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 AND EXCHANGE ACT OF 1934

Date of report (earliest event reported):	August 1, 2003	
TAUBMAN CENTERS, INC.
(Exact Name of Registrant as Specified in its Charter)

Michigan	1-11530	38-2033632	
(State of Other Jurisdiction	(Commission	(I.R.S. Employer	
of Incorporation)	File Number)	Identification No.)	

                          200 East Long Lake Road, Suite 300,	 	
                          Bloomfield Hills, Michigan	48303-0200	
                         (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)

Item 12. Results of Operations and Financial Condition
        The information under this caption is furnished by Taubman Centers, Inc. (the “Company”) in accordance with Securities 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 Augsut 1, 2003, the Company issued a press release announcing its results of operations for the second quarter ended June 30, 2003. A copy of the press release is attached as Exhibit 99 to this report. In the earnings release, the Company used the non-GAAP financial measure of Funds from Operations (“FFO”) . A reconciliation of FFO to the comparable GAAP financial measure (net loss) is contained in the attached earnings release. Disclosure regarding the definition of FFO used by the Company and why the Company’s management believes the presentation of FFO provides useful information to investors is included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002.

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: August 1, 2003	TAUBMAN CENTERS, INC.	
 	 	
 	By: /s/ Lisa A. Payne	
 		
 	Lisa A. Payne	
 	Executive Vice President and	
 	Chief Financial and	
 	Administrative Officer	

EXHIBIT INDEX
Exhibit Number

99		Press Release of Taubman Centers, Inc. dated August 1, 2003	

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

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

TAUBMAN CENTERS REPORTS SECOND QUARTER RESULTS

 	o	Solid FFO Per Share Growth	
 	o	Net Loss Due to Depreciation and Non-Operating Items	
 	o	Strongest Sales Per Square Foot Increase in Over Two Years	
 	o	Strong Opening Expected at Stony Point	

        BLOOMFIELD HILLS, Mich., August 1, 2003 - Taubman Centers, Inc. (NYSE:TCO) today announced its financial results for the second quarter, 2003.
        For the quarter ended June 30, 2003, Taubman Centers Funds from Operations (FFO) excluding costs related to the hostile tender offer was $0.41 per diluted share, a 46.4 percent growth in FFO per share as restated. In accordance with the National Association of Real Estate Investment Trusts (NAREIT) guidelines, the company restated its second quarter 2002 FFO per diluted share from $0.38 to $0.28 to include the impact of charges relating to technology investments. FFO per diluted share including the impact of costs related to the hostile tender offer was $0.30 for the quarter versus $0.28 for the second quarter of 2002.
        “These solid results reflect contributions from the successful opening of The Mall at Millenia (Orlando, Fla.) in October, 2002, as well as rents and recoveries from our core portfolio,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “We are pleased that our centers continue to perform well in this tough economic environment.”
        For the quarter ended June 30, 2003, Taubman Centers Net Loss was $0.26 per diluted common share versus a Net Loss of $0.01 per diluted common share for the quarter ended June 30, 2002. This was the result of additional allocations of GAAP net income to the minority interests during the quarter and costs related to the unsolicited hostile tender offer of $0.11 per share. In addition, the disposition of Paseo Nuevo (Santa Barbara, Calif.) provided a one-time positive impact of $0.10 per common share in the second quarter of 2002.
(more)
Taubman Centers/2
        For the year-to-date period ended June 30, 2003, Taubman Centers FFO excluding costs related to the hostile tender offer was $0.90 per diluted share, an increase of 34.3 percent from FFO per share of $0.67 during the six months ended June 30, 2002, as restated. FFO per diluted share including costs related to the hostile tender offer for the six month period was $0.68 versus $0.67 as restated for the first six months of 2002.
        For the six months ended June 30, 2003, Taubman Centers Net Loss was $0.40 per diluted common share versus $0.06 during the first six months of 2002. Similar to the quarter, this was a result of additional depreciation from acquisitions and new centers, additional allocations of GAAP net income to the minority interests, costs related to the unsolicited hostile tender offer and gains on dispositions that occurred in the prior year.
Strong Sales Lead Fundamentals
        Mall tenant sales per square foot increased 3.2 percent for the quarter and 0.6 percent for the six month period ended June 30. “This was the first quarter-over-quarter sales per square foot growth in over two years, and we are now showing positive growth for the year,” said Mr. Taubman. “If this growth becomes a trend, it will be very good news for our industry. As retailers become more optimistic about their prospects, over time, rents and occupancy levels will accelerate.”
        During the quarter average annualized rent per square foot for comparable centers was $42.12, up from $41.96 for the second quarter of 2002. “Our leasing spreads were very positive,” added Mr. Taubman. “During the quarter we opened 177,000 square feet of space at average rents of $47.00 and closed 188,000 square feet at average rents of $37.22, for a spread over 26 percent.”
        Comparable center end of period occupancy was flat at 87.7 percent on June 30, 2003. Comparable center leased space was 90.2 percent at June 30, 2003.
        During the quarter, net operating income in comparable centers was up 2 percent from the second quarter of 2002 driven by an increase in rents and recoveries.
Strong September Opening Anticipated for Stony Point
        Eighty-three of approximately 90 tenants have been announced for Stony Point Fashion Park (Richmond, Va.) , the company’s newest center, anchored by Saks Fifth Avenue, Dillard’s and Galyans. The center, which is opening September 18, will also feature six full-service restaurants – all new to Richmond – including Fleming’s Prime Steakhouse & Wine Bar, Copeland’s Cheesecake Bistro, Rio Grande Cafe, Brio Tuscan Grille, P.F. Chang’s China Bistro and Champps Restaurant & Bar. Stony Point is over 95 percent leased and committed and is expected to open about 80 percent occupied, with most of the remaining announced stores opening before the holidays.
(more)
Taubman Centers/3
        Forty-five percent of the stores will be unique to the Richmond market. The center’s fashion retailers will include such names as Louis Vuitton, Anthropologie, Cole Haan, Banana Republic, Betsey Johnson and Adrienne Vittadini. Teens and younger children will have an equally attractive selection of their favorite stores including Skechers USA, American Eagle Outfitters, Gap/Gap Kids, Hollister Co., Limited Too and Build-A-Bear Workshop. Some of the country’s most creative home and lifestyle retailers will locate at the center, including Restoration Hardware, Mikasa, Smith & Hawken, Sur La Table and Yves Delorme.
Willow Bend Refinancing Completed
        In late June, the company completed a $150 million mortgage financing on The Shops at Willow Bend (Plano, Texas) . The loan carries an all-in floating rate of LIBOR plus 2.9 percent including fees and matures in July 2006, with an option to extend for up to an additional two years. Credit Suisse First Boston provided the financing. Proceeds were used to retire the construction financing at the center. In addition, the company expects to complete a $12 million loan during the third quarter to refinance the peripheral land at the center.
        “We are pleased to have completed the financing at Willow Bend,” said Lisa A. Payne, executive vice president, chief financial and administrative officer of Taubman Centers. “We are bullish regarding the long-term opportunity at this center.”
MacArthur Center Investment
        As previously announced on July 10, the company acquired an additional 25 percent interest in MacArthur Center (Norfolk, Va.) increasing its ownership in the center to 95 percent. MacArthur Center, which opened in March 1999, has established itself as the premier center in the greater Norfolk/Hampton Roads market with Nordstrom and Dillard’s and its many unique-to-the-market specialty retailers. “We are pleased to have completed this accretive transaction at an attractive price,” said Mr. Taubman.
Financial Outlook
        The company continues to expect 2003 FFO per diluted share excluding costs related to the Simon hostile tender offer to be in the range of $1.80 to $1.84. It is expected that the fourth quarter will be significantly stronger than the third due to seasonality and the opening of Stony Point.
        The company expects Net Loss per common share for the year (excluding costs related to the hostile tender offer) to be in the range of $0.13 to $0.26.
(more)
Taubman Centers/4
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:

 	o	Income Statements	
 	o	Reconciliation of Net Income to Funds from Operations, EBITDA and Comparable Center NOI	
 	o	Changes in Funds from Operations and Earnings Per Share	
 	o	Components of Other Income	
 	o	Balance Sheets	
 	o	Debt Summary	
 	o	Other Debt Information	
 	o	Construction and Stabilization	
 	o	Capital Spending	
 	o	Acquisitions and Divestitures	
 	o	Operational Statistics	
 	o	Owned Centers	
 	o	Major Tenants in Owned Portfolio	
 	o	Anchors in Owned Portfolio	
Investor Conference Call
        The company will host a conference call today (August 1) at 11:00 a.m. (EDT) to discuss these results and will simulcast the conference call at www.taubman.com under “Investor Relations” as well as www.companyboardroom.com and www.streetevents.com . The online replay will follow shortly after the call and continue for 90 days.
        Taubman Centers, Inc., a real estate investment trust, owns and/or manages 30 urban and suburban regional and super regional shopping centers in 13 states. In addition, Stony Point Fashion Park is under construction and will open September 18, 2003, and Northlake Mall (Charlotte, N.C.) will begin construction in October and will open fall 2005. 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.
For the Three and Six Months Ended June 30, 2003 and 2002

(in thousands of dollars, except as indicated)

	Three Months Ended June 30	Six Months Ended June 30	
	2003	2002	2003	2002	
 		
Income before discontinued operations and minority and preferred interests	 	1,869	 	2,852	 	9,757	 	11,124	 	
Discontinued operations - gain on disposition of interests in centers (1)	 	 	 	9,975	 	 	 	12,024	 	
Discontinued operations - income from operations (1)	 	 	 	979	 	 	 	2,723	 	
Minority interest in consolidated joint ventures	 	242	 	435	 	90	 	646	 	
Minority share of (income) loss of TRG (2)	 	965	 	(4,997	)	(242	)	(9,537	)	
Distributions in excess of earnings allocable to minority partners (2)	 	(9,794	)	(3,148	)	(17,054	)	(6,768	)	
TRG preferred distributions	 	(2,250	)	(2,250	)	(4,500	)	(4,500	)	
Net income (loss)	 	(8,968	)	3,846	 	(11,949	)	5,712	 	
Preferred dividends	 	(4,150	)	(4,150	)	(8,300	)	(8,300	)	
Net income (loss) allocable to common shareowners	 	(13,118	)	(304	)	(20,249	)	(2,588	)	
Income (loss) from continuing operations per common share - diluted	 	(0.26	)	(0.11	)	(0.40	)	(0.17	)	
Net income (loss) per common share - basic	 	(0.26	)	(0.01	)	(0.40	)	(0.05	)	
Net income (loss) per common share - diluted	 	(0.26	)	(0.01	)	(0.40	)	(0.06	)	
EBITDA (3)	 	64,819	 	60,281	 	135,601	 	128,517	 	
Funds from Operations - Operating Partnership (3)	 	25,638	 	23,901	 	57,756	 	56,576	 	
Funds from Operations allocable to TCO (3)	 	15,449	 	14,767	 	35,439	 	34,926	 	
Funds from Operations per common share - basic (3)	 	0.31		0.29		0.69		0.69		
Funds from Operations per common share - diluted (3)	 	0.30		0.28		0.68		0.67		
Weighted average number of common shares outstanding	 	50,142,939	 	51,076,901	 	51,180,513	 	50,980,530	 	
Common shares outstanding at end of period	 	49,343,395	 	51,121,140	 		
Weighted average units - Operating Partnership - basic	 	83,214,379	 	82,669,909	 	83,563,337	 	82,573,538	 	
Weighted average units - Operating Partnership - diluted	 	84,631,107	 	84,189,370	 	84,939,969	 	84,147,584	 	
Units outstanding at end of period - Operating Partnership	 	83,211,570	 	82,888,206	 		
Ownership percentage of the Operating Partnership at end of period	 	59.4	%	61.8	%		
Number of owned shopping centers at end of period	 	20	 	19	 		
 	 		
Operating Statistics:	 		
Mall tenant sales	 	764,404	 	669,448	 	1,470,631	 	1,314,765	 	
Mall tenant sales - comparable centers (4)	 	562,024	 	543,358	 	1,077,799	 	1,057,575	 	
Ending occupancy - comparable centers (4)	 	87.7	%	87.9	%	87.7	%	87.9	%	
Ending occupancy	 	85.5	%	84.2	%	85.5	%	84.2	%	
Average occupancy - comparable centers (4)	 	87.7	%	87.4	%	88.0	%	87.3	%	
Average occupancy	 	85.4	%	83.7	%	85.5	%	83.5	%	
Leased space at end of period - comparable centers (4) (5)	 	90.2	%	91.4	%	90.2	%	91.4	%	
Leased space at end of period (5)	 	88.0	%	87.6	%	88.0	%	87.6	%	
Mall tenant occupancy costs as a percentage of tenant sales (6)	 	17.5	%	17.6	%	18.1	%	17.6	%	
Rent per square foot - mall tenants (4)	 	$42.12	 	$41.96	 	$42.30	 	$41.96	 	
Taubman Centers/6
Notes:
(1)     The Company sold La Cumbre Plaza and Paseo Nuevo in March 2002 and May 2002, respectively, resulting in gains of $2 million and $10 million. The gains on the sales of La Cumbre Plaza and Paseo Nuevo and the results of operations of La Cumbre Plaza and Paseo Nuevo have been reported as discontinued operations.
(2)     Because the Operating Partnership’s net equity allocable to partnership unitholders is less than zero, the income allocated to minority partners during the three and six months ended June 30, 2003 and 2002 is equal to the minority partners’ share of distributions. The Company’s net equity allocable to partnership unitholders is less than zero due to accumulated distributions in excess of net income and not as a result of operating losses.
(3)     The Company defines EBITDA as the Operating Partnership’s share of both the Consolidated Businesses’ and Unconsolidated Joint Ventures’ earnings before interest and depreciation and amortization, excluding gains on dispositions of depreciated operating properties.
The National Association of Real Estate Investment Trusts (NAREIT) defines Funds from Operations as net income (loss) (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) from extraordinary income items and sales of properties, plus real estate related depreciation and after adjustments for unconsolidated partnerships and joint ventures. NAREIT suggests that FFO is a useful supplemental measure of operating performance for REITs.
TRG’s EBITDA and FFO for the three and six months ended June 30, 2002 were restated from previously reported amounts to include charges related to technology investments of $8.1 million, or $0.10 per share, recognized during 2002 and previously excluded from EBITDA and FFO. FFO per share for the three and twelve months ended December 31, 2002 previously reported as $0.49 and $1.72 per share, respectively, has been restated to $0.43 and $1.56, respectively, to include the charges related to the technology investments as well as costs related to the unsolicited tender offer. There were no such costs incurred during the three months ended September 30, 2002.
(4)     Excludes centers opened in 2001, The Mall at Millenia, Sunvalley, Paseo Nuevo, and La Cumbre Plaza.
(5)     Leased space comprises both occupied space and space that is leased but not yet occupied.
(6)     Mall tenant occupancy costs are defined as the sum of minimum rents, percentage rents and expense recoveries, excluding utilities.
Taubman Centers/7
TAUBMAN CENTERS, INC.
Income Statement
For the Three Months Ended June 30, 2003 and 2002

(in thousands of dollars)

	2003	2002	
 			
	Consolidated
Businesses	Unconsolidated
Joint
Ventures (1)	Total	Consolidated
Businesses	Unconsolidated
Joint
Ventures (1)	Total	
 			
REVENUES:	 		 		 		 		 		 		 	
     Minimum rents	 	52,075	 	48,620	 	100,695	 	46,739	 	44,991	 	91,730	 	
     Percentage rents	 	340	 	370	 	710	 	629	 	(127	)	502	 	
     Expense recoveries	 	34,221	 	27,843	 	62,064	 	29,621	 	22,320	 	51,941	 	
     Management, leasing and development	 	5,571	 	 	 	5,571	 	5,735	 	 	 	5,735	 	
     Other	 	5,819	 	3,007	 	8,826	 	7,347	 	2,018	 	9,365	 	
													
        Total revenues	 	98,026	 	79,840	 	177,866	 	90,071	 	69,202	 	159,273	 	
 	 		
OPERATING COSTS:	 		
     Recoverable expenses	 	29,828	 	23,019	 	52,847	 	25,905	 	20,881	 	46,786	 	
     Other operating	 	9,319	 	5,122	 	14,441	 	6,351	 	5,783	 	12,134	 	
     Charge related to technology investments	 	 	 	 	 	 	 	8,125	 	 	 	8,125	 	
     Costs related to unsolicited tender offer	 	9,163	 	 	 	9,163	 		
     Management, leasing and development	 	5,513	 	 	 	5,513	 	5,151	 	 	 	5,151	 	
     General and administrative	 	6,297	 	 	 	6,297	 	5,445	 	 	 	5,445	 	
     Interest expense	 	22,067	 	20,936	 	43,003	 	20,764	 	19,568	 	40,332	 	
     Depreciation and amortization	 	22,252	 	14,420	 	36,672	 	20,218	 	13,517	 	33,735	 	
													
        Total operating costs	 	104,439	 	63,497	 	167,936	 	91,959	 	59,749	 	151,708	 	
													
 	 	(6,413	)	16,343	 	9,930	 	(1,888	)	9,453	 	7,565	 	

Equity in income of Unconsolidated Joint Ventures	 	8,282	 	 	 	 	 	4,740	 		
									
Income before discontinued operations	 		
     and minority and preferred interests	 	1,869	 	 	 	 	 	2,852	 		
Discontinued operations:	 		
     Net gain on disposition of interests in centers	 	 	 	 	 	 	 	9,975	 		
     EBITDA	 	 	 	 	 	 	 	979	 		
Minority and preferred interests:	 		
     TRG preferred distributions	 	(2,250	)	 	 	 	 	(2,250	)		
     Minority interest in consolidated joint ventures	 	242	 	 	 	 	 	435	 		
     Minority share of (income) loss of TRG	 	965	 	 	 	 	 	(4,997	)		
     Distributions in excess of minority share of income	 	(9,794	)	 	 	 	 	(3,148	)		
									
Net income (loss)	 	(8,968	)	 	 	 	 	3,846	 		
Series A preferred dividends	 	(4,150	)	 	 	 	 	(4,150	)		
									
Net income (loss) allocable to common shareowners	 	(13,118	)	 	 	 	 	(304	)		

 	 		
SUPPLEMENTAL INFORMATION:	 		
     EBITDA - 100% (2)	 	37,906	 	51,699	 	89,605	 	40,073	 	42,538	 	82,611	 	
     EBITDA - outside partners' share	 	(1,208	)	(23,578	)	(24,786	)	(1,985	)	(20,345	)	(22,330	)	
													
     EBITDA contribution	 	36,698	 	28,121	 	64,819	 	38,088	 	22,193	 	60,281	 	
     Beneficial interest expense	 	(21,135	)	(10,953	)	(32,088	)	(19,503	)	(9,771	)	(29,274	)	
     Non-real estate depreciation	 	(693	)	 	 	(693	)	(706	)	 	 	(706	)	
     Preferred dividends and distributions	 	(6,400	)	 	 	(6,400	)	(6,400	)	 	 	(6,400	)	
													
     Funds from Operations contribution (2)	 	8,470	 	17,168	 	25,638	 	11,479	 	12,422	 	23,901	 	

     Net straightline adjustments to rental revenue and	 		
       ground rent expense at TRG %	 	 	 	 	 	337	 	 	 	 	 	386		
											
(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)     EBITDA and FFO for the three months ended June 30, 2003 include costs of $9.2 million incurred in connection with the unsolicited tender offer. There were no such costs incurred during the three months ended June 30, 2002. EBITDA and FFO for the three months ended June 30, 2002 were restated from previously reported amounts to include charges related to technology investments of $8.1 million recognized during 2002 previously excluded from EBITDA and FFO.
Taubman Centers/8
TAUBMAN CENTERS, INC.
Income Statement
For the Six Months Ended June 30, 2003 and 2002

(in thousands of dollars)

	2003	2002	
 			
	Consolidated
Businesses	Unconsolidated
Joint
Ventures (1)	Total	Consolidated
Businesses	Unconsolidated
Joint
Ventures (1)	Total	
 			
REVENUES:	 		 		 		 		 		 		 	
     Minimum rents	 	104,918	 	97,036	 	201,954	 	93,489	 	86,471	 	179,960	 	
     Percentage rents	 	1,526	 	1,302	 	2,828	 	1,694	 	502	 	2,196	 	
     Expense recoveries	 	66,447	 	52,554	 	119,001	 	57,396	 	42,877	 	100,273	 	
     Management, leasing and development	 	10,363	 	 	 	10,363	 	10,863	 	 	 	10,863	 	
     Other	 	16,831	 	8,329	 	25,160	 	13,251	 	4,037	 	17,288	 	
													
        Total revenues	 	200,085	 	159,221	 	359,306	 	176,693	 	133,887	 	310,580	 	
 	 		
OPERATING COSTS:	 		
     Recoverable expenses	 	58,498	 	43,556	 	102,054	 	49,291	 	36,404	 	85,695	 	
     Other operating	 	18,858	 	10,177	 	29,035	 	16,307	 	11,013	 	27,320	 	
     Charge related to technology investments	 	 	 	 	 	 	 	8,125	 	 	 	8,125	 	
     Costs related to unsolicited tender offer	 	19,012	 	 	 	19,012	 		
     Management, leasing and development	 	10,061	 	 	 	10,061	 	10,044	 	 	 	10,044	 	
     General and administrative	 	12,237	 	 	 	12,237	 	10,365	 	 	 	10,365	 	
     Interest expense	 	44,579	 	40,656	 	85,235	 	41,393	 	37,767	 	79,160	 	
     Depreciation and amortization	 	45,768	 	28,239	 	74,007	 	40,921	 	27,594	 	68,515	 	
													
        Total operating costs	 	209,013	 	122,628	 	331,641	 	176,446	 	112,778	 	289,224	 	
													
 	 	(8,928	)	36,593	 	27,665	 	247	 	21,109	 	21,356	 	

Equity in income of Unconsolidated Joint Ventures	 	18,685	 	 	 	 	 	10,877	 		
									
Income before discontinued operations	 		
     and minority and preferred interests	 	9,757	 	 	 	 	 	11,124	 		
Discontinued operations:	 		
     Net gain on disposition of interests in centers	 	 	 	 	 	 	 	12,024	 		
     EBITDA	 	 	 	 	 	 	 	3,184	 		
     Depreciation	 	 	 	 	 	 	 	(461	)		
Minority and preferred interests:	 		
     TRG preferred distributions	 	(4,500	)	 	 	 	 	(4,500	)		
     Minority interest in consolidated joint ventures	 	90	 	 	 	 	 	646	 		
     Minority share of income of TRG	 	(242	)	 	 	 	 	(9,537	)		
     Distributions in excess of minority share of income	 	(17,054	)	 	 	 	 	(6,768	)		
									
Net income (loss)	 	(11,949	)	 	 	 	 	5,712	 		
Series A preferred dividends	 	(8,300	)	 	 	 	 	(8,300	)		
									
Net income (loss) allocable to common shareowners	 	(20,249	)	 	 	 	 	(2,588	)		

 	 		
SUPPLEMENTAL INFORMATION:	 		
     EBITDA - 100% (2)	 	81,419	 	105,488	 	186,907	 	85,745	 	86,470	 	172,215	 	
     EBITDA - outside partners' share	 	(3,247	)	(48,059	)	(51,306	)	(4,103	)	(39,595	)	(43,698	)	
													
     EBITDA contribution	 	78,172	 	57,429	 	135,601	 	81,642	 	46,875	 	128,517	 	
     Beneficial interest expense	 	(42,473	)	(21,293	)	(63,766	)	(38,916	)	(18,794	)	(57,710	)	
     Non-real estate depreciation	 	(1,279	)			(1,279	)	(1,431	)			(1,431	)	
     Preferred dividends and distributions	 	(12,800	)			(12,800	)	(12,800	)			(12,800	)	
													
     Funds from Operations contribution (2)	 	21,620	 	36,136	 	57,756	 	28,495	 	28,081	 	56,576	 	

     Net straightline adjustments to rental revenue and	 		
       ground rent expense at TRG %	 					617	 					977	 	
									
(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)     EBITDA and FFO for the six months ended June 30, 2003 include costs of $19.0 million incurred in connection with the unsolicited tender offer. There were no such costs incurred during the six months ended June 30, 2002. EBITDA and FFO for the six months ended June 30, 2002 were restated from previously recorded amounts to include charges related to technology investments of $8.1 million recognized during 2002 previously excluded from EBITDA and FFO.
Taubman Centers/9
TAUBMAN CENTERS, INC.
Reconciliation of Net Income to Funds from Operations, EBITDA, and Comparable Center Net Operating Income
For the Three and Six Months Ended June 30, 2003 and 2002

(in thousands of dollars)

	Three Months Ended June 30	Six Months Ended June 30	
	2003	2002	2003	2002	
	 	 	
Net income allocable to common shareowners	 	(13,118	)	(304	)	(20,249	)	(2,588	)	
 	 		
Add (less) depreciation and gains on dispositions of properties:	 		
     Gain on disposition of interests in centers	 			(9,975	)			(12,024	)	
     Depreciation and amortization:	 		
         Consolidated businesses at 100%	 	22,252	 	20,218	 	45,768	 	40,921	 	
         Minority partners in consolidated joint ventures	 	(518	)	(1,159	)	(1,231	)	(2,272	)	
         Discontinued operations	 							461	 	
         Share of unconsolidated joint ventures	 	8,886	 	7,682	 	17,451	 	17,204	 	
         Non-real estate depreciation	 	(693	)	(706	)	(1,279	)	(1,431	)	
 	 		
Add minority interests in TRG:	 		
     Minority share of income (loss) of TRG	 	(965	)	4,997	 	242	 	9,537	 	
     Distributions in excess of minority share of income of TRG	 	9,794	 	3,148	 	17,054	 	6,768	 	

Funds from Operations - TRG (1)	 	25,638	 	23,901	 	57,756	 	56,576	 	
									
Funds from Operations - TCO (1)	 	15,449	 	14,767	 	35,439	 	34,926	 	

Funds from Operations - TRG (from above)	 	25,638	 	23,901	 	57,756	 	56,576	 	
 	 		
Add (less):	 		
     Preferred dividends and distributions	 	6,400	 	6,400	 	12,800	 	12,800	 	
     Non-real estate depreciation	 	693	 	706	 	1,279	 	1,431	 	
     Interest expense for all businesses	 	43,003	 	40,332	 	85,235	 	79,160	 	
     Interest expense allocable to minority partners in consolidated joint ventures	 	(932	)	(1,261	)	(2,106	)	(2,476	)	
     Interest expense allocable to outside partners in unconsolidated joint ventures	 	(9,983	)	(9,797	)	(19,363	)	(18,974	)	

Beneficial interest in EBITDA - TRG (1)	 	64,819	 	60,281	 	135,601	 	128,517	 	
 	 		
Add:	 		
     EBITDA allocable to minority partners in consolidated joint ventures	 	1,208	 	1,985	 	3,247	 	4,103	 	
     EBITDA allocable to outside partners in unconsolidated joint ventures	 	23,578	 	20,345	 	48,059	 	39,595	 	

EBITDA at 100% - TRG	 	89,605	 	82,611	 	186,907	 	172,215	 	
 	 		
Add (less) items excluded from shopping center Net Operating Income:	 		
     General and administrative expenses	 	6,297	 	5,445	 	12,237	 	10,365	 	
     Management, leasing and development services, net	 	(58	)	(584	)	(302	)	(819	)	
     Costs related to unsolicited tender offer	 	9,163	 	 	 	19,012	 		
     Charges related to technology investments	 	 	 	8,125	 	 	 	8,125	 	
     Gains on peripheral land sales	 	(705	)	(2,288	)	(957	)	(4,245	)	
     Individually significant lease cancellation fees (2)	 	(500	)	 	 	(5,498	)		
     Dolphin CDD reversal in 2002	 	 	 	 	 	 	 	(2,867	)	
     Straight-line of minimum rent	 	(373	)	(733	)	(672	)	(1,275	)	
     Non-center specific operating expenses and other	 	2,243	 	1,512	 	4,509	 	6,609	 	

Net Operating Income - all centers at 100%	 	105,672	 	94,088	 	215,236	 	188,108	 	
 	 		
Less - Net Operating Income of non-comparable centers (3)	 	(28,294	)	(18,290	)	(57,354	)	(35,532	)	

Net Operating Income - comparable centers at 100%	 	77,378	 	75,798	 	157,882	 	152,576	 	
									
(1)     TRG’s EBITDA and FFO for the three and six months ended June 30, 2003 include costs of $9.2 million and $19.0 million, respectively, incurred in connection with the unsolicited tender offer. There were no such costs incurred during the three and six months ended June 30, 2002. TRG’s EBITDA and FFO for the three and six months ended June 30, 2002 were restated from previously reported amounts to include charges related to technology investments of $8.1 million recognized during 2002 previously excluded from EBITDA and FFO. TCO’s share of TRG’s FFO is based on an average ownership of 60% and 62% during the three months ended June 30, 2003 and 2002, respectively, and 61% and 62% during the six months ended June 30, 2003 and 2002, respectively.
(2)     The Company excludes individual lease cancellation fees in excess of $0.5 million from its computation of comparable center net operating income.
(3)     Includes centers opened in 2001, The Mall at Millenia, Sunvalley, Paseo Nuevo, and La Cumbre Plaza.
Taubman Centers/10
TAUBMAN CENTERS, INC.
Balance Sheets
As of June 30, 2003 and December 31, 2002

(in thousands of dollars)

	As of	
		
	June 30, 2003	December 31, 2002	
Consolidated Balance Sheet of Taubman Centers, Inc.:	 		 		 	
	 		
Assets:	 		
  Properties	 	2,601,989	 	2,533,530	 	
  Accumulated depreciation and amortization	 	(440,524	)	(404,566	)	
					
 	 	2,161,465	 	2,128,964	 	
  Cash and cash equivalents	 	29,015	 	32,502	 	
  Accounts and notes receivable	 	31,141	 	32,416	 	
  Accounts and notes receivable from related parties	 	2,169	 	3,887	 	
  Deferred charges and other assets	 	42,582	 	40,536	 	
					
 	 	2,266,372	 	2,238,305	 	

Liabilities:	 		
  Notes payable	 	1,592,990	 	1,543,693	 	
  Accounts payable and accrued liabilities	 	229,387	 	240,811	 	
  Dividend and distributions payable	 	13,001	 	13,746	 	
  Distributions in excess of net income of (investment in) Unconsolidated Joint Ventures	 	5,577	 	(31,402	)	
					
 	 	1,840,955	 	1,766,848	 	
	 		
Preferred Equity of TRG	 	97,275	 	97,275	 	
	 		
Shareowners' Equity:	 		
  Series A Cumulative Redeemable Preferred Stock	 	80	 	80	 	
  Series B Non-Participating Convertible Preferred Stock	 	32	 	32	 	
  Common stock	 	493	 	522	 	
  Additional paid-in capital	 	690,159	 	690,387	 	
  Accumulated other comprehensive income	 	(16,562	)	(17,485	)	
  Dividends in excess of net income	 	(346,060	)	(299,354	)	
					
 	 	328,142	 	374,182	 	
					
 	 	2,266,372	 	2,238,305	 	
					
Combined Balance Sheet of Unconsolidated Joint Ventures:	 		
	 		
Assets:	 		
  Properties	 	1,250,140	 	1,248,335	 	
  Accumulated depreciation and amortization	 	(309,278	)	(287,670	)	
					
 	 	940,862	 	960,665	 	
  Cash and cash equivalents	 	20,697	 	37,576	 	
  Accounts and notes receivable	 	18,479	 	16,487	 	
  Deferred charges and other assets	 	36,285	 	31,668	 	
					
 	 	1,016,323	 	1,046,396	 	

Liabilities:	 		
  Notes payable	 	1,350,661	 	1,289,739	 	
  Accounts payable and other liabilities	 	66,326	 	91,596	 	
					
 	 	1,416,987	 	1,381,335	 	
	 		
Accumulated Deficiency in Assets:	 		
  Accumulated deficiency in assets - TRG	 	(221,239	)	(187,584	)	
  Accumulated deficiency in assets - Joint Venture Partners	 	(175,143	)	(142,835	)	
  Accumulated other comprehensive income - TRG	 	(3,380	)	(3,568	)	
  Accumulated other comprehensive income - Joint Venture Partners	 	(902	)	(952	)	
					
 	 	(400,664	)	(334,939	)	
					
 	 	1,016,323	 	1,046,396	 	
					
Taubman Centers/11
TAUBMAN CENTERS, INC.
2003 Annual Outlook

(all dollar amounts per common share-diluted, amounts may not add due to rounding)

	Range for
Year Ended
December 31, 2003	
 	 	 	
Guidance for Funds from Operations per share, excluding	 		 		 	
  unsolicited tender offer costs (1)		$   1.80		$   1.84		
	 		
Real estate depreciation - TRG	 	(1.44	)	(1.40	)	
	 		
Depreciation of TCO's additional basis in TRG	 	(0.15	)	(0.15	)	
	 		
Distributions in excess of earnings allocable to minority interest	 	(0.47	)	(0.42	)	

Guidance for net loss allocable to common shareholders,	 		
  excluding unsolicited tender offer costs (1)	 	$  (0.26	)	$  (0.13	)	
					
(1)     Costs related to the unsolicited tender offer and related litigation during the three and six months ended June 30, 2003 were $9.2 million and $19.0 million, respectively. The Company expects to continue incurring significant costs until these matters are resolved. The ultimate cost will be dependent upon the outcome and duration of these matters.