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

 	
FORM 8-K	

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

Date of report (date of earliest event reported):     April 19, 2007	
 	
TAUBMAN CENTERS, INC .	
(Exact Name of Registrant as Specified in its Charter)	
 	
Michigan	
(State of Other Jurisdiction of Incorporation)	
 	
1-11530	38-2033632	
(Commission File Number)	(I.R.S. Employer Identification No.)	
 	
200 East Long Lake Road, Suite 300,
Bloomfield Hills, Michigan	 
48303-0200	
(Address of 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 April 19, 2007, the Company issued a press release announcing its results of operations for the quarter ended March 31, 2007. 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 April 19, 2007, entitled “Taubman Centers Reports Strong First Quarter Results.”	

SIGNATURES

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

Date: April 19, 2007	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 April 19, 2007, entitled “Taubman Centers Reports Strong First Quarter Results.”	

 

 

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

CONTACT:	Barbara Baker	
 	Taubman Centers, Inc.	
 	(248) 258-7367	
 	www.taubman.com	

FOR IMMEDIATE RELEASE

TAUBMAN CENTERS REPORTS STRONG FIRST QUARTER RESULTS
·  	Robust Tenant Sales per Square Foot - Up 8.9%	
·  	Occupancy Up 1.4%	
·  	Ownership of The Pier Shops Increased to 77.5%	

 BLOOMFIELD HILLS, Mich., April 19, 2007 -- Taubman Centers, Inc. (NYSE: TCO) today reported strong financial results for the first quarter of 2007.
 Net Income allocable to common shareholders per diluted common share for the quarter ended March 31, 2007 was $0.19, an increase of $0.09 from $0.10 per diluted common share for the same period last year.
 For the quarter ended March 31, 2007, Funds from Operations (FFO) per diluted share was $0.65, an increase of 8.3 percent from $0.60 for the quarter ended March 31, 2006. FFO per diluted share was up 4.8 percent from Adjusted FFO per share of $0.62 for the quarter ended March 31, 2006, which excludes financing-related charges incurred in the quarter. There were no financing related charges in the first quarter of 2007.
 “These are excellent results,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. “The increase in our FFO was primarily due to favorable rents and recoveries as well as lower interest expense. Our increase was achieved despite a significant reduction in lease cancellation revenue and land sale gains compared to the first quarter of last year.”

Strong Operating Statistics
 Taubman’s shopping centers were 92.1 percent leased on March 31, 2007, up 1.2 percent from 90.9 percent on March 31, 2006. Occupancy was 89.7 percent on March 31, 2007, up 1.4 percent from 88.3 percent on March 31, 2006. “Leasing continues to be very strong,” said Mr. Taubman. “In addition, we continue to experience modest levels of store closings and historically low levels of bankruptcies.”

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Taubman Centers/2

 Tenant sales per square foot increased 8.9 percent over the first quarter of 2006. “We are delighted with these sales results,” said Mr. Taubman. “We have now had strong quarterly increases for four years. Clearly the consumer remains confident.”

Ownership Increased in The Pier Shops at Caesars  
In April, Taubman increased its ownership in The Pier Shops at Caesars (Atlantic City, N.J.) to a 77.5 percent controlling interest and placed a $135 million loan on the property. The remaining 22.5 percent interest continues to be held by Gordon Group Holdings of Greenwich, Conn., the developer of the project. Taubman assumed management and leasing responsibilities for the center in January 2007.
 At closing, Taubman made a $24.5 million equity investment in the center, bringing its total equity investment to $28.5 million. Taubman will be entitled to a 7 percent cumulative preferred return on its $133.1 million total investment, including its $104.6 million share of debt. The property is projected to yield a 7 percent return in the next two to three years.
The new $135 million loan on the property is a 10-year, non-recourse, interest-only loan and bears interest at an all-in rate of approximately 6.1 percent. The loan proceeds were used to repay the $88.1 million balance on the construction loan on the center and fund remaining construction costs and tenant allowances.
“From day one, we’ve wanted to own as much of this innovative shopping center as possible,” said Mr. Taubman. “We are pleased to now have full control of the center, which is well leased with strong retail sales. We believe that The Pier Shops at Caesars has a terrific future that is very synergistic with our portfolio.”
The Pier Shops at Caesars, which opened in June 2006, features many of the world’s most sought after brands with 81 stores and restaurants now open of about 100 in total.   The center’s retail lineup includes such names as Gucci, Coach, Louis Vuitton, Bottega Veneta, Salvatore Ferragamo, Tiffany & Co., Apple, Burberry, A/X Armani Exchange and Scoop NYC . Its seven unique restaurants by some of America’s great restaurateurs include Stephen Starr’s Buddakan and Continental; Patrick Lyon’s Game On, Sonsie , and The Trinity; Souzai Sushi & Sak e and Phillips Seafood .

Guidance Ranges Maintained
The company is maintaining its guidance on 2007 FFO per diluted share in a range of $2.77 to $2.82. The company anticipates its 2007 Net Income allocable to common shareholders will be in the range of $0.70 to $0.88 per common share.

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Taubman Centers/3

Supplemental Investor Information Available
 The company provides supplemental investor information along with its earnings announcements, available online at ww w .taubman.com under “Investor Relations.” This includes the following:
·  	Income Statement	
·  	Earnings Reconciliations	
·  	Changes in Funds from Operations and Earnings Per Share	
·  	Components of Other Income, Other Operating Expense, and Gains on Land Sales and Interest Income	
·  	Recoveries Ratio Analysis	
·  	Balance Sheets	
·  	Debt Summary	
·  	Other Debt and Equity Information	
·  	Construction	
·  	Capital Spending	
·  	Operational Statistics	
·  	Owned Centers	
·  	Major Tenants in Owned Portfolio	
·  	Anchors in Owned Portfolio	

Investor Conference Call
 The company will host a conference call at 9:00 a.m. (EDT) on April 20 to discuss these results, its future developments, The Pier Shops at Caesars acquisition, and the company’s outlook for 2007. The conference call will be simulcast at www.taubman.com under “Investor Relations” as well as www.fulldisclosure.com and www.streetevents.com . An online replay will follow shortly after the call and continue for 90 days. In addition, the conference call will be available as a podcast at www.reitcafe.com .
Taubman Centers, Inc., a real estate investment trust, owns, develops, acquires and operates regional shopping centers nationally. Taubman Centers currently owns and/or manages 23 urban and suburban regional and super regional shopping centers in 11 states with an industry-leading sales productivity averaging well over $500 per square foot. In addition, The Mall at Partridge Creek (Clinton Township, Mich.) is under construction and will open October 18, 2007. Taubman Centers is headquartered in Bloomfield Hills, Mich.

This press release contains forward-looking statements within the meaning of the Securities Act of 1933 as amended. These statements reflect management’s current views with respect to future events and financial performance. Actual results may differ materially from those expected because of various risks and uncertainties, including, but not limited to changes in general economic and real estate conditions, changes in the interest rate environment and 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 March 31, 2007 and 2006	 	 	
(in thousands of dollars, except as indicated)	 	 	 	 	 	
 	 	 	 	 	 	 	 	
	 	 	Three Months Ended  	 	
 	 	 	2007	 	 	2006	 	
 	 	 	 	 	 	 	 	
Income before minority and preferred interests (1)	 	 	26,550	 	 	21,408	 	
Minority share of consolidated joint ventures (2)	 	 	(1,913	)	 	(1,705	)	
Distributions less than minority share of income of consolidated joint ventures	 	 	608	 	 	1,244	 	
Minority share of income of TRG (2)	 	 	(7,741	)	 	(5,717	)	
Distributions in excess of minority share of income of TRG	 	 	(2,833	)	 	(3,181	)	
TRG preferred distributions	 	 	(615	)	 	(615	)	
Net income	 	 	14,056	 	 	11,434	 	
Preferred dividends	 	 	(3,658	)	 	(6,003	)	
Net income allocable to common shareowners	 	 	10,398	 	 	5,431	 	
Net income per common share - basic and diluted	 	 	0.19	 	 	0.10	 	
Beneficial interest in EBITDA - consolidated businesses (3)	 	 	71,763	 	 	72,703	 	
Beneficial interest in EBITDA   - unconsolidated joint ventures (3)	 	 	21,884	 	 	22,368	 	
Funds from Operations (3)	 	 	53,919	 	 	49,120	 	
Funds from Operations allocable to TCO (3)	 	 	35,527	 	 	31,582	 	
Funds from Operations per common share - basic (3)	 	 	0.67	 	 	0.61	 	
Funds from Operations per common share - diluted (3)	 	 	0.65	 	 	0.60	 	
Weighted average number of common shares outstanding-basic	 	 	53,423,628	 	 	52,128,022	 	
Weighted average number of common shares outstanding -diluted	 	 	54,076,259	 	 	52,350,986	 	
Common shares outstanding at end of period	 	 	53,602,344	 	 	52,774,536	 	
Weighted average units - Operating Partnership - basic	 	 	81,079,570	 	 	81,076,361	 	
Weighted average units - Operating Partnership - diluted	 	 	82,603,463	 	 	82,170,587	 	
Units outstanding at end of period - Operating Partnership	 	 	81,079,641	 	 	81,076,642	 	
Ownership percentage of the Operating Partnership at end of period	 	 	66.1	%	 	65.1	%	
Number of owned shopping centers at end of period	 	 	22	 	 	21	 	
 	 	 	 	 	 	 	 	
Operating Statistics (4) :	 	 	 	 	 	 	 	
Mall tenant sales	 	 	1,022,341	 	 	927,139	 	
Ending occupancy	 	 	89.7	%	 	88.3	%	
Ending occupancy - comparable (5)	 	 	89.6	%	 	88.2	%	
Average occupancy	 	 	89.8	%	 	88.4	%	
Average occupancy - comparable (5)	 	 	89.7	%	 	88.2	%	
Leased space at end of period	 	 	92.1	%	 	90.9	%	
Leased space at end of period - comparable (5)	 	 	92.0	%	 	90.8	%	
Mall tenant occupancy costs as a percentage of tenant sales-consolidated businesses	 	 	15.4	%	 	15.7	%	
Mall tenant occupancy costs as a percentage of tenant sales-unconsolidated joint ventures	 	 	12.9	%	 	13.8	%	
Rent per square foot - consolidated businesses (5)	 	 	43.88	 	 	42.84	 	
Rent per square foot - unconsolidated joint ventures (5)	 	 	41.36	 	 	41.80	 	

 

Taubman Centers/5

(1)	Income before minority and preferred interests for the three months ended March 31, 2006 includes a $2.1 million charge representing the write-off of financing costs related to the pay-off of the loans on The Shops at Willow Bend prior to their maturity dates. No similar charges were incurred in 2007.	
 	 	
(2)	Because the net equity balances of the Operating Partnership and the outside partners in certain consolidated joint ventures are less than zero, the income allocated to the minority and outside partners during the three months ended March 31, 2007 and 2006 is equal to their share of distributions. The net equity of these minority partners is less than zero due to accumulated distributions in excess of net income and not as a result of operating losses.	
 	 	
(3)	Beneficial Interest in EBITDA represents the Operating Partnership’s share of the earnings before interest and depreciation and amortization of its consolidated and unconsolidated businesses. The Company believes Beneficial Interest in EBITDA provides a useful indicator of operating performance, as it is customary in the real estate and shopping center business to evaluate the performance of properties on a basis unaffected by capital structure.	
 	 	
 	The National Association of Real Estate Investment Trusts (NAREIT) defines Funds from Operations (FFO) as net income (loss) (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) from extraordinary items and sales of properties, plus real estate related depreciation and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO is a useful supplemental measure of operating performance for REITs. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, the Company and most industry investors and analysts have considered presentations of operating results that exclude historical cost depreciation to be useful in evaluating the operating performance of REITs. FFO is primarily used by the Company in measuring performance and in formulating corporate goals and compensation.	
 	 	
 	These non-GAAP measures as presented by the Company are not necessarily comparable to similarly titled measures used by other REITs due to the fact that not all REITs use common definitions. None of these non-GAAP measures should be considered alternatives to net income as an indicator of the Company's operating performance, and they do not represent cash flows from operating, investing, or financing activities as defined by GAAP.	
 	 	
(4)	All operating statistics other than the number of owned properties at end of period exclude The Pier Shops at Caesars, which opened in late June 2006. In April 2007, the Company increased its ownership in The Pier Shops at Caesars to 77.5%	
 	 	
(5)	Statistics exclude Waterside Shops at Pelican Bay (with the exception of sales statistics, which include Waterside Shops at Pelican Bay). The 2006 statistics have been restated to include comparable centers to 2007.	

Taubman Centers/6

TAUBMAN CENTERS, INC.	 	 	 	 	 	  	 	 	 	
Table 2 - Income Statement	 	 	 	 	 	  	 	 	 	
For the Three Months Ended March 31, 2007 and 2006   	 	
(in thousands of dollars)	 	 	 	 	 	  	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	2007	 	 	2006	 	
 	 	 	 	 	 	UNCONSOLIDATED  	 	 	 	 	 	UNCONSOLIDATED	 	
 	 	 	CONSOLIDATED  	 	 	JOINT	 	 	CONSOLIDATED	 	 	JOINT	 	
	 	 	BUSINESSES   	 	 	VENTURES (1)	 	 	BUSINESSES	 	 	VENTURES (1)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
REVENUES:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Minimum rents	 	 	78,655	 	 	38,436	 	 	75,995	 	 	34,534	 	
Percentage rents	 	 	2,308	 	 	1,039	 	 	2,890	 	 	928	 	
Expense recoveries	 	 	50,623	 	 	22,591	 	 	44,893	 	 	18,072	 	
Management, leasing and development services	 	 	4,890	 	 	 	 	 	2,923	 	 	 	 	
Other  	 	 	8,550	 	 	1,762	 	 	11,320	 	 	4,790	 	
  Total revenues	 	 	145,026	 	 	63,828	 	 	138,021	 	 	58,324	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES:	 	 	 	 	 	 	 	 	 	 	 	 	 	
Maintenance, taxes and utilities	 	 	37,919	 	 	17,745	 	 	34,798	 	 	13,382	 	
Other operating	 	 	16,796	 	 	6,401	 	 	16,595	 	 	5,242	 	
Management, leasing and development services	 	 	2,790	 	 	 	 	 	1,518	 	 	 	 	
General and administrative	 	 	7,321	 	 	 	 	 	6,924	 	 	 	 	
Interest expense (2)	 	 	29,694	 	 	17,804	 	 	34,283	 	 	13,242	 	
Depreciation and amortization	 	 	32,533	 	 	10,166	 	 	33,389	 	 	10,182	 	
  Total expenses	 	 	127,053	 	 	52,116	 	 	127,507	 	 	42,048	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on land sales and interest income	 	 	391	 	 	447	 	 	2,423	 	 	252	 	
 	 	 	18,364	 	 	12,159	 	 	12,937	 	 	16,528	 	
Equity in income of Unconsolidated Joint Ventures	 	 	8,186	 	 	 	 	 	8,471	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before minority and preferred interests	 	 	26,550	 	 	 	 	 	21,408	 	 	 	 	
Minority and preferred interests:	 	 	 	 	 	 	 	 	 	 	 	 	 	
TRG preferred distributions  	 	 	(615	)	 	 	 	 	(615	)	 	 	 	
Minority share of consolidated joint ventures  	 	 	(1,913	)	 	 	 	 	(1,705	)	 	 	 	
Distributions less than minority share of income of consolidated joint  	 	 	 	 	 	 	 	 	 	 	 	 	 	
  ventures  	 	 	608	 	 	 	 	 	1,244	 	 	 	 	
Minority share of income of TRG  	 	 	(7,741	)	 	 	 	 	(5,717	)	 	 	 	
Distributions in excess of minority share of income of TRG  	 	 	(2,833	)	 	 	 	 	(3,181	)	 	 	 	
Net income	 	 	14,056	 	 	 	 	 	11,434	 	 	 	 	
Preferred dividends	 	 	(3,658	)	 	 	 	 	(6,003	)	 	 	 	
Net income allocable to common shareowners	 	 	10,398	 	 	 	 	 	5,431	 	 	 	 	

SUPPLEMENTAL INFORMATION:	 	 	 	 	 	 	 	 	 	 	 	 	 	
EBITDA - 100%  	 	 	80,591	 	 	40,129	 	 	80,609	 	 	39,952	 	
EBITDA - outside partners' share  	 	 	(8,828	)	 	(18,245	)	 	(7,906	)	 	(17,584	)	
Beneficial interest in EBITDA  	 	 	71,763	 	 	21,884	 	 	72,703	 	 	22,368	 	
Beneficial interest expense  	 	 	(26,492	)	 	(8,302	)	 	(31,206	)	 	(7,556	)	
Non-real estate depreciation  	 	 	(661	)	 	 	 	 	(571	)	 	 	 	
Preferred dividends and distributions  	 	 	(4,273	)	 	 	 	 	(6,618	)	 	 	 	
Funds from Operations contribution  	 	 	40,337	 	 	13,582	 	 	34,308	 	 	14,812	 	

Net straightline adjustments to rental revenue, recoveries,  	 	 	 	 	 	 	 	 	 	 	 	 	 	
  and ground rent expense at TRG %  	 	 	371	 	 	104	 	 	(129	)	 	(75	)	
 
(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)	Interest expense for the Consolidated Businesses for the three months ended March 31, 2006 includes a $2.1 million charge representing the write-off of financing costs related to the pay-off of the loans on The Shops at Willow Bend prior to their maturity date.	

 

Taubman Centers/7

TAUBMAN CENTERS, INC.	 	 	 	 	 	
Table 3 - Reconciliation of Net Income Allocable to Common Shareowners to Funds from	 	 	 	 	 	
  Operations and Adjusted Funds from Operations	 	 	 	 	 	
For the Periods Ended March 31, 2007 and 2006	 	
(in thousands of dollars; amounts allocable to TCO may not recalculate due to rounding)	 	 	 	 	 	
 	 	 	 	 	 	
 	 	  Three Months Ended  	 	
 	 	 	2007	 	 	2006	 	
 	 	 	 	 	 	 	 	
Net income allocable to common shareowners	 	 	10,398	 	 	5,431	 	
 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization:	 	 	 	 	 	 	 	
Consolidated businesses at 100%  	 	 	32,533	 	 	33,389	 	
Minority partners in consolidated joint ventures  	 	 	(3,713	)	 	(3,124	)	
Share of unconsolidated joint ventures  	 	 	5,396	 	 	6,341	 	
Non-real estate depreciation  	 	 	(661	)	 	(571	)	
 	 	 	 	 	 	 	 	
Add (less) minority interests:	 	 	 	 	 	 	 	
Minority share of income of TRG  	 	 	7,741	 	 	5,717	 	
Distributions in excess of minority share of income of TRG  	 	 	2,833	 	 	3,181	 	
Distributions less than minority share of income of  	 	 	 	 	 	 	 	
  consolidated joint ventures  	 	 	(608	)	 	(1,244	)	
 	 	 	 	 	 	 	 	
Funds from Operations	 	 	53,919	 	 	49,120	 	
 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	 	65.9	%	 	64.3	%	
 	 	 	 	 	 	 	 	
Funds from Operations allocable to TCO	 	 	35,527	 	 	31,582	 	
 	 	 	 	 	 	 	 	
Funds from Operations	 	 	53,919	 	 	49,120	 	
 	 	 	 	 	 	 	 	
Write-off of financing costs	 	 	 	 	 	2,065	 	
 	 	 	 	 	 	 	 	
Adjusted Funds from Operations (1)	 	 	53,919	 	 	51,185	 	
 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	 	65.9	%	 	64.3	%	
 	 	 	 	 	 	 	 	
Adjusted Funds from Operations allocable to TCO (1)	 	 	35,527	 	 	32,909	 	
 
(1)	Adjusted FFO excludes a $2.1 million ($0.025 per share) charge during the first quarter of 2006 in connection with the write-off of financing costs related to the pay-off of the loans on The Shops at Willow Bend prior to their maturity date. The Company discloses this Adjusted FFO due to the significance and infrequent nature of the charge. Given the significance of the charge, 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/8

TAUBMAN CENTERS, INC.	 	 	 	 	 	
Table 4 - Reconciliation of Net Income to Beneficial Interest in EBITDA	 	 	 	 	 	
For the Periods Ended March 31, 2007 and 2006	 	
(in thousands of dollars; amounts allocable to TCO may not recalculate due to rounding)	 	 	 	 	 	
 	 	 	 	 	 	
 	 	  Three Months Ended  	 	
 	 	 	2007	 	 	2006	 	
 	 	 	 	 	 	 	 	
Net income	 	 	14,056	 	 	11,434	 	
 	 	 	 	 	 	 	 	
Add (less) depreciation and amortization:	 	 	 	 	 	 	 	
Consolidated businesses at 100%  	 	 	32,533	 	 	33,389	 	
Minority partners in consolidated joint ventures  	 	 	(3,713	)	 	(3,124	)	
Share of unconsolidated joint ventures  	 	 	5,396	 	 	6,341	 	
 	 	 	 	 	 	 	 	
Add (less) preferred interests and interest expense:	 	 	 	 	 	 	 	
Preferred distributions  	 	 	615	 	 	615	 	
Interest expense:  	 	 	 	 	 	 	 	
  Consolidated businesses at 100%	 	 	29,694	 	 	34,283	 	
  Minority partners in consolidated joint ventures	 	 	(3,202	)	 	(3,077	)	
  Share of unconsolidated joint ventures	 	 	8,302	 	 	7,556	 	
 	 	 	 	 	 	 	 	
Add (less) minority interests:	 	 	 	 	 	 	 	
Minority share of income of TRG  	 	 	7,741	 	 	5,717	 	
Distributions in excess of minority share of income of TRG  	 	 	2,833	 	 	3,181	 	
Distributions less than minority share of income of  	 	 	 	 	 	 	 	
  consolidated joint ventures  	 	 	(608	)	 	(1,244	)	
 	 	 	 	 	 	 	 	
Beneficial Interest in EBITDA	 	 	93,647	 	 	95,071	 	
 	 	 	 	 	 	 	 	
TCO's average ownership percentage of TRG	 	 	65.9	%	 	64.3	%	
 	 	 	 	 	 	 	 	
Beneficial Interest in EBITDA allocable to TCO	 	 	61,704	 	 	61,126	 	

Taubman Centers/9

TAUBMAN CENTERS, INC.	 	 	 	 	 	
Table 5 - Balance Sheets	 	 	 	 	 	
As of March 31, 2007 and December 31, 2006	 	
(in thousands of dollars)	 	 	 	 	 	
 	 	 	 	 	 	
 	 	  As of   	 	
 	 	  March 31, 2007  	 	  December 31, 2006	 	
Consolidated Balance Sheet of Taubman Centers, Inc.:	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
Assets:	 	 	 	 	 	 	 	
  Properties	 	 	3,427,996	 	 	3,398,122	 	
  Accumulated depreciation and amortization	 	 	(844,080	)	 	(821,384	)	
 	 	 	2,583,916	 	 	2,576,738	 	
  Investment in Unconsolidated Joint Ventures	 	 	87,254	 	 	86,493	 	
  Cash and cash equivalents	 	 	25,517	 	 	26,282	 	
  Accounts and notes receivable, net	 	 	38,052	 	 	36,650	 	
  Accounts and notes receivable from related parties	 	 	2,275	 	 	2,444	 	
  Deferred charges and other assets	 	 	96,831	 	 	98,015	 	
 	 	 	2,833,845	 	 	2,826,622	 	
 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	
  Notes payable	 	 	2,365,374	 	 	2,319,538	 	
  Accounts payable and accrued liabilities	 	 	213,511	 	 	247,432	 	
  Dividends and distributions payable	 	 	20,101	 	 	19,849	 	
  Distributions in excess of investments in and net income of	 	 	 	 	 	 	 	
    Unconsolidated Joint Ventures	 	 	104,792	 	 	101,944	 	
 	 	 	2,703,778	 	 	2,688,763	 	
 	 	 	 	 	 	 	 	
Preferred Equity of TRG	 	 	29,217	 	 	29,217	 	
 	 	 	 	 	 	 	 	
Shareowners' Equity:	 	 	 	 	 	 	 	
  Series B Non-Participating Convertible Preferred Stock	 	 	27	 	 	28	 	
  Series G Cumulative Redeemable Preferred Stock	 	 	 	 	 	 	 	
  Series H Cumulative Redeemable Preferred Stock	 	 	 	 	 	 	 	
  Common Stock	 	 	536	 	 	529	 	
  Additional paid-in capital	 	 	636,960	 	 	635,304	 	
  Accumulated other comprehensive income (loss)	 	 	(9,220	)	 	(9,560	)	
  Dividends in excess of net income	 	 	(527,453	)	 	(517,659	)	
 	 	 	100,850	 	 	108,642	 	
 	 	 	2,833,845	 	 	2,826,622	 	
 	 	 	 	 	 	 	 	
Combined Balance Sheet of Unconsolidated Joint Ventures:  	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	
Assets:  	 	 	 	 	 	 	 	
  Properties	 	 	1,165,885	 	 	1,157,872	 	
  Accumulated depreciation and amortization	 	 	(328,953	)	 	(320,256	)	
 	 	 	836,932	 	 	837,616	 	
  Cash and cash equivalents	 	 	28,521	 	 	35,504	 	
  Accounts and notes receivable	 	 	25,290	 	 	26,769	 	
  Deferred charges and other assets	 	 	22,058	 	 	23,417	 	
 	 	 	912,801	 	 	923,306	 	
 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	
  Notes payable	 	 	1,096,131	 	 	1,097,347	 	
  Accounts payable and other liabilities	 	 	77,985	 	 	84,177	 	
 	 	 	1,174,116	 	 	1,181,524	 	
 	 	 	 	 	 	 	 	
Accumulated Deficiency in Assets:	 	 	 	 	 	 	 	
  Accumulated deficiency in assets - TRG	 	 	(162,491	)	 	(161,666	)	
  Accumulated deficiency in assets - Joint Venture Partners	 	 	(96,100	)	 	(93,843	)	
  Accumulated other comprehensive income (loss) - TRG	 	 	(2,085	)	 	(2,112	)	
  Accumulated other comprehensive income (loss) - Joint Venture Partners	 	 	(639	)	 	(597	)	
 	 	 	(261,315	)	 	(258,218	)	
 	 	 	912,801	 	 	923,306	 	

Taubman Centers/10

TAUBMAN CENTERS, INC.	 	  	 	 	 	
Table 6 - 2007 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, 2007	 	
 	 	 	 	 	 	 	 	
Funds from Operations per common share	 	 	2.77	 	 	2.82	 	
 	 	 	 	 	 	 	 	
Real estate depreciation - TRG	 	 	(1.72	)	 	(1.65	)	
 	 	 	 	 	 	 	 	
Depreciation of TCO's additional basis in TRG	 	 	(0.12	)	 	(0.12	)	
 	 	 	 	 	 	 	 	
Distributions in excess of earnings allocable to minority interest	 	 	(0.23	)	 	(0.17	)	
 	 	 	 	 	 	 	 	
Net income allocable to common shareholders, per common share	 	 	0.70	 	 	0.88