Taubman Centers Issues Second Quarter Results - Net Operating Income (NOI) Excluding Lease Cancellation Income Up 3.9%

- Funds From Operations, Net Income, Average Rent Per Square Foot, Occupancy, and Leased Space Up

- City Creek Financing Complete

- Saks Announced as International Market Place Anchor, Hawaii

BLOOMFIELD HILLS, Mich., July 25, 2013 /PRNewswire/ -- Taubman Centers, Inc. (NYSE:  TCO) today reported financial results for the second quarter of 2013.


June 30, 2013

Three Months
Ended

June 30, 2012

Three Months
Ended

June 30, 2013

Six Months
Ended

June 30, 2012

Six Months
Ended

Net income allocable to common
shareholders (EPS) per diluted share 

$0.28

$0.27

 

$0.71

$0.57

Funds from Operations (FFO) per diluted share

$0.75

$0.73

$1.65

$1.47

Growth rate

2.7%


12.2%


 

(Logo: http://photos.prnewswire.com/prnh/20080428/CLM116LOGO )

"Our results this quarter are in line with our expectations," said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. "They were positively impacted by increased rents, a result of higher occupancy and rent per square foot. We also saw contributions from two centers where we recently acquired additional interests: International Plaza (Tampa, Fla.) and Waterside Shops (Naples, Fla.)."

Rents, Occupancy, and Leased Space Up

Average rent per square foot for the second quarter of 2013 was $48.98, up 4.8 percent from $46.73 in the comparable period last year.

Ending occupancy in all centers was 90.7 percent on June 30, 2013, up 0.6 percent from 90.1 percent on June 30, 2012. Leased space in all centers was 92.6 percent on June 30, 2013, up 0.3 percent from 92.3 percent on June 30, 2012. 

Sales Per Square Foot and NOI

Mall tenant sales per square foot were flat for the quarter. The company's 12-month trailing mall tenant sales per square foot remains at $698, an increase of 3.9 percent from the 12-months ended June 30, 2012. "Shoes and women's specialty, which includes many of the luxury concepts, were among the strongest categories," said Mr. Taubman. "However, electronics was very weak."

For the quarter, NOI excluding lease cancellation income was up 3.9 percent.

Taubman Prestige Outlets Chesterfield to Open August 2, 2013

The grand opening of Taubman Prestige Outlets Chesterfield (Chesterfield, Mo.) is scheduled for 10:00 a.m. on Friday, August 2, the start of Missouri's tax-free weekend. The center will feature numerous outlet stores new to the St. Louis market including Polo Ralph Lauren Factory Store, Restoration Hardware, Abercrombie & Fitch, abercrombie kids, 2b bebe Outlet, Lucky Brand Outlet, Brooks Brothers Factory Store and Steve Madden.

Saks Announced as International Market Place Anchor

In June, the company announced that Saks Fifth Avenue will anchor the International Market Place (Waikiki, Honolulu, Hawaii) as part of the planned revitalization of the iconic shopping center. The company anticipates completing due diligence and being in a position to move forward with the project in the near future.

City Creek Financing Completed

In July, the company completed an $85 million, 10-year, non-recourse, secured financing on City Creek Center (Salt Lake City, Utah). The loan bears interest at an all-in fixed rate of 4.43%. Proceeds, which exceeded the company's $76 million investment, were used to reduce borrowings under the company's revolving lines of credit.

2013 Guidance

The company is maintaining its 2013 FFO guidance range of $3.57 to $3.67 per diluted share. 2013 EPS is expected to be in the range of $1.66 to $1.79. This guidance includes the negative 6.5 cent impact of the company's March 2013 Series K Preferred Stock offering.

Supplemental Investor Information Available

The company provides supplemental investor information along with its earnings announcements, available online at www.taubman.com under "Investing." 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
  • Construction
  • Acquisitions
  • 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 Daylight Time on Friday, July 26 to discuss these results, business conditions and the company's outlook for the remainder of 2013. The conference call will be simulcast at www.taubman.com under "Investing" 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 an S&P MidCap 400 Real Estate Investment Trust engaged in the ownership, management and/or leasing of 27 regional, super-regional and outlet shopping centers in the U.S. and Asia. Taubman's U.S.-owned properties are the most productive in the publicly held U.S. regional mall industry. Taubman is currently developing Taubman Prestige Outlets Chesterfield in Chesterfield, Mo.; The Mall at University Town Center in Sarasota, Fla.; The Mall of San Juan in San Juan, Puerto Rico; and shopping malls in Xi'an and Zhengzhou, China and Hanam, South Korea.  Taubman Centers is headquartered in Bloomfield Hills, Mich. and Taubman Asia, the platform for Taubman Centers' expansion into China and South Korea, is headquartered in Hong Kong.  Founded in 1950, Taubman has more than 60 years of experience in the shopping center industry.  For more information about Taubman, visit www.taubman.com.

For ease of use, references in this press release to "Taubman Centers," "company," "Taubman" or an operating platform mean Taubman Centers, Inc. and/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 or the named operating platform.

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. The forward-looking statements included in this release are made as of the date hereof. Except as required by law, we assume no obligation to update these forward-looking statements, even if new information becomes available in the future. Actual results may differ materially from those expected because of various risks and uncertainties.  You should review the company's filings with the Securities and Exchange Commission, including "Risk Factors" in its most recent Annual Report on Form 10-K and subsequent quarterly reports, for a discussion of such risks and uncertainties.

 

TAUBMAN CENTERS, INC.









Table 1 - Summary of Results









For the Periods Ended June 30, 2013 and 2012









(in thousands of dollars, except as indicated)



















Three Months Ended 


Year to Date



2013


2012


2013


2012











Net income

33,603


31,448


79,959


63,625


Noncontrolling share of income of consolidated joint ventures

(1,773)


(2,875)


(4,554)


(4,709)


Noncontrolling share of income of TRG 

(7,788)


(8,138)


(19,577)


(16,889)


Preferred stock dividends 

(5,764)


(3,659)


(9,364)


(7,317)


Distributions to participating securities of TRG

(436)


(403)


(878)


(806)


Net income attributable to Taubman Centers, Inc. common shareowners

17,842


16,373


45,586


33,904


Net income per common share - basic 

0.28


0.28


0.72


0.58


Net income per common share - diluted

0.28


0.27


0.71


0.57


Beneficial interest in EBITDA - Combined (1)

114,627


109,047


243,110


220,137


Funds from Operations (1)

68,209


63,520


149,722


128,672


Funds from Operations attributable to TCO (1)

48,750


43,815


106,954


88,605


Funds from Operations per common share - basic (1)

0.76


0.75


1.68


1.51


Funds from Operations per common share - diluted (1)

0.75


0.73


1.65


1.47


Weighted average number of common shares outstanding - basic

63,786,083


58,789,737


63,602,025


58,518,442


Weighted average number of common shares outstanding - diluted

64,842,511


60,201,385


64,707,684


60,054,622


Common shares outstanding at end of period

63,816,192


58,812,588






Weighted average units - Operating Partnership - basic

89,013,712


85,229,124


88,887,990


84,978,006


Weighted average units - Operating Partnership - diluted

90,941,402


87,512,034


90,864,911


87,385,448


Units outstanding at end of period - Operating Partnership

89,013,714


85,244,196






Ownership percentage of the Operating Partnership at end of period

71.7%


69.0%






Number of owned shopping centers at end of period

24


24


24


24











Operating Statistics:









Net Operating Income excluding lease cancellation income - growth % (2)

3.9%




4.5%




Mall tenant sales - all centers (3)

1,406,196


1,396,440


2,860,984


2,750,258


Mall tenant sales - comparable (2)(3)

1,371,556


1,366,654


2,792,601


2,714,285


Ending occupancy - all centers

90.7%


90.1%


90.7%


90.1%


Ending occupancy - comparable (2)

90.6%


90.3%


90.6%


90.3%


Average occupancy - all centers 

90.7%


89.9%


90.6%


89.8%


Average occupancy - comparable (2)

90.6%


90.1%


90.5%


90.0%


Leased space - all centers

92.6%


92.3%


92.6%


92.3%


Leased space - comparable (2)

92.5%


92.3%


92.5%


92.3%


All centers:









Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (3)

13.7%


13.1%


13.7%


13.2%


Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (3)

13.6%


12.8%


12.7%


12.4%


Mall tenant occupancy costs as a percentage of tenant sales - Combined (3)

13.6%


13.0%


13.4%


12.9%


Comparable centers:









Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (2)(3)

13.6%


13.1%


13.7%


13.0%


Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (3)

13.6%


12.6%


12.7%


12.4%


Mall tenant occupancy costs as a percentage of tenant sales - Combined (2)(3)

13.6%


13.0%


13.4%


12.9%


Average rent per square foot - Consolidated Businesses (2)

48.89


47.07


48.49


46.71


Average rent per square foot - Unconsolidated Joint Ventures 

49.20


45.94


48.08


45.13


Average rent per square foot - Combined (2)

48.98


46.73


48.37


46.23






































 

(1)

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 straight-line adjustments of minimum rent) less maintenance, taxes, utilities, promotion, ground rent (including straight-line adjustments), 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 peripheral 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 comparable center NOI growth and lease cancellation income.  Comparable centers are generally defined as centers that were owned and open for the entire current and preceding period presented.




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 (or losses) from extraordinary items and sales of properties and impairment write-downs of depreciable real estate, 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.  The Company believes the disclosure of the adjusted items is similarly useful to investors and others to understand management's view on comparability of such measures between periods. 




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 the same definitions. These measures should not be considered alternatives to net income or as an indicator of the Company's operating performance. Additionally, these measures do not represent cash flows from operating, investing or financing activities as defined by GAAP.





(2)

Statistics exclude non-comparable centers.  The 2012 statistics, other than sales per square foot growth, have been restated to include comparable centers to 2013.





(3)

Based on reports of sales furnished by mall tenants. 

 

 TAUBMAN CENTERS, INC. 









 Table 2 - Income Statement 









 For the Three Months Ended June 30, 2013 and 2012 









 (in thousands of dollars) 























2013


2012





CONSOLIDATED BUSINESSES


 UNCONSOLIDATED JOINT
VENTURES (1) 


CONSOLIDATED BUSINESSES


 UNCONSOLIDATED JOINT
VENTURES (1) 













REVENUES:










Minimum rents

103,233


42,076


98,940


40,570



Percentage rents

1,083


1,429


2,049


1,228



Expense recoveries

65,569


24,600


62,215


23,573



Management, leasing, and development services

1,819




8,559





Other

6,483


1,669


7,702


1,400




Total revenues

178,187


69,774


179,465


66,771













EXPENSES:










Maintenance, taxes, utilities, and promotion

52,762


17,975


48,903


17,505



Other operating

18,492


4,168


19,922


4,258



Management, leasing, and development services

1,119




6,987





General and administrative

12,628




10,043





Interest expense 

32,622


16,994


36,676


15,823



Depreciation and amortization 

38,258


9,187


36,235


9,019




Total expenses

155,881


48,324


158,766


46,605













Nonoperating income

50


(8)


71


(7)





22,356


21,442


20,770


20,159


Income tax expense

(234)




(492)




Equity in income of Unconsolidated Joint Ventures

11,481




11,170















Net income 

33,603




31,448




Net income attributable to noncontrolling interests:










Noncontrolling share of income of consolidated joint ventures 

(1,773)




(2,875)





Noncontrolling share of income of TRG

(7,788)




(8,138)




Distributions to participating securities of TRG

(436)




(403)




Preferred stock dividends

(5,764)




(3,659)




Net income attributable to Taubman Centers, Inc. common shareowners

17,842




16,373


























SUPPLEMENTAL INFORMATION:










EBITDA - 100% 

93,236


47,623


93,681


45,001



EBITDA - outside partners' share 

(5,355)


(20,877)


(9,393)


(20,242)



Beneficial interest in EBITDA

87,881


26,746


84,288


24,759



Beneficial interest expense 

(30,408)


(9,401)


(32,473)


(8,225)



Beneficial income tax expense - TRG and TCO

(234)




(515)





Beneficial income tax expense - TCO

128









Non-real estate depreciation

(739)




(655)





Preferred dividends and distributions 

(5,764)




(3,659)





Funds from Operations contribution

50,864


17,345


46,986


16,534














Net straight-line adjustments to rental revenue, recoveries,










  and ground rent expense at TRG % 

777


122


1,014


115



Green Hills purchase accounting adjustments - minimum rents increase

200




186





Green Hills, El Paseo Village, and Gardens on El Paseo purchase accounting 











adjustments - interest expense reduction

858




858





Waterside Shops purchase accounting adjustments - interest expense reduction



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. 

















 

 TAUBMAN CENTERS, INC. 









 Table 3 - Income Statement 









 For the Six Months Ended June 30, 2013 and 2012 









 (in thousands of dollars) 























2013


2012





CONSOLIDATED BUSINESSES


 UNCONSOLIDATED JOINT
VENTURES (1) 


CONSOLIDATED BUSINESSES


 UNCONSOLIDATED JOINT
VENTURES (1) 













REVENUES:










Minimum rents

205,542


82,147


192,684


79,197



Percentage rents

6,711


3,626


6,452


3,431



Expense recoveries

129,606


48,184


118,692


46,337



Management, leasing, and development services

5,201




17,207





Other

14,384


3,368


13,694


3,116




Total revenues

361,444


137,325


348,729


132,081













EXPENSES:










Maintenance, taxes, utilities, and promotion

99,319


35,186


90,601


33,614



Other operating

34,655


8,271


36,232


7,880



Management, leasing, and development services

3,145




15,509





General and administrative

24,864




18,450





Interest expense 

67,074


33,928


74,203


31,490



Depreciation and amortization 

75,280


19,258


72,669


17,595




Total expenses

304,337


96,643


307,664


90,579













Nonoperating Income

2,287




195


1





59,394


40,682


41,260


41,503


Income tax expense 

(1,262)




(706)




Equity in income of Unconsolidated Joint Ventures 

21,827




23,071















Net income

79,959




63,625




Net income attributable to noncontrolling interests:










Noncontrolling share of income of consolidated joint ventures 

(4,554)




(4,709)





Noncontrolling share of income of TRG

(19,577)




(16,889)




Distributions to participating securities of TRG

(878)




(806)




Preferred stock dividends 

(9,364)




(7,317)




Net income attributable to Taubman Centers, Inc. common shareowners

45,586




33,904


























SUPPLEMENTAL INFORMATION:










EBITDA - 100% 

201,748


93,868


188,132


90,588



EBITDA - outside partners' share 

(11,415)


(41,091)


(17,860)


(40,723)



Beneficial interest in EBITDA

190,333


52,777


170,272


49,865



Beneficial interest expense 

(62,697)


(18,777)


(65,794)


(16,319)



Beneficial income tax expense - TRG and TCO

(1,262)




(726)





Beneficial income tax expense - TCO

161









Non-real estate depreciation

(1,449)




(1,309)





Preferred dividends and distributions

(9,364)




(7,317)





Funds from Operations contribution

115,722


34,000


95,126


33,546














Net straight-line adjustments to rental revenue, recoveries,










  and ground rent expense at TRG % 

1,800


225


1,266


173



Green Hills purchase accounting adjustments - minimum rents increase

404




399





Green Hills, El Paseo Village, and Gardens on El Paseo purchase accounting 











adjustments - interest expense reduction

1,715




1,715





Waterside Shops purchase accounting adjustments - interest expense reduction


525

















(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. 






 

TAUBMAN CENTERS, INC.





















Table 4 - Reconciliation of Net Income Attributable to Taubman Centers, Inc. Common Shareowners to Funds from Operations











 For the Three Months Ended June 30, 2013 and 2012 





















(in thousands of dollars except as noted; may not add or recalculate due to rounding)




































































2013






2012
















Shares 


Per Share




Shares 


Per Share 












Dollars


/Units


/Unit


Dollars


/Units


/Unit































Net income attributable to TCO common shareowners - Basic


17,842


63,786,083


0.28


16,373


58,789,737


0.28































Add impact of share-based compensation


92


1,056,428




134


1,411,648

































Net income attributable to TCO common shareowners - Diluted


17,934


64,842,511


0.28


16,507


60,201,385


0.27































Add depreciation of TCO's additional basis


1,720




0.03


1,721




0.03









Add TCO's additional income tax expense


128




0.00





































Net income attributable to TCO common shareowners,






















excluding step-up depreciation and additional income tax expense

19,782


64,842,511


0.31


18,228


60,201,385


0.30































Add:






















Noncontrolling share of income of TRG 


7,788


25,227,629




8,138


26,439,387












Distributions to participating securities of TRG


436


871,262




403


871,262

































Net income attributable to partnership unitholders 






















and participating securities


28,006


90,941,402


0.31


26,769


87,512,034


0.31































Add (less) depreciation and amortization:






















Consolidated businesses at 100%


38,258




0.42


36,235




0.41










Depreciation of TCO's additional basis


(1,720)




(0.02)


(1,721)




(0.02)










Noncontrolling partners in consolidated joint ventures


(1,368)




(0.02)


(2,338)




(0.03)










Share of Unconsolidated Joint Ventures


5,864




0.06


5,364




0.06










Non-real estate depreciation


(739)




(0.01)


(655)




(0.01)































Less impact of share-based compensation


(92)




(0.00)


(134)




(0.00)































Funds from Operations


68,209


90,941,402


0.75


63,520


87,512,034


0.73































TCO's average ownership percentage of TRG


71.7%






69.0%



































Funds from Operations attributable to TCO,






















excluding additional income tax expense


48,878




0.75


43,815




0.73































Less TCO's additional income tax expense


(128)




(0.00)





































Funds from Operations attributable to TCO


48,750




0.75


43,815




0.73















































































































































































































 

TAUBMAN CENTERS, INC.













Table 5 - Reconciliation of Net Income Attributable to Taubman Centers, Inc. Common Shareowners to Funds from Operations



For the Six Months Ended June 30, 2013 and 2012













(in thousands of dollars except as noted; may not add or recalculate due to rounding)












































2013






2012








Shares 


Per Share




Shares 


Per Share 




Dollars


/Units


/Unit


Dollars


/Units 


/Unit















Net income attributable to TCO common shareowners - Basic


45,586


63,602,025


0.72


33,904


58,518,442


0.58















Add impact of share-based compensation


245


1,105,659




302


1,536,180

















Net income attributable to TCO common shareowners - Diluted


45,831


64,707,684


0.71


34,206


60,054,622


0.57















Add depreciation of TCO's additional basis


3,440




0.05


3,440




0.06

Add TCO's additional income tax expense


161

























Net income attributable to TCO common shareowners,














excluding step-up depreciation and additional income tax expense

49,432


64,707,684


0.76


37,646


60,054,622


0.63















Add:














Noncontrolling share of income of TRG 


19,577


25,285,965




16,889


26,459,564




Distributions to participating securities of TRG


878


871,262




806


871,262

















Net income attributable to partnership unitholders 














and participating securities


69,887


90,864,911


0.77


55,341


87,385,448


0.63















Add (less) depreciation and amortization:














Consolidated businesses at 100% 


75,280




0.83


72,669




0.83


Depreciation of TCO's additional basis


(3,440)




(0.04)


(3,440)




(0.04)


Noncontrolling partners in consolidated joint ventures


(2,484)




(0.03)


(4,762)




(0.05)


Share of Unconsolidated Joint Ventures


12,173




0.13


10,475




0.12


Non-real estate depreciation


(1,449)




(0.02)


(1,309)




(0.01)















Less impact of share-based compensation


(245)




(0.00)


(302)




(0.00)















Funds from Operations


149,722


90,864,911


1.65


128,672


87,385,448


1.47















TCO's average ownership percentage of TRG


71.6%






68.9%



















Funds from Operations attributable to TCO,














excluding additional income tax expense


107,115




1.65


88,605




1.47















Less TCO's additional income tax expense


(161)




(0.00)





















Funds from Operations attributable to TCO


106,954




1.65


88,605




1.47





























 

TAUBMAN CENTERS, INC.









Table 6 - Reconciliation of Net Income to Beneficial Interest in EBITDA







For the Periods Ended June 30, 2013 and 2012









(in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding)





















Three Months Ended


Year to Date





2013


2012


2013


2012












Net income


33,603


31,448


79,959


63,625












Add (less) depreciation and amortization:










Consolidated businesses at 100%


38,258


36,235


75,280


72,669


Noncontrolling partners in consolidated joint ventures


(1,368)


(2,338)


(2,484)


(4,762)


Share of Unconsolidated Joint Ventures


5,864


5,364


12,173


10,475












Add (less) interest expense and income tax expense:










Interest expense:











Consolidated businesses at 100%


32,622


36,676


67,074


74,203



Noncontrolling partners in consolidated joint ventures


(2,214)


(4,203)


(4,377)


(8,409)



Share of Unconsolidated Joint Ventures


9,401


8,225


18,777


16,319


Share of income tax expense


234


515


1,262


726












Less noncontrolling share of income of consolidated joint ventures


(1,773)


(2,875)


(4,554)


(4,709)












Beneficial Interest in EBITDA


114,627


109,047


243,110


220,137












TCO's average ownership percentage of TRG


71.7%


69.0%


71.6%


68.9%












Beneficial Interest in EBITDA attributable to TCO


82,140


75,219


173,936


151,593












  

TAUBMAN CENTERS, INC.



















Table 7 - Reconciliation of Net Income to Net Operating Income (NOI)



















For the Periods Ended June 30, 2013 and 2012



















(in thousands of dollars)











































Three Months Ended


Three Months Ended


Year to Date


Year to Date







2013


2012


2012


2011


2013


2012


2012


2011

























Net income


33,603


31,448


31,448


20,290


79,959


63,625


63,625


44,734

























Add (less) depreciation and amortization:




















Consolidated businesses at 100% - continuing operations

38,258


36,235


36,235


34,424


75,280


72,669


72,669


66,449





Consolidated businesses at 100% - discontinued operations







1,905








3,669





Noncontrolling partners in consolidated joint ventures

(1,368)


(2,338)


(2,338)


(3,142)


(2,484)


(4,762)


(4,762)


(5,707)





Share of Unconsolidated Joint Ventures

5,864


5,364


5,364


5,378


12,173


10,475


10,475


10,864

























Add (less) interest expense and income tax expense:




















Interest expense:





















Consolidated businesses at 100% - continuing operations

32,622


36,676


36,676


29,691


67,074


74,203


74,203


59,465






Consolidated businesses at 100% - discontinued operations







5,779








11,020






Noncontrolling partners in consolidated joint ventures

(2,214)


(4,203)


(4,203)


(2,743)


(4,377)


(8,409)


(8,409)


(5,642)






Share of Unconsolidated Joint Ventures

9,401


8,225


8,225


7,247


18,777


16,319


16,319


15,324





Share of income tax expense (benefit)

234


515


515


(5)


1,262


726


726


205

























Less noncontrolling share of income of consolidated joint ventures

(1,773)


(2,875)


(2,875)


(2,785)


(4,554)


(4,709)


(4,709)


(6,170)

























Add EBITDA attributable to outside partners:




















EBITDA attributable to noncontrolling partners in consolidated joint ventures

5,355


9,393


9,393


8,670


11,415


17,860


17,860


17,519





EBITDA attributable to outside partners in Unconsolidated Joint Ventures

20,877


20,242


20,242


19,487


41,091


40,723


40,723


39,198

























EBITDA at 100%

140,859


138,682


138,682


124,196


295,616


278,720


278,720


250,928

























Add (less) items excluded from shopping center NOI:




















General and administrative expenses

12,628


10,043


10,043


8,005


24,864


18,450


18,450


15,289





Management, leasing, and development services, net

(700)


(1,572)


(1,572)


(2,157)


(2,056)


(1,698)


(1,698)


(5,737)





Gains on sales of peripheral land







(519)


(863)






(519)





Interest income

(42)


(64)


(64)


(170)


(101)


(196)


(196)


(303)





Gain on sale of marketable securities









(1,323)











Straight-line of rents

(1,158)


(1,831)


(1,831)


(334)


(2,614)


(2,480)


(2,480)


(543)





Non-center specific operating expenses and other

6,935


8,520


8,520


7,547


10,786


15,416


15,416


14,812

























NOI - all centers at 100%

158,522


153,778


153,778


136,568


324,309


308,212


308,212


273,927

























Less - NOI of non-comparable centers

(2,399)

(1)

(3,006)

(1)

(7,032)

(2)

(1,057)

(3)

(5,525)

(1)

(3,355)

(1)

(12,771)

(2)

(1,876)

(3)
























NOI at 100% - comparable centers

156,123


150,772


146,746


135,511


318,784


304,857


295,441


272,051

























NOI - growth %

3.5%




8.3%




4.6%




8.6%
















































NOI at 100% - comparable centers

156,123


150,772


146,746


135,511


318,784


304,857


295,441


272,051

























Lease cancellation income

(430)


(950)


(950)


(816)


(2,266)


(1,939)


(1,939)


(2,199)

























NOI at 100% - comparable centers excluding lease cancellation income

155,693


149,822


145,796


134,695


316,518


302,918


293,502


269,852

























NOI excluding lease cancellation income - growth %

3.9%




8.2%




4.5%




8.8%





































































(1)

Includes City Creek Center.









(2)

Includes City Creek Center, The Mall at Green Hills, The Gardens on El Paseo and El Paseo Village.

(3)

Includes The Pier Shops and Regency Square.




















































 

TAUBMAN CENTERS, INC.






Table 8 - Balance Sheets






As of June 30, 2013 and December 31, 2012






 (in thousands of dollars) 











As of







June 30, 2013


December 31, 2012


Consolidated Balance Sheet of Taubman Centers, Inc. :















Assets:








Properties


4,331,214


4,246,000



Accumulated depreciation and amortization


(1,452,935)


(1,395,876)







2,878,279


2,850,124



Investment in Unconsolidated Joint Ventures


274,308


214,152



Cash and cash equivalents


63,487


32,057



Restricted cash 


6,346


6,138



Accounts and notes receivable, net


56,852


69,033



Accounts receivable from related parties


2,960


2,009



Deferred charges and other assets


87,571


94,982







3,369,803


3,268,495











Liabilities:







Notes payable


2,910,585


2,952,030



Accounts payable and accrued liabilities


271,995


278,098



Distributions in excess of investments in and net income of







Unconsolidated Joint Ventures


378,641


383,293







3,561,221


3,613,421











Equity:








Taubman Centers, Inc. Shareowners' Equity:







Series B Non-Participating Convertible Preferred Stock


25


25



Series J Cumulative Redeemable Preferred Stock







Series K Cumulative Redeemable Preferred Stock







Common stock


638


633



Additional paid-in capital


824,779


657,071



Accumulated other comprehensive income (loss)


(17,732)


(22,064)



Dividends in excess of net income


(909,503)


(891,283)







(101,793)


(255,618)



Noncontrolling interests:







Noncontrolling interests in consolidated joint ventures


(41,630)


(45,066)



Noncontrolling interests in partnership equity of TRG 


(47,995)


(44,242)







(89,625)


(89,308)







(191,418)


(344,926)







3,369,803


3,268,495





























Combined Balance Sheet of Unconsolidated Joint Ventures (1):















Assets:








Properties


1,133,342


1,129,647



Accumulated depreciation and amortization


(483,534)


(473,101)







649,808


656,546



Cash and cash equivalents


25,163


30,070



Accounts and notes receivable, net


22,683


26,032



Deferred charges and other assets  


28,647


31,282







726,301


743,930











Liabilities:







Mortgage notes payable


1,485,340


1,490,857



Accounts payable and other liabilities, net


51,050


68,282







1,536,390


1,559,139











Accumulated Deficiency in Assets:







Accumulated deficiency in assets - TRG


(460,234)


(459,390)



Accumulated deficiency in assets - Joint Venture Partners


(336,547)


(333,752)



Accumulated other comprehensive income (loss) - TRG


(6,654)


(11,021)



Accumulated other comprehensive income (loss) - Joint Venture Partners


(6,654)


(11,046)







(810,089)


(815,209)







726,301


743,930












Unconsolidated Joint Venture amounts exclude the balances of entities that own interests in projects that are currently under development.


(1)


 

TAUBMAN CENTERS, INC.





Table 9 -  Annual Guidance





(all dollar amounts per common share on a diluted basis; amounts may not add due to rounding)
















Range for Year Ended




December 31, 2013







Funds from Operations per common share


3.57


3.67







Real estate depreciation - TRG


(1.79)


(1.76)







Distributions on participating securities of TRG


(0.02)


(0.02)







Depreciation of TCO's additional basis in TRG


(0.11)


(0.11)







Net income attributable to common shareowners, per common share (EPS)


1.66


1.79













 

SOURCE Taubman Centers, Inc.



RELATED LINKS
http://www.taubman.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.