 	14,235	 	 	 	102,327	 	 	 	(79,161	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Consolidated businesses at 100%	 	36,374	 	 	 	37,239	 	 	 	153,876	 	 	 	147,316	 	
 	Noncontrolling partners in consolidated joint ventures	 	(3,007	)	 	 	(3,166	)	 	 	(10,526	)	 	 	(12,381	)	
 	Share of Unconsolidated Joint Ventures	 	5,662	 	 	 	6,052	 	 	 	22,194	 	 	 	22,900	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) interest expense and income tax expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Interest expense:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Consolidated businesses at 100%	 	38,462	 	 	 	36,557	 	 	 	152,708	 	 	 	145,670	 	
 	Noncontrolling partners in consolidated joint ventures	 	(5,355	)	 	 	(5,052	)	 	 	(21,224	)	 	 	(19,847	)	
 	Share of Unconsolidated Joint Ventures	 	8,266	 	 	 	8,358	 	 	 	33,076	 	 	 	33,427	 	
 	Income tax expense	 	186	 	 	 	1,400	 	 	 	734	 	 	 	1,657	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less noncontrolling share of income of consolidated joint ventures	 	(3,879	)	 	 	(2,845	)	 	 	(9,780	)	 	 	(3,115	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add EBITDA attributable to outside partners:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	EBITDA attributable to noncontrolling partners in consolidated joint ventures	 	12,241	 	 	 	11,063	 	 	 	41,530	 	 	 	35,343	 	
 	EBITDA attributable to outside partners in Unconsolidated Joint Ventures	 	24,152	 	 	 	14,971	 	 	 	82,054	 	 	 	74,189	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA at 100%	 	171,674	 	 	 	118,812	 	 	 	546,969	 	 	 	345,998	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Add (less) items excluded from shopping center NOI:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	General and administrative expenses	 	8,641	 	 	 	6,968	 	 	 	30,234	 	 	 	27,858	 	
 	Management, leasing, and development services, net	 	(2,411	)	 	 	(9,104	)	 	 	(7,851	)	 	 	(13,317	)	
 	Restructuring charge	 	 	 	 	 	(118	)	 	 	 	 	 	 	2,512	 	
 	Litigation charges	 	 	 	 	 	38,500	 	 	 	 	 	 	 	38,500	 	
 	Impairment charges	 	 	 	 	 	 	 	 	 	 	 	 	 	166,680	 	
 	Gain on sale of peripheral land	 	(1,178	)	 	 	 	 	 	 	(2,218	)	 	 	 	 	
 	Interest income	 	(133	)	 	 	(30	)	 	 	(586	)	 	 	(798	)	
 	Impairment loss on marketable securities	 	 	 	 	 	 	 	 	 	 	 	 	 	1,666	 	
 	Straight-line of rents	 	(1,131	)	 	 	384	 	 	 	(2,701	)	 	 	(2,569	)	
 	The Pier Shops NOI	 	(1,218	)	 	 	684	 	 	 	(4,097	)	 	 	(2,620	)	
 	Regency Square NOI	 	(1,517	)	 	 	(1,276	)	 	 	(4,299	)	 	 	(5,159	)	
 	Non-center specific operating expenses and other	 	7,726	 	 	 	6,108	 	 	 	24,337	 	 	 	18,781	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI at 100%	 	180,453	 	 	 	160,928	 	 	 	579,788	 	 	 	577,532	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI - growth %	 	12.1	%	 	 	 	 	 	 	0.4	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI at 100%	 	180,453	 	 	 	160,928	 	 	 	579,788	 	 	 	577,532	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Lease cancellation income (1)	 	(13,335	)	 	 	(1,463	)	 	 	(23,464	)	 	 	(24,204	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI at 100% excluding lease cancellation income	 	167,118	 	 	 	159,465	 	 	 	556,324	 	 	 	553,328	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI excluding lease cancellation income - growth %	 	4.8	%	 	 	 	 	 	 	0.5	%	 	 	 	 	

(1)	Excludes The Pier Shops and Regency Square.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 

Taubman Centers/13

TAUBMAN CENTERS, INC.	 	 	 	 	 	
Table 8 - Balance Sheets	 	 	 	 	 	
As of December 31, 2010 and December 31, 2009	 	 	 	 	 	
  ( in thousands of dollars)	  As of	 	
 	 	December 31, 2010	 	 	December 31, 2009	 	
Consolidated Balance Sheet of Taubman Centers, Inc. (1) :	 	 	 	 	 	
 	 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	
 	Properties	 	3,528,297	 	 	 	3,496,853	 	
 	Accumulated depreciation and amortization	 	(1,199,247	)	 	 	(1,100,610	)	
 	 	 	2,329,050	 	 	 	2,396,243	 	
 	Investment in Unconsolidated Joint Ventures	 	77,122	 	 	 	89,804	 	
 	Cash and cash equivalents	 	19,291	 	 	 	16,176	 	
 	Accounts and notes receivable, net	 	49,906	 	 	 	44,503	 	
 	Accounts receivable from related parties	 	1,414	 	 	 	1,558	 	
 	Deferred charges and other assets	 	70,090	 	 	 	58,569	 	
 	 	 	2,546,873	 	 	 	2,606,853	 	
 	 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	
 	Notes payable	 	2,656,560	 	 	 	2,691,019	 	
 	Accounts payable and accrued liabilities	 	247,895	 	 	 	230,276	 	
 	Distributions in excess of investments in and net income of Unconsolidated Joint Ventures	 	170,329	 	 	 	160,305	 	
 	 	 	3,074,784	 	 	 	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	 	589,881	 	 	 	579,983	 	
 	     Accumulated other comprehensive income (loss)	 	(14,925	)	 	 	(24,443	)	
 	     Dividends in excess of net income	 	(939,290	)	 	 	(884,666	)	
 	 	 	(363,761	)	 	 	(328,557	)	
 	Noncontrolling interests:	 	 	 	 	 	 	 	
 	     Noncontrolling interests in consolidated joint ventures	 	(100,355	)	 	 	(100,014	)	
 	     Noncontrolling interests in partnership equity of TRG	 	(93,012	)	 	 	(75,393	)	
 	     Preferred Equity of TRG	 	29,217	 	 	 	29,217	 	
 	 	 	(164,150	)	 	 	(146,190	)	
 	 	 	(527,911	)	 	 	(474,747	)	
 	 	 	2,546,873	 	 	 	2,606,853	 	

 	 	 	 	 	 	 	 	 	
Combined Balance Sheet of Unconsolidated Joint Ventures (1) :	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	 	 	
 	Properties	 	1,092,916	 	 	 	1,094,963	 	
 	Accumulated depreciation and amortization	 	(417,712	)	 	 	(396,518	)	
 	 	 	675,204	 	 	 	698,445	 	
 	Cash and cash equivalents	 	21,339	 	 	 	18,544	 	
 	Accounts and notes receivable	 	26,288	 	 	 	26,982	 	
 	Deferred charges and other assets	 	18,891	 	 	 	22,310	 	
 	 	 	741,722	 	 	 	766,281	 	
 	 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	
 	Notes payable	 	1,125,618	 	 	 	1,092,806	 	
 	Accounts payable and other liabilities, net	 	37,292	 	 	 	50,615	 	
 	 	 	1,162,910	 	 	 	1,143,421	 	
 	 	 	 	 	 	 	 	 	
Accumulated Deficiency in Assets:	 	 	 	 	 	 	 	
 	Accumulated deficiency in assets - TRG	 	(222,109	)	 	 	(200,169	)	
 	Accumulated deficiency in assets - Joint Venture Partners	 	(194,438	)	 	 	(166,866	)	
 	Accumulated other comprehensive income (loss) - TRG	 	(2,527	)	 	 	(5,397	)	
 	Accumulated other comprehensive income (loss) - Joint Venture Partners	 	(2,114	)	 	 	(4,708	)	
 	 	 	(421,188	)	 	 	(377,140	)	
 	 	 	741,722	 	 	 	766,281	 	
(1)	Certain 2009 amounts have been reclassified to conform to 2010 classifications.	 	 	 	 	 	

 

 
Taubman Centers/14
 
 	TAUBMAN CENTERS, INC.	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Table 9 -  Annual Guidance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	(all dollar amounts per common share on a diluted basis; amounts may not add due to rounding)	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	Guidance for 2011	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Year Ended	 	 	Range for Year Ended	 	 	Range for Year Ended	 	
 	 	December 31, 2010	 	 	December 31, 2011	 	 	December 31, 2011	 	
 	 	 
(Excluding The Pier Shops & Regency Square)	 	 
(Including The Pier Shops & Regency Square)	 	 	(Excluding The Pier Shops & Regency Square)	 	 	(Including The Pier Shops & Regency Square)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from Operations per common share (1)	3.00	 	2.86	 	 	2.86	 	2.98	 	 	2.62	 	2.74	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate depreciation - TRG	(1.77	)	(1.87	)	 	(1.64	)	(1.62	)	 	(1.74	)	(1.72	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Distributions on participating securities of TRG	(0.02	)	(0.02	)	 	(0.02	)	(0.02	)	 	(0.02	)	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation of TCO's additional basis in TRG	(0.12	)	(0.12	)	 	(0.12	)	(0.12	)	 	(0.12	)	(0.12	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to common shareowners, per common share (EPS) (1)	1.10	 	0.86	 	 	1.09	 	1.23	 	 	0.75	 	0.89	 	

(1)	The noncash impact of owning The Pier Shops and Regency Square (including anticipated default interest) is expected to result in an incremental FFO charge of approximately $(0.20) per diluted share for The Pier Shops and $(0.04) per diluted share for Regency Square in 2011. Including the impact of depreciation and amortization, the impact on EPS for the two centers is expected to be a charge of $(0.34) in 2011.
 
Significant noncash accounting gains will be recognized when the respective loan obligations are extinguished upon transfer of title to the properties. These gains have been excluded from EPS and FFO per diluted share estimates.