BLOOMFIELD HILLS, Mich., July 27 /PRNewswire-FirstCall/ --
- Mall Tenant Sales per Square Foot Up 12.1 Percent
- Arizona Mills, Partridge Creek Financings Complete
- Company Increases Guidance on Improved Operations
Taubman Centers, Inc. (NYSE: TCO) today announced its financial results for the second quarter of 2010.
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Net income allocable to common shareholders per diluted share (EPS) was $0.14 for the quarter ended June 30, 2010 versus $0.17 for the quarter ended June 30, 2009. EPS for the six months ended June 30, 2010 was $0.25 versus $0.38 for the first six months of 2009.
Taubman Centers' Funds from Operations (FFO) per diluted share was $0.61 for the quarter ended June 30, 2010 versus $0.65 for the quarter ended June 30, 2009. For the six months ended June 30, 2010, Taubman Centers' FFO per diluted share was $1.21 versus $1.35 for the first six months of 2009.
"We're pleased with the results for the quarter, which we believe bodes well for the full year," said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. "Our net operating income excluding lease cancellation revenue was nearly even with last year and our bankruptcies remained very low for the quarter. Although we remain cautious, we are seeing signs of the economic recovery."
Sales Continue to Surge; Occupancy and Rents as Expected
Tenant sales per square foot were very strong in the quarter, up 12.1 percent, bringing the year to date increase to 11.4 percent and the company's 12-month trailing sales per square foot to $523. "Led by our centers in Michigan and Florida, more than half our centers had sales per square foot increases in the double digits for the quarter," said Mr. Taubman. "It's clear the consumer is spending in our centers."
Leased space for Taubman's portfolio was 90.8 percent on June 30, 2010 versus 91.3 percent on June 30, 2009. Average rent per square foot for the second quarter of 2010 was $43.20 versus $43.40 in the second quarter of 2009. For the six months ended June 30, 2010, average rent per square foot was $43.20 versus $44.30 in the six months ended June 30, 2009.
"These statistics are on track with our expectations," said Mr. Taubman. "We continue to project that occupancy will end the year even with 2009 and that full year 2010 opening rents will improve over 2009 levels."
Financings Completed for Arizona Mills and Partridge Creek
The refinancing of Arizona Mills (Phoenix, Ariz.), a 50 percent owned property, was completed in early July. The new 10-year $175 million non-recourse loan bears interest at an all-in rate of 5.83 percent, with amortizing principal based on 30 years. Proceeds from the refinancing were used to pay off the existing $131.0 million 7.90 percent loan, with excess amounts distributed to the partners.
As previously announced, The Mall at Partridge Creek (Clinton Township, Mich.) was financed in late June. The new 10-year $82.5 million non-recourse loan bears interest at an all-in rate of 6.25 percent, with amortizing principal based on 30 years. Previously the property was encumbered by a $73.8 million floating rate construction loan.
"Conditions in the capital markets have improved markedly over the past several months, particularly for good sponsors and good assets," said Lisa A. Payne, vice chairman and chief financial officer of Taubman Centers. "We were pleased with the amount of proceeds and interest rates on these two new loans. We are now focused on our final 2010 maturity, a $128 million loan on MacArthur Center (Norfolk, Va.), which we expect to refinance in the third quarter."
Guidance Increasing; Ranges Narrowed
The company is increasing the lower end of its guidance range for 2010 FFO per diluted share from the previously announced $2.55 to $2.75 to $2.65 to $2.75. This reflects improved performance of core operations, partially offset by the negative effect of continued ownership of The Pier at Caesars (Atlantic City, NJ), now estimated to impact results through the third quarter. The company also is adjusting its guidance for 2010 EPS from a range of $0.64 to $0.89 to a range of $0.72 to $0.88.
Supplemental Investor Information Available
The company provides supplemental investor information along with its earnings announcements, available online at www.taubman.com under "Investor Relations." This includes the following:
- Income Statement
- 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
- 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 July 28 to discuss these results, business conditions, growth prospects and the company's outlook for the remainder of 2010. The conference call will be simulcast at www.taubman.com under "Investor Relations" as well as www.earnings.com and www.streetevents.com. An online replay will follow shortly after the call and continue for 90 days.
Taubman Centers is a real estate investment trust engaged in the development, leasing and management of regional and super regional shopping centers. Taubman's 26 U.S. owned, leased and/or managed properties, the most productive in the industry, serve major markets from coast to coast. Taubman Centers is headquartered in Bloomfield Hills, Michigan and its Taubman Asia subsidiary is headquartered in Hong Kong. Founded in 1950, Taubman celebrates its 60th anniversary in 2010. For more information about Taubman, visit www.taubman.com.
For ease of use, references in this press release to "Taubman Centers", "company" or "Taubman" mean Taubman Centers, Inc. or one or more of a number of separate, affiliated entities. Business is actually conducted by an affiliated entity rather than Taubman Centers, Inc. itself.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements reflect management's current views with respect to future events and financial performance. Actual results may differ materially from those expected because of various risks and uncertainties, including, but not limited to the continuing impacts of the U.S. recession and global credit environment, other changes in general economic and real estate conditions, changes in the interest rate environment and the availability of financing, and adverse changes in the retail industry. Other risks and uncertainties are discussed in the company's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K.
TAUBMAN CENTERS, INC. Table 1 - Summary of Results For the Periods Ended June 30, 2010 and 2009 |
||||||||
(in thousands of dollars, except as indicated) |
||||||||
Three Months Ended |
Six Months Ended |
|||||||
2010 |
2009 |
2010 |
2009 |
|||||
Net income |
18,484 |
20,866 |
35,297 |
45,392 |
||||
Noncontrolling share of income of consolidated joint ventures |
(1,968) |
(2,033) |
(3,981) |
(3,726) |
||||
Noncontrolling share of income of TRG |
(4,428) |
(5,290) |
(8,310) |
(11,876) |
||||
TRG series F preferred distributions |
(615) |
(615) |
(1,230) |
(1,230) |
||||
Preferred stock dividends |
(3,659) |
(3,659) |
(7,317) |
(7,317) |
||||
Distributions to participating securities of TRG |
(361) |
(361) |
(723) |
(836) |
||||
Net income attributable to Taubman Centers, Inc. common shareowners |
7,453 |
8,908 |
13,736 |
20,407 |
||||
Net income per common share - basic & diluted |
0.14 |
0.17 |
0.25 |
0.38 |
||||
Beneficial interest in EBITDA - Consolidated Businesses (1) |
73,170 |
75,087 |
145,197 |
152,776 |
||||
Beneficial interest in EBITDA - Unconsolidated Joint Ventures (1) |
23,076 |
22,536 |
46,491 |
46,484 |
||||
Funds from Operations (1) |
50,143 |
52,390 |
99,874 |
108,960 |
||||
Funds from Operations attributable to TCO (1) |
33,816 |
34,968 |
67,303 |
72,726 |
||||
Funds from Operations per common share - basic (1) |
0.62 |
0.66 |
1.24 |
1.37 |
||||
Funds from Operations per common share - diluted (1) |
0.61 |
0.65 |
1.21 |
1.35 |
||||
Adjusted Funds from Operations (1) |
50,143 |
52,559 |
99,874 |
111,590 |
||||
Adjusted Funds from Operations attributable to TCO (1) |
33,816 |
35,081 |
67,303 |
74,482 |
||||
Adjusted Funds from Operations per common share - basic (1) |
0.62 |
0.66 |
1.24 |
1.40 |
||||
Adjusted Funds from Operations per common share - diluted (1) |
0.61 |
0.65 |
1.21 |
1.38 |
||||
Weighted average number of common shares outstanding - basic |
54,550,964 |
53,120,769 |
54,454,579 |
53,093,988 |
||||
Weighted average number of common shares outstanding - diluted |
55,611,887 |
53,666,868 |
55,490,935 |
53,466,563 |
||||
Common shares outstanding at end of period |
54,679,545 |
53,120,769 |
||||||
Weighted average units - Operating Partnership - basic |
80,888,325 |
79,558,454 |
80,806,530 |
79,532,928 |
||||
Weighted average units - Operating Partnership - diluted |
82,820,510 |
80,975,814 |
82,714,146 |
80,776,764 |
||||
Units outstanding at end of period - Operating Partnership |
80,931,121 |
79,558,454 |
||||||
Ownership percentage of the Operating Partnership at end of period |
67.6% |
66.8% |
||||||
Number of owned shopping centers at end of period |
23 |
23 |
23 |
23 |
||||
Operating Statistics (2): |
||||||||
Mall tenant sales (3) |
1,062,263 |
968,964 |
2,067,444 |
1,890,122 |
||||
Ending occupancy |
87.9% |
88.8% |
87.9% |
88.8% |
||||
Average occupancy |
88.0% |
88.9% |
88.2% |
88.9% |
||||
Leased space at end of period |
90.8% |
91.3% |
90.8% |
91.3% |
||||
Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (3) |
15.0% |
16.8% |
15.4% |
17.6% |
||||
Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (3) |
14.1% |
15.7% |
14.3% |
15.9% |
||||
Mall tenant occupancy costs as a percentage of tenant sales - Combined (3) |
14.7% |
16.4% |
15.0% |
17.1% |
||||
Rent per square foot - Consolidated Businesses |
42.96 |
43.04 |
42.96 |
44.18 |
||||
Rent per square foot - Unconsolidated Joint Ventures |
43.64 |
44.24 |
43.72 |
44.56 |
||||
Rent per square foot - Combined |
43.20 |
43.40 |
43.20 |
44.30 |
||||
(1) |
Beneficial Interest in EBITDA represents the Operating Partnership’s share of the earnings before interest, income taxes, |
|
The Company uses Net Operating Income (NOI), as an alternative measure to evaluate the operating performance of |
||
The National Association of Real Estate Investment Trusts (NAREIT) defines Funds from Operations (FFO) as net |
||
The Company primarily uses FFO in measuring performance and in formulating corporate goals and compensation. The |
||
These non-GAAP measures as presented by the Company are not necessarily comparable to similarly titled measures |
||
(2) |
Statistics exclude The Pier Shops. |
|
(3) |
Based on reports of sales furnished by mall tenants. |
|
TAUBMAN CENTERS, INC. Table 2 - Income Statement For the Three Months Ended June 30, 2010 and 2009 |
|||||||||||
(in thousands of dollars) |
|||||||||||
2010 |
2009 |
||||||||||
CONSOLIDATED |
UNCONSOLIDATED |
CONSOLIDATED |
UNCONSOLIDATED |
||||||||
REVENUES: |
|||||||||||
Minimum rents |
84,081 |
38,092 |
84,016 |
38,553 |
|||||||
Percentage rents |
1,061 |
477 |
561 |
95 |
|||||||
Expense recoveries |
56,334 |
23,477 |
58,525 |
23,819 |
|||||||
Management, leasing, and development services |
4,007 |
3,189 |
|||||||||
Other |
8,599 |
1,676 |
12,648 |
1,187 |
|||||||
Total revenues |
154,082 |
63,722 |
158,939 |
63,654 |
|||||||
EXPENSES: |
|||||||||||
Maintenance, taxes, and utilities |
44,535 |
16,516 |
46,946 |
16,296 |
|||||||
Other operating |
18,542 |
5,463 |
16,352 |
5,965 |
|||||||
Restructuring charge |
169 |
||||||||||
Management, leasing, and development services |
2,185 |
1,930 |
|||||||||
General and administrative |
7,036 |
6,847 |
|||||||||
Interest expense |
37,923 |
15,916 |
36,473 |
16,120 |
|||||||
Depreciation and amortization |
35,918 |
9,104 |
36,058 |
9,911 |
|||||||
Total expenses |
146,139 |
46,999 |
144,775 |
48,292 |
|||||||
Nonoperating income |
1,150 |
(11) |
198 |
3 |
|||||||
Impairment loss on marketable securities |
(1,666) |
||||||||||
9,093 |
16,712 |
12,696 |
15,365 |
||||||||
Income tax expense |
(114) |
(198) |
|||||||||
Equity in income of Unconsolidated Joint Ventures |
9,505 |
8,368 |
|||||||||
Net income |
18,484 |
20,866 |
|||||||||
Net income attributable to noncontrolling interests: |
|||||||||||
Noncontrolling share of income of consolidated joint ventures |
(1,968) |
(2,033) |
|||||||||
TRG series F preferred distributions |
(615) |
(615) |
|||||||||
Noncontrolling share of income of TRG |
(4,428) |
(5,290) |
|||||||||
Distributions to participating securities of TRG |
(361) |
(361) |
|||||||||
Preferred stock dividends |
(3,659) |
(3,659) |
|||||||||
Net income attributable to Taubman Centers, Inc. common shareowners |
7,453 |
8,908 |
|||||||||
SUPPLEMENTAL INFORMATION: |
|||||||||||
EBITDA - 100% |
82,934 |
41,732 |
85,227 |
41,396 |
|||||||
EBITDA - outside partners' share |
(9,764) |
(18,656) |
(10,140) |
(18,860) |
|||||||
Beneficial interest in EBITDA |
73,170 |
23,076 |
75,087 |
22,536 |
|||||||
Beneficial interest expense |
(32,630) |
(8,248) |
(31,538) |
(8,369) |
|||||||
Beneficial income tax expense |
(114) |
(198) |
|||||||||
Non-real estate depreciation |
(837) |
(854) |
|||||||||
Preferred dividends and distributions |
(4,274) |
(4,274) |
|||||||||
Fund from Operations contribution |
35,315 |
14,828 |
38,223 |
14,167 |
|||||||
Net straightline adjustments to rental revenue, recoveries, |
|||||||||||
and ground rent expense at TRG % |
58 |
21 |
80 |
104 |
|||||||
(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 |
||||||||||
TAUBMAN CENTERS, INC. Table 3 - Income Statement For the Six Months Ended June 30, 2010 and 2009 |
|||||||||||
(in thousands of dollars) |
|||||||||||
2010 |
2009 |
||||||||||
CONSOLIDATED |
UNCONSOLIDATED |
CONSOLIDATED |
UNCONSOLIDATED |
||||||||
REVENUES: |
|||||||||||
Minimum rents |
167,435 |
76,036 |
171,452 |
77,520 |
|||||||
Percentage rents |
3,135 |
1,469 |
2,721 |
1,203 |
|||||||
Expense recoveries |
109,255 |
45,816 |
115,283 |
47,645 |
|||||||
Management, leasing, and development services |
7,063 |
6,745 |
|||||||||
Other |
18,683 |
3,741 |
20,428 |
3,376 |
|||||||
Total revenues |
305,571 |
127,062 |
316,629 |
129,744 |
|||||||
EXPENSES: |
|||||||||||
Maintenance, taxes, and utilities |
87,611 |
32,363 |
91,487 |
32,333 |
|||||||
Other operating |
36,347 |
10,071 |
31,317 |
12,353 |
|||||||
Restructuring charge |
2,630 |
||||||||||
Management, leasing, and development services |
3,778 |
3,836 |
|||||||||
General and administrative |
14,425 |
13,735 |
|||||||||
Interest expense |
75,340 |
31,734 |
72,706 |
32,070 |
|||||||
Depreciation and amortization |
73,002 |
18,628 |
72,351 |
19,348 |
|||||||
Total expenses |
290,503 |
92,796 |
288,062 |
96,104 |
|||||||
Nonoperating Income |
1,299 |
1 |
433 |
57 |
|||||||
Impairment loss on marketable securities |
(1,666) |
||||||||||
16,367 |
34,267 |
27,334 |
33,697 |
||||||||
Income tax expense |
(310) |
(468) |
|||||||||
Equity in income of Unconsolidated Joint Ventures |
19,240 |
18,526 |
|||||||||
Net income |
35,297 |
45,392 |
|||||||||
Net income attributable to noncontrolling interests: |
|||||||||||
Noncontrolling share of income of consolidated joint ventures |
(3,981) |
(3,726) |
|||||||||
TRG series F preferred distributions |
(1,230) |
(1,230) |
|||||||||
Noncontrolling share of income of TRG |
(8,310) |
(11,876) |
|||||||||
Distributions to participating securities of TRG |
(723) |
(836) |
|||||||||
Preferred stock dividends |
(7,317) |
(7,317) |
|||||||||
Net income attributable to Taubman Centers, Inc. common shareowners |
13,736 |
20,407 |
|||||||||
SUPPLEMENTAL INFORMATION: |
|||||||||||
EBITDA - 100% |
164,709 |
84,629 |
172,391 |
85,115 |
|||||||
EBITDA - outside partners' share |
(19,512) |
(38,138) |
(19,615) |
(38,631) |
|||||||
Beneficial interest in EBITDA |
145,197 |
46,491 |
152,776 |
46,484 |
|||||||
Beneficial interest expense |
(64,827) |
(16,450) |
(62,898) |
(16,653) |
|||||||
Beneficial income tax expense |
(310) |
(468) |
|||||||||
Non-real estate depreciation |
(1,680) |
(1,734) |
|||||||||
Preferred dividends and distributions |
(8,547) |
(8,547) |
|||||||||
Funds from Operations contribution |
69,833 |
30,041 |
79,129 |
29,831 |
|||||||
Net straightline adjustments to rental revenue, recoveries, |
(178) |
(120) |
159 |
158 |
|||||||
(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 |
||||||||||
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 June 30, 2010 and 2009 |
||||||||||||||
(in thousands of dollars except as noted; may not add or recalculate due to rounding) |
||||||||||||||
2010 |
2009 |
|||||||||||||
Dollars |
Shares |
Per |
Dollars |
Shares |
Per |
|||||||||
Net income attributable to TCO common shareowners |
7,453 |
55,611,887 |
0.14 |
8,908 |
53,666,868 |
0.17 |
||||||||
Add depreciation of TCO's additional basis |
1,719 |
0.03 |
1,720 |
0.03 |
||||||||||
Net income attributable to TCO common shareowners, excluding step-up depreciation |
9,172 |
55,611,887 |
0.16 |
10,628 |
53,666,868 |
0.20 |
||||||||
Add: |
||||||||||||||
Noncontrolling share of income of TRG |
4,428 |
26,337,361 |
5,290 |
26,437,684 |
||||||||||
Distributions to participating securities |
361 |
871,262 |
361 |
871,262 |
||||||||||
Net income attributable to partnership unit holders and participating securities |
13,961 |
82,820,510 |
0.17 |
16,279 |
80,975,814 |
0.20 |
||||||||
Add (less) depreciation and amortization: |
||||||||||||||
Consolidated businesses at 100% |
35,918 |
0.43 |
36,058 |
0.45 |
||||||||||
Depreciation of TCO's additional basis |
(1,719) |
(0.02) |
(1,720) |
(0.02) |
||||||||||
Noncontrolling partners in consolidated joint ventures |
(2,503) |
(0.03) |
(3,172) |
(0.04) |
||||||||||
Share of Unconsolidated Joint Ventures |
5,323 |
0.06 |
5,799 |
0.07 |
||||||||||
Non-real estate depreciation |
(837) |
(0.01) |
(854) |
(0.01) |
||||||||||
Funds from Operations |
50,143 |
82,820,510 |
0.61 |
52,390 |
80,975,814 |
0.65 |
||||||||
TCO's average ownership percentage of TRG |
67.4% |
66.8% |
||||||||||||
Funds from Operations attributable to TCO |
33,816 |
0.61 |
34,968 |
0.65 |
||||||||||
Funds from Operations |
50,143 |
82,820,510 |
0.61 |
52,390 |
80,975,814 |
0.65 |
||||||||
Restructuring charge |
169 |
0.00 |
||||||||||||
Adjusted Funds from Operations |
50,143 |
82,820,510 |
0.61 |
52,559 |
80,975,814 |
0.65 |
||||||||
TCO's average ownership percentage of TRG |
67.4% |
66.8% |
||||||||||||
Adjusted Funds from Operations attributable to TCO |
33,816 |
0.61 |
35,081 |
0.65 |
||||||||||
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 Six Months Ended June 30, 2010 and 2009 |
||||||||||||||
(in thousands of dollars except as noted; may not add or recalculate due to rounding) |
||||||||||||||
2010 |
2009 |
|||||||||||||
Dollars |
Shares |
Per |
Dollars |
Shares |
Per |
|||||||||
Net income attributable to TCO common shareowners |
13,736 |
55,490,935 |
0.25 |
20,407 |
53,466,563 |
0.38 |
||||||||
Add depreciation of TCO's additional basis |
3,439 |
0.06 |
3,440 |
0.06 |
||||||||||
Net income attributable to TCO common shareowners, excluding step-up depreciation |
17,175 |
55,490,935 |
0.31 |
23,847 |
53,466,563 |
0.45 |
||||||||
Add: |
||||||||||||||
Noncontrolling share of income of TRG |
8,310 |
26,351,949 |
11,876 |
26,438,939 |
||||||||||
Distributions to participating securities |
723 |
871,262 |
836 |
871,262 |
||||||||||
Net income attributable to partnership unit holders and participating securities |
26,208 |
82,714,146 |
0.32 |
36,559 |
80,776,764 |
0.45 |
||||||||
Add (less) depreciation and amortization: |
||||||||||||||
Consolidated businesses at 100% |
73,002 |
0.88 |
72,351 |
0.90 |
||||||||||
Depreciation of TCO's additional basis |
(3,439) |
(0.04) |
(3,440) |
(0.04) |
||||||||||
Noncontrolling partners in consolidated joint ventures |
(5,018) |
(0.06) |
(6,081) |
(0.08) |
||||||||||
Share of Unconsolidated Joint Ventures |
10,801 |
0.13 |
11,305 |
0.14 |
||||||||||
Non-real estate depreciation |
(1,680) |
(0.02) |
(1,734) |
(0.02) |
||||||||||
Funds from Operations |
99,874 |
82,714,146 |
1.21 |
108,960 |
80,776,764 |
1.35 |
||||||||
TCO's average ownership percentage of TRG |
67.4% |
66.8% |
||||||||||||
Funds from Operations attributable to TCO |
67,303 |
1.21 |
72,726 |
1.35 |
||||||||||
Funds from Operations |
99,874 |
82,714,146 |
1.21 |
108,960 |
80,776,764 |
1.35 |
||||||||
Restructuring charge |
2,630 |
0.03 |
||||||||||||
Adjusted Funds from Operations |
99,874 |
82,714,146 |
1.21 |
111,590 |
80,776,764 |
1.38 |
||||||||
TCO's average ownership percentage of TRG |
67.4% |
66.8% |
||||||||||||
Adjusted Funds from Operations attributable to TCO |
67,303 |
1.21 |
74,482 |
1.38 |
||||||||||
TAUBMAN CENTERS, INC. Table 6 - Reconciliation of Net Income to Beneficial Interest in EBITDA For the Periods Ended June 30, 2010 and 2009 |
||||||||||
(in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding) |
||||||||||
Three Months Ended |
Six Months Ended |
|||||||||
2010 |
2009 |
2010 |
2009 |
|||||||
Net income |
18,484 |
20,866 |
35,297 |
45,392 |
||||||
Add (less) depreciation and amortization: |
||||||||||
Consolidated businesses at 100% |
35,918 |
36,058 |
73,002 |
72,351 |
||||||
Noncontrolling partners in consolidated joint ventures |
(2,503) |
(3,172) |
(5,018) |
(6,081) |
||||||
Share of Unconsolidated Joint Ventures |
5,323 |
5,799 |
10,801 |
11,305 |
||||||
Add (less) interest expense and income tax expense: |
||||||||||
Interest expense: |
||||||||||
Consolidated businesses at 100% |
37,923 |
36,473 |
75,340 |
72,706 |
||||||
Noncontrolling partners in consolidated joint ventures |
(5,293) |
(4,935) |
(10,513) |
(9,808) |
||||||
Share of Unconsolidated Joint Ventures |
8,248 |
8,369 |
16,450 |
16,653 |
||||||
Income tax expense |
114 |
198 |
310 |
468 |
||||||
Less noncontrolling share of income of consolidated joint ventures |
(1,968) |
(2,033) |
(3,981) |
(3,726) |
||||||
Beneficial Interest in EBITDA |
96,246 |
97,623 |
191,688 |
199,260 |
||||||
TCO's average ownership percentage of TRG |
67.4% |
66.8% |
67.4% |
66.8% |
||||||
Beneficial Interest in EBITDA attributable to TCO |
64,908 |
65,212 |
129,140 |
133,004 |
||||||
TAUBMAN CENTERS, INC. Table 7 - Reconciliation of Net Income to Net Operating Income For the Periods Ended June 30, 2010 and 2009 |
|||||||||||
(in thousands of dollars) |
|||||||||||
Three Months Ended |
Year to Date |
||||||||||
2010 |
2009 |
2010 |
2009 |
||||||||
Net income |
18,484 |
20,866 |
35,297 |
45,392 |
|||||||
Add (less) depreciation and amortization: |
|||||||||||
Consolidated businesses at 100% |
35,918 |
36,058 |
73,002 |
72,351 |
|||||||
Noncontrolling partners in consolidated joint ventures |
(2,503) |
(3,172) |
(5,018) |
(6,081) |
|||||||
Share of Unconsolidated Joint Ventures |
5,323 |
5,799 |
10,801 |
11,305 |
|||||||
Add (less) interest expense and income tax expense: |
|||||||||||
Interest expense: |
|||||||||||
Consolidated businesses at 100% |
37,923 |
36,473 |
75,340 |
72,706 |
|||||||
Noncontrolling partners in consolidated joint ventures |
(5,293) |
(4,935) |
(10,513) |
(9,808) |
|||||||
Share of Unconsolidated Joint Ventures |
8,248 |
8,369 |
16,450 |
16,653 |
|||||||
Income tax expense |
114 |
198 |
310 |
468 |
|||||||
Less noncontrolling share of income of consolidated joint ventures |
(1,968) |
(2,033) |
(3,981) |
(3,726) |
|||||||
Add EBITDA attributable to outside partners: |
|||||||||||
EBITDA attributable to noncontrolling partners in consolidated joint ventures |
9,764 |
10,140 |
19,512 |
19,615 |
|||||||
EBITDA attributable to outside partners in Unconsolidated Joint Ventures |
18,656 |
18,860 |
38,138 |
38,631 |
|||||||
EBITDA at 100% |
124,666 |
126,623 |
249,338 |
257,506 |
|||||||
Add (less) items excluded from shopping center Net Operating Income: |
|||||||||||
General and administrative expenses |
7,036 |
6,847 |
14,425 |
13,735 |
|||||||
Management, leasing, and development services, net |
(1,822) |
(1,259) |
(3,285) |
(2,909) |
|||||||
Restructuring charge |
169 |
2,630 |
|||||||||
Gain on sale of peripheral land |
(1,040) |
(1,040) |
|||||||||
Interest income |
(99) |
(201) |
(260) |
(490) |
|||||||
Impairment loss on marketable securities |
1,666 |
1,666 |
|||||||||
Straight-line of rents |
(552) |
(912) |
(524) |
(1,757) |
|||||||
The Pier Shops Net Operating Income |
(1,121) |
(1,459) |
(2,274) |
(2,266) |
|||||||
Non-center specific operating expenses and other |
5,630 |
4,918 |
11,799 |
8,096 |
|||||||
Net Operating Income at 100% |
132,698 |
136,392 |
268,179 |
276,211 |
|||||||
Net Operating Income - growth % (1) |
-2.7% |
-2.9% |
|||||||||
(1) |
Excluding all lease cancellation fees, growth in net operating income was -0.3% and |
||||||||||
TAUBMAN CENTERS, INC. Table 8 - Balance Sheets As of June 30, 2010 and December 31, 2009 |
||||||
(in thousands of dollars) |
||||||
As of |
||||||
June 30, 2010 |
December 31, 2009 |
|||||
Consolidated Balance Sheet of Taubman Centers, Inc. (1): |
||||||
Assets: |
||||||
Properties |
3,495,599 |
3,496,853 |
||||
Accumulated depreciation and amortization |
(1,148,314) |
(1,100,610) |
||||
2,347,285 |
2,396,243 |
|||||
Investment in Unconsolidated Joint Ventures |
89,007 |
89,804 |
||||
Cash and cash equivalents |
9,227 |
16,176 |
||||
Accounts and notes receivable, net |
39,383 |
44,503 |
||||
Accounts receivable from related parties |
1,702 |
1,558 |
||||
Deferred charges and other assets |
74,326 |
58,569 |
||||
2,560,930 |
2,606,853 |
|||||
Liabilities: |
||||||
Notes payable |
2,688,242 |
2,691,019 |
||||
Accounts payable and accrued liabilities |
224,057 |
230,276 |
||||
Distributions in excess of investments in and net income of |
||||||
Unconsolidated Joint Ventures |
159,090 |
160,305 |
||||
3,071,389 |
3,081,600 |
|||||
Equity: |
||||||
Taubman Centers, Inc. Shareowners' Equity: |
||||||
Series B Non-Participating Convertible Preferred Stock |
26 |
26 |
||||
Series G Cumulative Redeemable Preferred Stock |
||||||
Series H Cumulative Redeemable Preferred Stock |
||||||
Common Stock |
547 |
543 |
||||
Additional paid-in capital |
585,668 |
579,983 |
||||
Accumulated other comprehensive income (loss) |
(21,654) |
(24,443) |
||||
Dividends in excess of net income |
(916,328) |
(884,666) |
||||
(351,741) |
(328,557) |
|||||
Noncontrolling interests: |
||||||
Noncontrolling interests in consolidated joint ventures |
(100,636) |
(100,014) |
||||
Noncontrolling interests in partnership equity of TRG |
(87,299) |
(75,393) |
||||
Preferred Equity of TRG |
29,217 |
29,217 |
||||
(158,718) |
(146,190) |
|||||
(510,459) |
(474,747) |
|||||
2,560,930 |
2,606,853 |
|||||
Combined Balance Sheet of Unconsolidated Joint Ventures (1): |
||||||
Assets: |
||||||
Properties |
1,095,311 |
1,094,963 |
||||
Accumulated depreciation and amortization |
(410,494) |
(396,518) |
||||
684,817 |
698,445 |
|||||
Cash and cash equivalents |
17,229 |
18,544 |
||||
Accounts and notes receivable |
19,488 |
26,982 |
||||
Deferred charges and other assets |
25,744 |
22,310 |
||||
747,278 |
766,281 |
|||||
Liabilities: |
||||||
Notes payable |
1,087,056 |
1,092,806 |
||||
Accounts payable and other liabilities, net |
36,858 |
50,615 |
||||
1,123,914 |
1,143,421 |
|||||
Accumulated Deficiency in Assets: |
||||||
Accumulated deficiency in assets - TRG |
(198,959) |
(200,169) |
||||
Accumulated deficiency in assets - Joint Venture Partners |
(169,678) |
(166,866) |
||||
Accumulated other comprehensive income (loss) - TRG |
(4,275) |
(5,397) |
||||
Accumulated other comprehensive income (loss) - Joint Venture Partners |
(3,724) |
(4,708) |
||||
(376,636) |
(377,140) |
|||||
747,278 |
766,281 |
|||||
(1) Certain 2009 amounts have been reclassified to conform to 2010 classifications. |
||||||
TAUBMAN CENTERS, INC. Table 9 - 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, 2010 |
||||
Funds from Operations per common share (1) |
2.65 |
2.75 |
||
Real estate depreciation - TRG |
(1.79) |
(1.73) |
||
Distributions on participating securities of TRG |
(0.02) |
(0.02) |
||
Depreciation of TCO's additional basis in TRG |
(0.12) |
(0.12) |
||
Net income attributable to common shareowners, per common share (EPS) (1) |
0.72 |
0.88 |
||
(1) Guidance on Funds from Operations and EPS includes The Pier Shops' operations through September 2010. The loan on the center is in default and accrues interest at 10.01%. The foreclosure process is not in the Company's control, but the Company anticipates that the foreclosure will be completed in the third quarter of 2010, at which time the ownership of The Pier Shops will be transferred in satisfaction of the obligation under the debt. The Company expects a non-cash incremental impact on FFO per share of slightly more than ($0.01) for each month the Company continues to own the center. Including the impact of depreciation and amortization, the impact on EPS is expected to be approximately ($0.015) per month. A non-cash accounting gain is expected to be recognized when the loan obligation is extinguished upon transfer of title of The Pier Shops. This gain has been excluded from EPS and FFO per share estimates. |
|
SOURCE Taubman Centers, Inc.
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