BLOOMFIELD HILLS, Mich., Oct. 24, 2013 /PRNewswire/ -- Taubman Centers, Inc. (NYSE: TCO) today reported financial results for the third quarter of 2013.
September 30, 2013 Three Months Ended |
September 30, 2012 Three Months Ended |
September 30, 2013 Nine Months Ended |
September 30, 2012 Nine Months Ended |
|
Net income allocable to common shareholders (EPS) per diluted share Growth rate |
$0.38 8.6% |
$0.35 |
$1.09 18.5% |
$0.92 |
Funds from Operations (FFO) per diluted share Growth rate |
$0.89 12.7% |
$0.79 |
$2.53 11.9% |
$2.26 |
Adjusted Funds from Operations (Adjusted FFO) per diluted share(1) Growth rate |
$0.89 3.5% |
$0.86 |
$2.53 8.6% |
$2.33 |
(1) Adjusted FFO for the three and nine months ended September 30, 2012 excludes charges related to the redemption of the Series G and H Preferred Stock. |
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"This quarter our results were driven by strong rents, increased occupancy, and the late 2012 acquisitions of additional interests in International Plaza (Tampa, Fla.) and Waterside Shops (Naples, Fla.)," said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. "We also received the final installment of the incentive fee for our very successful leasing of IFC Mall in Seoul, South Korea."
Rents, Occupancy, Leased Space, and NOI Up
Average rent per square foot for the third quarter of 2013 was $48.66, up 4.6 percent from $46.52 in the comparable period last year. Year-to-date, average rent per square foot is up 4.7 percent.
Ending occupancy in comparable centers was 91.3 percent on September 30, 2013, up 0.8 percent from 90.5 percent on September 30, 2012. Leased space in comparable centers was 93.1 percent on September 30, 2013, up 0.6 percent from 92.5 percent on September 30, 2012.
For the quarter, NOI excluding lease cancellation income was up 3.2 percent, bringing year-to-date growth to 4 percent.
Sales
Mall tenant sales per square foot at Taubman properties were up 0.4 percent from the third quarter of 2012. This brings the company's 12-month trailing mall tenant sales per square foot to $699, an increase of 2.6 percent from the 12-months ended September 30, 2012. Year-to-date, sales are up 2 percent.
Taubman Prestige Outlets Chesterfield Opens
In August, Taubman Prestige Outlets Chesterfield opened on schedule in Chesterfield, Missouri. "We were very pleased with the strong attendance at our grand opening and we look forward to building upon that momentum," said Mr. Taubman. "There's clear synergy with existing retail on one of the most well-known retail interchanges in the St. Louis metropolitan area". See Taubman Prestige Outlets Chesterfield Opened Today In St. Louis – August 2, 2013.
Revitalization of International Market Place Announced
In August, Taubman announced its plans to redevelop the International Market Place (Waikiki, Honolulu, Hawaii). This iconic project will include 360,000 square feet of retail, dining, and entertainment, and will feature luxury-focused merchandising with the only full-line Saks Fifth Avenue in Hawaii. Taubman will fund the total project cost, which is expected to be approximately $400 million, and will have a 93.5% ownership interest in the project. The center is scheduled to open in spring 2016. See Taubman Centers And Queen Emma Land Company Announce Plans To Move Forward With The Revitalization Of The International Market Place In Waikiki – August 9, 2013.
Share Repurchase Program Announced
In August, the company announced a $200 million share repurchase program. During the third quarter, the company repurchased 313,042 shares of its common stock at an average price of $67.68 per share. At September 30, the company had $179 million available under its share repurchase authorization. See Taubman Centers Announces $200 Million Share Repurchase Program – August 26, 2013.
2013 Guidance
"We are in-line with our expectations and continue to expect NOI growth of about three percent for the year. As a result, our 2013 FFO guidance range remains at $3.57 to $3.67 per diluted share," said Mr. Taubman. 2013 EPS is expected to be in the range of $1.64 to $1.76.
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 (Expense)
- 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 10:00 AM Eastern Daylight Time on Friday, October 25 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 28 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 The Mall at University Town Center in Sarasota, Fla.; The Mall of San Juan in San Juan, Puerto Rico; International Market Place in Waikiki, Honolulu, Hawaii 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 September 30, 2013 and 2012 |
|||||||
(in thousands of dollars, except as indicated) |
|||||||
Three Months Ended |
Year to Date |
||||||
2013 |
2012 |
2013 |
2012 |
||||
Net income |
43,243 |
45,061 |
123,202 |
108,686 |
|||
Noncontrolling share of income of consolidated joint ventures |
(2,198) |
(2,079) |
(6,752) |
(6,788) |
|||
Noncontrolling share of income of TRG |
(10,338) |
(10,216) |
(29,915) |
(27,105) |
|||
Preferred stock dividends (1) |
(5,784) |
(10,663) |
(15,148) |
(17,980) |
|||
Distributions to participating securities of TRG |
(435) |
(403) |
(1,313) |
(1,209) |
|||
Net income attributable to Taubman Centers, Inc. common shareowners |
24,488 |
21,700 |
70,074 |
55,604 |
|||
Net income per common share - basic |
0.38 |
0.36 |
1.10 |
0.94 |
|||
Net income per common share - diluted |
0.38 |
0.35 |
1.09 |
0.92 |
|||
Beneficial interest in EBITDA - Combined (2) |
128,320 |
121,969 |
371,430 |
342,106 |
|||
Funds from Operations(2) |
80,500 |
70,477 |
230,222 |
199,149 |
|||
Funds from Operations attributable to TCO (2) |
57,737 |
49,071 |
164,692 |
137,676 |
|||
Funds from Operations per common share - basic(2) |
0.91 |
0.81 |
2.59 |
2.33 |
|||
Funds from Operations per common share - diluted (2) |
0.89 |
0.79 |
2.53 |
2.26 |
|||
Adjusted Funds from Operations (3) |
80,500 |
76,889 |
230,222 |
205,561 |
|||
Adjusted Funds from Operations attributable to TCO (3) |
57,737 |
53,535 |
164,692 |
142,108 |
|||
Adjusted Funds from Operations per common share- basic (3) |
0.91 |
0.88 |
2.59 |
2.40 |
|||
Adjusted Funds from Operations per common share- diluted (3) |
0.89 |
0.86 |
2.53 |
2.33 |
|||
Weighted average number of common shares outstanding - basic |
63,753,748 |
60,571,612 |
63,653,155 |
59,207,828 |
|||
Weighted average number of common shares outstanding - diluted |
64,690,909 |
62,025,322 |
64,702,648 |
60,716,518 |
|||
Common shares outstanding at end of period |
63,524,788 |
61,698,618 |
|||||
Weighted average units - Operating Partnership - basic |
88,933,226 |
86,994,524 |
88,903,234 |
85,655,085 |
|||
Weighted average units - Operating Partnership - diluted |
90,741,649 |
89,319,495 |
90,823,989 |
88,035,037 |
|||
Units outstanding at end of period - Operating Partnership |
88,702,310 |
88,120,226 |
|||||
Ownership percentage of the Operating Partnership at end of period |
71.6% |
70.0% |
|||||
Number of owned shopping centers at end of period |
25 |
24 |
25 |
24 |
|||
Operating Statistics: |
|||||||
Net Operating Income excluding lease cancellation income - growth % (4) |
3.2% |
4.0% |
|||||
Mall tenant sales - all centers (5) |
1,405,246 |
1,378,384 |
4,266,230 |
4,128,924 |
|||
Mall tenant sales - comparable (4)(5) |
1,356,765 |
1,352,763 |
4,149,366 |
4,067,048 |
|||
Ending occupancy - all centers |
90.9% |
90.4% |
90.9% |
90.4% |
|||
Ending occupancy - comparable(4) |
91.3% |
90.5% |
91.3% |
90.5% |
|||
Average occupancy - all centers |
90.8% |
90.1% |
90.7% |
89.9% |
|||
Average occupancy - comparable (4) |
91.1% |
90.3% |
90.7% |
90.1% |
|||
Leased space - all centers |
92.6% |
92.6% |
92.6% |
92.6% |
|||
Leased space - comparable(4) |
93.1% |
92.5% |
93.1% |
92.5% |
|||
All centers: |
|||||||
Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (5) |
14.2% |
14.0% |
13.9% |
13.4% |
|||
Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (5) |
14.1% |
13.5% |
13.2% |
12.8% |
|||
Mall tenant occupancy costs as a percentage of tenant sales - Combined (5) |
14.2% |
13.9% |
13.7% |
13.2% |
|||
Comparable centers: |
|||||||
Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (4)(5) |
14.4% |
13.9% |
13.9% |
13.4% |
|||
Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (5) |
14.1% |
13.5% |
13.2% |
12.8% |
|||
Mall tenant occupancy costs as a percentage of tenant sales - Combined (4)(5) |
14.3% |
13.8% |
13.7% |
13.2% |
|||
Average rent per square foot - Consolidated Businesses (4) |
48.58 |
46.91 |
48.50 |
46.71 |
|||
Average rent per square foot - Unconsolidated Joint Ventures |
48.85 |
45.61 |
48.30 |
45.27 |
|||
Average rent per square foot - Combined (4) |
48.66 |
46.52 |
48.44 |
46.27 |
(1) |
Preferred dividends for the three and nine months ended September 30, 2012 include charges of $3.3 million and $3.1 million incurred in connection with the $100 million redemption of the Series G Preferred Stock and the $87 million redemption of the Series H Preferred Stock, respectively. |
||
(2) |
Beneficial Interest in EBITDA represents the Operating Partnership's share of the earnings before interest, income taxes, and depreciation and amortization of its consolidated and unconsolidated businesses. The Company believes Beneficial Interest in EBITDA provides a useful indicator of operating performance, as it is customary in the real estate and shopping center business to evaluate the performance of properties on a basis unaffected by capital structure. |
||
The Company uses Net Operating Income (NOI) as an alternative measure to evaluate the operating performance of centers, both on individual and stabilized portfolio bases. The Company defines NOI as property-level operating revenues (includes rental income excluding 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. |
|||
(3) |
FFO for the three and nine months ended September 30, 2012 includes, and Adjusted FFO excludes, charges related to the redemption of Series G and H Preferred Stock. |
||
(4) |
Statistics exclude non-comparable centers. The 2012 statistics, other than sales per square foot growth, have been restated to include comparable centers to 2013. |
||
(5) |
Based on reports of sales furnished by mall tenants. |
TAUBMAN CENTERS, INC. |
|||||||||
Table 2 - Income Statement |
|||||||||
For the Three Months Ended September 30, 2013 and 2012 |
|||||||||
(in thousands of dollars) |
|||||||||
2013 |
2012 |
||||||||
CONSOLIDATED BUSINESSES |
UNCONSOLIDATED |
CONSOLIDATED BUSINESSES |
UNCONSOLIDATED |
||||||
REVENUES: |
|||||||||
Minimum rents |
103,501 |
42,532 |
99,564 |
40,016 |
|||||
Percentage rents |
7,021 |
2,137 |
6,315 |
2,366 |
|||||
Expense recoveries |
67,943 |
25,738 |
66,633 |
26,224 |
|||||
Management, leasing, and development services |
8,753 |
10,234 |
|||||||
Other |
6,720 |
1,452 |
6,793 |
1,829 |
|||||
Total revenues |
193,938 |
71,859 |
189,539 |
70,435 |
|||||
EXPENSES: |
|||||||||
Maintenance, taxes, utilities, and promotion |
55,375 |
18,807 |
53,253 |
18,588 |
|||||
Other operating |
19,295 |
3,372 |
16,128 |
3,581 |
|||||
Management, leasing, and development services |
1,027 |
6,165 |
|||||||
General and administrative |
11,812 |
9,571 |
|||||||
Interest expense |
32,515 |
17,048 |
34,943 |
16,617 |
|||||
Depreciation and amortization |
40,982 |
10,068 |
36,414 |
9,095 |
|||||
Total expenses |
161,006 |
49,295 |
156,474 |
47,881 |
|||||
Nonoperating income (expense) |
(456) |
(1) |
56 |
18 |
|||||
32,476 |
22,563 |
33,121 |
22,572 |
||||||
Income tax expense |
(1,453) |
(732) |
|||||||
Equity in income of Unconsolidated Joint Ventures |
12,220 |
12,672 |
|||||||
Net income |
43,243 |
45,061 |
|||||||
Net income attributable to noncontrolling interests: |
|||||||||
Noncontrolling share of income of consolidated joint ventures |
(2,198) |
(2,079) |
|||||||
Noncontrolling share of income of TRG |
(10,338) |
(10,216) |
|||||||
Distributions to participating securities of TRG |
(435) |
(403) |
|||||||
Preferred stock dividends (2) |
(5,784) |
(10,663) |
|||||||
Net income attributable to Taubman Centers, Inc. common shareowners |
24,488 |
21,700 |
|||||||
SUPPLEMENTAL INFORMATION: |
|||||||||
EBITDA - 100% |
105,973 |
49,679 |
104,478 |
48,284 |
|||||
EBITDA - outside partners' share |
(5,653) |
(21,679) |
(9,257) |
(21,536) |
|||||
Beneficial interest in EBITDA |
100,320 |
28,000 |
95,221 |
26,748 |
|||||
Beneficial interest expense |
(30,352) |
(9,415) |
(30,718) |
(8,765) |
|||||
Beneficial income tax expense - TRG and TCO |
(1,453) |
(667) |
|||||||
Beneficial income tax benefit - TCO |
(29) |
||||||||
Non-real estate depreciation |
(787) |
(679) |
|||||||
Preferred dividends and distributions |
(5,784) |
(10,663) |
|||||||
Funds from Operations contribution |
61,915 |
18,585 |
52,494 |
17,983 |
|||||
STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS: |
|||||||||
Net straight-line adjustments to rental revenue, recoveries, and ground rent expense at TRG % |
|||||||||
1,081 |
226 |
1,194 |
187 |
||||||
Green Hills purchase accounting adjustments - minimum rents increase |
186 |
212 |
|||||||
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. |
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(2) |
Preferred dividends for the three months ended September 30, 2012 include charges of $3.3 million and $3.1 million incurred in connection with the $100 million redemption of the Series G Preferred Stock and the $87 million redemption of the Series H Preferred Stock, respectively. |
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TAUBMAN CENTERS, INC. |
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Table 3 - Income Statement |
|||||||||
For the Nine Months Ended September 30, 2013 and 2012 |
|||||||||
(in thousands of dollars) |
|||||||||
2013 |
2012 |
||||||||
CONSOLIDATED BUSINESSES |
UNCONSOLIDATED |
CONSOLIDATED BUSINESSES |
UNCONSOLIDATED |
||||||
REVENUES: |
|||||||||
Minimum rents |
309,043 |
124,679 |
292,248 |
119,213 |
|||||
Percentage rents |
13,732 |
5,763 |
12,767 |
5,797 |
|||||
Expense recoveries |
197,549 |
73,922 |
185,325 |
72,561 |
|||||
Management, leasing, and development services |
13,954 |
27,441 |
|||||||
Other |
21,104 |
4,820 |
20,487 |
4,945 |
|||||
Total revenues |
555,382 |
209,184 |
538,268 |
202,516 |
|||||
EXPENSES: |
|||||||||
Maintenance, taxes, utilities, and promotion |
154,694 |
53,993 |
143,854 |
52,202 |
|||||
Other operating |
53,950 |
11,643 |
52,360 |
11,461 |
|||||
Management, leasing, and development services |
4,172 |
21,674 |
|||||||
General and administrative |
36,676 |
28,021 |
|||||||
Interest expense |
99,589 |
50,976 |
109,146 |
48,107 |
|||||
Depreciation and amortization |
116,262 |
29,326 |
109,083 |
26,690 |
|||||
Total expenses |
465,343 |
145,938 |
464,138 |
138,460 |
|||||
Nonoperating income (expense) |
1,831 |
(1) |
251 |
19 |
|||||
91,870 |
63,245 |
74,381 |
64,075 |
||||||
Income tax expense |
(2,715) |
(1,438) |
|||||||
Equity in income of Unconsolidated Joint Ventures |
34,047 |
35,743 |
|||||||
Net income |
123,202 |
108,686 |
|||||||
Net income attributable to noncontrolling interests: |
|||||||||
Noncontrolling share of income of consolidated joint ventures |
(6,752) |
(6,788) |
|||||||
Noncontrolling share of income of TRG |
(29,915) |
(27,105) |
|||||||
Distributions to participating securities of TRG |
(1,313) |
(1,209) |
|||||||
Preferred stock dividends (2) |
(15,148) |
(17,980) |
|||||||
Net income attributable to Taubman Centers, Inc. common shareowners |
70,074 |
55,604 |
|||||||
SUPPLEMENTAL INFORMATION: |
|||||||||
EBITDA - 100% |
307,721 |
143,547 |
292,610 |
138,872 |
|||||
EBITDA - outside partners' share |
(17,068) |
(62,770) |
(27,117) |
(62,259) |
|||||
Beneficial interest in EBITDA |
290,653 |
80,777 |
265,493 |
76,613 |
|||||
Beneficial interest expense |
(93,049) |
(28,192) |
(96,512) |
(25,084) |
|||||
Beneficial income tax expense - TRG and TCO |
(2,715) |
(1,393) |
|||||||
Beneficial income tax expense - TCO |
132 |
||||||||
Non-real estate depreciation |
(2,236) |
(1,988) |
|||||||
Preferred dividends and distributions |
(15,148) |
(17,980) |
|||||||
Funds from Operations contribution |
177,637 |
52,585 |
147,620 |
51,529 |
|||||
STRAIGHTLINE AND PURCHASE ACCOUNTING ADJUSTMENTS: |
|||||||||
Net straight-line adjustments to rental revenue, recoveries, and ground rent expense at TRG % |
|||||||||
2,881 |
451 |
2,544 |
360 |
||||||
Green Hills purchase accounting adjustments - minimum rents increase |
590 |
610 |
|||||||
Green Hills, El Paseo Village, and Gardens on El Paseo purchase accounting adjustments - interest expense reduction |
|||||||||
2,573 |
2,573 |
||||||||
Waterside Shops purchase accounting adjustments - interest expense reduction |
788 |
||||||||
(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) |
Preferred dividends for the nine months ended September 30, 2012 include charges of $3.3 million and $3.1 million incurred in connection with the $100 million redemption of the Series G Preferred Stock and the $87 million redemption of the Series H Preferred Stock, respectively. |
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TAUBMAN CENTERS, INC. |
||||||||||||
Table 4 - Reconciliation of Net Income Attributable to Taubman Centers, Inc. Common Shareowners to Funds from Operations and Adjusted Funds from Operations |
||||||||||||
For the Three Months Ended September 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 |
24,488 |
63,753,748 |
0.38 |
21,700 |
60,571,612 |
0.36 |
||||||
Add impact of share-based compensation |
107 |
937,161 |
168 |
1,453,710 |
||||||||
Net income attributable to TCO common shareowners - Diluted |
24,595 |
64,690,909 |
0.38 |
21,868 |
62,025,322 |
0.35 |
||||||
Add depreciation of TCO's additional basis |
1,720 |
0.03 |
1,720 |
0.03 |
||||||||
Less TCO's additional income tax benefit |
(29) |
(0.00) |
||||||||||
Net income attributable to TCO common shareowners, excluding step-up depreciation and additional income tax benefit |
||||||||||||
26,286 |
64,690,909 |
0.41 |
23,588 |
62,025,322 |
0.38 |
|||||||
Add: |
||||||||||||
Noncontrolling share of income of TRG |
10,338 |
25,179,478 |
10,216 |
26,422,911 |
||||||||
Distributions to participating securities of TRG |
435 |
871,262 |
403 |
871,262 |
||||||||
Net income attributable to partnership unitholders |
||||||||||||
and participating securities |
37,059 |
90,741,649 |
0.41 |
34,207 |
89,319,495 |
0.38 |
||||||
Add (less) depreciation and amortization: |
||||||||||||
Consolidated businesses at 100% |
40,982 |
0.45 |
36,414 |
0.41 |
||||||||
Depreciation of TCO's additional basis |
(1,720) |
(0.02) |
(1,720) |
(0.02) |
||||||||
Noncontrolling partners in consolidated joint ventures |
(1,292) |
(0.01) |
(2,888) |
(0.03) |
||||||||
Share of Unconsolidated Joint Ventures |
6,365 |
0.07 |
5,311 |
0.06 |
||||||||
Non-real estate depreciation |
(787) |
(0.01) |
(679) |
(0.01) |
||||||||
Less impact of share-based compensation |
(107) |
(0.00) |
(168) |
(0.00) |
||||||||
Funds from Operations |
80,500 |
90,741,649 |
0.89 |
70,477 |
89,319,495 |
0.79 |
||||||
TCO's average ownership percentage of TRG |
71.7% |
69.6% |
||||||||||
Funds from Operations attributable to TCO, excluding additional income tax benefit |
||||||||||||
57,708 |
0.89 |
49,071 |
0.79 |
|||||||||
Add TCO's additional income tax benefit |
29 |
0.00 |
||||||||||
Funds from Operations attributable to TCO |
57,737 |
0.89 |
49,071 |
0.79 |
||||||||
Funds from Operations |
80,500 |
90,741,649 |
0.89 |
70,477 |
89,319,495 |
0.79 |
||||||
Charge upon redemption of Series G and H Preferred Stock |
6,412 |
0.07 |
||||||||||
Adjusted Funds from Operations |
80,500 |
90,741,649 |
0.89 |
76,889 |
89,319,495 |
0.86 |
||||||
TCO's average ownership percentage of TRG |
71.7% |
69.6% |
||||||||||
Adjusted Funds from Operations attributable to TCO, excluding additional income tax benefit |
||||||||||||
57,708 |
0.89 |
53,535 |
0.86 |
|||||||||
Add TCO's additional income tax benefit |
29 |
0.00 |
||||||||||
Adjusted Funds from Operations attributable to TCO |
57,737 |
0.89 |
53,535 |
0.86 |
||||||||
TAUBMAN CENTERS, INC. |
||||||||||||
Table 5 - Reconciliation of Net Income Attributable to Taubman Centers, Inc. Common Shareowners to Funds from Operations and Adjusted Funds from Operations |
||||||||||||
For the Nine Months Ended September 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 |
70,074 |
63,653,155 |
1.10 |
55,604 |
59,207,828 |
0.94 |
||||||
Add impact of share-based compensation |
352 |
1,049,493 |
470 |
1,508,690 |
||||||||
Net income attributable to TCO common shareowners - Diluted |
70,426 |
64,702,648 |
1.09 |
56,074 |
60,716,518 |
0.92 |
||||||
Add depreciation of TCO's additional basis |
5,160 |
0.08 |
5,159 |
0.08 |
||||||||
Add TCO's additional income tax expense |
132 |
0.00 |
||||||||||
Net income attributable to TCO common shareowners, excluding step-up depreciation and additional income tax expense |
||||||||||||
75,718 |
64,702,648 |
1.17 |
61,233 |
60,716,518 |
1.01 |
|||||||
Add: |
||||||||||||
Noncontrolling share of income of TRG |
29,915 |
25,250,079 |
27,105 |
26,447,257 |
||||||||
Distributions to participating securities of TRG |
1,313 |
871,262 |
1,209 |
871,262 |
||||||||
Net income attributable to partnership unitholders |
||||||||||||
and participating securities |
106,946 |
90,823,989 |
1.18 |
89,547 |
88,035,037 |
1.02 |
||||||
Add (less) depreciation and amortization: |
||||||||||||
Consolidated businesses at 100% |
116,262 |
1.28 |
109,083 |
1.24 |
||||||||
Depreciation of TCO's additional basis |
(5,160) |
(0.06) |
(5,159) |
(0.06) |
||||||||
Noncontrolling partners in consolidated joint ventures |
(3,776) |
(0.04) |
(7,650) |
(0.09) |
||||||||
Share of Unconsolidated Joint Ventures |
18,538 |
0.20 |
15,786 |
0.18 |
||||||||
Non-real estate depreciation |
(2,236) |
(0.02) |
(1,988) |
(0.02) |
||||||||
Less impact of share-based compensation |
(352) |
(0.00) |
(470) |
(0.01) |
||||||||
Funds from Operations |
230,222 |
90,823,989 |
2.53 |
199,149 |
88,035,037 |
2.26 |
||||||
TCO's average ownership percentage of TRG |
71.6% |
69.1% |
||||||||||
Funds from Operations attributable to TCO, excluding additional income tax expense |
||||||||||||
164,824 |
2.53 |
137,676 |
2.26 |
|||||||||
Less TCO's additional income tax expense |
(132) |
(0.00) |
||||||||||
Funds from Operations attributable to TCO |
164,692 |
2.53 |
137,676 |
2.26 |
||||||||
Funds from Operations |
230,222 |
90,823,989 |
2.53 |
199,149 |
88,035,037 |
2.26 |
||||||
Charge upon redemption of Series G and H Preferred Stock |
6,412 |
0.07 |
||||||||||
Adjusted Funds from Operations |
230,222 |
90,823,989 |
2.53 |
205,561 |
88,035,037 |
2.33 |
||||||
TCO's average ownership percentage of TRG |
71.6% |
69.1% |
||||||||||
Adjusted Funds from Operations attributable to TCO, excluding additional income tax expense |
||||||||||||
164,824 |
2.53 |
142,108 |
2.33 |
|||||||||
Less TCO's additional income tax expense |
(132) |
(0.00) |
||||||||||
Adjusted Funds from Operations attributable to TCO |
164,692 |
2.53 |
142,108 |
2.33 |
||||||||
TAUBMAN CENTERS, INC. |
|||||||||
Table 6 - Reconciliation of Net Income to Beneficial Interest in EBITDA |
|||||||||
For the Periods Ended September 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 |
43,243 |
45,061 |
123,202 |
108,686 |
|||||
Add (less) depreciation and amortization: |
|||||||||
Consolidated businesses at 100% |
40,982 |
36,414 |
116,262 |
109,083 |
|||||
Noncontrolling partners in consolidated joint ventures |
(1,292) |
(2,888) |
(3,776) |
(7,650) |
|||||
Share of Unconsolidated Joint Ventures |
6,365 |
5,311 |
18,538 |
15,786 |
|||||
Add (less) interest expense and income tax expense: |
|||||||||
Interest expense: |
|||||||||
Consolidated businesses at 100% |
32,515 |
34,943 |
99,589 |
109,146 |
|||||
Noncontrolling partners in consolidated joint ventures |
(2,163) |
(4,225) |
(6,540) |
(12,634) |
|||||
Share of Unconsolidated Joint Ventures |
9,415 |
8,765 |
28,192 |
25,084 |
|||||
Share of income tax expense |
1,453 |
667 |
2,715 |
1,393 |
|||||
Less noncontrolling share of income of consolidated joint ventures |
(2,198) |
(2,079) |
(6,752) |
(6,788) |
|||||
Beneficial Interest in EBITDA |
128,320 |
121,969 |
371,430 |
342,106 |
|||||
TCO's average ownership percentage of TRG |
71.7% |
69.6% |
71.6% |
69.1% |
|||||
Beneficial Interest in EBITDA attributable to TCO |
91,989 |
84,923 |
265,925 |
236,516 |
|||||
TAUBMAN CENTERS, INC. |
||||||||||||||||||
Table 7 - Reconciliation of Net Income to Net Operating Income (NOI) |
||||||||||||||||||
For the Periods Ended September 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 |
43,243 |
45,061 |
45,061 |
21,868 |
123,202 |
108,686 |
108,686 |
66,602 |
||||||||||
Add (less) depreciation and amortization: |
||||||||||||||||||
Consolidated businesses at 100% - continuing operations |
40,982 |
36,414 |
36,414 |
33,054 |
116,262 |
109,083 |
109,083 |
99,503 |
||||||||||
Consolidated businesses at 100% - discontinued operations |
5,361 |
9,030 |
||||||||||||||||
Noncontrolling partners in consolidated joint ventures |
(1,292) |
(2,888) |
(2,888) |
(2,404) |
(3,776) |
(7,650) |
(7,650) |
(8,111) |
||||||||||
Share of Unconsolidated Joint Ventures |
6,365 |
5,311 |
5,311 |
5,486 |
18,538 |
15,786 |
15,786 |
16,350 |
||||||||||
Add (less) interest expense and income tax expense: |
||||||||||||||||||
Interest expense: |
||||||||||||||||||
Consolidated businesses at 100% - continuing operations |
32,515 |
34,943 |
34,943 |
30,064 |
99,589 |
109,146 |
109,146 |
89,529 |
||||||||||
Consolidated businesses at 100% - discontinued operations |
6,354 |
17,374 |
||||||||||||||||
Noncontrolling partners in consolidated joint ventures |
(2,163) |
(4,225) |
(4,225) |
(2,767) |
(6,540) |
(12,634) |
(12,634) |
(8,409) |
||||||||||
Share of Unconsolidated Joint Ventures |
9,415 |
8,765 |
8,765 |
8,082 |
28,192 |
25,084 |
25,084 |
23,406 |
||||||||||
Share of income tax expense |
1,453 |
667 |
667 |
208 |
2,715 |
1,393 |
1,393 |
413 |
||||||||||
Less noncontrolling share of income of consolidated joint ventures |
(2,198) |
(2,079) |
(2,079) |
(4,327) |
(6,752) |
(6,788) |
(6,788) |
(10,497) |
||||||||||
Add EBITDA attributable to outside partners: |
||||||||||||||||||
EBITDA attributable to noncontrolling partners in consolidated joint ventures |
5,653 |
9,257 |
9,257 |
9,498 |
17,068 |
27,117 |
27,117 |
27,017 |
||||||||||
EBITDA attributable to outside partners in Unconsolidated Joint Ventures |
21,679 |
21,536 |
21,536 |
20,326 |
62,770 |
62,259 |
62,259 |
59,524 |
||||||||||
EBITDA at 100% |
155,652 |
152,762 |
152,762 |
130,803 |
451,268 |
431,482 |
431,482 |
381,731 |
||||||||||
Add (less) items excluded from shopping center NOI: |
||||||||||||||||||
General and administrative expenses |
11,812 |
9,571 |
9,571 |
7,709 |
36,676 |
28,021 |
28,021 |
22,998 |
||||||||||
Management, leasing, and development services, net |
(7,726) |
(4,069) |
(4,069) |
(2,194) |
(9,782) |
(5,767) |
(5,767) |
(7,931) |
||||||||||
Gains on sales of peripheral land |
(863) |
(519) |
||||||||||||||||
Interest income |
(43) |
(74) |
(74) |
(225) |
(144) |
(270) |
(270) |
(528) |
||||||||||
Nonoperating expense |
500 |
500 |
||||||||||||||||
Gain on sale of marketable securities |
(1,323) |
|||||||||||||||||
Straight-line of rents |
(1,706) |
(2,055) |
(2,055) |
(836) |
(4,320) |
(4,535) |
(4,535) |
(1,379) |
||||||||||
Acquisition costs |
1,681 |
1,681 |
||||||||||||||||
Non-center specific operating expenses and other |
7,995 |
6,357 |
6,357 |
7,244 |
18,781 |
21,773 |
21,773 |
22,057 |
||||||||||
NOI - all centers at 100% |
166,484 |
162,492 |
162,492 |
144,182 |
490,793 |
470,704 |
470,704 |
418,110 |
||||||||||
Less - NOI of non-comparable centers |
(1,781) |
(1) |
(2,487) |
(1) |
(7,459) |
(2) |
(33) |
(3) |
(7,306) |
(1) |
(5,842) |
(1) |
(20,230) |
(2) |
(1,909) |
(3) |
||
NOI at 100% - comparable centers |
164,703 |
160,005 |
155,033 |
144,149 |
483,487 |
464,862 |
450,474 |
416,201 |
||||||||||
NOI - growth % |
2.9% |
7.6% |
4.0% |
8.2% |
||||||||||||||
NOI at 100% - comparable centers |
164,703 |
160,005 |
155,033 |
144,149 |
483,487 |
464,862 |
450,474 |
416,201 |
||||||||||
Lease cancellation income |
(741) |
(1,076) |
(1,076) |
(787) |
(3,007) |
(3,015) |
(3,015) |
(2,987) |
||||||||||
NOI at 100% - comparable centers excluding lease cancellation income |
163,962 |
158,929 |
153,957 |
143,362 |
480,480 |
461,847 |
447,459 |
413,214 |
||||||||||
NOI excluding lease cancellation income - growth % |
3.2% |
7.4% |
4.0% |
8.3% |
||||||||||||||
(1) |
Includes City Creek Center and Taubman Prestige Outlets Chesterfield. |
|||||||||||||||||
(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 September 30, 2013 and December 31, 2012 |
|||||
(in thousands of dollars) |
|||||
As of |
|||||
September 30, 2013 |
December 31, 2012 |
||||
Consolidated Balance Sheet of Taubman Centers, Inc. : |
|||||
Assets: |
|||||
Properties |
4,397,434 |
4,246,000 |
|||
Accumulated depreciation and amortization |
(1,484,052) |
(1,395,876) |
|||
2,913,382 |
2,850,124 |
||||
Investment in Unconsolidated Joint Ventures |
335,393 |
214,152 |
|||
Cash and cash equivalents |
32,377 |
32,057 |
|||
Restricted cash |
7,164 |
6,138 |
|||
Accounts and notes receivable, net |
61,103 |
69,033 |
|||
Accounts receivable from related parties |
1,900 |
2,009 |
|||
Deferred charges and other assets |
87,520 |
94,982 |
|||
3,438,839 |
3,268,495 |
||||
Liabilities: |
|||||
Notes payable |
2,985,952 |
2,952,030 |
|||
Accounts payable and accrued liabilities |
285,763 |
278,098 |
|||
Distributions in excess of investments in and net income of |
|||||
Unconsolidated Joint Ventures |
378,650 |
383,293 |
|||
3,650,365 |
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 |
635 |
633 |
|||
Additional paid-in capital |
813,139 |
657,071 |
|||
Accumulated other comprehensive income (loss) |
(14,274) |
(22,064) |
|||
Dividends in excess of net income |
(916,977) |
(891,283) |
|||
(117,452) |
(255,618) |
||||
Noncontrolling interests: |
|||||
Noncontrolling interests in consolidated joint ventures |
(38,757) |
(45,066) |
|||
Noncontrolling interests in partnership equity of TRG |
(55,317) |
(44,242) |
|||
(94,074) |
(89,308) |
||||
(211,526) |
(344,926) |
||||
3,438,839 |
3,268,495 |
||||
Combined Balance Sheet of Unconsolidated Joint Ventures (1): |
|||||
Assets: |
|||||
Properties |
1,142,770 |
1,129,647 |
|||
Accumulated depreciation and amortization |
(489,626) |
(473,101) |
|||
653,144 |
656,546 |
||||
Cash and cash equivalents |
22,954 |
30,070 |
|||
Accounts and notes receivable, net |
24,067 |
26,032 |
|||
Deferred charges and other assets |
26,039 |
31,282 |
|||
726,204 |
743,930 |
||||
Liabilities: |
|||||
Mortgage notes payable |
1,482,584 |
1,490,857 |
|||
Accounts payable and other liabilities |
53,629 |
68,282 |
|||
1,536,213 |
1,559,139 |
||||
Accumulated Deficiency in Assets: |
|||||
Accumulated deficiency in assets - TRG |
(459,409) |
(459,390) |
|||
Accumulated deficiency in assets - Joint Venture Partners |
(336,636) |
(333,752) |
|||
Accumulated other comprehensive income (loss) - TRG |
(6,982) |
(11,021) |
|||
Accumulated other comprehensive income (loss) - Joint Venture Partners |
(6,982) |
(11,046) |
|||
(810,009) |
(815,209) |
||||
726,204 |
743,930 |
||||
(1) |
Unconsolidated Joint Venture amounts exclude the balances of entities that own interests in projects that are currently under development. |
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 |
(1.81) |
(1.79) |
||||||
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) |
1.64 |
1.76 |
||||||
SOURCE Taubman Centers, Inc.
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