EX-99 2 ex99.htm EX-99 ex99.htm
T 248.258.6800
200 East Long Lake Road
www.taubman.com
Suite 300
  
Bloomfield Hills, Michigan
  
48304-2324
  
 

CONTACT:
Barbara Baker
Taubman, Vice President, Investor Relations
248-258-7367
bbaker@taubman.com


FOR IMMEDIATE RELEASE

TAUBMAN CENTERS ISSUES THIRD QUARTER RESULTS
·  
FFO per Share Up 8.8%
·  
Comparable Center Occupancy Up 0.4%
·  
Strong Balance Sheet

BLOOMFIELD HILLS, Mich. Oct. 21, 2008 - - Taubman Centers, Inc. (NYSE:  TCO) today reported financial results for the quarter and year-to-date periods ended September 30, 2008.

Net income allocable to common shareholders per diluted common share (EPS) for the quarter ended September 30, 2008 was $0.17, up from $0.15 during the third quarter of 2007.  EPS for the nine month period ended September 30, 2008 was $0.26 versus $0.50 for the nine month period ended September 30, 2007.

For the quarter ended September 30, 2008, Funds from Operations (FFO) per diluted share was $0.74, up 8.8 percent from $0.68 per share for the quarter ended September 30, 2007.  For the nine months ended September 30, 2008, FFO per diluted share was $2.08, up 3.5 percent from $2.01 per share for the nine months ended September 30, 2007.

“Given the current environment, we’re very pleased that our business continues to generate solid results,” said Robert S. Taubman, chairman, president and chief executive officer of Taubman Centers.   “Our performance was driven by increases in rents from our existing portfolio and the contribution from The Mall at Partridge Creek (Clinton Township, Mich.), which opened in October 2007."

Increases in Occupancy, Sales and Rents
Comparable center occupancy for the portfolio was 90.6 percent at September 30, 2008, up 0.4 percent from 90.2 percent on September 30, 2007.  Comparable center leased space at September 30, 2008 was 92.5 percent versus 93.4 percent on September 30, 2007.

Rents in Taubman’s consolidated portfolio averaged $44.20 for the quarter, an increase of 3.2 percent from the third quarter of 2007.  Rents in Taubman’s consolidated portfolio averaged $44.40 for the year-to-date period, an increase of 2.8 percent from the first nine months of 2007.  In the Unconsolidated Joint Ventures, rents averaged $44.48 for the quarter, an increase of 2.7 percent from the third quarter of 2007.  Rents in the Unconsolidated Joint Ventures averaged $44.71 for the year-to-date period, an increase of 5.6 percent from the first nine months of 2007.

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Taubman Centers/2

Mall tenant sales per square foot increased 0.5 percent for the quarter and 2.3 percent for the nine months ended September 30.  “We’re pleased to continue to report tenant sales per square foot growth during a time of such economic uncertainty,” said Mr. Taubman.   “The consumer clearly moderated spending as the quarter progressed.  Nonetheless, shoppers continue to make our well-leased centers preferred destinations.”

Strong Balance Sheet
Taubman is financed with property-specific secured debt and has no maturities until fall 2010, when its share of three loans totaling $264 million mature.  The company’s secured credit lines total $590 million and mature in 2011 with a one year extension option to 2012 on $550 million of the lines.   As of September 30, $225 million is utilized.

“In these challenging capital markets, we are pleased that our conservative financial approach is allowing us to continue to pursue our growth strategies,” said Lisa A. Payne, Taubman Centers vice chairman and chief financial officer.

Guidance
For the full year 2008, the company expects to be at the lower end of its previously announced FFO per share range of $3.01 to $3.07.  Net income allocable to common shareholders for the year is expected to be in the range of $0.64 to $0.84 per share.

Supplemental Investor Information Available
The company provides supplemental investor information along with its earnings announcements.  It is available online at www.taubman.com under “Investor Relations.”  This packet includes the following information:
·  
Income Statements
·  
Earnings Reconciliations
·  
Changes in Funds from Operations and Earnings Per Share
·  
Components of Other Operating Income, Other Operating Expense and Gains on Land Sales, Interest Income and Other Non-operating 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



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Taubman Centers/3
 
Investor Conference Call
The company will provide an online Web simulcast and rebroadcast of its 2008 third quarter earnings release conference call in which the company will review the results for the quarter, progress on its developments, its financing plans and update its guidance.  The live broadcast of the conference call will be available online at www.taubman.com under "Investor Relations," www.earnings.com , www.streetevents.com and www.investorcalendar.com on October 22 beginning at 10:00 a.m. Eastern Time.  The online replay will follow shortly after the call and continue for approximately 90 days.  In addition, the conference call will be available as a podcast at www.reitcafe.com.

Taubman Centers is a real estate investment trust engaged in the development and management of regional and super regional shopping centers.  Taubman’s 24 U.S. owned and/or managed properties, the most productive in the industry, serve major markets from coast to coast.  The company’s Taubman Asia subsidiary is developing retail projects in Macao, China and Incheon, South Korea.  Taubman Centers is headquartered in Bloomfield Hills, Michigan. For more information about Taubman, visit www.taubman.com.

For ease of use, references in this press release to “Taubman Centers” 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 changes in general economic and real estate conditions, changes in the interest rate environment and the availability of financing, and adverse changes in the retail industry. Other risks and uncertainties are discussed in the company's filings with the Securities and Exchange Commission including its most recent Annual Report on Form 10-K.
 
 
 
 
Taubman Centers/4
 
TAUBMAN CENTERS, INC.
              
Table 1 - Summary of Results
              
For the Three and Nine Months Ended September 30, 2008 and 2007
              
(in thousands of dollars, except as indicated)
              
               
 
Three Months Ended
  
Nine Months Ended
 
2008
  
2007
  
2008
  
2007
               
Income before minority and preferred interests
27,836
  
25,461
  
72,766
  
78,013
Minority share of consolidated joint ventures (1)
(1,416)
  
(1,044)
  
(3,722)
  
(3,578)
Distributions in excess of minority share of income of consolidated joint ventures (1)
(1,578)
  
(1,806)
  
(7,973)
  
(2,847)
Minority share of income of TRG (1)
(7,445)
  
(6,849)
  
(17,866)
  
(21,777)
Distributions in excess of minority share of income of TRG (1)
(3,927)
  
(3,640)
  
(16,268)
  
(9,910)
TRG preferred distributions
(615)
  
(615)
  
(1,845)
  
(1,845)
Net income
12,855
  
11,507
  
25,092
  
38,056
Preferred dividends
(3,658)
  
(3,658)
  
(10,975)
  
(10,975)
Net income allocable to common shareowners
9,197
  
7,849
  
14,117
  
27,081
Net income per common share - basic
0.17
  
0.15
  
0.27
  
0.51
Net income per common share - diluted
0.17
  
0.15
  
0.26
  
0.50
Beneficial interest in EBITDA - Consolidated Businesses (2)
78,973
  
72,640
  
231,550
  
218,650
Beneficial interest in EBITDA - Unconsolidated Joint Ventures (2)
25,636
  
25,543
  
71,394
  
70,963
Funds from Operations (2)
          59,712
  
          54,973
  
        167,681
  
        164,846
Funds from Operations allocable to TCO (2)
          39,764
  
          36,205
  
        111,588
  
        108,700
Funds from Operations per common share - basic (2)
               0.75
  
               0.69
  
               2.11
  
               2.05
Funds from Operations per common share - diluted (2)
               0.74
  
               0.68
  
               2.08
  
               2.01
Weighted average number of common shares outstanding - basic
  52,908,924
  
  52,456,144
  
  52,815,246
  
  53,093,894
Weighted average number of common shares outstanding - diluted
  53,412,236
  
  53,073,989
  
  53,370,218
  
  53,731,959
Common shares outstanding at end of period
  52,948,733
  
  52,308,307
        
Weighted average units - Operating Partnership - basic
  79,450,825
  
  79,648,017
  
  79,365,719
  
  80,518,440
Weighted average units - Operating Partnership - diluted
  80,825,398
  
  81,137,124
  
  80,791,952
  
  82,027,766
Units outstanding at end of period - Operating Partnership
  79,481,177
  
  79,169,604
        
Ownership percentage of the Operating Partnership at end of period
66.6%
  
66.1%
        
Number of owned shopping centers at end of period
                  23
  
                  22
  
                  23
  
                  22
               
Operating Statistics:
              
Mall tenant sales (3)
    1,112,502
  
    1,075,465
  
    3,312,137
  
    3,179,929
Ending occupancy
90.5%
  
90.0%
  
90.5%
  
90.0%
Ending occupancy - comparable (4)
90.6%
  
90.2%
  
90.6%
  
90.2%
Average occupancy
90.4%
  
89.8%
  
90.1%
  
89.8%
Average occupancy - comparable (4)
90.5%
  
90.0%
  
90.3%
  
90.0%
Leased space at end of period
92.4%
  
93.3%
  
92.4%
  
93.3%
Leased space at end of period - comparable (4)
92.5%
  
93.4%
  
92.5%
  
93.4%
Mall tenant occupancy costs as a percentage of tenant sales - Consolidated Businesses (3)
15.6%
  
14.8%
  
15.6%
  
15.2%
Mall tenant occupancy costs as a percentage of tenant sales - Unconsolidated Joint Ventures (3)
14.7%
  
14.1%
  
14.1%
  
13.6%
Rent per square foot - Consolidated Businesses (4)
44.20
  
42.84
  
44.40
  
43.21
Rent per square foot - Unconsolidated Joint Ventures (4)
44.48
  
43.32
  
44.71
  
42.35

 
 
 
Taubman Centers/5
   
   
(1)
Because the net equity balances of the Operating Partnership and the outside partners in certain consolidated joint ventures are less than zero, the income allocated to the minority and outside partners during the three and nine months ended September 30, 2008 and 2007 is equal to their share of distributions. The net equity of these minority partners is less than zero due to accumulated distributions in excess of net income and not as a result of operating losses.
   
(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 National Association of Real Estate Investment Trusts (NAREIT) defines Funds from Operations (FFO) as net income (loss) (computed in accordance with Generally Accepted Accounting Principles (GAAP)), excluding gains (or losses) from extraordinary items and sales of properties, plus real estate related depreciation and after adjustments for unconsolidated partnerships and joint ventures. The Company believes that FFO is a useful supplemental measure of operating performance for REITs. Historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Since real estate values instead have historically risen or fallen with market conditions, the Company and most industry investors and analysts have considered presentations of operating results that exclude historical cost depreciation to be useful in evaluating the operating performance of REITs. FFO is primarily used by the Company in measuring performance and in formulating corporate goals and compensation.
   
 
These non-GAAP measures as presented by the Company are not necessarily comparable to similarly titled measures used by other REITs due to the fact that not all REITs use common definitions. None of these non-GAAP measures should be considered alternatives to net income as an indicator of the Company's operating performance, and they do not represent cash flows from operating, investing, or financing activities as defined by GAAP.
   
(3)
Based on reports of sales furnished by mall tenants.
   
(4)
Statistics exclude The Mall at Partridge Creek and The Pier Shops at Caesars. The 2007 statistics have been restated to include comparable centers to 2008.


 
 
 
Taubman Centers/6

 TAUBMAN CENTERS, INC.
              
 Table 2 - Income Statement
              
 For the Three Months Ended September 30, 2008 and 2007
            
 (in thousands of dollars)
              
                   
     
2008
  
2007
         UNCONSOLIDATED
                                                   UNCONSOLIDATED
     
 CONSOLIDATED
 JOINT
  
 CONSOLIDATED
 JOINT
     
 BUSINESSES
 VENTURES (1)
  
 BUSINESSES
 VENTURES (1)
                   
REVENUES:
              
 
Minimum rents
     87,401
  
          39,187
  
     81,273
  
          37,480
 
Percentage rents
       3,262
  
            1,681
  
       3,208
  
            1,299
 
Expense recoveries
     60,838
  
          25,011
  
     53,624
  
          23,911
 
Management, leasing, and development services
       3,316
      
       3,881
    
 
Other
       8,896
  
            1,175
  
       8,667
  
            1,675
   
Total revenues
    163,713
  
          67,054
  
    150,653
  
          64,365
                   
EXPENSES:
              
 
Maintenance, taxes, and utilities
     48,741
  
          17,201
  
     44,158
  
          15,580
 
Other operating
     18,482
  
            3,892
  
     16,574
  
            3,048
 
Management, leasing, and development services
       1,843
      
       2,074
    
 
General and administrative
       6,790
      
       7,414
    
 
Interest expense
     36,039
  
          16,471
  
     33,628
  
          15,980
 
Depreciation and amortization
     35,464
  
            9,923
  
     33,757
  
            9,518
   
Total expenses
    147,359
  
          47,487
  
    137,605
  
          44,126
                   
Gains on land sales and other nonoperating income
          411
  
              115
  
       1,138
  
              375
     
     16,765
  
          19,682
  
     14,186
  
          20,614
Income tax expense
         (218)
            
Equity in income of Unconsolidated Joint Ventures
     11,289
      
     11,275
    
                   
Income before minority and preferred interests
     27,836
      
     25,461
    
Minority and preferred interests:
              
 
TRG preferred distributions
         (615)
      
         (615)
    
 
Minority share of consolidated joint ventures
      (1,416)
      
      (1,044)
    
 
Distributions in excess of minority share of income of
 consolidated joint ventures
    
  (1,578)
      
     
 (1,806)
    
 
Minority share of income of TRG
      (7,445)
      
      (6,849)
    
 
Distributions in excess of minority share of income of TRG
      (3,927)
      
      (3,640)
    
Net income
     12,855
      
     11,507
    
Preferred dividends
      (3,658)
      
      (3,658)
    
Net income allocable to common shareowners
       9,197
      
       7,849
    
                   
                   
SUPPLEMENTAL INFORMATION:
              
 
EBITDA - 100%
     88,268
  
          46,076
  
     81,571
  
          46,112
 
EBITDA - outside partners' share
      (9,295)
  
         (20,440)
  
      (8,931)
  
         (20,569)
 
Beneficial interest in EBITDA
     78,973
  
          25,636
  
     72,640
  
          25,543
 
Beneficial interest expense
    (31,088)
  
           (8,570)
  
    (29,892)
  
           (8,369)
 
Beneficial income tax expense
         (218)
            
 
Non-real estate depreciation
         (748)
      
         (676)
    
 
Preferred dividends and distributions
      (4,273)
      
      (4,273)
    
 
Funds from Operations contribution
     42,646
  
          17,066
  
     37,799
  
          17,174
                   
 
Net straightline adjustments to rental revenue, recoveries,
            
 
  and ground rent expense at TRG %
          251
  
              162
  
          432
  
              260
                   
 (1)
With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company's ownership interest. The Company accounts for its investments in the Unconsolidated Joint Ventures under the equity method.

 
 
 
Taubman Centers/7

 TAUBMAN CENTERS, INC.
              
 Table 3- Income Statement
              
 For the Year to Date Periods Ended September 30, 2008 and 2007
          
 (in thousands of dollars)
              
                   
     
2008
  
2007
         
 UNCONSOLIDATED
 UNCONSOLIDATED
     
 CONSOLIDATED
 JOINT
  
 CONSOLIDATED
 JOINT
     
 BUSINESSES
 VENTURES (1)
  
 BUSINESSES
 VENTURES (1)
                   
REVENUES:
              
 
Minimum rents
    261,554
  
        116,395
  
    239,435
  
        113,051
 
Percentage rents
       7,162
  
            3,600
  
       6,513
  
            3,930
 
Expense recoveries
    178,686
  
          69,089
  
    162,170
  
          69,320
 
Management, leasing, and development services
     10,901
      
     12,403
    
 
Other
     23,239
  
            5,541
  
     27,432
  
            5,758
   
Total revenues
    481,542
  
        194,625
  
    447,953
  
        192,059
                   
EXPENSES:
              
 
Maintenance, taxes, and utilities
    138,766
  
          48,629
  
    127,664
  
          49,278
 
Other operating
     56,478
  
          16,026
  
     49,448
  
          14,227
 
Management, leasing, and development services
       6,521
      
       6,660
    
 
General and administrative
     23,066
      
     21,750
    
 
Interest expense
    108,993
  
          48,624
  
     95,512
  
          50,401
 
Depreciation and amortization
    106,978
  
          29,385
  
     99,858
  
          29,473
   
Total expenses
    440,802
  
        142,664
  
    400,892
  
        143,379
                   
Gains on land sales and other nonoperating income
       3,670
  
              594
  
       2,252
  
            1,189
     
     44,410
  
          52,555
  
     49,313
  
          49,869
Income tax expense
         (658)
            
Equity in income of Unconsolidated Joint Ventures
     29,014
      
     28,700
    
                   
Income before minority and preferred interests
     72,766
      
     78,013
    
Minority and preferred interests:
              
 
TRG preferred distributions
      (1,845)
      
      (1,845)
    
 
Minority share of consolidated joint ventures
      (3,722)
      
      (3,578)
    
 
Distributions in excess of minority share of income of
   consolidated joint ventures
      
(7,973)
      
     
 (2,847)
    
 
Minority share of income of TRG
    (17,866)
      
    (21,777)
    
 
Distributions in excess of minority share of income of TRG
    (16,268)
      
      (9,910)
    
Net income
     25,092
      
     38,056
    
Preferred dividends
    (10,975)
      
    (10,975)
    
Net income allocable to common shareowners
     14,117
      
     27,081
    
                   
                   
SUPPLEMENTAL INFORMATION:
              
 
EBITDA - 100%
    260,381
  
        130,564
  
    244,683
  
        129,743
 
EBITDA - outside partners' share
    (28,831)
  
         (59,170)
  
    (26,033)
  
         (58,780)
 
Beneficial interest in EBITDA
    231,550
  
          71,394
  
    218,650
  
          70,963
 
Beneficial interest expense
    (94,307)
  
         (25,289)
  
    (84,938)
  
         (24,996)
 
Beneficial income tax expense
         (658)
            
 
Non-real estate depreciation
      (2,189)
      
      (2,013)
    
 
Preferred dividends and distributions
    (12,820)
      
    (12,820)
    
 
Funds from Operations contribution
    121,576
  
          46,105
  
    118,879
  
          45,967
                   
 
Net straightline adjustments to rental revenue, recoveries,
            
 
  and ground rent expense at TRG %
       1,319
  
              275
  
       1,147
  
              499
                   
                   
 (1)
With the exception of the Supplemental Information, amounts include 100% of the Unconsolidated Joint Ventures. Amounts are net of intercompany transactions. The Unconsolidated Joint Ventures are presented at 100% in order to allow for measurement of their performance as a whole, without regard to the Company's ownership interest. In its consolidated financial statements, the Company accounts for its investments in the Unconsolidated Joint Ventures under the equity method.

 
 
 
Taubman Centers/8
TAUBMAN CENTERS, INC.
                      
Table 4- Reconciliation of Net Income Allocable to Common Shareowners to Funds from Operations
  
For the Periods Ended September 30, 2008 and 2007
                  
(in thousands of dollars; amounts allocable to TCO may not recalculate due to rounding)
      
                             
               
Three Months Ended
  
Year To Date
               
2008
  
2007
  
2008
  
2007
                             
Net income allocable to common shareowners
    
9,197
  
7,849
  
14,117
  
27,081
                             
Add (less) depreciation and amortization:
                  
 
Consolidated businesses at 100%
      
35,464
  
33,757
  
106,978
  
99,858
 
Minority partners in consolidated joint ventures
    
(2,928)
  
(4,151)
  
(10,423)
  
(11,881)
 
Share of unconsolidated joint ventures
      
5,777
  
5,899
  
17,091
  
17,267
 
Non-real estate depreciation
        
(748)
  
(676)
  
(2,189)
  
(2,013)
                             
Add minority interests:
                      
 
Minority share of income of TRG
      
7,445
  
6,849
  
17,866
  
21,777
 
Distributions in excess of minority share of income of TRG
3,927
  
3,640
  
16,268
  
9,910
 
Distributions in excess of minority share of income of
                  
 
  consolidated joint ventures
        
1,578
  
1,806
  
7,973
  
2,847
                             
Funds from Operations
        
59,712
  
54,973
  
167,681
  
164,846
                             
TCO's average ownership percentage of TRG
    
66.6%
  
65.9%
  
66.5%
  
65.9%
                             
Funds from Operations allocable to TCO
    
39,764
  
36,205
  
111,588
  
108,700


 
 
 
Taubman Centers/9

TAUBMAN CENTERS, INC.
                        
Table 5- Reconciliation of Net Income to Beneficial Interest in EBITDA
            
For the Periods Ended September 30, 2008 and 2007
                  
(in thousands of dollars; amounts allocable to TCO may not recalculate due to rounding)
      
                               
                 
Three Months Ended
  
Year To Date
                 
2008
  
2007
  
2008
  
2007
                               
Net income
            
12,855
  
11,507
  
25,092
  
38,056
                               
Add (less) depreciation and amortization:
                    
 
Consolidated businesses at 100%
        
35,464
  
33,757
  
106,978
  
99,858
 
Minority partners in consolidated joint ventures
    
(2,928)
  
(4,151)
  
(10,423)
  
(11,881)
 
Share of unconsolidated joint ventures
      
5,777
  
5,899
  
17,091
  
17,267
                               
Add (less) preferred interests, interest expense, and income tax expense:
            
 
Preferred distributions
          
615
  
615
  
1,845
  
1,845
 
Interest expense:
                          
   
Consolidated businesses at 100%
        
36,039
  
33,628
  
108,993
  
95,512
   
Minority partners in consolidated joint ventures
    
(4,951)
  
(3,736)
  
(14,686)
  
(10,574)
   
Share of unconsolidated joint ventures
      
8,570
  
8,369
  
25,289
  
24,996
 
Income tax expense
          
218
      
658
    
                               
Add minority interests:
                        
 
Minority share of income of TRG
        
7,445
  
6,849
  
17,866
  
21,777
 
Distributions in excess of minority share of income of TRG
3,927
  
3,640
  
16,268
  
9,910
 
Distributions in excess of minority share of income of
                
 
  consolidated joint ventures
        
1,578
  
1,806
  
7,973
  
2,847
                               
Beneficial Interest in EBITDA
          
104,609
  
98,183
  
302,944
  
289,613
                               
TCO's average ownership percentage of TRG
      
66.6%
  
65.9%
  
66.5%
  
65.9%
                               
Beneficial Interest in EBITDA allocable to TCO
    
69,670
  
64,663
  
201,607
  
190,971

 
 
 
Taubman Centers/10

TAUBMAN CENTERS, INC.
          
Table 6- Balance Sheets
          
As of September 30, 2008 and December 31, 2007
      
 (in thousands of dollars)
          
                 
           
 As of
           
 September 30, 2008
 December 31, 2007
Consolidated Balance Sheet of Taubman Centers, Inc.:
      
                 
Assets:
              
  Properties
        
            3,806,039
  
           3,781,136
  Accumulated depreciation and amortization
           (1,017,609)
  
            (933,275)
           
            2,788,430
  
           2,847,861
  Investment in Unconsolidated Joint Ventures
                93,419
  
               92,117
  Cash and cash equivalents
    
                36,698
  
               47,166
  Accounts and notes receivable, net
  
                40,947
  
               52,161
  Accounts and notes receivable from related parties
                  2,226
  
                 2,283
  Deferred charges and other assets
  
               220,143
  
             109,719
           
            3,181,863
  
           3,151,307
                 
Liabilities:
              
  Notes payable
      
            2,784,189
  
           2,700,980
  Accounts payable and accrued liabilities
               243,829
  
             296,385
  Dividends and distributions payable
  
                21,973
  
               21,839
  Distributions in excess of investments in and net income of
      
     Unconsolidated Joint Ventures
  
               152,248
  
             100,234
           
            3,202,239
  
           3,119,438
                 
Preferred Equity of TRG
    
                29,217
  
               29,217
                 
Minority interests in TRG and consolidated joint ventures
                  7,327
  
               18,494
                 
Shareowners' Equity:
            
  Series B Non-Participating Convertible Preferred Stock
                       27
  
                     27
  Series G Cumulative Redeemable Preferred Stock
      
  Series H Cumulative Redeemable Preferred Stock
      
  Common Stock
      
                     529
  
                    526
  Additional paid-in capital
    
               554,140
  
             543,333
  Accumulated other comprehensive income (loss)
                 (8,422)
  
                (8,639)
  Dividends in excess of net income
  
              (603,194)
  
            (551,089)
           
               (56,920)
  
              (15,842)
           
            3,181,863
  
           3,151,307
                 
Combined Balance Sheet of Unconsolidated Joint Ventures (1):
      
                 
Assets:
              
  Properties
        
            1,078,007
  
           1,056,380
  Accumulated depreciation and amortization
              (358,771)
  
            (347,459)
           
               719,236
  
             708,921
  Cash and cash equivalents
    
                22,779
  
               40,097
  Accounts and notes receivable
  
                19,677
  
               26,271
  Deferred charges and other assets
  
                23,578
  
               18,229
           
               785,270
  
             793,518
                 
Liabilities:
              
  Notes payable
      
            1,108,605
  
           1,003,463
  Accounts payable and other liabilities
  
                44,794
  
               55,242
           
            1,153,399
  
           1,058,705
                 
Accumulated Deficiency in Assets:
        
  Accumulated deficiency in assets - TRG
              (202,458)
  
            (149,009)
  Accumulated deficiency in assets - Joint Venture Partners
              (166,129)
  
            (112,709)
  Accumulated other comprehensive income (loss) - TRG
                    (287)
  
                (2,354)
  Accumulated other comprehensive income (loss) - Joint Venture Partners
                     745
  
                (1,115)
           
              (368,129)
  
            (265,187)
           
               785,270
  
             793,518
(1)
Amounts exclude University Town Center.
      


 
 
 
Taubman Centers/11

TAUBMAN CENTERS, INC.
                
Table 7 - 2008 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, 2008
                     
Funds from Operations per common share
        
3.01
  
3.07
                     
Real estate depreciation - TRG
          
(1.94)
  
(1.87)
                     
Depreciation of TCO's additional basis in TRG
        
(0.13)
  
(0.13)
                     
Distributions in excess of earnings allocable to minority interest
    
(0.30)
  
(0.23)
                     
Net income allocable to common shareowners, per common share
    
0.64
  
0.84