Taubman Centers Issues Strong Second Quarter Results
-- Funds from Operations (FFO) Per Share Up 19.7%
-- Net Operating Income (NOI) Excluding Lease Cancellation Income Up 8.2%
-- Sales Per Square Foot and Occupancy Up Substantially
-- Company Increases Guidance
BLOOMFIELD HILLS, Mich., July 26, 2012 /PRNewswire/ -- Taubman Centers, Inc. (NYSE: TCO) today reported financial results for the second quarter of 2012.
(Logo: http://photos.prnewswire.com/prnh/20080428/CLM116LOGO)
| June 30, 2012 Three Months Ended |
June 30, 2011 Three Months Ended |
June 30, 2012 Six Months Ended |
June 30, 2011 Six Months Ended |
|
| Net income allocable to common shareholders per diluted share (EPS) |
$0.27 |
$0.15 |
$0.57 |
$0.34 |
| Funds from Operations (FFO) per diluted share Growth rate |
$0.73 19.7% |
$0.61
|
$1.47 18.5% |
$1.24
|
| FFO per diluted share (excluding The Pier Shops and Regency Square) Growth rate |
$0.73 9.0% |
$0.67
|
$1.47 8.9% |
$1.35
|
"These strong results were propelled by increases in rents and recoveries at our centers," said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers. "The organic core growth we experienced was augmented by the solid performance of our newest center, City Creek Center (Salt Lake City, Utah), which opened in March 2012."
Healthy Sales, Leased Space, Occupancy, Rent, and NOI Increases
Mall tenant sales per square foot increased 8.4 percent for the three months ended June 30, 2012 and 10.8 percent for the six months ended June 30, 2012. The company's 12-month trailing mall tenant sales per square foot reached a record $672, up 12 percent from June 30, 2011.
Leased space in comparable centers for Taubman's portfolio was 92.2 percent on June 30, 2012, up 1.3 percent from 90.9 percent on June 30, 2011. Ending occupancy in comparable centers was 90.2 percent on June 30, 2012, up 2 percent from 88.2 percent on June 30, 2011.
Average rent per square foot for the second quarter of 2012 was $47.07, up a healthy 3.8 percent from $45.36 in the second quarter of 2011. For the six months ended June 30, 2012, average rent per square foot was $46.52, up from $45.30 in the six months ended June 30, 2011.
NOI excluding lease cancellation income was up 8.2 percent for the three months ended June 30, 2012, bringing 2012 year-to-date growth to 8.8 percent. "Occupancy and rental rate increases continue to drive robust NOI growth," said Mr. Taubman. "While increases in sales per square foot moderated from the double-digit sales increases we saw for the previous nine quarters, retailer sentiment remains very positive. Leasing activity continues to be strong and retail bankruptcies remain at historic lows."
Favorable Financings
In mid-June, the company completed a $320 million, 10-year, non-recourse financing on its 79 percent owned Westfarms mall (West Hartford, Conn.). The loan bears interest at an all-in fixed rate of 4.53 percent. The company received approximately $110 million as its share of the excess proceeds, which it used to pay down its revolving credit facilities.
The company is also finalizing attractive refinancings at The Mall at Millenia (Orlando, Fla.) and Sunvalley (Concord, Calif.), with both refinancings anticipated to close by year end.
2012 Guidance Increased
The company is increasing its guidance on 2012 FFO per diluted share to $3.22 to $3.27 and 2012 Adjusted FFO per share to the range of $3.24 to $3.29. 2012 Adjusted FFO guidance excludes a charge relating to the early refinancing of the loan on The Mall at Millenia. The company is also increasing its guidance on 2012 EPS to $1.27 to $1.37. This guidance now assumes comparable center NOI growth, excluding lease cancellation income, in the range of 5 to 6 percent for the year, up from about 4 percent previously.
The company's previous guidance on 2012 FFO per diluted share was a range of $3.18 to $3.25 and its previous guidance on 2012 EPS was a range of $1.20 to $1.32.
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 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 10:00 AM Eastern Daylight Time on Friday, July 27 to discuss these results, business conditions and the company's outlook for the remainder of 2012. 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 approximately 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 27 U.S. owned, leased and/or managed properties, the most productive in the publicly held U.S. regional mall 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. 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, including, but not limited to the global credit environment and the continuing impacts of the recent U.S. recession, other changes in general economic and real estate conditions, changes in the interest rate environment and the availability of financing, adverse changes in the retail industry, general development risks, and integration and other acquisition risks. 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, 2012 and 2011 |
||||||||
| (in thousands of dollars, except as indicated) |
||||||||
| Three Months Ended |
Year to Date |
|||||||
| 2012 |
2011 |
2012 |
2011 |
|||||
| Income from continuing operations |
31,448 |
26,859 |
63,625 |
57,428 |
||||
| Income (loss) from discontinued operations |
(6,569) |
(12,694) |
||||||
| Net income |
31,448 |
20,290 |
63,625 |
44,734 |
||||
| Noncontrolling share of income of consolidated joint ventures |
(2,875) |
(2,785) |
(4,709) |
(6,170) |
||||
| Noncontrolling share of income of TRG - continuing operations |
(8,138) |
(6,538) |
(16,889) |
(14,149) |
||||
| Noncontrolling share of loss of TRG - discontinued operations |
2,032 |
3,954 |
||||||
| TRG series F preferred distributions |
(615) |
(1,230) |
||||||
| Preferred stock dividends |
(3,659) |
(3,659) |
(7,317) |
(7,317) |
||||
| Distributions to participating securities of TRG |
(403) |
(381) |
(806) |
(762) |
||||
| Net income attributable to Taubman Centers, Inc. common shareowners |
16,373 |
8,344 |
33,904 |
19,060 |
||||
| Net income per common share - basic |
0.28 |
0.15 |
0.58 |
0.34 |
||||
| Net income per common share - diluted |
0.27 |
0.15 |
0.57 |
0.34 |
||||
| Beneficial interest in EBITDA - Consolidated Businesses (1) |
84,288 |
72,528 |
170,272 |
146,991 |
||||
| Beneficial interest in EBITDA - Unconsolidated Joint Ventures (1) |
24,759 |
23,511 |
49,865 |
47,220 |
||||
| Funds from Operations (1) |
63,520 |
51,226 |
128,672 |
103,955 |
||||
| Funds from Operations attributable to TCO (1) |
43,815 |
35,383 |
88,605 |
71,563 |
||||
| Funds from Operations per common share - basic (1) |
0.75 |
0.63 |
1.51 |
1.28 |
||||
| Funds from Operations per common share - diluted (1) |
0.73 |
0.61 |
1.47 |
1.24 |
||||
| Weighted average number of common shares outstanding - basic |
58,789,737 |
56,186,216 |
58,518,442 |
55,875,329 |
||||
| Weighted average number of common shares outstanding - diluted |
60,201,385 |
57,769,465 |
60,054,622 |
57,376,876 |
||||
| Common shares outstanding at end of period |
58,812,588 |
57,889,530 |
||||||
| Weighted average units - Operating Partnership - basic |
85,229,124 |
81,345,102 |
84,978,006 |
81,162,051 |
||||
| Weighted average units - Operating Partnership - diluted |
87,512,034 |
83,799,613 |
87,385,448 |
83,534,859 |
||||
| Units outstanding at end of period - Operating Partnership |
85,244,196 |
83,048,416 |
||||||
| Ownership percentage of the Operating Partnership at end of period |
69.0% |
69.7% |
||||||
| Number of owned shopping centers at end of period |
24 |
23 |
24 |
23 |
||||
| Operating Statistics (2): |
||||||||
| Net Operating Income excluding lease cancellation income - growth % (3) |
8.2% |
8.8% |
||||||
| Mall tenant sales - all centers (4) |
1,396,440 |
1,182,236 |
2,750,258 |
2,297,187 |
||||
| Mall tenant sales - comparable (3)(4) |
1,291,277 |
1,182,236 |
2,556,334 |
2,297,187 |
||||
| Ending occupancy - all centers |
90.1% |
88.2% |
90.1% |
88.2% |
||||
| Ending occupancy - comparable (3) |
90.2% |
88.2% |
90.2% |
88.2% |
||||
| Average occupancy - all centers |
89.9% |
88.2% |
89.8% |
88.2% |
||||
| Average occupancy - comparable (3) |
90.0% |
88.2% |
89.8% |
88.2% |
||||
| Leased space - all centers |
92.3% |
90.9% |
92.3% |
90.9% |
||||
| Leased space - comparable (3) |
92.2% |
90.9% |
92.2% |
90.9% |
||||
| All centers: |
||||||||
| Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (4) |
13.1% |
13.8% |
13.2% |
14.3% |
||||
| Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (4) |
12.8% |
12.6% |
12.4% |
12.9% |
||||
| Mall tenant occupancy costs as a percentage of tenant sales - Combined (4) |
13.0% |
13.4% |
12.9% |
13.8% |
||||
| Comparable centers: |
||||||||
| Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (3)(4) |
13.4% |
13.8% |
13.5% |
14.3% |
||||
| Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (4) |
12.8% |
12.6% |
12.4% |
12.9% |
||||
| Mall tenant occupancy costs as a percentage of tenant sales - Combined (3)(4) |
13.2% |
13.4% |
13.2% |
13.8% |
||||
| Average rent per square foot - Consolidated Businesses (3) |
47.60 |
45.44 |
47.18 |
45.36 |
||||
| Average rent per square foot - Unconsolidated Joint Ventures |
45.94 |
45.20 |
45.13 |
45.14 |
||||
| Average rent per square foot - Combined (3) |
47.07 |
45.36 |
46.52 |
45.30 |
||||
| (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 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 operating 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. In the reconciliations in Tables 4 and 5 of this Press Release, the Company has separately presented the prior year impacts of The Pier Shops and Regency Square, as the titles for these centers were transferred to the lenders and operations of these centers have been reclassified to discontinued operations. |
||||||||
| 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 The Pier Shops and Regency Square. |
|||||||
| (3) |
Statistics exclude non-comparable centers. |
|||||||
| (4) |
Based on reports of sales furnished by mall tenants. |
|||||||
| TAUBMAN CENTERS, INC. |
|||||||||
| Table 2 - Income Statement |
|||||||||
| For the Three Months Ended June 30, 2012 and 2011 |
|||||||||
| (in thousands of dollars) |
|||||||||
| 2012 |
2011 |
||||||||
| CONSOLIDATED BUSINESSES |
UNCONSOLIDATED |
CONSOLIDATED BUSINESSES |
UNCONSOLIDATED |
||||||
| REVENUES: |
|||||||||
| Minimum rents |
98,940 |
40,570 |
83,759 |
38,564 |
|||||
| Percentage rents |
2,049 |
1,228 |
1,550 |
936 |
|||||
| Expense recoveries |
62,215 |
23,573 |
54,268 |
21,966 |
|||||
| Management, leasing, and development services |
8,559 |
4,480 |
|||||||
| Other |
7,702 |
1,400 |
5,350 |
1,452 |
|||||
| Total revenues |
179,465 |
66,771 |
149,407 |
62,918 |
|||||
| EXPENSES: |
|||||||||
| Maintenance, taxes, utilities, and promotion |
48,903 |
17,505 |
43,848 |
16,293 |
|||||
| Other operating |
19,922 |
4,258 |
15,804 |
3,632 |
|||||
| Management, leasing, and development services |
6,987 |
2,323 |
|||||||
| General and administrative |
10,043 |
8,005 |
|||||||
| Interest expense |
36,676 |
15,823 |
29,691 |
13,949 |
|||||
| Depreciation and amortization |
36,235 |
9,019 |
34,424 |
9,203 |
|||||
| Total expenses |
158,766 |
46,605 |
134,095 |
43,077 |
|||||
| Nonoperating income |
71 |
(7) |
656 |
5 |
|||||
| 20,770 |
20,159 |
15,968 |
19,846 |
||||||
| Income tax (expense) benefit |
(492) |
5 |
|||||||
| Equity in income of Unconsolidated Joint Ventures |
11,170 |
10,886 |
|||||||
| Income from continuing operations |
31,448 |
26,859 |
|||||||
| Discontinued operations (2): |
|||||||||
| EBITDA |
1,115 |
||||||||
| Interest expense |
(5,779) |
||||||||
| Depreciation and amortization |
(1,905) |
||||||||
| Income (loss) from discontinued operations |
(6,569) |
||||||||
| Net income |
31,448 |
20,290 |
|||||||
| Net income attributable to noncontrolling interests: |
|||||||||
| Noncontrolling share of income of consolidated joint ventures |
(2,875) |
(2,785) |
|||||||
| TRG series F preferred distributions |
(615) |
||||||||
| Noncontrolling share of income of TRG - continuing operations |
(8,138) |
(6,538) |
|||||||
| Noncontrolling share of loss of TRG - discontinued operations |
2,032 |
||||||||
| Distributions to participating securities of TRG |
(403) |
(381) |
|||||||
| Preferred stock dividends |
(3,659) |
(3,659) |
|||||||
| Net income attributable to Taubman Centers, Inc. common shareowners |
16,373 |
8,344 |
|||||||
| SUPPLEMENTAL INFORMATION: |
|||||||||
| EBITDA - 100% |
93,681 |
45,001 |
81,198 |
42,998 |
|||||
| EBITDA - outside partners' share |
(9,393) |
(20,242) |
(8,670) |
(19,487) |
|||||
| Beneficial interest in EBITDA |
84,288 |
24,759 |
72,528 |
23,511 |
|||||
| Beneficial interest expense |
(32,473) |
(8,225) |
(32,727) |
(7,247) |
|||||
| Beneficial income tax (expense) benefit |
(515) |
5 |
|||||||
| Non-real estate depreciation |
(655) |
(570) |
|||||||
| Preferred dividends and distributions |
(3,659) |
(4,274) |
|||||||
| Funds from Operations contribution |
46,986 |
16,534 |
34,962 |
16,264 |
|||||
| Net straight-line adjustments to rental revenue, recoveries, |
|||||||||
| and ground rent expense at TRG % |
1,014 |
115 |
38 |
28 |
|||||
| Purchase accounting adjustments - minimum rents |
186 |
||||||||
| Purchase accounting adjustments - interest expense reduction |
(858) |
||||||||
| (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) |
Includes the operations of Regency Square and The Pier Shops. |
||||||||
| TAUBMAN CENTERS, INC. |
|||||||||
| Table 3 - Income Statement |
|||||||||
| For the Six Months Ended June 30, 2012 and 2011 |
|||||||||
| (in thousands of dollars) |
|||||||||
| 2012 |
2011 |
||||||||
| CONSOLIDATED BUSINESSES |
UNCONSOLIDATED |
CONSOLIDATED BUSINESSES |
UNCONSOLIDATED |
||||||
| REVENUES: |
|||||||||
| Minimum rents |
192,684 |
79,197 |
166,640 |
77,355 |
|||||
| Percentage rents |
6,452 |
3,431 |
4,854 |
2,293 |
|||||
| Expense recoveries |
118,692 |
46,337 |
105,705 |
44,196 |
|||||
| Management, leasing, and development services |
17,207 |
10,340 |
|||||||
| Other |
13,694 |
3,116 |
11,502 |
2,433 |
|||||
| Total revenues |
348,729 |
132,081 |
299,041 |
126,277 |
|||||
| EXPENSES: |
|||||||||
| Maintenance, taxes, utilities, and promotion |
90,601 |
33,614 |
84,512 |
32,473 |
|||||
| Other operating |
36,232 |
7,880 |
32,883 |
7,396 |
|||||
| Management, leasing, and development services |
15,509 |
4,603 |
|||||||
| General and administrative |
18,450 |
15,289 |
|||||||
| Interest expense |
74,203 |
31,490 |
59,465 |
29,545 |
|||||
| Depreciation and amortization |
72,669 |
17,595 |
66,449 |
18,578 |
|||||
| Total expenses |
307,664 |
90,579 |
263,201 |
87,992 |
|||||
| Nonoperating Income |
195 |
1 |
761 |
10 |
|||||
| 41,260 |
41,503 |
36,601 |
38,295 |
||||||
| Income tax expense |
(706) |
(205) |
|||||||
| Equity in income of Unconsolidated Joint Ventures |
23,071 |
21,032 |
|||||||
| Income from continuing operations |
63,625 |
57,428 |
|||||||
| Discontinued operations (2): |
|||||||||
| EBITDA |
1,995 |
||||||||
| Interest expense |
(11,020) |
||||||||
| Depreciation and amortization |
(3,669) |
||||||||
| Income (loss) from discontinued operations |
(12,694) |
||||||||
| Net income |
63,625 |
44,734 |
|||||||
| Net income attributable to noncontrolling interests: |
|||||||||
| Noncontrolling share of income of consolidated joint ventures |
(4,709) |
(6,170) |
|||||||
| TRG series F preferred distributions |
(1,230) |
||||||||
| Noncontrolling share of income of TRG - continuing operations |
(16,889) |
(14,149) |
|||||||
| Noncontrolling share of income of TRG - discontinued operations |
3,954 |
||||||||
| Distributions to participating securities of TRG |
(806) |
(762) |
|||||||
| Preferred stock dividends |
(7,317) |
(7,317) |
|||||||
| Net income attributable to Taubman Centers, Inc. common shareowners |
33,904 |
19,060 |
|||||||
| SUPPLEMENTAL INFORMATION: |
|||||||||
| EBITDA - 100% |
188,132 |
90,588 |
164,510 |
86,418 |
|||||
| EBITDA - outside partners' share |
(17,860) |
(40,723) |
(17,519) |
(39,198) |
|||||
| Beneficial interest in EBITDA |
170,272 |
49,865 |
146,991 |
47,220 |
|||||
| Beneficial interest expense |
(65,794) |
(16,319) |
(64,843) |
(15,324) |
|||||
| Beneficial income tax expense |
(726) |
(205) |
|||||||
| Non-real estate depreciation |
(1,309) |
(1,337) |
|||||||
| Preferred dividends and distributions |
(7,317) |
(8,547) |
|||||||
| Funds from Operations contribution |
95,126 |
33,546 |
72,059 |
31,896 |
|||||
| Net straight-line adjustments to rental revenue, recoveries, |
|||||||||
| and ground rent expense at TRG % |
1,266 |
173 |
(157) |
56 |
|||||
| Purchase accounting adjustments - minimum rents |
399 |
||||||||
| Purchase accounting adjustments - interest expense reduction |
(1,715) |
||||||||
| (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) |
Includes the operations of Regency Square and The Pier Shops. |
||||||||
| 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, 2012 and 2011 |
||||||||||||||
| (in thousands of dollars except as noted; may not add or recalculate due to rounding) |
||||||||||||||
| 2012 |
2011 |
|||||||||||||
| Shares |
Per Share |
Shares |
Per Share |
|||||||||||
| Dollars |
/Units |
/Unit |
Dollars |
/Units |
/Unit |
|||||||||
| Net income attributable to TCO common shareowners - Basic |
16,373 |
58,789,737 |
0.28 |
8,344 |
56,186,216 |
0.15 |
||||||||
| Add impact of share-based compensation |
134 |
1,411,648 |
86 |
1,583,249 |
||||||||||
| Net income attributable to TCO common shareowners - Diluted |
16,507 |
60,201,385 |
0.27 |
8,430 |
57,769,465 |
0.15 |
||||||||
| Add depreciation of TCO's additional basis |
1,721 |
0.03 |
1,720 |
0.03 |
||||||||||
| Net income attributable to TCO common shareowners, |
||||||||||||||
| excluding step-up depreciation |
18,228 |
60,201,385 |
0.30 |
10,150 |
57,769,465 |
0.18 |
||||||||
| Add: |
||||||||||||||
| Noncontrolling share of income of TRG - continuing operations |
8,138 |
26,439,387 |
6,538 |
25,158,886 |
||||||||||
| Noncontrolling share of loss of TRG - discontinued operations |
(2,032) |
|||||||||||||
| Distributions to participating securities |
403 |
871,262 |
381 |
871,262 |
||||||||||
| Net income attributable to partnership unitholders |
||||||||||||||
| and participating securities |
26,769 |
87,512,034 |
0.31 |
15,037 |
83,799,613 |
0.18 |
||||||||
| Add (less) depreciation and amortization: |
||||||||||||||
| Consolidated businesses at 100% - continuing operations |
36,235 |
0.41 |
34,424 |
0.41 |
||||||||||
| Consolidated businesses at 100% - discontinued operations |
1,905 |
0.02 |
||||||||||||
| Depreciation of TCO's additional basis |
(1,721) |
(0.02) |
(1,720) |
(0.02) |
||||||||||
| Noncontrolling partners in consolidated joint ventures |
(2,338) |
(0.03) |
(3,142) |
(0.04) |
||||||||||
| Share of Unconsolidated Joint Ventures |
5,364 |
0.06 |
5,378 |
0.06 |
||||||||||
| Non-real estate depreciation |
(655) |
(0.01) |
(570) |
(0.01) |
||||||||||
| Less impact of share-based compensation |
(134) |
(0.00) |
(86) |
(0.00) |
||||||||||
| Funds from Operations |
63,520 |
87,512,034 |
0.73 |
51,226 |
83,799,613 |
0.61 |
||||||||
| TCO's average ownership percentage of TRG |
69.0% |
69.1% |
||||||||||||
| Funds from Operations attributable to TCO |
43,815 |
0.73 |
35,383 |
0.61 |
||||||||||
| Funds from Operations |
51,226 |
83,799,613 |
0.61 |
|||||||||||
| The Pier Shops' and Regency Square's negative FFO |
4,664 |
0.06 |
||||||||||||
| Funds from Operations, |
||||||||||||||
| excluding The Pier Shops and Regency Square |
55,890 |
83,799,613 |
0.67 |
|||||||||||
| TCO's average ownership percentage of TRG |
69.1% |
|||||||||||||
| Funds from Operations attributable to TCO, |
||||||||||||||
| excluding The Pier Shops and Regency Square |
38,604 |
0.67 |
||||||||||||
| 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, 2012 and 2011 |
||||||||||||||
| (in thousands of dollars except as noted; may not add or recalculate due to rounding) |
||||||||||||||
| 2012 |
2011 |
|||||||||||||
| Shares |
Per Share |
Shares |
Per Share |
|||||||||||
| Dollars |
/Units |
/Unit |
Dollars |
/Units |
/Unit |
|||||||||
| Net income attributable to TCO common shareowners - Basic |
33,904 |
58,518,442 |
0.58 |
19,060 |
55,875,329 |
0.34 |
||||||||
| Add impact of share-based compensation |
302 |
1,536,180 |
184 |
1,501,547 |
||||||||||
| Net income attributable to TCO common shareowners - Diluted |
34,206 |
60,054,622 |
0.57 |
19,244 |
57,376,876 |
0.34 |
||||||||
| Add depreciation of TCO's additional basis |
3,440 |
0.06 |
3,440 |
0.06 |
||||||||||
| Net income attributable to TCO common shareowners, |
||||||||||||||
| excluding step-up depreciation |
37,646 |
60,054,622 |
0.63 |
22,684 |
57,376,876 |
0.40 |
||||||||
| Add: |
||||||||||||||
| Noncontrolling share of income of TRG - continuing operations |
16,889 |
26,459,564 |
14,149 |
25,286,721 |
||||||||||
| Noncontrolling share of income of TRG - discontinued operations |
(3,954) |
|||||||||||||
| Distributions to participating securities |
806 |
871,262 |
762 |
871,262 |
||||||||||
| Net income attributable to partnership unit holders |
||||||||||||||
| and participating securities |
55,341 |
87,385,448 |
0.63 |
33,641 |
83,534,859 |
0.40 |
||||||||
| Add (less) depreciation and amortization: |
||||||||||||||
| Consolidated businesses at 100% - continuing operations |
72,669 |
0.83 |
66,449 |
0.80 |
||||||||||
| Consolidated businesses at 100% - discontinued operations |
3,669 |
0.04 |
||||||||||||
| Depreciation of TCO's additional basis |
(3,440) |
(0.04) |
(3,440) |
(0.04) |
||||||||||
| Noncontrolling partners in consolidated joint ventures |
(4,762) |
(0.05) |
(5,707) |
(0.07) |
||||||||||
| Share of Unconsolidated Joint Ventures |
10,475 |
0.12 |
10,864 |
0.13 |
||||||||||
| Non-real estate depreciation |
(1,309) |
(0.01) |
(1,337) |
(0.02) |
||||||||||
| Less impact of share-based compensation |
(302) |
(0.00) |
(184) |
(0.00) |
||||||||||
| Funds from Operations |
128,672 |
87,385,448 |
1.47 |
103,955 |
83,534,859 |
1.24 |
||||||||
| TCO's average ownership percentage of TRG |
68.9% |
68.8% |
||||||||||||
| Funds from Operations attributable to TCO |
88,605 |
1.47 |
71,563 |
1.24 |
||||||||||
| Funds from Operations |
103,955 |
83,534,859 |
1.24 |
|||||||||||
| The Pier Shops' and Regency Square's negative FFO |
9,024 |
0.11 |
||||||||||||
| Funds from Operations, |
||||||||||||||
| excluding The Pier Shops and Regency Square |
112,979 |
83,534,859 |
1.35 |
|||||||||||
| TCO's average ownership percentage of TRG |
68.8% |
|||||||||||||
| Funds from Operations attributable to TCO, |
||||||||||||||
| excluding The Pier Shops and Regency Square |
77,779 |
1.35 |
||||||||||||
| TAUBMAN CENTERS, INC. |
|||||||||||
| Table 6 - Reconciliation of Net Income to Beneficial Interest in EBITDA |
|||||||||||
| For the Periods Ended June 30, 2012 and 2011 |
|||||||||||
| (in thousands of dollars; amounts attributable to TCO may not recalculate due to rounding) |
|||||||||||
| Three Months Ended |
Year to Date |
||||||||||
| 2012 |
2011 |
2012 |
2011 |
||||||||
| Net income |
31,448 |
20,290 |
63,625 |
44,734 |
|||||||
| Add (less) depreciation and amortization: |
|||||||||||
| Consolidated businesses at 100% - continuing operations |
36,235 |
34,424 |
72,669 |
66,449 |
|||||||
| Consolidated businesses at 100% - discontinued operations |
1,905 |
3,669 |
|||||||||
| Noncontrolling partners in consolidated joint ventures |
(2,338) |
(3,142) |
(4,762) |
(5,707) |
|||||||
| Share of Unconsolidated Joint Ventures |
5,364 |
5,378 |
10,475 |
10,864 |
|||||||
| Add (less) interest expense and income tax expense (benefit): |
|||||||||||
| Interest expense: |
|||||||||||
| Consolidated businesses at 100% - continuing operations |
36,676 |
29,691 |
74,203 |
59,465 |
|||||||
| Consolidated businesses at 100% - discontinued operations |
5,779 |
11,020 |
|||||||||
| Noncontrolling partners in consolidated joint ventures |
(4,203) |
(2,743) |
(8,409) |
(5,642) |
|||||||
| Share of Unconsolidated Joint Ventures |
8,225 |
7,247 |
16,319 |
15,324 |
|||||||
| Share of income tax expense (benefit) |
515 |
(5) |
726 |
205 |
|||||||
| Less noncontrolling share of income of consolidated joint ventures |
(2,875) |
(2,785) |
(4,709) |
(6,170) |
|||||||
| Beneficial Interest in EBITDA |
109,047 |
96,039 |
220,137 |
194,211 |
|||||||
| TCO's average ownership percentage of TRG |
69.0% |
69.1% |
68.9% |
68.8% |
|||||||
| Beneficial Interest in EBITDA attributable to TCO |
75,219 |
66,335 |
151,593 |
133,694 |
|||||||
| TAUBMAN CENTERS, INC. |
|||||||||||||||||||
| Table 7 - Reconciliation of Net Income to Net Operating Income (NOI) |
|||||||||||||||||||
| For the Periods Ended June 30, 2012 and 2011 |
|||||||||||||||||||
| (in thousands of dollars) |
|||||||||||||||||||
| Three Months Ended |
Three Months Ended |
Year to Date |
Year to Date |
||||||||||||||||
| 2012 |
2011 |
2011 |
2010 |
2012 |
2011 |
2011 |
2010 |
||||||||||||
| Net income |
31,448 |
20,290 |
20,290 |
18,484 |
63,625 |
44,734 |
44,734 |
35,297 |
|||||||||||
| Add (less) depreciation and amortization: |
|||||||||||||||||||
| Consolidated businesses at 100% - continuing operations |
36,235 |
34,424 |
34,424 |
33,976 |
72,669 |
66,449 |
66,449 |
69,044 |
|||||||||||
| Consolidated businesses at 100% - discontinued operations |
1,905 |
1,905 |
1,942 |
3,669 |
3,669 |
3,958 |
|||||||||||||
| Noncontrolling partners in consolidated joint ventures |
(2,338) |
(3,142) |
(3,142) |
(2,503) |
(4,762) |
(5,707) |
(5,707) |
(5,018) |
|||||||||||
| Share of Unconsolidated Joint Ventures |
5,364 |
5,378 |
5,378 |
5,323 |
10,475 |
10,864 |
10,864 |
10,801 |
|||||||||||
| Add (less) interest expense and income tax expense: |
|||||||||||||||||||
| Interest expense: |
|||||||||||||||||||
| Consolidated businesses at 100% - continuing operations |
36,676 |
29,691 |
29,691 |
32,904 |
74,203 |
59,465 |
59,465 |
65,414 |
|||||||||||
| Consolidated businesses at 100% - discontinued operations |
5,779 |
5,779 |
5,019 |
11,020 |
11,020 |
9,926 |
|||||||||||||
| Noncontrolling partners in consolidated joint ventures |
(4,203) |
(2,743) |
(2,743) |
(5,293) |
(8,409) |
(5,642) |
(5,642) |
(10,513) |
|||||||||||
| Share of Unconsolidated Joint Ventures |
8,225 |
7,247 |
7,247 |
8,248 |
16,319 |
15,324 |
15,324 |
16,450 |
|||||||||||
| Share of income tax expense (benefit) |
515 |
(5) |
(5) |
114 |
726 |
205 |
205 |
310 |
|||||||||||
| Less noncontrolling share of income of consolidated joint ventures |
(2,875) |
(2,785) |
(2,785) |
(1,968) |
(4,709) |
(6,170) |
(6,170) |
(3,981) |
|||||||||||
| Add EBITDA attributable to outside partners: |
|||||||||||||||||||
| EBITDA attributable to noncontrolling partners in consolidated joint ventures |
9,393 |
8,670 |
8,670 |
9,764 |
17,860 |
17,519 |
17,519 |
19,512 |
|||||||||||
| EBITDA attributable to outside partners in Unconsolidated Joint Ventures |
20,242 |
19,487 |
19,487 |
18,656 |
40,723 |
39,198 |
39,198 |
38,138 |
|||||||||||
| EBITDA at 100% |
138,682 |
124,196 |
124,196 |
124,666 |
278,720 |
250,928 |
250,928 |
249,338 |
|||||||||||
| Add (less) items excluded from shopping center NOI: |
|||||||||||||||||||
| General and administrative expenses |
10,043 |
8,005 |
8,005 |
7,036 |
18,450 |
15,289 |
15,289 |
14,425 |
|||||||||||
| Management, leasing, and development services, net |
(1,572) |
(2,157) |
(2,157) |
(1,822) |
(1,698) |
(5,737) |
(5,737) |
(3,285) |
|||||||||||
| Gains on sales of peripheral land |
(519) |
(519) |
(1,040) |
(519) |
(519) |
(1,040) |
|||||||||||||
| Interest income |
(64) |
(170) |
(170) |
(99) |
(196) |
(303) |
(303) |
(260) |
|||||||||||
| Straight-line of rents |
(1,831) |
(334) |
(334) |
(552) |
(2,480) |
(543) |
(543) |
(524) |
|||||||||||
| Non-center specific operating expenses and other |
8,520 |
7,547 |
7,547 |
5,633 |
15,416 |
14,812 |
14,812 |
11,815 |
|||||||||||
| NOI - all centers at 100% |
153,778 |
136,568 |
136,568 |
133,822 |
308,212 |
273,927 |
273,927 |
270,469 |
|||||||||||
| Less - NOI of non-comparable centers |
(7,032) |
(1) |
(1,057) |
(2) |
(1,057) |
(2) |
(2,093) |
(2) |
(12,771) |
(1) |
(1,876) |
(2) |
(1,876) |
(2) |
(4,137) |
(2) |
|||
| NOI at 100% - comparable centers |
146,746 |
135,511 |
135,511 |
131,729 |
295,441 |
272,051 |
272,051 |
266,332 |
|||||||||||
| NOI - growth % |
8.3% |
2.9% |
8.6% |
2.1% |
|||||||||||||||
| NOI at 100% - comparable centers |
146,746 |
135,511 |
135,511 |
131,729 |
295,441 |
272,051 |
272,051 |
266,332 |
|||||||||||
| Lease cancellation income |
(950) |
(816) |
(816) |
(3,235) |
(1,939) |
(2,199) |
(2,199) |
(9,182) |
|||||||||||
| NOI at 100% - comparable centers excluding lease cancellation income |
145,796 |
134,695 |
134,695 |
128,494 |
293,502 |
269,852 |
269,852 |
257,150 |
|||||||||||
| NOI excluding lease cancellation income - growth % |
8.2% |
4.8% |
8.8% |
4.9% |
|||||||||||||||
| (1) |
Includes City Creek Center, The Mall at Green Hills, The Gardens on El Paseo and El Paseo Village. |
||||||||||||||||||
| (2) |
Includes The Pier Shops and Regency Square. |
||||||||||||||||||
| TAUBMAN CENTERS, INC. |
||||||||
| Table 8 - Balance Sheets |
||||||||
| As of June 30, 2012 and December 31, 2011 |
||||||||
| (in thousands of dollars) |
||||||||
| As of |
||||||||
| June 30, 2012 |
December 31, 2011 |
|||||||
| Consolidated Balance Sheet of Taubman Centers, Inc. : |
||||||||
| Assets: |
||||||||
| Properties |
4,125,093 |
4,020,954 |
||||||
| Accumulated depreciation and amortization |
(1,330,341) |
(1,271,943) |
||||||
| 2,794,752 |
2,749,011 |
|||||||
| Investment in Unconsolidated Joint Ventures |
76,303 |
75,582 |
||||||
| Cash and cash equivalents |
45,227 |
24,033 |
||||||
| Restricted cash (1) |
4,485 |
295,318 |
||||||
| Accounts and notes receivable, net |
39,964 |
59,990 |
||||||
| Accounts receivable from related parties |
2,282 |
1,418 |
||||||
| Deferred charges and other assets |
133,059 |
131,440 |
||||||
| 3,096,072 |
3,336,792 |
|||||||
| Liabilities: |
||||||||
| Mortgage notes payable |
2,836,148 |
2,864,135 |
||||||
| Installment notes (1) |
281,467 |
|||||||
| Accounts payable and accrued liabilities |
248,642 |
255,146 |
||||||
| Distributions in excess of investments in and net income of |
||||||||
| Unconsolidated Joint Ventures |
306,599 |
192,257 |
||||||
| 3,391,389 |
3,593,005 |
|||||||
| Redeemable noncontrolling interests |
82,337 |
84,235 |
||||||
| 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 |
588 |
580 |
||||||
| Additional paid-in capital |
670,662 |
673,923 |
||||||
| Accumulated other comprehensive loss |
(30,231) |
(27,613) |
||||||
| Dividends in excess of net income |
(883,591) |
(863,040) |
||||||
| (242,546) |
(216,124) |
|||||||
| Noncontrolling interests: |
||||||||
| Noncontrolling interests in consolidated joint ventures |
(104,374) |
(101,872) |
||||||
| Noncontrolling interests in partnership equity of TRG |
(30,734) |
(22,452) |
||||||
| (135,108) |
(124,324) |
|||||||
| (377,654) |
(340,448) |
|||||||
| 3,096,072 |
3,336,792 |
|||||||
| Combined Balance Sheet of Unconsolidated Joint Ventures : |
||||||||
| Assets: |
||||||||
| Properties |
1,109,732 |
1,107,314 |
||||||
| Accumulated depreciation and amortization |
(459,040) |
(446,059) |
||||||
| 650,692 |
661,255 |
|||||||
| Cash and cash equivalents |
27,022 |
22,042 |
||||||
| Accounts and notes receivable, net |
15,914 |
24,628 |
||||||
| Deferred charges and other assets |
26,144 |
21,289 |
||||||
| 719,772 |
729,214 |
|||||||
| Liabilities: |
||||||||
| Mortgage notes payable |
1,273,666 |
1,138,808 |
||||||
| Accounts payable and other liabilities, net |
55,639 |
55,737 |
||||||
| 1,329,305 |
1,194,545 |
|||||||
| Accumulated Deficiency in Assets: |
||||||||
| Accumulated deficiency in assets - TRG |
(345,311) |
(235,525) |
||||||
| Accumulated deficiency in assets - Joint Venture Partners |
(242,314) |
(211,478) |
||||||
| Accumulated other comprehensive income (loss) - TRG |
(10,954) |
(9,233) |
||||||
| Accumulated other comprehensive income (loss) - Joint Venture Partners |
(10,954) |
(9,095) |
||||||
| (609,533) |
(465,331) |
|||||||
| 719,772 |
729,214 |
|||||||
| (1) |
Installment notes were paid in full in February 2012 with restricted cash drawn on the Company's line of credit as of December 31, 2011. |
|||||||
| 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, 2012 |
||||||||
| Adjusted Funds from Operations per common share |
3.24 |
3.29 |
||||||
| Early extinguishment of debt charge (1) |
(0.02) |
(0.02) |
||||||
| Funds from Operations per common share |
3.22 |
3.27 |
||||||
| Real estate depreciation - TRG |
(1.82) |
(1.78) |
||||||
| 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) |
1.27 |
1.37 |
||||||
| (1) |
In October 2012, we expect to refinance the existing $197.8 million, 5.46% loan on The Mall at Millenia, a 50 percent owned joint venture. Since this is earlier than allowed under the current loan, the partnership is expected to incur approximately $3.2 million in defeasance charges, of which $1.6 million is our share. The new 12 year, non-recourse $350 million loan will bear interest at a fixed rate of 4%. |
||||
SOURCE Taubman Centers, Inc.
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